I was compiling the daily records during the Wanli reign

Chapter 329 Punishing High-Interest Lending! Shen Nian with a pale face, Wanli with a red face.
You won't know until you look it up, and once you do, you can't sleep.

In the past two days, Shen Nian was quite surprised after learning about the debt situation of the entire Shuntian Prefecture.

Unexpectedly, after the implementation of the Single Whip Law, commerce and trade have not yet flourished, but the money lending industry has become the hottest industry at present.

In the capital, wealthy and powerful families with surplus money almost all lend out private loans.

Shen Nian did not dislike the money lending industry, because it was an industry that would inevitably emerge after the prosperity of commerce.

Ordinary people sometimes need to borrow money to make ends meet for weddings and funerals.

But he abhorred high-interest lending.

Lending money at high interest rates is essentially taking advantage of people's misfortunes, and most people who do this do not end well.

Two years ago, Shen Nian clearly remembered that the interest rates for mortgage loans secured by land or houses were mostly around one percent, one and a half percent, or two percent.

Interest rates on private loans are mostly below 6%.

Only some casinos and brothels offer interest rates in the range of 7%, 8%, or 9% for loans to people with poor credit or for short-term debts of less than three months, but they almost never exceed 10%.

In addition, the "capital debt" (i.e. money borrowed by officials before taking office) was generally subject to an 80% deduction (borrowing 100 taels and receiving 80 taels) or a 90% deduction (borrowing 100 taels and receiving 90 taels), plus a monthly interest rate of 5%.

But in the capital city at present.

Mortgage loans often have interest rates exceeding 5%; unsecured private loans frequently have monthly interest rates as high as 10%, and many wealthy and powerful individuals deliberately prevent borrowers from repaying their debts on time in order to obtain collateral or even greater profits.

As for the Beijing bonds, the interest rate has now reached six-tenths (borrowing one hundred taels, actually receiving sixty taels), with a monthly interest rate of ten percent.

The Beijing bonds are targeted at officials.

The reason why the interest rate is so high is that the creditors of Beijing bonds are higher-level powerful figures.

Of course, some shrewd businessmen also issued low-interest or even interest-free Beijing bonds to certain officials.

They appear benevolent, but in reality, they covet the power that officials will wield after taking office, with the ultimate goal of colluding with businessmen to make more money.

Currently, the reason why borrowing interest rates have doubled is...

On the one hand, people's dependence on silver increased; on the other hand, a series of new laws led to serious economic losses for officials, nobles, members of the royal family, wealthy merchants, and other rich people. Unwilling to lower their quality of life, they made money by lending money.

In the capital city at present, the best business to do is lending money.

In several counties and townships under the jurisdiction of Shuntian Prefecture, officials and clerks encouraged people to borrow money in order to collect taxes. Some illiterate people were cheated out of their wealth and had nowhere to turn for help.

As the young Wanli Emperor said: "The relationship between a debtor and a creditor is like that between a tenant and a landlord."

If more and more debtors are exploited by high-interest debt, and they find that even tightening their belts and working day and night is not enough to repay their debts, then there is only one way left to go: to rebel.

High-interest loans are of no benefit to the development of commerce and trade, and are an obstacle to ensuring that people across the country have enough to eat.

If the imperial court does not intervene, things will only get more and more outrageous.

……

On the ninth day of the twelfth lunar month, in the afternoon, Shen Nian arrived at the Wenhua Hall.

Emperor Wanli had Shen Nian review the documents concerning the debt situation in the capital that he had ordered the Imperial Guard to investigate.

Shen Nian smiled helplessly after reading it.

There are many high-interest lenders among the inner court, the outer court, nobles, and wealthy merchants.

Officials from Beijing accounted for as much as 50%.

Most of them opened pawnshops or trust shops in the name of their clan or relatives, and then cultivated a large number of money brokers to lend money everywhere.

Even Feng Bao engaged in lending.

