That evening, reviewing documents after returning to Kangning Palace, Hyang let out a snicker.
“Given Ming’s current situation, their emperor must want to abdicate the throne.”
Hyang’s joke was reality.
In the deepest part of the Forbidden City, at the ancestral temple housing the tablets of previous emperors, Emperor Jingtai’s anguished cries rang out morning and evening.
“What should I do! Please give me an answer!”
Ming’s biggest problem was finances.
Proper state operation required sound finances, which naturally meant maintaining balance between revenue and expenditure.
However, after the war, a huge hole had opened in Ming’s revenue.
With the Jing-Hang Grand Canal cut and most central regions devastated, even the north-central industrial zones couldn’t function properly.
Another major revenue source was Jiangnan’s granary region, but proper revenue wasn’t forthcoming due to merchants leading price manipulation.
Taxes had become an enormous burden for farmers who had sold their grain at rock-bottom prices.
Struggling to secure funds for military salaries and supplies for troops maintaining the northern front, Emperor Jingtai proposed a solution to his ministers.
“What about printing large quantities of currency?”
As soon as Emperor Jingtai’s proposal came out, all ministers, led by the Cabinet Supervisor, answered in unison.
“Absolutely not!”
“It must not be done!”
“Why not!”
To Emperor Jingtai’s almost hysterical cry, the Cabinet Supervisor explained the reason with an earnest expression.
“Your Majesty! Currency can only exist as currency when it can be exchanged for goods of equal value to the amount printed on it. The court’s current situation makes this impossible! If we print currency regardless, people will trade based on the paper’s weight rather than its printed value!”
“Urgh…”
Emperor Jingtai could only groan at the Cabinet Supervisor’s protest.
The Cabinet Supervisor and ministers could oppose so strongly because of the chaos caused by the Jiaochao (交鈔, paper currency) during the late Yuan Empire and the harmful effects of paper notes during the Yongle Emperor’s reign.
In the late Yuan period, Jiaochao was recklessly issued to cover increasing military expenses and insufficient revenue. Eventually, its value plummeted, leading to price instability.
More Jiaochao was issued to counter rising prices, and finally, when exchanges were suspended, it led to catastrophe.
Ultimately, the high inflation caused by excessive Jiaochao[1] issuance became one factor in the Yuan Empire’s downfall.
The paper notes issued during the Yongle Emperor’s reign were similar. Notes issued in large quantities due to the Yongle Emperor’s frequent expeditions wreaked havoc on Ming’s economy.
Given these precedents, Ming was extremely cautious about currency management. However, currency operation was unavoidable. Ming’s vast territory made collecting and managing taxes in kind problematic.
Therefore, as an alternative solution, they reorganized the Two-Tax System inherited from the Tang period and began implementing payment of taxes in silver rather than in kind.
At this time, information arrived that Joseon had succeeded in currency management.
Hearing this, Emperor Xuande actively decided to implement currency operations.
While receiving silver was more convenient than goods in kind, silver was still not easy to store or carry. However, paper money was convenient to carry. Though vulnerable to water and fire, individual misfortunes after circulation could be treated as personal problems and ignored.
With active industrial development and currency circulation under Emperor Xuande’s strong will, Ming’s economy entered a renaissance.
This opened Ming’s golden age, which later Chinese historians would call the “Xuande Prosperity”[2].
Even while actively managing currency, Ming officials didn’t forget the lessons left by Jiaochao and the teachings from Joseon.
-Paper currency’s survival requires guaranteed exchangeability.
To maintain this iron rule, Ming’s court diligently accumulated silver. They developed silver mines throughout the Central Plains and secured silver as payment in foreign trade.
This silver reserve ensured Ming currency’s safety.
Unfortunately, defeat in the war sparked by Emperor Xuande’s wrong choice cast a dark shadow over Ming currency, even as it had opened the golden age of “Xuande Prosperity.”
Large quantities were issued to fund war expenses, and massive amounts of silver drained away to pay war reparations demanded by Joseon.
“Then what do you consider the right course?”
To Emperor Jingtai’s question, the Cabinet Supervisor immediately replied.
“Though it will take considerable time, we must follow the proper path.”
“The proper path?”
“We must increase mining output from silver mines nationwide while simultaneously enforcing strict management to prevent criminals from embezzling silver. Additionally, we must follow the principle of adjusting expenditure to revenue to reduce indiscriminate spending.”
Hearing the Cabinet Supervisor’s answer, Emperor Jingtai immediately pointed out the problem.
“Adjusting expenditure to match revenue certainly sounds good. However, considering the current situation, that’s difficult to maintain. The Grand Canal’s restoration is already an issue – won’t this take even longer? Won’t revenue normalization be delayed the longer canal restoration takes?”
“We must reduce state expenditure.”
“We’ve already cut to the limit. Do you know what my dining table looks like now? It resembles a peasant’s table. What more can be cut? What remains relates to national defense – surely you’re aware of the northern situation?”
At Emperor Jingtai’s question, the Cabinet Supervisor swallowed hard before continuing.
“I stake my life on what I’m about to say to Your Majesty.”
“I will listen. Speak.”
“We must pursue peace with the north.”
“Peace? Peace you say!”
Emperor Jingtai’s voice carried a sharp edge.
“Is the northern situation our fault? Isn’t it because those vicious Oirats are eyeing our northern territory? Yet you say make peace?! Don’t you know how much we would lose?”
