"But we still need to decide how we are going to guarantee the rights of ordinary workers regarding their knowledge and breathing methods," Orazio said as he looked toward Gustaw. He had already promised to listen to Gustaw's opinion on this particular subject, so he wanted to hear what the other great houses thought before moving forward. The problem was becoming increasingly important as factions gained access to knowledge that could dramatically improve a person's abilities. Without proper regulations, that knowledge could easily become another method of controlling workers.
"Yes, I think we can all agree that people who deliberately withhold knowledge just so they can exploit the people working for them are being stupid and short-sighted," Gustaw said with obvious disgust. "There is a difference between protecting a family's secrets and deliberately keeping someone ignorant so that they remain dependent on you." He folded his arms as he considered the problem. "If we allow that kind of behavior to become normal, then we are going to create a society where advancement depends entirely on who you happen to work for."
"Yes, but what else can you expect from companies?" Samonte asked with a dry smile. "Their entire purpose is to generate wealth, and they will naturally prioritize that goal over everything else unless someone forces them to consider the consequences." His statement was blunt, but no one in the room could honestly say that it was entirely wrong. Companies had already demonstrated that they would exploit any loophole that allowed them to increase their profits.
"That is precisely why our bank waited a hundred years before accepting new clients," Samonte continued. "We wanted enough time to identify the companies that were fundamentally unstable or simply suicidal." Opening an account with their bank came with a long list of restrictions, but most businesses were willing to accept them because being a client was itself a mark of reliability. A company trusted by their bank was generally viewed as financially stable, which carried enormous weight in Europe.
Over the centuries, Europe had gradually developed a culture that valued financial stability above rapid growth. That was one of the reasons startups had struggled so much during the previous hundred years, because investors were often more interested in established businesses than uncertain new ventures. Samonte was still working on finding ways to correct that imbalance, but the system had nevertheless created one of the most stable financial markets on Earth. China was another major financial power, but moving money out of the country remained difficult, so anyone searching for reliable international investments generally looked toward Europe.
"Yes, I agree that we can already see the problems this system could create," Gustaw said. "So my suggestion is that any knowledge a faction wants to safeguard must be given a clearly defined price." He looked toward Orazio before continuing. "We can use the merit points we discussed earlier to establish that value." That would prevent factions from simply changing the price whenever it became convenient for them.
"They should also be required to provide a breathing method applicable to their faction to every person who joins," Gustaw continued. "If they possess a better breathing method, they are free to restrict access to it, provided they are not using that superior technique as leverage over their workers." He frowned slightly after saying it, clearly dissatisfied with his own wording. "There needs to be a distinction between protecting something genuinely special and forcing people to remain obedient because they fear losing access to the only decent breathing method available."
"Those are reasonable conditions," Samonte said. "They are also simple enough that ordinary people should be able to understand them." He paused before raising one finger. "However, I think we need to add another restriction, because there is an obvious loophole." His expression became more serious as he prepared to explain it.
"The prices of items on a faction's merit exchange list should not be allowed to increase for at least two years," Samonte said. "After that period, increases should be limited to a particular percentage." He leaned forward slightly. "Otherwise, a faction could technically obey every rule we create while still making the rewards practically impossible to obtain."
"We should also establish a maximum reasonable amount of work required to obtain any listed reward," Samonte continued. "Perhaps we could say that no reward may be priced beyond what an ordinary member could reasonably obtain by working for ten years under normal conditions." He knew that even this would need refinement, but the principle was important. "Otherwise, someone could be told that their desired breathing technique costs so much merit that they would need a century of ordinary work to afford it."
"That is a good suggestion," Gustaw said before looking at Samonte with some curiosity. "But why are you speaking so much today?" He raised an eyebrow. "That is not normal for your family." Everyone knew that Samonte's family preferred to listen and observe, only speaking when they believed something had gone seriously wrong. The sudden amount of input from him suggested that something else was motivating his unusual enthusiasm.
