Varanus Trade Conflict

**Background**

In the early Varanus period, the crown continued to consolidate power. A civil administration of official appointed by the center spread out across the kingdom. Regional prefects representing the king issued decrees which the barons were expected to follow although the actual power dynamic was somewhat more complicated.

**Civil Administration**

The prefects communicated and implemented royal decrees but they also had discretion to make their own rules assuming they were not incongruous with royal policy and that they did not overstep the nebulous limits to their power. In order to strengthen their authority the prefects generally obfuscated which rules came down directly from the king and which were regulations created by the prefect himself. A prefect often declared that as the representative of the crown all his decrees held royal authority.

When displeased with a prefect’s policies the barons might (i) ask the prefect to vary that policy, even in the case of actual royal decrees it may be that the king’s order left room for different methods of implementation; (ii) ask the prefect to communicate their feelings on the decree (usually displeasure) to the throne with the hope the king would hear their plea; or (iii) if relations between the prefect and the baron broke down the barons might make an end run around the local administrators and appeal to the crown themselves. This occurred in cases of corruption. In general the king did not like for his barons to be discontent and thus a complaining emissary might lead to the prefect being recalled or chastised.

**Appointment of Governors**

During the reign of the third Varanus king, the civil administration turned its attention to the City States of the southern coast. Much like the barons, the people of the City States suffered the tyranny of the local prefect. Representatives of the League of City States would communicate the citizens’ sentiments to the prefect. The king first began levying taxes of the City States, this was not appreciated but upon receiving assurances the tax rate would not increase it was accepted. Later on in the third king’s reign, the civil administration extended itself still further. It was announced that a royal governor would be appointed for each of the City States. These governors were to be put atop the cities’ governments above the city councils. This would prove a step too far. Backed by the royal army, the governors were installed into their offices within the city walls.

**Merchants League Strike**

The Merchants League reacted by calling for a strike. No League ships would enter or leave the harbors, no men would load or unload cargo, no duties were collected, no one processed goods brought into the city by land. Over 60% of all the kingdom’s maritime trade went through the Cetacian city states and thus the halt of trade was soon felt throughout Long. In less than two months the king rescinded the order and recalled the city governors. In order to save face the crown declared that this had been a decision by the region’s prefect and had not originated from the capital.

This was the most serious action the Merchants League had ever taken. This display of League power troubled the crown and yet there was little the king could do. The kingdoms were reliant on the Merchants League to manage maritime trade. Even if the king could break the Merchants League monopoly, creating an alternative infrastructure would be a tremendous undertaking.

**Potential Escalation**

The king could use military force against the League but this would likely lead to an escalation. The Merchants League could blockade the kingdoms ports. Moreover, while the Long army would dominate on the mainland, Merchant League gunboats could rival and perhaps prevail over the kingdom’s own navy. The Kingdom of Hu might also enter the fray: either allying itself with the Merchants League or the City States or simply taking advantage of Long’s preoccupation to launch its own offensive.

Hu was much more reliant on maritime trade and thus on the Merchants League. A strike similar to what happened in the City States would cripple the kingdom. Grain from provinces such as Ursidia was needed to feed the people of the kingdoms large cities and (more importantly) the army. The Hu army and navy itself was too preoccupied with war to take over operations itself and attempts by the king or his barons to man their own cargo ships would be met with laughter and serve only to highlight the job’s difficulty.

It wasn’t hard to placate the Merchants League: the only potential points of conflict were (i) imposition of taxes, (ii) obstructions to free trade, and (iii) restraints on the ancient freedoms of Merchant League cities.