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Compounding Interest [Kala]
Posted: Tue Mar 29, 2022 7:04 pm
by Valentin
Glade 7, 122
Office of Imperial Revenue, Two Days Prior
Mr. Valentin sat alone in his office at the Office of Imperial Revenue, and it was all the company he wished to keep. His was a fairly spacious office, but not one of the perches generally sought by employees with seniority, tucked away as it was. The room was wide, windowless, far from any of the austere state building's main thoroughfares, and had only distant access to the lavatories. Though the office was large, Valentin kept it uncluttered, and decorated only by a single desk toy (a pendulum suspended by a wire, which slowly drew symbols in the bed of sand below it) and a personal blackboard, turned to face the little table he used for meetings.
Well, that and the portrait of the Emperor kept on the wall behind his desk. But that was regulation, not decoration.
Though the OIR attorney enjoyed his solitude, nothing good was ever eternal. At six in the afternoon, on the dot, the secretary he shared with two other attorneys and several auditors pushed his way in, large round spectacles bouncing alarmingly on his face.
"The files from the banks, Mr. Valentin." His secretary- Albright, was the name, not that Valentin ever used it- deposited a small stack of folders on Valentin's desk. That task done, he made his way over to Valentin's small corner table and took a seat, waiting for him to do a quick review.
These were files which managers at the various branches of the bank drew up whenever a transaction arose which might require Imperial scrutiny. The incentives were quite simple- if you filed your confidential reports with OIR, you couldn't be personally liable for anything which happened as a result of those transactions. If you overlooked such transactions, then the Imperial government might consider you... involved. The natural result of this policy was that many over-cautious managers filed entirely too many stupid reports, and so as Valentin separated them into piles of interest and non-interest, the latter grew faster than the former by far.
"Infrastructure loan- that's nothing. Textile mill- this is for that lawsuit they had to settle last month, nothing. Grant for foreign theater work- up to the Inquisition, none of my business. More hiring for airship guards? Divines, you'd think the damn affair wasn't hundreds of miles away behind a mountain range. Not our problem. Individual loans. All of these families are loyal, we can let them through. And finally... investment from a novel foreign factor."
"Should we waive that one?" OIR regulations required that new foreign investors be assigned an agent for monitoring and given an intake interview, but the interview itself was often pointless and annoying for all parties, so they were often cancelled at the last minute.
Valentin thought about it, but not for long. Given the unease throughout the north of the continent, foreign investment could suddenly become an issue of Imperial notice. If he dodged the welcome interview and the account somehow featured in a later incident, that would be it for his career. On the other hand, if a foreign account proved useful to his Imperial Majesty's government...
"No. Tell the bank to schedule them for their interview at the first available slot. And... when one of the nice conference rooms is available."
Central Bank of Gel'Grandal, Present
Valentin appeared outside the Central Bank (the interior was warded against slipspace travel, for obvious reasons) and let himself through the employee entrance, flashing his badge at the guard. He made his way through the bustling back halls, the bankers and clerks parting as they noticed the infamously surly OIR officer coming their way. Ordinarily, Valentin might have stopped to give the recoiling staff a bit of verbal abuse- but today, he had other things to do.
He reached the administration desk and confirmed his appointment, leaving instructions for the front. "When they arrive, send them back right away. I'll be in Room A7-C." Everybody else in the Central Bank called that meeting room the Gemütlichkeit, a highly-coveted spot usually reserved for appointments with extraordinary connections. (The suite for meetings with the truly powerful, of course, was quite beyond the reach of a middling OIR official) Still, nobody disputed Valentin's claim, since the man was infamously, tirelessly petty.
After a few more corridors- gods, Valentin missed Traversion already- he arrived at the chamber. It was large enough to comfortably seat a dozen businessmen around its central table, and decorated lavishly with gilt embossments and tiny marble pedestals displaying little treasures from the Central Bank's founders and investors, each bearing an explanatory placard. Above the central table was a dome built above a circular skylight, featuring a small mosaic of nude women dancing, with backgrounds meant to represent the change of the seasons.
