Yongli Ming Dynasty

Chapter 353 New Money
Zhu Lang and Su Guansheng stand in the Baoquan Mint in the south of Guangzhou, where a craftsman is demonstrating the process of casting copper coins.
Red molten copper pours down from the holes above the template. After the molten copper is injected into the template, it will flow into the copper coin mold reserved inside. When the molten copper cools down, it can cast a plate of more than ten copper coins.

The copper coin is then smoked on the back by fire, and the edges are smoothed by a rotary wheel, and then a new coin can be cast.

At this time, piles of copper coins like small mountains can be seen everywhere in the workshop. They are all rough copper coins that have just been cast and have not been polished yet.
Zhu Lang casually took a copper coin from the pile of coins. The shape of the copper coin was still the common square-hole coin. The coin was golden in color, which showed that the copper content of this copper coin should not be too low.
Zhu Lang looked at the small flat coin in his hand. The front of the coin was engraved with the four characters "Da Ming Tong Bao", and on the back was only a "Gui" character at the top. This was the new coin that the Guangdong Provincial Court was about to issue.
Although Zhu Lang led the Western Expedition last year, he did not neglect making money. With the cooperation of the Zheng family, the Maritime Trade Department completely took over the Zheng family's maritime trade fleet and helmsmen.
Although the name of the Maritime Trade Department was changed, it was actually still the same team as the Zheng family. After Zheng Tai took over the Maritime Trade Department, he directly went to various provinces to purchase goods, starting the first official maritime trade of the Guangdong Provincial Court.

Last year, Zhu Lang invested 300,000 taels from the inner treasury to implement maritime trade. After Zheng Tai received the capital, he bought a large amount of raw silk, brocade, cotton cloth, porcelain and other commodities from Fujian and Zhejiang and shipped them to Japan.
Although the Zheng family was powerful in the past, they still lacked a layer of status. The Maritime Trade Bureau was now using the name of the imperial court, and the goods it purchased were all the finest products from various silk mills and kiln factories.

The goods purchased by the court this time were a level higher than those purchased by the Zheng family in the past. The silk was the top-grade Hu silk, the porcelain was produced by famous kilns in Fujian and Guangdong, and the cloth and silk were the finest products of various satin workshops.

After the fleet led by Zheng Tai arrived in Nagasaki, it immediately shocked Japan. Merchants in Japan bid for the fleet with higher prices, and the first trial trade of the Maritime Trade Department was a great success.
Last year, the capital allocated by the inner treasury for the sea trade was 300,000 taels, but the total value of the silver goods brought back by the ships of the sea trade department on the return voyage was more than 900,000 taels. In other words, the profit of this sea trade was 600,000 taels, almost double the profit.
When the Maritime Trade Department left Japan, in addition to purchasing local specialties such as sulfur shark fins, it also purchased a large amount of copper materials according to Zhu Lang's request. Last year, the Guangdong Provincial Court bought back as much as 2 million kilograms of copper materials from Japan.

Zhu Lang stroked the copper coin in his hand, looked at Su Guansheng beside him, and said

“How much copper is needed to cast one copper coin?”

Upon hearing this, Su Guansheng also responded directly

"According to your Highness' instructions, while ensuring the copper content, try to make the coins as light and thin as possible so that more copper coins can be minted."

"The new coins minted by the Baoquan Bureau only cost five catties of copper to mint one thousand coins, and one hundred catties of copper can mint twenty coins."

Last year, the imperial court brought back two million kilograms of copper from Japan. According to this ratio, the Hosen Bureau has already minted 400,000 copper coins.

"Since the coins have been minted, let's call Lord Qu and the others. It's time for something new to happen in the court."

Zhu Lang put the copper coins in his hand, a look of satisfaction flashed across his face, and he walked directly out of the square, while Su Guansheng, Li Chengzhi and others followed closely.

In the Baohe Hall, all the military officials were sitting in the hall. Qu Shisi, Jiao Lian and others were holding a brand new copper coin in their hands.
Qu Shisi examined the copper coin in his hand, but he was not surprised. It was common to recast new coins to announce the establishment of a new dynasty.

At this time, even the King of Lu and others on Zhoushan Island had already minted new coins. The Guangdong Provincial Court occupied half of the country, so what did minting some new coins mean?

All the ministers in the court knew that the Baoquan Bureau had minted new coins last year, but the expenses of the Baoquan Bureau were all paid by the palace treasury, and were not accounted for by the Ministry of Revenue.
Since His Highness did not use the money from the court to mint coins, the ministers in the court did not ask any more questions. It was not until today that everyone in the hall saw the appearance of the new coins.
Zhu Lang looked at Qu Shisi, Lu Daqi and others below and said

"What does Lord Qu think this new money is worth?"

