In Hongwu, we started as rebels

Chapter 1012 The currency of a nation is its foundation.
The Wuying Hall was so quiet that one could hear the faint crackling of the incense burner.

The atmosphere was extremely tense!

The eunuchs knelt on the ground, their heads bowed low, not daring to even breathe loudly.

After the initial shock subsided, Han Yike was left with only a blank expression.

He was originally an imperial censor, but after joining the Market and Exchange Bureau, he learned some of the ways of the merchants.

But Lu Yunyi's words sounded like gibberish.

He couldn't understand why the implementation of the Single Whip Law led to the court's initial prosperity followed by decline.
Why could bartering sustain itself for a century?

Having established its status as a silver-producing nation, it could only last for fifty years?
Not only him, but the chief eunuch, who considered himself well-read,

Having been immersed in the palace for years, he had a deeper understanding of the court's policies than many officials, yet even he was completely bewildered by what he heard.

But he secretly glanced at Zhu Yuanzhang,

Seeing His Majesty's face so solemn it could drip water,

He then realized that things were as serious as Lu Yunyi had said, and quickly lowered his head even further.

The hall remained silent for a long time, then suddenly the sound of clashing armor rang out.

Marquis Guo Ying of Wuding hurriedly walked in.

He noticed the eerie silence inside the hall and, fearing something was wrong, went in to check.

Almost instantly, he sensed the frozen atmosphere.

Just as he was about to turn and leave, Zhu Yuanzhang, who was at the head of the table, broke the silence and said calmly:

"Guo Ying, come here and listen, someone is plotting a rebellion."

Marquis Guo Ying of Wuding bowed respectfully, his expression remaining unchanged.
He had heard so many rumors of rebellion over the years that they no longer stirred any emotion within him.

Once he had stopped, Zhu Yuanzhang looked at Lu Yunyi and asked in a deep voice:

"Speak your opinion. In my view, silver is something that everyone in the world recognizes. How can using silver for trade become the root of trouble?"

Lu Yunyi took a deep breath, his face thoughtful, and said softly:

"Does Your Majesty still remember the salt famine in Jiangnan during the twentieth year of the Zhizheng era?"

Zhu Yuanzhang frowned, and his tapping paused:

"I remember that the price of salt rose from five coins a catty to thirty coins. Ordinary people could not afford salt and could only eat plain food. Some people even went to the government office to protest. In the end, Zhang Shicheng sent troops to forcibly quell the disturbance."

"That is exactly what it is."

Lu Yunyi pondered for a moment, then said in a deep voice:
"May I ask Your Majesty, was there truly a salt shortage in Jiangnan at that time?"

"No shortage."

"Your Majesty is wise. In my opinion, the salt shortage is a disaster."

It was those big salt merchants who took advantage of the chaos to hoard silver and monopolize the salt fields!
At that time, the Yuan dynasty was in chaos, and currency had long been devalued, so people mostly bartered.
Only silver and gold can circulate normally.

This matter was planned starting in the seventeenth year of the Zhizheng era.
Initially, salt merchants controlled sixteen salt fields in Jiangnan.
According to historical records, the process of quickly collecting money, grain, and silver from ordinary people, government officials, and rebel armies in various regions by lowering prices lasted for a year and a half.

By the following year, according to the market's calculations,

The salt merchants of Jiangnan had accumulated nearly two million taels of silver.

The common people's silver was emptied, and even the government and army's reserves were almost depleted.

With less silver available in the market but still plenty of salt, the price of salt fell instead of rising, attracting some people to use their savings to buy salt. This period lasted for another six months.

Later, due to factors such as soaring grain prices, war and chaos, and persistently low salt prices,

There was almost no silver left in the market, but salt was piling up everywhere.

Some saltworks couldn't hold on and had to keep lowering prices, creating a vicious cycle that eventually led to their closure.

At this time, salt merchants who had previously hoarded silver began to buy up salt from salt fields at low prices.
The original sixteen salt fields increased to nearly eighty-nine within a month.

After the salt fields were completely taken over, they began to reduce production and raise prices, with production capacity plummeting from 100% to 10%.

Now, with little silver and salt remaining on the market, prices began to skyrocket.
It took only one month for the price to rise from a low of two coins per catty to thirty coins.

Because salt is an essential food.

The people's wealth was further squeezed dry, and the salt merchants accumulated more and more silver.
Just as they were preparing to acquire the remaining salt fields again,

Zhang Shicheng sent troops to suppress the rebellion and seized some salt fields, turning them into state-run operations, which stabilized the price of salt, but it still remained at around five copper coins.

