The Fierce Teacher of Zhenguan: Starting with Teaching the Crown Prince to Make a Comeback

Chapter 184 This little storm won't capsize the ship.

Fourthly, regarding the economy and people's livelihood.

Li Yichen began to delve into more core areas.

"Your Highness, the Crown Prince's bonds are currently physical certificates. If paper becomes cheap enough and anti-counterfeiting technology can keep up, could we consider issuing a smaller denomination 'paper money' specifically for market circulation in the future?"

"It replaced heavy copper coins, making them easier for merchants to carry and promoting the circulation of goods."

He knew in his heart that this was a crucial step toward paper money, which is how the Jiaozi and Huizi of the Song Dynasty originated.

However, he could only guide Li Chengqian in this direction, but could not directly state the concept of paper money.

"Paper money?" Li Chengqian was shocked.

"Using paper as money?" This idea is too subversive.

Li Chengqian also knew that some people were using bonds as currency.

That's because you can exchange it for real money after two years.

The fact that it was used directly as currency had a huge impact on Li Chengqian.

"It is not the paper itself that is money."

Li Yichen explained patiently.

"Instead, it served as proof of authenticity, representing copper coins or silk stored in the official treasury or designated storerooms."

"The holder can exchange this 'paper money' for real money and silk at any time."

"Because of its portability, it will naturally gradually circulate in the market."

"Of course, this matter concerns the foundation of the nation and requires extreme caution. There must be sufficient anchors, and the issuance volume must be strictly controlled to establish absolute credibility."

"But without innovation in papermaking technology, this is simply impossible."

He knew in his heart that the creation of fiat currency required extremely complex conditions.

But this doesn't prevent us from sowing the seeds in theory first.

Li Chengqian felt his head buzzing, as if he could replace the heavy copper coin with a light piece of paper.

This idea is absolutely groundbreaking!
But upon closer examination, he realized that if the exchange rate could be guaranteed, it would indeed be extremely convenient for large-scale trade.

“And another thing,” Li Yichen continued, listing before he could process the information.

"Private contracts, account books, and household registrations can all be done on paper."

"If this can be promoted, civil disputes will decrease due to unclear contracts, and it will be more convenient for the government to manage household registration and collect taxes."

"Physicians can use paper to record prescriptions and pulse diagnosis records, which can be passed down to future generations."

“Craftsmen can use paper to draw more detailed patterns. They can even use paper to record agricultural seasons and celestial phenomena... Its uses are endless.”

He concluded.

"Your Highness, the innovation of paper may seem like just a change in one thing, but it may actually affect the efficiency of the entire society."

"It can make information transmission faster and wider, knowledge accumulation easier, business activities more convenient, and government management more refined."

"This is the key to truly consolidating the foundation of the nation and ushering in a golden age. Its significance, in some respects, may be no less than that of a great victory."

Li Chengqian was completely awestruck by the scene described by Li Yichen.

He originally thought that paper was just an improvement on writing materials.

Unexpectedly, it involved all aspects of politics, military affairs, economy, and people's livelihood.

It even subtly points to a more efficient and powerful model of national governance.

This is far more significant than he previously understood "printing books".

A long silence fell over the hall.

The charcoal fire was dying down, but it felt as if a fire had been ignited in Li Chengqian's heart.

He looked out the window and saw that the sky had darkened sometime earlier.

"The teacher's words enlightened the student."

Li Chengqian's voice was slightly hoarse and excited.

“In the past, I only felt that the road ahead was complicated, but now it seems that the path is becoming clearer. Goguryeo needs to make a quick decision to stabilize its current credibility.”

"Agricultural tools need to be promoted to demonstrate the court's capabilities."

"And the innovation of paper is related to the fate of the nation for decades to come!"

He stood up, and although his right leg was still not in good condition, his posture was upright and firm.

"The students know what to do."

The next day.

Inside the Liangyi Hall, the air was filled with the fragrance of sandalwood.

