Three Kingdoms: The Kingdom Cannot Be Partial

Chapter 299 His Majesty is Truly Ruthless
During the later years of Liu Hong's rule, he was still able to sell official positions and titles for five-zhu coins, with each official position costing millions or tens of millions of coins. In a bumper year, the price of rice was only twenty or thirty coins per shi (a unit of dry measure).

Since Dong Zhuo violated economic principles and minted large quantities of inferior coins, the credibility of the Wuzhu coin began to collapse.

Coupled with more than 30 years of war, the monetary economy dominated by the Wuzhu coin nearly collapsed, and a million coins could not even buy a shi of rice.

This situation was particularly severe in the north, where war had raged for years, and trade had reverted to a primitive state of barter.

Cloth, silk, and grain—items with inherent use value—served as general equivalents, allowing people to trade, exchanging millet for salt and iron, or cloth for pottery.

This form of bartering has significant drawbacks.

One issue is that the items are bulky and inconvenient to store and transport.

To buy an ox, one might need to drive several carts, carrying dozens of bushels of grain. The transportation costs alone would be enormous.

As a result, long-distance trade in goods was almost abolished due to cost issues.

The biggest victims are naturally the poorest people at the bottom of society.

What can ordinary people produce?
It consists of nothing more than grain and cloth.

But they needed iron, they needed salt, they needed to pay poll taxes to the imperial court, and they also needed to pay land rent to the landlords.

Physical goods are difficult to separate, and the needs of ordinary people are difficult to overlap.

A farmer wants to exchange a piece of cloth he has woven for a new iron hoe. In a healthy monetary economy, he can sell the cloth for money and then use the money to buy the hoe.

However, in a barter system, he had to find a craftsman who needed cloth and had extra hoes, and such a coincidence was extremely difficult to achieve.

Therefore, he could only sell his cloth to local powerful merchants, and the pricing power was completely in the hands of these merchants.

A bushel of millet, a bolt of silk cloth, and the price that the powerful buys them for is three liters of coarse salt and a cheap hoe. The value of the two is completely unequal. You may not need an iron hoe, but can you not eat salt?
Without currency in circulation and with long-distance market trade almost completely halted, ordinary people could only exchange goods with local powerful and tyrannical individuals, leaving them at the mercy of others.

When the fruits of people's labor cannot be exchanged for rewards of equal value, it will directly dampen their enthusiasm for agricultural and handicraft production. This is the reason why low grain prices hurt farmers.

This severely hindered the recovery of people's livelihoods. The people became numb, content with just making ends meet, and no longer thinking about long-term plans.

Thus, in times of famine, when families had no surplus rice or silk, they would begin to sell their children, further accelerating the bankruptcy of ordinary people. This made the land and population annexation by powerful families even more blatant, to the point of being completely uncontrollable.

Therefore, restoring currency and market trade may seem like an economic issue, but in reality, it concerns the rise and fall of a country.

After Cao Pi ascended the throne, although he was unaware of the dynastic cycle, he could observe that powerful families were rapidly annexing land and people, so he attempted to restore the Wuzhu coin system.

However, as soon as the new coins were introduced, they failed to circulate due to frequent wars and the fact that people had long relied on grain and silk transactions, leading to doubts about their creditworthiness.

It ended abruptly in less than a year.

Cao Pi then ordered the people to trade using grain and silk.

Since coins have been abolished for thirty years and grain and cloth have been used as currency for exchange for a long time, the people's tendency to speculate, cheat, and falsify has gradually become prevalent.

The people competed to soak grains in water to increase their weight for profit, and they also wove extremely thin silk as currency. Even the Wei court's use of cruel punishments could not stop them.

By the time Cao Rui ascended the throne, the wars of the Three Kingdoms had gradually subsided, the situation had stabilized, and commerce had begun to recover. Cao Rui then attempted to reinstate the Wuzhu coin, and initially achieved some success.

Although Cao Wei minted coins, the source of copper was extremely limited, and the scale of coin minting could not keep up with the market trade demand, resulting in a severe shortage of coins in the market.

With a severe shortage of coins and insufficient official minting, private minting inevitably proliferated. These privately minted coins were of poor quality, heavily adulterated, disrupted the market, and further damaged the overall reputation of the Wuzhu coin.

