Post by Annasiel on Jan 15, 2016 5:14:38 GMT
The Shringallic Standard
The economy of Etirath has its roots in a now antiquated barter system. Long ago, worth was determined by the two parties involved in trades, and the exchange was between goods and services. Modern trade still allows for bartering, but it is primarily based on a powerful, sturdy backing: The Shringallic Standard.
Gregor Shringal in his prime.
Originally pioneered by the famous Dwarven economist Gregor Shringal, the Shringallic Standard has become a necessary tool for mediating both international and internal commerce. It defines the worth of various goods and services by kilos of gold, the most common material for national coinage. Even in countries that used other metals or paper notes, gold could be used as an intermediary element of exchange.
The conversion tables are written out in Shringal's Ledger, affectionately referred to as the Banker's Bible, which can be found in every official financial institution around the world. Whenever a good or service is brought up that isn't listed in Shringal's Ledger, the producer must go to a prospector to determine the worth of their product. As such, new copies of the Banker's Bible are released yearly, sometimes even monthly, just to keep up with human ingenuity.
Obviously, there are some countries that choose not to adhere to the Shringallic Standard, and they are considered separately from the trade allegiance of the Shringallic compliant nations. Trade with them is carefully determined by whatever financial advising bodies both parties have.
Etirathian Currency
Shringal was an Etirathian himself, evidenced by his love of gold; Etirath, for as long as currency has been used, minted selectively gold coinage. The location of the city allowed for easy access to the metal, and the skilled magical craftsmen made minting the currency even easier. The coins, referred to as, unsurprisingly, gold, were a popular favorite for centuries. It was only when the Lady Theolandra came into power that the gold coin was phased out in favor of a more intricate currency.
Archaic Etirathian currency - The gold coin.
After the fall of Lord Sayre, a great purge was enacted. Many cultural icons, considered tainted by his influence, were removed. There is a great debate among historians whether such a strong motion was justified, but the impact remains an important effect on modern Etirath. Removing the pure gold coins, Lady Theolandra chose instead to mint a three coin system using silver coins with a gold rim. Each of the three coins were equal in size and weight, distinguishable only by a magically manufactured gem in their center. This represented Etirath's deviation from the direct Shringallic Standard, moving towards using gold as an intermediary.
The first of the coins, marked by a azure stone, equals one full unit of the original gold coin. Generally, these coins are referred to instinctively as 'gold', though they are officially called Whole Parts, abbreviated WP.
The second coin, which has a forest green stone in its center, equals one half of a gold coin. They are named Half Parts, or HP, but are colloquially called 'halvers' or 'halfs'.
The final coin holds a bright red stone, and is equal to one quarter the worth of a gold coin. They are called Quarter Parts, or QP. Generally, the public calls them 'quarters'.
All coins minted by the Official Etirath Treasury, a division under of the Surrogate of Udel, are protected with an enchantment that prevents magical manipulation or duplication. Amusingly, this is one of the most powerful protection spells in Etirath, rivaling even those of the sacred spring.
The First Bank of Etirath
The First Bank of Etirath is a misleading name, because it is the only bank of Etirath. Many black market loan and marketing businesses exist, but these are illegal under the Surrogate of Udel's decrees. Founded by Shringal himself, The First Bank of Etirath, generally just called the Bank, is a fortress. It is built to last a siege, complete with militia guards and defensive measures in case of invasion. Much of its girth runs underground. Vaults and secret passages built into the preexisting catacombs house the wealth of Etirath's government, and its most prominent citizens. The less wealthy tend to hold their savings in safety deposit boxes on the surface levels.
The First Bank of Etirath in all its glory.
The First Bank tends to present better rates to citizens than outsiders, providing incentive over international banks. Loans are generally given with a ~3% APR to citizens and a ~10% APR to foreigners, compounded monthly and varying based on actual credit. Investments are few and far between, considering Etirath's small business market, though a standard account offers .03% monthly linear interest, and a 'premium' account offers .06% monthly linear interest. The first account requires 1 WP deposit to open, and the second 100 WP. Extractions from a standard account cost 1 QP, while extractions from a premium are free. Deposits for both accounts are free.
Revolting on loans or account debit payments allows for two monthly grace periods, before collection officials come to take what is owed. The Bank has a shady reputation in this respect, rumored to call on hit men and mafia groups to do their bidding. Repossession is a real possibility, depending on the terms of the contract the teller initiates.
The First Bank is currently under the supervision of Treasury Advisor and Chancellor Hugo Tweed, who reports directly to Surrogate Beel himself. Tweed has a reputation for ruthlessness. Being the adopted son of the late Shringal, the frugal dwarf's stingy nature and greed were imparted on him. There are whispers that Tweed poisoned Shringal, and forged a will declaring him the sole inheritor of the dwarf's properties and titles. Investigations into these allegations have been conducted, but always turned up cold.
Treasury Advisor and Chancellor Hugo Tweed, adopted son of the late Gregor Shringal.
The Bank and Shringallic Standard's impact on Etirath's economy have been tremendous, allowing for a growth and prosperity never seen before. However, all progress comes with cost, and corruption has grown tremendously with Etirath's capital. Embezzlement, larceny, and money laundering have all increased following Shringal's institutions.
