As Marcus stepped up to the podium, he could feel all eyes on him.
At the front sat the consul Silanus and eight praetors.
The faces they wore during the rebellion were full of favorable glances.
Behind him, however, the twelve tribunals were still skeptical.
How realistic an alternative could a young aristocrat who grew up as a greenhouse plant be?
Marcus was not discouraged at all by the eyes of the influential people and countless citizens leading Rome.
His confident yet relaxed demeanor as he looked around the room caused a few senators to sigh.
Brutus, Curio, Cassius, and several other young men lined up behind Marcus.
There was a uniform determination in their eyes.
The occasion's solemnity quieted the commotion in the square for a moment.
Soon Marcus' calm yet powerful voice rang out.
"Honorable Senators, and dear citizens of Rome. I would like to begin by expressing my deepest gratitude for your presence at the meeting we have organized. My name is Marcus Licinius Crassus. I stand here today to make a serious proposal."
One of the most necessary abilities of Roman politicians is their public speaking.
Marcus didn't have the flamboyant rhetoric of Cicero, but he had a clear and trustworthy charisma.
It was a combination of having a background as a child as the one standing on top of a lot of people, as well as a lot of hard work.
Marcus continued.
"Not long ago, Rome was almost thrown into a great crisis by a disastrous conspiracy: the consul Catilina, as you know, planned to overthrow the city. Fortunately, through the wise action of the Senate, the rebellion was put down. However, the scars that Catilina's rebellion left on us were by no means shallow. Debtors, who had been given sweet hopes, were driven to despair, and creditors were kept awake at night by a sense of crisis. The culprits who caused the trouble were punished, but the underlying problem was not solved."
The square was eerily quiet. Everyone was focused on Marcus's speech.
Marcus pointed to Justus, who was already waiting behind him.
"The person who informed us of the plans of the traitorous Catilina was originally part of the circle of those who were acting in collusion with him. However, he was unable to sympathize with Catilina's outbursts and made a courageous decision. The vast majority of those who fell for Catilina's claims are virtuous and conscientious citizens. They were simply desperate, so desperate that they were willing to believe any of Catilina's rhetoric. If we do not address this issue, a second and third Catilina could emerge at any time. This time, with the help of the gods, we managed to stop it, but there's no guarantee that things will go well next time."
When Marcus had said that much, the praetor Aloysius rose from his seat.
"So what you're saying is that you need to make your debtors happy, and you don't mean debt relief?"
Aloysius was a well-known wealthy man in Rome with a large number of debtors.
As such, they were among the most sensitive to the issue.
Marcus answered with no hesitation at all to a question full of vigilance.
"I'm not willing to make the ridiculous claim of full relief. I'm in the position of a creditor who has lent me a significant amount of money. All I want is to see Rome's economic system run more soundly and smoothly. I have therefore devised a number of measures, with the help of a number of professional experts, my learned comrades, and my esteemed father, which I shall now describe one by one."
Creditors, who were nervous about Marcus' words, showed noticeable relief.
It became clear that he was not simply trying to incite the people with his youthful enthusiasm.
Marcus started with the weakest reforms that would be most acceptable to creditors.
"First of all, we need to liberate our citizens who are over-indebted, and by over-indebted I mean those who are stuck with excessive interest charges even though they have already paid off well over the principal amount."
Marcus turned his head slightly, and Cassius stretched out the parchment scroll as if he had been waiting.
"Our own research shows that there are still many people who are trapped in usury, with interest rates of over 40%. A citizen named Publius was forced to sell the land that was mortgaged to him because he couldn't afford the accumulating interest, even though he had paid back more than four times the principal amount."
One citizen jumped out of his seat, thumped his chest, and vented his frustration.
His eyes were so bloodshot that the tears threatened to fall at any moment.
"I'm Publius! Everything he says is true. My wife fell ill with a rare disease and I needed money urgently. I looked elsewhere, but the moneylenders who understood my urgent situation all demanded 49 percent interest. I had no choice but to borrow the money, and unable to pay the accumulating interest, I fell into a huge debt."
"Tsk tsk tsk... You guys are the bad guys in the world."
"If the interest is 49%, isn't the interest I pay at one time half the principal? This is a downright scam."
An uproar of protest followed, not only among the citizens but also among the aristocracy.
In this era, it was common to call for high-interest rates.
In fact, history records that Brutus earned interest at the rate of 49% on his tribute, which infuriated Caesar.
But charging the same Roman citizen an exorbitant interest rate was a bit too much.
The equites people who did this kind of loan business were looked down on in case they were caught.
