The Ming Dynasty: The opening scene features Zhu Di angrily accusing him of illegitimate succession.

Chapter 93 Daily Lectures and the Way of Economics

Dai Sigong said, "Scholar Lin's method is exquisite and unparalleled. I am ashamed to admit that I am inferior to him. As for the subsequent conditioning, the main focus should be on calming the liver and extinguishing wind, nourishing yin and suppressing yang. It can be supplemented with medicines such as gastrodia and abalone shell, and we should proceed slowly."

Lin Yue immediately agreed: "What Physician Dai said is absolutely right, exactly what I thought."

The group discussed Empress Xu's follow-up care for another half hour, finalizing the detailed prescription and daily routine.

Seeing that everything was in order, Zhu Di felt relieved and said to Lin Yue, "Minister Lin, you've worked hard today. Go back to the side hall and rest."

I will summon you again for a meeting tomorrow.

Lin Yue thanked Kuai Yue and left the palace together.

The night was deep, and the two figures intertwined.

Kuai Yue said softly, "Lord Lin, if it weren't for you, the consequences of today's events would have been unimaginable."

Lin Yue thought to himself, if it weren't for him, Kuai Yue probably wouldn't have needed to treat the Empress at all.

But he still smiled and said, "Doctor Kuai, there's no need to be so polite. We are both serving His Majesty and the Empress."

"Take the microscope back to the side hall; I'll teach you how to use it another day."

Upon hearing this, Kuai Yue was somewhat puzzled. What did she mean by "teaching another day"? Was it a slip of the tongue?

That evening, Lin taught Yue many techniques for using a microscope.

The lecture was held as scheduled the following day.

The eunuch led Lin Yue into the Wenhua Hall, where everything was already neat and orderly.

On the throne, Zhu Di was dressed in casual clothes. To his left were the cabinet ministers, with Xie Jin and Huang Huai holding tablets and waiting for orders. To his right was Yao Guangxiao, dressed in black, with his eyes closed and his fingers twirling prayer beads, his breathing calm and composed.

Even the Crown Prince Zhu Gaochi was pulled over and sat at the end, looking respectful.

Seeing that Lin Yue arrived late, Zhu Di did not reprimand her, but simply raised his eyes and asked, "I wonder what you wish to discuss today, Minister Lin?"

""

Lin Yue said loudly, "Your Majesty, I wish to explain the principles of economics to Your Majesty and your ministers today."

"Economy?" Zhu Gaochi repeated softly, his eyes filled with doubt.

Lin Yue nodded and continued, "I have heard that the Ministry of Personnel has eight policies, the first being food, the second being goods, and goods being the circulation of currency."

The Zhou Dynasty established the Quanfu (泉府) to manage the market and collect taxes, in order to regulate the balance of the economy and alleviate the people's suffering. These are all basic economic principles. The Sui Dynasty's "Zhongshuo" (中说) first discussed the way of economics, directly pointing to governing the country, saving the world, and securing the foundation of the nation. The Book of Jin praised the talent of those who were capable of managing the economy, which also means that they had the ability to govern the country and bring peace to the people.

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The way of the economy is to enable everyone to do their best, farmers and workers to reap the rewards, goods to flow freely and trade routes to be open, so as to ultimately achieve prosperity for the people and sufficient national resources.

The health of the nation's economy is the foundation upon which Your Majesty can expand your territory and achieve your grand ambitions.

Zhu Di nodded slightly, signaling him to continue.

Lin Yue walked slowly to the table in the hall, took out the ancient coins and paper money he had prepared in advance, and began to speak eloquently.

"To discuss economics, one must first understand currency."

In ancient times, people bartered goods, exchanging grain for cloth and stones for tools. They could exchange what they had for what they lacked, and each got what they wanted. However, there were often those who needed grain but had no cloth, and those who had cloth but needed tools, making it difficult to complete transactions.

During the reigns of the Three Sovereigns and Five Emperors, natural treasures were used as a medium of exchange, and cowrie shells arose as currency. The *Discourses on Salt and Iron* states, "In ancient times, there were no knife-shaped coins in the markets; people exchanged what they had for what they lacked." Because cowrie shells were rare, their value was universally recognized; this was the rudimentary form of currency.

"From the Shang and Zhou dynasties onward, bronze became prevalent, and cloth coins, knife coins, and round coins appeared one after another, their value determined by the weight of the metal, and they circulated more and more widely."

In the fourth year of Emperor Wu of Han's Yuanshou reign, the national treasury was depleted, and the white deer in the Shanglin Garden had become a problem. Thus, the "white deer skin currency" was created. A square deer skin, one foot in size, was decorated with embroidery and priced at 400,000 coins. It was ordered that feudal lords must use it as a gift when paying homage to the emperor.