Even so, those salt merchants had already made a fortune and even controlled more salt fields; this is what having enough money can accomplish.

Lu Yunyi took a deep breath, and seeing the puzzled looks on everyone's faces, he added:
"What I want to say is that silver is just a medium. If you have enough silver, you can control the pricing power."

Salt is an essential commodity for ordinary people. Silver can be used to suppress, raise, or control the price of salt.
Not only that, they also control grain, cloth, ironware, and tea—all daily necessities. Which one of them can escape?

Controlling these vital aspects of life—clothing, food, housing, and transportation—is tantamount to controlling the people of the world.

By then, will the imperial court still be in control of the country?
"Or are those merchants who hold vast sums of money and monopolize the lifeline of the world in charge?"

Zhu Yuanzhang's face gradually darkened; he had already experienced this kind of thing during the chaotic times.
"Your Majesty, let me explain the accounts of the Market and Exchange Bureau again."

Lu Yunyi bowed respectfully, his tone softening slightly, yet revealing even greater sincerity:

"Last year, Henan suffered a severe drought, and the imperial court allocated 100,000 shi of millet for disaster relief. It was purchased with paper money. Although there was a discount, paper money was still money recognized by the imperial court and could be used to buy grain."

He changed the subject, his tone turning somber:
"But what if we use silver for disaster relief?"

They didn't have as much silver in the warehouse.

Having lost the power to set prices for these necessities, we can only let them ask for exorbitant prices.

As for the claim that using silver can keep money and grain stable, that's utter nonsense!

When those grain merchants say they can exchange one tael of silver for six shi of millet, what can the imperial court do?
Ultimately, the disaster relief grain will not reach ordinary people; it will only enrich grain merchants and make ordinary people suffer more.
This is the terrifying thing about money not being in the hands of the imperial court!

Only then did the group vaguely begin to understand what was going on.
Marquis Guo Ying of Wuding asked in surprise:
"Can't the imperial court keep the silver firmly in its own hands?"

Lu Yunyi smiled:

"Lord Wuding, then why use silver? Isn't paper money easier to control?"

Guo Ying was stunned and speechless.

Lu Yunyi continued:

"Your Majesty, Your Lordship, construction is easy, but destruction is difficult."

Nowadays, officials and clerks in the court and local areas, scholars, and those other scholars...

They have people, land, and power.
Many people also run businesses and want to get some silver from the imperial court; it's just a matter of lifting a finger.

The imperial court might be able to withstand it for a year or two.
But after ten or twenty years, the imperial court will eventually be hollowed out.

At that time, it wouldn't be impossible for an egg to sell for ten taels of silver to the imperial court.

If this continues, the imperial court's wealth will inevitably fall short of that of the common people, and the balance of power will reverse.

Marquis Guo Ying of Wuding's expression turned stern.
He was born during the chaotic Yuan Dynasty and knew the turmoil of that time all too well.
While an egg might not cost ten taels of silver, a knife costing ten taels of silver was the norm.

Seeing his silence, Lu Yunyi looked up at Zhu Yuanzhang and said in a deep voice:
"Your Majesty, I am not exaggerating."

Take the Market and Exchange Bureau as an example. If cement merchants were not under the control of the imperial court and fell into private hands,

Can Yingtian afford to repair the roads? Can the houses be renovated? Can the north-south trade route be rebuilt?
Even if it could be repaired, how much silver would the imperial court need to purchase cement?

Upon hearing this, everyone instantly realized what was happening, and their expressions tightened.

Cement workshops outside Yingtian City were already established, and the cost of cement was only a few coins.
Road repairs and house reconstruction didn't even require the government to pay, because cement merchants didn't seek profits, yet they still made a surplus.

But if it falls into private hands, merchants, driven by profit, will not raise prices even if they do.

Charging the imperial court only at the current price, after a year,
The imperial court will have to spend at least several million taels more to purchase cement.
Now, the imperial court only needs to issue paper money to pay the artisans their wages.
As for the paper money, it was simply printed by the Ministry of Revenue, and only printing costs needed to be paid.

Zhu Yuanzhang sat at the head of the table, his expression subtle.

Although I don't fully understand the intricacies of business, I do understand human nature.

At times like these, anything that officials in the court reach a consensus on and push forward with all their might is mostly profitable, or even for personal gain.

He took a deep breath and said in a low voice:

What Yan Qing and Yang Qing said is not without reason.
Although the paper money was issued by the imperial court and used for paying salaries and purchasing goods, it was worthless among ordinary people.

Many officials and clerks complained that I was heartless and unwilling to give out real money.

