Chapter 64: Marcus’s Reforms (2)
Chapter 64: Marcus’s Reforms (2)
Marcus stepped onto the platform, feeling the focus of the entire crowd on him.
In front of him stood the praetor Silanus and eight jurists who had helped him suppress the rebellion. They regarded him with admiration and gratitude.
Behind them, twelve aediles maintained skeptical expressions, doubtful about the practicality of proposals from a young noble who had been shielded from the harsh realities of Rome.
Marcus was undeterred by their scrutiny. He scanned the audience with confidence and composure, and some senators let out faint sighs of admiration.
Brutus, Curio, Cassius, and several other young men, all allies, stood behind Marcus, their faces reflecting determination and resolve.
The noise in the square hushed, and a serious, solemn atmosphere settled over the crowd.
Marcus’s calm, powerful voice soon resonated through the square.
“Esteemed senators, beloved citizens of Rome, I thank you deeply for attending this rally. I am Marcus Licinius Crassus II, and I am here to present an important proposal for Rome’s future.”
Eloquence was a crucial skill for a Roman politician. While Marcus lacked Cicero’s elaborate rhetoric, he possessed a clear, trustworthy charisma, honed through his privileged upbringing and hard work.
Marcus continued his speech.
“Recently, Rome faced a grave crisis due to a sinister conspiracy. As you know, Catiline, the praetor, planned to overthrow Rome. Fortunately, thanks to the Senate’s wise response, the rebellion was quelled. Yet, the damage Catiline inflicted was not superficial.
Debtors who once had hope now face despair, and creditors lose sleep over their anxiety. While Catiline faced justice, the root problem remains unresolved.”
The square fell silent, every ear attuned to Marcus’s words.
Marcus gestured towards Eustus, who stood waiting behind him.
“This man, originally one of Catiline’s accomplices, could not tolerate Catiline’s extreme actions and made a brave decision to expose the conspiracy.
Many who followed Catiline were not bad people; they were desperate and clung to his empty promises. If we do not address this issue, another Catiline may rise. We managed to prevent this one with divine aid, but future outcomes are uncertain.”
At this point, Alosius, one of the jurists, stood up.
“Are you suggesting we should appease the debtors’ discontent? Are you proposing something like debt cancellation?”
Alosius, a prominent asset owner with many debtors, was particularly sensitive to this issue.
Marcus answered promptly, “I do not propose anything as extreme as full debt cancellation. As a creditor myself, I understand the burden of debt.
My aim is to ensure that Rome’s economic system functions more smoothly. To this end, I have devised various measures with the help of experts, my distinguished colleagues, and my respected father. I will outline these measures now.”
The creditors present visibly relaxed, reassured that Marcus did not intend to incite unrest.
Marcus began with a reform that was likely to meet minimal resistance from creditors.
“First, we must address those burdened by excessive debt—specifically, those who have repaid their principal but continue to struggle with high interest rates.”
As Marcus spoke, Cassius unfurled a scroll of parchment.
“Our investigation revealed many debtors suffering under usury with interest rates exceeding 40%. One citizen, Publio, had to pay more than four times his principal and, unable to cope with the accumulating interest, was forced to sell his land.”
A citizen rose from his seat, visibly distressed.
“I am Publio! What he said is true. My wife was gravely ill, and I needed money urgently. The moneylender, aware of my situation, charged an outrageous 49% interest. Desperate, I had no choice but to borrow and ended up with an unmanageable debt.”
“Tsk tsk tsk… There’s no one as bad as them in the world,” someone murmured in response.
“Isn’t a 49% interest rate essentially charging half the principal at once? This is nothing short of theft!”
An outcry erupted from both citizens and nobles alike. Charging exorbitant interest rates was not uncommon for large loans in this era. For instance, Brutus had once angered Caesar by demanding 48% interest from Soca. However, imposing such high rates on fellow Roman citizens was widely deemed excessive.
The equestrians engaged in such lending lowered their eyes, fearing exposure, but Marcus chose not to name them. This was not the occasion for shaming or blaming.
“We must support these innocent debtors. High levels of bankruptcy result in diminished tax revenue. To ensure a stable budget, we need to safeguard our reliable taxpayers. Therefore, I propose canceling the debts of those who have already repaid more than their principal. Additionally, we must establish a legal limit on interest rates to prevent future abuses.”
“Woo-hoo! That’s right!”
“Let’s follow the noble lord’s proposal!”
Applause and cheers erupted from all corners, and the citizens’ enthusiasm was palpable. Even the nobles expressed no objections. The equestrians were willing to accept this, as it was a fair compromise—they had already recovered their principal, so it was not a loss for them.
However, there were concerns about the proposed legal limit on interest rates. Alosius, who had previously questioned Marcus, stood up again.
