Ming Dynasty: Ask Zhu Yuanzhang to abdicate at the beginning

Chapter 402 The Art of Amassing Wealth! On How to Fleece the Rich!

"There is no need for any government-supervised or merchant-run system."

Zhu Yunwen's lips curled up slightly, revealing a meaningful smile, and he slowly said, "Not only that, I also intend to abolish the salt license system that is now under a franchise."

Upon hearing this, not only Yang Rong, but everyone present showed extreme shock on their faces.

Since the establishment of the salt and iron monopoly system in the Han Dynasty, although many subsequent dynasties had precedents of abolishing it, it was as if they had fallen into an invisible cycle, no matter how they went around in circles, they always returned to the original starting point.

Ultimately, the root cause is still the inescapable three questions posed by Sang Hongyang.

These three questions, like three heavy mountains, weighed on the minds of rulers throughout history.

First, how should the enormous financial expenditures required for the daily operation of the vast empire be addressed?

Secondly, how should we calmly deal with emergencies when the national treasury is empty?

Third, how can we effectively prevent local power from expanding and eventually rebelling against the central government?

Ultimately, the core of Sang Hongyang's three questions was the empire's financial problems.

The state needed to accumulate wealth through the salt and iron monopolies in order to ensure the normal and orderly operation of the imperial court.

At the same time, it also has the ability to deal with various sudden emergencies and strengthen its control over local governments.

By establishing a fiscal advantage for the central government over local governments, the rampant expansion of local power can be effectively curbed.

However, times have changed, and this problem that once plagued countless rulers has become a thing of the past with the establishment of the Great Ming Bank and the Tax Bureau by Zhu Yunwen.

The Daming Bank was directly managed by the imperial court, and local authorities had no right to interfere in it whatsoever.

This means that the vast wealth accumulated by the Daming Bank was firmly controlled by the imperial court, giving it control over the country's financial lifeline.

The taxes collected by the Inland Revenue Department account for more than 70% of the total national tax revenue.

Furthermore, after these taxes were collected, they were all directly deposited into the Ministry of Revenue's account, having no connection whatsoever with local government officials.

The establishment of these two institutions alone has firmly secured the central government's absolute financial advantage over local governments.

Not to mention, the process of industrialization has already begun.

The Ministry of Assets of the Imperial Court controls a large number of factories, and the profits of these factories are directly handed over to the Ministry of Assets of the Imperial Court.

They were like wellsprings of wealth, continuously supplying the Ming Dynasty with resources.

Today, although the power of local governments to levy taxes has not changed on the surface, the amount of money collected has also remained largely the same.

Against the backdrop of surging central government revenue, the proportion of taxes levied by them has been greatly reduced.

In the past, the taxes collected from salt permits were a vital source of revenue for the Ming Dynasty court.

Like the foundation stone of a building, it is indispensable.

But in today's context, it doesn't count as much anymore.

However, the most crucial reason why Zhu Yunwen was determined to abolish the salt certificate system was that it ran counter to his ideal of taxing the rich and reducing taxes for the poor.

In Zhu Yunwen's mind, this concept was an important principle for governing the country and benefiting the people.

Any system that contradicts it should not continue to exist in his Ming Dynasty.

However, this matter cannot be rushed; it can only be done step by step.

Upon hearing that Zhu Yunwen intended to abolish the salt certificate system, Yang Rong's face instantly showed anxiety. He hurriedly stepped forward, cupped his hands, and bowed, asking, "Your Majesty, why is this?"

He knew in his heart that the imperial court's finances were already strained and that income could not cover expenditures.

The salt monopoly brings in millions of taels of silver every year, which is an important support for the imperial treasury. How can it be abolished so easily?

Zhu Yunwen walked to the railing in front of the pavilion, looked up at the vast and boundless blue sky, and said slowly, "The way of Heaven is to take from those who have more than enough and give to those who have less than enough. The way of man is not so; he takes from those who have less than enough to give to those who have more than enough."

His voice was deep and powerful, as if he were conversing with heaven and earth.

After a brief pause, Zhu Yunwen turned around and continued, "Salt is an essential commodity for the daily lives of all people in the world."

"Whether the price is high or low, ordinary people have no choice but to spend money to buy it."

"Moreover, whether they were wealthy or poor, the amount of money they spent on salt was the same."

"For the rich, the money they spend on salt is just a drop in the ocean, not worth mentioning at all, and will not have any impact on their lives."

"However, for the poor, the expense of buying salt was like a heavy shackle, making it hard for them to breathe."

"Because of the salt tax, and because people couldn't afford salt, countless disasters and unrest ensued."