"Yes, that is true," Samonte admitted. "But my uncle is currently the head of the UCB, and he is going to be extremely interested in the merit exchange system Orazio proposed." His normally reserved expression became noticeably more animated. "The bank has a problem securing enough stable funds for investment, because ordinary loans have become far less important than they used to be."
The arrival of the System had disrupted one of the oldest businesses in banking. People could now rely on the System for many things that banks had previously provided, meaning that traditional lending was no longer as profitable or necessary as it had once been. The merit system, however, created something different. It could generate enormous pools of legally protected reserves that organizations were unlikely to withdraw immediately.
"For once, my uncle probably won't complain about a new financial development," Samonte said with a faint smile. "Loans used to be an extremely lucrative business for us, but that source of income has been heavily disrupted." He tapped his fingers against the table. "A merit-backed reserve system could give the banks another enormous source of stable capital without requiring ordinary citizens to take on unnecessary debt."
"That would certainly explain your enthusiasm," Gustaw said.
"But what exactly is there to invest in nowadays?" Gustaw asked. His question was genuine, because the economic situation had changed dramatically since mana appeared. Every powerful faction in the room was currently pouring money into the cities they had established, leaving little available capital for outside investments. Their priorities had become increasingly focused on rebuilding their own territories and preparing them for the future.
The great houses had historically established their settlements around strategic locations, particularly important trade routes and chokepoints. Meanwhile, people naturally gathered around the trade families because of the goods and specialized services those families provided. Those cities had once been directly controlled by the great houses, but the rise of centralized nation-states had forced them to surrender much of that authority. Now that the old factions were becoming powerful again, everyone wanted to regain as much influence over their historical territories as possible.
"Well, that is a good question," Samonte replied. "For the most part, we are buying land." He explained that every major faction preferred borrowing directly from the System because it allowed them to retain complete control over their projects. That left the banks with relatively few conventional investments that offered both safety and worthwhile returns.
"So the bank has been buying land?" Karl asked, suddenly paying much closer attention.
"Yes."
"That is interesting."
Karl's expression changed as the information settled in. There had been a mystery surrounding some of the large land purchases in their city, particularly because the land had not originally been considered particularly valuable. Now that he knew the UCB had been behind many of those purchases, the situation suddenly made much more sense. The bank had the resources to hold the land for decades, and its regulations meant that there was little danger of the property being used recklessly.
"That is great news," Karl said. "However, I want confirmation that our family gets the first opportunity to purchase the land whenever the bank decides to sell." His tone became noticeably colder as he looked directly toward Samonte. "I assume you understand why that matters to us."
"I thought that was implied," Samonte replied.
Karl did not smile.
"I would prefer to have it written down."
Samonte immediately understood what Karl meant. The bank might have purchased the land, but the Sonnenbergs had a vested interest in maintaining control over the development of their city. If the bank ever decided to sell those properties, allowing an unrelated faction to purchase them could create complications that nobody wanted. A simple agreement giving the Sonnenbergs the first opportunity to buy the land would prevent that problem before it started.
"I suppose we can arrange that," Samonte said.
"Good."
Karl relaxed slightly before checking the messages that had accumulated during the meeting. He had been ignoring them for the sake of the discussion, but one particular message had caught his attention earlier. Now that the current topic had reached a natural stopping point, he decided it was time to bring it up.
"Actually, I received a message that I need to pass along to all of you," Karl said casually.
The room immediately changed.
Every hologram seemed to straighten at once, and if they had been physically present, Karl suspected he would have been able to smell the sudden nervous sweat. The message had come from an unexpected source, and that alone was enough to make everyone pay attention. Karl opened the message and read it one more time before explaining its contents.
"China has apparently not been particularly pleased with our actions in the media over the last few years," Karl said. "They have suggested that we pass these proposals along to them as a gesture of goodwill." He looked around the room. "That would allow them to claim that they are actively considering similar reforms while also giving us an opportunity to reduce some of the diplomatic tension between Europe and China."