Foolish?
Who are you calling foolish!
The powerful figures from various industries inside the room felt a trace of anger, but no one reacted. Not to mention that Gorden had not explicitly said who he was scolding, even if he were pointing at someone's nose and cursing them by name, given his seniority and reputation, anyone still alive in this room, or even in all of Braavos, could only resent him in secret and could not openly contradict him.
"Everyone present is a top elite of Braavos, a powerful noble. Some truths should not need repeating, but it seems that now I must repeat the same old points and talk nonsense again," the old man said with an expression and tone full of heartfelt grief. "What is it that allows Braavos to prosper and be wealthy, and allows us to live in comfort and enjoyment?"
"Because we are the economic and commercial center of the known world." Afraid of an awkward silence, after a few seconds the current president, who had already moved his seat to the second position, answered softly. No quick wit was needed for this. It was a consensus among Braavos's decision-makers, basic knowledge that any House of Keyholders member, or even an ordinary Braavosi citizen, knew.
"Yes, but have you brats ever deeply considered what we rely on to become the 'economic and commercial center'?" The old man briefly praised them before continuing to press. "Can anyone say?"
A group of people averaging thirty to forty years old were being called brats.
The old man's act was emphasizing his seniority and showing off his status, yet no one dared accuse him of acting old and arrogant. In the dead silence, no one answered.
It was not that people could not answer. As the ruling class, even if not everyone present, at least nine out of ten had thought about this question and had their own answers. However, this type of question itself did not have a standard answer, and this was not a classroom where you got a little red flower for answering correctly. With this old master present, no one should even think of snatching the right to speak first. Why stick your neck out?
...
"Is it because this city-state has a long history and a special status?" As if dissatisfied that no one was responding, Gorden glared and began a monologue of asking and answering his own questions. "No, on the contrary, Braavos is not only the youngest among the Free Cities, but also the only 'bastard daughter' without the bloodline and heritage of the Valyrian Freehold. If ranked by seniority, it should be at the very bottom."
"Do we possess minerals, crops, and products that other city-states or kingdoms do not?" The old man paused to catch his breath, then continued. "Indeed, our territorial waters are rich in fish and shellfish, the islands are covered with dense forests, and within the land we control there is iron, tin, lead, stone, and various minerals. It would not be an exaggeration to describe it as rich in resources. Unfortunately, these resources, in terms of value, are not high. In terms of quantity, they were only abundant when the city was founded, and today they are not even enough for our own use. In terms of type, they are all conventional resources that can be produced elsewhere, with nothing rare. Not to mention that the most profitable and popular slave trade is strictly forbidden by us. The current state of the city-state's trade is this: apart from a small amount of fine swords, high-quality armor and warships, and the dark purple dye that can only be produced by local sea snails, Braavos has no other bulk export goods. The annual trade deficit is so large that it must be calculated in millions of gold coins!"
There were not many wealthy merchants or officials in charge of trade present, but fortunately none of this was confidential. In the slightly relaxed silence, everyone quietly waited for the old master's turn.
"So, is it because Braavos's geographical location is especially advantageous, making it unavoidable for north-south and east-west trade?" Under a multitude of expectant gazes, Gorden's tactic of suppressing before elevating was still not over. "That is not right either. When it comes to the core node of the east-west shipping route, Volantis is undoubtedly it. Looking at north-south shipping within the Narrow Sea, Pentos is the midpoint. Even if you talk about the straight-line distance to the great cities of the Seven Kingdoms on the opposite shore, we have no advantage. If we absolutely must list a merit, perhaps it is only that we are the Free City closest to the North of Westeros, and ships sailing from the Narrow Sea to Ibben and Lorath must also rest and resupply in our ports before turning toward the Shivering Sea."
After a great deal of self-deprecation, the old master's words finally turned to the main topic.
"How can such a city-state, seemingly without any advantages, be one of the most commercially developed, with the largest trade volume and the highest concentration of wealth in the entire known world, surpassed only by Volantis? When discussing 'per capita,' we hold an absolute lead. What is it that we rely on?"
This question was also open-ended, but unlike before, after listening to the long, seemingly inexplicable but actually clear analysis above, those with keen intuition began to grasp the old master's stance.
Voices immediately emerged from the pro-war faction.
"Because we have the Iron Bank!"
Before, no one dared speak because they could not figure out which side the old man was on, fearing they would be slapped in the face if they rashly spoke up. Now, the hawks knew that help, and their backbone, had arrived!
