//------------------------------//
// Chapter I - The First Hanstag 
// Story: Gold Wins Wars 
// by Verlax 
//------------------------------//

	The founding of the new state referred to as “Equestria” and subsequent changes it forced onto our societies took their toll on the economy of the young nation. The leaders of the state, blinded by their lack of understanding of the very principles of real economy, attempted to counteract the growing crisis by forcing down new laws, creating new taxes, and investing a sizable portion of the country’s funds into setting up new cities. Though their desire to overcome the crisis was commendable, in the end all of their attempts failed because of one simple reason: politics do not dictate the economy. It is the economy that dictates politics. Our leaders failed to realise that, and when they did, it was far too late.

And that is why, in the merchant city of Lubuck, the first Hanstag was held.

- “Wealth of Equestrian Tribes” by Tough Smith


















Chapter I - The First Hanstag


A mighty river crossed the forested plains of Equestria, splitting it in two like a great blue ribbon. The river Trave, or as some called it, the Traveler’s River, was a huge line of water that gave birth to several settlements. Amongst them, Lubuck was the greatest, commonly known as the Gem of the Trave’s Crown. 

The city was built on the banks of a peninsula, overlooking the mouth of the Trave. It was neither a great metropolis nor a sleepy hamlet, yet it was an intriguing settlement nonetheless. One glance at its cobblestone streets and red-tiled buildings spoke volumes of the wealth of Lubuck; everything looked fresh and clean. The streets were surprisingly empty, and it had nothing to do with a lack of citizens. Something seemed to linger in the air, a strange feeling of nervous expectancy. The atmosphere was tense and truly unfriendly.

A lone earth pony mare left her house in the merchant’s district. Crossing through the cobblestone streets, her eyes darted from one building to another, taking in everything they could. No shop seemed to be open, as if all the traders and merchants were gone, and she could see neither hide nor hair of any of the many foreigners usually milling about the streets. The few locals she saw marched in complete silence, their pace brisk, vanishing behind the corners of buildings. The only life on the street came in the form of two foals playing together in a fountain, manes wet and faces smiling, blissfully unaware of the dead silence around them.

Everything looked wrong.

A few years ago, an agreement was forged between the leaders of the three tribes. From this agreement, Equestria was born, a child of all three races, handicapped from the very beginning. Even now, she could smell it in the air: poverty, hopelessness, social pessimism. Lubuck was known throughout the land as a merchant city, a proud bastion of the merchant class, yet even here she could see it.  Hiding beneath the guise of wealth, in the shadows of mansions as grand as those of the nobles were slums teeming with beggars and thieves. But if this was the Gem of the Trave, then what did the other settlements look like?

The dreams of a united Equestria, where the three tribes lived together in harmony, came to a screeching halt when faced with cruel reality. The mare didn’t even have to look far to see it. To her left was a tenement house, kept in good shape and big enough to house several families. Yet only a few unicorn nobles called it their home. She watched as one of them left the building, his head pointed arrogantly toward the sky. The pegasi living in an overpopulated apartment across the street sent him hateful glares and drew their curtains angrily. Such was reality.

The weather adjusted to her grim thoughts, the sun vanishing behind dark clouds as if Celestis herself was frowning on the slowly failing nation. She cursed silently. It would be raining soon.

She crossed King’s Street and marched right onto Honest Street. The houses here were built with gray stone bricks and wooden support beams. The few ponies crowding the street parted as soon as they spotted her approach. She kept silent; the ponies watched her with apprehension written on their faces.

They knew full well she was a merchant. The ponies didn’t care if she was selling wood, gems, food or jewelry. The only thing that mattered was that she belonged to a higher class. She wore a characteristic fur coat adorned with several strips of silk and wool that were covering her own green fur, marking her as one of the traders. What truly separated her from a casual noble was the Coat of Arms on her right shoulder. It was a simple symbol, a shield of white and red. The symbol of Lubuck. 

As she was passing an alleyway leading towards the slums, Grainwood stopped for a moment. As expected, the entrance to the poor district reeked of mud and decay, enough to scare off any would-be explorer. But... there was something more. It took Grainwood a moment, but then she realized what it was: the sweet, inviting aroma of freshly baked bread emanated from the alley, clashing with the otherwise horrid stench. Letting curiosity get the better of her, Grainwood followed the smell.

Crossing the alleyway and going down the street, Grainwood was greeted by a surprising sight. In one of the old, wooden buildings somepony set up a bakery, probably illegally if she had to guess. But this wasn’t that shocking. She was more interested in the sheer number of ponies gathered in front of it. Formed into a long, snaking line, the bodies almost blocked off the street, each of them with a determined look in their eyes. It was clear for her that they were desperate to get inside.

