The Ming Dynasty's Five Hundred Years

Chapter 275 Finance
The Ming Dynasty's financial conference in the first year of the Hongxi reign was, according to the emperor's instructions, to review the entire Ming Dynasty over the past sixty years.

This was Li Xianmu's suggestion: "Even a farmer knows to compare the harvests of previous years with this year's. The imperial court naturally cannot lag behind. Whether the year was good or bad, we can find out by calculating at the end of the year."

In previous years, the grain harvest in Jiangnan was ten million shi (a unit of dry measure). However, if there were no natural disasters this year, the grain harvest would be much less. What could be the reason for this?
Is it a case of inaction by officials in Jiangnan, or is there some other problem? The local authorities and the Ministry of Revenue should provide an answer.

The emperor thought it was excellent and said with a smile, "This is how the Ming Dynasty's financial conference should be. We must truly expose some problems before we can solve them."

Therefore, all departments were quite cautious when reporting this year.

Overall, the finances in the first year of the Hongxi reign were quite good. However, the financial deficit was caused by the handling of the emperor's funeral, the new emperor's ascension to the throne, and a series of investiture ceremonies, which was within everyone's expectations.

After all, it was a big event last year, and no one expected that it would need to be held again this year. In modern times, this is equivalent to a country hosting the Olympics consecutively without making any profit, resulting in a huge deficit in the treasury.

After listening to the reports from each department, Zhu Zhanji did not express his opinion directly. Instead, he turned his gaze to Li Xianmu and asked, "Teacher, is there anything you would like to add or ask?"

Li Xianmu coughed lightly, first bowed to the emperor, then looked at everyone and pondered, "I have kept in mind what my colleagues said just now, and there are indeed some things I want to say."

The most important policy for a country is its people, followed by its finances.

This means that the first priority is the governance of officials. If the governance of officials is sound, then the people will be at peace. How can we then resolve the issue of wealth?

It's not just about collecting taxes, but also about how to spend those taxes.

Du Mu aptly described it in his "Ode to the Epang Palace": "They took every last penny and used it like dirt." Was the downfall of the tyrannical Qin Dynasty unrelated to such extravagance?
The ancient sages said that what is taken from the people should be used for the people.

What do you all think?

“What the Grand Secretary says is certainly correct, but the sages did not say how to use it for the benefit of the people. If we collect taxes from the people and then use them back, then why collect them in the first place?”

Even though those words were a bit harsh, Li Xianmu didn't think there was anything wrong with them. If the entire court were filled with people from his faction, he would really have to find a place to hang himself or seek help from his father in heaven.

No matter how much Zhu Zhanji trusted him, he would still leave an opposition party in the court. In this world, only the emperor wants to be free of any party. This is the principle that there cannot be two suns in the sky and two masters among the people.

Li Xianmu said calmly, "The court's efforts in managing the Yellow River, building the straight road, feeding the troops, reorganizing military equipment, and providing disaster relief are all for the benefit of the people. What does Minister Wang think?"

"Your Excellency is right; I was indeed short-sighted."

Li Xianmu did not refute the term "lower official" used to refer to him, as he was a first-rank official and held a higher position than the Minister of Justice in every respect.

Li Xianmu did not respond further, but continued, "Since Minister Wang thinks I am right, then please continue listening."

As the Minister of Personnel, I am well aware that if the administration is corrupt, the taxes levied by the court will not benefit the people, but will instead fall on officials of all ranks.

To rectify official corruption, we need to rely on the Ministry of Personnel's selection of talent, the Censorate's supervision, and even the Eastern Depot and the Embroidered Uniform Guard. But is that all?
I believe it's not just about that; it's about using a rigorous system to minimize the amount of money officials see and the extent to which they misappropriate it.

Leaving aside other officials, Zhu Zhanji was very interested in Li Xianmu's words, or rather, as an emperor, he was very interested in any means that could reduce corruption.

"Teacher, please explain in detail, and we can discuss it together."

"First of all, certain funds must be used for specific purposes. For example, if we want to build a palace, the Ministry of Revenue has allocated two million taels of silver to the Ministry of Works. How should those two million taels of silver be distributed?"
The amount of building materials needed, the amount of manpower and food needed—everything had to be planned in advance. How much material was needed? For example, how many giant trees were needed, and how much would each one cost? Or how many glazed tiles were needed for the palace roof, and how much would each one cost?
What if it exceeds a certain amount?
Moreover, this money should not be given directly. For example, if the amount needed for building the foundation is not specified, the Ministry of Revenue can allocate a portion first to build the foundation. After the foundation is completed, the imperial court will send people from various departments to inspect it and confirm that everything is correct before the Ministry of Revenue allocates the next amount of funds.