Inside the hall, he was accompanied by the lingering contemplation between Li Shimin's brows.

He had just finished reviewing a routine report from the Ministry of Civil Affairs, which mentioned that the circulation of money and grain in the market seemed to be sluggish recently.

Although not explicitly stated, the words subtly refer to the recently issued "Zhenguan Yuguo Certificate".

Almost simultaneously, a secret report from the Inner Palace Secretariat was quietly delivered to the Emperor's desk, mentioning that wealthy merchants in the East and West markets were secretly inquiring about whether they could transfer their "Zhenguan Certificates" at a discount, or asking whether the Crown Prince's bonds could still be purchased.

“Zhenguan voucher…Eastern Palace voucher…” Li Shimin’s fingers unconsciously tapped on the sandalwood imperial desk.

He was not completely ignorant of economics.

Having spent half his life in the military, he deeply understands that provisions are the lifeblood of an army.

Upon ascending the throne, he further realized that the national treasury was the foundation of the nation.

In his view, issuing bonds was merely another form of lending, using the prestige of the imperial court as collateral to alleviate immediate financial difficulties.

He was pleased with the Crown Prince's successful issuance of bonds at the Eastern Palace, and even praised this flexible approach.

Therefore, when the national treasury was somewhat strained due to border defense and water conservancy, he adopted the suggestion of the Ministry of Civil Affairs and, following the example of the Crown Prince, issued the "Zhenguan Yuguo Bonds".

With the might of the Heavenly Khan and the national strength of the Tang Dynasty.

Five hundred thousand strings of cash, how could that be a problem?
However, reality seems to be not so simple.

He keenly observed the undercurrents in the market.

What struck him as odd was that, despite being bonds issued by the Crown Prince, the bonds issued by the Crown Prince not only did not fluctuate but also circulated more widely among the people.

It even shows a tendency to become a high-value currency.

It is said that some merchants have begun to use bond certificates bearing the seal of the Crown Prince directly in their transactions.

“Credit…” Li Shimin murmured to himself.

He had heard the Crown Prince mention this word before, and had also seen it many times in the Crown Prince's memorials.

The crown prince seemed to value this item highly, believing it to be worth more than a thousand pieces of gold and to be related to the foundation of the nation.

Li Shimin acknowledged that the court needed credibility and the emperor needed prestige.

But can the word "credit" really be so mysterious?
How could two seemingly similar pieces of paper have such different fates?
He pondered.

If the Zhenguan bonds really run into problems, the most severely affected will undoubtedly be the aristocratic families who have purchased large quantities of bonds.

Thinking of this, a faint hint of coldness flashed deep in Li Shimin's eyes.

The Guanlong Group, the Shandong gentry... these deeply entrenched forces, while contributing to the establishment of the dynasty, also frequently hindered imperial power, seized land, and protected the population.

If we can take this opportunity to slightly dampen their momentum and cause them to lose some money, it seems... not entirely a bad thing.

"In the end, these are bonds issued by me."

Li Shimin quickly suppressed that thought; as an emperor, he needed to weigh the overall situation.

While he could accept the loss of powerful families, he did not wish for it to undermine the prestige of the court.

However, he quickly felt relieved.

What problems could possibly arise?

It's nothing more than anxious speculation among merchants.

Once the three-year term is up, the national treasury will allocate funds and grain to repay the principal and interest, and the turmoil will naturally subside.

As for how market prices fluctuate during this period, that's their own business and has nothing to do with the imperial court.

What does it have to do with me? The court is willing to lend and repay; that is the greatest credit!

He was confident that with the wealth of the Zhenguan era and his prestige as Li Shimin, there was no way he couldn't redeem a bond worth 500,000 strings of cash.

This little storm won't capsize the ship.

"Your Majesty, His Highness the Crown Prince requests an audience."

The eunuch Wang De reported softly, interrupting Li Shimin's thoughts.

"Summon them." Li Shimin composed himself and sat upright on his throne.