Valentin took a moment to locate the room's small bar, pulling out a variety of spirits which his guests might be interested in and preparing glasses. Then he allowed himself to sink into one of the overstuffed chairs which gave the room its informal name, and waited for his appointment to arrive.
Re: Compounding Interest [Kala]
Posted: Tue Mar 29, 2022 8:45 pm
by Kala Leukos
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A central bank was a central bank, it seemed. Though she was considered a provincial in the court of Kalzasi, she was now better traveled than most. Of course, the structure was distinct from Kalzasi's, but their spirits were similar. These were the halls of financial power and they didn't feel so terribly different. Perhaps it was Avenna's influence; She was said to bless each and every coin minted by the Republic Bank, and everyone used their currency or bank notes symbolizing their currency. A coin was just a counting piece for potential energy, she supposed.
"Bless me, Avenna," she murmured as she walked up to a receptionist to seek guidance toward her meeting.
"Room A7-C," she repeated back, glancing in the direction pointed. She smiled. "Thank you."
The directions were good and she found the room with little difficulty. She let herself in quietly, eyes taking in the cozy room before landing on the man she was supposed to meet. She smiled despite herself, an understated reaction, but she was amused at his dark clothes only because she was dressed so similarly. In Kalzasi, she was more colorful; but here, she was dressed soberly, trying to seem more like the practiced financier. She had her slight height and few years to detract from that semblance, but she had proven something of a wunderkind. Under M. Bryony's tutelage, she had taken over her family's financials in Kalzasi and knew well enough what she was doing here, even if it was largely a cover.
"Guten Tag, Herr Valentin," she said, her Kathalan passable, although she only had a few phrases of it. "I hope you don't mind if we speak in Common or our conversation will be a difficult one." She smiled again, this one self-deprecating. Indicating the nearest armchair, she asked, "May I sit?"
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Re: Compounding Interest [Kala]
Posted: Wed Mar 30, 2022 10:20 pm
by Valentin
"Ah, no, please, it's the language of the world- and we must all, I suppose, live in the world."
Valentin did not stand as the investor entered; it was expected in the Imperium, but he wasn't one to waste energy on stupid gestures just because they were commonly done. Instead, he pulled open the small file he'd brought, which contained her relevant financials. They weren't staggering sums, but they weren't de minimus either- and frankly, he found the amount of money involved in such affairs to be the least interesting part.
"Absolutely, please sit. I picked this room out because of the chairs. Very old, well-worn, and padded to a fault. Can I offer you anything to drink? Wine? Spirits?" Valentin gestured at the polished wooden cabinet behind him and it unfolded, revealing a mirrored interior on which a small platform sporting bottles rose.
"Well, I'm pleased to hear that the bank gave you my name. They may also have explained my purpose; if so, I hope you'll forgive a bit of repetition. I am with the General Counsel of the Office of Imperial Revenue- we're the Imperium's auditors and accountants, keeping track of the flows of finance. One of the many services we provide is offering entry counseling and a liaison to foreign investors. That's me."
The man produced a small, simple badge with the OIR's sigil, laying it on the table.
"I'm sure that you've heard stories of the Imperium's inner workings, of the Inquisition and the earnest zeal with which they investigate and prosecute threats to this land. Those stories are true, but not altogether common. It's my job to help you understand the culture and opportunities of the land and avoid any kind of mistakes which could cause trouble down the line. Nobody who has followed my advice has ever come to any sort of criminal trouble thereafter."
This was true. Valentin's advice was generally offered unsolicited, and the follow-up visit was done by the Office of Special Counsel. There was no third visit.
"Well, let's not listen to me talk all morning. I have looked over your file, but I never quite trust paper to tell me the whole story- if you wouldn't mind, I'd love a quick introduction, and what you're hoping to get out of this visit."
Re: Compounding Interest [Kala]
Posted: Thu Mar 31, 2022 4:25 pm
by Kala Leukos
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"Ich lerne, aber..." she said, then smiled ruefully. "But my polite gesture is just that: a gesture. In the interest of expediency, speaking the language of the world would be best. She took the seat indicated, settling herself deftly and without pause. "If you are partaking, I will have whatever you have." Kala wasn't a party girl, but she did enjoy a fine libation from time to time.
