Posted: Sun Oct 03, 2004 9:25 am
Yes, that would be true that if your business generated revenue, that it would not need to dig potatos all day.
Yet since the currency is not widely used in town nor well established outside of town, there is not enough in circulation. I think that the the currency only circulates between at most a couple dozen people. This makes very low monetary velocity, which is a major problem. I would guess that there is not consistent demand for products from the few citizens that use it to intake enough product sold at a good margins to survive on business income alone, without digging the potatos again.
Traders come to town, and do not use the Q, since a currency that is exchangeable for Q only in a distant town and valued on potatos and stone is of no value to most traders. If a trader took Q back to his own town, and tried to buy something with it there, it would be like trying to buy something at a Japanese store with the Peso, or at a Russion store with Brazilian Real. There are exchange services available to rectify this in our world (perhaps a business opportunity in Cantr, although it would likely have to be certified by the bank, and might not be feasible without the telegraph).
It really becomes much like a small rural town. There are not enough people in town to support many retail businesses. There is also not enough commercial business to support other supporting commercial businesses only selling to each other on the one town's currency.
Since the businesses probably need things that are not made in Quillanoi and have no relavant value to the Q, businesses do not generate any export revenue, only resources. This would be similar to a trade deficit in our world.
As a side note, having to have all transactions go through sleepy bankers is somewhat cumbersome as well
As far as I can tell, I think John Woodhouse is the longest established business man there, or perhaps the banker is, although the bank seems to be run in a governmental fashion. John Woodhouse supports the Q, but I wonder how many employees he has?
Yet since the currency is not widely used in town nor well established outside of town, there is not enough in circulation. I think that the the currency only circulates between at most a couple dozen people. This makes very low monetary velocity, which is a major problem. I would guess that there is not consistent demand for products from the few citizens that use it to intake enough product sold at a good margins to survive on business income alone, without digging the potatos again.
Traders come to town, and do not use the Q, since a currency that is exchangeable for Q only in a distant town and valued on potatos and stone is of no value to most traders. If a trader took Q back to his own town, and tried to buy something with it there, it would be like trying to buy something at a Japanese store with the Peso, or at a Russion store with Brazilian Real. There are exchange services available to rectify this in our world (perhaps a business opportunity in Cantr, although it would likely have to be certified by the bank, and might not be feasible without the telegraph).
It really becomes much like a small rural town. There are not enough people in town to support many retail businesses. There is also not enough commercial business to support other supporting commercial businesses only selling to each other on the one town's currency.
Since the businesses probably need things that are not made in Quillanoi and have no relavant value to the Q, businesses do not generate any export revenue, only resources. This would be similar to a trade deficit in our world.
As a side note, having to have all transactions go through sleepy bankers is somewhat cumbersome as well
As far as I can tell, I think John Woodhouse is the longest established business man there, or perhaps the banker is, although the bank seems to be run in a governmental fashion. John Woodhouse supports the Q, but I wonder how many employees he has?
