Ming Dynasty: Ask Zhu Yuanzhang to abdicate at the beginning

Chapter 401 Fiscal Issues! The Era of Mass Construction! The Path to Reform!
Upon hearing this, Zhu Yunwen frowned slightly and asked, "What other difficulties are there?"

Yang Rong respectfully cupped his hands and bowed, saying, "In my opinion, there are three thorny issues that need to be resolved in order to accomplish this matter smoothly."

He paused briefly, cleared his throat, and continued, "Firstly, the current financial situation of the Ministry of Revenue is quite tight, and it has already reached the point of being stretched thin."

"This year, the imperial court has launched a series of military campaigns against foreign countries, with war raging everywhere. Money and grain have been consumed like water, costing countless sums."

"At the same time, there were also expenses for expanding the palace, repairing the roads in Jinling City, water supply, and sewage disposal."

"In addition, roads are being paved all over the country, and a large number of tunnels are being dug, bridges are being built, and reservoirs and dams are being constructed, each of which requires a large amount of capital investment."

"Although the court's tax revenue has increased significantly since His Majesty made the wise decision to levy commercial taxes, no amount of money can withstand such a huge expenditure."

"Wang Zuo was in charge of the Ministry of Revenue. He racked his brains every day to raise funds. He was always frowning and running around, but he still didn't know where to get enough money."

"Your Majesty has ordered the Ministry of Revenue to withdraw funds from the national treasury, but as far as I know, the national treasury is probably already empty and cannot continue."

As soon as Yang Rong finished speaking, Xia Yuanji bowed and added, "The funds raised by the Ministry of Revenue through the issuance of national bonds have all been spent, leaving not a single penny."

"In addition, we owe the Daming Bank nearly 30 million taels of silver."

"The current treasury of the Ministry of Revenue is indeed like a dried-up riverbed, with no more money to spare."

The Ministry of Revenue's treasury was managed by the Daming Bank.

Xia Yuanji, who was in charge of the Daming Bank, was naturally aware of the situation.

Zhu Yunwen's expression changed slightly, a hint of solemnity appearing in his previously composed demeanor.

In fact, the amount of money spent on road repairs, river embankment repairs, and reservoir construction during the Ming Dynasty was not that much.

At that time, these projects were basically manual labor such as digging and piling soil, and relied mainly on free corvée labor, so the cost was relatively low.

But now, with the continuous deepening of various construction projects, the scale is expanding day by day, and the technical requirements are getting higher and higher, everything has undergone earth-shattering changes.

For example, the amount of cement used in road construction has increased significantly, and steel bars are indispensable for building bridges.

These materials all require real money to purchase.

Initially, cement was produced using only the simplest process.

When building roads, the fire is often burned and the road is paved on the spot.

Later, as quality requirements continued to improve, firing standards also rose, which also meant that costs were increasing steadily.

Needless to say, steel bars are also essential.

Despite continuous advancements in steelmaking technology and the rapid decline in steel prices in the Ming Dynasty due to large-scale production, steel consumption increased even faster, driven by various engineering projects.

In the past, there was never such a large consumption of steel.

More importantly, in order to improve the transportation efficiency of roads, the standards for subsequent road construction were raised considerably.

The standards of newly built roads have been upgraded, and existing roads are also being expanded and renovated.

For example, bridges were built extensively on existing waterways in places where ferries used to be used.

Zhu Yunwen had even ordered the Academy of Sciences of the Ming Dynasty to begin planning and designing the Nanjing Yangtze River Bridge, and to start construction as soon as the time was right.

In addition, there was large-scale tunnel excavation.

The aim is to allow for direct road connections, avoiding the need to traverse mountains and valleys and shortening travel time.

In some mountainous areas, this measure can shorten a journey that would normally take one or two months to just one or two days.

However, the Ming Dynasty did not have advanced tunnel boring machines like those of later generations, and could only rely on manpower to dig tunnels, which was extremely difficult.

It was only through Zhu Yunwen's strong insistence that this matter was able to proceed.

After all, in Zhu Yunwen's memory, the tunnel had a long history, which could be traced back thousands of years.

Long before Watt improved the steam engine, large tunnels, nearly a kilometer long, had already been built that could traverse high mountains and were long enough for horse-drawn freight cars to pass through.

Although the Yuehan Railway, which was built during the Qing government period, was not ultimately completed, the railway tunnels that traverse the Nanling Mountains were fully opened.

Since they were able to do it, the Ming Dynasty today, with its booming technology and increasingly powerful national strength, is certainly capable of doing the same.

Therefore, despite the ministers' reservations and lack of support, Zhu Yunwen still pushed it through.