"The new coin is bright in color and has a wax-swirled edge, so it is of high quality. However, the price still depends on the amount of copper. May I ask how much copper is contained in this new coin?"

At that time, there was actually no exchange rate for copper coins. The common practice among the people was to weigh the coins to determine their purity, and then calculate their value based on their weight. The so-called "ten or one hundred coins" were not recognized by the people at all.
Zhu Lang looked at Su Guansheng below, and Su Guansheng immediately stood up to report the situation of his copper coins.

The new coins in the court were brass coins. Each coin was made of eight cents of copper and two cents of zinc. Compared with the various inferior coins circulating in the world at that time, the new coins were already good enough to be called good money.
Although the new coins were of sufficient quality, in order to meet His Majesty the Regent's request to cast as many copper coins as possible, the weight of the new coins was reduced from the usual one qian and three or four fen to only one qian.

After hearing what Su Guansheng said, Qu Shisi thought for a moment and then spoke:

"Although the new coins are of good quality, they are thin after all. I think two strings of this batch of new coins should be worth one ounce of silver."

Upon hearing this, Zhu Lang shook his head and said

"This batch of new coins is priced at one tael per coin."

Zhu Lang went through so much trouble to transport copper back from Japan and invested so much manpower and material resources. On the one hand, it was to solve the problem of money shortage in the south at that time, and on the other hand, it was to obtain the seigniorage tax.

If two strings of new coins can only be exchanged for one tael of silver, how can he make money?
Japan is rich in copper ore, so the price of copper in Japan is also very cheap. The Maritime Trade Bureau only charges eight taels of silver for 100 kilograms of copper from Japan, plus the shipping fee and the labor cost of four taels required for casting. It costs an average of twelve taels of silver for the Hosen Bureau to cast 100 kilograms of 20-kan copper coins.

Last year, the imperial court minted 400,000 copper coins using 2 million catties of copper, spending 240,000 taels of silver.

If the ratio is one tael per guan, 400,000 guan is 400,000 taels, and the court can make a net profit of 160,000 taels.

But if the price is set at two guan to one liang, then these 400,000 guan would only be worth 200,000 liang. The court would not even be able to cover the cost of minting the coins, but would have to pay silver instead.
Upon hearing this, Qu Shisi frowned slightly and said

"Your Highness is planning to open up the exchange and use the court's treasury silver to maintain the price of the new currency."

Zhu Lang shook his head again and said

"The imperial treasury is not even adequate, how can we allow exchange?"

"Although this batch of silver is priced at one tael per guan, the imperial court only allows the people to exchange silver for cash, but will not open a channel for silver redemption."

“Then this will never happen.”

Qu Shisi also looked straightforward and said directly

As mentioned before, copper coins at this time were not priced by face value, but by weight. The court could certainly impose a mandatory value on the new coins, but the people would not buy into it.
The court forcibly determined the value of copper coins, which was no different from the previous dynasty's minting of ten-cent and hundred-cent coins. Both were just a means of plundering the people.
If a copper coin of the same weight is printed with the words "Dangbai" and it is said that this copper coin is worth 100 copper coins, who would believe it?

The court's strong exchange rate policy can certainly help to quickly collect a large amount of tax revenue in the early stages, but it will inevitably lead to resentment among the people.
When Qu Shisi thought of this, his heart sank and he said

"Now that the court is stable both inside and outside, as long as the war stops and we rest for a year or two, the court treasury will be full again. If the court forcibly sets the exchange rate for the new currency, it will surely cause unrest among the common people and merchants. Please think twice, Your Highness."

"Your Highness, please think twice."

Lu Daqi, He Wuzuo and others looked at each other and agreed. The court set the value of the new money high, and the common people would definitely not accept it, and no one would take the initiative to exchange it.

But the court wanted to introduce new money, so what should it do? Naturally, it would convert the new money into silver according to the exchange rate, and then distribute it to officials in the court as official salaries.

