Strategy for the Revitalization of the Late Ming Dynasty

Chapter 388 Economic Reform
Zhu Cilang looked at Li Xiaolin kneeling on the ground. He knew very well that this was not just an economic reform, but also a profound political game.

In this game, the vacillation of any party would cause a chain reaction. He could not fail, because failure would not only mean the vacillation of imperial power, but also the inevitable collapse of the Ming Dynasty after its revival.

Zhu Cilang slowly stood up, hands behind his back, his gaze as firm as steel. He glanced over the pamphlet in his hand, a look of satisfaction crossing his brow. This slightly relaxed Li Xiaolin's previously tense nerves. He knew that the emperor's approval was not only an endorsement of his reform proposal, but also a trust in his personal abilities.

Li Xiaolin was able to succeed the Zheng family in this turbulent era, control the Ming Dynasty navy, and the cross-border trade of millions of taels of silver in the southeast every year. He not only made the business system run in an orderly manner, but also successfully unified the management of independently operated merchant ships and ocean-going ships dependent on the government. He is truly talented and experienced.

The flourishing commerce of the late Ming Dynasty provided fertile ground for his talents. In pursuit of ever-increasing profits, various forms of commercial organizations and systems were already emerging, and simply by embracing these trends, a breakthrough was possible. Zhu Cilang's vision, ahead of his time, further paved the way for him, ensuring that every step he took was in line with the emperor's wishes.

Zhu Cilang flipped through the booklet seemingly nonchalantly, then suddenly placed the booklet on the table, changed his tone, and said in a deep voice:
"However, changes must be made to the pawnshops. We must leverage existing organizations and forces, but we can't let them run amok. Most of these pawnshops are controlled by local ruffians and hooligans, often colluding with wealthy merchants. The Industry and Commerce Bureau must establish a special agency to handle complaints against pawnshops and keep these people in check. In addition, all pawnshops must be registered and licensed."

These words hit home. Li Xiaolin's expression froze, and he immediately bowed and replied, "Your Majesty is wise! I indeed overlooked this point. Upon my return, I will immediately fill in the gap and address it."

Despite having heard of the problems with the yahang (a gambling house), Li Xiaolin hadn't initially intended to disrupt them. After all, the underwriting and operation of local businesses had always relied on the intermediary role of these yahang (a gambling house). Any hasty reform would inevitably have ripple effects. He understood that these local organizations had deep roots, and any misstep would lead to significant resistance. Furthermore, this involved human resources.

If a brand-new institution relied entirely on local personnel, it would be ineffective. If officials were dispatched by the imperial court, implementation would be fraught with difficulty, and funding would be a major challenge. However, Li Xiaolin knew that making excuses before the emperor would be tantamount to destroying his own future.

He never doubted that these problems could be solved, nor would he disappoint the emperor because of temporary difficulties. As his experience had shown, with sufficient resources and patience, solutions could always be found for any difficult issue. Simply setting a few examples and severely punishing a few "outliers" would be enough to serve as a warning to all and stabilize the situation.

Zhu Cilang looked at Li Xiaolin's respectful attitude and softened his tone. "Mr. Li, I know this matter is difficult. The pawnshops are deeply entrenched, and any rash attempts to shake them up will inevitably trigger a backlash. But this is precisely the meaning of reform. If it weren't difficult, why would I personally oversee it? As long as the direction is right, difficulties are only temporary."

Li Xiaolin took a deep breath and nodded, saying, "Your Majesty is absolutely right. I will live up to your grace and do my utmost to implement the reforms."

Zhu Cilang paused and continued, "As for personnel and funding, I will order the Ministry of Revenue and the Ministry of Works to coordinate and ensure the smooth progress of the reform. Furthermore, a thorough investigation must be conducted into these brothel leaders and the forces behind them. We must utilize them, but we must also make them understand that under imperial authority, no one can act arrogantly."

"Your Majesty is wise. I will do my utmost!" Li Xiaolin felt a surge of pride. He knew this was not only a test, but also an opportunity. If he could successfully push this reform forward, his career would soar to new heights, and the court's business management would enter a whole new phase.

"Li Qing, you go ahead." Zhu Cilang nodded and waved his hand, saying, "Tell the Industry and Commerce Department to complete the first phase of deployment as soon as possible. We don't have much time."

"Yes!" Li Xiaolin responded repeatedly, bowed and retreated.

