About this time, we began to notice that there wasn't enough money to go around. I don't mean that we were spending more than we made. Far to the contrary! Our products were being sold all over Europe, and the local currency had become a hodgepodge of pennies, deniers, pfennigs, and what have you, minted in dozens of different places. In theory, all these coins were of the same value, but in fact, their weight and silver content varied all over the map.
But despite this influx of foreign coins, there still wasn't enough to go around. I was converting Poland from a barter economy to a money economy. Peasants who had rarely needed or even seen money in their lives suddenly found that they wanted money to buy the things we sold, and that they could get money by selling their crops, now that the railroads and steamboats were operating and they could get those crops to market. The lack of silver coin was causing a serious deflation, and the prices of things were dropping precipitously.
I, of course, had all kinds of money, and at first I tried to counteract the deflation by raising the pay scales of the people who worked for me. I kept the bottom rate the same, a penny a day, since we always had a waiting list to get in, even with the military-training requirement. But after that, pay doubled with each promotion. There were three grades of non-managerial workers, warriors, pages, and squires, earning one, two, and four pence respectively, and from then on, well, a man could get rich working for me.
But it didn't help the deflation a bit. Most of the extra pay was spent in my stores and my inns, or left in my bank. Very little of it got out to the general public.
Then I tried buying things I didn't really need, mostly land. I started buying up land along the rivers because I had some vague ideas of one day building a series of forts along them. But not that much land was for sale, and buying land was not as easy as it would be in the twentieth century. There were all sorts of encumbrances involved, oaths of fealty, requirements of military service, the rights of the peasants living there, strange taxes, and what not. I managed to get out of most of these-but not peasants' rights-with one-time cash payments, yet it did not cure the major problem that I was trying to solve. When I bought land from some nobleman, he usually spent the money to buy the things that my factories were making! He wanted arms and armor, glass windows, and indoor plumbing. The money came right back to me and the deflation continued!
Furthermore, I couldn't resist making the land I'd bought productive and profitable.
Surely, this was a problem that no capitalist ever had to cope with!
Charity work was another matter. With the assistance of Abbot Ignacy and his monks, I worked hard at helping the poor. We set up soup kitchens in the major cities and a large leper colony on an isolated estate that I'd bought. But the engineer in me hates waste, and the waste of human potential is the worst sort.
Many of the poor were that way simply because they could not find honest work, so I gave it to them. I set up non-army construction groups to build railroads and bridges. They were supervised by army personnel, of course, since there weren't many trained, technically competent people outside it. We were running tracks as fast as the blast furnaces could cast them, and most of our lines were double-tracked, so we didn't have to worry much about scheduling. With a single-tracked line, you have to make sure that a train isn't coming north before you take yours south. Double tracks can be treated just like a highway.
Some of the poor were children, orphans. We set up an adoption service, and many of these kids were adopted by army families. Some of the poor were old or feeble. In the cities we set up factories that turned out knitted goods, much of which were bought by the army. We always needed socks and underwear.
Undoubtedly, all of this did a great deal of good for the people. I think it made me something of a people's hero. At least they insisted on cheering whenever I was around, though in fact I would have preferred some peace and quiet. And what do you do when children and old women insist on kissing your boot, for God's sake! It was embarrassing. I got to giving a standard speech, thanking them, but saying that I didn't like people yelling at me, and if they wanted to do anything for me, they could pray in church for my soul, which needed it. It didn't help much. Most people would rather yell than pray.
Yet the prices kept on dropping and my coffers stayed full. Even feeding the indigent, we had to buy from the farmers, and the farmers made enough money to buy our plumbing supplies and glass windows. Raising my prices didn't help either. They just bought less, but spent the same amount of money, so I put prices back where they had been.
I In the middle of this charity work, Abbot Ignacy became His Excellency Ignacy, Bishop of Cracow, and he stepped lightly from the regular clergy to the secular branch of the Church. How much I had to do with this promotion, I don't know.
Despite his elevation, Bishop Ignacy remained my confessor, and I made a point of seeing him at least once a month. He had traded in his humble monk's robe for the glorious raiment of his new office, but he wore his embroidered silks and velvets with the casualness with which he had treated his old brown smock when we had camped along the river, so many years ago. His new office, in his palace near Wawel Cathedral, was as ornate as a church altar, with brightly painted carved wood encrusting the walls and ceiling, but he had moved one of our standard wooden desks into it, the sort that our cabinet shop turned out by the gross.