A glint flashed in Lu Yunyi's eyes as he glanced at the palace maids and eunuchs in the hall, and said in a deep voice:

"Your Majesty, please dismiss your attendants."

Zhu Yuanzhang waved his hand, and the chief eunuch quickly got up, led everyone out, and closed the palace door behind him.

The palace doors shut out the outside noise, and Lu Yunyi whispered:
"Your Majesty, to increase the value of the paper money, all you need to do is reduce the amount of silver in circulation." "How?"

“Use paper money to buy silver from the people, then seal it in the treasury and stop its circulation.”

How do I buy it?

Lu Yunyi hesitated, and all eyes were on him.

After a moment, he gritted his teeth and said:
"Your Majesty, you may order the merchants under the jurisdiction of the Market and Exchange Bureau to cease all gold and silver transactions and use only paper money."
"Now that the paper money in the capital is worth 70% of silver, this can be used to artificially create the illusion of its appreciation."

Zhu Yuanzhang frowned, instantly understanding his intention:

"Do you want the people to feel that exchanging silver for paper money is more worthwhile, and to voluntarily exchange their silver for paper money?"

"Your Majesty is wise," Lu Yunyi said, bowing.

"We can also order the Ministry of Revenue's Treasury to open up more opportunities for exchanging paper money, so that people can openly exchange silver for paper money and take advantage of this."

At the same time, the imperial court wanted to tighten the channels for exchanging paper money for silver.
Severely punish underground banks that secretly trade gold and silver to prevent silver from falling into the hands of powerful families.

Zhu Yuanzhang frowned in deep thought. Although Marquis Guo Ying of Wuding didn't fully understand, he keenly sensed an opportunity to make a fortune.

He had stockpiled a considerable amount of paper money in his household, which he could only use at a discounted price on ordinary days.

If one could use precious paper money to shop at Yingtian Trading Company,
Wouldn't that mean making 30% for nothing?
Han Yike breathed a sigh of relief; finally, someone dared to bring up the matter of underground banks and private currency exchange.

This is something that everyone in the capital knows, but no one has ever mentioned.

Because all officials in the capital received their salaries in paper money, they needed to go to these places to exchange it for silver.

Seeing everyone remain silent, Lu Yunyi continued:
"Furthermore, the Market Exchange Bureau can also agree with suppliers throughout the capital region that future payments will only be made in paper money."

Even the imperial estates within the palace must cooperate in this matter!

Han Yike's eyes widened suddenly, and she exclaimed in surprise:

"Sir, isn't this a bit too much of a leap?"

"Lord Han, hesitation will only lead to more trouble. Temporary pain is better than a terminal illness."

These words seemed to provoke Zhu Yuanzhang, who clenched his fist tightly and said in a deep voice:
"Have the Market and Commerce Department draft a detailed implementation plan and discuss it with the Ministry of Revenue."

"Yes, Your Majesty!"

Lu Yunyi breathed a sigh of relief. As long as this door was opened,
With the help of the Yingtian Trading Company, which controlled the trade routes through thousands of villages in the capital region,

The paper money will soon become widespread, and within a few years it will become a habit, and then it will be gradually promoted to other regions.

Forcefully implementing government orders can easily lead to local governments paying lip service while secretly resisting; it's better to proceed gradually.

He gathered his thoughts and said again:
"Your Majesty, I have another matter to report."

"explain."

"Your Majesty, I impeach Kong Tianzong, the Right Vice Minister of the Ministry of Revenue, for spreading heresies and undermining the foundation of the state. I earnestly request Your Majesty to imprison him for a thorough investigation, uncover the mastermind behind him, and eliminate the traitorous party!"

"We'll discuss this further. You may all leave."

Zhu Yuanzhang waved his hand, seemingly exhausted by the successive turmoil, and his face showed a rare look of fatigue.

Lu Yunyi did not move, but continued to bow with his hands clasped:
"Your Majesty, I believe that anyone who speaks out against abolishing the paper money should be executed, and anyone who strongly advocates for the Single Whip Law should also be executed!"

Zhu Yuanzhang didn't say anything more, he just waved his hand, leaned back in his chair, and closed his eyes to rest.

Lu Yunyi bowed respectfully.
"My minister retire."

He and Han Yike slowly withdrew from the main hall.
Just as Marquis Guo Ying of Wuding was about to turn around and call the eunuch in, Zhu Yuanzhang suddenly spoke:
"Guo Si, did you understand what he just said?"

Guo Ying stopped and honestly shook her head:

"Your Majesty, I find this like gibberish."

