Taichang Ming Dynasty

Chapter 740 Obeying Instructions and Following Rules

Wang Yingjiao pondered for a moment, his knuckles unconsciously tapping lightly on the table. "Collecting paper taxes and implementing them throughout the land," he looked up at Gao Shiming, his gaze deepening, "Does His Majesty truly intend to replace silver with paper money and streamline the monetary system?"

"No," Gao Shiming opened his mouth, then immediately closed it again. After taking a sip of tea, he cautiously spoke again: "His Majesty's thoughts are not something a mere seventh-rank official like myself can presume to fathom. However, the gradual implementation of the conversion of tax silver into paper money is a certainty."

Gao Shiming had essentially repeated the same point, so Wang Yingjiao had to rephrase his question: "When will this be implemented, and how exactly will it be changed? Could you please explain in detail, Eunuch Gao?"

“I can’t go into the details. The original plan was for the conversion of salaries into paper money and the conversion of taxes into paper money to be carried out simultaneously. However…” Gao Shiming’s gaze swept across the slightly rippling tea, then slowly moved upwards, “The Shuntian Prefecture Office submitted a memorial stating that although the conversion of taxes into paper money was only being piloted in the capital, it was still a major matter of streamlining the monetary system, and should ultimately be coordinated and managed by the Ministry of Revenue. The memorial was sent to the Grand Secretariat, and the Grand Secretaries seconded it. When the memorial was sent to the Ministry of Revenue, Vice Minister Wang also argued that ‘assistants are not in charge of official duties, and powerful officials are not in charge of major matters.’” He tapped the table lightly with his fingertips, his gaze meeting Wang Yingjiao’s. “Therefore, the matter of converting taxes into paper money was put on hold, and we only dealt with the conversion of salaries into paper money first.”

“In that case,” Wang Yingjiao said, his cheek twitching slightly, “I was the one who delayed this important matter.”

"Hehe." Gao Shiming didn't respond, but instead said with a smile, "Minister, you met with the Emperor yesterday, so you should understand His Majesty's intentions better than I do, right?"

"We discussed a lot yesterday, but this matter wasn't mentioned," Wang Yingjiao said with a wry smile. "Otherwise, I wouldn't have come to disturb your peace at this time."

"Minister, please don't be so formal. I'm overjoyed that you could come; how could I say it's an intrusion?" Gao Shiming smiled, his fingertips lightly tracing the rim of his cup. "I was just about to ask you what your opinion is on this matter, Minister."

Wang Yingjiao thought for a moment and then asked, "Does Eunuch Gao know how much it costs to print a single banknote?"

"How much?" Gao Shiming blinked, a look of doubt flashing across his eyes. "Is the Minister referring to the cost of materials and labor required for printing the banknotes?"

“That’s right.” Wang Yingjiao nodded.

"To be honest, I haven't really thought about it in detail. Hmm," Gao Shiming paused for a moment, then pondered, "If I had to calculate it, it would probably be a few cents per sheet. If we print a lot of them."

The fixed format of banknotes allowed for large-scale printing over a long period, making them a natural fit for woodblock printing. Aside from the initial cost of crafting a high-quality master block, the cost of subsequent printing was extremely low.

Once the printing plate was completed, it could be handed over to craftsmen with low skill requirements to repeatedly and mechanically print the same plate. This saved on the high wages required for skilled workers in movable type printing. The materials used were just ordinary paper and ink, inexpensive and readily available, and the plate could be retrieved and reprinted whenever needed. Therefore, the more copies printed, the lower the marginal cost per banknote. However, there were exceptions. For example, on banknotes with a face value of hundreds of taels, gold and silver threads were inlaid outside the engraving plate by imperial decree, causing the cost per banknote to rise sharply. However, compared to those extravagant face values ​​of hundreds or thousands, even with the use of gold threads, the cost was negligible.

“A silver note can be printed with only a few cents of production cost.” Wang Yingjiao said seriously, “What do you think supports this price difference, sir? And why would ordinary people be willing to use something worth only a few cents of silver as if it were a full tael of silver?”