There's no need to rush the technical aspects.

It is entirely possible to learn through hands-on experience while excavating tunnels, gradually improving technical skills.

However, the cost of building a tunnel is far greater than that of building a regular road.

The working environment for tunnel excavation is extremely harsh, posing a huge test to the physical strength and endurance of the workers. It requires experienced workers to labor for a long time and cannot be accomplished by simply conscripting unpaid laborers.

The imperial court had no choice but to spend a lot of money to hire professional craftsmen.

Moreover, the salary offered must be attractive enough to recruit suitable people.

After all, this job is really dirty, tiring, and hard.

After they come to work, we need to keep them here to accumulate experience.

On the other hand, no returns can be seen until the tunnel is fully completed.

All the related investments are like throwing money into a bottomless black hole.

Similar situations exist in the construction and reinforcement of river embankments and reservoirs.

With the extensive use of cement and steel bars, as well as the investment in essential reservoir facilities such as sluice gates, construction costs have skyrocketed.

Cement, steel bars, and the mechanism to activate the gate all represent a real financial investment.

Building a new palace was also a huge expense.

The palace that Zhu Yunwen planned to build was several times larger than the original palace.

The cost of road renovation in Nanjing was also considerable.

Today, Nanjing has undergone tremendous changes, with wider and smoother roads and more convenient transportation.

Behind these changes lies the support of countless amounts of real money.

Fortunately, demolition costs are extremely low in this era.

The imperial court ordered the demolition, and no one dared to disobey.

If this were in later generations, the demolition compensation alone would be an astronomical figure.

Even so, the expenditures have already made it difficult for the government to sustain the business.

On the military front, although combat capabilities have been significantly enhanced and the military is formidable on the battlefield, military spending has also skyrocketed.

After all, under Zhu Yuanzhang's military household system, it was almost equivalent to supporting a million-strong army without spending a single penny.

But now, each of the new armies is built with countless amounts of silver.

From advanced weaponry, muskets, cannons, and gunpowder, to soldier training, supplies, and personnel salaries, each item requires a large financial investment.

Zhu Yunwen even decreed a significant increase in the salaries of officials.

All these factors combined mean that a lot of money is being spent on various aspects.

Despite the unprecedented prosperity of the Ming Dynasty's economy, the booming development of commerce and trade, and the rapid growth of tax revenue for the Ministry of Revenue, it simply could not withstand such enormous expenditures.

No wonder Wang Zuo, as the head of the Ministry of Revenue, had to worry about money every day.

Seeing Zhu Yunwen remain silent in thought, Yang Shiqi also offered his advice: "Your Majesty, the various projects in the Ming Dynasty are currently being carried out in full swing, and the scale of the project is simply too large."

"According to my statistics, more than half of the labor force in the Ming Dynasty is currently working on various construction sites."

"Having reviewed all the dynasties in history, I have never seen a country mobilize such a massive amount of manpower at the same time."

"Your Majesty, shouldn't some projects be put on hold for the time being?"

Half of the workforce is engaged in engineering construction?

Upon hearing this number, Zhu Yunwen was startled and truly shocked.

But she quickly regained her composure.

For a long time, there has been a large surplus of labor in rural areas.

This is because agricultural production has distinct seasonal characteristics.

There are busy farming seasons and slack farming seasons.

During the busy farming season, the fields are bustling with activity, often with the whole family, young and old, all pitching in. Everyone is so busy that they wish they could do the work of two people.

But once the off-season for farming arrives, the situation is completely different.

In reality, during the off-season, a large amount of labor is idle.

Often, even when you see them busy, they're doing things that have no real economic value.

Whether or not they work, it has little substantial impact on family income and quality of life.

It's simply to keep people from being idle and doing nothing.

Many people simply stay at home all day, minimizing their activity in order to save a few bites of food.

The nationwide large-scale construction is like a spring breeze, fully mobilizing this idle labor force.

This gave them a stable job, enabling them to earn corresponding compensation through their own labor.

After all, the imperial court provided real money, silver, and food to these construction projects, ensuring the basic livelihood of the laborers.

This is fundamentally different from the situation in history where dynasties conscripted large numbers of laborers, who not only received no pay but also had to bring their own food, suffering terribly under the heavy labor, which ultimately led to rebellion.

That is why the court officials had not previously submitted a memorial opposing it.

Otherwise, such a massive use of labor would have already caused an uproar in the government and among the people.

However, on the other hand, everything should be done step by step. Taking too big a step can easily lead to problems.

If a truly insurmountable financial predicament arises, then it would indeed be necessary to appropriately slow down the construction progress.

At present, the Ming Dynasty is in a leading position internationally and does not face any pressing international competitive pressure.

