The Ming Dynasty's Five Hundred Years

Chapter 134 The Emperor and His Ministers Open Their Hearts to Seize the Silver!
Li Xianmu's reaction to Zhu Di was no exception. He lacked basic economic knowledge and it took him several years of study with his father to understand the core of the fiscal system.

He didn't intend to go into too much detail, so he asked a very simple question: "Your Majesty, do you think it's better for the people when a copper coin becomes more valuable, or when a copper coin depreciates?"

"Is it better for the people of the Ming Dynasty?"

Zhu Di pondered for a moment and said, "It should be better if money is more valuable, so that the same amount of money can buy more things. Isn't the standard of a prosperous era low grain prices?"

Li Xianmu did not refute, but smiled slightly, "Then let me ask Your Majesty another question: Is it better for wealthy people to have more money, or for ordinary people of the Ming Dynasty to have more money?"

Zhu Di then said without hesitation, "Naturally, the more money ordinary people have, the better, so that they will not rebel and the Ming Dynasty can be stable."

"Alright, let's go back to the question above. The reason why the rich are rich is that they have a lot of money. Now let's do a very simple arithmetic problem."

If a rich person has 100 coins and a poor person has 10 coins, the rich person has 10 times more coins than the poor person.

If money becomes more valuable—for example, if 10 coins used to buy 1 jin of grain, but now 10 coins can buy 2 jin of grain—this means that the money paid by those paying has doubled, while the price of grain for ordinary people has halved. Wouldn't the vast majority of farmers in the Ming Dynasty suffer a huge loss?

Zhu Di was taken aback at first, then immediately retorted, "But it's not just grain that's become cheaper; other things have also become cheaper. Doesn't that mean money is still worth the same?"

"Good, Your Majesty has figured out this problem. Now you know that a month ago a pound of grain cost 10 coins, and a month later, a pound of grain costs 5 coins. So, would you buy this grain now, or would you wait until it's cheaper to buy it?"

"Of course I'll wait until it's cheaper before I buy it."

Zhu Di's face was already very unpleasant, even turning somewhat ashen.

"Since His Majesty will choose to buy when it is cheaper, the common people will do the same. Farmers who sell grain, as well as small merchants who sell salt, spices, cloth and other things, are all waiting for the other party to lower the price."

If they can't earn money, how will they obtain the necessities for survival?

There will always be people who can't survive.

If this continues, only money will be valuable, while land, shops, goods, and food will become very cheap. What will happen then?

Zhu Di closed his eyes slightly, then slowly opened them, and said with difficulty, "The rich should take this opportunity to buy."

Zhu Di was a very intelligent man. He understood immediately from what Li Xianmu said and even imagined the tragic scene that the Ming Dynasty would fall into a state of misery.

"Yes, wealthy landlords and rich households acquired land from farmers at an extremely low price by appreciating the value of copper coins. If the farmers sell their land this year, how will they pay taxes next year?"

The poll tax, miscellaneous taxes, and various corvée labor were countless.

This is just one downside of money appreciating. Does Your Majesty still consider being short of money a trivial matter?

Or rather, it's not a real shortage of money, but rather a need to get money circulating. A single coin passes through the hands of a farmer and then into the hands of a small merchant, thus completing a transaction of grain and goods, and both parties benefit.

Zhu Di was extremely uneasy. "Don't these things only happen during famine years? Selling land at rock-bottom prices, selling children, selling servitude—how could this happen simply because of a lack of money?"

"What does Your Majesty believe is the key to maintaining a dynasty from true collapse?"

“Naturally, it is a wise king, wise ministers, and people who live in peace and prosperity.”

"What does Your Majesty believe the people need to live in peace and prosperity? What do wise rulers and wise ministers bring to the people?"

It's money!

It's profitable!

It is the kind of money-grubbing thing that our ancient sages despised!

Li Xianmu's voice became louder. Although he was saying these unorthodox things, Zhu Di could hear an unusual determination and criticism of the past in his voice.