“People like Zhang Shicheng in the past were originally salt smugglers.”

"The emergence of these illegal salt dealers stems from the fact that salt taxes make salt prices extremely high, which is unaffordable for ordinary people, thus giving rise to such chaos."

Zhu Yunwen's gaze slowly swept over Yang Rong and the other three, and he said slowly, "You are all my trusted ministers, and I will not hide anything from you."

"I have discussed this matter with Yao Guangxiao and Yang Shiqi before. I believe that the court should collect taxes from the rich and reduce taxes for the poor. Those who are extremely poor should not be taxed, but instead given relief."

"I will follow the way of Heaven and act in accordance with the principles of Heaven, taking from the surplus and giving to the deficient."

"The salt tax is a typical example of taking from the poor to give to the rich."

"The tax levied on each pound of salt is the same, and every household pays the same salt tax when purchasing salt."

"It may seem fair and just on the surface, but that is precisely the greatest injustice."

"The rich and the poor consume the same amount of salt, so they pay the same salt tax, but the economic burden they actually bear is vastly different."

"This is like a wealthy household with a hundred acres of fertile land paying the same taxes as a poor peasant who doesn't even have a single acre of land. How can that be the same?"

"Where is the fairness in this?"

"The vast majority of people in the world are poor, while the rich make up only a very small portion."

"It is precisely these large numbers of poor people who consume the majority of salt and bear the vast majority of the salt tax."

“If this continues, this unreasonable tax system will only lead to the poor getting poorer and the rich getting richer.”

"As the gap between the rich and the poor widens, social conflicts will become increasingly acute."

"In the past, the imperial court was in financial difficulty and had no other choice but to rely on salt taxes."

"Now that the court can obtain funds from the Ming Bank, the tax office, and various factories and other places, this salt tax, which is mainly levied on the poor, should be abolished."

Upon hearing these words, Yang Rong, Yang Shiqi, Xia Yuanji, and the others felt a sudden jolt in their hearts.

Xia Yuanji stepped forward, his expression solemn, and bowed respectfully, saying, "Your Majesty's benevolent intentions are a great blessing to the country and its people, and even more so to the hundreds of millions of people under heaven."

He paused slightly, then continued, "However, the current financial situation of the imperial court is already difficult, with income not meeting expenditure."

"If the salt monopoly is abolished, things will become very difficult from now on."

"Your Majesty's sincere compassion for the people is truly commendable."

"But if we really want to abolish the salt certificate system, we need to think about it carefully. It's better to put it off for now."

"It will not be too late to abolish it when the imperial court's finances are abundant and the national treasury is full."

Zhu Yunwen's expression turned serious, and he said resolutely, "My mind is made up, and this matter cannot be delayed any longer!"

His tone was serious and resolute.

"You should not only see the tax revenue that the salt certificate system brings to the imperial court, but also ignore the huge harm hidden behind it and the high collection costs."

"As I just said, the matter of smuggling salt alone has caused so much trouble and unrest!"

"The security situation in the coastal areas, and even throughout the entire Ming Dynasty, has deteriorated considerably as a result."

"How much manpower, material resources, and financial resources did the imperial court and local governments at all levels invest in rectifying these chaotic situations?"

Have you ever carefully calculated this cost?

"Not to mention the intangible costs of social unrest."

"If all of these are added together, it would probably far exceed the several million taels of silver obtained from the annual salt tax."

The cost of comprehensive social governance is a specialized "science" in later generations.

This cost is not just the additional expense incurred by the government to maintain public order.

This also includes the additional expenses incurred by businesspeople and ordinary citizens throughout society, which hinder economic development.

For example, if illegal salt smuggling is rampant in a certain area, then most other merchants doing legitimate business will not dare to go to that area.

Because salt smugglers are wanted criminals by the government.

In this era, the punishment for selling smuggled salt was even more severe than the punishment for drug trafficking in later generations.

Once discovered, they will be beheaded.

To put it bluntly, anyone who dares to sell smuggled salt is a desperate criminal.

However, while drugs can be eradicated, salt is a necessity for people's lives and is indispensable every day.

Therefore, those who smuggled salt were like weeds; one batch was killed and another batch came, endlessly.

If a place has a large number of such desperados, how can public security be good?
Out of concern for their own personal safety, merchants naturally avoided these areas.

As industrialization progresses and commerce flourishes, these potential social costs will become increasingly high, far exceeding the mere few million taels of silver collected from salt taxes.

Unfortunately, the officials of the Ming Dynasty did not understand how to calculate the political and overall benefits of this matter; they only saw the immediate gains from collecting salt taxes.

Upon hearing this, Yang Rong, Xia Yuanji, and the others couldn't help but fall into deep thought.

