Three Kingdoms: The Kingdom Cannot Be Partial

Chapter 297 Financial Innovation
"The word '耕' itself?" Liu Shan seemed to ponder.

Fei Yi nodded and continued:
Indeed.

"Under Sun Quan's rule in Jiangdong, the officials were harsh and tyrannical, and the taxes were excessive. The people suffered greatly. It was already difficult for a family to have an old iron hoe, and oxen were even rarer. It was hard to find even one calf in ten households."

"Ordinary people mostly use wooden or stone tools to turn the soil, and some even dig the soil by hand. This is extremely inefficient and will inevitably delay the farming season."

“I once saw several old farmers working hard all day in the dry fields of the northern mountains of Wu County, but they could only turn over half an inch of the land. Their condition really made me very anxious and saddened.”

Liu Shan seemed to be deep in thought, and asked:
"Have you heard of the inventions made in Guanzhong by Ma Deheng, the Chief of the Bureau of Works, and Pu Yuan, the Chief of the Bureau of Metals?"

Fei Yi immediately nodded and praised:
"Your Majesty did not distance yourself from craftsmen because they were considered lowly, but instead promoted them. This shows your profound wisdom. Craftsmen Ma and Pu are indeed extraordinary talents."

"When I left Chang'an, they led the craftsmen of the Imperial Workshop to improve and create several new agricultural tools for different lands."

"Firstly, it improved the curved plow invented by His Majesty at Wuzhangyuan."

"It makes it more flexible to turn and less labor-intensive to cultivate, especially suitable for relatively soft soil in plains and dry lands that require fine cultivation."

"However, this object has an intricate structure, and key parts need to be forged from wrought iron, making it very expensive and beyond the reach of ordinary people."

Since their invention, the curved plow and the dragon-bone waterwheel have been widely deployed in military and civilian settlements in the Guanzhong and Hanzhong plains.

As for the wealthy and powerful families in Guanzhong, Hanzhong, and Shuzhong, the state allowed them to obtain prototypes from the government, but they had to be registered and the recipients were required to pay 10% more taxes than the originals.

Households that are not registered are strictly prohibited from using curved plows and dragon-bone waterwheels. Anyone found doing so will be brought to justice and heavily fined in grain tax.

Therefore, most powerful and wealthy households did not come to the government to collect the prototypes, but instead kept their heads down and waited to see how effective these two farming tools would be before deciding whether to collect them.

Fei Yi continued:
"In addition to improving the curved plow and the dragon-bone waterwheel, there are two other things that may be more suitable for the newly restored Jingzhou."

“One is… ‘Couple’,” Fei Yi said, recalling the story.

"This plow requires two people to operate together: one person pulls it from the front, and the other person holds it from behind to control the depth and direction."

"Although it still requires manpower, it is at least three times more efficient than using an old-fashioned plow or a simple wooden plow by a single person, which is especially suitable for rice-growing areas in the south with dense water networks and small fields."

Liu Shan nodded slightly. If efficiency could indeed be increased by more than three times, it would alleviate the problem of insufficient manpower for self-cultivating farmers in the middle and lower classes.

“Another thing is called a treadle plow,” Fei Yi continued.

"This instrument has a unique shape. It is mainly made of hard wood, but the key parts are covered with iron. When operating it, you use your feet to stomp into the soil, and then use your hands to pull the lever and use your skill to pry up the soil."

"Although it cannot turn the soil as deeply as a plow, it is easy to manufacture, does not require high-quality iron, and can be operated by one person."

"It is extremely suitable for mountainous areas, sloping areas, and dry land with slightly hard soil that is not convenient for carrying water for flood irrigation. It is perfect for planting winter wheat, millet, beans and other miscellaneous grains. Hundreds of prototype plows have been distributed to counties and villages in Longyou, and the people of Longyou are ordered to make them."

Fei Yi sighed softly as she finished speaking:
"However, although the farming tools are ingenious, iron is scarce in the countryside, and the number of craftsmen is also limited."