Zhu Cilang was the only one left in the hall. He stood there, his back as steady as a mountain. Today's decision would surely become a watershed in the future history of the Ming Dynasty.

But at this moment, he didn't feel any relief. The road ahead was long, and every step required careful consideration. However, he believed that in the torrent of history, there would always be some people who could shoulder the burden of fate, and he was that person!
After the discussion, Li Xiao left the imperial study, the setting sun casting a golden glow across the horizon. He looked up into the distance, his heart surging with emotion. As a pillar of the Ming Dynasty, he must take the world as his own responsibility, share the emperor's worries, and seek benefits for the people.

A clear blueprint gradually emerged in his mind. He envisioned the once-unruly pawnbrokers being rectified, merchants no longer oppressed, and the local economy revitalized. And he, too, would leave his mark at this turning point in history.

Zhu Cilang slowly closed the document in his hand and glanced at the ministers present. His tone was calm but not without dignity: "Regarding the pilot plan for state-owned trading companies, everyone understands that this is a very serious matter. We should not take too big a step and start with the pilot program in the areas surrounding the military. To promote military pay coupons, we must first establish internal credibility. This ensures that the soldiers' pay can be redeemed and their spending power is guaranteed. This is the first step. Once this system is running smoothly, it will not be too late to gradually promote it nationwide."

His words were resounding, brimming with thoughtful foresight. This wasn't simply a paper plan, but a systematic project involving finance, armaments, and social stability. By establishing independent trading companies and connecting them with independent workshops, Ming's industrial chain would be upgraded and optimized, profits maximized, and military salaries would be reabsorbed within the system, completing a highly efficient internal economic cycle.

However, the far-reaching significance of this plan goes far beyond this. The issuance of credit currency was not only intended to solve the problem of military pay, but also to use it as a lever to leverage private resources and provide continuous support for the war.

Zhu Cilang understood that this was not only a reform of domestic finances but also a prelude to a foreign economic war. Seigniorage revenue would become a crucial pillar of the national treasury, and by regulating the relationship between currency supply and demand and prices, he could even challenge the economic hegemony of the Netherlands and Spain within the commercial system.

Thinking of this, he couldn't help but feel confident, as if he had already seen the blueprint for the future: through sophisticated financial means, the Ming Dynasty will far surpass the Netherlands and Spain in the efficiency of resource acquisition and utilization.

This crushing efficiency will eventually be reflected in military construction - better equipment, better-trained soldiers, and a steady supply of combat power reserves.

However, he also knew that such a great undertaking required time and patience, and any hasty action would likely lead to failure. As he pondered this, Zheng Hongkui stepped forward and, with a bow, said, "Your Majesty, I have a suggestion. How about conducting a pilot project in the Tunbu area?" Zhu Cilang looked up, a hint of interest in his eyes. "Oh? Tell me about it."

Zheng Hongkui smiled slightly, his tone carrying a certain degree of maturity:

"Your Majesty, the garrisons contain both peasant soldiers and many of the families of officers and soldiers, forming a vital part of the military system. Conducting the pilot program here offers two major advantages. First, the population of the garrisons is relatively concentrated and closely connected to the military, making the pilot program of salary coupons easier to implement. Over the years, as they accumulate wealth, the circulation of salary coupons can be gradually expanded."

Secondly, although the garrisons had certain connections with the external commercial system, they were still under the control of the imperial court. If anything went wrong, the impact would be easily controlled.

Zhu Cilang nodded, clearly agreeing with the suggestion, but he still keenly grasped the underlying problem: "You mean, a garrison is more complicated than an army?"

Zheng Hongkui paused for a moment, then said in a deep voice, "That's exactly right. The relationship between the upper and lower levels of the military is simple, with officers and soldiers bound by military orders, and the impact of commercial activities is limited. However, garrisons are different; they have close commercial ties with the outside world. With the court's coordinated development of local areas, this relationship will only become more complex. Therefore, the management of garrisons and the establishment of a credit system are particularly important. If something goes wrong, the impact could far exceed expectations."

Zhu Cilang pondered for a moment and nodded. "Indeed, the garrisons are indeed one of the foundations of the current military and political system outside the Great Wall. We cannot afford to make any mistakes. Choosing a garrison as the trial site may be risky, but if properly controlled, it can provide valuable experience for full-scale implementation in the future."

