Money in the Empire - Further Notes.
Money in Imperial Society
In the Empire, professions that make money without producing anything are considered almost as low as those that deal with dead things. It is illegal to lend money at interest, so those few who make a living as moneylenders charge a flat fee for their services instead. It is more common for someone in need of a loan to petition their local Magister Administrator, who has the duty of looking after his charges. If he considers the cause just, the Magister will loan his charge the money, and then petition his immediate superior for a loan to temporarily cover his losses. There then follows a chain of borrowing right up to the Imperial Treasury, that serves as a de facto central bank. In times of recession it is not uncommon for the Empire to recharge its flagging fortunes by invading a wealthy neighbour. Repayment of the debt is more usually called in the form of services or produce rather than in money.
Merchants League and the Banking Clans
The Merchant's League has overhauled much of the Imperial model. It is no longer considered shameful to make money as a middleman - in Llaza a man's worth is measured more by his wealth than by his fulfillment of social obligations. Moneylending with interest is legal, and there are some Merchant Clans whose sole trade is in moneylending and currency trade. Insurance is in its infancy. If a merchant clan has assets evaluated at a certain amount, they are permitted to underwrite risky ventures for fellow League members. Stocks and shares in various League ventures are bought and sold, but again only to permitted clans. Occasionally the League raises capital by selling League Bonds, giving the owner certain voting rights in government decisions (although given the number of bonds out there, a clan would need to own a lot to make any difference).
Property Ownership and Fiscal Bondsman
Although Imperial Law says that no man may own another, and that even the lowliest peasant is free to move where he or she wishes, in reality high land prices mean that most farmers have to remain where they are to make ends meet. Worse, wealthy families have bought up arable land that they then rent out to tenant farmers at exorbitant rates. The tenants spend most of their earnings paying off the rent, and so have no spare capital to start anew.
There is a new and insidious practice on the rise where a debtor may pay off his debts by effectively signing himself as a slave (known legally as a "fiscal bondsman") to his debtee for a period depending upon the amount owed. Since this practice is new, there is no established time per cost period so the potential bondsman is at the mercy of his debtor. Moves are afoot to have this practice declared illegal, but as yet the motion is blocked by inept bureaucrats and wealthy groups with an interest in allowing it to continue.