She inspected his sigil, and responded by fishing her signet ring from a pocket. While she wore it proudly in Kalzasi, she didn't want to draw undue attention here in the Imperial capital. She set it down so he could examine the star sapphire and sigil of House Leukos. She nodded her understanding of his accreditation and function.
"Thank you, Mister Valentin. I am Kala Mizal, representing House Leukos' zaibatsu. House Leukos itself is a remote fiefdom in the Astralar Mountains of Karnor, owing fealty to Kalzasi. But it is remote from Kalzasi, and while that is its primary trading partner, the House is looking to diversify as Karnor continues to destabilize. While imports and exports are modest, they are controlled by the House itself. The documentation you have seen shows you how much we are looking to invest with seed funds, already deposited in the Gelerian central bank. The captain of the airship that brought me mentioned a young friend of his seeking investors, so while I am not married to the idea, it could be lucrative to have a Gelerian ship with a Kalzasern patron. In the event of an embargo or tariffs heavy enough to substantially diminish profits, alternate routes could be set up. But I am also open to your wisdom on the matter as this is your bailiwick and demesne."
Kala smiled again, happy to provide more specific answers if he had more specific questions, but that ought to have been enough general information to get the clockwork in his brain turning.
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Re: Compounding Interest [Kala]
Posted: Thu Mar 31, 2022 8:46 pm
by Valentin
"Wonderful!"
The man gestured at the tray of drinks, and a thin, golden bottle appeared in his hand. He poured two small glasses with care and concentration, pushing one across the table to his guest.
"This, I think, is not so well known. It has a flavor like bold Gewürztraminer, but is made only from flower nectar. Notes of peach, or perhaps lychee. There are mixers if you like, but I always recommend people try it straight, the first time." Valentin lifted the glass carefully to the light to apprise the liqueur's color, then takes a cautious sip. He smiled, enjoying the fruity flavors on the palate.
"Yes, I did check with the Imperial archives before our meeting- I must say, I'm impressed how little is recorded about House Leukos. They say that the eyes of the Imperium see all things, but I suppose it isn't said how much is subsequently recorded. I am sorry for the loss of your Shokaze, and for the suffering that appears inevitable now."
Valentin's condolences were short and not terribly moving, but they sounded sincere enough. For all that he had little empathy for individuals, he did see himself as a public servant- to wit, the wars and machinations of the mighty were mostly obnoxious obstacles to the achievement of efficient administration. A dead king was a tragedy not because of the king, but because of the numbers of citizens who would inevitably follow their liege.
"As for my advice, and keep in mind that I am not a fiduciary, I feel that there is an obvious trap in the industries of war." Valentin produced a piece of paper with numbers on it, sliding it towards Kala. "You can see here on the public finance releases that their stocks are rising in anticipation of war in Karnor, on the thought that Zaichaer or its allies might come looking to buy or borrow weapons from the Imperium. I couldn't guess at the Grand Marshal's mind, but any money from Karnor which flows to any of these industries is going to attract undue attention for obvious reasons."
Truthfully, Valentin hoped that the Imperium would stay out of Karnor. He'd looked at the numbers before, and nobody seemed to be able to make them add up to anything other than losses for no real political benefit. Worse, the atheist crusaders in Zaichaer might be able to spread their deplorable maladministration further.
"That said, those ventures here in the Imperium which provide services in times of war do, naturally, stand to benefit. I would give due consideration to such industries as do not involve the direct development or production of weapons, but are necessary to the national defense and administration. Shipping, now, that's a fine example. If you're talking about freight on an airship, that's a wholly sensible business venture, though you'll want to secure a factor here in the capital who you can trust absolutely in the event of an inspection. The numbers are there for sea freight too, yet..." It would be technically illegal to talk about any of the alarming news out of the foreign office about the pirates. "I have some concerns about the safety of the ocean liners, these days."