Li Chengqian entered the Liangyi Hall, his steps slightly unsteady due to his foot ailment, but his demeanor remained composed.

He performed the rituals in a calm voice.

"My son, I will meet my father."

"Flat body."

Li Shimin's gaze fell on his eldest son.

"What brings you to see me at this hour?"

Li Chengqian straightened up, but did not immediately answer the specific questions. Instead, he pondered for a moment.

"Father, I have recently heard rumors circulating in the market that there seems to be some criticism of the Zhenguan Yuguo Bonds. I am somewhat worried about this, so I have come to report this to you."

Li Shimin raised his eyebrows slightly, remaining calm and composed.

"Oh? What worries the Crown Prince?"

"What I am worried about is not the bonds themselves, but the credit of the court that they are tied to."

Li Chengqian carefully chose his words, knowing that his father might not entirely agree with this concept.

"The credibility of bonds lies in the issuer's ability and determination to repay."

"Capability is related to the national treasury, and determination is credibility."

"The current market's wait-and-see attitude is probably not unfounded. The lessons of the Sui Dynasty are still fresh in people's minds. If the Goguryeo affair causes widespread doubts about the court's ability to repay, it could damage the foundation of the nation."

Li Shimin listened, his fingers still lightly tapping the imperial desk, his face revealing neither joy nor anger.

"Does the Crown Prince believe that the court will break its promise to the people? Or does he believe that I will break my promise to the world?"

"Your subject dares not!" Li Chengqian immediately bowed.

"With the Emperor's divine might and the court at its peak, there is naturally no cause for concern. However, the foundation of trust is like a mound of earth, not something that can be built in a day."

"The destruction of faith may only take a moment, a single thought, or a few rumors. I simply believe that it is always better to nip problems in the bud and proactively maintain faith than to try to remedy them afterward."

"How do we proactively maintain this relationship?" Li Shimin asked calmly.

"Could it be that the imperial court is going to guarantee the market price? Or is it going to make early payment? Once a contract is established, how can it be treated so lightly?"

"The imperial court will repay the money as agreed when the time comes, which will be the greatest demonstration of its credit! As for how things may fluctuate in the meantime, that is a matter for the merchants to weigh the pros and cons themselves."

Li Chengqian sighed inwardly, knowing that his father had not truly understood the importance of "credit" as a systemic asset.

They still cling to the traditional understanding of "paying back debts".

He tried to speak again.

“Father, the value of credit lies in its stability and predictability.”

"If doubts persist in the market about the government's ability to repay its debts, even if the government ultimately fulfills its obligations, the losses incurred during the process, and the potentially higher costs the government might face if it borrows again in the future..."

Li Shimin waved his hand, interrupting the crown prince.

"Gao Ming, I understand your thoughts. The affairs of the court are numerous and complex; how can one be as petty as a merchant?"

"I know what I'm doing. The Zhenguan voucher will be repaid on time! There's no need to discuss this further."

He looked at his son, his tone softening.

"I am very pleased that you have considered this matter and care about the prestige of the court. However, there are some things that you cannot see at the moment. Just do your job well."

Knowing that further persuasion would be futile, Li Chengqian stopped pressing the matter and changed the subject.

"Your Majesty, I understand. There is another matter to report. The Ministry of Works has recently improved several agricultural tools, such as the curved plow and the iron shovel, based on the ideas presented by the craftsmen of the Directorate of Works."

"After trying it out, it is quite labor-saving and efficient, which is conducive to in-depth cultivation."

"Your subject believes that this is a good tool that benefits agriculture and sericulture, and it should be promoted throughout the country as soon as possible to increase the strength of the people and strengthen the foundation of the country."

Sure enough, upon hearing this, Li Shimin smiled genuinely.

He firmly believed that agriculture and sericulture were the foundation of a nation, and that increased grain production was the cornerstone for solving all problems.

"Excellent! This is a great thing!" he praised.