Out of curiosity, Grainwood took a few steps towards the group. She was stopped moments later  however by a voice from behind her.

“Hey!”

Turning back, Grainwood was greeted by the pitiful shape of starving beggar. With rags as clothing and his coat caked in mud, the small unicorn presented a truly deplorable sight. Bruises and small cuts riddled his body, giving him the appearance of somepony that just finished fighting for his life.

“Spare me three bits, wouldja?” The beggar asked, smiling hopefully with his yellowed teeth.

“Three?” She asked, taken aback. The request itself wasn’t surprising, but it was oddly specific if she had to be honest.

“Bread costs four bits. I already have one, so... Look, I’ll take whatever you give me, just please,” he begged pitifully.

Grainwood gasped at the realization of what he just said. A loaf of bread costs four bits? How? This was utterly ridiculous; the inflation was utterly ridiculous. Not two years ago a loaf cost one bit each. Seven years ago you could buy two for that amount. And now? Urgh...

She shook her head and concentrated on the beggar once more, pushing the thought of inflation to the back of her mind. The ragged unicorn was still looking at her, his eyes gleaming with hope, making Grainwood mentally frown. Three bits wasn’t much for a pony like her, but her inner merchant reminded her that it was still her money. She worked for it, unlike him. Her parents invested in her, payed for her schooling, and she had to work herself to the bone to get every last bit of that sum. And what did he do to deserve it? For all she knew, this small unicorn was a jobless drifter and nothing more. He was jobless...

Three gleaming coins flew towards the beggar, who quickly caught them with his magic.

“Thank you missus! Thank you!” The unicorn beamed at her, bowing in gratitude.

Grainwood herself didn’t smile. She knew she shouldn’t have to do that, that this whole situation shouldn’t have happened in the first place. This was Lubuck, one of the wealthiest cities in Equestria. There shouldn’t be beggars loitering on the streets, asking for money for food. They should have jobs, they should have enough bits to buy whatever they needed. Where did they turn wrong?

As she was thinking all this, Grainwood watched the beggar move to the back of the line, eager to buy himself some bread. Unfortunately for him, he wasn’t the only one.

“Oi! That was my place!” The beggar shouted as a massive earth pony shoved him out of the way.

“Not anymore.” The stallion growled at him. “Now git.”

The unicorn wasn’t about to give up and once again approached the end of the line. This time however the same earth pony kicked him in the chest savagely. The beggar stumbled back and fell on the mud-covered street. He quickly got up again and charged the earth pony, trying to tackle him. Unfortunately for the beggar, the stallion was far bigger and more muscular than him, managing to overpower the starved unicorn. Within moments, the beggar was on the ground, pinned by his assailant and being beaten to a bloody pulp.

Grainwood watched in silent shock as the earth pony finally got off the now unconscious unicorn, scooping up his four fallen bits from the ground. She was even more shocked by the complete indifference everypony else was showing. They just stayed silent, waiting for their turn, averting their gaze from the bloody show. They acted as if nothing was wrong, or more like they didn’t want to acknowledge that something really was wrong. Somepony got mugged in front of their very eyes and they just didn’t care.

Biting her lips and swallowing hard, Grainwood turned around and started to walk away. She was sick of this place, sick of the indifference, sick of everything. She was even sick of herself. She could've done something, anything, but she chose to ignore the travesty and go her way. It was a sign of the times, when ponies grew blind to injustice and just accepted it as a norm. She shook her head once more and left the dingy alleyway, continuing to her original destination.

The straight, flat road became steep as she walked, leading up towards the hill overlooking the city. It was also the first time she spotted any guards. The pegasus legionaries were patrolling the streets, keeping their watchful eyes trained on it. The atmosphere seemed to get tenser be the minute.

She was marching towards a big mansion situated on the top of the hill. She knew the trek would take exactly three thousand, two hundred sixty-two steps. Somepony actually took the time to count it, the number becoming something of a curiosity for her. At first it was a tiring climb for such a small and clothes-laden pony, but she had grown used to it by now.

Finally, she reached the richly decorated gates of the mansion. Around twenty legionaries were waiting there, scrutinizing every inch of the street. The commanding centurion approached her.

“Good morning, Grainwood.” the pegasus nodded at her. “The Tagfahrt has already begun. All the delegates have arrived.” 

“Morning, Steel Head.” Grainwood responded in kind. “They said anything about this session being bigger or more important than normal?”

“Well, yes.” the pegasus nodded. “We’re not here to guard this meeting. We are here as the escort of our Legatus.”

Grainwood raised an eyebrow at the news.

“You mean that the government had decided that this time its interested in what’s going on during the Tagfahrt?  They actually sent somepony?” She asked in disbelief.

“Indeed. But I fear that I have already taken up enough of your time, and you are running late as it is. Open the gate!” He ordered his subordinates.