Marcus wouldn't reveal the names of those people.
They were not there to shame or assign blame.
"First of all, we need to bail out these good debtors. More people in debt and broke means less tax revenue. Protecting healthy taxpayers is the key to a stable budget. That's why I believe that debt should be forgiven only for those who have already paid off their debts, and that an explicit cap on interest rates should be legislated to prevent this from happening in the future."
"Oooooh! That's right!"
"Let's do as that young aristocrat says!"
Applause erupted from all sides, and citizens' shouts soared.
There was no particular complaint among the aristocrats.
Even the equites were willing to accept it if it was within that level.
It's not a loss since you've already received your money back.
However, some people have different opinions on the legal interest rate limit.
Again this time, Aloysius rose to express his doubts.
"I don't think anyone can argue with easing the burdens of overburdened citizens. But I think we need to be careful about limiting interest rates. Of course, we shouldn't allow people to take advantage of others. But you know that high interest rates are set because the principal is unlikely to be recovered, and if we lowered interest rates indiscriminately, creditors would be less likely to lend money."
"That's a valid point. We have prepared a sufficiently convincing preventive measure for that part. Before I tell you that, let me explain more about the debtors' remedies."
Aloysius sat down again in response to a smooth reply that seemed to flow.
He wasn't concerned about grasping at straws.
Now that he was confident that Marcus had done his homework, he was willing to listen to his story.
Marcus waited until the atmosphere of the excited citizens calmed down a little before continuing his explanation.
"It's an unfamiliar concept, but we've devised a system called bankruptcy and debtor rehabilitation."
While bankruptcy commonly refers to losing all your money and being ruined, it has a different legal meaning.
It is the process of distributing all of a debtor's assets to creditors when the debtor is completely financially insolvent and unable to make payments.
Debtor rehabilitation is a system that allows debtors to reduce their debts to the point where they are able to repay them.
Both of these policies require the creditor to take some losses.
In the case of bankruptcy, there is no possibility of recovering the principal, so let's save the remaining assets.
In this case, it is almost impossible to receive the original amount.
Since a debtor rehabilitation program provides debt relief to the extent that the debtor is able to pay it back, it is natural for creditors to lose money.
At first glance, it seems like a system that forces creditors to make unilateral sacrifices, but Marcus stressed that it is not.
"People with debts that common sense tells them they can't afford to pay simply give up. In desperation, some commit suicide, others turn to drunkenness. The same goes for those who have sold everything they own and still can't pay off their debts. This has created, and continues to create, a huge number of bankrupts. This all adds up to less tax revenue for Rome. As the number of taxpayers continues to decline, the inevitable result is an increase in indirect tax rates, which, of course, increases tax resistance, which, in the long run, leads to another decline in tax revenues. It's a vicious circle that can't be broken."
"So you're asking creditors to sacrifice to break the cycle?"
"No. If you look at it coldly, the losses in bankruptcy and rehabilitation are already beyond recovery. What we're trying to do is make sure that debtors don't walk away from their payments, but that they're able to keep a realistic amount of money - in other words, they're going to lose money, but we want to minimize it."
"Hmmm.... Well, that does sound plausible."
For now, many senators and the equites seemed to be convinced.
Even the cynical tribunals were impressed by Marcus's clarity.
Marcus then blocked the counterargument by hitting the expected side effects ahead of time.
"Of course, many people are worried about what to do if there is a debtor who exploits it. Of course you have to be concerned. As it is a system that can be burdensome to creditors, it should be thoroughly investigated and reviewed. And there will also be a need for a law that says those caught trying to hide their property and abuse the system will be punished severely."
"Hmmmm...."
"That certainly seems reasonable, but...."
Needless to say, the response from the citizens was favorable, and the more conservative senators didn't say no.
Marcus put the nail in the coffin with a convincing tone.
"This is by no means forcing sacrifice on one side to seal the conflict. Debtors are freed from the swamp of too much debt and are motivated, and creditors are able to minimize losses. And the state can maintain a stable tax base. It's not about which side loses, it's about everyone cooperating so that Rome can move in a better direction."
"That may be the way to go, but what are you going to do with the debts you've accumulated? Even if you could reasonably recover them through bankruptcy and debtor rehabilitation, wouldn't that leave you with too many creditors to cover?"
Cato, who had been quiet until now, asked a question. Not an objection for the sake of objection but an innocent question.
Of course, countermeasures were also prepared for this.
"That's why we need to implement the system and push for reform now. There's no chance of doing it unless it's now."
"Why does it have to be now?"
