The fierce grandson of the Ming Dynasty

My first encounter with the "national debt theory".

Zhu Yuanzhang's thoughts were in turmoil!

He was worried about the overcrowded prisons and what to do about it!

His grandson then offered him some ideas...

Zhu Xiong Ying then added a patch, continuing, "Grandfather, this type of debt can be classified as 'atonement debt.' Based on the severity of their crimes, a specific amount should be determined, and they should be required to pay it with silver!"

"But buying debt doesn't absolve you of your crime; it only reduces it. Those who should be dismissed will be dismissed, those who should be stripped of their titles will be stripped, and those who should be flogged will be flogged..."

"Most of these people were wealthy households who participated from the sidelines, such as grain chiefs, gentry, and low-level officials. They not only valued their lives and families, but also had money hidden away."

"Give them this chance, let them atone with real gold and silver. First, with punishment in hand, the people won't complain! Second, lock it all up in the inner treasury; it can serve as a dedicated reserve for the paper money!"

"In this way, with the silver we have, we can fill the foundation of the paper money in just a few months."

"As for those officials who have committed heinous crimes, they are not included in this category. They should be executed or tortured without mercy!"

Much of the silver in the Ming Dynasty was hidden in the hands of the gentry.

Taking advantage of the Guo Huan case, Zhu Xiong Ying's "extermination plan" happened to strike at the lifeline of officials, gentry, and wealthy families.

In fact, similar instances of the imperial court incurring debt existed as early as the pre-Qin and Han dynasties!

For example, King Nan of Zhou borrowed money from wealthy households to raise funds for his campaign against Qin, and signed contracts, which eventually led to the idiom "debt piled high".

However, this plan is just another form of "robbing the rich to help the poor," and it cannot last.

To regulate government bonds, it is ultimately necessary to establish an effective cycle and rebuild the foundation of credit.

Zhu Xiong Ying added, "The national bonds my grandson is thinking about include not only bonds of atonement but also bonds of peace and prosperity!"

"Grandson understands that supporting troops and cultivating land in the north, repairing the Yellow River, and providing disaster relief all require money!"

"In that case, let's issue special peace bonds, and let wealthy households and salt merchants buy them with silver, with a fixed annual interest rate for them!"

"For example, you can buy a bond worth one hundred taels of silver, which will pay a certain amount of interest every year, with terms of one year, three years, five years, ten years... and can also be used to offset salt permits and commercial taxes!"

"Grandpa, you see, these types of national bonds, in essence, are simply ballast stones that transform the idle silver in the hands of the people into precious paper money! And there's no need to increase taxes on ordinary people!"

"Let me propose a second method, the target of which is precisely the various foreign states..."

That wasn't all. They noticed that Old Zhu was sitting up straight, listening attentively, and didn't object.

Zhu Xiong Ying breathed a sigh of relief.

His grandfather was conservative and stubborn by nature, and he was extremely opposed to borrowing money from the people!

If that were done, the court would feel "morally deficient and incompetent"!

Therefore, the Great Ming Treasure Note was designed, hoping to solve the financial crisis by getting something for nothing!

But times have changed, and circumstances are beyond our control...

Old Zhu had no choice but to give it a good look!

At this point, he added, "Therefore, we should bind the precious paper money to trade, expand the scope of mutual markets, and thus absorb all the silver from overseas countries into our Great Ming!"

"Let the paper money not only be the legal tender of our Great Ming Dynasty, but also the common currency of foreign lands!"

"Your Majesty can set a rule: all those who trade with our Great Ming, whether paying tribute or engaging in private commerce, must use the Great Ming Treasure Note as the sole legal currency for settlement!"

"During this period, all foreign merchants and tributary states' delegations must first exchange their silver and gold for paper money within the Ming Dynasty... Otherwise, trade cannot commence!"

"Ordinary merchants, when trading with foreign merchants, are only allowed to accept paper money, not gold or silver. Anyone who violates this rule will have their goods confiscated and be exiled to the army!"

"Once this rule is established, silver from both within and outside the country will flow into our Great Ming Dynasty like rivers entering the sea!"