"The Ministry of Works' dedication to this matter and the Crown Prince's attention to it are both commendable."

"As you have suggested, the design shall be immediately sent to all prefectures and counties in the name of the court, ordering them to reproduce and promote it."

"The necessary materials and labor can be raised locally, and the imperial court may also provide subsidies as appropriate. We must ensure that the new equipment is used in the fields as soon as possible!"

"Your subject obeys the decree," Li Chengqian replied.

"The Crown Prince will also dispatch skilled craftsmen to various places, paying particular attention to areas such as Shandong and Hebei that have previously suffered from disasters or have barren land, to provide guidance and ensure the effectiveness of the promotion."

"Yes, that's well thought out."

Li Shimin nodded, very satisfied.

Promoting agricultural tools and increasing grain production are tangible achievements that give him more peace of mind than the vague "bond credit".

"Food is the paramount necessity of the people. When grain is plentiful, the world is at peace. Doing this well will bring lasting benefits."

Seeing that his father's mood had improved, Li Chengqian then steered the conversation to the most pressing situation at present.

"Father, Goguryeo's Yeon Gaesomun has murdered his emperor and rebelled against the Tang Dynasty. He is extremely arrogant. I believe that although the court needs to be prepared, it must not allow him to grow too powerful."

"We should expedite all deployments and strive to achieve a swift and decisive victory before the start of next spring. Only in this way can we stabilize the northeastern border at the lowest possible cost, and also... bring peace of mind to both domestic and foreign populations."

His last sentence subtly touched upon the concerns behind the bond crisis.

Li Shimin's expression turned serious, and his gaze sharpened.

"I have decided to punish this barbarian!"

"The various departments in the court are also implementing the strategy of exhausting the enemy as you previously suggested. Preparations are being accelerated. Troops, provisions, and weapons all require time."

"Your Highness, since you are assisting in some military affairs, you will need to put more effort into this matter. I hereby authorize you to participate deeply in military planning and to discuss matters extensively with Li Ji, Cheng Zhijie, and others."

"Your subject obeys the decree and will certainly do his utmost."

Li Chengqian was certain that what he wanted was permission to participate deeply.

He hesitated for a moment, then decided to take it a step further.

"Father, in order to coordinate with the army's operations, I have, as you requested a month ago, trained a small team of about two hundred men, specializing in reconnaissance, harassment, and sabotage."

"Perhaps... before the war, they could be sent to Goguryeo territory to carry out some special missions."

"For example, to spy on military intelligence, or... to seize the opportunity to burn down their grain and fodder storage sites and disrupt their rear."

"Oh?" Li Shimin was quite surprised to hear this and scrutinized Li Chengqian.

"Brilliant! Military and national affairs are no child's play. Spying on military intelligence is one thing, but burning provisions... how easy is that?"

"Although Goguryeo is small, it is not without defenses. Are two hundred men going deep into enemy territory to carry out such a great undertaking... a bit too much of a gamble?"

His tone was clearly skeptical.

Although he had seen Li Chengqian's training methods before, he felt that the number of participants was too small.

Moreover, Li Shimin viewed these trained men as assassins.

As for the Crown Prince's claim that this group of people could bring glory to the family, Li Shimin felt it was impossible.

In his mind, a large-scale military campaign relies on direct confrontation, and a surprise attack also requires a considerable force. What can two hundred men accomplish?
Li Chengqian had anticipated his father's reaction and responded calmly.

"Your Majesty is wise. This group of soldiers has broken up into smaller units and infiltrated behind enemy lines, or may take advantage of the darkness in the mountains to strike at any opportune moment."

"The objective is not to annihilate the enemy, but to create chaos, strike at their vital points, exhaust and harass them, and prevent them from having peace, thus creating a favorable opportunity for our army's subsequent actions."

"Your subject dares not say that it will definitely succeed, but it is worth a try. Even if it fails, the losses will be within a controllable range."

(End of this chapter)