"First, there is a nationwide consensus because of Catilina's rebellion. There is no policy that can completely satisfy everyone in the first place. However, if there is a consensus that reform should be passed, it will be easier to reach an agreement."
"I'd agree with that. But it doesn't seem to answer my question."
"The second reason will be the answer: next year Rome will experience an unprecedented surplus of funds, thanks to the enormous sums of war reparations from the East and the newly organized taxes of the provinces. And since no one could have foreseen such an increase in the budget, its use has not yet been determined, so I propose that a portion of it be used for financial reform. Wouldn't it minimize dissatisfaction if the state made up some of the initial losses that creditors will inevitably have to bear?"
Applause erupted from the area where the equites were concentrated.
They had no reason to object if the state would compensate them for some of their losses.
The majority of senators also said they had no problem with it as long as the budget was available.
Certainly, now was the best time for reform, when social consensus was formed, and funds were sufficient.
If they didn't take advantage of this opportunity, they wouldn't know when it would come around again, so naturally, they viewed Marcus' proposal positively.
But Marcus' real goal was just around the corner.
What they're talking about here is just cleaning up the mess that's already been made.
They needed to put in place fundamental measures to prevent this from happening again in the future.
There is a limit to bailing out citizens who fall due to bankruptcy and debtor rehabilitation.
What really matters is that they ensure they don't fall.
Limiting interest rates wasn't enough.
'We desperately need land reform, but that's never going to pass.'
The land monopoly of the aristocracy is the main culprit in the decline of the subsistence farmer.
He doesn't know if the peasants who lost their land could have been turned into tenant farmers, but the aristocracy ran a Latifundium with a large number of slaves.
The only way to solve this problem is to reform land laws to encourage smallholder farming.
But it was still too early to tell.
After the Gracchus brothers, the land laws became a kind of symbol of opposition to the Senate.
Marcus did not need to take care of it in a hurry because Caesar would have to do it to the minimum in the future anyway.
So Marcus decided to focus all his energy on financial reform for now.
"I think most of the problems that are scattered now will be sealed by this reform. But if structural institutional reforms are not involved, the number of people filing for bankruptcy will continue to increase. We have to think about this."
"Are you advocating stronger reforms than now?"
"Yes, this is necessary, and I am confident that I have sufficient evidence to support it."
After a brief interruption and the attention of the public, Marcus opened the scroll handed to him by Curio and dropped a bombshell.
"The first thing to do is to reform the tax system."
The senators, who had been calmly listening to the explanation, jumped.
"Tax reform!"
"No matter what, that's too sensitive!"
"I know, and that's why I'm proposing a one-year trial. For starters, we should abolish the special taxes collected from the common people, and make sure that the tax rates set by law are strictly adhered to. We should also lower the tax rates on items that are too high, to reduce the resistance of the citizens. The law should also be amended to allow for checks on tax collectors' abuses at the governorate level, which means focusing on making the system as transparent as possible, rather than just collecting more money."
The number one cause of tax evasion is resistance to taxes.
Excessively high tax rates and a non-transparent taxation system were responsible for driving this resistance to extremes.
But the senators, who believed that increased taxation was good for Rome, were unimpressed.
It was openly frowned upon, especially by those who had served as governors of the provinces.
"I understand your intentions, but things don't always work out that way. It's a common mistake for young people to make. It's good to have a fair and transparent system, but it's more important to have tax revenue."
"I strongly agree with what you said. The most important thing is to have a stable tax base. That's why I'm making this proposal."
Lucullus asked, raising an eyebrow.
"Are you telling me that I'm going to pay more in taxes if I do that, even though they've lowered my tax rate?"
"It increases unconditionally. The current Roman tax rate on provincials is by no means high, but when special levies are included, it's a different story. Add to that the abuses of the tax collectors, and the actual rate is often much higher. So naturally, the citizens try to avoid paying any taxes at all, and the result is that they don't get as much as they should."
Marcus brought the detailed tax revenue status directly to Lucullus.
Reading the report, Lucullus and the rest of the senior senators chuckled.
Marcus wasn't wrong about anything.
In many cases, less tax was actually paid than should have been.
"Seriously."
"Yes. So I think we need to improve the system in a way that reduces taxpayer resistance as much as possible, so that when we have more tax revenue, it's easier to enforce policies that don't destroy the backbone of Rome, which is the subsistence farmers."
"But that assumes an increase in tax revenues. What if I do what you say, and the next year's tax revenues go down? Even if we get it back on track, who's going to make up for the cost and immediate losses?"
"I will compensate you."
Marcus replied casually.
For a moment, the square was eerily quiet.
Lucullus stuttered and asked again.