The wings of the gate flew open, revealing a dark corridor leading to the meeting hall. She took a deep, calming breath and entered the mansion.





The sounds of quarrel were easily heard even from behind the doors. Grainwood entered the meeting hall, preparing for the worst. The hall was an incredibly large and spacious room, looking almost like an amphitheater. There were hundreds of seats placed here, and she almost could not believe that the huge majority of them were occupied. Merchants, local nobles, traders, captains of trade ships and barques; all were present.

It was truly a magnificent sight to behold. She’d once attended Parliament in Everfree City, the seat of the highest institution of Equestria, and yet Grainwood doubted that any session of the Equestrian Parliament came anywhere close to the sheer magnificence of the Tagfahrt. In one swift glance she could see esteemed guests amongst the usual merchants attending the session. She saw the mayor of Platinum’s Landing conversing with secretaries and mayors of other Equestrian towns. She saw the captains of the biggest and most successful trading vessels of the land, some of them legends of their own. And of course there was the Legatus herself, scrutinizing the Meeting Hall with her keen eyes. 

Grainwood could distinguish the merchants from the other ponies quite easily, as well as who came from where. All the merchants, much like herself, were wearing the Coat of Arms that showed which city they were representing. She saw the white-red symbol of Lubuck, the solid red symbol of Hayburg, the golden keys representing the town of Ridge, the red-white-red symbol of Mareggen, the white and blue symbol of Novigrad, the goat on blue background of Coltland, and countless others. She even spotted the red field with two white crosses, the symbol of the infamous Danzig. 

Unlike in the Equestrian Parliament, the Tagfahrt cared little for equal representation of the three tribes. Grainwood noticed there were far, far fewer pegasi here than there were earth ponies. She was hardly surprised, however, as the earth pony tribe always produced the most traders and merchants of the three.

Her thoughts on the beauty of the gathering came to a halt once Grainwood noticed that the unicorn representing the city of Everfree was already delivering a speech. Silently, she took her seat and listened. 

“...and so, the Parliament has decided that in order to cut the rampantly growing prices of food, the government needs to directly control the economy. We suggest the prices be locked at the current level, and increasing or decreasing them be considered an offense punishable by law. The Parliament is already working to introduce this new law. If the pegasi and earth ponies do not vote against it, we are likely to pass this reform within three months.”

“Wait a moment, Keynes.”  One of the pegasus representatives of Mareggen stood up, locking his gaze with the unicorn’s. “Yes, you can lock the price of food, but the losses in the long run will outweigh the momentary gains. If you lock the price of food, the ponies responsible for delivering and maintaining the farming industry will go bankrupt.”

“I don’t think so,” the unicorn replied. “As I said, in times of crisis we need to pass more economic power to the government. They have far more options to deal with the problems we face. I know that you’re a radical free-market zealot, Smith, but you must face the fact that the market will not stabilize itself.” 

Seeing that the representatives were on the verge of diving for each others’ throats, the speaker of the chamber, a tall unicorn called Husher, slammed his staff, ordering everypony to be quiet. All save for Tough Smith suddenly fell silent, but the stallion was far too furious to listen. 

“I’m not even talking about that!” Tough Smith slammed with his hoof in annoyance, completely ignoring Husher. “It was all your fault from the very beginning! You’re responsible for the Gem Inflation Crisis! Who gave Platinum the idea that mining more gems would be healthy for the economy!? I’m surprised that I have to teach you of all ponies the basics of economics and how inflation works. If you’re flooding the market with new gems, their value will decrease exponentially, and the price of everything else grow. As I’m saying this, the inflation oscillates at around 232% percent. No, locking prices is not what we should do.  The government needs to stop interfering with the market and instead focus on the problem of inflation. But to do that…” he glared towards Keynes. “You need to stop mining gems. Completely.”

A murmur spread across the Hall as the unicorn merchants eyed Smith warily. Husher approached the pegasus and screamed in his face that he would throw him out of the chamber if he dared to interrupt again, adding something about ‘respect for the elders’, and ‘the collapse of principles’. Besides that, howerer, Grainwood had to admit that Smith had a point. It didn’t take a genius to understand the principles of inflation. However, there was still one major problem: believing that the government would stop mining gems for even a month was wishful thinking at best. The unicorns would never go for it.

The problem didn’t even exist five, ten, twenty years ago. Back in the Compact Lands, gems were mostly used in the industry and weaponry. Their abilities to hold Arcana, the magic of unicorns, made them valuable to one tribe, but solely decorative for the other two. Several years after the migration to the gemstone-rich soil of Equestria, the gem market had swollen too large, and the stones found other uses. They were a good substitute of local currency. So when unicorn merchants realised that Equestria was so rich in gems that they could be harvested with little more than a bucket and a shovel, they went completely mad and began to fill all the hills and mountains of Equestria with excavations. It worked for several months, but it wasn’t long before the feedback crippled the pathetic scraps of Equestria’s economy.