Soon, Cao Wei reverted to a barter system, rendering the currency reform ineffective.

Meanwhile, in the Han Dynasty, the Wuzhu coin continued to circulate in Shu, and Liu Ba, the first economist of the Three Kingdoms period, even invented the Zhibai coin, a large denomination coin with a nominal value.

This large sum of money, which was essentially worthless, solved the urgent problem of insufficient military funds for the Shu Han regime, which had just taken control of Sichuan at the time.

Although this kind of Zhibai coin was a bad currency, it should be known that before this denominated coin was invented, the civil and military officials of the three armies besieging Chengdu all discussed the idea of ​​distributing houses in Chengdu and gardens and mulberry fields outside the city to the generals as rewards.

Emperor Zhaolie, unwilling to demoralize his soldiers or lose the hearts of the people of Shu through violence, laughed it off and made a promise to them: "If the matter is settled, I will not receive any of the goods from the treasury."

After capturing Chengdu, the soldiers laid down their weapons and rushed to various treasure troves to seize the valuables. Later, the idea of ​​seizing land from the wealthy and distributing it to the rich was brought up again. Zhao Lie and Zhao Yun then put on a show together.

Zhao Yun advised, "Huo Qubing believed that since the Xiongnu were not yet destroyed, there was no point in having a home. Now, the enemies of our nation are not only the Xiongnu, so we cannot seek peace now."

"Only when the world is at peace, and everyone returns to their hometowns to cultivate their land, will it be truly appropriate."

"The people of Yizhou, having just suffered from war, should have their fields and houses returned to them, allowing them to settle down and resume their livelihoods. Only then can they be conscripted for military service, thus winning their hearts."

Zhaolie immediately agreed, held a grand banquet for the three armies, distributed gold and silver treasures from Chengdu to the soldiers, and returned grain and silk to the powerful families in Shu.

Because there was no direct violent plunder of the city's people's grain, silk, fields, and houses, the army suffered from a severe shortage of supplies, so Liu Ba invented the Zhibai coin.

However, these Zhibai coins did not circulate among the general public at first; they were only used within the military.

Liu Ba, a clerk under Sang Hongyang during the Three Kingdoms period, was in charge of the market and stabilized prices.

The soldiers in the army first exchanged gold and silver for Shu Zhibai, and the court then used the recovered gold and silver to exchange for grain and cloth with the powerful families in Shu.

Finally, the soldiers used Shu Zhibai to exchange for necessities such as grain and Shu brocade from the imperial court.

At first, some soldiers will inevitably hesitate and be unwilling to exchange their gold and silver treasures for such a worthless currency as the Shu Zhibai. However, as long as someone takes the lead and actually obtains the necessities that can be used for entertainment and consumption in Chengdu, then the Shu Zhibai can be put into circulation.

Meanwhile, under Liu Ba's leadership, Shu brocade and Ba salt were brought under state control, and the government stabilized their prices.

Shu brocade was linked to Zhibai coins. Anyone who wanted to buy Shu brocade had to bring supplies to the government to exchange for Zhibai coins, and then use the Zhibai coins to exchange for Shu brocade at the brocade official.

Not only that, but large-scale transactions of salt in Ba can also only be conducted using the Shuzhibai system.

The powerful families of Sichuan wanted to buy salt from Ba and resell it for profit, so they also needed to exchange goods for Zhibai.

As a result, the Zhibai coins were able to circulate among the people, and their value was widely recognized.

Less than six months later, the treasury was full.

Not only that, powerful families who owned Shu Zhibai coins could use Zhibai coins to pay taxes.

This alone gives Zhibai coins a credit foundation that distinguishes them from Sun Quan's Daquan Dangqian and Daquan Wuqian coins, which are essentially worthless large-denomination coins.

After Lü Meng crossed the Yangtze River in disguise and seized Jingzhou, Sun Quan generously bestowed upon him 100 million coins. It is unknown how Lü Meng would spend this 100 million coins.

The so-called "petrodollar" system of later generations was already played by the genius Liu Ba 1,800 years ago. Just like the United States printing paper to harvest the world, it really reaped a lot of wealth from the two enemy states of Wei and Wu.

Returning to the present, no matter how much value this fiat currency, Shu Zhibai, can maintain or be used as credit money, its essence of plundering the wealth of powerful families remains unchanged.

