The Monetary System of the Circle

The Circle is an organization tasked with the duty of with the management and administration of hundreds of thousands of Circulions. Since it's creation in the 2nd Century AF it has been structured in order to behave as its own sovereign entity. This extends to the ways in which the Circle attains and distributes the funds required for it to sustain itself and its various departments and institutions. 

The Circle's primary source of income is the Great House Conglomerates, companies founded during the later years of the Red Century and the New Industrialist Movement or some time after the War of the Coin. All of which are currently owned and operated by the Great Houses. These companies include:

1. The Hatlynshire Bank
2. The Hatlynshire Steel Company
   
3. The Venshire Medicine Company
4. Everton Entertainment Corporation
5. Morrow Mining and Commodities Co.
6. The Morning Rail Company
7. The Angelmore Press and Paper Company
8. The Bernstein Food and Land Company

All these companies and their various subsidiaries and holdings are managed under the House Holding Company of Hatlynshire (H.H.C.H), an entity whose shares and directorships are shared equally among the Great Houses. Though as per the Funds and Governance Agreement of 158 AF signed between the Great Houses and the then newly established Treasury, all profits generated by Conglomerates are sent through the H.H.C.H before being distributed 60-40 between the Circulation Treasury and the Great Houses. 

The Treasury then uses the funds in order to create an annual budget, dividing the money between seven funds which are operated by the members of the Table of Intuition and Governance, the second highest seat in the Circle.

1. The Treasury Fund (10%): Used to fund the operations of the Circulion Treasury and the Intuition of Finance, headed by the Treasurer and the Chamber of Book-Keepers. 
   
   
2. The Circulion Reserve Fund (20%): A reserve fund where part of the budget is stored in case of deficit or emergency. Funds are not stored physically in this regard, rather they are invested by the Treasury through the Hatlynshire Bank into various assets and investment funds in order to maintain non-liquidity and to keep the money outside of government observation.
    
3.  The Circulion War Fund (25%): A fund directed towards the Intuition of War, handled directly by the Commander-General of the Circulion Army and distributed throughout the Boroughs by the Boroughman. Funds usually go towards the maintaining of the armed forces and the procurement of weaponry and the funding of various other operations.
    
4.  The Nobilier Fund (10%): A fund directed towards providing the Noble Houses of the Hamlets and their domains with the funding required for defense, civil maintenance, welfare and general function. This fund is handled by the Grand Nobilier before being funneled downwards through the Institution of Administration. 
    
5. The Scribe's Fund (20%): A fund dedicated to the maintenance of the School of Scribes, the main educational intuition of the Circle and the College of the Intelligencia, each run by its own order. Funds are handled between the Treasury and the High Archivist alongside their personal assistants and secretaries. This fund is directly strictly towards the Institution of Education.
    
6.  The Law Fund (10%): Dedicated to the maintenance of infrastructure and personnel under the Institution of Law with the exception of the Lawyer's Guild. Provisions for the Chief Law-Maker, the Tribunal of Law-Makers and all Circle appointed judges is included in this fund. 
    
7.  The Guildsman Fund (5%): Dedicated to the functioning of the Guilds and the supporting of their members. This fund is also handled by the Intuition of Finance and it is the lowest fund by percentage due to the Guildsman's primary source of income being fees of membership provided by the Guildsman from their occupations in companies owned by the Great Houses or by various other parties. 

It is key to note that all regulations and legislation regarding the fiscal policy of the Circle is handled directly by the Treasury and the Intuition of Finance with the aid of the Institution of Law, although the latter is simply an advisory entity in the matter. However, thus far, the Circle has maintained a consistent policy of charging no direct or indirect taxes upon its citizens relying solely on the Great House Conglomerates, the Circulion Reserves and other smaller means of income. 

The only noteworthy department of the Circle that remains independent of the seven funds provided by the Treasury is the Order of the Gratousy, which, despite being a part of the Circulion Army, remains independently funded directly by the Great Houses in order to assure loyalty and avoid corruption. It is also common to see the Great Houses making private donations towards various Circulion institutions either for personal reasons or at the request of certain individuals.

Despite the highly organized monetary system of the Circle, the true size of the H.H.C.H in terms of market share, equity and revenue remain confidential, only known by the Heads of the Great Houses who also retain Directorships in the holding company as hereditary post. However, many have speculated that the H.H.C.H is the single largest private commercial entity in Hatlynshire. Perhaps second only to the government's own Great Enterprises, though some are argue it is even larger. Whatever the case, the profits generated by the H.H.C.H and the Great House Conglomerates (aside from recessions and moments of crisis) has consistently been able to maintain the Circle nearly five hundred years. 

 

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For more see:

•  Introduction I: The Circle
• The Organizational Structure of the Circle
• The Steel Queen and the War of the Coin
• The Red Century and the War of the Banners