This coin itself had little practical use, but because the imperial court forcibly promoted it and relied on imperial authority, it could be used as valuable as ten thousand gold pieces. This is clear evidence that credit supports currency.

"During the Tang Dynasty, commerce flourished, but copper coins were too heavy to carry over long distances, so flying money first appeared in Yizhou." Merchants would deposit their money with the government and receive a voucher, which they could then use to withdraw their money in other places. This was the beginning of remittance and an extension of credit money.

During the Song Dynasty, the paper money system flourished. It used government-reserved gold as collateral, and a single sheet could be worth a thousand coins. The Song History records that "people were allowed to deposit money to obtain paper money, which was then printed on paper." Because its credibility remained strong, it was able to operate for a long time.

He changed the subject abruptly, picked up the Ming Dynasty banknotes on the table, and said loudly.

"At the beginning of the founding of our Great Ming Dynasty, we promoted paper money in order to control the currency."

Unfortunately, the issuance was excessive, with no reserves and no exchangeability for gold or silver. Just as Guanzi criticized, "The currency is light while everything else is heavy." In the twenty-second year of Hongwu's reign, in the Jiangxi region, two thousand cash coins could only be exchanged for five hundred copper coins. Now, they are piled up in the markets, ignored by passersby. This is because credit has vanished.

At this point, Lin Yue turned to look at Zhu Di and asked, "Your Majesty, if I may be so bold as to ask, what do you believe is the true nature of money?"

Zhu Di was initially startled when he saw Lin Yue turn around to look at him, but when he saw that Lin Yue did not scold him but only asked a question, he felt relieved.

Emperor Yongle pondered for a moment and said, "Currency is money, something that can be exchanged for goods."

"What Your Majesty said is not wrong, but it does not address the root of the problem." Lin Yue cupped his hands and said, "Guanzi said that gold and coins are the common currency of the people. The essence of currency does not lie in itself, but in the word 'credit'. It is indeed a universally recognized and universally accepted token of trust."

Whether a currency is usable and valuable has some relation to whether it is gold, silver, or just a piece of paper, but the key lies in whether people believe in it and whether they can use it to exchange for things of corresponding value.

"With trust, a single piece of paper is worth a thousand pieces of gold; without trust, even if it is made of gold or silver, no one will accept it." Lin Yue picked up a blank piece of paper from the table.

"Your Majesty, I hereby write that you may exchange this receipt for ten bushels of rice." If Your Majesty were to affix the imperial seal and proclaim to the world that the government recognizes this receipt, and the people could use it to exchange for rice at the government granary, then this piece of paper would be more effective than silver.

However, if a subject writes in private, without the imperial seal or the court's endorsement, even if it is copied with gold foil, the grain shop manager will only treat it as waste paper.

The white deer-skin coins issued by Emperor Wu of Han were originally made of ordinary deer skin, but because they were backed by imperial power, they were worth 400,000 coins. Later, due to excessive issuance, their value collapsed, which illustrates this point.

Lin Yue held the banknotes between his fingers: "These Ming Dynasty banknotes are the very bond of trust between His Majesty and the court."

"It circulated initially because the people trusted the court and His Majesty. Now it's worthless precisely because the court has broken its promise, issuing excessive amounts of paper money without providing sufficient exchange. The people can't exchange these precious notes for rice or grain, so naturally they've abandoned them."

Zhu Di frowned slightly, seemingly understanding but not quite: "According to you, currency itself has no meaning, and is entirely a product of the court's credit?"

"Yes and no." Lin Yue waved his hand. "The Mo Jing says that whether a merchant is suitable or not depends on whether he desires it or not."

There are many kinds of goods in the world, including cloth, grain, and utensils, which vary in value. Without a unified standard, it is impossible to know how much cloth can be exchanged for grain, and it is difficult to determine the weight of utensils when exchanging them for silk.

"Money is this unified yardstick," assigning value to everything, allowing buyers and sellers to immediately discern price differences without the need for repeated negotiation or guesswork.

"And most currencies also have intrinsic value." He picked up a copper coin. "Gold can be used to make utensils, silver can be used to cast ornaments..."

Brass can be used to make agricultural tools, and these tools are useful in themselves, which is the natural basis of their credibility.

As a universal form of currency, money needs not only intrinsic value but also the backing of the imperial court's credit; the two complement each other.

Zhu Gaochi listened intently and couldn't help but speak up: "What Scholar Lin said means that currency must not only have intrinsic value, but also that the court must keep its promises, only then can it be considered secure."

"In the present Ming Dynasty, what His Highness the Crown Prince said is absolutely right." Lin Yue nodded.

"If the measure of currency is accurate and stable, then prices throughout the world will be stable."

In the past, Emperor Wu of Liang in the Southern Dynasties cast five iron coins. Iron was cheap and easy to obtain, and counterfeiting arose among the people. Eventually, iron coins piled up like mountains, prices soared, and traders carried money by cart, no longer keeping track of the amount. This was the disaster of the collapse of the monetary system.

