[X] Ymaryn Crown Bank (1x)
The idea of developing a company specifically to help develop the Khemetri infrastructure in a profitably manner for everyone's benefit was strongly considered, but looking at the Syffrynite companies and making a few pointed questions, it rapidly became obvious that setting up a trade company might require subsidizing it for an uncomfortably long time or uncomfortably large amounts. Far better, it was decided, to rework the banking infrastructure so that the wealthy among the People would develop such things on their own, without requiring input from the Crown directly. More than that, it was also considered that this could be a good way to address numerous tax issues. Stealing a collection of ideas from the Halvyni and Sketch and Kielmyr, the architects of the banking plan worked out the right amount of growth to offer to attract in those interested in depositing their money with the bank while not also potentially saddling the bank with unsustainable debts. The secondary effect, other than giving the Crown a large amount of cash to work with, was that boyars and princes who had been hiding their wealth before would now tell the government how much they had, and might even throw a fit if their money was tracked improperly. There was a small tax on money gained from investment, but it was distinctly lower than the interest earned.
It was clever and sophisticated and adroitly avoided the pitfalls that had already tripped up Syffrynite crowns and traders before.
As such, when it went weird everyone was left scratching their heads.
Scandal and bad reputation plagued the Crown Bank within the first few years, rumours of impropriety and predatory lending bouncing about like sparks on the floor of a poorly maintained powder magazine. At the highest levels none of these rumours made sense though, the bank remained in good state and those in charge of organizing the loans and investments were specifically recruited from the most staid, conservative, and unadventurous accountants the Crown could find. They had written accounts of Syffrynites being complete idiots with their banks and had taken every measure to avoid that!
Eventually though the investigations revealed what was going on, and the disconnect between reality for both those within the bank and without. Fundamentally, a large number of nobles had a really screwy idea about what the bank actually did, and quite a few had taken out loans using their properties as collateral, saying that they intended to use them for prudent development of lands or businesses, only to take the money were given and sometimes quite literally gambled it away. They were then surprised when, not only could they not take out another loan using their local reputation or access to troops to extract more coin from the "moneylender", but no, their ancestral lands were being stripped from them and the bank had the King's army backing them if the nobles decided that they wanted to make an issue of it. While the Ymaryn king or Gylruv Patriarch made a few personal nullifications, in general the bank won out, which engendered a huge amount of resentment from the nobility and those who listened to them. The Gylruv lower nobility was hit particularly hard by the Ymaryn Crown Bank in this manner.
The Ymaryn king also discovered to some discomfort that through the Crown Bank he was fast becoming the largest landowner in Gylruv, no doubt soon to eclipse the Patriarch if it kept up. The Ymaryn Crown also owned a considerably amount of land in other kingdoms, based off of the prudent merchants and nobility telling their imprudent counterparts that the Ymaryn were the best bank to go to if you needed large amount of money for an investment. While this land was often sold off as quickly as it could if it started to become a political hot potato, this was causing the concentration of land and wealth into a smaller and smaller pool of people. While in some ways useful, there were many rankled under this, and the anger threatened to boil over and wreck the bank's ability to do anything because no one trusted them. Worse yet, as demonstrated when one of the Lesser Princes of Gylruv had a company go bad, it was found that it was politically and practically impossible to actually collect the loan because he had enough powerful friends to get it nullified by the Patriarch - plus he actually had enough troops loyal to him that pushing the issue might result in a shooting match the bank couldn't win. Kings were always a fertile market for issuing loans, but were rather hard to collect on, and the bank was inadvertently making kings.
Then again, there was some musing that maybe that wasn't such a bad idea. The bank was under no obligation to issue loans to kings other than their own, and having a smaller number of nobles would simplify international relations and weed out the stupid ones that didn't deserve their belongings, long term improving the intelligence of investors and debtors the People would have to deal with. There were however others who suggested that perhaps simply donating some of the land back to the regions they were taken from instead of selling or working it themselves would promote a certain degree of goodwill that would restore faith in the bank. Finally there was a suggestion of reducing the penalties of those who defaulted on their loans, to instead of irreversibly seizing property held as collateral the bank instead of assume stewardship of the finances of their debtors, to ensure the money was repaid as best as possible while still not causing the anger of the forfeiture of ancestral properties.
All of this was of course mixed up in the philosophical and rhetorical battles about the Nature of Man and the Responsibilities of Leadership. Those pushing the philosophical position of absolutism were of course most in favour of continuing current activities, that those who lost their property in the scrupulously fair arrangements of the bank obviously did not deserve in the first place, and the concentration of wealth in the hands of the upper nobility made rule more efficient and absolute. Meanwhile the more humanistic philosophers called for the restoration of 'Natural Order' via the redistribution of seized land, to reduce the suffering of those who were stripped of property or displaced by the consolidation of territory making their activities superfluous. Both the absolutists and the humanists were annoyed by the stewardship position, for being impractical and patronizing, respectively.
Either way, politically something had to be decided upon, because either this was a problem to be fixed or a problem to be endured, and not deciding which it was would killing the bank despite its own success.
Choose a philosophy
[] Absolutism
[] Humanism
[] Stewardship