"Although the double-plow and treadle plow save iron compared to the curved-shaft plow, they still require a lot of iron to reinforce key parts, otherwise they are very easy to be damaged."

"Relying solely on the imperial court's resources, it may be difficult to achieve widespread coverage in the countryside in a short period of time."

“In Jingzhou, especially in the counties along the river, most of the land was occupied by powerful clans.”

“They had the financial resources to raise iron materials and hire craftsmen to forge new plows for their estates and fields.”

“However, ordinary registered households have no surplus wealth. Even if the imperial court bestows a map, they are still unable to build it. This is a problem that has accumulated over thousands of years and cannot be solved in three to five years.”

Liu Chan was silent.

In the absence of strong grassroots organizations and a solid material foundation, technological advancements often benefit the highest levels of society, leading to a situation where the rich get richer and the poor get poorer.

"Does Attendant Fei know the methods of enclosing fields?" Liu Shan suddenly asked.

When I was in Chengdu, Jiang Wan mentioned that some insightful local magnates in Sichuan were already trying a rice-growing method called "enclosed fields".

How could Fei Yi not know? He replied:
"The method of enclosing fields is to build embankments along the edge of tidal flats and wetlands in low-lying areas with interwoven waterways, enclosing a body of water, draining the water inside, and forming arable fields."

"This method can effectively guarantee the water supply of paddy fields and is not easily affected by drought or flood. If managed properly, the yield is quite stable, far superior to ordinary paddy fields that rely on the weather and have difficulty accessing water."

“But building the dike is a huge project that requires a lot of manpower and resources. It is not something that ordinary farmers can do. It is mostly done by wealthy families who organize tenants and laborers.”

He paused for a moment before adding, "When I was in Zigui, I discovered that some large estates along the river were using this method to grow rice. Their fields were well-organized, and the rice seedlings were indeed growing more vigorously than in ordinary paddy fields."

"However, this method is even more unattainable for ordinary people than casting a double-plow or a treadle plow."

"Most of the people in Wuzi and Ziyang counties still live on the mountain slopes, following ancient methods of slash-and-burn agriculture."

"Whether by drawing water from mountain streams or by drawing water for irrigation, the yield is low and unstable."

The Prime Minister had personally farmed in the fields and knew the hardships of the common people best. He valued agriculture and water conservancy the most, so his capable officials also attached great importance to farming.

That's not the case. How could the Han Dynasty, with only a small province and a million people, have launched six expeditions to Qishan to contend with Cao Wei?

While younger generations like Fa Miao, Zhang Biao, Zhuge Qiao, and Huo Yi were also concerned about the specific hardships of ordinary people, they may not have had the same in-depth and direct understanding as Fei Yi.

Liu Shan let out a long breath and said:
“What Fei Shizhong said is all true.”

"Although the powerful tool has been developed, its widespread adoption is difficult."

"But no matter what, it all depends on human effort."

"Leaving aside the areas of Shu, Guanzhong, and Longyou for the time being, Wuxian, Zigui, and Yiling have recently suffered from war, and the people are suffering and weak. Wuxian happens to have iron chains across the river and iron cones that can be melted down and cast into plowshares."

"Why not set up an official workshop here, and keep one or two hundred artisans with the army to make treadle plows and double plows for the households in these three counties?"

"These two items are relatively economical in terms of materials and quick to produce results. Once made, they can be rented out to households without land for use."

"Spring plowing is late, and the farming season has been missed, but the people can still rely on this to grow beans to fill their stomachs."

"After the autumn harvest, they can either repay with a small amount of grain or by serving in the imperial court."

"In addition, the powerful families in the three counties can be informed."

"The imperial court can distribute prototypes of the curved plow and the dragon-bone waterwheel free of charge."

"Those who are capable of building curved plows, dragon-bone waterwheels, and constructing enclosed fields on their own will be exempted from the routine 10% tax increase by the imperial court."

The three counties of Wu, Zi, and Yiling, due to the scorched-earth policy, will not recover for at least three years. The current priority for the court is not to extract more taxes from them, but to ensure the survival of the people in these three counties.