Conversely, during the reigns of Emperors Wen and Jing, money was plentiful while goods were scarce, and both the emperor and the common people were prosperous. It was precisely because of the stable currency that people enjoyed peace and happiness.

His gaze swept over the people in the hall, and his tone was solemn: "Now, in our Great Ming Dynasty, the paper money has lost its credibility, copper coins are in short supply, private minting is rampant, sand-printed coins and goose-eye coins are flooding the market, and prices are in chaos. This is the way to bring about chaos."

As Guanzi said, "If a ruler controls grain, currency, and metal, the world can be at peace." Currency stability is indeed the key to governing the world and benefiting the people. To bring peace to the world, one must first stabilize the currency; to stabilize the currency, one must first establish credit.

This is the core of economic principles, and also the most important aspect of Your Majesty's governance and stability.

The hall fell silent for a moment. Yao Guangxiao slowly opened his eyes, his gaze deep and profound.

Xie Jin wrote quickly on the bamboo slips, his gaze occasionally sweeping over Lin Yue, clearly indicating his lack of approval.

Zhu Di stroked his bushy beard, about to speak, when he suddenly saw a man slowly rise from the front row of the cabinet.

It was Xie Jin, a Hanlin Academician.

He held the ivory tablet in front of his chest and bowed deeply to the throne, his movements meticulous.

When he raised his head again, he had a serious and dignified appearance, and his words were firm and resounding.

"Your Majesty, I believe that what Scholar Lin just said is a method of neglecting the essential and pursuing the trivial, and is by no means the right way for an emperor to govern the world and secure the country."

'

He paused, glanced at the officials in the hall, and finally looked back at the throne.

"The foundation of governing a country lies in the Confucian virtues of benevolence and righteousness, not in the pursuit of wealth and calculation. The correct way to manage finances lies in lightening taxes and levies, not in competing with the people for profit, and not in empty and unsubstantiated paper money."

The Analects says, "The superior man understands righteousness; the inferior man understands profit." Mencius begins by saying, "Why must the king speak of profit? There is only benevolence and righteousness. When superiors and inferiors contend for profit, the state is in danger!" The Great Learning also clearly states, "Virtue is fundamental; wealth is secondary. If the fundamental is neglected and the secondary is prioritized, the people will contend and plunder."

This is a golden rule for governing the world passed down by sages and worthies from three generations, and it is the fundamental principle for emperors to rule the world.

Since Your Majesty ascended the throne, you have resisted the tyrannical Yuan dynasty in the north and pacified the various vassal states in the south. You have compiled the Great Code with the aim of achieving unparalleled feats that surpass those of the Han and Tang dynasties. The purpose is to win the hearts of the people and consolidate the foundation of the nation, rather than to open up new avenues for profit or pursue trivial gains.

If the entire nation prioritizes monetary speculation and monetary manipulation, then officials will abandon benevolence and righteousness for profit, and the common people will abandon agriculture and sericulture for commerce. Propriety, righteousness, integrity, and a sense of shame will vanish. How can the foundation of the nation be secure? How can the country remain stable for long?

At this point, Xie Jin stepped forward, pointed at Lin Yue, and shouted at him.

"Scholar Lin said that the rise and fall of dynasties were related to the stability of currency, which I think is a great mistake!"

Throughout history, all dynasties have governed based on benevolent policies to nurture the people, and none have ever prospered the nation through commerce and financial management.

During the reigns of Emperors Wen and Jing of the Han Dynasty, taxes were light and levies were low, with a tax rate of one-thirtieth. The ban on counterfeiting coins was abolished, allowing the people to rest and recuperate. No unnecessary construction projects were undertaken, and no profits were sought from the people. As a result, the country was prosperous and the treasury was full. This was the result of benevolent governance, not the trickery of monetary policy!

In contrast, Emperor Wu of Han issued white deer skin currency, arranged marriages, and established state monopolies on salt and iron, competing with the people for profits. Although the treasury was full for a time, it led to the depletion of the country, the reduction of the population by half, the displacement of people, and the rise of bandits. If it were not for his edict of repentance issued at Luntai in his later years to cease hostilities and allow the people to recuperate, the Han dynasty would have almost collapsed!

Scholar Lin's use of the white deer skin currency as clear evidence of its legitimacy should serve as a cautionary tale, not a model to be followed!

"Regarding the former Song Dynasty, Scholar Lin claims that its commerce was prosperous and that paper money was widely circulated. Little does he know that the Song Dynasty perished precisely because it valued profit over righteousness."

Wealth is hoarded by officials, and profits are plundered from the people!