They were all extremely intelligent people, well-read and knowledgeable in politics.

Previously, their thinking had been limited, and they had never considered the issue from such a unique perspective. Now, after Zhu Yunwen's guidance, they pondered the matter carefully and found that what he said did indeed make a lot of sense.

He couldn't help but sigh inwardly, "Your Majesty is indeed Your Majesty, a true Son of Heaven, with innate wisdom far beyond what ordinary people can achieve."

However, Xia Yuanji still had doubts. He cupped his hands and said, "Your Majesty's words are very reasonable and thought-provoking. I have learned a lot."

After offering a compliment, he continued, "However, if salt is not sold by salt merchants, how should the imperial court sell salt to the people?"

"If the sale of salt is left unchecked, I fear that unscrupulous merchants will take the opportunity to cause trouble, either by inflating salt prices, creating scarcity, or selling inferior products as superior ones."

"In my opinion, the court should keep firmly in control of essential goods for the people's daily lives, such as salt and rice."

At this point, Xia Yuanji paused slightly, then said, "Your Majesty just mentioned that imported goods do not require official supervision or merchant management. Could it be that you already have a better plan in mind?"

"Not bad!"

Zhu Yunwen nodded and said, "The court may allow merchants to participate in the procurement and sale of supplies such as salt and rice, but it must implement strict and effective control."

"The nation's economic lifeline must never fall into the hands of businessmen, or the consequences will be unimaginable."

At this point, he abruptly changed the subject, saying, "When Yang Rong mentioned the import of goods, each department acted independently, resulting in chaos and disorder."

"I have decided to establish a special import and export trading company to oversee all import and export matters of the court."

"From now on, any trade agreements signed with vassal states will be handled by this company."

"Other government offices are not allowed to import materials without authorization if they have a need for them. Instead, they must send a letter to the import and export trading company, which will be responsible for the import and procurement."

Xia Yuanji remained silent, seemingly deep in thought.

Beside him, Yao Guangxiao stroked his beard and praised, "This is an excellent move. Firstly, it can prevent departments from acting independently and passing the buck, thus improving efficiency."

"Secondly, import and export trading companies can employ professional business talents. These people are experienced in the business field and have unique insights, making them far more competent in procurement than those officials who only know how to study books."

Zhu Yunwen smiled faintly and said, "The court should not be bound by convention when it comes to employing people."

"Scholars who read the classics have their uses."

"A general who is good at fighting is also a pillar who protects the country."

"The rest of the people, such as technical talents who can do scientific research and businessmen with business acumen, each have their own strengths, and the court can select the best to use."

His expression turned serious, and he immediately instructed: "If any court official is interested in doing business, they may be transferred to the import and export company after passing the examination. I will absolutely not stop them."

"But if they lack the ability in this area, or are too proud to engage in commercial procurement, then let them shut up and stop talking nonsense."

"Otherwise, I will punish them severely without mercy!"

Since we are going to vigorously promote reforms, we will inevitably encounter some people with outdated and conservative ideas who scoff at and ridicule all reform measures.

In particular, when they saw that many of the personnel in charge of managing factories and companies in the Ministry of Assets of the Imperial Court had mediocre results in the imperial examinations, or even had never participated in the imperial examinations at all, they were promoted and given important positions and high ranks and salaries simply because they were proficient in technology or good at business management, these people felt resentful.

Therefore, they launched a fierce attack on the court's reforms and on factories and companies from all aspects.

Zhu Yunwen consistently employed high-pressure tactics in response.

After all, any reform will inevitably affect the interests of some existing stakeholders.

If these obstacles are not removed, the reforms cannot be carried out.

After speaking sternly, Zhu Yunwen's tone softened, and he said, "In addition to this, the establishment of an import and export trading company has another important function, which is to facilitate the collection of taxes on certain commodities."

“For example, jade was previously taxed by the imperial court as an ordinary commodity, and the tax amount was pitifully low.”

"In addition, the valuation of jadeite is extremely difficult, and the actual valuation given when taxing it is often ridiculously low."

He shook his head slightly, revealing a hint of dissatisfaction.

"I believe that this method of taxation must be changed. Jade should be taxed at a high rate, just like the salt tax of the past."

Upon hearing these words, surprise flashed across the faces of Yang Shiqi, Yang Rong, and the others once again.

Xia Yuanji asked, "Your Majesty cares for the common people and has even exempted the salt tax in order not to compete with them for profit. So why does Your Majesty impose such a high tax on jade?"

He had barely finished speaking when, as if suddenly realizing something, his eyes lit up: "Your Majesty means to impose high taxes on the items that the wealthy like to buy?"

