Chapter 173 Targeting Tariffs Directly
A person who could afford to eat five or six silver coins in one meal must be wealthy. Even the profligate noble wouldn't eat like this, unless they were from those grand noble families, marquises, or dukes.
Those who dare to eat like this must have a vast wealth, which left Soro and the other merchants looking at Henry with uncertainty.
Brandon was momentarily stunned, then he swept over the dishes on the table with a complex expression. He knew that the dishes in the Lord's Manor were even more delicious. Perhaps what Lord Henry said was still quite modest.
The merchants understood what Henry meant. Compared to commoners, they were indeed wealthy. But for the nobles, the merchants were considered poor.
They wouldn't be able to afford to eat such a feast for every meal, every day.
The merchants present were all contemplating Henry's intentions. Why did he talk about the wealth and poverty suddenly? Could it be that he was trying to show off his wealth?
No, Soro was the first to dismiss this idea. In his opinion, Henry was not that shallow.
"Henry, why do you want to restrict our purchase of goods in the grand market?" a merchant tried to change the subject and raised today's main question.
"I'll ask you a question, who is the biggest beneficiary of the transactions in the grand market?" Henry's mouth curled up.
"This..." The merchants looked at each other, thinking: 'it's definitely you, Henry.'
But then they saw Soro remain silent, instantly making the merchants feel uneasy. Everyone in the room knew the answer to this question.
"The trading in the grand market was originally a benefit I provided to the commoners, which is why the prices are so low." Henry leaned forward slightly and said, "But now, it seems like you are taking advantage of me, doesn't it?"
The merchants all lowered their heads. This was a fact. They were indeed taking advantage of this, that's why they were frantically stocking up. After all, they could make a lot of profit by reselling the goods elsewhere.
"If I were to raise the prices, perhaps you wouldn't be here asking me this question today. But that wouldn't be fair to the commoners in my territory. The restriction on purchases is just a last resort, isn't it?" Henry said calmly.
The merchants had nothing to say. Should they brazenly ask for the removal of the purchase restrictions? Although they also wanted to make more money.
They were afraid that they would be kicked out the next second, and they didn't dare to make any threats, for fear of being sent to the gallows the next second.
"And, with my financial resources, I might make even more money by organizing caravans and selling to other cities." Henry unsettled them again.
"What?"
The merchants were shocked. If Henry didn't sell the goods to them, it was clear that they wouldn't make any profit at all.
"Henry, if you have any requirements, just say it. We can accept the purchase restrictions, but we hope the amount of goods can be increased."
"Yes, we can also pay more."
In the end, the merchants couldn't bear to let go of this opportunity. The goods from Eldoria were really cheap, and they could make a huge profit by reselling them.
"You have to pay taxes. As long as it's within my territory, all transactions must be taxed." Henry said in a deep voice, "As long as you pay the taxes, I won't restrict your goods. You can bring as much as you want."
Upon hearing this, Soro understood. He completely understood. The previous display of wealth was not about showing off, but a preparation for taxation. Either they paid the taxes and continued to buy the goods, or Henry himself organized a caravan to transport the goods and sell them.
And the previous discussion about wealth and poverty was simply a way for Henry to demonstrate his financial strength, implying that with or without them, it didn't make much difference to Eldoria.
Indeed, taxation was Henry's goal. The part about organizing a caravan to sell the goods both as a way to fool those merchants and as a reality.
The goods sold by the caravans organized by Henry are high-value, high-yield items, such as canned fish, ceramic products, and so on, rather than the low-value items in the grand market.
"Henry, we want to know how you plan to collect this tax?" the merchants asked seriously. This was a matter that concerns their income.
"If you buy things in Eldoria, I won't tax you, but if you leave Eldoria with the goods, I will impose a tariff," Henry said indifferently.
The merchants understood tariffs. When they passed through the territories of some lords, they would have to pay a fee, which they considered to be an exit fee, or simply a toll.
"So Henry, how much do you think we should pay?" The merchants were much more relaxed, grateful that they would have to pay taxes on everything they bought.
"It will be calculated based on the quantity of goods. If you have a lot of goods, you will naturally have to pay more taxes; of course, there will be a set amount, as long as you don't bring more than that amount of goods within a certain period of time, you won't be taxed," Henry explained simply.
"Tax based on the quantity of goods?" The merchants were dumbfounded. Did that mean that they would have to pay taxes on the goods they hoarded before they left Eldoria?
"Don't worry, even after paying the taxes, you will still make a profit, just not as much as you did at the beginning," Henry said calmly.
With the introduction of tariffs, the relationship between the two sides had been reversed. These merchants could only earn some hard-earned money, but it was also a bit better than their previous business.
As for hoarding goods, it was no longer necessary. They used to think that the more goods they hoarded, the more they would earn. Now, with the introduction of tariffs, they were worried that hoarding too many goods would tie up their funds.
Ellie's eyes lit up, and she quickly wrote in her notebook. Now she had seen how powerful Henry was, and her worries had been easily resolved.
The merchants had to pay the tariffs, otherwise the goods would useless in their hands, and the Lord's Manor would collect taxes from both the buyers and sellers.
Of course, first, taxes were only levied when a large quantity of goods left Eldoria with the buyers, otherwise there would be no tax on buying things in Eldoria.
The merchants understood that today was simply a banquet with ill intentions. After they went out, others would think that they had obtained a large amount of purchase. When the tax would be imposed, everyone present would be affected.
Soro really sighed, was there really such a smart and talented person in this world?
Tariffs could perfectly protect the local market and increase the income of the Lord's Manor, which was simply a win-win situation.
Soro suddenly felt a little lucky that Henry was not serving in the Royal City, otherwise the merchants of the world would have to pay a lot of taxes, such as his caravan.