The atmosphere was growing more tense by the minute. Grainwood found it… disgusting. They acted like the things they were talking about didn’t actually have an impact on typical pony life. Everypony in the chamber knew what inflation was, yet she was sure nopony outside of this mansion understood it in the slightest. GDP? Interest Rate? Margin? Obligation? She was certain that the beggar she met earlier didn’t know a damn about them. And what did these terms actually mean to the local ponies, struggling hard with absurd prices, absurd taxes, and other laws that only grew more and more absurd the farther she read down the list?  Nauseated, Grainwood decided to share her own point of view.

“Mares, gentlecolts, colleagues!” she spoke, standing from her seat. “We have gathered here today to discuss the economic crisis that our nation has fallen into, but I feel we are missing the root of the problem. There is racism in Equestria; rampant racism that brings this nation to its knees. We’re all economists here; if not from trade, then from education.  Even to us, the reason for this state of affairs is clear. Unicorns make up the huge majority of the nobility, as well as the wealthiest class of merchants. They have near-total control over the rules of commerce. The pegasi and their legions are forced to protect our caravans and ships at all times, though they’ve made it clear they don’t enjoy that responsibility. Earth ponies have reasons to complain of their own. They feel that the new government has killed their industries and stifled their businesses with unfair taxes.  I am willing to bet a good portion of you feel that racism in itself is a stupid notion, but the reasons behind it are very much legitimate. Just a few days ago, riots erupted in the city of Everfree because of social unrest; because of racism.

“Why, then, was Equestria even made? Why did we decide to band together? I’ll tell you why! It was because our leaders believed it would work, and they believed that by working together we would achieve more than we could on our own. And, in several ways, they were right. Finally, the hated border toll was eliminated, and I believe I don’t need to remind any of you how annoying that was.”

There were several nods from the entire chamber. The border toll was a fee that all who wished to cross between tribes had to pay. Under the Compact, earth ponies were obligated to pay unicorns just for passing the territory of River Rock, which cost a lot of money.

“We need to do the same thing,” Grainwood continued. “Here we are, merchants of all cities, merchants of all types of goods. I’m selling wood; everypony here knows that. I want to sell it to unicorn merchants without being glared at. The pony tribes united themselves and created Equestria. We need to remember that, and we need to focus on doing the same thing. Because it’s not only about us; the economy strikes everypony, citizens of all settlements, unicorns, earth ponies, and pegasi alike. We need to fight pro publico bono, because if the society is not united and wealthy, we will suffer from it too.”

Several ponies from all three races applauded her speech loudly, yet several glared at her, their eyes sending daggers through her coat. It wasn’t a pleasant feeling.

“I don’t think so, dear Grainwood…” 

The mare felt a chill run down her spine when she heard the rumbling, terrifying voice of the old pegasus merchant. The entire chamber fell silent, looking at the slowly rising form of the pony. Grainwood recognized him immediately.

Cold Steel was an old pegasus with gray fur and a black, short mane with several specks of hoar here and there. He was probably the only merchant that didn’t wear the customary fur coat. Instead, he wore a Cirran senator’s robe, under which Grainwood could see the silvery gleam of armor.

The pegasus’ reputation made him the most infamous pony attending the Tagfahrt. Everypony knew Cold Steel had, at some point, served in the Cirran Legion, though due to an injury he sustained during battle he was forced to leave. The injury itself, leading to a collapsed lung, was the source of his shallow, raspy breathing and the dying wheeze that accompanied his every word. There were many rumors circulating about who Cold Steel actually was. Some said he was a spy sent by Hurricane to keep an eye on the traders. Others whispered that he was one of the supporters of Cyclone’s rebellion who somehow managed to avoid punishment. Cold Steel did nothing to disprove any of those rumors, seeming to revel in them, further fueling the hushed speculations.

He dealt in arms and armor, and he was one of the key suppliers for the Legion. Weapons and equipment weren’t his only wares; Cold Steel also owned several sky forges across Equestria, making him one of the most wealthy and influential merchants in the young nation.

“You see…” the pegasus took a raspy breath before continuing. “I believe that you don’t understand how the hatred between our races is actually beneficial for the economy, and us in particular. Ponies are concerned by the growing prices of food, so they’re throwing their life savings into it now, when the prices are still ‘relatively low’. The ponies are scared that a new conflict is brewing, so they are buying weapons to defend themselves.  They are constructing bigger and tougher buildings to withstand the riots, fires, and floods.