"Indeed, that is exactly what I meant." Zhu Yunwen nodded with a smile.

“Salt and other supplies are necessities for the survival of hundreds of millions of people. The imperial court should do its utmost to ensure their supply, rather than seeking to profit from them.”

“But jade is something that can’t be eaten when you’re hungry or used to keep warm when you’re cold. It’s of no practical use to ordinary people and is just a plaything for the rich to enjoy.”

“The imperial court should levy a high ‘luxury tax’ on such things.”

You can't harvest the leeks of the poor.

Because they were already struggling to make ends meet, further cutting their crops would make them unable to survive, which led to the situation of "officials forcing the people to rebel".

But the rich must be exploited.

In particular, the "rich leeks" generated from this kind of voluntary consumption must be harvested in large quantities.

Xia Yuanji said after careful consideration, "What Your Majesty says is indeed reasonable."

"However, jade itself is very valuable and has a high price."

"If high taxes are levied again, prices will surely skyrocket."

"This item is not very useful to begin with. If the price skyrockets, I'm afraid no one will want it."

"Wouldn't the imperial court end up not collecting taxes at all if that were the case?"

"No!" Zhu Yunwen shook his head firmly and smiled, "You live a simple life and probably don't understand the psychology of those who pursue luxury goods."

A confident smile appeared on his lips: "The more expensive something is, the more people will rush to buy it."

"If there is large-scale mining, open supply, and no high taxes, causing jade prices to be low, they will still look down on it and be unwilling to buy it."

Xia Yuanji was taken aback upon hearing this.

Although he was in charge of the Great Ming Bank, he could be called the "God of Wealth" of the Great Ming.

But he has always been indifferent to material possessions and devoted himself entirely to financial affairs.

The peculiar mentality of the wealthy in their pursuit of luxury goods has never been explored in depth.

"Things that are rare are valuable."

A sly smile appeared on Zhu Yunwen's face.

"The imperial court must firmly control the jade mines and strictly limit the supply of raw jade stones."

"We must make jadeite extremely rare and sought after."

“Imposing high taxes on jade will drive up its price.”

"At the same time, the Da Ming Daily should vigorously promote the many benefits of jade."

"For example, displaying jade at home can enhance personal taste and highlight one's noble status."

"Wearing jade jewelry can bring peace, wealth, and so on."

"In short, we must let everyone know that jade is the most beautiful thing in the world."

“Those wealthy and powerful families who do not adorn themselves with jade are considered vulgar, ignorant, and lacking in cultural refinement.”

"In addition, the mines were instructed to carefully select some of the finest jadeite to be presented as tribute to the palace."

"The Emperor and the concubines in the palace took the lead in using these jade ornaments to showcase their elegance and luxury."

"This news must be leaked subtly so that the whole world knows."

"Including you few, you must also cooperate with me in this charade."

"In short, we must create a great deal of momentum and push up the price of jadeite from all angles to create a frenzied atmosphere where everyone is eager to buy jadeite and is scrambling to grab it."

Since the jade mines are controlled by the imperial court, which monopolizes production, coupled with a powerful propaganda campaign, how could the price of jade not skyrocket?

At that time, of the jade worth one thousand taels of silver, nine hundred taels would be taxes and profits, all going into the imperial treasury. That would be truly wonderful!

In this way, the poor suffer no loss and the rich do not feel resentful. On the contrary, they will willingly let the court "harvest" their wealth, which can be described as having only benefits and no harm.

In that case, he must sharpen the "sickle" even more and cut as hard as possible.

Upon hearing Zhu Yuntong's words, Yang Rong, Yang Shiqi, Xia Yuanji, and Yao Guangxiao were all stunned, their faces filled with shock and disbelief.

They were all among the most intelligent people in the court, so they naturally understood immediately.

He instantly grasped the brilliance of His Majesty's plan.

If this policy is implemented, the imperial court may be able to reap even greater profits from jade alone than from salt taxes.

More importantly, this method of collecting money will not exacerbate social conflicts like the salt tax.

They would not drive the poor to the brink of despair, causing them to rebel out of desperation.

"Your Majesty's move in chess is truly brilliant, like a stroke of genius, and I am filled with admiration for it."

Yao Guangxiao stroked his beard and smiled, his face full of genuine admiration.

But soon, he changed his tone and said, "Whether this matter can be accomplished smoothly depends on how Zhu Shou and the expeditionary force at the front act."

Upon hearing this, Zhu Yunwen narrowed his eyes slightly, a sharp glint flashing within them, and said in a deep voice, "What do you mean by that?"

……

(End of this chapter)