Article Written: 3 October 1452
1301-02
The economy, up to this point, was prosperous in the Early Retunian Republic, having fully recovered from the 1290 downturn. This recovery was the result of Prime Minister John Waltmann's economic reform measures, renewed prospects of deep-trade reform, and the expansion of the lightfire industry in Ancondria.
However, this economy was more vulnerable than ever, for about 90 percent of it was financed by loans from the Big Five Banks in Hasphitat. Numerous businesses and even privately-owned estates were either paying operation costs with these loans, or were profitable enough to do so without the loans and were now paying those loans back. Many individuals had also taken loans out, primarily for paying rent, which had become unaffordable for many entry-level workers without some form of financial assistance.
Upon receiving critical testimony from foreign powers regarding the outlook of lightfire investments in Ancondria, the Big Five Banks decided to invoke a clause from the 1276 Resolution and liquidate all loans previously made to businesses invested in the field. This happened in June 1301 and led to the shuttering of many businesses as a result of defaults. This also led to a dramatic fall in the stock and tradestone markets, leading other businesses to either shutter or pare down on operation and labor costs. The resulting mass-layoffs left people unable to pay back loans or rent, causing them to lose homes and property. The resulting explosion in poverty led businesses to lose large numbers of clients, and were also forced to shutter, laying off even more employees and worsening the cycle.
This economic collapse also had an impact on privately-owned estates, many of which were startups and were paying back bank loans. When loan liquidation failed to yield as much payback as needed, the banks faced financial pressure to liquidate estate loans. When the estates defaulted, the banks liquidated their properties, evicting landlords and tenants. This meant that many tenants were evicted even if they paid their rent faithfully.
Such loan liquidation and stock collapses occurred in the midst of the Big Five Banks contracting, which forced the branch banks to fend for themselves when it came to providing cash for those requesting to withdraw their savings. But mass panic ensued, and many people flooded the banks to attempt to withdraw their savings, which led the branch banks to run out of funds and eventually shutter.
In the beginning of 1302, in the midst of this chaos, Prime Minister Waltmann enacted a measure provided by the Remikran Union to build emergency housing to house those who were suddenly left homeless. This addressed the homeless crisis but the living units were basic, lacked comfort, and were often dangerous. In fact, there are many accounts of walls and ceilings collapsing as well as structural fires.
Mervin Teller, a Provincial Domain Governor General having served under former Prime Minister Jackson, announced his run for the Prime Minister election of 1302, blaming Prime Minister Waltmann for "mismanagement" in the midst of the economic crisis. Teller presented an agenda to re-invest in international trade to create jobs, a seemingly appealing plan. However, it was later in his campaign when Teller stated that he would end the emergency housing program in order to re-balance the government budget, prompting backlash from the population and causing him to lose the election to Waltmann.
1303-06
Through negotiations, Waltmann convinced bank leaders in the summer of 1303 to make cautious investments in the market surrounding Ancondria, and enacted stimulus measures to re-establish businesses. This had relative success, and it appeared the economy was en route to recovery.
In February 1304, however, the Linbraean Royal Trust made negative testimony against Ancondrian investors from Middle Remikra and withdrew an essential credit line, which sent the Middle Remikran markets crashing again. In the summer of 1304, Waltmann, again through negotiations, convinced the Five Big Banks to make cautious re-investments in Ancondria, as the embassy and Retunian territories in Ancondria were formally established along with an emerging market in the Ancondrian city of Silba. The economy re-stabilized as a result, but then crashed again in the beginning of 1305 amid fears stemming from international intervention involving the Great Northern Duchy of Ecnedivelc. However, trade in Ancondria continued to grow, and the economy re-stabilized beginning in 1306. With the promise of growth in the future, businesses in the mainland of Middle Remikra re-emerged while unemployment was at its lowest rate since the 1301 Crisis began.
1307-09
And then came the crash of 1307. Precipitated by a fallout in the Ancondrian trade market, it was the largest market crash since the beginning of the 1301 Crisis and erased the progress made in 1306. Again, people were unemployed as more of them were forced into emergency housing. Protests broke out in the cities while Prime Minister Waltmann encountered stiff resistance from the banks during negotiations.
Walter Scott Mason, President of the Rotary Legion of North Kempton, announced his run for Prime Minister in 1306 for the 1308 election, running as a candidate for the Diplomatic Party. Initially, his wild rhetoric in evangelism and ultra-nationalism made him the least popular Diplomatic Party candidate, as he seemed to stand no chance against the leading Diplomatic Party candidate: Woodward Madden, the incumbent governor of Gymia. However, when the 1307 crash happened, Mason began preaching to numerous crowds that Waltmann was enacting policies to favor the Holz Finzi Darkfire Community and award them economic privileges over everyone else. This claim turned out to be false; nonetheless, a large majority of the conservative Retunian population, desperate for answers, immediately turned their support toward Mason. And thus, Mason won the Diplomatic Party primary election in September of 1307. And loyal Rotary Chapters across the Republic united to form the "Knights of the Common Good," or the KCG, under Mason's leadership.
Meanwhile, another significant portion of the population turned their support toward Holz Finzi, who had, up to this point, been regarded with fear for his power in darkfire practice. However, emerging studies at the time had shown darkfire to have practical benefits needed for the present economic situation. Furthermore, accounts came to light detailing those either deeply involved in darkfire or having innate darkfire conjuration tendencies being subject to measures of harsh oppression during the Early Republic. This bolstered support for darkfire legalization, which almost came to fruition in 1308.
Despite sharing a common interest for a better economic future, Finzi supporters and Mason supporters were fiercely opposed to each other to the point of violence. When he lost to Waltmann in the controversial 1308 election, Mason continued his campaign, refusing to concede and continuing to rally his supporters. He was about to host a meeting in the Chemkan city of Tandowyn that November when he was assassinated. KCG leaders blamed the assassination on Finzi and his supporters, and launched a nationwide act of vengeful violence against the Finzi Darkfire Community, bringing the Early Republic very close to a civil war.
And thus, in the beginning of 1309, it was Prime Minister Waltmann serving as the only force preventing the two dueling nationwide political factions from engaging in an all-out conflict. In September 1309, Waltmann gestured for the Banks to engage in a possible deep-trade opportunity in Ancondria. However, that opportunity proved false and sent the Retunian markets crashing again; and this time, for the first time in history, the Retunian government declared bankruptcy. This prompted nationwide protests while Waltmann got involved in a scuffle with his appointed Governor General, William Irving, who pulled out a pistol and shot Waltmann dead. The Retunian government moved to instill Marshall Noland as the Interim Prime Minister, but at a critical moment, the officiation was interrupted by a missile shot by the KCG, forcing the government of the Early Republic to cease functions.
And so began the 1309 Revolution, over which Finzi and his supporters would ultimately prevail on 7 September 1309. The KCG and their allies fled to Gymia, which had declared autonomy from what would become the Independent Commonwealth State of Retun. The former Gymian territory became the Reformed Federal Estates of Retun and would declare a war on the Commonwealth in 1311, but would lose to the Commonwealth the following year. Meanwhile, Finzi and the Commonwealth government enacted sweeping policies that eradicated the financial economic woes of the 1301 Crisis.