Historically, the Loksenta economy has generated wealth through a commodity-based trading system. Most of the arable land to the West and North of Freyk’s Wall is contained in large estates, most of which are owned by the gentry. These estates generally grow food crops (wheat, barley, and legumes), fiber crops (cotton and hemp), and oilseed crops (primarily rapeseed with some sunflower).
Most of the early noble settlers of Loksenta thought that the raising of food animals was beneath a noble’s station. For that reason, few of their estates contain large amounts of pastoral land. Several entrepreneurial farmers and their financial backers assembled ranches spreading over tens of thousands of acres. These ranchers primarily breed sheep, producing lamb, mutton, and wool. There is a small area in the extreme Southwest that specializes in cattle, providing relatively small amounts of beef and leather.
Outside of the estates and ranches, small farms proliferate. These farms are usually owned and operated by single, extended families or small companies. A few are run jointly by a community. These farms are Loksenta's main producers of fruits, vegetables, and herbs. The most common fruit are apples and grapes, a significant portion of which are fermented to make cider and wine. Many small farms also grow cereal crops and legumes. These crops are always consumed locally.
The vast forests to the South of Freyk’s Wall produce almost all of Loksenta’s lumber. As with agriculture, small producers find it hard to compete with large operations. The major timber and lumber providers are located relatively near Freyk’s Wall and its port. These companies focus on producing goods for export. Smaller companies further West produce goods for domestic consumption.
Minable deposits of minerals are rare in Loksenta. Some copper mines exist in the far West, too close to Borsen’s Gap for the comfort of many of the miners. The Mark of Ebby has a tin mine. The Duchy of Baglit has a silver mine, whose ore is of so low quality that it is often not worth extracting. Significantly, Loksenta has no domestic source of iron.
Trade is the source of most of Loksenta’s wealth. The gentry, ranchers, and lumber barons focus on producing commodities for export. Traders broker the purchase of large consignments of these commodities by merchants headquartered in Freyk’s Wall. Banks also headquartered in Freyk’s Wall finance these purchases. The merchants may resell some of the goods locally, but most are destined to be shipped overseas to markets in Glorien.
The port in Freyk's Wall is constantly busy, with several ocean-going freighters arriving or departing daily and smaller river boats ferrying goods to and from the train yard in the Fan. Selling goods across the sea can be very profitable. But it is also very risky. Some of the larger mercantile companies have their own fleets to transport their goods. Smaller companies and independent merchants may band together to jointly purchase and operate a few ships. Most merchants choose to sell their goods directly to shipping companies, again in deals brokered by members of the Trade Association.
Profits from these sales both repay the bankers and help finance the purchase of imports. The import process is the mirror image of the export process, with merchants buying consignments of imported goods and reselling them in Loksenta. Most imports fall into three categories. The first is manufactured goods that cannot be produced in Loksenta. Loksenta may not have the necessary raw materials, or not enough of them. Leather, leather goods, and furs fall into this category. The second category is finished goods whose quality and craftsmanship few in Loksenta can match. Fine clothes and silver tableware fall into this category. The final category is raw materials not available in Loksenta. Historically, brass, silver, and gold have been the most profitable imports in this category. With the growth of factories in the Fan, the import of iron and steel is becoming increasingly important.
Trade has brought much wealth to Loksenta. It has also brought problems. There is a great disparity in wealth. Goods for export are traded in huge lots. Only the largest producers can create those lots. Only the wealthiest merchants can afford to buy them. Only a few bankers can finance those purchases. This system funnels most of the profits to just a few people. Even mid-level merchants, much more affluent than the most senior of clerks in the wealthiest of the merchant houses, are paupers compared to the leading merchants.
The high cost of living exacerbates this disparity. The highest quality and most efficiently produced commodities are reserved for export. Most Loksentans rely on small, independent farmers and crafters, who cannot benefit from economies of scale. The populace pays much more for basic goods than the cost of those they see going overseas.
The factories being established in the Fan are starting to disrupt this system. These factories produce common goods, such as woolen cloth, much more cheaply than small crafters…if they can get the raw materials. These factories produce items like railway engines and lifts for the East Gate skyscrapers that cannot be produced any other way. The owners of these factories are starting to create sources of wealth that do not rely on trade. They have begun to make their own deals for wood and wool. They have started trying to bypass merchants when buying imports or exporting their own goods. A few are trying to mimic the merchants by going through the Trade Association. As the Association’s success is tied closely with that of the Honorable Order of Merchants, these factory owners have little success. More of them have successfully made deals directly with shipping companies.
The merchants buy and sell individual lots of goods. To keep operating steadily, factories need a regular supply of raw materials. Long term contracts with producers help secure this supply. Many producers also prefer this type of contract, which ensures them predictable customers at predictable prices. As more of their traditional suppliers switch to selling their goods to factories, some merchants are making their own long-term deals with their customers. This practice bypasses the Trade Association and violates the rules of the merchants’ own guild. The Corn Combine has been attempting to bring the stray merchants back in line through a program of intimidation. Men and women have been threatened with physical harm and property has been damaged, but so far the gang has not resulted to direct assaults.
Den of the Red Wolf 