The wealthy and powerful families here can cultivate more land and grow more grain. After the autumn harvest, the imperial court can directly purchase grain from them without having to transport it from Sichuan.

With increased grain production, grain prices will decrease. Furthermore, with the government intervening to stabilize grain prices, people will be able to purchase grain at a fairer price.

Fei Yi immediately replied:

"Your Majesty is wise; this plan is excellent."

"After I return to Wuzi County, I will immediately begin to deal with this matter."

With this matter temporarily settled, Fei Yi ordered his attendants to bring several scrolls of bamboo slips and present them to Liu Shan's desk:

"Your Majesty, this memorial concerns the rewards and compensation for the soldiers who have participated in this eastern expedition, as well as all matters related to the subsequent provision of provisions and fodder."

Liu Shan unfolded the document and began to read it.

Fei Yi continued to report:
"Last autumn, in preparation for the eastern expedition, Chief Secretary Jiang implemented a pre-taxation system in the wealthy counties of Shu, adding a year's worth of taxes, which caused resentment among the people."

"Thanks to Your Majesty's divine might and successive victories, the people's hearts are temporarily at peace. However, although the Chengdu treasury is not depleted, this year's expenditure is far from sufficient for rewards and relief."

"This autumn harvest, the increased taxes on various prefectures and counties can only be maintained by 30% of the tax revenue. This is a fixed policy that cannot be changed."

"Although this eastern expedition has captured countless weapons and provisions from the Wu people, the rewards and compensation for our soldiers who died or were wounded in the previous two northern and eastern expeditions are enormous, like a bottomless pit..."

Fei Yi laid out the grim situation facing the Han Dynasty's finances and taxes to Liu Shan, one by one. The officials were silent, and Liu Shan felt somewhat embarrassed listening to him.

As the saying goes, "You don't know the cost of firewood and rice until you're in charge of the household." This emperor was trying to win over the hearts of the soldiers on the front lines, promising generous rewards and compensation, which he distributed in a very generous manner. However, this caused great distress to the bureaucrats and officials in charge of logistics.

It should be noted that in those days, the three regimes of Han, Wei, and Wu were all generally poor. Often, when soldiers died in battle, they simply died and there was no compensation to speak of. Giving a straw mat for the fallen soldier's fellow villagers to wrap the body and take it home was considered generous.

Liu Shan, however, was unaware of the situation when he first led the expedition, and because the battle to kill Cao Zhen was a matter of life and death, he promised extremely generous compensation, the amount of which was by no means small.

Once that promise was made, it couldn't be stopped.

If it weren't for the continuous victories, the capture of Guanzhong, the acquisition of land, and the constant acquisition of cattle, horses, carts, ships, armor, soldiers, cloth, and grain from the Wei and Wu armies, which were then distributed as relief and rewards, the national credibility of the Han Dynasty would probably have been bankrupt.

The Prime Minister's office was also in a dilemma, but after generously distributing the compensation, the soldiers' fighting strength indeed increased dramatically, and the Han Dynasty relied on the soldiers' high morale to win one victory after another.

With the restoration of the Han Dynasty seemingly within reach, they decided to go all out and slightly reduce the generous compensation promised by the emperor, instead establishing a more reasonable system of compensation and maintaining it as the standard practice.

After all, as long as we can continue to win battles, all problems can be solved.

Even if it can't be resolved immediately, it can be dealt with gradually over a few years.

"Approximately how much is the gap?" Liu Shan asked.

Fei Yi had already prepared a response in mind, and said:

"According to my rough calculations, even if all the spoils seized this time were converted into cash, it would not be enough to pay half of the rewards and pensions."

"If we also take into account the costs of pacifying the people and supporting the surrendered soldiers, the shortfall is roughly one million shi of grain."

“A million shi…” Fa Miao blurted out.

The officials, including Dong Yun, Fa Miao, Zhang Biao, Huo Yi, and Zhuge Qiao, were all taken aback.

Huo Yi and Zhuge Qiao, in particular, had been involved in the transportation of grain and fodder since the Northern Expedition, and they knew that the annual grain tax collected by the Han Dynasty from registered households was only two million shi.