“Racism may be a ridiculous notion for some, but equality is not that much different. Unicorn lands suffered heavily after the creation of Equestria, because they now lack foreign trade partners. The inflation crisis would never have happened if unicorns never joined Equestria. The idea of separating our economies between the formal tribal lands and using regional currencies as means to boost trade is an interesting one I have been thinking about lately, but I guess that’s an issue for another Tagfahrt.

“Before you decide to flood me with questions, accusations, and death treats…” Cold Steel continued, “I was not a lover of the Compact. But if you want to cooperate, the only way to do so is to invite the government to help and guide us. But I guess you value your independence too much to do that, don’t you?” The pegasus’ voice dripped with sarcasm as he sat, marking the end of his toxic speech.

An argument immediately broke out between the government interventionalists led by Keynes and the free-market supporters led by Tough Smith. To be fair, it was still better than the last few Tagfahrts. Well, for now at least. Grainwood simply observed how both sides were blaming one another for the complete failure that was Equestria’s economy. Cold Steel himself wasn’t amused in the slightest by the argument, still wearing the same grim expression on his aging face. 

There was something in Cold Steel’s words that was truly unthinkable to Grainwood. She always considered herself a generous, open-minded, and cheerful pony. At some level, she really liked both unicorns and pegasi, but ponies like Cold Steel were truly scary for her. The mare couldn’t believe such words could escape the elder pony’s mouth. How could racism be beneficial? No, clearly Cold Steel didn’t believe what he said, either. It looked more like the pegasus simply liked to watch two groups of merchants screaming and arguing with each other.

It took several moments for the bickering ponies to notice that a certain pegasus mare had stood up. When they realized who she was, however, the Hall quieted down in an instant.

Legatus Twister was a smaller, relatively unimposing pegasus mare with a brown coat and black mane; both were slightly graying, more from the stress of her work than her age. She wore the robes of a Cirran senator, and a golden sword hung from her side, though only a fool would believe it was actually sharpened. It wasn't her sword that the merchants were afraid of. Twister was the Legion's chief bureaucrat, managing its funds and deployments. Crossing her was a quick way of making enemies not only with the entirety of the Legion, but also her older brother, Commander Hurricane.

And everypony knew what happened to Hurricane's enemies.

“As a representative of the Legion, as well as the Equestrian Parliament at this meeting, I kindly ask you all to shut up,” Twister ordered, eyeing up the arguing merchants. Once the last of them fell silent, she continued. “Thank you. Now first of all, I have to inform you about the recent decision of the Praetorian Council. I’m sorry to inform you that that with the recent outbreaks of violence across Equestria, as well as the problems brewing in Platinum’s Landing, the Legion is forced to reassign its forces to more pressing matters, and as such is unable to provide protection to your trade routes. The Legions simply cannot stretch its forces at this time, especially to protect, and I’m sorry for the choice of words, “such strategically insignificant” settlements as Lubuck, Mareggen, or Mareburg.

“I’m also to inform you of Parliament's decisions pertaining to the issues discussed here,” she continued in the same, crisp tone. “The government recognized the Gem Inflation Crisis as a danger to national security, and as such decided to take appropriate measures against it. That is why Parliament decided to undergo the following administrative reforms to pass the budget and increase the income of Equestria’s Treasury:

“First of all, to revitalize the national economy, Parliament has decided to fund the creation of several new trading routes along the river Trave. Additionally, several new settlements shall be created along the river, as well as around Everfree itself. We hope that will send a positive impulse toward the rest of the economy.

The response was mixed. Some representatives nodded in approval, while others seemed to be full of doubt. Grainwood wasn’t exactly sure what was worrying in Twister’s words. Maybe the suggestion that thanks to these investments, the capital will become far too big a competitor, and other cities will become mere shadows? 

“Secondly, the mayors of several of the most prosperous cities are to raise taxes. Profits from this action are then to be sent directly to the newly created anti-crisis fund. And lastly, we are limiting the production of the Equestrian Mint as well as the mining of gems in several of the largest national gem mines. We hope this will stop the inflation and give time for the two aforementioned reforms to strengthen the economy enough to stabilize the situation. Also, Chancellor Puddinghead is working on a method of bringing the price of food to a manageable level.”

Almost immediately, there was a sudden outburst from the benches belonging to free-market side, who expressed their anger in an entirely unprofessional manner. Twister waited a few seconds so Husher, the speaker of chamber, could calm them down. Keynes and others on the interventionalists side were cheering.

“Additionally, there has been a decision made pertaining to the colonization efforts of lands further from Equestria.” The Legatus changed the topic, focusing her eyes on the representatives of Danzig. “We are overexerted as it is, and too many ponies are trying to colonize lands near the Crystal Union or across the sea. These actions are not only dangerous, but also very costly. Parliament has decided that the costs outweigh the possible gains, and risk creating a diplomatic incident we are not ready to face at this time. Any further attempts at settling outside of the mainland are hereby considered a criminal offence and will be prosecuted accordingly. With all due respect to the representatives of Danzig, we will tolerate this no more.”