He claimed it was for retirement, but he set the interest rate to 3% per month, which was exactly the limit set by the Ming Dynasty Code.

Some powerful and influential people specifically borrowed money from Feng Bao, and then spent the borrowed money.

High-yield bonds are currently mainly targeted at merchants, scholars, military households, and farmers.

The amount of debt in counties and townships was far lower than in the capital, but the monthly interest rate was far higher. Many people were ruined and killed because of debt.

……

On his throne, the young Wanli Emperor frowned slightly.

"Shen Qing, this matter involves too many people. Severe punishment may be difficult to implement, while lenient punishment will not serve as a deterrent. What should we do?"

Shen Nian smiled slightly.

"Your Majesty, I have a plan, but it may require some inconvenience to the eunuchs in the inner court."

After saying that, Shen Nian took out a memorial from his bosom.

The eunuch Fang Ping, who was standing nearby, immediately took the memorial and presented it to the young Wanli Emperor.

The young Wanli Emperor opened the memorial and began to read it carefully.

Before long, a bright smile appeared on the face of the young Wanli Emperor.

"Minister Shen, you know me so well! You know me so well! This time, with our combined efforts, we, the emperor and his ministers, will surely be able to completely destroy these high-interest debts!" ​​the young Wanli said excitedly.

That's why he was so excited.

This is because Shen Nian's memorial this time was completely different from the past.

In the past, Shen Nian's memorials were all suggestions, and then the court would discuss whether the strategies were feasible.

The young Wanli Emperor acts as either a decision-maker or an observer who nods or shakes his head, while Shen Nian is the protagonist.

This time, however, Shen Nian is the supporting character, while the young Wanli Emperor is the main character.

Officials will all be focused on the young Wanli Emperor.

Shen Nian wanted to let the young Wanli Emperor experience the feeling of "all the civil and military officials bowing their heads and praising His Majesty's wisdom".

The current Wanli Emperor needs to find a sense of honor in being a wise and benevolent ruler.

……

The next day, it was nearly noon.

Feng Bao, the Grand Eunuch of the Directorate of Ceremonial, and Zhang Hong, the Secretary Eunuch, appeared in front of the Meridian Gate with a group of eunuchs and Imperial Guards.

Immediately afterwards, the four eunuchs, who were bound with hemp ropes, were pressed face down to the ground.

Not far away, eight Imperial Guards stood in a row, each holding a bamboo board about five feet long and four or five centimeters in diameter at the larger end.

Clearly, this is a punishment of caning.

This move quickly attracted the attention of the officials from the Six Departments' Corridor next to the Meridian Gate.

Emperor Wanli had not issued an edict for a long time to punish criminals with caning in front of the Meridian Gate.

The punishment of eunuchs by caning was usually carried out in the inner court. The fact that it was carried out at the Meridian Gate clearly indicates that these four eunuchs had committed a serious offense.

Seeing that everyone was ready, Feng Bao immediately announced loudly: "Xu Neng, the eunuch on duty at the Imperial Kitchen; Zhang Ya, the eunuch on duty at the Imperial Clothing Bureau; Sun De, the eunuch at the Silver Workshop; and Gao Dong, the eunuch at the Weapons Bureau, have been using the names of the Twenty-Four Bureaus of the Inner Court to lend money to the common people at exorbitant interest rates of up to nine percent per month. This violates the Great Ming Code and damages His Majesty's reputation. Therefore, all their private property is hereby confiscated, and they shall be punished with fifty strokes of the cane!"

Feng Bao paused for a moment, then shouted to the Imperial Guards beside him, "Put down the sticks and hit them hard!"

Hearing the words "play with your heart".

Two eunuchs fainted instantly; the beating was aimed at killing them. Bang! Bang! Bang!
The sound of flogging and the cries of the beaten could be heard from the Meridian Gate.

Feng Bao chose to sacrifice these four people because they not only offered high monthly interest rates on their loans but also did not give any kickbacks to the Directorate of Ceremonial.

