Chapter 42: Open strategy

What do you mean?

Transfer the Republic’s gold reserves to the Elven Kingdom?

Livyat calmly raised her head slightly to look at Domenico, finding that his expression remained unchanged as he looked back at her.

This was a test.

“Lord Domenico, why would you say such a thing? The gold accumulated by the Republic is not something the elves would dare to covet.”

Domenico’s expression did not shift, but he gently rested his right hand, which had been on his knee, onto the sofa.

“Miss Livyat, you may not be aware. If they continue to frantically scramble for the South Islands Company’s stock like this, the gold reserves will truly be finished.”

Livyat had actually heard rumors about this since arriving in Landingset, especially after being admitted to the Civil Affairs Bureau.

However, for her, with a monthly salary of 110 Grosso, it felt quite distant.

Nevertheless, she had studied these matters a bit and discovered that while Landingset’s finance was incomplete, it did have a system.

Domenico continued.

“To be precise, our gold reserves are already… already unable to redeem the stock. In fact, we are quite far from being able to do so.”

Livyat asked back in a soft voice.

“Why should the Republic redeem the stock of the South Islands Company? Is that not a matter for the company itself?”

Julia chimed in at the appropriate time, knowing that Livyat did not understand these things.

“Liv. You don’t know the full story. The South Islands Company is a company established under a charter from the Governor’s Mansion. Its full name is ‘The Chartered Company of the Most Great Republic’s South Islands Colonies’.”

“It allows for the direct purchase of stock through ‘Republic Confirmed Debt’ without the need for cash. The so-called confirmed debt is debt that the Republic confirms can be redeemed through bills of exchange, but it requires a mandatory delay of 2-10 years or even longer for redemption. Often, debts are converted into these bills in this manner, but later, they even started selling the bills directly.”

“Because these bills, guaranteed by the Republic’s credit, retain their value so well, every country on the continent is willing to acquire them, and nobles and wealthy people love them dearly.”

“Bills that hold their value so well can be directly exchanged for company stock. Coupled with ever-increasing propaganda and heightened expectations for company profits, the Chartered Company has become the symbol of the Republic. However, there is a threshold; ordinary citizens cannot purchase the stock at all, but foreign nobles holding the bills can.”

No wonder the South Islands Company felt like neighborhood gossip to her.

Domenico took over the conversation and sighed.

“The problem lies right there. Ordinary people with an intent to speculate will find connections or use bribes to have powerful figures hold the stock on their behalf. In reality, it has already sucked in the money of countless residents who want to make venture investments.”

“The foundation of the company is actually the gold credit of the Republic. We could certainly let the company go bankrupt, but to be honest, it would be better to just set Landingset on fire.”

Livyat understood; it wasn’t difficult.

Then she also realized what Domenico wanted to do and gasped.

“So, you are thinking that if the assets truly cannot cover the liabilities, you simply won’t honor the redemptions and will store the gold in the Elven Kingdom instead? But what use would that be? The nobles, wealthy merchants, and commoners would still direct their heavenly wrath toward the Governor’s Mansion.”

Domenico slowly slumped into the sofa, tilting his head back, the wrinkles on his face twitching with his light coughing.

“Heh. A ship is bound to hit the reef eventually. Since that is the case, we should throw part of the cargo into the sea first; there will always be a chance to get it back later.”

Livyat carefully tested him back, wondering just how deep the Republic’s waters were.

Could they truly be deep enough to drown her former self?

Why didn’t she feel it?

“Then, then currently, exactly how much is the difference between the gold reserves and the stock value?”

“Six times. Six times the gold reserves. Especially with the fiscal deficits of recent years, at the current rate, it will continue to increase.”

Julia, who was beside them, let out a cry of surprise; even she didn’t know the gap was that large.

“Don’t be surprised. It is possible that even Baur Dandolo doesn’t know the exact figures,” Domenico said.

Terrifying.

This was truly terrifying.

No wonder the Republic had made such a mad policy shift, no wonder they were currying favor with the Elven Kingdom at all costs, and even directly and forcefully suppressing the “Northern Faction.”