Re: Compounding Interest [Kala]
Posted: Thu Mar 31, 2022 9:10 pm
by Kala Leukos
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"Thank you," she said, and took a tiny sip of the bold drink. "Ah, how sweet. Thank you." She smiled and set it down with the intention to drink more when more of the business had developed. Kala could only nod sadly regarding their murdered Shokaze; he seemed sincere, but this was hardly the time to describe the carnage at the reception, the fear as their chemical weapons ate through magic, and the pain of the injured and dying as she attempted triage in the aftermath. Perhaps he would sense what was left unsaid, but she wouldn't taint the business proceedings with undue emotion. This was a time for clear and logical thinking.
Kala wouldn't become a war profiteer, but she kept her morality out of the conversation. She listened to his advice and was pleased that his initial evaluation lined up with what she had hoped to hear.
"Starfall is landlocked, so we have never put much stock in seafaring, but if the risks change enough to make a calculated investment, I would be pleased to know it. And we currently have an extra factor, who might be willing to relocate. Otherwise, she could come long enough to hire one if I cannot find one while I am here present."
Bryony might actually enjoy the change of scenery, especially if it meant being out of the line of fire should Zaichaer's fleet come calling.
"I will interview the would-be airship captain, then, to see if he seems dependable. If he flies a Gelerian flag, he ought to be safe from Zaichaeri aggression. I would rather nobody be injured in the conflict, but especially not citizens from an uninvolved nation."
Of course, she had suspicions that the Imperium was quite involved, but it was not her place to cast aspersions.
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Re: Compounding Interest [Kala]
Posted: Sat Apr 02, 2022 1:06 am
by Valentin
"I am delighted to hear that you have put so much thought into this. Ich habe die Nase voll of investors who come in expecting to throw money around and make safe profits without any consideration."
Valentin didn't elaborate, but the derisive intent transcended all language barriers. He produced a bottle of bubbling golden wine and filled a small fluted glass with it, passing it across the table. "Try this as a mixer. Very simple, but it blends the sweetness in a pleasing way."
Shipping was a very solid industry, to Valentin's mind. Not only could one grow rich on it, but it offered many opportunities to ingratiate oneself with the wealthy and powerful in a way which could transcend the borders of nations. Of course, this also tended to suggest to unwise investors that the regulations of the Imperium had also been transcended. This belief was not correct.
"Good. Now, then, my office keeps track of the financial transactions across the Imperium, and indeed, across Ailizane. We will be happy to answer any questions your clerks may have regarding the forms of their reports; but I warn you that the Imperium takes such matters much more seriously than other lands. Failure to report transactions, or anything which could be regarded as trespass upon the Imperial Mandate, are regularly and seriously censured."
His philosophy was quite simple. The Imperium- the world at large, too, but foremost the Imperium- was like a mechanism of cogs and wheels, with each person bound to the movement of the whole by different chains and bindings. The more powerful and wealthy had greater range of movement, perhaps, but it was nothing more than a longer leash. Ultimately, nobody was any freer than the guards bound to police the Gash; it was simply that their leashes were shortest and most direct of all.
In all the world, only one person could ever be free, and every other cog and wheel turned at their whim.
"Now then, have you any questions for me regarding the Imperium or these financial affairs? I can promise you my answers will be completely candid. That is, I'll tell you at once if I'm not going to answer."
Re: Compounding Interest [Kala]
Posted: Tue Apr 05, 2022 5:28 pm
by Kala Leukos
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While Kala didn't catch all of that phrase of Kathalan, she could figure out the words she missed from context and his tone. She smiled.
"There is no investment without risk," she opined quietly. After watching him prepare the drink, she tested it, making a pleased sound. "Sehr gut."
The young lady listened to him spiel off his knowledge of the socioeconomic milieu. She was confident in what she knew, but humble enough to learn where she could as well. Bureaucrats could betimes be boring, but he clearly knew his business and she was pleased to absorb what she could.
