At the end of a long and demanding month of work, the much-anticipated day for the sale of government bonds on the stock exchange finally arrived. Arthur woke up earlier than usual, eager to ensure he would be present at the opening of the market. Knowing he had little time to spare, he skipped his regular morning exercise routine, took a quick shower, and dressed in clean yet modest clothing that would allow him to blend in among the crowd. After a hurried breakfast in his chambers, he left the palace accompanied by his two guards.
The journey to the stock exchange began at a brisk pace. Upon arriving in the city, they secured their horses at a stable and continued on foot toward Stone Street, a prominent thoroughfare known for its tall stone buildings that towered above the surrounding urban landscape. As Arthur and his guards approached the street, he was struck by the sight of a large, bustling crowd gathered outside the exchange. Observing the well-dressed individuals in the crowd, he immediately recognized them as wealthy merchants, industrialists, and investors, and he couldn't help but smile. The high level of interest in the bond sale was a clear sign of success.
The moment they reached the imposing building where the bonds would be sold, the grand doors opened precisely at the market's opening hour. The eager crowd began pouring inside, and Arthur, blending in seamlessly, joined them. Once inside, he watched the transaction process with keen interest. At the head of the queue, individuals handed over their money to officials seated behind large wooden desks. In return, they received certificates bearing the words "Pendralis Empire Debt Bond" in bold, ornate lettering. Arthur smiled with pride as he noticed the security features he had personally insisted on—serial numbers, watermarks, and other details designed to prevent forgery.
After observing the bond sales for a while, Arthur decided to explore other parts of the stock exchange. He wandered to the sections where shares of private companies were being traded. Large blackboards dominated these areas, listing the prices and quantities of shares available for purchase. The names of companies, many of which Arthur recognized as leaders in manufacturing and industrial production, were written prominently. He noted with satisfaction that companies involved in steam-powered technology and mass production—industries he had worked hard to nurture—were thriving. The growing number of factories and enterprises in Pendralis was a testament to the empire's rapid industrialization, and Arthur felt a deep sense of accomplishment.
While studying the boards, Arthur noticed a stock exchange official, dressed in the now-fashionable black suit, approach one of the blackboards. The man began adjusting the prices of certain company shares, erasing old figures and replacing them with new, lower prices. The falling share prices caught Arthur's attention, prompting him to investigate further. He soon realized that the companies experiencing declining stock values were primarily involved in importing raw materials and exporting finished goods—businesses heavily reliant on maritime trade.
As Arthur analyzed the situation, he overheard a conversation between two well-dressed men standing nearby. One appeared to be in his mid-twenties, while the other was middle-aged.
"The stocks of trading companies have dropped again," the younger man remarked, frustration evident in his tone. "That makes it the third time this week."
The older man nodded grimly. "Yes, it's due to Aragorn's new tariffs on Pendralis ships passing through the Maraz Strait and the increasing pirate attacks on Pendralis-flagged vessels in the White Sea. Over the past few months, the stolen goods and rising costs have been cutting deeply into profits. Naturally, that's reflected in the stock prices."
The younger man sighed. "If this trend continues, it might start affecting the manufacturing companies as well. After all, if they can't find foreign buyers for their goods, they'll face significant trouble."
"I hope the government intervenes before it gets to that point," the older man replied.
Arthur listened intently, his expression growing serious. The conversation confirmed his own concerns: the situation was escalating and could lead to severe economic consequences if left unchecked. He knew that failing to act could result in reduced production, widespread panic in the markets, and even deflation—a threat he was determined to avoid. Arthur understood that while inflation could be mitigated through fiscal restraint, deflation was far harder to counter and often led to prolonged economic crises.
After spending a little more time exploring the stock exchange, Arthur left and began wandering through the city. As he walked, he reflected on a recent report indicating a significant drop in the number of illness cases, thanks to the city's improved sanitation infrastructure. Clean water systems, sewage networks, and the establishment of municipal waste collection services had all contributed to better public health. Arthur smiled to himself, proud of the tangible improvements in the quality of life for his people.
Eventually, Arthur returned to the palace. Once in his chambers, he changed into more comfortable clothing and sat at his desk. His mind returned to the issues he had witnessed at the stock exchange. If the trade companies continued to suffer losses due to the increased tariffs and pirate activity, the empire's exports would dwindle, leading to reduced production, widespread layoffs, and economic instability. The implications were far-reaching, and Arthur knew that immediate action was necessary.
He began brainstorming solutions. Diplomacy seemed like the most viable first step. He considered sending emissaries to Aragorn to negotiate a reduction in tariffs and demand stronger efforts to combat piracy in the White Sea. Arthur also realized that Aragorn's ongoing war with the Kingdom of Fasi had placed significant financial strain on their economy. It was likely that Aragorn had introduced the tariffs and turned a blind eye to piracy as a way to alleviate their economic burden. Arthur contemplated leveraging Pendralis's position as a key supplier of steel weapons to Aragorn, imposing an embargo as a form of pressure. However, he was uncertain whether this would be enough to compel Aragorn to act.
A more drastic option also came to mind: the military occupation of the Maraz Strait to secure Pendralis's trade routes. But Arthur knew this would require time. The modernization of the army, the production of advanced ships and weapons, and the training of soldiers were all ongoing projects that couldn't be rushed. For now, he decided, diplomatic measures would have to suffice.
Determined to act, Arthur left his chambers and headed to his father's study. Inside, he found King Cedric in conversation with Henry, the Minister of Finance.
"Ah, Arthur!" King Cedric greeted him warmly. "I hear the government bonds were a resounding success."
Arthur smiled. "Yes, Father. I was at the stock exchange today to observe the process firsthand. The market showed a strong appetite for the bonds."
Henry interjected, his tone approving. "Your Highness, the bonds were completely sold out within a day. This ensures we have the necessary funds for the army's modernization. I must say, your idea of using the media to inform the public in advance played a crucial role in this success."
Arthur acknowledged the compliment with a nod. "Thank you, Lord Henry. However, I came here to discuss a pressing issue I observed at the stock exchange today. It's something we need to address immediately."
King Cedric's expression turned serious. "Go on."
Arthur explained the situation with the declining stock prices of trade companies and outlined the potential economic consequences if the issue wasn't resolved. Henry confirmed that the government had been receiving complaints from affected companies, voicing their growing concerns.
Arthur proposed a multi-pronged approach. "We should send emissaries to Aragorn to negotiate a reduction in tariffs and stronger measures against piracy. Simultaneously, we need to explore new trade opportunities with the Franki Kingdom and the northern kingdoms to diversify our markets. Additionally, until the modernization of our fleet is complete, we can retrofit our existing sailing warships to escort trade convoys and protect them from pirates."
King Cedric nodded thoughtfully. "You're right. We cannot allow this issue to escalate further. I will send envoys to Aragorn and instruct the navy to begin protecting our trade routes beyond the White Sea. We'll also explore new trade agreements with other nations."
After discussing the details further, Arthur returned to his chambers. He poured himself a glass of wine and sat on the terrace, contemplating the diplomatic challenges ahead. He knew that if negotiations with Aragorn failed, the likelihood of war would increase, and Pendralis would need to be ready. With the funds from the bond sale secured, Arthur resolved to accelerate the military's modernization.
Smiling wryly, he thought to himself, I may have to delay the grand exploration fleet for now. Those ships might have a more immediate mission to fulfill.