Taichang Ming Dynasty

Chapter 552: Currency Reform Undercurrent
Today, the gilded plaque reading "Official Banquets Not Allowed" hung on the vermilion lacquer door of the Wanhe Restaurant. From the carved window lattice on the second floor, the accountant listened to the pleasantries of those below as he quietly ticked away his abacus. The crisp twang of the sandalwood beads seemed to convey a sense of silent desolation—government business often involves earning a respectable living while wearing a smile.

Accepting orders from the government meant the entire restaurant would be closed to all other customers for the entire day, focusing solely on serving these important figures, and there was no room for refusal. Guards from the governor's office would arrive early to seal off the street and clear the area. With a sea of ​​soldiers stationed at the entrance, ordinary people would have to take a detour.

The banquet on Xiong Tingbi's triumphant return was quite lively. That day, Yuan Yingtai had invited not only prominent civil and military officials, but also the captains and captains of each town's command, as well as the wealthy and powerful in Liaoyang City, thus filling the entire restaurant to the brim. The wine jars were empty three times during the rounds of drinking, and even Xiong Tingbi himself looked like a hollowed-out skeleton, responding to the toasts with a look of despair.

Grand triumphal banquets are rare, after all. Today, the Wanhe Restaurant was incredibly deserted. The first-floor lobby was only occupied by a handful of tables, and the second-floor dining area and third-floor private rooms were even more utterly silent. Even with the generous portions, fine wines, and delicious teas, the restaurant wouldn't make much money. If you factor in the wasted rent and labor, it's likely they'd even lost some money. Yet, the government's business was a necessity—the official's reputation was the sword hanging over the Wanhe Restaurant's beams.

Although Xiong Tingbi did not prepare a ceremonial procession for Yuan Keli to go down to the suburbs to welcome him, he did summon all the prominent officials in Liaoyang to accompany him. Eight people sat at the main table: General Xiong Tingbi, Governor Yuan Yingtai, Zhenjiang Military Affairs Councillor Yuan Keli, Sun Moon Bank Shandong Branch President Ma Xiandian, Liaoyang General Li Huaixin, Aid Liao General Chen Ce and Qi Jin, and Lu Wenzhao, a captain of the Eastern Office of the Embroidered Uniform Guard.

Lu Wenzhao's seating was a last-minute addition. Wanhe Restaurant, a century-old establishment in Liaoyang, saw the Fifth Rank Captain standing only three steps away from the Governor, and a servant had already carefully brought a round rosewood stool. They were accustomed to guessing the seating arrangements of distinguished guests. Since the host had announced the arrival of seven distinguished guests, they had undoubtedly prepared a rosewood eight-immortal table, capable of seating ten.

Beyond the main table sat the lieutenant generals and guerrilla generals of the various battalions. They were there to show their support, to give and receive respect. They sat scattered around, claiming it was a welcoming feast, but more likely to bring some life to the restaurant.

The celadon wine cup barely touched his lips when the clamor of the room overflowed the vermilion threshold. The joy brought by the retreat of the Nu chieftain had not yet faded, yet the aroma of wine permeated the room. Time passed, cups were passed, and the formalities of the crowd slowly softened under the warm early summer sun.

"Yuan Bingxian, I offer you another toast." Ma Xiandian, the head of the Shandong branch of the bank, looked only in his thirties or forties, and sat among a group of bearded warriors, looking like a young scholar. If it weren't for the few strands of silver hair under his chin, who would have known this was the old Diao Eunuch, who had been castrated and entered the imperial palace in the eighth year of the Wanli reign? He was born in the second year of the Longqing reign, making him a year older than Xiong Jinglie.

"I dare not, I dare not. I am only a few years older than you. How can I deserve such respect from Eunuch Ma?" Yuan Keli immediately raised his glass in response.

After the observation just now, he has confirmed that this eunuch Ma, who claimed to have been transferred from the Ministry of Rites to the Ministry of Internal Affairs, and then assigned to the Bank Yamen by Wang An, and finally sent to Liaodong, did not know the real purpose of his trip.

"The one who is more capable should be the first, and you deserve it!" Ma Xiandian has been doing menial jobs almost all his life and is very good at saying nice things.

Yuan Keli could only smile faintly, gulping down the wine in his glass before casually saying, "The day before yesterday, when Captain Lu and I were on our way to Haizhou, we happened to run into Eunuch Wei. He said you were stationed in Haizhou, so we decided to go visit you. I didn't expect to see you in Liaoyang."

"That's what the saying goes, 'If you're destined to meet, you'll meet no matter how far apart you are!'" Ma Xiandian immediately responded, then picked up the wine pot and wanted to pour wine for Yuan Keli.