"Famine years are indeed terrible, but through the development of successive dynasties, the disaster relief procedures for these famine years have become very perfect. As long as it is not a major disaster lasting for more than ten years, the court can get through it safely. But if a country's system has problems at its root, then there is no room for redemption!"
Why did the Tang Dynasty experience rebellions by regional military governors, while the Song Dynasty did not? It's simply because the Tang Dynasty's system for dealing with military men was different from that of the Song Dynasty!

Why was the Song Dynasty so weak in its external relations, while the Han and Tang Dynasties were so powerful? It's simply because the Song Dynasty had a different system than the Han and Tang Dynasties!

Wasn't the Tang Dynasty destroyed because Huang Chao destroyed the Jianghuai region?

Unable to collect taxes, the Tang Dynasty lost all hope of revival.

Money, money!
Isn't the glory of an empire all about money?
If Your Majesty does not have enough money, where will your army for the northern expedition come from?
Last year's finance meeting just ended a few days ago. Have you forgotten the embarrassment you felt when your ministers questioned you about finances at the meeting?

These are all stark, bloody experiences and lessons!

The current tax system of the Ming Dynasty will inevitably lead to a decrease in tax revenue. Now is the era of your rule, and I can assert that this is the most prosperous time for the Ming Dynasty. In the future, it will only become weaker and weaker!

My Great Ming Dynasty must have a sustainable system to collect taxes from both the rich and the poor, instead of simply plundering the poor!

Li Xianmu rose and then bowed deeply to the emperor. His voice grew louder and louder, his tone more and more excited, and his eyes were as bright as the sun in the sky. Zhu Di felt the darkness in his heart dissipate.

"During the Hongwu era, there was a rebel in Fengyang who was brought to the Golden Palace. The late emperor asked him why he rebelled, and he asked Your Majesty why you rebelled in the first place!"

The late emperor did not answer, but who didn't know? Because he couldn't survive!

Later, the late emperor had all the corrupt officials in Fengyang and Zhongdu skinned and stuffed with straw, which proved that what the thief said was true!
That happened during the Hongwu reign, but now that it's the Yongle reign, are such things rare?
Are there no rebellions in our Great Ming Dynasty?
Are these people really just malicious?
It's because they can't survive!

If they couldn't survive during the prosperous Ming Dynasty, it means that the current system is forcing them to make a living.

There are corrupt officials harming him among the common people, but those corrupt officials harm him because my Ming Dynasty's system has flaws. You know it's unrealistic to completely eliminate corrupt officials.

Therefore, the only correct approach is to gradually tighten the system to minimize their opportunities to exploit loopholes.

Otherwise, the Ming Dynasty would surely perish due to peasant rebellions, destroying the entire empire. Does Your Majesty now understand why I have come to the palace so urgently to offer this advice?

Zhu Di was completely stunned by Li Xianmu's words. Since his accession to the throne, almost everything he had heard was praise. Li Xianmu was the first person to say that the current system of the Ming Dynasty was problematic and that if it was not changed, it would lead to the downfall of the country. How could he not be shocked?

"How dare you say such things in front of me!"

Aren't you afraid I'll punish you for disrespect?"

"I am not afraid, I am not afraid at all!"
It is precisely because Your Majesty is Your Majesty, and I know that Your Majesty is a rare sage ruler throughout history, a wise ruler who listens to advice, that I dare to say these words!
If the current emperor were like King Li of Zhou, who suppressed public opinion more than he could block a river, or Emperor Yang of Sui, who indiscriminately killed ministers who offered advice, then I would absolutely not speak these words in his presence!

Li Xianmu bowed deeply once more, then raised his head and looked into the emperor's eyes. Zhu Di saw his own reflection in Li Xianmu's bright eyes.

Li Xianmu said sincerely, "Your Majesty, I have the blood of the Ming imperial family flowing in my veins. For the next three hundred, five hundred, or even a thousand years, this may not be the last time we marry into the imperial family. The Li family is a hereditary noble family of the Ming Dynasty. For ordinary people, changing dynasties is just a matter of changing the emperor!"