Although the strong demand from wealthy families for Shu brocade and Ba salt allowed these goods to circulate, the wealthy families did indeed harbor considerable resentment towards the imperial court as a result. Furthermore, because the Zhibai coins generally circulated only among powerful families, ordinary people did not enjoy the convenience of fair trade.

In many places, people were still bartering or had a lot of bad money. In short, because of the lack of good currency, the powerful and wealthy were still preying on the people and seizing land and people, which was even more rampant than before.

Having worked with Liu Ba for a long time, the Prime Minister was well aware of how the economy affected the operation of the country, and naturally knew that Shu's direct approach was not a long-term solution.

They also understood that only by having the imperial court print and mint genuine high-quality coins on a large scale could the economic activities of the entire society return to normal and stimulate the enthusiasm of the people for farming, weaving, fishing, and animal husbandry.

But no way.

The country has no copper.

The market is experiencing a cash shortage again.

The only option is to continue expanding the scale of the Zhibaiqian coin, increasing the circulation of this state-controlled currency in the market, and stimulating market trade.

Things are different now.

With the Zhuti copper mine in hand, the Han Dynasty could eliminate old malpractices and begin minting new coins with sufficient copper content and excellent workmanship.

This was not merely to solve the immediate problem of rewarding and providing relief to the soldiers, nor was it simply to cover the national bonds that might be issued in Chengdu and Chang'an. Its more important role was to reshape the monetary system of the world and lay the foundation for the three revivals of the Han Dynasty.

With a unified, reliable, and sufficient currency, commerce in Sichuan, Hanzhong, Guanzhong, and Jingzhou will flourish, which in turn will stimulate the development of industry and agriculture.

In a few years or a decade or so, when people's livelihoods recover and market trade returns to normal, the government can use more currency to pay taxes, officials' salaries, and soldiers' rewards, thus reducing reliance on goods.

Even if Liu Shan suddenly died, even if the Han Dynasty's northern expeditions and eastern campaigns failed, and the Three Kingdoms were once again deadlocked, the Han Dynasty would no longer be the Han Dynasty it once was.

Li Hui, acting on Liu Shan's orders, has recruited men to establish a military camp in the mine to maintain order, and has begun small-scale mining operations while also planning a road from the mine to the Lujiang River (Jinsha River).

During the Ming and Qing dynasties, Zhuti copper was transported from the Jinsha River into the Yangtze River, all the way to Zhenjiang, where it entered the Grand Canal, and finally reached Yanjing (Beijing), a distance of thousands of miles.

The output of this single mine is equivalent to the combined copper production of several southern provinces, making it the undisputed number one mine in the world.

Liu Shan had no doubt that Li Hui's statement that "it may not last a thousand years" was an exaggeration.

starry night.

Dong Yun and Fei Yi, the two attendants, left the official residence together and boarded a simple deer-drawn cart to return to Dong Yun's residence.

After washing up, the two slept in the same bed as when they were young, their feet touching.

Fei Yi placed his hand on his chest and spoke first:
"The late emperor and the prime minister, we both inquired about the copper mines in the south, but to no avail."

"Unexpectedly, after His Majesty personally led the expedition, the northern and eastern campaigns were victorious one after another, and such a huge mine was discovered. The destiny of our Han Dynasty and the fate of our nation lie here. Heaven has not forsaken our Han Dynasty."

After a long while, just as Fei Yi was about to fall asleep, Dong Yun finally responded with a soft "hmm".

It took Fei Yi a while to realize what Dong Yun had said. After thinking for a while, he said:
"However, the situation of our Great Han is now very good. It is just a matter of money and silk. His Majesty already knows that the matter of the Zhuti copper mine is true. He could have delayed the reward and waited. Yet he is still so ruthless. It is truly admirable and frightening."

Dong Yun naturally knew that Fei Yi was referring to the emperor's borrowing, and although he was lying down, he still shook his head slightly:
"What do you mean by ruthless? Since the Northern Expedition, His Majesty has devoted himself to the cause of restoring the Han Dynasty and no longer cares about the so-called dignity of the imperial family."