"Eunuch Ma, if you continue like this, I'll be really panicked." Yuan Keli filled his own glass before Ma Xiandian. "Pour the wine, I'll do it myself!"

"Haha. Drinking from the pot will get twice the result with half the effort. It seems I can only have a glass for myself." Ma Xiandian took back the wine pot and slowly filled it for himself.

"Eunuch Ma," Yuan Keli patted his chest lightly and said jokingly, "I have a few banknotes here. I wonder if you can cash them in?"

"Silver note? Where did you get it from?" Ma Xiandian was stunned at first, but quickly realized. "Oh! Yuan Bingxian came in March and should have received his salary. Didn't you cash it in Beijing?"

As far as Ma Xiandian knew, after the half-silver, half-note monthly salary was distributed the previous month, most officials in Beijing quickly cashed in their notes. This was especially true for the lower-ranking officials who relied on their salaries to buy rice. They lined up at the four major branches almost as soon as their offices were dismissed. It was clear that they didn't trust the paper currency issued by the imperial court.

"I have a little savings, and I don't have any special expenses on a daily basis. I'm not in a hurry to use it, so I just keep it. Besides, I have more than just a monthly salary." Yuan Keli didn't reach for the banknotes. "More than half of the travel expenses and resettlement allowances given to me by the Ministry of Revenue were in banknotes. At that time, I wondered if Liaodong would also open a bank."

"Haha, you're quite resourceful. We've opened branches in Haizhou, Gaizhou, and Guangning," Ma Xiandian complimented, adding a mysterious air. "And I suggest you cash in your money sooner rather than later. It won't be worth it if you do."

"Oh?" Yuan Keli also asked, "Why is that?"

"Hehe," Ma Xiandian continued to keep the secret. "I think the banknote in your hand must be a promissory note issued by the Beijing branch, right?"

"It's a cashier's note from the Beijing branch," Yuan Keli continued to praise. "What's the problem?"

"I'm only telling you this. Please keep it quiet." Despite saying this, Ma Xiandian made no effort to lower his voice. "Promissory notes issued by the Beijing branch can be cashed at any of its branches, free of charge. Currently, our Shandong branch is temporarily affiliated with the Beijing branch, so the same rules apply. However, once the Shandong branch is officially established and separated from the Beijing branch, you will have to pay a fee to cash them in Liaodong."

Yuan Keli put on a look of sudden enlightenment. "Is this fee a lot?"

"I don't know how it's decided yet, but I don't think it will be much, at least not more than other ticket numbers. But even a small amount is still meat. Let's not waste it, okay?" Ma Xiandian smiled and looked around.

"Thank you for the reminder, Eunuch Ma," Yuan Keli said, "but I have to go to Zhenjiang to take up my post. I don't know when I will be able to visit you in Haizhou again."

"Well, send someone to deliver the banknotes to Haizhou. If you think it's too far, give me the banknotes later. After I go back, I will immediately ask someone to exchange the cash for the amount and send it to Zhenjiang for you." Eunuch Ma's voice was not small at all. He wanted to tell everyone present about the "banknotes can be exchanged for cash on sight".

"Isn't this in accordance with the rules?" Yuan Keli waved his hands.

"What? Are you still afraid that I will eat your money?" Ma Xiandian pretended to be angry.

"Look at what you're saying. I just didn't want to trouble you any further. Besides, a round trip of over 700 miles, the money lost on food and drink for the soldiers and horses along the way would probably be more than the fees." Yuan Keli also pretended to apologize. "I'm going to Haizhou on official business, so I can exchange it on the way. And then, I can visit you again." "Then it's settled." Ma Xiandian raised his glass again.

"Eunuch Ma has come to Liaodong to open a bank," Yuan Keli replied, raising his glass. "Does this mean the Emperor also intends to implement a new salary system in Liaodong?"

"Issuing silver notes in the capital isn't a new salary system," Ma Xiandian said. "It's just exchanging half the silver for an equal amount of silver notes. The amount and method of payment remain the same as before. If you don't want to hold on to the silver notes, just exchange them for cash. The emperor's original intention was to streamline the monetary system and facilitate trade between the people and merchants."

"What is Eunuch Ma going to do?" Yuan Keli asked with a smile.

"How to do it? Of course, follow the palace's instructions. Collect cash and issue invoices. If a businessman wants to do a big deal worth hundreds or thousands of taels of silver but doesn't want to carry large sums of cash around, he can first exchange his cash for silver notes, then take the silver notes to another place to cash them in. If the other party is also willing to accept silver notes, then he can even skip the cashing process and just use the silver notes to make the next deal. Don't the southern provinces with frequent trade all have private and commercial bill offices? Some even opened bill offices in the capital. Don't Xuanchangji and Lianshengji do just that?" Ma Xiandian had some business acumen, but he was still far from understanding the emperor's currency reform plan and the abstract monetary policy theories that he had no concept of. Until now, he had only seen his assignment as a business venture to compete with the people for profit.