This is actually no different from converting official salaries into banknotes. It is just a disguised form of deduction.
The only difference between the two is that the new money is not as ruthlessly exploited as the treasure notes. At least the new money still has a certain value, but the treasure notes are so hard that they are not even suitable for wiping your butt.
The reason why the court officials were all against it at this time was because once this new money was forcibly issued, the first to suffer losses would inevitably be the officials in the court.
Qu Shisi, Chen Zizhuang and other cabinet ministers all spoke out in opposition. Although Jiao Lian and others on the right also felt that this was inappropriate, several military officials hesitated for a moment but did not say anything.
The issuance of new money by the imperial court does not fall into the military category. Military officials such as Jiao Lian do not understand the use of money and finance. Instead of speaking recklessly, it is better to listen to His Highness's words first.
Zhu Lang looked at Jiao Lian and the others who remained silent, and a hint of satisfaction flashed across his face. It was wrong to obey blindly, but for the army, it was obviously better to be obedient.
Zhu Lang glanced at the cabinet ministers who all opposed him, but his face remained calm.
Zhu Lang introduced the new currency to solve the financial situation of the Ming Dynasty at that time, not to make a quick buck. If it caused chaos among the people, it would also be a loss.

"You are worrying too much. The court did not introduce the new currency to exploit the people. Although the new currency is priced at one tael and one guan, the court must not break its promise to the people."

"I have another plan that will make the people willing to accept the new money. You elders may also come and discuss it."

After Zhu Lang finished speaking, he told the plan to maintain the currency value. After hearing this, Qu Shisi and other cabinet ministers also looked surprised and doubtful.

His Highness the Regent's method sounds feasible, but there is no precedent for this method before, and the ministers do not know what the result will be after this method is actually implemented. The ministers are skeptical, but Zhu Lang does not give them time to hesitate and directly decides to try out the new currency in Guangdong Province first.

In the Imperial Garden Study, Zhu Lang sat behind a desk. Two men in blue official robes looked nervous. They bowed down and saluted as soon as they entered the room.

"I, Hai Shuzu and Wang Jiyuan, the officials of the Ministry of Revenue, pay my respects to His Royal Highness the Regent."

When Guangzhou was defending the city, Zhu Lang ordered the whole city to collect grain. Hai Shuzu and Wang Jiyuan were the first to respond and donated all the rice in their own granaries.

After the war, Hai Shuzu and his partner were rewarded for their merits. They not only received a plaque for being righteous merchants, but were also granted official positions in the Ministry of Revenue. As a result, they also established a relationship with the Ministry of Revenue.

Last year, Su Guansheng implemented the system of converting salary grain into silver in the Ministry of Revenue. After the officials in the court received their salary grain coupons, the business run by these two people was responsible for converting the grain coupons into silver.
The name of the business run by the Hai family was Rishenghao, and the name of the business run by the Wang family was Ronghenghao. In just two years, the two businesses spread across Fujian, Guangdong and Guangxi provinces, and the two men became well-known wealthy businessmen in Guangdong Province.

At this time, two wealthy merchants stood in the hall with their heads down, their faces showing nervousness. Although they were officials in the Ministry of Revenue, it was really just an official position and they were not responsible for specific affairs.

Today, the two of them were at home when they suddenly received an imperial decree to go to the palace to meet the emperor. How could they not be nervous?
Zhu Lang looked at Hai Shuzu and the other man below and said

"How are the two businesses you are waiting for going?"

Hai Shuzu and Wang Jiyuan looked at each other and spoke respectfully.

"Last year, we received an order from the Ministry of Revenue to set up grain shops in the three provinces. Risheng is responsible for the eastern Guangdong and Fujian provinces, while Rongheng is responsible for the western Guangdong and Guangxi provinces."

"According to the court's arrangement, Guangdong Province is the focus. Now all prefectures and counties in Guangdong Province have established grain stores. Most of the grain stores in Fujian Province and Guangxi Province have also been opened. Only a few remote counties are still being opened."

People in Guangdong Province all believed that the Risheng and Rongheng were able to distribute grain throughout the two provinces because the two men had contributed grain and became imperial merchants.

But only the people in the Ministry of Revenue knew that the reason why these two grain companies were able to spread across the province so quickly was because of the strong support from the court behind the scenes.

The grain business is completely different from other businesses. The most important thing about the grain business is the channel for collecting grain. Whether the grain business can obtain a stable and low-priced rice supply locally is the key to whether it can be maintained.
This kind of business can only be run by wealthy merchants who are born in the local area and have strong connections. It is impossible for merchants from other places to interfere in the local grain business.
The two businesses could rely on their financial resources to buy land and open grain shops in various counties, but it was impossible for them to establish channels for collecting grain in various places in a short period of time.

The reason why these two grain stores were able to expand across the three provinces in a short period of time and successfully gain a foothold was that behind these two grain stores, there were official warehouses of the Ministry of Revenue supplying grain. Only the official warehouses of the Ministry of Revenue spread across various prefectures could support the rapid expansion of these two grain stores.
After listening to the two people's report, Zhu Lang did not ask about the situation of the two grain companies. Instead, he pointed to the copper coins on the table and said

"This is the new money minted by the court. Both of you are wealthy merchants in the Ming Dynasty. Please take a look at it."