One must realize that the Republican Guard entering Landingset was something Livyat had never experienced in five years.

“Lord Domenico. But for now, it seems the Republic’s cooperation with us is very pleasant. You have earned more than a hundred thousand extra Ducat gold coins in just one month. The fineness of Ducat gold coins is excellent; converted into pure gold, it is an astronomical figure. If this continues, the Republic might gradually regain its redemption capability.”

“Yes, theoretically that is so. But now, Baur Dandolo can no longer suppress those bastards under her. They are considering directly impeaching the Governor and demanding his resignation when the Parliament opens next time.”

Livyat frowned.

Last time they only demanded Domenico withdraw from the Council of Ten, but this time they were actually threatening the Governor directly?

“Their reasoning is—the Governor is suspected of receiving massive benefits from the elves, so regardless of whether a policy is beneficial to the Republic, it is ultimately not impartial. A new Governor’s Mansion and Council of Ten must be formed, and every policy of the Governor must be independently audited by the High Court. Most importantly, the budget proposal freeze must be lifted and the budget proposals must be reviewed.”

After saying all this, Domenico signaled Julia to help him pour a glass of water, as the servants had all been dismissed.

Watching the elderly Domenico drink water bit by bit, and seeing Julia beside him with an equally grave expression, Livyat hesitated repeatedly before finally speaking.

“Lord Domenico, have you and the Governor not considered solving the trouble that is Baur Dandolo?”

Domenico slowly put down the water glass and didn’t speak for a long while.

“Yes, we have considered it. But there are two problems. The first problem is how to solve her—do we just send the guard to kill her? If so, then there is the second problem: her partisans are not as easy to talk to as she is. It would be equivalent to directly inciting a civil war.”

Julia also added: “Although Baur Dandolo cannot control the Army, she does indeed control the Navy to a certain extent. We simply cannot afford a split in the Navy.”

Livyat lowered her head in thought, her silver hair falling loosely over her forehead.

It seemed this was truly a dead end; the great ship of the Republic was speeding toward a storm.

Solving Baur Dandolo wouldn’t truly change anything.

But what if they solved Baur Dandolo first?

Livyat kept her head down and suddenly began to laugh, making Domenico and Julia feel bewildered.

Just as Domenico was about to ask, Livyat raised her head, her eyes bright and teeth white, speaking triumphantly.

“What if Her Majesty the Elven Queen sends a secret letter, instructing Baur Dandolo to send the fleet to the Big River estuary battery to await further instructions—with no need for instructions to do anything further, just to wait there?”

“Then, the Governor’s Mansion intercepts this letter and arrests Baur Dandolo and her closest associates in the shortest time possible after making it public.”

“Finally, a second secret letter from the Elven Queen is also intercepted on the spot. It turns out she only hoped for Her Majesty the Queen and the Prince Regent to review and observe the Republic’s fleet.”

“However, as for whether Baur Dandolo had previously received the Queen’s instructions, or what she had done, that would be unclear, wouldn’t it?”

This was indeed an open scheme.

Not particularly clever.

But Livyat was the new Elven Queen.

She could cooperate fully with Domenico to use the shortest time difference to legally arrest Baur Dandolo.

A coup depends on military speed and post-event legality, and they would only need less than a single morning, after which everything would naturally be legal.

After hearing this, Domenico inquired: “The key lies in the timing of the secret letter’s delivery. The Elven Kingdom is very far from here.”

Livyat guaranteed: “My Lord, I will ensure the two letters are delivered on time. I am the person closest to the Queen.”

Julia also spoke from the side: “Miss Livyat’s influence is much greater than you imagine. She will make the Queen and the Queen’s messenger cooperate with down-to-the-minute precision.”

Domenico’s tense old face finally smoothed out gradually, revealing the most sincere smile Livyat had ever seen.

It was a risky move, but the arrow was on the string and had to be fired.

They had to deal with Baur Dandolo before the next meeting of the Parliament.