And what about me?
My father is enshrined in the Temple of Literature.

If I continue to develop in this way, I may one day be able to be enshrined in your ancestral temple. My descendants will also be like me.

Your Majesty, I only wish that the Ming Dynasty may last for a thousand generations!

Therefore, if there are any problems with the government of the Ming Dynasty, I will point them out. There is nothing more important in this world than the Ming Dynasty!

His Majesty! "

Li Xianmu bowed deeply before Zhu Di.

But what he said was so resounding and thought-provoking. The most powerful words in the world are sincere and reasonable truths, and Zhu Di heard these things from Li Xianmu's words and voice!

"Xianmu, you are a unicorn minister bestowed upon my Great Ming by Heaven. If the Great Ming still had the system of prime minister, how could we not appoint you as prime minister?"
If I were to pass away in the future, how could the Ming Dynasty not be handed over to you to assist the emperor?
I have come to fully understand the harm of being short of money!
Xianmu, you've come here not just to tell me about the flaws in this system, have you? I'm sure you have a way to solve this problem!
right here!

Right there in the Hall of Literary Glory!

Right in front of me!

Tell me all your ideas, and I will do everything in my power, by any means necessary, even surpassing my resolve to launch a northern expedition against the Mongols, to support them.

Let us, ruler and subject, add a burst of brilliantly burning flames to the eternal glory of the Ming Dynasty!

Li Xianmu remained outwardly calm, but inwardly he was overjoyed, knowing that he had succeeded!

He not only got the emperor to agree to his rather crazy plan, but more importantly, his level of trust in the emperor's heart has increased significantly once again.

For a powerful emperor, this was the only way for Li Xianmu to seize more power.

"Your Majesty, when I entered the palace just now, I mentioned that I had met with the Japanese envoy."

Because I learned by chance that in the former Ginmi Province of Japan, there was a mountain called Ginmi containing extremely rich silver mines!
If the imperial court can control this silver mine, it can directly mint a large amount of silver coins. These silver coins, when invested in the Ming Dynasty, are equivalent to the imperial court minting copper coins, but the cost is much lower than minting copper coins!
Your Majesty, you should know what this means!

A bright light suddenly shone in Zhu Di's eyes!
"Does that tiny country of Japan really have a large amount of silver?"

Which emperor wouldn't want to mint more copper coins?

Who doesn't know that minting copper coins would benefit the whole country? But minting copper coins meant losses. Over time, the imperial court became unwilling to mint copper coins and instead used paper money to plunder the wealth of the people.

If silver could be brought under the control of the imperial court, the court would not need to use worthless paper like paper money, risking being scorned by the people, and could legitimately obtain goods from the people.

Zhu Di snapped out of his excitement and asked with some doubt, "But can finding a silver mine solve the problem of the Ming Dynasty's lack of money?"
"I have always believed that the people have a very high copper coin reserves. Over the countless years, various dynasties, especially the Song Dynasty, have minted so many copper coins, yet there are none in circulation. Where did all those copper coins go? Could exchanging them for silver solve this problem?"

Li Xianmu smiled and said, “Your Majesty, your concerns are perfectly normal. Silver is a very valuable metal, far more valuable than copper coins.”

Therefore, even those small pieces of silver were not valuable enough for ordinary people to use in their daily lives. After all, one coin could buy a steamed bun, so how much silver should one coin correspond to?
If all this silver is divided into small pieces, its purity will be compromised, and it will end up like copper coins.

Therefore, the real purpose of the emergence of silver was to activate all the copper coins in the market!
If the imperial court were to ship a ship full of silver from overseas and then announce to the world that it had discovered an extremely rich mineral vein to make up for the current shortage of copper coins.

What about the powerful and wealthy merchants who had stored large amounts of copper coins in cellars and other places?

"The value of silver will definitely depreciate, but copper coins will also depreciate significantly, especially since they are unsure how much silver they have or whether it can even replace copper coins. They will definitely use copper coins to buy things."

