Chapter 78. Inflation

“So these are the three largest revenue sources for The Viscounty, correct?” Francesca pointed out, holding up three fingers. “Gemstone mining, mercenary contracting, and Moringa sales...”

“Yes, My Lady,” Kenny nodded, pulling a large chalkboard on wheels to the center of the wall. He pointed toward the neatly written list he had prepared earlier. “Gem mining has been under Duke Leoncraft’s total operational control ever since your marriage. We do receive a steady contractual revenue from it, but...”

“He fired all of our local Ironwood miners and brought in his own personal workforce, right? Which is precisely why our unemployment rates have been climbing ever since...” Francesca noted in understanding.

Kenny nodded solemnly as he continued, “As for the second source, the Ironwood Mercenaries are renowned as one of the two best fighting forces in the entire Empire. Consequently, we receive regular contract requests year-round. This is currently our largest, most stable income source. However, during the winter freeze, our soldiers… other than those stationed directly to guard the Third Prince, typically return home to spend time with their families.”

“Which means our earnings from mercenary contracts will drop drastically during the winter months,” Francesca took mental note, nodding as Kenny pointed toward the final item on his board. As she commented before him “And as for the Moringa... Its harvesting season has already passed, so we won't be able to rely on selling it until spring.”

Kenny let out a heavy sigh. “That is correct, Your Ladyship. It is fortunate that we recovered a substantial amount of stolen funds from the embezzlement case to sustain the territory through the season, but...”

Francesca picked up the financial reports spread across her desk, her brow furrowing. “The prices for imported goods have already begun to skyrocket.”

“Indeed.” Kenny wiped a section of the board clean with a duster and drew a fresh financial chart. “Every year, the North as a whole receives significantly less trade traffic from the South during the winter freeze, which naturally inflates the overall cost of goods by twenty-five to forty percent.”

He drew a single winding line representing the main transport route of Ironwood, writing ‘Duke Leoncraft’ at the top.

“Furthermore,” Kenny continued, “with Duke Leoncraft holding exclusive priority rights over the only mountain road leading directly into Ironwood, he has been deliberately staggering his gemstone transport carriages. As a result, only two to five merchant carriages are physically capable of entering or leaving our territory each day.”

He tapped his chalk against the wood. “Local market costs were already rising due to this bottleneck, but with the winter freeze arriving, import costs could easily double.”

“And now, adding the mutual trade embargo into the mix... things will turn catastrophic, right?” Stella commented, her face darkening.

Kenny nodded, writing out a swift mathematical equation on the board. “Precisely. The mutual trade embargo enacted by our neighboring territories imposes an additional forty percent tax on all imports and exports passing through domains that lack mutual trade agreements with them.”

“Haa...” Francesca let out a long, heavy sigh, staring down at the calculations and the financial ledgers. “So essential goods will end up costing around 150 percent more than usual... all while our unemployment rate is reaching an all-time high.”

A heavy, suffocating silence settled over the study. Other than the soft, rhythmic patter of cold snow brushing against the glass windowpane, not a single sound echoed through the room.

“Even if we try to use the millions of Shella we recovered from the embezzlement case to fund a large public aid program, our citizens still won't be able to afford basic goods,” Francesca pointed out, clenching her fist on the wooden desk. “We would still be forced to purchase products from neighboring regions at exorbitant prices, and with Father’s men deliberately staggering traffic along the road, we would end up right back at square one... We will completely run out of funds long before winter ends.”

“What about the cable cart system His Lordship and you have been developing...?” Kenny asked curiously.

Francesca shook her head softly. “Even if we were to begin operating the cable cart system this very instant, the inflated market prices caused by the mutual trade embargo and the winter freeze would still pose an insurmountable obstacle.”

Leaning back in her chair, she added, “Even if we ran the cable carts day and night to transport medical supplies, grain, and essential goods for direct distribution to our citizens, it would merely amount to a temporary handout. How long could the Viscounty realistically survive on charity? Eventually, the recovered funds will dry up completely, and the revenue from mercenary contracts alone won't be enough to sustain the territory.”

“At the very least... fewer people will starve to death this winter if we allocate all of our recovered funds toward winter aid,” Kenny suggested somberly.

“What about the Communal Julian Coop?” Stella asked curiously, pouring hot tea into Francesca’s cup.

Francesca shook her head again. “That is a community driven initiative, meaning we do not hold direct governmental control over it. It is simply an effort to help local families combat rising meat and egg prices on a small scale.”

Kenny nodded in agreement. “Indeed. We shouldn't factor community projects into our official territorial budgeting, as it isn't a government led project.”

“Then the only viable option I see is trying to negotiate a mutual trade deal with one of our neighboring domains...” Francesca mused aloud as Stella set down the teapot, offered a polite bow, and quietly stepped out of the study to resume her maid duties.

Kenny walked over and placed a fresh folder on her desk. “His Lordship was actually looking into striking a deal with the Hollowland Viscounty again to minimize their export taxes.”

“But what do we even have to offer them in exchange for a mutual trade agreement?” Francesca fell deep into thought, skimming through the regional trade ledgers. “I suppose Miller was also brainstorming that exact problem...”

Picking up a pen, she began crossing items off a checklist on her page. “We cannot sell Moringa since it isn't the harvesting season... Volcanic rock is out, since Hollowland is adjacent to the mountain range and already possesses an abundance of it... And our gemstone mines are under Father’s control...”

Knock... Knock...

A sudden knock at the study door interrupted her thoughts. Kenny stepped over to answer it, speaking in low, hushed tones with the aides waiting outside. After a brief discussion, he closed the heavy oak door and turned back toward the desk.

“My Lady...” Kenny began, his voice grim.

Francesca lifted her gaze from the documents. “What is it?”

Kenny let out a long sigh, setting his clipboard down on the table. “It's the Council. They have discovered that Lord Jeckson was operating as a spy... and they have also uncovered the existence of your secret cable cart project.”

He looked at her solemnly. “They have formally submitted a counter petition to immediately cancel His Lordship's dissolution request against them.”

Francesca rested her face in her hand, letting out a weary breath. “When it rains, it really pours, doesn't it...?”