"Ah, Conrad! Have you come to confess again? Have I told you how much I like these desks you've designed? What with all the drawers, I can keep everything at hand. I've recommended them to all my priests."
"Uh, yes, no, and thank you, your excellency." I made a mental note to have a special desk made that would match his office, rather than looking like a computer in a church.
"Oh, 'Father' is sufficient when we are alone, Conrad. Did I tell you that there is word on the inquisition the Church is conducting in your regard?"
Ever since arriving in this century, an inquisition had been hanging over my head. The Church was trying to decide if I was an instrument of God, perhaps to be canonized, or an instrument of the devil, to be burned at the stake. I couldn't help being a little anxious about it.
"What has happened, Father?"
"Well, you recall that when first you came to this century, I wrote up all the particulars quite diligently and presented them to my abbot. He, in turn, quickly annotated my report and within the month sent it to this very office. The bishop of that time felt that the matter would best go through the regular branch of the Church, rather than the secular, so he sent it back to my abbot with that recommendation. My abbot then sent it to the home monastery as soon as someone could be found who was going in that direction, and the speed and diligence of all concerned was such that the home monastery in Italy was able to reply back to us within the year."
"Yes, Father, but--"
"But the home monastery was sure that this was a matter for the secular branch, so my abbot sent the report, with notations, back to the Bishop of Cracow. But by this time, you had established yourself in Silesia, which of course is in the Diocese of Wroclaw. The Bishop of Cracow therefore sent the report to the Bishop of Wroclaw, who forwarded it to the Archbishop at Gniezno. From there, it was sent to Rome, with further notations. Rome then replied with a request that the Abbot of the Franciscan monastery here confirm the report. By this time, however, I was that very personage, and having all the facts at my fingertips, as it were, I was quickly able to comply, and provided an update on all your doings."
How could I forget that? After three years, all that had happened was that Father Ignacy had written a letter to himself, and then he had replied to it!
"Yes, Father, but-"
"Now, since all this had transpired within a few years, you can see that the matter was being pushed forward as quickly as possible. But then several years went by in which I heard nothing, so I took it on myself to write a letter of inquiry to Rome. As it turned out, my reply to the report had somehow gone astray somewhere between Gniezno and Rome, no one has any idea what happened to it, and the merchant who carried it was never seen again. Fortunately, the Archbishop of Gniezno had caused to be made a true copy of the entire annotated report for his files. A copy of this was made and again it was sent to Rome. Rome's reply returned through proper channels only a week ago, and it orders that a full inquiry be made by the Bishop of Cracow, who at this time again happens to be me. Of course, I complied immediately, and a full report is again on the way to Rome, through channels, of course."
So Father Ignacy had for a second time answered his own report! And nothing of significance had transpired in seven years! It made me want to scream and pull out my hair! But, with work, I kept my cool.
"So Rome still doesn't know much about me, Father?"
"How can you say that, Conrad? They've seen my reports, haven't they? They also subscribe to the magazine you started and get a copy of it every month! People are learning Polish just to be able to read it! Your books and plumbing supplies are all the rage in Rome, and everyone there has one of your lighters! Of course they know about you!"
I sighed. After Confession, I mentioned that I was going over to the monastery to talk to the artist, Friar Roman.
"Then I've saved you a trip, Conrad. I brought Roman over with me, I think mostly to keep an eye on him. He had been using the wealth he gained from designing church windows to hire young ladies as models, and was posing them most immodestly!"
"In most cultures, your excellency, that would be considered an artist's prerogative."
"Not in my church, it isn't! What did you want to see him about?"
"Lithography. It's another printing process, well suited to art work. We have accurate maps of much of Poland now, and I need many copies made of each. I have a new machine almost ready at Three Walls, and I want to teach him how to use it, since it takes an artist:"
"Three Walls would be just fine, Conrad. Take him for as long as you need him. But you keep that boy away from Okoitz! If it was in my diocese, there'd be some changes made there, I assure you!"
"Yes, Father."
Friar Roman was delighted to get out from under Bishop Ignacy's thumb, and caught the next boat to Three Walls.