"The more silver the inner treasury holds, the more banknotes can be issued, and the more stable the credit will be..."

Moreover, it can transfer domestic currency risks and achieve financial and trade hegemony.

The following discussion.

Zhu Xiong Ying was describing a blueprint.

But it reveals a key point, both overtly and covertly.

That's the opening of the fishing season!

Moreover, this statement is blatantly contrary to the decree issued by Zhu four years ago to "prohibit coastal residents from privately communicating with overseas countries"!

They belong to another sore spot!

Even the entire court of civil and military officials did not want to lose their heads.

No one would have dared to make such a suggestion.

Only Zhu Xiong Ying dared to take advantage of this day to have a good talk!

Seeing that his beloved grandson had finished speaking.

Zhu Yuanzhang frowned and pondered for a long time.

Leaving aside the previous debt settlement.

Regarding foreign trade and the exchange of gold, silver, and paper money, what Da Sun said was not without reason.

However, in some aspects, the thinking is too simplistic!

First came the Japanese pirates at sea, which are truly a major threat!

Expanding maritime trade would inevitably embolden the Japanese pirates.

Only by fortifying the walls and clearing the fields can we defend the southeastern gateway...

Secondly, if maritime trade is opened up, everyone will be busy doing business to pursue profits, so who will farm?

Looking at his beloved grandson who had picked up a teacup, Zhu Yuanzhang said in a deep voice, "We have heard what our grandson said."

"Then the debts of atonement, and the debts of peace... that is, the government bonds you mentioned, are worth a try!"

"But maritime trade is no child's play!"

"The threat posed by the Japanese pirates to our Great Ming Dynasty is no less than that of the northern barbarians! We cannot completely abandon them; the consequences would be far too great!"

Upon hearing the preceding sentence.

What's clear about Zhu Xiong Ying is that Old Zhu also wants to make money!

That makes things much easier.

What he needs to do now is to dispel Old Zhu's concerns.

"Grandpa, you may have misunderstood your grandson!"

"What my grandson means by increasing trade with foreign countries does not mean lifting the maritime ban, nor does it mean a complete opening of trade!"

"Instead, the ports were restricted, centrally controlled, and only the imperial court was allowed to participate, forming large-scale official caravans..."

"As for the Japanese pirates you mentioned, the reason they pose a threat, in my opinion, is that our Ming Dynasty's navy is not strong enough! Furthermore, we haven't established a systematic naval force!"

"The key is not passive defense, but to pinpoint the source and take the initiative! Furthermore, it should combine suppression and appeasement, precisely targeting the ringleaders while pardoning those who were coerced!"

The source here is none other than Japan and the remnants of Zhang Shicheng's anti-Ming forces!

The problem of Japanese pirates existed from the Hongwu to the Jiajing reigns, but this was due to a fundamental problem: the approach was always to treat the symptoms but not the root cause!

This also caused the Ming Dynasty to miss the Age of Exploration.

When it comes to eradicating the Japanese pirate threat, Zhu Xiong Ying has a lot to say.

This discussion, however, provided Zhu Yuanzhang with a different perspective...

"Your Majesty, Imperial Physician Dai has arrived!"

The eunuch entered, interrupting the conversation between the grandfather and grandson.

Zhu Yuanzhang turned his head and said, "Your words, Grandson, have given us a lot to think about!"

"We'll discuss these matters with your father!"

"Guards! Summon Dai Sigong to an audience!"

……

Kunning Palace.

Due to the numerous official duties, Dai Sigong was summoned for questioning.

When Zhu Yuanzhang returned to the inner palace, it was already very late.

Zhu Xiong Ying returned an hour earlier and told Empress Ma the good news about the smallpox vaccine. Exhausted, she immediately went to sleep.

Seeing her husband return, the couple sat down.

Upon hearing about the medicine for preventing smallpox and its actual effectiveness, Empress Ma exclaimed with a smile, "Chongba, look at our Xiong Ying! It's truly a treasure bestowed upon us by Heaven!"