The few representatives of Danzig that were in the chamber manifested their indignation by giving Twister vulgar gestures. She ignored them.

“Also, in reference to the speech given by Cold Steel: you, sir, are not as wise as you want others to think you are if you really believe that the Equestrian economy is profiting from racism. The official resolution of Parliament, as well as the Commander Maximus’ official stance, clearly states that all races are equal and any kind of conflict between our three races is a serious threat to the wellbeing of Equestria. Thank you.”  She finished her small speech and sat down.

The news was met with a mixed reception. Although some of the gathered merchants showed support for the proposed reforms, the majority didn’t seem to appreciate them. The tension in the meeting hall was high.  Representatives from Mareburg were even openly discussing the idea of leaving the chamber in a show of protest towards the proposed increase of city tax. Others in turn were bad-mouthing Cold Steel for his earlier statement, the representatives of Mareggen going as far as to call him an “arrogant, racist, death-selling bastard”. Cold Steel himself simply ignored them.

The hall fell silent once again when one of the present unicorns shared her opinion. Grainwood recognized her as Captain Harpoon, the commander of the “Regal Barque”, one of the many trading vessels represented.

“Dear colleagues,” Harpoon began, somehow seeming incredibly tired, like giving her speech was straining and difficult for her. “I know that you have a hard time working out a compromise. I’m not an economist, but I realize this situation is incredibly dangerous to Equestria. The Legatus’s news is truly worrying, but not because of the tax increase. There is no denying it; we’re truly reliant on the Legion’s help in protecting our trade routes, especially with the emergence of the Victual Brothers and their reign over the seas.”

The chamber was filled with murmurs as soon as the name of the dreadful pirate band was mentioned. They were very well known even midland as they terrorized not only the open sea, but even the larger rivers. At the very least, the overwhelming power of the Legion kept them far away from Everfree itself.

“I only ask for one thing,” Harpoon continued. “Whatever agreement you reach, please, for the love of Celestis, remember the crews and captains of your trade ships that lost their lives to the pirate menace. Think about them before giving the Legion orders to abandon us. Thank you.” She finished, sitting back down.

It took some time before the next speaker stood from his chair to give a speech. He was a tall unicorn with a light-brown coat and a black mane. Grainwood recognized him with no difficulty. He was the mayor of Ridge, Shabby Rich, an incredibly powerful stallion. True to his name, he was an absurdly rich trader. Not only was he the mayor of one of the more wealthy cities of Equestria, he was also the owner of several gem mines, a small fleet of trading ships, and several settlements along the richest trading routes in Equestria.

“Dear merchants, colleagues, mares and gentlecolts!” Shabby’s Rich voice was loud and clear, resounding around the chamber. “I think that in times of crisis, we, the proud merchants of Equestria, should focus our efforts on increasing our wealth and careful management of our trade. We’ve just heard an excellent speech delivered by Grainwood…” here he glanced at her. “...about our need to work pro publico bono. As much as I want to agree with her proposal, however, I fear it is not as simple as we might think.  Not, at least, as we are right now. We could do this only if our class had enough power and wealth to survive the cost. The reality is, we don’t have that wealth right now. Because of this reality, I suggest we increase our efforts to expand the trade on the Trave river and allocate money into those branches of industry that will be most beneficial to us.

“The news from the Parliament delivered to us by the Legatus unfortunately put a wrench into this plan,” Shabby continued, looking towards Twister. He was wearing a sad smile upon his lips, but Grainwood could guess it was a false expression. “But hope is not yet lost. If we cannot make the new settlements and expand our trade to the Crystal Union and on the islands, we can focus on rebuilding and expanding our cities. I’m sure our citizens would greatly appreciate if we focused our efforts inward for a change, especially if it would have a direct impact to their own well being.”

Most, if not all of the ponies in attendance nodded at those words, agreeing with the wisdom behind them.

“Let me present my proposition to you, esteemed colleagues, especially to my fellow mayors. Let’s expand our economy and buff the consumption by decreasing the tax in all the cities we rule. If my predictions are correct, and I am willing to bet my life that they are, this should create positive feedback, which in turn will draw in potential investors to our settlements, as well as create a positive economical situation for settlers willing to settle down within our trade routes. But for this to truly work, we need to ally ourselves. We need to do it in solidarity. Everypony with us, or we can forget about all this. There is no other choice. What do you think of that?”  He let the question hang, sitting down at his place.