Even if the development speed is slightly slower, there is absolutely no need to worry about being overtaken by other countries.

In any case, the Ming Dynasty has already left other countries far behind. Even if its development speed slows down, with its existing foundation and advantages, it is not something other countries can catch up with.

Furthermore, the slowdown in the Ming Dynasty is relative.

Compared to other countries overseas, the Ming Dynasty, which had already started its industrialization process, would still develop much faster, even if it was slower.

They won't even be able to catch up; they'll only fall further and further behind.

Since there's no need to be overly anxious, there's no need to rush.

Ensuring the quality of construction, making sure that every project can stand the test of time, and safeguarding the security and stability of national finances so that the economy can develop sustainably and healthily are far more important than simply pursuing rapid development in the short term.

After thinking for a moment, Zhu Yunwen said, "Road construction, bridge building, and tunnel digging can all be postponed for now."

He paused slightly, then emphasized, "The most important thing is to ensure the quality of construction. There's no need to mobilize a large amount of labor and blindly rush into large-scale construction."

"The quality of engineering projects is crucial to the foundation of the nation. We must never neglect quality in pursuit of speed, or the consequences will be dire."

Upon hearing this, Yang Shiqi felt relieved and quickly said, "With Your Majesty's words, I am at ease."

"Your Majesty's plan is far-sighted. This arrangement can alleviate the current pressure on manpower and funds, and ensure the quality of the project. It is a wise move."

Zhu Yunwen remained noncommittal to his flattery, then turned his gaze to Xia Yuanji and said, "The national treasury has no money, so the Great Ming Bank has to solve this problem."

"How about this, let the Ministry of Revenue issue 30 million taels of silver in special national bonds for food security."

"This funding is specifically used for importing and storing grain, as well as for the construction of granaries. The national debt is underwritten by Daming Bank."

"Daming Bank can sell these government bonds to the public. It should try to sell as many as possible. If it cannot be sold, Daming Bank will bear the loss itself."

He stared intently at Xia Yuanji and asked, "This shouldn't be a problem, right?"

Xia Yuanji gave a wry smile and said with a hint of helplessness, "I will do my best to accomplish it."

"It's not just about trying our best to get it done, it's about making it absolutely necessary!"

Zhu Yunwen gave this minister, who was in charge of the Ming Bank and held the reins of the Ming financial system, a deep look.

He knew perfectly well that with the strength of the Daming Bank, coming up with 30 million taels of silver would be no problem at all.

However, Xia Yuanji deliberately acted as if he was in a difficult position because he always sought help from Daming Bank whenever he encountered a shortage of funds. He was worried that there would be new "tasks" to follow.

Managing a household is not easy, especially for those who control the "purse strings."

Although Daming Bank is a large and powerful enterprise, its various expenses are also quite staggering.

Every penny must be carefully calculated and used with utmost caution.

At this point, Zhu Yuntong suddenly remembered something and said, "The intelligence agency just sent us information saying that they have reached a trade agreement with Siam to import pepper and sappanwood, as well as jade from Bago."

"These are all highly profitable products. Once they are sold to the Ming Dynasty, they can generate dozens of times the profit."

Zhu Yuntong's tone revealed a hint of anticipation: "Perhaps, the money earned from selling these things will be more than the money spent on importing grain."

Upon seeing this, Yang Rong immediately bowed and respectfully said, "Your Majesty, this is the second question I wish to address."

"Oh?" Zhu Yunwen looked over curiously.

“There were already many problems when we imported goods from Japan before.”

Yang Rong said calmly, "If the trade were conducted by private merchants, then that would be fine."

"Merchants pursue profits, and the court need not interfere too much with how they operate and sell their goods."

"But goods such as grain, gold, silver, sulfur, and copper ingots are all imported by the government."

"The departments responsible for handling these matters are all different, and the management is extremely chaotic."

"The same goods, but different government departments reported different import prices to the imperial court."

"The difference is even greater when the import times are different."

"Among them are many who are extravagant and wasteful, and even corrupt."

"They lined their own pockets, causing the court considerable losses as a result."

"Nowadays, we are importing a large amount of goods from Southeast Asia. If we continue to operate in this haphazard way, it will probably not be a long-term solution."

Zhu Yunwen nodded slightly.

He had already read the relevant reports about the matters Yang Rong mentioned and was aware of them.

Although the importers were all from the Ming Dynasty government, the specific departments in charge were numerous and varied.

Take imported grain as an example. Initially, this important task was undertaken by the local government of Shanghai, but later it was transferred to the Grain and Material Reserves Bureau.

Imported sulfur, on the other hand, is mainly produced by military factories.