"So, you're going to compensate, how?"
"If the tax revenue is really reduced compared to this year, I'll fill up twice the difference in the national treasury. I believe that that will be sufficient compensation for the damage."
"Hehe.... Are you that sure?"
Lucullus glanced at Crassus behind Marcus.
His expression didn't budge, as if this had already been discussed.
Lucullus and other senior senators remain silent as if they don't remember when they objected.
In fact, it's good if taxes are collected more, otherwise what else can he say about filling them with their own money?
Given Crassus' wealth, even if the tax revenues were cut in half, it would be more than enough to compensate.
If the tax revenue really increases, it will continue to do so, or if not, it will be enough to return to its original state.
The Senate had nothing to lose: the fewer taxes they collected, the more money Marcus would have to compensate them.
Most importantly, if you reduce the effective tax rate and increase revenue, you can do so while keeping your citizens happy.
There seemed no reason not to give it a try.
Of course, Marcus was confident that the revenue would increase.
The reason was simple.
This is because it's a policy that has actually worked in history, with Caesar and Augustus implementing it.
Although the details were revised more reasonably, the basic gist was the same.
Knowing the future results, it was not difficult to wrap it on a plausible basis.
Marcus also proposed transit loans for people with too much debt to move to a lower interest rate, long-term low-interest loans for the poor, and a state-run program to find simple jobs for the unemployed.
Among the policies used in modern times, only those sufficiently feasible in present Rome were selected and brought.
And laws to implement these policies naturally serve as the background for the creation of modern forms of banks.
Marcus' basic policy was to take both the public and his own interests at the same time.
This time was no different.
He wanted to solve the ills of Rome and fulfill his own self-interest by establishing a bank.
Marcus preached that this new concept of institution is essential for the future.
"Finance is all about stability and credibility. If you don't have authoritative institutions running the system, you're going to have a problem somewhere. What the bank does is not just hold money and lend it out. As we move away from an individual-centered financial system, we can do a lot of things that we couldn't do before. Right now, we can dramatically improve the low recovery rates in the lending industry, which was a concern of yours, Praetor Alosius, at the outset."
"Why? It's not like creating an organization like that is going to suddenly make debtors more capable of paying their debts."
"To be more precise, we will be able to screen borrowers who have the ability to repay the money much more accurately. We'll have a full-time staff of experts constantly assessing the creditworthiness of people who come to us for loans, and we'll be able to objectively determine their ability to repay in a way that's unparalleled today. So good customers will be happy that they can borrow money at a low interest rate, and lenders will be happy that they can get their money back."
"You're de-risking it by making sure it's recoverable, so you don't have to charge a high rate of interest to make sure you don't lose money."
He could ramble on all day to explain what they can do with a bank, so he'll leave it at that.
In the first place, the Senate's superficial knowledge of banking was best kept to a minimum.
Marcus began his speech with a deliberately cryptic statement to discourage senators from asking additional questions.
"Honorable senators and citizens. It is now almost 700 years since the founding of our city, and 450 years since the introduction of the excellent system of the Republic. In that time, we have seen countless great powers fall and fade into the dustbin of history. Macedonia, under the all-powerful Basileus Alexandros the Great, was divided into four states. And of those four states, only the Ptolemaic king of Aegyptus (Egypt) remains in the form of a nation. And what about Egypt? Egypt was a world power even before the birth of Rome. Is there anyone here who doesn't know the glory of Egypt's past?"
Most of the senators laughed bitterly at Marcus's question. No uneducated men did not know that at least not in the Senate and equites ranks.
"Egypt is said to have existed since the distant past, when the gods walked the earth. But what about now? It has become so weak that it can't even respond to foreign invasions without our Roman protection. Still, it is better to have an Egypt that retains some form of statehood. Think of Epirus and Carthage!"
The faces of citizens who recalled Pyrrhos and Hannibal, who caused Rome a great wound that could not be washed, hardened. Marcus, who drew the intended response, went on satisfactorily.
"Still Rome has not forgotten that nightmare, but where are the two nations that were so strong now? Not even a trace of the nations can be found, they have perished. An enemy so valiant and powerful has come to exist only in our memories. What do you think is the reason for the fall and decline of so many great powers in history? Did they simply perish through natural physiology, as the moon tends to rise when it's full? No, they fell because they couldn't keep up with the changing times, but our Rome is different. We embraced superior technology and civilization, even from our enemies, and made it our own. It was this flexible attitude that made Rome a world-conquering power. A great achievement for the Senate, who wisely guided the country, and the citizens, who obediently followed suit! I would like to take this opportunity to express my deepest respect and gratitude to all of you for building such a great nation."