It should be noted that most of the money Feng Bao earned from borrowing was reserved for the royal family!
This is a rule in the palace.

The clerks standing nearby and the officials who happened to be passing by were all somewhat bewildered when they heard the charges read out by Feng Bao.

In their eyes, it was not a serious crime for eunuchs to lend money in the name of the inner court at a monthly interest rate of nine percent.

Since many officials lend money at similar interest rates and do so in the name of the imperial court, if this is used as the standard for punishment, then at least eighty or a hundred people will be flogged in court.

This move was the prelude set up by Shen Nian.

First, beat up the eunuchs in the inner court to show that the young Wanli Emperor would not plunder the people's wealth, and then he could punish the officials in the court who were lending money.

After the officials learned that four eunuchs had been beaten to death for lending money at high interest rates, Shi Qing also revealed that Emperor Wanli had encountered a case of lending money at high interest rates a few days earlier during his inspection tour.

This incident was the trigger that enraged the young Wanli Emperor, and it also demonstrated his concern for the common people.

Many officials who heard the news couldn't help but discuss it.

"I'm afraid... I'm afraid His Majesty is preparing to punish the practice of high-interest lending among the people. I only invested money last month, is it too late to withdraw now?"

"What's there to be afraid of? At least half of the officials in the court are involved in lending money at high interest rates. This is currently the most profitable business. Does Your Majesty intend to have all these officials flogged in court? There are far too many things in the world that violate the Great Ming Code!"

"Could His Majesty be making an example of someone to scare others? I have a feeling that His Majesty will definitely bring up this matter during the regular court session on the thirteenth day of the twelfth lunar month!"

……

Early morning, the eleventh day of the twelfth lunar month.

The story of Emperor Wanli's execution of four eunuchs for lending money at exorbitant interest rates, and his discovery during an incognito inspection of the streets of a private individual who had been lending money at exorbitant interest rates—where a loan of three taels of silver could balloon to ten taels of silver in three months—leading to the sale of the debtor's daughter into a brothel, spread throughout the entire court.

This has made many officials involved in lending quite nervous.

This matter can be big or small.

If the Ming Dynasty law were truly followed, there might have been a scene of hundreds of officials being flogged in front of the Meridian Gate.

The four Grand Secretaries Zhang Juzheng, Yin Zhengmao, Wang Xijue, and Shen Shixing were unaware that high-interest lending in the private sector had developed to such a serious extent, and they were all quite surprised after learning about it.

Just as Zhang Juzheng was about to summon the other four cabinet ministers to discuss the matter, Shen Nian had already written a "Policy on Punishing High-Interest Lending" and sent it to the Office of Transmission.

Shen Nian was always efficient, especially since he was the one accompanying the young Wanli Emperor on his incognito patrol of the streets.

Because this memorial was not a secret memorial, it was quickly transmitted to various government offices in the capital.

Many officials involved in high-interest lending were so angry upon seeing this memorial that their lips trembled and they nearly fainted.

In his "Punishment of High-Interest Lending," Shen Nian defines high-interest lending as a severe disruption to the Single Whip Law, a sharp blade piercing the nation's commercial and trade sector.

Shen Nian stated that high-interest lending will lead to the re-emergence of land consolidation, causing ordinary people at the bottom to become vagrants or even rebels, and making many farmers who struggle to make ends meet and wish to engage in commerce hesitant to do so...

Shen Nian described this action as extremely serious.

He then proposed that Shuntian Prefecture be used as a pilot area to immediately investigate all high-interest lenders in the capital, and that any monthly interest rate higher than three percent be considered high-interest lending.

Afterwards, all creditors who lent money at high interest rates were thoroughly investigated. In addition to being fined three times the amount, they were also punished with no less than thirty strokes of the cane. All members of the royal family, nobles, officials, and wealthy merchants were included in the punishment.

……

Upon reading this memorial, the officials suddenly felt as if they had returned to the era of Emperor Taizu Zhu Yuanzhang.