The whole Hall erupted into cheers of approval. Every merchant, mayor, and representative wanted to express their support of the idea and demand more details as to what exactly needed to be done. Shabby Rich smiled proudly upon seeing such a positive reaction. There was, however, one pony that didn’t seem too pleased about this.

Legatus Twister frowned deeply. What Shabby Rich proposed here was borderline treason in her eyes, and to make matters worse, all the attending merchants seemed agree with his seditious proposition. It took several minutes for the excited representatives to calm down enough for her words to be heard.

“I want to remind you, dear mayors, that this proposition bears the signs of treason.” Twister spoke forcefully, trying to drive the meaning home. “The issue of taxes is regulated by federal laws, and as such you have no other choice but to accept the decisions of the Parliament. I cannot say how the Representatives would react to such an initiative, but just three days ago they passed the edict increasing city tax, so I highly doubt they would be willing to go back on their own decision. You can try to lobby for a change, of course, but again, Everfree has more influence than all of your cities combined.”

This time the reaction was stoic. Grainwood frowned, thinking how to avoid all the problems the government of Equestria was throwing under their hooves. The entire chamber began quietly meditating; no pony dared to break the silence. 

The sound of cracking bones heralded somepony standing, preparing to deliver a speech. All eyes turned in the direction of the sound, falling on the figure of an elderly looking earth pony. With his blue coat and graying mane they recognized him as Suderhoof, the founder and mayor of Lubuck. 

“Mares and gentlecolts. We have gathered here in Lubuck to discuss the economic policies of Equestria and to introduce new trade agreements. At least, that is what we officially are here for.” Suderhoof spoke softly, yet his voice was heard by everypony present. “My esteemed guests, the truth is something far greater. Such trivial matters should not be of interest to us, not in the times we’re in. No, we are here because the safety of our nation is at stake. Equestria is on the brink of anarchy. Empires fall not because they are conquered, but because they go bankrupt.

“The government failed us,” he said more forcefully as he turned to face the Legatus. “You try hard to save Equestria, but you are destined to fail. You are not economists, you are not merchants, and clearly you are not traders. You are politicians, and you fail to understand one simple fact: it’s not the politics that dictate economy, but it’s the economy that dictates politics. Our mighty leaders, Hurricane, Platinum, and Puddinghead do not understand it either. They are wise and clever, but again, they are not economists. Mark my words, Equestria’s doom will not come in the form of a foreign invasion. It will be the ponies you lead that will hang you when they realise how incompetent you are.”

Twister couldn’t believe the amount of nonsense that she heard in Suderhoof’s speech, but when she stood up, she immediately received a glare from the Husher. His expression was easy to read, and the Legatus understood the message perfectly. 

“Do not dare to interrupt,” the speaker seemed to say. “Do not even dare”.

She sat back down, but Twister sent one last hateful glare towards him, indicating that he was going to have problems in the future. Really serious problems.

“What is the Equestrian Nation?” Suderhoof asked rhetorically, not even noticing the tension between Twister and the speaker of the chamber. “I’ll tell you what it is: it’s all the ponies who live in our borders, who live in Equestria. And this is important, my friends. Because if we want Equestria to truly unite all three races, we need to focus on the nation itself. Ponies. Poor and rich, stallions and mares, queens and beggars, merchants and farmers, legionaries and fisherponies. It is the ponies, after all, that are the core of our state. Everything that was built by our hooves, the cities, ships, and farms,  it all came to be because of ponies that helped us. We can’t deny that we are parts of this nation too, and it gives us both privileges and duties.”

The elder pony paused for a moment, as if to gather his thoughts.

“We are no longer here to discuss politics or argue over little things. We are here because our nation is suffering from economic failure. We are no longer here to simply talk about and bash each others’ opinions. It is not only our duty, but our destiny to finally set Equestria on course to a brighter future. I don’t know if you looked at the faces of the citizens here in Lubuck. What did you see? I saw only a lack of hope and disgust. I saw helplessness in their eyes. We can not only give them hope, but also give them prosperity. It is the time to begin a new era of wealth, fortune, and happiness to our kind.

“They say the racism is tearing Equestria asunder. I don’t see it in this chamber, even despite Cold Steel’s speech. And do you know why? It’s because we are representing cities, not races. Look on the Parliament of Equestria! The seats are divided in such way that it’s not possible to make any agreement at all. And now look what we have got here! We have the representatives from Novigrad, Lubuck, Mareggen, Hayburg, Coltland, Danzig, and several other settlements. I see unicorns, pegasi and earth ponies alike, and we have a lot in common; we have common interests, trade agreements and common goals.”

The mayor of Lubuck began to speak with far more passion than when he started. The entire chamber listened with bated breaths, hanging to his every word, excitement painted on their faces.