"Heh heh." Zhu Yuanzhang chuckled and asked again, "Then do you think he's right?"

Guo Ying pondered for a moment, then said in a deep voice:

"Your Majesty, I do not know."

However, Lu Yunyi is not greedy for women or money, and he takes power lightly. He only becomes somewhat mad on the battlefield.

If we compare him to the officials in the court, I am willing to believe his words.

Your Majesty, I have witnessed the changes in the capital region over the past few years.
Thanks to the existence of the Yingtian Trading Company, the villages are connected to the outside world, and while not every household has surplus money, they are certainly much better off than before.

In some villages near the capital, schools were even built.
I heard it was funded by Yingtian Construction Company and a group of suppliers.
Such a scene would be considered the pinnacle of prosperity in any dynasty!
I know that everything has its advantages and disadvantages.

The Gyeonggi region has become what it is today, with both good and bad aspects.
Although people are restless, at least there are more people who have enough to eat and more people who have work to do.
This was all done by loyal and righteous people like Lu Yunyi.

Zhu Yuanzhang nodded, his voice filled with emotion, tinged with emptiness, and revealing a deep-seated weariness:

“There is one thing he didn’t say, but I know.”

Guo Ying looked up, her face showing confusion:
"Your Majesty, please enlighten me."

"A few days ago, some people maliciously suppressed land prices in the capital. Many people from the Six Ministries submitted memorials, asking the court to use the national treasury to support land prices and stabilize the situation in the capital region."

I don't trust others to manage so much silver.

So he asked Lu Yunyi to handle it, but Lu Yunyi ended up making a profit from the matter.

Now, in hindsight, he must have ruined many people's plans and thwarted their schemes.

After that, land prices plummeted from forty taels to ten taels.

Someone else submitted a memorial requesting the court to provide financial support to prevent the people of the capital region from losing everything, but I ignored it.

If I had listened to them both times and ordered the Ministry of Revenue to pay up the price, the national treasury might already be empty.

With this shift in power, if the Single Whip Law were reinstated, the situation in the court would be completely different.

Guo Ying's expression changed drastically as she realized what was happening:

"Your Majesty, this...this is a series of conspiracies?"

Zhu Yuanzhang smiled, leaned back in his chair, and said calmly:

"I don't know, but the situation is what it is."
These memorials are of dubious authenticity and quality; who knows which are truly for the sake of the Ming Dynasty and which are for personal gain?

Although it was autumn, the bluestone slabs on the palace road were still scorching hot from the sun.

Lu Yunyi and Han Yi walked side by side. Lu Yunyi said in a deep voice:

"Lord Han, immediately summon the chief managers of the Market and Exchange Bureau."

Also, Steward Cai from the Imperial Estate came to the yamen.
Now that the enemy has made their move, we must respond quickly and postpone the matter of the precious paper money.

"Now?"

Han Yike stood there, stunned.

Lu Yunyi continued walking forward. Han Yike realized what was happening and quickly caught up, grabbing his sleeve and speaking urgently:

"Lord Lu, wait! This matter is too urgent!"

"The regulations for using paper money in lieu of silver haven't even been drafted, and the feasibility hasn't been verified. How can they just convene a meeting like this?"

Lu Yunyi stopped and turned around.

Sunlight fell on his face, making his eyes appear exceptionally clear:

"Lord Han, what do you think is the biggest difference between silver and paper money?"

Han Yike subconsciously said:
"Silver is real gold and silver, and it can appreciate in value, while paper money is just paper and it will depreciate in value."

"That solves it, right? Exchanging paper for silver, how could we lose money?"

"But the silver goes into the national treasury, not into the merchants' offices! On the contrary, the merchants will lose a lot of money for no reason."

Lu Yunyi shook his head and said in a deep voice:
"Yingtian Trading Company was established to support the livelihood of people in the capital region and to raise funds for road construction; it was never intended to make money."

However, due to difficulties in raising funds, it was only thanks to the strong support of many shareholders that the company was able to distribute profits to them.

If the Yingtian Trading Company is under my sole control...

Every year, all the money earned is spent, and the road has already been built all the way to Henan.

Now that I've earned enough money, what worries do I have about doing this?
Moreover, once there's no more silver in the market, money will actually be easier to earn.

Han Yike looked shocked and stared blankly at Lu Yunyi.
Are you serious?

He had always thought that supporting people's livelihoods was just a marketing ploy by the business, but he never expected it to be true.

"Alright, there are some things I can't explain to you right now. Let's get the manpower together quickly."

Lu Yunyi left a message and quickly headed towards the Market and Exchange Bureau.

(End of this chapter)