“I do know. However, in the current situation, peace is the only answer. What they want isn’t our territory. It’s about the trade taxes we levy on their merchants and restrictions on trade items. If we lower or abolish trade taxes and open trade to almost all items except gunpowder, they will immediately agree to peace. Once peace is achieved, we can reduce the excessive troop deployment in the north and redirect that manpower to restoration work. Not just restoration sites – we can also deploy sufficient personnel to silver mines and their transport routes.”
“Hmm…”
Seeing Emperor Jingtai containing his anger and listening, the Cabinet Supervisor spoke more forcefully.
“Our Ming’s current situation is like a candle in the wind. To overcome this crisis and avenge ourselves against Joseon, which now calls itself an empire, we must not only endure with patience but also accept the humiliation of crawling between someone’s legs.”
At the mention of the historical tale about Han Xin, the great Han dynasty general, Emperor Jingtai heaved a long sigh.
“Sigh… You say we must suffer another humiliation?”
“With my foolish abilities, this is the only solution I can see.”
At the Cabinet Supervisor’s response, Emperor Jingtai looked around at the others. Seeing ministers only pressing their foreheads to the ground silently, he let out another long sigh.
“Sigh… Draft a more detailed plan.”
“We receive your command!”
Seeing Emperor Jingtai backing down, the Minister of Revenue stepped forward.
“Your humble servant stakes his life to address Your Majesty.”
“I will listen. Speak.”
“Looking at the people’s situation, many suffer due to some unscrupulous merchants.”
To the Revenue Minister’s words, Emperor Jingtai sighed again and replied.
“I know from reading the memorials. I’ve heard many are taking excessive profits as middlemen. Though I want to execute them all immediately, regrettably, circumstances don’t allow it.”
The Revenue Minister immediately continued.
“If peace with the north is achieved, we can resolve this. We can deploy some returning troops to punish them. This would serve as both warning example and somewhat fill our depleted finances.”
“Oh?”
Emperor Jingtai straightened and his eyes gleamed at the Revenue Minister’s words. However, the Justice Minister raised an objection.
“False accusations could harm innocent people!”
Despite the Justice Minister’s opposition, the Revenue Minister stood firm.
“Such damage is acceptable to escape this crisis. And merchants will do anything for even a bit more profit. How many truly innocent ones are there? Even now, rumors of bribing local officials to cover things up openly circulate from Jiangnan to the Forbidden City.”
“Aren’t these merchants surrounded by thugs calling themselves martial artists or jianghu folk? This could trigger massive bloodshed.”
“Hmph!”
Snorting lightly at the Justice Minister’s words, the Revenue Minister bowed to Emperor Jingtai and continued.
“The righteous people who shouted ‘Loyalty, Righteousness, and Chivalry’ during the wakō raids are nowhere to be found – only thugs remain. Leaving them be insults true righteous people, so they must be punished more severely. Though their martial arts may be strong, they’re mere mantises trying to stop a chariot before firearms!”
“Hmm…”
At the Revenue Minister’s forceful argument, Emperor Jingtai hummed thoughtfully. After long consideration, he turned to the Cabinet Supervisor.
“Establish plans including the Revenue Minister’s strategy, then report back.”
“We receive your command!”
“We’ll end here for today. I wish to rest.”
“Did I make a mistake?”
That night, returning home, the Cabinet Supervisor drank alone, muttering worriedly.
“Though the Revenue Minister’s plan is risky, it could bring great gains if successful. But the chaos during the process is problematic. No…”
Pausing briefly, the Cabinet Supervisor sighed.
“The Emperor is the problem.”
Emperor Jingtai’s abilities were mediocre. If not for personality issues, Zhu Qizhen would have been more suited to be emperor.
Having such a mediocre person as emperor caused the Cabinet Supervisor’s worry.
Implementing the Revenue Minister’s plan would certainly cause chaos. If it were Emperor Xuande, he would surely suppress that chaos and move forward. But Emperor Jingtai might well be swept away by the chaos.
“These martial artists are also problematic. They don’t fear the law…”
Though they say they’re powerless before firearms, martial artists were thugs who feared neither law nor death. If such thugs united, they could significantly shake the state.
“If there’s a merchant dreaming of being Lü Buwei who colludes with these thugs…”
Mentioning the historical tale of Lü Buwei, who rose from merchant to make Ying Zheng, a hostage in Chu, the ruler of Qin, the Cabinet Supervisor shook his head as if not wanting to think further.
As the Cabinet Supervisor worried, a servant entered and announced.
“My lord, a guest has arrived.”
“A guest? At this hour? Who is it?”
“It’s Chief Wang of the Wang Family Merchant Group.”
“Show him in!”
The elderly merchant, guided in by the servant, clasped his hands in greeting to the Cabinet Supervisor.
“My lord, have you been well?”
“Just the same as ever. How about yourself?”
After exchanging light greetings with the head of the Wang Family Merchant Group, one of the state’s official merchant groups, the Cabinet Supervisor offered a cup and asked.
“What brings you at this late hour?”
“I rushed here because strange rumors are circulating in Jiangnan.”
“Strange rumors?”
“There are people appearing who claim to be Zhu Yunwen and others claiming to be Zhu Wengui.”
“What!”
People had appeared claiming to be the Jianwen Emperor, who allegedly committed suicide after losing to the Yongle Emperor in the Jingnan Rebellion, and his son.