After all, sulfur is crucial for military production.

As for the import of gold, silver, and copper ingots, it was managed by the Ministry of Revenue, because it involved the country's financial reserves and industrial production.

The prices of these supplies are as unpredictable as the weather in June, constantly fluctuating.

The amount reported to the imperial court for each transaction varied.

For private businesses, price fluctuations are perhaps a perfectly normal business risk, which they can cope with through flexible business strategies.

However, for the Ming Dynasty court, this was undoubtedly a huge problem, greatly increasing the difficulty of supervision.

Who can say for sure whether there are any shady dealings hidden behind these price fluctuations?

Is someone deliberately manipulating prices to profit from them, or is it simply a normal market fluctuation?

It's really hard to tell.

Zhu Yunwen looked at Yang Rong and asked, "In your opinion, what practical solutions are available?"

He knew perfectly well that since Yang Rong had asked him the question face-to-face, he must have already prepared a plan and a solution.

As a minister of state affairs, it is my duty to never push all the problems onto the emperor.

The proposal was simply his proposed solution, which still required the emperor's approval and final decision.

Upon hearing this, Yang Rong immediately bowed and said, "I believe that the method of government supervision and merchant management should be adopted for the import of goods from Southeast Asia."

He paused slightly, then explained clearly, "Merchants are naturally profit-driven. Driven by profit, they will try every means to lower prices and often negotiate the most favorable terms, which is of great benefit to us in reducing import costs."

"Secondly, the imperial court also finds it difficult to sell materials such as pepper and sappanwood directly."

"If the quantity is small, it can also be used to reward officials, demonstrating the emperor's boundless benevolence."

"But if we import large quantities of goods and sell them to ordinary people, we can only rely on merchants to do so."

"As long as merchants have sales channels, they can successfully sell these goods to the people."

"And this is especially true for jadeite."

“Its price is extremely difficult to estimate, and the government has difficulty regulating and selling it, so it can only be handed over to merchants to manage.”

Upon hearing this, Zhu Yunwen frowned slightly and fell into deep thought.

The model of government supervision and merchant operation was not a new thing in the Ming Dynasty; it had long existed in many fields.

Previously, when exporting items such as porcelain and tea, the business model was basically one of government supervision and merchant operation.

The Ming Dynasty court would set unified price standards and strictly prohibit merchants from engaging in vicious competition and price wars, thereby preventing export prices from being excessively suppressed and safeguarding the country's economic interests.

in the country, the salt industry was a typical example of a government-supervised and merchant-run enterprise.

The state monopoly on salt was a crucial measure concerning the national economy and people's livelihood.

However, in the actual production and sales process, the government issued salt permits to salt merchants, granting them exclusive operating rights, and they were responsible for the actual operation.

This ensured both the stability of the salt supply and allowed merchants to fully utilize their business acumen.

In addition, during wartime, tasks such as transporting food to the front lines were often carried out in a government-supervised, merchant-operated manner.

It must be admitted that government-supervised, merchant-run businesses had obvious advantages over the direct management and operation by feudal bureaucrats.

Officials who rose through the ranks by passing the imperial examinations and studying the classics were completely clueless when it came to business and commerce.

If it's just a matter of not understanding, there are still ways to remedy it.

After all, their ability to excel in the imperial examinations at least proves that they have good learning abilities.

If you're willing to learn, mastering business management isn't difficult.

However, the crux of the problem is that these officials often consider themselves superior and look down on money-grubbing businessmen, and are unwilling to learn how to run a business.

This leads to a dead end.

Forcing corrupt officials to get involved in business is like throwing a lot of money into the Yangtze River – it's all for nothing.

The Ming Dynasty court was well aware of this, which is why it implemented the model of government supervision and merchant operation.

An attempt was made to find a balance between government control and business operations.

However, government-supervised and privately-run enterprises are not a very good solution either, as they also have many problems.

In practice, corruption and malpractice are commonplace, deeply ingrained bureaucratic practices lead to low production efficiency, resulting in insufficient product supply or inconsistent product quality.

Sharp conflicts exist between officials and businessmen, with frequent instances of mutual buck-passing and shirking of responsibility.

Taking the salt industry as an example, how many of those salt merchants who hold salt licenses actually do their jobs well and provide high-quality salt for the people?

They are more focused on pursuing personal gain and exploiting loopholes in policies.

That said, if officials were allowed to directly manage the salt industry, the situation would only be worse.

After all, they lack both business experience and the bad habits of officialdom.

Zhu Yunwen listened quietly, weighing the options in his mind.

Suddenly, his eyes lit up.

Got it!

……

(End of this chapter)