Ming Dynasty: I risked my life to teach the prince, the emperor begged me not to die

Chapter 486 Currency Reform
Only Chen Ce and Emperor Hongzhi were left in the sauna room. Both of them were shirtless, leaning against wooden boards with their backs. The coal around them was burning, emitting waves of hot air.

The smell of coal is easily removed through the exhaust vents, and although the sauna is hot, it will not cause poisoning.

Chen Ce and Emperor Hongzhi were sweating profusely, and Emperor Hongzhi was enjoying the rare peace and quiet.

Chen Ce said, "Your Majesty, there shouldn't be any problems with this voyage. If the voyage is successful, have you ever thought about the future?"

Chen Ce had long been accustomed to having such conversations with Emperor Hongzhi, so in such a private space, he had no scruples.

Emperor Hongzhi closed his eyes, covered his face with a hot towel, and asked Chen Ce casually, "What future are you considering?"

"You kid, you haven't even come out for a test voyage, and you're already thinking about the future?"

Chen Ce smiled bitterly and said, "If you don't think about the future, you will have immediate worries."

Emperor Hongzhi: “…”

To be honest, I, the emperor, am beginning to feel inferior to him. You worry more than I do.

"Tell me."

Chen Ce thought for a moment and said, "If the voyage is successful, our trade with other countries on the ocean will open up. While we are harvesting their money, why don't they use our Ming Dynasty to achieve their own development?"

"The current national currency system is silver. Even though we have a silver mountain in Japan, using silver as currency will eventually bring disaster to the country."

At this point, Chen Ce paused, and was interrupted by Emperor Hongzhi: "What does this mean? Why can't I understand?"

Chen Ce said: "Silver resources are non-renewable after all. There is no way to produce silver independently. The resources will eventually run out."

"A large amount of silver is circulating outward. Once the silver storage is insufficient, the national finances will collapse."

"Of course, this is a bit of an exaggeration, but no matter what currency it is, it is ultimately a reflection of a country's credibility. If we want to control the surrounding maritime nations in the future, we can't rely on war alone. The best option is to defeat the enemy without fighting."

“Economic warfare will be crucial in the future.”

"If we start planning to establish a settlement unit using the Ming currency now and force overseas countries to settle trade with us in our currency, then it won't be long before the Ming currency dominates the world."

“If some countries have disloyalty towards us in the future, we only need to lower our exchange rate with that country, and their economy will soon collapse.”

"Let me give you a simple example."

Chen Ce was afraid that Emperor Hongzhi would not understand, so he explained: "For example, we now use Hongzhi coins and Tongbao as the currency of the Ming Dynasty. When settling accounts with overseas countries, we can collect silver or local currency from them."

After all, island countries also have their own monetary systems, and not all of them use silver as the base currency for settlement. You have Tongbao as a small settlement unit in Hongzhi, while other countries can also use silk, shells, copper plates, iron coins or even gold coins as settlement units.

This creates an exchange rate difference.

"The exchange rate between overseas currencies and Ming Dynasty's local currency is, for example, three to one, meaning three overseas currencies can be exchanged for one Ming Dynasty's local currency. If we lower the value of our local currency, then overseas currencies will need five or even ten to be exchanged at the same price as ours."

"In this case, their country will inevitably experience inflation and currency depreciation. Then the people of the country will fall into turmoil..."

The process was very complicated, and Chen Ce explained it for a long time. Emperor Hongzhi went from being ignorant at first to gradually understanding, and finally he directly lifted the towel covering his face. His eyes widened and he gasped frequently!

It's not that he hadn't thought about currency reform, issuing paper money and new currency at the beginning, but he didn't think too much about it when he did these things. He just wanted to create a currency with Hongzhi characteristics so that he could leave his name in history.

But now his thoughts have changed, especially after Chen Ce said this, his expression gradually became solemn and he began to think quickly.

With the development of science and technology, future trade will definitely be globalized. Overseas countries will definitely be eager to trade with us. As long as their ships can keep up, it will be imperative to use the ocean to exchange global resources.

This is the trend of the future.

If the Ming Dynasty does not make arrangements in advance, even if it is thriving now, it is likely to be overtaken in the future.

This was something Emperor Hongzhi did not want to see at all.

Now that we have the opportunity to plan for the future, why not give it a try?
Emperor Hongzhi was silent for a long time before he asked Chen Ce the most crucial question: "How can we exchange with the other party? How can we maintain the credibility of the currencies on both sides?"

Emperor Hongzhi raised two issues. The first was the issue of currency exchange, and the second was the issue of currency price.

After all, the value of gold and silver cannot be equal, and the currency of the Ming Dynasty and overseas currencies cannot be settled equally.

Chen Ce said: "As for the emperor's first question, it is very simple."

"Bank... well, it's a money house."

"We can set up money houses in various customs offices to exchange international currencies."

"The second question is to give a reasonable estimate based on the other party's development situation."

"For example, how much local currency is needed in Ming Dynasty for a piece of silk, and how much local currency is needed in the other country? During the next great voyage, the value of the goods can be marked and converted into equivalent currency for settlement."

Emperor Hongzhi said hurriedly: "So the goal of the voyage is not only to deter pirates and promote national prestige, but also to pave the way for the future global trade and currency exchange system?"

Chen Ce nodded and said, "That's the theory."

Emperor Hongzhi pondered for a long time before nodding his head, staring at Chen Ce seriously and saying, "Chun Jian, I can't do these things. There are not many people in the Ming Dynasty who can do it. It can even be said that there are none."

“Only you can lead.”

"I trust you, but can you... still make it to the other side?"

Chen Ce was silent for a while before he said seriously, "I will try my best. During this period, I will also write down all my thoughts and ideas and give them to the emperor."

"Even if I am no longer around in the future, the Emperor can continue to pave the way for the future of the Ming Dynasty based on my blueprint!"

Emperor Hongzhi sighed deeply and whispered, "Chun Jian... The cabinet has gone too far in bullying me, the prince, and you."

"I plan to replace Liu Jian. The things that happened to you recently were not done by Liu Jian, but by me."

Chen Ce: "I know."

Emperor Hongzhi seemed to think this was reasonable, after all, he was Chen Ce.

"Do you blame me?"

"If the voyage fails, you will bear all the mistakes for me."

Chen Ce shook his head and smiled, "I am going to die soon, why would I care whether I am carrying a great reputation or a bad reputation?"

Emperor Hongzhi took a deep breath and said, "I will not treat you unfairly!"

(End of this chapter)