Marcus stopped talking and bowed respectfully to the senators and citizens in front of him.
An indescribable pride passed on everyone's face.
Recalling their ancestors and their own accomplishments, they nodded and focused on Marcus's next statement.
"But the Roman system is not perfect either, for no system in the world is perfect, and our wise forefathers recognized this and changed laws and institutions as they saw fit to suit the times. In the war against Carthage, they introduced a war tax, and the patricians stepped up to the challenge and paid it. When the traditional citizen army was stretched to its limits, they raised legionaries to meet the Germanic threat. Our ancestors have met crises by parting with the old and adopting the new. And now we are being asked to make a choice that they would not be ashamed of. I implore you to make the best decision for the future of the Republic, so that Rome may remain as great as it is today, so that history will not be written a thousand years from now as a power of the past."
Marcus's impassioned plea for patriotism stirred everyone's hearts.
The slogan "Make Rome Great Forever" resonated with senators.
In particular, Marcus constantly praised the work of the Senate in leading Rome thus far.
At the same time, he also did not forget to mention the contributions of the citizens who supported it.
It was an effective speech that won favor from both classes.
The applause and cheers lasted for a few minutes before the square was cleared.
Several senior senators stepped up to the podium to praise Marcus for his resolve and to thank him for a job well done.
Unaware of Marcus's true intentions, the senators gathered among themselves and began discussing the matter.
The tribunals were struggling to calm the citizens' clamor to legislate the reform plan immediately.
Surprisingly, the conclusion came soon after.
Consul Silanus stepped up to the podium and raised Marcus's hand with a triumphant gesture.
"Considering the aspirations of the citizens, we will implement the reforms as soon as possible!"
"Waaaaaah!"
"Long live the Senate! Long live Silanus!"
Citizens who didn't think that the conclusion would be reached so quickly stamped their feet and burst into cheers.
It's hard to believe that the Senate, which has been so conservative and stingy with reforms, would make a decision so quickly.
Silanus said the Senate is always on the side of the citizens and will prove it with future actions.
Some of the citizens who despised the Senate suddenly felt ashamed.
This is because they thought that the Senate was those who did not care about citizens and were busy taking power.
The citizens began to accept that Catilina's execution was inevitable.
It was all in the Senate's interest.
The reason why they simply accepted the reform was that some kind of agreement was actually reached behind the scenes.
It was a fact that everyone agreed that there was no time when reform was more urgent than now.
As previously stated, the first and second reasons lie in social consensus and more relaxed finances.
But it was the third reason that was most important.
The day before the rally, Cicero and Crassus, who Marcus had asked, fueled a sense of crisis among senators.
It just so happened that there was a very good case.
Pompeius, who was reorganizing his provinces, is ready to return home.
"With the return of Pompeius, our Senate is forced to make a choice. Whether to bow to the shining war hero and allow him to lead the state, or to break the momentum of the proud Pompeius, the time for choice is now at hand."
Cicero was privately close to Pompeius, but maintaining the order of the republic took precedence.
The other senators weren't far behind.
They felt their triumphant euphoria sink in when they thought of Pompeius returning from a massive military campaign.
To that extent, Pompeius' presence put tremendous pressure on the current Senate.
Who would be there to prevent him if he decided to wield Rome as he pleased?
The senators' faces darkened as they realized what was coming.
Crassus came up with a brilliant idea here.
"The authority and power of the Senate were sufficiently demonstrated in the execution of Catilina. But Pompeius has the full support of the people, not just authority and power. In order to counter him, the Senate also needs to gain popular support."
"How are we going to get that support, when the citizens are pretty much in a state of fear of the Senate right now?"
"It's a simple matter of fixing the problems Catilina caused, passing reforms, and the people will forget about his rebellion and praise the name of the Senate, because that's what people do."
"Well, maybe if we pass reforms now, we can divert the citizens' attention away from Pompeius."
"Yes. So I want you to come to tomorrow's meeting with an open mind. If you think you have something useful to say, make the effort to be welcoming. Rest assured, there will be no unreasonable arguments from what I have reviewed."
With the right amount of urgency and anticipation built up, it was only a matter of time before Marcus' proposal was accepted.
But the Senate wasn't about to rest on its hands and take pride in its accomplishments.
Reports were flying in that Pompeius' army had left the east and begun its return, just as Crassus and Cicero had warned.
The winds of change haven't stopped yet.
Whether this would grow into a full-blown storm or end in a calm breeze depended on Pompeius and the Senate's choices.