"Interest income from lending accounted for half of Braavos's total income last year, and the Iron Bank's share accounted for more than half of that total. Without the Iron Bank contributing nearly a third of the net inflow of wealth, Braavos would simply be unable to compete with the larger Volantis. There is no doubt about this!"
That was right, and it was also one of the consensuses, but why did it feel like the topic was drifting farther and farther away?
Although the pro-peace faction vaguely sensed that the old master had come to help the other side, they could not figure out his line of thinking and intentions for the moment, and naturally could not come up with a way to respond.
"That's right, we have the Iron Bank!" The old man nodded, but still did not stop. "So here is the problem. The Iron Bank's interest only accounts for less than a third of the city-state's net income. Even if you remove this third, the remaining two-thirds still rank high on the Free Cities' output list, second only to Volantis and Pentos, maintaining a certain lead over places like Tyrosh, Lys, and Myr, and per capita wealth still ranks in the first tier. Can anyone point out what is wrong with this deduction?"
The atmosphere, which had been frozen like death moments before, began to thaw. The pro-peace faction whispered strategies among themselves, while the already dominant hawks, full of spirit and confidence, began another round of speeches. They had a premonition: this debate, which had lasted for more than ten days, was finally going to produce a result today under the decisive hammer blow of the older generation.
The president, who had been silent for a while, answered decisively as the representative of the pro-war faction.
The House of Keyholders had many iron principles, one of which was complete equality among members. The so-called president merely served a coordinating and organizing role and did not possess any authority to force members to accept his views or directly formulate policies. This principle was the cornerstone of the House of Keyholders' stable and sustainable system, but at times it also tended to reduce decision-making efficiency, making it truly a love-hate relationship.
As the current president, he had been feeling quite stifled for a while.
"The problem with that statement is that it illogically assumes that a city-state's wealth is determined by the total apparent income from various industries. But the truth is this: it is precisely because of the Iron Bank's position in... what's that new word from Westeros called... what is it, meaning the circulation of gold?"
"Finance."
"Exactly! It is precisely because of the Iron Bank's supreme position in the field of finance that all other sectors in Braavos have also benefited from its glory!" He stood up excitedly. "I can immediately think of an example without even thinking, currency! Because Braavos is the world's financial center, the currency officially minted by the city-state also benefits from this, possessing functions akin to a 'world currency.' And in the process of Braavosi lending money to the world using currency minted by their own city-state, the city-state's mint collects seigniorage from the entire world! This tax first goes into the mint's pocket, then enters circulation through redistribution, and ultimately this income, which is not explicitly recorded in any accounts, genuinely enriches every Braavosi!"
"More than that! The Iron Bank's financial status not only gives the mint an invisible tax, but this influence also makes merchants, and even shipping and trading companies from Braavos, half a step higher than their counterparts." Another hawk, a customs official, quickly followed up, drawing inferences. "Braavosi lenders, merchants, and captains, wherever they go in the world, are bound to carry widely recognized and welcomed Braavosi currency and come with a halo of credit backed by 'the Iron Bank behind them.' It is precisely for this reason that Braavosi naturally have a higher success rate when doing business with the outside world than people from other places. This is the fundamental reason why our city-state, despite not having a particularly advantageous geographical location, still has developed shipping and trade!"
"Therefore, if the Iron Bank were suddenly to collapse, Braavos would not only lose the interest income from this bank, but the entire economic system would collapse from bottom to top. We would simply be unable to preserve the remaining two-thirds of our wealth income without the Iron Bank. Pessimistically estimated, we could not even guarantee a tenth. Braavos will quickly become a city-state as poor as Lorath. What's worse is that our population is much larger than Lorath's. The cliff-like decline in living standards will cause devastating social unrest, and so many people present..."
"Do not speak useless angry words." Golden Gallonier promptly controlled the direction of the discussion. "Thanks to these young friends for their examples. The reason I went around in such a big circle is actually to say that the Iron Bank is not just a bank. It is the economic lifeline and cornerstone of all Braavos! Its true value is not the gold and silver in its vaults, but the influence that resides in people's hearts. It relies on the world's recognition of the Iron Bank's credit, and on everyone's belief in the Braavosi people's determination and ability to defend this status!"
Gorden heavily knocked on the table.
"And now, there are two people across the Narrow Sea who want to shake all of this, yet we are still unable to reach a consensus on resistance. As for those in the pro-peace faction, whether they are stupid or wicked, II truly cannot figure it out anymore!"
(To be continued.)