The Southern Song Dynasty, confined to the south of the Yangtze River, further exacerbated the situation by issuing excessive paper money, causing prices to soar. A dou (a unit of dry measure) of rice cost ten thousand coins, making life unbearable for the people and ultimately leading to the loss of their hearts and minds.

Scholar Lin only mentions the prosperity of commerce in the Song Dynasty, but avoids discussing how paper money, competing with the people for profit, led to the downfall of the empire. Isn't this putting the cart before the horse?

Xie Jin then shifted his focus, directly criticizing Lin Yue's core argument that "the essence of money lies in credit."

"Scholar Lin said that the essence of currency lies in credit, not in the currency itself. A piece of paper is worth a thousand gold pieces if it has the credit of the imperial court, but it is worthless paper if it has no credit."

I believe this statement may have some merit, but it will inevitably lead to success and failure depending on the person who makes it!

The reason why gold, silver and copper coins could be used as currency throughout the world is because they are rare and valuable, naturally formed and not something that can be artificially created.

Paper money is nothing more than a piece of mulberry bark and a few strokes of ink; the court can print as much as it wants. So-called credit is nothing but empty talk!

"Throughout history, how many people have been able to keep this promise?"

In the beginning, there may be some approval and some restraint, but once the national treasury is empty, border conflicts arise, and construction projects are launched, which one is not filled by the excessive issuance of paper money?

This has been the case since the founding of the Song and Yuan dynasties, and even since the founding of our Great Ming Dynasty!

The credibility of paper money is like a tower built on sand; it will collapse at the slightest storm, and in the end, it is the common people who will suffer!

Scholar Lin said that paper money is the yardstick for measuring prices. I believe that only gold, silver, and copper coins can serve as that yardstick!

At this point, Xie Jin bowed again, his tone earnest.

"Your Majesty, our Great Ming Dynasty has not been established for long. The Jingnan Campaign has just ended, and the people are still suffering from the wounds. In Shandong, Henan, Beiping and other places, there are still a large number of refugees who have not returned, the fields are barren, and agriculture and sericulture have not yet flourished."

The most urgent task is to implement benevolent governance, reassure the people, encourage agriculture and sericulture, develop water conservancy projects, reduce taxes, and allow the people to rest and recuperate, rather than promoting trade, opening up profit-making opportunities, using paper money as a deceptive tactic, robbing the people of their wealth, and emptying the national treasury!

"Emperor Taizong of Tang once asked Wei Zheng: 'What should be the priority in governing a country?' Wei Zheng replied: 'Benevolence and righteousness are the principles.'"

Emperor Taizong kept his word, reduced taxes and levies, and did not compete with the people for profit, ultimately achieving the Zhenguan era of prosperity, when the whole country was at peace and all nations came to pay tribute.

"If Your Majesty wishes to achieve feats surpassing those of the Han and Tang dynasties, you should emulate the sage kings Yao, Shun, Yu, Tang, Wen, Wu, and the Duke of Zhou, practicing benevolent governance, spreading virtue, winning the hearts of the people, and consolidating the foundation of the nation, rather than emulating Emperor Wu of Han, Emperor Huizong, and Emperor Shun of Yuan, who pursued short-sighted gains, implemented corrupt policies, lost the hearts of the people, and destroyed the foundation of the nation!"

He straightened up, his eyes burning, and shouted.

"Your humble servant dares to speak out: paper money is empty and worthless, and is a natural evil to the people. It must be completely abolished and we should return to the proper way of copper coins from the Han and Tang dynasties!"

"What a blessing this is for the world, for the people, and for the Ming Dynasty to be forever secure!"

After Xie Jin finished speaking, he bowed deeply and did not rise.

Crown Prince Zhu Gaochi sat upright on the mat, his expression solemn, and nodded slightly, clearly agreeing with the sentiment.

Xie Jin's words were more in line with his tastes. He didn't have a good impression of Lin Yue's ideas about credit currency and the stock market.

Zhu Di's gaze swept over the bowing Xie Jin, then looked at Lin Yue standing in the hall, and he felt a little uneasy.

What's wrong with Xie Jin? Why is he speaking in such a way, like Lin Yue? What? Are you, Xie Jin, also going to die for your cause?

No sooner had Xie Jin finished speaking than Lin Yue couldn't wait to retort.

"You, Jie Jin, have only studied for a few years and you really don't know anything. You talk about Confucianism and Mencius's benevolence and righteousness, but in reality, it's all empty talk that harms the country and the people!"

You say that reducing taxes and levies is the right way, but the remnants of the Northern Yuan are eyeing us covetously, the Japanese pirates in the southeast are burning, killing, and looting, and the people in the Central Plains are displaced. Which of these situations doesn't require real money to cover the losses?

Can you really pay the border troops with your so-called benevolence and morality? Can you really distribute land to displaced people for cultivation? Can you really stop the Mongols' swords?

"Were those Japanese pirate ships?"