“While alleviating the burden on heavily indebted citizens is a commendable goal, imposing an interest rate cap requires careful consideration. High rates are often set because the risk of non-repayment is high. Lowering these rates arbitrarily might discourage creditors from lending money altogether.”
“That’s a valid concern,” Marcus acknowledged. “I have prepared a countermeasure for this issue. But first, let me elaborate on the debt relief plan.”
Alosius returned to his seat, impressed by Marcus’s smooth response. He was genuinely concerned rather than trying to find flaws and felt confident that Marcus had done thorough research. He decided to listen to the full proposal.
As the crowd’s excitement subsided, Marcus continued.
“I am introducing a new system called bankruptcy and personal rehabilitation.”
In legal terms, bankruptcy involves distributing the debtor’s assets among creditors when they cannot repay their debts. Personal rehabilitation allows for a reduction of the debtor’s obligations to an amount they can reasonably repay.
Both systems involve some loss for creditors. In bankruptcy, creditors may recover only a fraction of what they are owed, while personal rehabilitation reduces debts to a manageable level, resulting in a loss for creditors.
Marcus emphasized that these policies were not about forcing unilateral sacrifice on creditors.
“Debtors who cannot repay their debts will eventually abandon their obligations. Some may even resort to desperate measures or flee. Those who cannot repay even after selling all their assets contribute to a growing number of insolvents, reducing Rome’s population. Fewer taxpayers mean higher indirect taxes, leading to increased tax resistance and further population decline. This creates a vicious cycle.”
“So you propose breaking this cycle by accepting losses as creditors?”
“No. Rationally speaking, losses from bankruptcy and rehabilitation are already unavoidable. By encouraging debtors to continue repaying, we can recover some realistic amount of money. In essence, it’s about minimizing losses that are inevitable.”
“Hmm… That does sound reasonable…”
Most senators and knights agreed, and even the critical plebeians admired Marcus’s clear and reasoned explanation. Marcus had preemptively addressed potential objections and effectively defended his proposal.
“Of course, many of you might be concerned about potential abuse of this system by debtors. Your concerns are valid. This system could indeed burden creditors, so we must ensure thorough investigations and reviews. Additionally, we need a law to penalize those who conceal their assets and exploit the system.”
“Hm…”
“It does seem rational…”
The citizens' response was clearly positive, and even the more conservative elders showed no outright opposition.
Marcus continued with confidence.
“This proposal is not about forcing one side to bear the brunt of the problem. By alleviating excessive debt, debtors will regain their motivation, creditors will minimize their losses, and the state will maintain a stable tax base. It’s not about who sacrifices but about everyone working together for the betterment of Rome.”
“But what about the debts that have already accumulated? Even with bankruptcy and rehabilitation, won’t creditors still face significant losses?”
Cato, who had been silent until now, raised a concern.
His question was not purely oppositional but stemmed from genuine doubt.
Marcus had a contingency plan for that.
“That’s why it is crucial to implement this system and push for reform now. There is no better time to do it.”
“Why now?”
“Firstly, Catiline’s rebellion has created a nationwide consensus for reform. While no policy can please everyone perfectly, the existing consensus makes it easier to find common ground.”
“I agree with that. But I’m still not sure how this addresses my concern.”
“The second reason will clarify this. Next year, Rome will experience an unprecedented budget surplus due to large war reparations and taxes from newly organized provinces in the east. No one anticipated such a substantial increase, and there is no plan yet for its allocation.”
“So I propose that we use part of this surplus for financial reform. If the state compensates for some of the initial losses creditors will face, it should help minimize dissatisfaction.”
Applause erupted from the knights’ sections. They had no reason to oppose if the state covered their losses. Most senators agreed as long as the budget was secure. The timing seemed ideal for reform, with social consensus and sufficient funds.
Marcus knew, however, that this was only addressing the immediate aftermath.
He needed a fundamental solution to prevent a recurrence. Limiting interest rates was not enough.
‘Land reform is urgent, but it faces strong opposition.’
The root cause of farmers' decline was the land monopoly held by the nobility. Instead of creating tenant farmers, the nobles operated vast estates with slaves. Reforming land laws and promoting independent farmers was necessary, but this was a contentious issue. Land reform had long been a point of contention since the time of the Gracchi brothers.
Caesar would eventually address the land reform issues, so Marcus didn’t need to rush that matter. Instead, Marcus chose to focus his efforts on financial reform for now.
“I believe that this reform will resolve most of the current issues. However, without structural changes, the number of bankruptcy applications will continue to rise. We need to address this.”
“Are you suggesting more radical reform than what is currently proposed?”
“Yes. This is crucial, and I am confident that I have ample evidence to support it.”
He paused to capture the public’s attention, then unfurled a scroll he had received from Curio, ready to unveil a significant proposal.