The two remained silent on the couch for a moment, then Dong Yun, as if struck by a thought, suddenly said:

"Today, Boda (Zhang Biao) asked Your Majesty whether we should first settle accounts with those powerful families in Shu who have been secretly communicating with Sun Quan and harbor disloyal intentions? What does Wenwei think?"

Upon hearing this, Fei Yi asked, "Is this proposal... perhaps a bit too harsh at this time? I fear it might damage His Majesty's reputation for benevolence."

Fei Yi understood Dong Yun's meaning.

If we confiscate the property of ten or eight of these powerful families, we'll surely have hundreds of thousands of bushels of grain.

They had been in contact with Sun Wu and harbored ulterior motives. Their plot to rebel had already been made, and the evidence was already in the hands of the court. Now that they had won a great victory, confiscating their property would not cause chaos in Shu, and it would also serve as a deterrent to other people with ulterior motives.

Dong Yun did not answer immediately, but lay quietly for a while before slowly speaking:
"Last year, a solar eclipse and earthquake destroyed ancestral temples, causing uproar in Sichuan. Many local tyrants and wealthy people conspired with Sun Wu to cause trouble. Punishing the ringleaders served as a warning to others and relieved the immediate crisis."

“These people who actively flirt with Sun Quan and plot to rebel are afraid of his power but do not appreciate his virtue. If we do not deal with them now, when will we?”
"Furthermore, don't these people know that they are in a precarious situation?"
"If the Han Dynasty were to actually issue national bonds, wouldn't they consider buying a few to demonstrate their loyalty to the emperor and their patriotism? If we can't even seize such an opportunity as national bonds, then we'll have no choice but to defeat them."

Upon hearing this, Fei Yi suddenly understood, and carefully considered his words:
That is indeed the case.

"But no matter what, we must maintain a sense of proportion."

"Once the national debt issuance is complete, these matters will be left to the prefects and commanders of each prefecture."

"We must win the hearts and minds of the people and ensure that the innocent are not harmed."

Dong Yun nodded: "In recent days, we have found a lot of evidence in Wu and Zi counties that people were in cahoots with Sun Wu and plotting rebellion."

...

In the following days, Yiling City remained busy, with the Han army resting, training, and deploying defenses in an orderly manner.

Meanwhile, within the government offices, ministers such as Fei Yi and Dong Yun worked tirelessly day and night to scrutinize every detail of the Han Dynasty's national debt, to the point of neglecting sleep and meals.

Liu Shan also frequently participated in the discussions, bringing up all the bits and pieces of knowledge he had in his memory about bonds, credit, and finance.

Ultimately, it was decided that the first batch of national bonds would be called "Special National Bonds for the Eastern Expedition in the First Year of the Yanwu Reign of the Great Han Dynasty" to indicate their clear purpose.

The bonds will be issued in two denominations: 1,000 koku and 5,000 koku, to suit powerful clans and smaller households respectively, allowing them to purchase according to their capabilities.

Each household is limited to purchasing two units, which binds the interests of the Han Dynasty with those of more families, and also disperses the risks of the families, so that they do not have to worry about the court discovering that their families have huge wealth.

The term is one year, and the annual interest rate is tentatively set at "one-tenth", that is, ten percent.

This interest rate is higher than that of ordinary deposits, but lower than the current usurious loan rates of at least 30%.

It has considerable appeal given the credibility of the imperial court.

The newly established "National Debt Office" under the Grand Minister of Agriculture, in collaboration with the Prime Minister's Office, was responsible for drawing, registering, distributing, and managing the national debts.

The government bond certificates were made of special mulberry paper with hidden patterns, a specific code, and the three characters "朕准此" (I hereby approve) written by Liu Shan himself. The imperial seal was affixed to the certificates, and anyone who forged them would be put to death.

The sale was conducted only in Chengdu and Chang'an, the two capitals firmly controlled by the Han Dynasty, to prevent local debts from becoming chaotic and uncontrollable. The sale was organized by the governments of the two capitals, and the items were sold publicly and registered.

After the initial draft of the plan was carefully reviewed, Liu Shan affixed his seal and specially instructed Fei Yi to make two copies. One copy was to be sent urgently to Chengdu and given to Chief Secretary Jiang Wan, who was then ordered to prepare the plan in Chengdu.

The other document was personally delivered by Fei Yi to Chang'an for further discussion with the Prime Minister.

(End of this chapter)