The economy of Etirath has its roots in a now antiquated barter system. Long ago, worth was determined by the two parties involved in trades, and the exchange was between goods and services. Modern trade still allows for bartering, but it is primarily based on a powerful, sturdy backing: The Shringallic Standard.
Gregor Shringal in his prime.
Originally pioneered by the famous Dwarven economist Gregor Shringal, the Shringallic Standard has become a necessary tool for mediating both international and internal commerce. It defines the worth of various goods and services by kilos of gold, the most common material for national coinage. Even in countries that used other metals or paper notes, gold could be used as an intermediary element of exchange.
The conversion tables are written out in Shringal's Ledger, affectionately referred to as the Banker's Bible, which can be found in every official financial institution around the world. Whenever a good or service is brought up that isn't listed in Shringal's Ledger, the producer must go to a prospector to determine the worth of their product. As such, new copies of the Banker's Bible are released yearly, sometimes even monthly, just to keep up with human ingenuity.
Obviously, there are some countries that choose not to adhere to the Shringallic Standard, and they are considered separately from the trade allegiance of the Shringallic compliant nations. Trade with them is carefully determined by whatever financial advising bodies both parties have.
Etirathian Currency
Shringal was an Etirathian himself, evidenced by his love of gold; Etirath, for as long as currency has been used, minted selectively gold coinage. The location of the city allowed for easy access to the metal, and the skilled magical craftsmen made minting the currency even easier. The coins, referred to as, unsurprisingly, gold, were a popular favorite for centuries. It was only when the Lady Theolandra came into power that the gold coin was phased out in favor of a more intricate currency.
Archaic Etirathian currency - The gold coin.
After the fall of Lord Sayre, a great purge was enacted. Many cultural icons, considered tainted by his influence, were removed. There is a great debate among historians whether such a strong motion was justified, but the impact remains an important effect on modern Etirath. Removing the pure gold coins, Lady Theolandra chose instead to mint a three coin system using silver coins with a gold rim. Each of the three coins were equal in size and weight, distinguishable only by a magically manufactured gem in their center. This represented Etirath's deviation from the direct Shringallic Standard, moving towards using gold as an intermediary.
The first of the coins, marked by a azure stone, equals one full unit of the original gold coin. Generally, these coins are referred to instinctively as 'gold', though they are officially called Whole Parts, abbreviated WP.
The second coin, which has a forest green stone in its center, equals one half of a gold coin. They are named Half Parts, or HP, but are colloquially called 'halvers' or 'halfs'.
The final coin holds a bright red stone, and is equal to one quarter the worth of a gold coin. They are called Quarter Parts, or QP. Generally, the public calls them 'quarters'.
All coins minted by the Official Etirath Treasury, a division under of the Surrogate of Udel, are protected with an enchantment that prevents magical manipulation or duplication. Amusingly, this is one of the most powerful protection spells in Etirath, rivaling even those of the sacred spring.
The First Bank of Etirath
The First Bank of Etirath is a misleading name, because it is the only bank of Etirath. Many black market loan and marketing businesses exist, but these are illegal under the Surrogate of Udel's decrees. Founded by Shringal himself, The First Bank of Etirath, generally just called the Bank, is a fortress. It is built to last a siege, complete with militia guards and defensive measures in case of invasion. Much of its girth runs underground. Vaults and secret passages built into the preexisting catacombs house the wealth of Etirath's government, and its most prominent citizens. The less wealthy tend to hold their savings in safety deposit boxes on the surface levels.
The First Bank of Etirath in all its glory.
The First Bank tends to present better rates to citizens than outsiders, providing incentive over international banks. Loans are generally given with a ~3% APR to citizens and a ~10% APR to foreigners, compounded monthly and varying based on actual credit. Investments are few and far between, considering Etirath's small business market, though a standard account offers .03% monthly linear interest, and a 'premium' account offers .06% monthly linear interest. The first account requires 1 WP deposit to open, and the second 100 WP. Extractions from a standard account cost 1 QP, while extractions from a premium are free. Deposits for both accounts are free.
Revolting on loans or account debit payments allows for two monthly grace periods, before collection officials come to take what is owed. The Bank has a shady reputation in this respect, rumored to call on hit men and mafia groups to do their bidding. Repossession is a real possibility, depending on the terms of the contract the teller initiates.
The First Bank is currently under the supervision of Treasury Advisor and Chancellor Hugo Tweed, who reports directly to Surrogate Beel himself. Tweed has a reputation for ruthlessness. Being the adopted son of the late Shringal, the frugal dwarf's stingy nature and greed were imparted on him. There are whispers that Tweed poisoned Shringal, and forged a will declaring him the sole inheritor of the dwarf's properties and titles. Investigations into these allegations have been conducted, but always turned up cold.
Treasury Advisor and Chancellor Hugo Tweed, adopted son of the late Gregor Shringal.
The Bank and Shringallic Standard's impact on Etirath's economy have been tremendous, allowing for a growth and prosperity never seen before. However, all progress comes with cost, and corruption has grown tremendously with Etirath's capital. Embezzlement, larceny, and money laundering have all increased following Shringal's institutions.