The first test of the new tax system came two weeks later when Silas personally visited Goodwife Martha's pottery shop to observe the implementation process.
The shop was located in the artisan quarter of Ironhold, a section of the city that had once bustled with activity but now showed clear signs of economic distress.
"Your Majesty," Martha said with a respectful curtsy, her surprise at the royal visit evident in her expression. "I wasn't expecting... that is, we're honored by your presence."
"I wanted to see how the new tax assessment process works in practice," Silas explained, gesturing toward the tax assessor who had accompanied him. "Your shop was one of the examples we used when designing the new system."
The assessor, a competent woman named Elena Brightwater who was distantly related to Lady Elara, began her evaluation by examining Martha's actual sales records rather than relying on historical estimates.
The process was more time-consuming than the old method, but it produced a tax assessment that reflected the shop's real economic circumstances.
"Based on your current sales volume and pricing, your monthly tax obligation would be twelve silver crowns rather than the thirty-eight you've been paying," Elena announced after completing her calculations.
Martha's eyes widened with a mixture of relief and disbelief. "Twelve silver crowns? But that's... that's actually manageable. I could pay that without having to choose between taxes and purchasing clay for next month's production."
"That's exactly the goal," Silas confirmed. "A tax burden that allows businesses to operate sustainably rather than forcing them into a cycle of decline."
But the real test came over the following weeks as the new assessment process was implemented throughout the kingdom.
The results were mixed but generally encouraging. Most businesses saw significant reductions in their tax burdens, which allowed them to reduce prices, increase production, or invest in improvements.
Government revenue did decline as predicted, but the decline was less severe than the worst-case projections.
"The preliminary numbers are promising," Lady Elara reported during their monthly economic review. "Business registrations are up fifteen percent, and several shops that had been considering closure have decided to remain open. We're seeing the beginning of economic stabilization."
"But we're also seeing the predicted revenue shortfall," Chancellor Marcus added, his concern evident. "We've had to defer maintenance on several government buildings and reduce funding for some provincial services."
This was the inevitable trade-off that came with economic reform: short-term costs in exchange for long-term benefits. Silas had expected it, but experiencing the reality of reduced government capabilities was still difficult.
"The question is whether we can accelerate the economic growth enough to compensate for the revenue reduction," Governor Aldwin observed. "The rural communities are responding well to the tax relief, but they need infrastructure improvements to really capitalize on the opportunities."
This brought them back to the fundamental challenge of funding investments that would stimulate economic growth. The kingdom needed to spend money it didn't have in order to create the economic conditions that would allow it to generate the revenue it needed.
"We need to think creatively about funding sources," Silas decided. "What assets do we have that could be leveraged to generate investment capital?"
The answer came from an unexpected source.
During a routine review of the royal treasury's contents, they discovered a collection of historical artifacts and artworks that had been accumulating for generations.
Most had little practical value for governing the kingdom, but several pieces were valuable enough to attract interest from collectors in other kingdoms.
"The Aurelian Dominion has expressed interest in purchasing the Sunburst Tapestry," Lady Elara reported after conducting discreet inquiries. "They're offering eight hundred gold crowns, which would fund several infrastructure projects."
"And the Verdant Concord is interested in the Crystal of Seasons," Chancellor Marcus added. "Their offer is six hundred gold crowns, plus a commitment to provide agricultural expertise for our farming communities."
Silas felt conflicted about selling pieces of the kingdom's cultural heritage, but he also recognized that preserving artifacts was meaningless if the kingdom itself didn't survive. "What's the total value of items we could sell without compromising our essential cultural identity?"
"Approximately two thousand gold crowns," Lady Elara calculated. "Enough to fund the harbor restoration project, upgrade equipment for several key industries, and establish a reserve fund for emergency situations."
The decision to sell portions of the royal collection was controversial, with Duke Aldric arguing that it represented an abandonment of the kingdom's traditions and heritage. But the practical benefits were undeniable; the influx of capital allowed them to begin infrastructure projects that had been delayed for years due to a lack of funding.
"The harbor restoration alone will create employment for over two hundred workers," Governor Aldwin reported as the project got underway. "And the improved facilities should attract merchant traffic that will generate ongoing tax revenue."
The economic reforms were beginning to show results, but Silas understood that they were still in the early stages of a long-term transformation. The kingdom's economy had been declining for years, and reversing that decline would require sustained effort and careful management.
"We're making progress," he concluded during their quarterly economic review. "But we need to maintain momentum and continue adapting our approaches based on what we learn from implementation."
Lady Elara nodded, her expression reflecting cautious optimism. "The business community is starting to believe that recovery is possible. That confidence is itself a valuable economic asset, people are more willing to invest and take risks when they believe the future will be better than the present."
As Silas reviewed the economic data that evening, he felt a sense of cautious satisfaction. The new tax system was working, infrastructure investments were creating employment and improving productivity, and the kingdom's economic trajectory was beginning to stabilize.
They were still far from prosperity, but they had stopped the decline and begun the slow process of building a sustainable economic foundation.
The challenge now was to maintain the momentum while managing the political and social changes that came with economic transformation. Success would require not just good policies, but also the ability to adapt those policies as circumstances changed and new challenges emerged.
But for the first time since taking the throne, Silas felt confident that Eldoria's economic future was brighter than its past.