novelno Chapter 300 - 150: New Pennsylvania
Chapter 300 - 150: New Pennsylvania
Leo had booked the entire conference room floor of a five-star hotel in Pittsburgh.
Seven or eight people with solemn expressions sat around a long table. They were a group of economics professors from Carnegie Mellon University, financial experts from the Wharton School of Business, and several top lawyers well-versed in Pennsylvania commercial law.
This was the "brain trust" Leo Wallace had assembled at a high cost.
Leo sat at the head of the table, a massive flowchart spread out before him.
It was the blueprint for the "regional closed-loop credit" system he and Roosevelt had conceived late one night.
"We need to add a firewall at this node."
A gray-haired economics professor pointed to the "clearing center" module on the diagram, his tone rigorous.
"Mr. Mayor, if you want to use this ’Alliance Credit Note’ as a universal means of payment among the seven cities, you must circumvent the State Banking Act’s definition of currency issuance."
"We can’t call it a currency, or even a note," the lawyer next to him quickly added. "We have to define it as a ’transferable supply chain debt certificate.’ Legally, this falls under the category of inter-enterprise commercial contracts, which are outside the jurisdiction of the state’s banking and securities departments."
"But that’s not enough," another financial expert said, pushing up his glasses. "To ensure liquidity, we need a market maker. The Pittsburgh City Government must commit to redeeming these certificates with its five hundred million US Dollar cash reserve under specific conditions, such as at the end of a quarter or the end of the year."
"Only then will the steel mills in Erie and the cement plants in Scranton dare to accept this paper."
Leo listened to their discussion, his pen flying across his notebook.
This was what he had to do.
He was going to carve out a moat, right outside the existing financial system.
He would establish a set of financial rules that belonged solely to the Rust Belt.
It was an insane plan, a tightrope walk.
"Good."
Leo looked up, his gaze sweeping over the experts present.
"Design it according to this line of thinking. I want a complete, compliant implementation plan with no legal loopholes. I want to see it on my desk within a month."
"But, Mayor, that will require..."
"No buts," Leo cut off the professor’s hesitation. "I’m paying you to get things done, not to tell me about the difficulties."
Just then, Leo’s phone suddenly rang.
The shrill ringtone seemed particularly jarring in the conference room. Leo frowned and handed the phone to Ethan.
Ethan answered the call.
"This is Hawke."
After listening for only two seconds, the color drained from Ethan’s face.
He whipped his head around to look at Leo.
"Mayor, it’s Erie."
Ethan covered the mouthpiece, his voice hushed.
"Mayor Ron Smith is screaming. He says if he can’t talk to you immediately, he’ll announce he’s pulling out of the alliance."
Leo’s brow furrowed slightly.
He motioned for the experts to continue their discussion, then walked out of the conference room and took the phone.
"Ron, it’s Leo. The advance payment for the steel was wired yesterday. Is there a problem?"
"Money?! You have the nerve to mention money to me?!"
The hysterical roar of Ron Smith came through the phone, accompanied by the loud SLAM of a hand on a table.
"Leo Wallace! You’ve ruined me! You goddamn lunatic!"
"I never should have believed your bullshit! I never should have been so greedy for those orders!"
"Ron, calm down." Leo’s voice remained steady. "What exactly happened?"
"Ten minutes ago! Just ten minutes ago!"
Smith’s voice trembled.
"A special investigation team from the Pennsylvania Department of Community and Economic Development showed up. They’re holding an administrative review order for our ’Regional Economic Mutual Assistance Memorandum’!"
"They’ve seized on our steel procurement contract!"
"They’re claiming this large-scale, cross-city procurement violates the state’s fair trade principles and are even implying it’s an illegal, targeted transfer of benefits!"
Smith sucked in a sharp breath, his voice jumping an octave.
"Leo, you know we had our lawyers comb through every statute before we signed. We aren’t afraid of an investigation, or even a lawsuit. I can play their administrative games for a year!"
"But these bastards are too vicious!"
"Using that as a pretext, they directly applied for a preventative asset seizure! They froze the third-party escrow account that was specifically set up to receive the procurement funds from Pittsburgh!"
"Frozen! It’s all frozen!"
"You have to understand, to rush your order, the United Steel Factory in Erie is running three shifts, machines going twenty-four hours a day! They’re burning through money every day! Raw material suppliers are demanding payment, and thousands of workers are waiting for their paychecks next Friday!"
"Now the money is stuck in the account, untouchable. What am I supposed to give them? The investigation order from Harrisburg?"
"If I can’t make payroll next Friday, those workers will burn me and the factory to the ground!"
"This steel deal is too risky, I can’t afford to play this game! I’m pulling out of that damned alliance! Right now! At least I can still cut my losses!"
"Don’t call me again! You can explain it to Harrisburg yourself. Don’t drag me into this fire!"
"Ron, listen to me..."
BEEP... BEEP... BEEP...
The line went dead.
Leo stood with the receiver in his hand, listening to the dial tone.
Before he could even put the phone down, it rang again, shrill and sharp.
This time, it was Joe Byers from Scranton.
"Leo..." Byers’s voice sounded like he was on the verge of tears. "The State Attorney General’s office is here. They’ve launched an anti-unfair competition investigation into the cement procurement from Pittsburgh."