Including the income from military and civilian settlements, the total annual grain harvest was around 2.8 million jin.

After hesitating for a long time, Fei Yi suddenly stood up and said:
"Your Majesty, it is not that I am unwilling to care for the soldiers, nor that I am unaware that comforting the bereaved families and orphans is the foundation of a strong nation."

"Your Majesty, I have come here with the utmost courage to humbly request that...the rewards and compensation be postponed or delayed?"

Although Liu Shan had already anticipated Fei Yi's main purpose in saying this, he still sighed when he heard him say that he needed to slow down.

Before the emperor could speak, Dong Yun, who was seated next to Fei Yi, spoke up:
"Your Majesty, it's not that we won't issue it, but rather that we'll postpone it."

"After our royal army has recaptured Jiangling, and even taken all of western Hunan and southern Jingzhou."

"Given the wealth and vastness of Jingzhou, there must be ample funds, grain, and taxes to be distributed in full to reward the army, encourage the living, comfort the spirits of the fallen, and demonstrate Your Majesty's benevolence."

"This is truly a last resort and expedient measure, and I earnestly hope that Your Majesty will make a wise decision." Clearly, Fei Yi's words today had been discussed with Dong Yun, or rather, Dong Yun had summoned Fei Yi here.

Dong Yun was, after all, only a court attendant, and he did not have jurisdiction over or interfere with matters of the outer court. Fei Yi, on the other hand, was the chief logistics officer of the three armies, responsible for central coordination, and also the chief secretary of the prime minister's office. It was most suitable for him to report to Liu Shan.

"It cannot be delayed, nor can it be postponed." Liu Shan shook his head.

"The orphans and families of those fallen soldiers, their fathers, sons, and husbands, who sacrificed their lives for the country and died on the battlefield, how will they survive if the court even delays in providing them with compensation?"

Fei Yi and Dong Yun, the two attendants, looked at each other and sighed inwardly.

Liu Shan observed his words and expression, and asked:
"What are the soldiers fighting and bleeding on the battlefield for?"
"Aside from the so-called righteous cause of protecting the country and restoring the Han dynasty, I believe that the greater cause was the inevitable necessity of fighting amidst the chaos of the world."

"In times of peace and prosperity, who would want to fight a war?"

"Since they had no choice but to go to the battlefield, and the country promised them great rewards and generous compensation, they were reluctantly willing to fight the enemy of Wei and Wu for me, for the country, or for themselves."

"Rewards are earned by soldiers who risk their lives."

"Compensation is something that the dead and wounded soldiers deserve."

"If the order is delayed for a month, the soldiers' morale will be low for a month; if it is delayed for a year, the soldiers' morale will be low for a year."

"If the soldiers are disheartened, how can I have any face left? How can I dare to hope that I can unify the six kingdoms and revive the Han Dynasty with their help?"

Liu Shan was not one to throw tantrums or act recklessly; he was aware of the country's financial difficulties. This problem had been troubling him for days, but he finally came up with a plausible solution.

Upon hearing the emperor's words, Fei Yi, though ashamed, still insisted, "Your Majesty's words are all reasonable; how could we not know them?"
"But...but where does the money and provisions come from?"

"Given the fortifications of Jiangling, it may not be possible to capture it even after many years."

"If we forcibly distribute rewards and compensation, my eastern expeditionary army may run out of food supplies, and if we ultimately suffer a crushing defeat due to insufficient supplies..."

Fei Yi didn't continue speaking, but everyone understood what he wanted to say.

Wuling has now been captured, and although other counties in Jingnan have made contact with the Han Dynasty, they have not yet risen in rebellion.

What are you waiting for?
They were waiting for Sun Quan to transfer military forces from Jingnan and Jiaozhou to Wuling to "suppress bandits".

Once the military forces of Jingnan and Jiaozhou are bogged down in the quagmire of Wuling, and the southern counties rise up together to besiege Sun Quan's southern army and harass their supply lines, then Jiangling in Jingbei may be secured without a fight.