But this would have the same outcome as excessively issuing paper money; the common people would suffer the most. Their already meager copper coins would be severely devalued, which would be a huge problem!

"Then we'll have to see if Your Majesty can be ruthless. If you are willing to reduce taxes in many areas, or even not collect them this year, then ordinary people will have enough grain and other savings to survive this year. By this time next year, the copper coins in the people will have been completely exchanged once."

Moreover, the concept of equalization and standardization already existed in ancient times. The imperial court could formulate these policies based on the new prices to help ordinary people get through the most difficult year. As long as money was circulating, the financial situation of the Ming Dynasty would improve significantly.

"Once the common people have copper coins and silver, the Ming Dynasty will no longer need to collect taxes in kind, but can directly collect taxes in copper coins and silver, just like the Song Dynasty."

Li Xianmu's description was so wonderful that Zhu Di paced back and forth in the canopy. After a while, he turned to Li Xianmu and asked, "Where is that Ishimi Province?"
"I will immediately send men there to see if there is indeed a large amount of silver. If there is, Xianmu, this will be another great achievement for you!"

"The exact location of Iwami Province needs to be asked of the Japanese envoy, but I am certain that it is across the sea from our Great Ming Dynasty and is even closer to Korea. I am certain that Iwami Province definitely has silver, but the exact size of Iwami Mountain and the silver mine still needs further exploration."

Silver is not only something that our Ming Dynasty wants, but the feudal lords of Japan will not give it up either!

"Your Majesty, if you wish to acquire this silver mine, you must prepare for war."

Zhu Di first smiled contemptuously, then said arrogantly with deep disdain: "My Great Ming Dynasty is invincible!"

We fear no war what we fear least. Even the Mongols could only flee in the face of the might of our Great Ming Dynasty. What is there to fear from a mere Japan?

If they obediently hand over the silver mine, that would be fine. But if they are unwilling, Zheng He would probably be very willing to lead his fleet on a voyage to Japan!

Iwami Province? Iwami Mountain?
"Then let's build a garrison there!"

Zhu Di's tone was full of self-righteousness; this was the Ming Dynasty of this era!

In terms of military affairs, they are absolutely number one in the world!

……

As Li Xianmu walked out of the palace, he recalled the events that had just occurred in the hall, his impassioned speech, and the emperor's resolute stance.

It was both exhilarating and somewhat regrettable.

According to my father, using gold, silver, or copper coins was not the best method; paper money like the Ming Dynasty Treasure Notes was far superior.

Unfortunately, paper money was destined to fail in the Ming Dynasty, or any dynasty where the emperor held supreme power.

Therefore, he had no choice but to abandon this idea and instead opted for a system that was better for the Ming Dynasty at the time, with silver as the main currency and copper coins as a supplement.

Although this system will inevitably be undermined in the future, that will be by the time all the silver mines in the world have been exhausted.

He suddenly had a whimsical thought: "Father said that the key to paper money lies in credit and reserves. The Li family is probably the most trustworthy family in the world. If one day, after a hundred or two hundred years, the Li family's credit is known to all the world, could the Li family issue some paper money themselves?"

Just thinking about it made Li Xianmu's body tremble—it was a mixture of excitement and fear!
------

During the Yongle era, Li Xianmu suddenly learned of the existence of a huge silver mine in Japan. He used his excellent oratory skills to persuade the Ming emperor, which led to the famous "Iwami Knocking on the Gate" incident. The Ming fleet overcame the two failed expeditions to Japan by the Yuan Dynasty and successfully reached Japan.

This marked the first time in Chinese history that warships were dispatched overseas with the sole purpose of plundering resources. This represented a fundamental shift in political objectives compared to Zheng He's previous two voyages during the Yongle era, signifying the Ming Dynasty's gradual transformation from a conservative agricultural empire into a powerful nation with both land and sea dominance! —From *Five Hundred Years of the Ming Dynasty*

(End of this chapter)