^
"Free Hold" is kind of difficult to explain, because we have no real analogy to it here on our own Earth. Basically, think of it as another way to say "Colonies", in a similar context to how America was once a colony of England... we had our own states and territories, but were governed by a single King. The USA itself now, could also be used as an analogy, in that all our states fall under the authority of the President and the Federal Government. However, that is where such an analogy would stop, because in other ways, the Free Hold is more like a Confederation, meaning that states and territories are completely free to cede from the Free Hold and set themselves up as independent governments at any point, so membership in the Free Hold is voluntary. That's the best way I can describe it.