All of this will take time.

Perhaps six months, perhaps a year, no one knows how long the battle will last. Just like the saying during the Battle of Hanzhong, "Men should fight, women should transport supplies." Even knowing that the country's strength was weak, they still had to do their best.

This is what a crisis is all about.

The Battle of Guandu between Cao Cao and Yuan Shao is an example of this.

The Battle of Yiling between Han and Wu was similar.

If you can get through this, the future will be bright.

Liu Shan rose from his seat, straightened up, and walked to Fei Yi. After a moment, he looked at Dong Yun, who was seated next to Fei Yi, and said:
"Attendant-in-Ordinary Fei, Attendant-in-Ordinary Dong."

"The national treasury doesn't have it, but... the people do."

"The common people?" Fei Yi and Dong Yun exchanged glances again.

Zhang Biao and Fa Miao exchanged glances.

The two of them had met privately in recent days and discussed what kind of reward or compensation to offer. Moreover, they both came up with the same solution.

The two were stunned when they heard the emperor mention the word "common people".

Zhang Biao perked up: "Does Your Majesty mean to first settle accounts with those powerful and influential families in Shu who harbor disloyal intentions?"

Last year, the solar eclipse and earthquake occurred at the same time, and after news of the destruction of the statue of the late emperor spread, there was actually quite a bit of chaos in Sichuan.

Fortunately, the emperor personally led the expedition, and news of Cao Zhen's execution reached Shu in April, shocking all those in Shu who were divided.

Since this group did not openly commit any acts of rebellion, they were not dealt with seriously in order to maintain stability.

Now that we have been victorious in both the Northern Expedition and the Eastern Expedition, why not take advantage of this momentum to deal with these disloyal clans and confiscate their property?
It should be noted that although the country is short of money and food, the money and food in the homes of these powerful and wealthy families are truly piled up like mountains.

The saying goes, "Rotten grain cannot be eaten, and rotten coins cannot be counted."

If we confiscate the property of ten or eight families, we'll have a million bushels of grain. And since they harbored ulterior motives first, confiscating their property won't cause chaos in Sichuan. It can also serve as a deterrent to other people with ulterior motives.

Liu Shan shook his head and said:

"No.

"I wish to borrow money in my name and in the name of the nation from loyal and patriotic individuals."

"Loan?" Even Dong Yun, who was usually composed, couldn't help but blurt it out, and Fei Yi's mouth dropped open.

Meanwhile, the sons of officials such as Fa Miao, Zhang Biao, Huo Yi, and Zhuge Qiao all showed expressions of disbelief.

Even the Longxianglang who had been standing silently by the side began to show their expressions, exchanging glances.

"Your Majesty!" Dong Yun finally spoke urgently.

"This move...this is definitely not a good strategy!"
"It is unprecedented and unheard of for the emperor and the court to borrow money from the people!"

"And what shall be used as collateral?"
"And what shall be used as collateral?"

"If the debt cannot be repaid when it is due, wouldn't that be a breach of trust with all the people, making us a laughingstock and damaging Your Majesty's and the court's prestige?"

Fei Yi also spoke cautiously:
"Your Majesty, what Minister Dong said is absolutely right!"

"This matter concerns the national dignity, Your Majesty's and the court's prestige; it is of utmost importance. I believe... it must not be done this way!"

Liu Shan shook his head and spoke solemnly:
"Two Attendants."

"If we cannot conquer Jingzhou, if we cannot revive the Han Dynasty, if we cannot unify the six kingdoms, what use is my face? What use is the dignity of the nation?"

"Does this mean that if I were to wait until the two traitors Wei and Wu joined forces to gradually erode my Han Dynasty, and I were to ride my horse and wield my spear to die on the battlefield for my country, would I then have face and the Han Dynasty would have dignity?"

"His Majesty!"

Although Liu Shan's words were spoken lightly, they shocked Fei Yi and Dong Yun so much that they immediately bowed deeply and begged the emperor not to say anything more.