Yuan Keli took a bite of food, chewed it, and swallowed it before taking another sip of wine. "What about private banks like Xuanchangji and Lianshengji? What are the palace planning to do with them?"

Yuan Keli saw things more clearly than Ma Xiandian. He keenly realized that the emperor was essentially issuing paper money to replace silver in circulation. This policy was essentially the same as the Taizu Emperor's promotion of treasure notes and ban on the use of coins and silver at the beginning of the Republic.

However, compared to Taizu's iron fist, the current emperor's methods were much softer. Rather than resorting to mandatory administrative orders, the emperor instead layered the "New Treasure Notes" with a layer of "silver notes." This, however, meant that the private banks were actually in subtle conflict with the emperor's reforms.

"I don't know," Ma Xiandian shook his head. "At least before I left Beijing, I hadn't heard what the higher-ups thought of these banks. But I think they'll close down sooner or later."

"What do you mean, Eunuch Ma?" Yuan Keli raised his eyebrows.

Drinking alone would make one drunk quickly, so Ma Xiandian also took a bite of his food. "We charge less fuel consumption than they do. Our scheduled inter-city cashing fees are also lower than theirs. When we lend money, Xuanchangji and Lianshengji start with a 3% interest rate, often reaching as high as 5% or 6% per month, while we only charge 2% or 3%, and we even cap the interest accumulation at the principal. In other words, when we lend money, we stop charging interest once the principal and interest add up to double the principal. We're truly more cost-effective in every way. Once our bank expands, it's only a matter of time before we crush them."

"That's not bad." Yuan Keli nodded helplessly.

"Eunuch Ma, Yuan Bingxian, come!" At this time, Xiong Tingbi suddenly raised his glass and toasted Ma Xiandian and Yuan Keli. "Accept my toast too."

"Oh," Ma Xiandian said, looking guilty, and apologized to Xiong Tingbi, "I was so busy chatting with Yuan Bingxian that I neglected Xiong Jinglüe. I'm sorry, I'll drink a glass of wine as punishment."

"Then I'll drink a glass as well." Yuan Keli also raised his glass following Ma Xiandian.

"No, no, no, please don't!" Xiong Tingbi waved his hands quickly and said with a smile, "I'm sorry for interrupting your conversation. I should drink the penalty."

"Let's all drink, then," Ma Xiandian said, raising his glass and toasting. "I'm new here and unfamiliar with everything. I'd appreciate your guidance and help."

"I don't deserve it, I don't deserve it!" He kept eating, but at the same time he noticed that the others here also raised their glasses to toast the people at the table.

After finishing his round of drinking, Ma Xiandian filled his own glass. Then, he turned slightly and pointed his glass at Xiong Tingbi. "Xiong Jinglüe, what do you think of the matter that Ma discussed with you a few days ago?"

As soon as these words were spoken, everyone around the main table pricked up their ears, and the conversations at the two nearby tables seemed to quiet down a bit.

"Haha." Xiong Tingbi took a leisurely sip of his drink. Putting down his glass, he glanced at Yuan Yingtai first, then at Ma Xiandian. "Okay, Dalai and I have discussed this, and we both think it's a good idea. But how about we try it out somewhere first, and then roll it out fully after a while? A small boat is easier to turn around, and if there are any problems, it's easier to fix them, right?"

"Okay!" Ma Xiandian smiled even more happily. He immediately asked, "Let's try it out in Haizhou. What do you think?"

Xiong Tingbi nodded and said, "When you return to Haizhou, just greet Zhang Bingxian directly. Tell him that Liaoyang has given the nod."

"Why don't you write something to me? Either an official letter or a private letter will do." Ma Xiandian said with a smile, "It's useless to just talk, and my influence is not strong enough. I'm afraid Zhang Bingxian might have doubts."

"Look at what you're saying. Eunuch Ma is a member of the palace, who would dare to look down on him?" Xiong Tingbi didn't refuse. "However, Zhang Yuheng is indeed very rigorous in his work. How about this? After the welcoming banquet, I will send an official letter to Haizhou and have Zhang Yuheng discuss this matter with you to make it happen. What do you think?"

"Then I'll have to trouble General Xiong and Governor Yuan!" Ma Xiandian drank the wine in the glass.

"We are all here to help the emperor, so there is no need to be so polite." Xiong Tingbi and Yuan Yingtai also responded with a toast.

Yuan Keli was confused after hearing this. He quietly looked around at everyone and found that the three town commanders sitting at the same table also looked bewildered.

Yuan Keli couldn't help but ask, "May I ask what you two are talking about?"

(End of this chapter)