This dedicated approach prevents tampering, and even if tampering still occurs, failure to meet the stipulated deadline will result in punishment by the imperial court, which will surely deter some unscrupulous individuals.

This applies not only to the Ministry of Works, but also to all other ministries.

Wasn't the previous policy of returning the lost silver to the public a relatively good system? The amount of silver collected by the court has increased significantly.

Your humble servant believes that we should focus our efforts on building a sound system, rather than relying on the personal cultivation and morality of officials. It is simply against human nature to not let them take the money that is right in front of them. After all, the officials of the Ming Dynasty are still human beings, not saints.

For the sake of the officials, it's best not to let them see it.

Upon hearing this, Zhu Zhanji immediately laughed, "Teacher is right. I am not a saint either. No one would complain about having too much money. Not letting them see it is indeed a good idea."

Li Xianmu spoke eloquently, and the Minister of Works' face turned green, then red, which looked quite comical. The others were shocked; they didn't even need to look at the Minister of Works to know how ugly his face would be.

After all, Li Xianmu directly used the Ministry of Works as an example, implying, though not explicitly, that corruption within the Ministry of Works was very serious.

The Minister of Works had no way to refute this, since Li Xianmu had not named him.

It's not just the Minister of Works.
Others also looked grim. The Ministry of Works was certainly one of the most lucrative positions, but it wasn't the most lucrative. The government office that controlled salt was far more lucrative.

There is another government office, which has always been a lucrative post.

That was the department that managed the royal family's wealth. In the Han Dynasty, it was called the Shaofu (少府), and in the Qing Dynasty, it was called the Neiwufu (内务府). It was incredibly wealthy.

During the Ming Dynasty, there was an institution called Guanglu Temple, which was in charge of matters related to imperial sacrifices, banquets, wine, and food. Such an institution could easily accumulate a large sum of money in its account books.

While it might not be as extravagant as Emperor Daoguang's practice of spending twenty taels of silver per egg, embezzlement was inevitable.

Li Xianmu's actions were incredibly ruthless. Although this still wouldn't solve the problem of corruption, it would certainly curb the activities of some people. They realized that Li Xianmu had definitely thought this through for a long time and was genuinely determined to combat corruption, which was why he resorted to such ruthless methods.

but……

"Your Majesty, the ministers are all well-versed in the classics. Isn't it a bit too hurtful for Grand Secretary Li to slander most of the clean officials like this?"

If officials throughout the land were to find out, wouldn't it chill the hearts of the people? This humble subject feels that the Grand Secretary's decision is quite inappropriate, and humbly requests Your Majesty's wise consideration." The six ministers remained silent, but the Minister of the Court of Imperial Sacrifices couldn't hold back any longer. If this were truly implemented, he would be in dire straits.

"Head injury."

Zhu Zhanji gave him a cold look and said, "During the reign of Emperor Taizu, there were so many corrupt officials in the country that you couldn't kill them all. Now you're telling me that most officials are clean?"
Most officials are clean, so why am I cracking down on corruption? Am I just bored and have nothing better to do?
Remember this: starting with Emperor Taizong, the late Emperor Taizong, and I, the reason why we did not punish corrupt officials like Emperor Taizu did was not because we thought you were clean, but because we did not intend to make a big fuss over a few dozen or a hundred taels of silver!
After all, you are all meritorious officials. As long as you don't go too far, I will turn a blind eye and grant you this relationship between ruler and subject.

This is the Emperor's grace, a blessing bestowed upon you because he felt that you had done a great job, not because you were truly flawless.

Minister of the Court of Imperial Sacrifices, do you dare to say that you are flawless?
If you dare to speak, then state your name now, and I will have the Embroidered Uniform Guard and the Eastern Depot thoroughly investigate you.

Look at what gives you the audacity to spout such nonsense here!

Zhu Zhanji's voice was full of anger. These words made the Minister of the Court of Imperial Sacrifices kneel on the ground, trembling all over. He didn't even dare to raise his head and kept kowtowing and begging for forgiveness.

He was drenched in cold sweat, which completely soaked his inner clothes. His face was as pale as a sheet of paper, devoid of any color. Even his lips were trembling, as if he had just recovered from a serious illness and was trying to speak but was unable to.

Anyone could tell just how terrified he was.

The emperor's fury sent shivers down everyone's spines. Half a year after Zhu Zhanji ascended the throne, the court officials had all come to understand his character. He was not an emperor like Emperor Renzong, but more like Emperor Taizong, only not as stern.

"What do you all think of the method that the Minister of Personnel just mentioned? Is it feasible?"

Xia Yuanji immediately responded, "This humble subject thinks it is feasible."