The deflation was still troubling me, and I finally realized that to inflate the economy back to its previous levels, I was going to have to add new money to the system. With the duke's permission, I started making my own coins, with his likeness on one side and a Polish eagle on the other. For some years, we had been refining zinc and calling it "Polish Silver." No one had paid much mind, but the fact was that we were the only people in the world that had this technology. I made it a secret technology.
The only problem was that to use zinc for coinage, I had to drastically raise its price. I could sneak it into the brass, since very few people realized that brass was an alloy of copper and zinc. They acted like it was a separate metal. But the price of pure zinc items had to go up and the price of galvanized iron skyrocketed to the point that sales went way down.
I wrote a series of articles for our magazine, explaining the cause of the deflation and what I intended to do about it. My alchemist, Zoltan Varanian, made an analysis of the silver content of each of the six dozen supposedly identical coins that were in circulation, and I published it. The silver content of those coins varied from forty percent down to as little as three percent!
The result was economic chaos for a half year. But at the same time, I came out with a series of zinc coins in various denominations. I rated zinc at one-sixth the value of pure silver, but the whole concept for different denominations was new, and it took some people a while to get used to it. But in our money system, with a few large coins you could buy a horse, and with the smallest, a kid could buy a piece of candy, something that was not possible before.
In one of my magazine articles, I made a serious oath that the content and weight of my coins would be absolutely constant, that we would trade any worn (but not clipped!) coin for a new one, and that we would trade our coins for standard silver coins on demand. "Polish Silver" caught on.
Then we started buying everything in sight! We bought land, we bought furs, we bought amber. We bought land in the Bledowska Desert, built huge granaries there, and set up a constant pricing system for purchases and sales, buying grain by the hundreds of tons! We even bought silver and gold. But mostly we bought land. In a few years, we owned most of the land within five miles of the Vistula, the Odra, and many of their tributaries. Once we had the time, I was going to ring Poland with a line of concrete forts!
But all this land aggravated some of my other problems. Besides being the owner, I had to be the police force and the judge as well. The police force wasn't a big problem, since I had set one up years ago. Whenever one of my bailiffs had a problem he couldn't handle, he called in a detective. And now that these men were partnered with Anna's progeny, their arrest rate was near perfect. The Big People could smell out a thief or a murderer every time.
Most of the other Big People were working carrying the mails, and the speed of mail transport was doubled. After the first few months, we started using them without riders, and except for some astounded travelers, there wasn't a hitch.
But what I needed now was some judges and lawyers, and the man I knew who was most knowledgeable of the law was Sir Miesko. He had been my next door neighbor for years. Well, his manor was six miles away from mine, but that's the way these things went. He was my assistant Master of the Hunt, and in fact ran the thing on all the duke's lands. He got all the furs taken each fall, and this had made him rich. He had once been my biggest vendor. providing food for Three Walls, but now was one of my best customers. He'd built a truly fine castle using my building supplies, and many of the features of my own defensive works, like the combination granary and watchtower, were invented by him.
He'd been a legal clerk, the closest local equivalent to a lawyer, before he was knighted for valor, so I asked him to head up my legal department.
"I'd like to, Baron Conrad, but I just can't. The Great Hunt takes up a lot of my time, and running my manor takes up more. You know that all of my boys have joined your army instead of helping me out around here, and, well, I'm just not as young as I used to be."
"Damn. I can see your point, though. Okay, if not you, then who? Do you know a truly honest man who knows the law?" I said.
"That's a hard one, Baron. Somehow, the more a man knows about the law, the less he seems inclined to obey it! But yes, one man comes to mind. He's only a few years younger than I am, but he doesn't have my responsibilities. We worked together in my youth, and we've kept in touch. Adam Pulaski, he's your man."
So I got in touch with this Pulaski. I set him up with three younger men, one to act as prosecutor, one to be defender, and one to be court recorder. I sent them out to take over my case load. I had to approve all their actions, of course, and any capital offenses had to be taken to my liege lord, Count Lambert, but they were the start of the army court system.
Before the Mongol invasion, prices were back up to Where they had been before I had arrived. After that, we just watched the prices of a dozen common commodities, and if the average price got too low, we brought it back up by making more coins and buying things we didn't need.