On the other hand, the younger generation were clearly not as wary as Dong Yun and Fei Yi. Upon hearing the emperor's words, they were initially surprised but then readily accepted the claim that the emperor and the court were borrowing money from the people.

It's just lending money, it's not a heinous act that harms the people. As long as it can revitalize the Han Dynasty, and as long as the people are truly willing to lend money, what's wrong with that?
Liu Shan remained unmoved.

Fei Yi straightened up, pondered for a moment, and said:

"Your Majesty, why not follow the old precedent of the Han Dynasty in calculating and reporting wealth, and impose heavy taxes on wealthy households and merchants? Although it is a temporary measure, it is better than Your Majesty lowering yourself to engage in lending from the people."

Faced with the doubts and hesitations of his ministers, Liu Shan sat back down on his seat.

"I understand all your concerns."

"The loans I am referring to are not ordinary private high-interest loans, nor are they loans secured by collateral. What I desire is for the Han Dynasty to issue national bonds."

"Government bonds?" Fei Yi was taken aback.

“That’s right, government bonds.” Liu Shan nodded.

"In the name of the Great Han Dynasty, with the future tax revenue of the country, and with the credit of the Emperor as a guarantee, we will openly raise funds from the subjects of the Great Han. All those who contribute will be issued a certificate personally signed and sealed by the Emperor."

"The initial issuance is for a period of one year. After the one-year period, investors can take this certificate to the government to redeem Shu brocade and grain."

"I will call this certificate a national debt, or a royal certificate."

Issuing national bonds using the emperor's credit and the nation's future tax revenue?
No one had ever heard of this concept before, and they were momentarily stunned.

Liu Chan continued:
"According to my idea, this national bond should be divided into several denominations."

"It could be a thousand coins or ten thousand coins."

"Sometimes a thousand bushels of grain, sometimes ten thousand bushels of grain."

"In that case, it will not be purchased by wealthy individuals."

"On government bonds, it should be specified whether the loan is for grain or brocade, the loan term, the amount, and the interest."

“Ziqian…” Fei Yi blurted out.

"Indeed," Liu Shan nodded.

"For example, if a loan is made for one year, one-tenth or one-twelfth of the principal is given as a loan payment."

"In this way, the people will not only suffer no loss when lending money and grain, but will actually benefit. Wouldn't this be more advantageous than burying copper coins underground and piling up rice and millet in granaries?"

Upon hearing the Emperor's words, both Attendants Fei Yi and Dong Yun fell into deep thought.

Since the emperor personally led the expedition, the country has won one victory after another, returned the capital to Xijing, and avenged the defeat of Sun Wu, accomplishing what even the late emperor could not do.

In this way, both the emperor's personal prestige and the national authority of the Han Dynasty far surpassed those of the past, and could even be said to have faintly surpassed those of the time when Hanzhong was pacified and the late emperor became king.

At this time of year, the powerful and influential people of Sichuan must have had some thoughts about the Han Dynasty.

What do powerful families have the most of?
It has the largest population and the most money and grain reserves.

What is the least?
Investment opportunities are scarce.

The so-called investment at this time has a name: "property management".

As for managing property, there were two main methods: farming, weaving, and commercial trade such as selling salt, horses, iron, and fish. In short, it was a sustainable way to generate income.

Because human resources are limited, even if there is land, it cannot be cultivated. The same applies to weaving; production cannot be expanded due to the limitation of human resources.

This resulted in the wealthy and powerful having neither good investment projects nor more luxurious consumption; all their money and grain were simply piling up in warehouses and rotting.

If the nation's future grain taxes were used as reserves, just as Zhibai could be exchanged for Shu brocade at any time, and if the emperor's authority and the nation's credit were used as guarantees, providing these powerful families with a stable investment opportunity, wouldn't they flock to it?
And once they buy national bonds, wouldn't that mean they will expect the Han Dynasty to continue winning battles in the future?
Otherwise, wouldn't their investment in Dahan have gone down the drain?

Wouldn't this tie them to the Han Dynasty through shared interests?

(End of this chapter)