His voice was clearly tinged with joy. Although he was not from a prominent family, he had always been favored and was now quite wealthy. He was not corrupt. Since taking charge of the Ministry of Revenue, as the chief financial steward of the Ming Dynasty, too many people had come to him asking for money, which annoyed him greatly.

Although Li Xianmu's system is designed to prevent officials from embezzling, it is also a huge benefit to the Ministry of Revenue. Li Xianmu is right: how can governance and finance be separated?
The corruption in the bureaucracy is due to corruption, and all that corrupt money comes from the Ministry of Revenue. Now that we are cleaning up the bureaucracy, we can also take care of the Ministry of Revenue.

The fiscal budget system that Li Xianmu created for the Ming Dynasty benefited Xia Yuanji greatly.

Seeing Xia Yuanji's unwavering response, Zhu Zhanji's expression softened, and he looked at the others.

Zhu Zhanji then said gently, "Gentlemen, please speak your minds. My court does not need a bunch of yes-men. Even teachers are not always without making mistakes. If you really feel something is wrong, you can naturally raise your opinions, as long as they are not absurd."

The cabinet members naturally did not object. They were all somewhat excited. They exchanged glances and restrained their excitement. Li Xianmu's words about revitalizing the cabinet were indeed true. Even after becoming the Minister of Personnel, a prestigious official position, he continued to tirelessly expand the cabinet's influence.

Because the cabinet currently holds the power to draft proposals for all affairs of the six ministries, five government offices, five temples, and two academies, once the system of dedicated funds for specific purposes is implemented, all major projects of each ministry will have to go through the cabinet, which will inevitably greatly increase the cabinet's power to control the ministries.

Although in theory the Six Ministries are not subordinate to the Cabinet, and the ministers and ministers of each ministry can directly consult with the emperor without going through the Cabinet, those are special cases. After all, it is impossible for them to consult with the emperor on everything, so there is no need to risk offending the Cabinet.

Although the emperor said to speak frankly, the Minister of the Court of Imperial Sacrifices was still kneeling in the hall. Anyone who actually believed him would be a fool.

Even Lee Hyun-mok's opponents did not want to speak out at this time.

They had just suffered a setback in the drafting of the bill and hadn't recovered yet. If they were to suffer another heavy loss on this non-core matter, they would be even less able to fight back against Li Xianmu later.

Moreover, this incident harms lower- and middle-level officials more, because corruption involves the entire chain, and now everyone is taking less.

These top officials actually had decent incomes, just like when the fire tax was abolished and the clerks suffered the most losses, while the officials were the ones who benefited.

If Lee Hsien-mu, the proposer of the policy, is not worried about being criticized, then what do they have to worry about?
After this mental preparation was done, officials came up with various arguments that there were no problems.

Although Zhu Zhanji was satisfied, he patiently asked twice more. Seeing that the ministers still thought there was no problem, he slowly nodded and said, "I also think there is no problem. It seems that you and I, the ruler and minister, have the same opinion."

The ministers in the hall twitched, somewhat surprised. Why was the emperor fishing?

Even Li Xianmu raised his eyelids slightly, somewhat speechless.

"Shiqi".

Yang Shiqi responded, "Yes."

"I entrust this matter to the cabinet. You will assist your teacher and the other cabinet ministers in writing out the complete policy. Submit a rough draft to me in three days, and I will review it."

"The minister obeys the order."

Such a momentous event for the Ming Dynasty was decided in just a few words.

It makes one realize something.

During the reign of Emperor Taizu, such matters were discussed at grand court assemblies.

However, since the Yongle period, the grand court assembly has become increasingly formalistic, with almost everything being discussed and implemented within small groups.

Everyone turned their attention to Li Xianmu.

As a result, Li Xianmu's power grew even stronger!
Sigrún has taught at the Iceland University of the Arts as a part-time lecturer since and was Dean of the Department of Fine Art from -. In – she held a research position at Reykjavík Art Museum focusing on the role of women in Icelandic art. She studied fine art at the Icelandic College of Arts and Crafts and at Pratt Institute, New York, and holds BA and MA degrees in art history and philosophy from the University of Iceland. Sigrún lives and works in Iceland.

Starting with the fiscal budget system, the Ming Dynasty's fiscal system gradually broke away from the framework of traditional dynasties, transforming into the fiscal system of a modern state. The dedicated use of funds for specific purposes—another powerful system—significantly improved the Ming Dynasty's finances, which had gradually deteriorated since the 21st year of the Yongle reign, and to a certain extent, temporarily curbed the emergence of corruption. This was another exploration by the Ming Dynasty in modern political systems, and such exploration was far from over during the reign of Li Xianmu. —From "The Annual Fiscal Conferences of the Ming Dynasty"

(End of this chapter)