High-interest lending involves many people, and this punishment is far too harsh.

Shen Nian couldn't possibly be unaware that many officials were involved in high-interest lending, and his suggestion was meant to put the officials through a difficult period.

This memorial is very much in line with Shen Nian's style.

"This...this...private lending, with contracts signed between the parties, one willing to lend and the other willing to borrow, how could it be such a heinous crime?"

"Shen Nian has gone mad! Shen Nian has gone mad! He's making sure we don't get a single penny out of him. What's the point of being an official like that? With that meager salary, I can't even afford to support a concubine!"

"Gentlemen, since Grand Secretary Shen joined the cabinet, His Majesty and the other four Grand Secretaries have never refuted any of the various strategies he has proposed. In addition, His Majesty was quite angry about this matter. This strategy is very likely to be implemented!"

"It's over! It's over! I can accept being flogged in court, but if they confiscate my property, all these years of hard work will have been for nothing. Your Majesty, please don't do that!"

……

The officials were abuzz with discussion, cursing Shen Nian while pondering how to save themselves.

After Zhang Juzheng, Yin Zhengmao, Shen Shixing, and Wang Xijue read Shen Nian's "Policy on Punishing High-Interest Lending," Zhang Juzheng did not express any opinion.

Yin Zhengmao and Wang Xijue praised Shen Nian's strategy.

Shen Shixing felt that Shen Nianzhi's plan was too harsh. The New Year was approaching, and if the court dragged hundreds of officials and nobles to the Meridian Gate and beat them up, it would affect the stability of the court.

Therefore, Shen Shixing submitted a memorial opposing Shen Nianzhi's policy, but his memorial was directly detained by the young Wanli Emperor.

This has made many officials involved in high-interest lending even more uneasy.

At the same time, the news also spread to the general public.

Many wealthy merchants were also terrified, knowing that the money they had made was too easy and illicit, and they were very worried that the imperial court would confiscate their property.

For a time, the festive atmosphere of the New Year in the entire capital was suppressed by this incident.

In order to improve their performance evaluations, some officials began to collect information on the negative impacts of officials and nobles lending money at high interest rates.

In less than a day, more than ten officials were impeached.

Officials were all waiting for the young Wanli Emperor to make a statement.

However, the young Wanli Emperor kept the memorials pending, clearly intending to resolve the matter at the regular court meeting on the thirteenth day of the twelfth lunar month.

During this time, Zhang Juzheng went to the Wenhua Hall, and what the emperor and his minister discussed remains unknown.

However, after leaving the Wenhua Hall, Zhang Juzheng remained silent. Even when Yin Zhengmao asked him how to resolve the matter, he said that it would be discussed again during the regular court session.

This undoubtedly makes officials involved in high-interest lending even more uneasy.

Meanwhile, Shen Nian, who was in the cabinet office and responsible for making trouble, was leisurely flipping through a local tabloid.

He guessed that in the past few days, a large number of officials must have hated him and been cursing him.

But Shen Nian didn't care at all.

His persona of "it's better for officials to suffer than for ordinary people to suffer" is already firmly established.

Currently, as long as he has enough power and is fully trusted by the young Wanli Emperor, the officials' criticisms of him have no effect.

Next, he would block the path for officials and nobles to rise in rank and make a fortune through crooked means, so that future officials would understand that promotion and wealth could not happen at the same time.

Now that the stage is fully set up, the officials are like ants on a hot plate.

Next, we just have to wait for the young Wanli Emperor to perform a grand opera at the morning court session on the thirteenth day of the twelfth lunar month.

This time, Shen Nian is in charge of playing the bad cop, while young Wanli is in charge of playing the good cop.

Shen Nian not only had to resolve this matter, but also had to help the young Wanli regain the sense of control he would have when he took power.

This time, he will join forces with the young Wanli Emperor to deal with that group of selfish and self-serving civil and military officials.

(End of this chapter)