Chapter 26: Envoy of the Iron Bank

A few days later, the envoy from the Iron Bank's office in White Harbor arrived at Winterfell.

The envoy wore robes of red and white, had a kind face, a fiery red beard, and a plump physique.

"Lord Eddard, I am Saul, the person in charge of the Iron Bank's office in White Harbor. Hearing that you had a need for a loan, I immediately rode a fast horse to come before you."

With the help of Klar, the two sides quickly reached an agreement on the loan amount and when the funds would be released; the Iron Bank agreed to lend 500,000 Gold Dragons to Winterfell, after which both sides began to haggle over the interest rate.

Klar said: "Saul, this is the Lord of Winterfell in the North. He rules over the vast lands between the Neck and The Wall. Surely you have seen the construction in the Winter Town? The factories, the great markets, and the farms are all being built. Lord Eddard will have plenty of opportunities to borrow money from you in the future, but for this interest rate, you must show sincerity and offer a discount."

Saul looked humble.

"The interest rate I have offered is the lowest you will find in the Seven Kingdoms. If you don't believe me, you can go and ask any wealthy merchant or noble family south of the Neck."

Saul even produced a ledger containing the interest rates at which many wealthy merchants and Archons across the Narrow Sea had borrowed from the Iron Bank; according to those rates, the interest rate Saul offered to Winterfell was indeed quite favorable.

Klar threw the ledger aside with disdain: "How many nobles in the Seven Kingdoms would borrow 500,000 Gold Dragons in one go? Saul, I served the Iron Bank for many years. Do you think you can fool me with this trick? To tell you the truth, it's all stuff I played with years ago."

"If you are unwilling to give Lord Eddard a discount, I can easily send someone to Braavos to find another Iron Bank envoy. I even know some Keyholders, and I have friends around the Sealord. We are talking business with you only because you are the Iron Bank's representative in White Harbor. If you don't cherish this opportunity to make money and lose such a large order, I would be very sorry!"

Saul was visibly nervous. There was competition among the Iron Bank's employees, and he did not want to lose this order or a client like the Lord of the North.

Thus, after a heated discussion, Saul was forced to lower the interest rate. At this moment, Klar kissed the cat's eye ring on his right thumb.

This was the signal Klar had agreed upon with Eddard in advance; Klar kissing the ring meant the Iron Bank envoy had set the interest rate at a very low level, and Eddard could announce that the deal was done.

To Klar's surprise, Eddard said: "I think the interest rate could be even lower."

Saul smiled bitterly: "Lord Eddard, this interest rate really cannot go any lower. Your financial advisor Klar is a former employee of the Iron Bank; could I possibly deceive you? If I return to the Iron Bank with this rate, I will surely be reprimanded by management, and my colleagues will mock me."

Eddard said slowly: "How about this: if I include the wood of the North in the transaction to offset the interest, would you consider lowering the rate?"

Saul licked his lips, and Klar immediately realized that Eddard had added a condition to the deal that a Braavosi would find hard to resist.

The vast lands of the North are covered in large forests, the most famous being the Wolfswood. In the North, timber is not worth much, but in Braavos, the price of timber is extremely high.

Braavos is a city built on islands, filled with mudflats, salt marshes, and shallow shoals. The outer islands are covered in forests, but because Braavos has no walls, these forests serve as "windbreaks," and the Sealord forbids the felling of timber there.

The lands near Braavos are primarily hills and plains with very few forests. The arsenal can produce a Purple-hulled Oared Warship every day, which requires a large amount of high-quality timber. As one of the busiest ports in the world, Braavos has an astonishing consumption of wood.

Therefore, the timber supply in Braavos relies heavily on imports, and the price is expensive. Firewood is one of the most expensive daily necessities in Braavos, and in winter, the price of firewood rises even higher, causing many passing travelers to complain.

Much of the timber from the North is sold to Braavos. Timber felled by Deepwood Motte, the Forest Clan, and the residents near Winterfell is transported to the White Knife, loaded onto ships there, sent to White Harbor, and shipped from White Harbor to Braavos.

In the end, under Eddard's timber offensive, Saul lowered the interest rate further.

The two sides signed the contract, and Saul said: "Lord Eddard, the Iron Bank looks forward to our next cooperation. Let us warm each other with Gold Dragons and timber!"

After Saul left, Klar gave Eddard a thumbs up.

"Lord Eddard, I truly admire you. You know how to use the timber that Braavosi crave as a bargaining chip, you know how to pinpoint the other party's needs to secure benefits for yourself; you are truly a business genius."

Eddard rubbed his forehead with both hands, "The business genius is getting poorer and poorer."

Klar laughed: "At the very least, the stables, barracks, factories, warehouses, and farms in the Winter Town can continue to be built. You can't just leave these buildings half-finished and abandoned, can you?"

Eddard let out a long breath, "After the expansion of the Winter Town is complete, I can only hope that the Salt Farming Plan, the Beehive, and these factories and farms in the Winter Town will earn money for me, otherwise I won't even be able to pay the interest."

Klar frowned, "Lord Eddard, I know you are ambitious about the Salt Farming Plan, but as your financial advisor, I must warn you that your Salt Farming Plan is very easy for lords and local merchants to exploit. Winterfell buys at market price; who can guarantee that lords and merchants won't mix private salt into the salt for the Salt Farming Plan and bring it to Winterfell to resell for profit?"

Eddard said: "It is understandable for vassals to skim a little off the top. It's cat and mouse; what does it matter if they steal a little meat?"

Klar laughed exaggeratedly, "But what if the damage caused by the cat is greater than that of the mouse? Lord Eddard, you have already summoned your vassals. The vassals will recruit soldiers and buy horses; war will make them poor and corrupt. Sooner or later, these vassals will set their sights on the Salt Farming Plan."

Eddard checked the ledger, "The matter of the Salt Farming Plan can be solved slowly later; I can now proceed to the next step of the plan. Klar, when you go out, tell the guards at the door to go and bring the shipwright Malin to me."

By the time Malin arrived at the study, it was already dark. Eddard and Malin looked at the shipbuilding blueprints under the honey-scented candles, and Malin displayed a model of a future Northern warship.

Malin said: "Lord Eddard, as you ordered, the Northern warships will be refitted based on the Sealord of Braavos's warships. During naval engagements, the catapults, ballistae, and archers on the top deck can strike the enemy from a superior position, and the offensive power will be astonishing. Give me the funds and enough manpower, and I estimate the first ship can be launched in a month."

Eddard was somewhat disappointed, "The Braavosi arsenal can build an oared warship in a day, and you need a month?"

Malin said helplessly: "Lord Eddard, I served in the arsenal for many years. The arsenal's efficiency is high because they have a large number of skilled shipwrights and use a complete assembly line process. How many such workers can you find in White Harbor? My estimate of one month is optimistic."

"Lord Eddard, if I may speak frankly, spending such a large sum of money to build ships to deal with Rockborn Pirates is a waste. This money could easily be used to hire a mercenary fleet from the Free Cities to fight for you, or even go to the Sealord and pay him to send troops; the Sealord's fleet has unparalleled combat power."

Eddard said: "I do not trust mercenaries. As for paying the Sealord's fleet, I would rather spend the money to build my own fleet. Malin, we Northerners are all descendants of the First Men. The First Men were not skilled at sailing, but I believe we can grow slowly. We have no desire to conquer the sea, but we must defend our own oceans and rivers."

"Otherwise, we can only let the Ironborn and Rockborn Pirates run rampant."

(End of chapter)