"I'll appreciate your candor," she said with another small smile. Taking a long, slow breath to gather her thoughts, she finally replied. "Two things: first, I would like to know what protections our factor might have in Gel'Grandal should the Imperium side with Zaichaer in any upcoming conflict; second, there is a similar drink to this from the mountains near my home and I would like to send you a bottle, so I would like to know whether you would be able to accept that or whether it would be seen as a bribe."
She had to know that Bryony wouldn't be summarily incarcerated or executed if the Imperial throne decided Kalzasi was an enemy. As for the gift, she merely wanted to share something with him as he had shared a new experience with her, but she didn't want to get anyone in trouble with the Imperial government, whether herself, her business associates, or an Imperial citizen.
When in Gel'Grandal, do as its citizens. She would toe the line, respect the laws and rules as best she could. Were he to find himself in Kalzasi, she hoped he would reciprocate the courtesy.
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Re: Compounding Interest [Kala]
Posted: Thu Apr 14, 2022 11:23 pm
by Valentin
"Good questions. I'll answer them backwards. As a representative of His Imperial Majesty, I must of course be immune to corruption, and so I would be required to turn in any gift of significant value."
He placed emphasis on the last two words. This was, in a way, an extremely important thing for a savvy investor to learn- there was no bribery in his office, none whatsoever. Minor gifts to show your appreciation for the hardworking officials who had diligently worked to permit your own successes? Perfectly reasonable. And who decided what constituted a significant value? Why, the appraisals were provided by the gift-giver. Thus could minor gifts be properly and innocently provided without endangering anyone involved.
"So if you happen to come across such a bottle which would be a suitable minor gift, I would, of course, be delighted." That actually went a little far, tantamount to requesting a bribe, but this was for educational purposes. And he knew the auditors well enough to be sure that they would not object.
"Now, for your first query..."
There were really two answers, and one had to be careful to mix them correctly.
"I am quite knowledgeable regarding the laws of the Imperium, and I tell you honestly that they are the envy of any land. Every case brought in the civil court is granted due regard and an established legal process which will not leave your employee disadvantaged. Moreover-" Valentin was in a very good mood today. "I will personally guarantee your employee's bailment in the unlikely event that they should run afoul of some unusual procedure.
"But."
"I am among those lesser servants of the civil law. Those who serve the Imperial Mandate most directly-" He did not say 'Inquisitors'; Kala was not stupid, "-they hold direct and plenary authority from the throne. Of course, they are wise and discreet, and it is doubtful that any ordinary brokerage will command special attention from them... but if your employee should act so unwisely as to offend the Imperial Mandate directly, then there are no guarantees in this world or any other."
Re: Compounding Interest [Kala]
Posted: Sun Apr 17, 2022 6:57 pm
by Kala Leukos
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Once more, Kala smiled. It seemed they were on the same page, which was a relief. She took a thoughtful sip of the libation.
"When I depart Gel'Grandal, 'tis likely my replacement will be one M. Bryony who has been in service to House Leukos for some time. She is a factor in Kalzasi, but might appreciate a change of scenery, especially with the tension in the air. I will send her with a bottle for you and several bottles for her; should you meet with her, she might offer you some if it is to your liking. Much as you have done for me here." Her hand indicated the bottle; there was a grace to her movements belying her dance training.
She laughed quietly. "Perhaps it will become a lucrative export to the Imperium. I thank you for your generosity with regard to her wellbeing. I don't anticipate a need, but the insurance will ease any anxieties."
If the Inquisition began to look into House Leukos, she would be surprised, but better safe than sorry, especially when someone's life was on the line.
"So... broadly speaking, I will meet with the would-be captain soon, as well as exploring other options. Whatever contracts are signed will be filed with the proper authorities, and I will set up whatever is required to prepare the way for our factor's arrival. Are there any hidden pitfalls I should avoid or pearls of wisdom you would like to impart?"
Kala was young and people often underestimated her; Master Valentin seemed to be according her whatever respect a more seasoned financier might enjoy, and she appreciated that. Perhaps here her youth would be to her advantage: some would seek to help her; those who sought to leverage her naivete against her would find her difficult prey.
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