When Hai Shuzu and the other man heard this, a drop of cold sweat immediately flowed down their foreheads. They knelt on the ground and said

"It is all due to your grace, Your Highness. We are terrified."

Zhu Lang chuckled and just waved his hand.
"You two are both meritorious officials. There is no need to be so polite. Stand up and see how much the new coins minted by the court are worth."

Hai Shuzu and the others heaved a sigh of relief when they saw that His Royal Highness the Regent did not seem to have any intention of knocking on the door. They stepped forward and took the copper coins on the table.
Hai Shuzu examined the new money in his hand, exchanged a few words with Wang Jiyuan in a low voice, and then replied:

"The best coins in circulation today are the copper coins minted by Emperor Chengzu. The copper coins minted by Emperor Shizong are also good coins. Seven or eight hundred coins can be worth one tael of silver. The worst are the copper coins minted in other provinces around the Jiashen period."

"These inferior coins only have half the copper content, and the rest is mixed with Japanese lead and other substances. The inferior ones will even break at the touch. People call them leather coins. These leather coins can be exchanged for one or two taels of silver for five or six thousand coins."

"Although the new coins minted by Your Highness are slightly lighter, they are of very good quality. The court has now won a great victory over the Qing invaders, and the people of all provinces have surrendered. If we use methods such as recycling the old copper coins, the new coins minted by the court should be able to maintain the level of 1,500 coins for one tael of silver."

Zhu Lang's eyes flashed with surprise when he heard this. He did not expect that Hai Shuzu's valuation of the new money was higher than that of Qu Shisi and others.
Hai Shuzu and his men were indeed from a merchant family, and they were extremely sensitive to the issue of currency. They even considered the stability of the currency value due to the credit of the imperial court.

Zhu Lang had a calm expression on his face. He looked at the two people below and said softly:

"The new currency in the court should be set at a rate of one kan to one liang"

Upon hearing this, Hai Shuzu and the other man's expressions changed slightly. Their previous assessment had already taken the court's credibility into account and overestimated it as much as possible, but His Highness the Regent was obviously still not satisfied.

When the two saw the new money, they had already guessed why His Royal Highness the Regent summoned them today.

His Highness the Regent insisted on setting the new currency at a ratio of 1:1,000, but the most that the people could accept was 1:1,500. What to do with the difference? Obviously, the two families had to bear it, but at this time, they obviously had no chance of refusing.
Zhu Lang ignored the two pale-looking people below and spoke directly

"I have something for you to do. Wait for the two grain stores to sell rice to the people at a rate of one thousand to one in new money."

Hai Shuzu was stunned when he heard this, but then he immediately reacted and said

"Your Highness wants to use rice to support the price of money."

"Yes, I want to determine the payment based on the grain."

In order to mint as many coins as possible, the new coins minted were too light, and one coin was worth less than one tael.

But the imperial court was unwilling to lower the price of money, so what should it do? It naturally tied the currency to the real object to stabilize the price of money.
What was the most common thing in Zhu Lang's hands? It was grain. Last year, Zhu Lang ordered all the generals in the court to take grain. At this time, the court had more than one million dan of rice, which was enough to support this batch of new money.
The reason why Zhu Lang wanted to reduce grain last year was also to prepare for the upcoming issuance of new money.

As long as there is enough rice in the court, the court can maintain its value even if it issues paper money, not to mention the copper coins which are already valuable.

"The price of grain in Guangdong Province is about 1 dan 1 liang 5 qian of silver. You two grain stores sell rice to the people at the price of 1500 qian per dan."

Zhu Lang looked at the two pale-looking people and spoke again

"Don't worry, I will issue more than this amount of new money, and your wealth cannot afford the expenses required to promote the new money."

"You can sell grain at the grain stores in each county with the new money. After you get the new money, you can withdraw one dan and one dou of rice from the official warehouses of each prefecture at the price of 1,500 new money. Do you understand?"

"We understand and will do our best to assist Your Highness in implementing the new currency."

Hai Shuzu and the other two felt relieved when they heard this, and then they immediately bowed and responded.
Although His Royal Highness the Regent gave them an extra bushel of rice, if the labor and transportation costs were taken into account, the two grain companies actually made no profit at all, and even lost some money.

But at this time they did not dare to ask for too much. Even if His Highness asked them to underwrite the new money, they could only obey his orders.
At this time, His Highness did not put the cost of introducing the new currency on them, and they were already cheering for His Highness, so how could they dare to bargain again?
(End of this chapter)