Senators,
It seems that despite Our publishing of the facts of the day, much of the public has chosen to believe rumors about the attack on the Senate last session.
We decided that it were best to develop regulations to create banks focused on lending to businesses, as well as create a few initial state-owned business banks.
And the legions had already been recovering from the wars of the past few years. They continued to replenish. We also had the Scholai Palatinae expand to include a guard cohort.
At the same time, We began sending diplomatic envoys to the Ming. And soon thereafter, reactionaries actually rose in revolt in Varna, Athens, and La Rochelle. They were swiftly put down by the legions.
The wars and the rebellion had distracted us, and Poland was able to wrest Livonia from the Empire's influence. They were able to convince them to join in union, forming the Polish-Lithuanian Commonwealth. We are not certain why they decided to not included references to the Livonian Order's part in the history in their name and instead chose to focus on culture for the name.
The whole year, We assessed the employment of Our citizens, and began creation of several new factories throughout the Empire. By October, they were ready, the legions had been expanded, and all was at rest. So, though we were still at war with Mexico, We reduced funding to the army and navy and lowered taxes.
In early 1855, Mexico tried to claim bankruptcy. But We could not stand for this, and so added the repayment of debts to Our list of demands for peace. By February, they sent an emissary agreeing to this demand, as well as all of the UTA's demands for land, and so We agreed to this peace. As for the reasoning behind the UTA's particular demands, we have no idea what they were thinking. Perhaps they intended to isolate Mexihcan lands? Perhaps they anticipated returning to war soon and seized the richest of the lands they ultimately intended to take?
In addition to the UTA's expansion, England had expanded their influence into the Amazon.
And Hungary had expanded at Germany's expense.
In more peaceful uses of diplomacy, We made moves to solve our constant dye supply problems by courting Ceylon, and in 1855 We were able to add them to Our sphere of influence.
And Our banking regulations were completed. We followed these up be asking Our best writers how to inspire both nationalism and imperialism in Our citizens, as needed.
When we sought to continue expanding the Empire's influence in the eastern islands, well, Senator Favero, would you share your report?
Senator Michelangelo "the Artist" Favero, Duke and Governor of Italy:
I am certain that many of you remember back to that fatal day that Constantinople was attacked? The group responsible, the so-called Cult of Chernobog or whatever they may call themselves, has been causing mayhem across the Empire ever since their first attack. We do not know why they do this other than that they wish to cause war, violence, and chaos throughout the Empire and the world. These pagans are clearly mad, but that does not mean they are not clever.
Recently, at the behest of the Empress, a group of diplomatic advisors and generals met to draft up plans for a potential war with Hedjaz over the northern Philippines. We had verified information that the Cult of Chernobog had set up a large base within Hedjaz’s land there to use to harass the Empire with impunity. This meeting was of the utmost secrecy, yet within a week of convening, the plans drafted at that meeting were leaked to the Hedjazi authorities in the Philippines. This is an embarrassment to the Empire. Even our best diplomats had not been briefed on these plans yet and were thus unable to stem the backlash we faced from this debacle. Our reputation has been tarnished because of this incident, yet the circumstances surrounding it are much more sinister.
The Empress requested that I look into the incident, since it was suspected that cultist activity was involved. I had my best men investigate any leads, and after much searching were able to root out a lair of this Cult of Chernobog in one of our holdings in Southeast Asia. It had long since been abandoned, most likely because they knew we were coming beforehand, but they left behind a couple documents linked to the original plans for the war with Hedjaz. It is clear that these pagans are still within our ranks, stealing our best kept secrets and ready to use them against us. Who knows when they’ll strike again?
It is unfortunate that the cultists were not caught red-handed, for it made the eventual declaration of war more damning. Hedjaz knew we were coming and any explanation we gave for war only sounded faulty to the world. The Cult of Chernobog has made us look like war-hungry fools, even as we move to destroy them. I can only hope that one day we root out this foul pagan group once and for all so that the Empire can continue on in peace.
While this was happening, the Empire of Mexico experienced a revolution, thrusting a liberal party into power. The UTA took advantage of this to declare a war for Arizona. They asked us to join, and We agreed. However, as Mexico still had no army, We sent no legions.
By late December of 1856, the Empire was prepared again for war with Hedjaz. XI. Legio began the usual sea circuit, defeating an army in Tacloban.
Meanwhile, I. Legio and XIX. Legio made the usual invasion of Hedjaz proper, with XIX. Legio diverting to defeat an army attacking Beersheba. Enthusiasm for war was high, with the state newspaper attempting different techniques of instilling the sentiments We desired. But this was a short war, with Hedjaz agreeing to peace in March of 1857.
By the end of this war, We had learned better how to manipulate both Nationalist and Imperialist notions to demonstrate the superiority of the Empire and of its citizens.
We further sought to better understand the past glory of the Empire by sending archaeological expeditions to Egypt.
The philosophers of the University of Constantinople claimed that society had discoverable laws as in natural philosophy, so We funded created chairs for several new philosophers to seek these laws.
Late in the year, we added Bastar to Our sphere of influence, securing even more dye for our factories.
The philosophers had not been able to find simple laws governing the way society operated.
However, other philosophers proposed that society could be described as a series of overlapping functions. So chairs were funded for them.
In the beginning of 1858, Russia declared war on Iraq, claiming more eastern Siberian land as theirs. They eventually won the war, also giving Persia some of Iraq's land as prize for assistance in that theater.
And we faced another rebellion. This time Jacobins, who rose in Aurillac. We raised funding to the legions so they would be put down with minimal harm. This increased funding to the army proved well when Bavaria insulted one of Our ambassadors.
Bavaria had recently won wars against Germany and Hungary and had expanded at their expense. We decided it was well to put them in their place and declared war. Bavaria's armies flooded across the Alps, and XXVII. Legio sought to stem the tide. Meanwhile, XXIII. Legio swept in from the east, chasing a Bavarian army before finally confronting and completely defeating them in the province XXIII. Legio had first been occupying. And X. Legio stuck against Bavaria's allies in Thuringia in the west. The fierceness of the Imperial attack stunned Bavaria, and they soon surrendered.
When corruption in the state industrial departments was shown, We began investigating, eventually ending subsidies to the worst factories. As expected, other factories were able to provide jobs to the displaced workers.
The philosophic investigations into the functions comprising society were completed, and while useful still did not provide a complete picture of society.
However, the recent wars had hurt the Legions. Not from the fighting, but again from disease, harsh weather, and the like. So We again sought for natural philosophers to seek solutions to these problems by finding better materials for uniforms, gunpowders, and other supplies.
As they did so, We continued slowly closing clipper factories, always ensuring that the displaced workers had new jobs, even encouraging new industries better fitted for their regions.
With the closing of many clipper factories, We thought it prudent to have the navy develop designs for steamers to replace the Empire's old Man-'O-War ships.
Finally, there seems to be sufficient support to make political reforms in the Empire. Though We are firmly of the opinion that elections are not needed. We are able to correctly select the best Senators to advise Us.