“It is our Tagfahrt here that is a shining example of what the three races can accomplish together, not the Parliament! And that is why, my friends, it is finally time to take the economy into our own hooves. The age of the Gem Inflation Crisis, the age of mad taxation, the age of astronomical prices of food is coming to an end. To achieve that, we need only do the same thing that the three pony tribes did not so long ago.”

“There were many Hansa’s before, each for one city. Now there will be only one, the Horseatic League, Liga Horseatica, the confederation of merchant cities. Together we shall set a new course, the course to wealth and prosperity. We shall fix the economy of Equestria and help organize it, we shall stop the crisis and division, we will finally defeat the pirates that are threatening our trade. And it is impossible to stop this change, because of one simple reason. Never before has anypony won a war against economy. Steel may Win Battles, but Gold Wins Wars!”

The chamber erupted into excited cheers. The cries of the merchants could be heard even beyond the walls of the mansion. Grainwood joined the chorus, chanting loudly.

“Hansa!”

“Hansa!”

“Hansa!”

Only two ponies didn’t join the cheering masses. Legatus Twister was silently looking over the crowd of merchants, contemplating the next move of the Equestrian government with this unexpected development. She didn’t know what this alliance would change, or if it was a threat to Equestria, but she hoped that it would be the spark that would change the nation.

Cold Steel also was peering at his fellow merchants. He could feel the coming of change; he felt it in his bones. This new and completely unexpected situation threw a wrench in his plans, and the old legionary wasn’t happy about that. And the last words of Suderhoof’s speech; oh, how he wanted to disagree with them. His very soul cried out in outrage, his pride as a soldier wounded beyond recovery.  He would prove how wrong Suderhoof’s words were...











The 63rd Tagfahrt of the merchant towns of Equestria was also the 1st Hanstag, seeing the birth of the Horseatic League. Suderhoof, being not only a gifted economist but also well versed in the Equestrian Codex of Laws, was able to utilize a loophole overlooked during the codification of said codex. In its form at the time, in the face of a “serious threat to Equestria’s continued existence” a “state of emergency” could be introduced by the respective governors and mayors of cities with a population of at least 10,000. However, the exact terms of what was considered a threat to Equestria had never been specified, resulting in the term being interpreted very loosely. Suderhoof used this loophole, claiming that the inevitable failure of Equestria’s economical system was reason enough to enact a state of emergency, after which he proclaimed the forming of a confederation consisting of the towns taking part in the Tagfahrt. Legatus Twister remained neutral throughout this process, which brought a slew of criticism from her political enemies. From a legal point of view, however, there was nothing she could do. Suderhoof had every right to do what he did. There are, however, theories that Twister wanted to show the Parliament that their inaction may lead to losing even more cities and spur them into taking the matter of economics more seriously. Additionally, there was also the possibility that she wanted to ask her brother, Commander Hurricane, for advice before taking any action. This however remains in the realm of speculations.

What we do know for certain is that Legatus Twister herself saw the creation of Hansa as beneficial for Equestria’s financial situation, possibly able to repair the economy. Additionally, having a colonial plan separate from the Equestrian government meant reduced costs of colonial upkeep as well as the lesser possibility of a diplomatic incident with the neighboring Crystal Union.

On the same day the Horseatic League was created, an election to choose a leader of this new faction took place. Suderhoof was chosen to represent the interests of the newly formed political entity as Principes, primus inter pares, the First among Equals. Following this decision, Shabby Rich’s proposition to introduce a flat tax on a lower level than the one currently functioning in the League’s founding cities was put to a vote. With 88% of the votes supporting the idea and 12% abstaining from voting, the reform was passed.

From a political point of view, Hansa was by no means a threat to the integrity of Equestria. Officially it was still a part of the nation, and in the first draft of its basic law it was nothing more than a “corporation” of sorts. The cities forming the League had slightly more autonomy than the one outside of the Hansa, but at the same time they couldn’t count on the full political and economical support from the government. Initially it proved to be a significant problem for the League, limiting its effectiveness on the market, as well as making it a target of many attacks from its political enemies. One of the main critiques of Hansa, the unicorn representative in the Parliament by the name of Tricky Steam went as far as to claim that the Hansa was “a pathetic cover for criminal activity that the merchants responsible for the crisis were running” and “a creative way to avoid paying their due taxes”. 

The Parliament’s attitude towards the League was only one of the problems the organization had to face in its infancy. The Victual Brothers were still a deadly threat to any form of trade in the region, and the rampant poverty of the masses could quickly turn to bloodshed and rebellion. Additionally, there were enemies within their own ranks, with some of the merchants and nobles in the founding cities silently opposing the creation of the confederation. Hansa in that point of its history could quite easily collapse. Nonetheless, the 63rd Tagfahrt became the symbol of a new economic era dawning over Equestria.

- “Wealth of Equestrian Tribes” by Tough Smith