Zheng Hongkui, upon seeing this, added, "Your Majesty, I also believe that a dedicated supervisory mechanism is necessary for this pilot program. On the one hand, a dedicated supervisory body could be established to promptly address any issues. On the other hand, the profit distribution mechanism between trading companies and workshops must also be clarified in advance to ensure maximum revenue for the court."

"Well, this reminds me." Zhu Cilang turned to another minister beside him and asked: "What do you think about the supervision issue mentioned by Zheng Qing?"

The minister quickly bowed and said, "Your Majesty is wise, indeed. I suggest that we first establish a supervisory office for trading companies on a small scale to pilot this initiative. This office would report directly to the court, ensuring transparency in all matters and preventing local embezzlement. Furthermore, the military commanders of the garrisons should also be involved to ensure that the trial of military pay certificates adheres to its original purpose."

Zhu Cilang shook his head slightly, his expression a bit pensive, but he did not completely reject Zheng Hongkui's proposal. He said in a calm but decisive tone:

"Your thinking is on the right track. While the development of Tunbu commerce cannot be delayed for too long, everything must proceed with caution. If the military's reforms are successfully piloted, it will not only set a precedent but also provide a reference for other sectors. Even if problems arise along the way, with successful examples as support, our credibility will not be easily eroded, and risks can be kept within a certain range."

Hearing Zhu Cilang's affirmation, Zheng Hongkui was immediately excited and agreed repeatedly. Then, he struck while the iron was hot and asked a few questions about the specific implementation details.

Zhu Cilang patiently offered his suggestions, demonstrating them with concrete examples, which resonated deeply with the audience. He then flipped open another plan submitted by Li Xiaolin, detailing the plans for establishing self-operated workshops, a customs office, and mountain and sea banks. These plans concerned not only current economic reforms but also the long-term development of Ming Dynasty's commercial system.

Zhu Cilang read with great concentration, his expression reflecting deep thought with each page he turned. The establishment of the Maritime Customs Office aimed to strengthen the management and regulation of import and export trade, while the Shanhai Money House aimed to establish a more stable currency circulation and loan system.

These two institutions, along with the Ministry of Industry and Commerce, which coordinated commerce and production across the country, formed the "three horses" of the Ming Dynasty's future commercial economy. From inland to maritime trade, from markets to currency, this system encompassed nearly the entire economic lifeline.

Zhu Cilang knew that the difficulty of implementing these plans should not be underestimated, but if they were successfully implemented, they would completely change the economic structure of the Ming Dynasty.

"The key to these plans lies not only in the system itself, but also in the personnel," Zhu Cilang muttered to himself. He quickly sketched out an organizational chart in his mind, and combined it with his understanding of the talents within the court, he began to make arrangements. He understood that any institutional design would ultimately become empty talk without the right implementers.

"For the Department of Industry and Commerce, Ni Yuanlu is the most suitable person," Zhu Cilang pondered. "He has managed the national treasury for many years and has a deep understanding of price fluctuations and market trends across the country. Having him assign someone to oversee the specific affairs of the Department of Industry and Commerce will help them get up to speed quickly and reduce resistance to the initial pilot program."

"As for the Daming Money House," Zhu Cilang paused and continued, "Zhang Mingzhen is a good choice. During his time preparing for military supplies, he's become familiar with the circulation of silver, the collection of interest, and the management of merchant ships. He's particularly familiar with the affairs of ship owners at various seaports, so letting him take over is the most appropriate. If someone new were to take over, I'm afraid it would be difficult to handle it properly in such a short time."

Zheng Hongkui listened silently, nodding his head. He secretly praised Zhu Cilang's personnel decisions, which not only took into account the talents' specialties but also rationally allocated complex tasks. As an executor of specific tasks, Zheng Hongkui knew that such a layout would not only avoid buck-passing and wrangling during the implementation of the new policy, but also enable all links to operate more efficiently.

An hour later, Zhu Cilang closed the thick booklet, rubbed his brow, and slowly leaned back in his chair. He let out a long breath, clearly having thought deeply and weighed the pros and cons. By this time, the oil lamp on the desk had burned halfway, its flickering light reflecting on his face, adding a touch of solemn majesty.

Zheng Hongkui breathed a sigh of relief upon seeing this, but he maintained a serious expression. Despite his inner anticipation for these reform plans, he was well aware that their implementation would be fraught with challenges. On the one hand, he would have to contend with the constraints of local interest groups; on the other, he had to be wary of criticism and obstruction from within the imperial court.

(End of this chapter)