Gao Shiming's expression hardened slightly: "If I am not mistaken, Minister Wang is referring to credibility?"

“A person cannot stand without integrity, and money cannot circulate without trust.” Wang Yingjiao nodded emphatically, his tone turning serious. “Does Eunuch Gao know why our Great Ming Dynasty abandoned the Hongwu Treasure Notes and instead used silver?”

Gao Shiming roughly guessed what Wang Yingjiao meant, but since it involved ancestral rules, he could only force a smile and say, "Minister Wang, please speak frankly."

"In the early years of the dynasty, Emperor Taizu banned gold and silver, and circulated paper money instead, which was certainly a good intention. However, the excessive printing of paper money and the scarcity of its circulation led to its depreciation and its abandonment by the people. Despite the pressure, the people had no choice but to use silver privately. Later, even when the court implemented the Single Whip Law, it could only levy taxes in silver, not paper money." Wang Yingjiao looked directly at Gao Shiming. "Just now, you asked me what I thought of this matter." Wang Yingjiao paused, his tone becoming more serious. "I believe that as long as we live within our means, use silver as the foundation, and do not over-issue silver paper money, like the paper money of yesteryear, it would be a good policy."

Gao Shiming was silent for a moment, then looked north and smiled, "I understand what Minister Wang means."

Wang Yingjiao wasn't sure if Gao Shiming truly understood, but having come this far, he couldn't continue regardless of Gao Shiming's misunderstanding. Wang Yingjiao took a sip of tea and changed the subject, asking, "I've heard that above your firm are the Beijing branch and the national headquarters?"

“That’s right.” Gao Shiming also breathed a sigh of relief. “My Zhengyangmen branch, along with the Fuchengmen branch, Chaoyangmen branch, and Andingmen branch, are all subordinate branches of the Beijing branch.”

"Where is the Beijing branch?" Wang Yingjiao asked.

“In the Imperial City,” Gao Shiming said. “Sharing the old office of the Director General with the head office.”

Wang Yingjiao didn't know where the Capital Garrison was, but he had no intention of asking. To him, the information that it was "inside the Imperial City" was enough.

"I heard that the head of the Beijing branch is surnamed Hui?" Wang Yingjiao said.

“That’s right. It’s Eunuch Hui, Hui Jingao.” Gao Shiming came from the Directorate of Ceremonial and once rose to the position of Junior Director. To be honest, he didn’t think much of Hui Jingao, who had been a lowly eunuch in the Directorate of Palace Attendants for a long time. But since Hui Jingao had become his superior, Gao Shiming could only suppress his resentment and maintain proper etiquette in public and private to avoid giving others cause for criticism.

Has Eunuch Hui returned to the capital?

“I came back for a while, but only stayed for a few days. After reporting for duty, I went on another business trip. This time,” Gao Shiming scratched his chin and added, “I’m going to Baoding and Zhengding.”

"Should we start a branch or spread the leaves?" Wang Yingjiao asked.

“Yes. Site selection.” Gao Shiming nodded. “He’s been busy with this lately.”

"So who's in charge of things in the capital now?"

“Of course it’s Chief Wei. During the time that Eunuch Hui was away, he was in charge of the management of the four major banks in the capital. However, he is usually by the Emperor’s side, so you probably won’t have a good chance to see him,” Gao Shiming picked up the teapot and added some water to Wang Yingjiao’s cup. “If there’s anything you need, just tell me. I will make sure to convey your message clearly to the palace.”

"Don't find me annoying, Eunuch Gao." Wang Yingjiao raised his glass in gratitude and made a gesture of respect to Gao Shiming.

“How could I be so ungrateful?” Gao Shiming replied with a smile.

Wang Yingjiao took only a sip of tea before setting down his cup. "Eunuch Gao, may I ask who the branch manager of the Shandong branch is?"

“There is no Shandong branch,” Gao Shiming retorted. “Why are you asking this?” “If there is no Shandong branch, then what is the Shandong branch?” Wang Yingjiao asked, puzzled.

"Hey," Gao Shiming chuckled and explained, "The Shandong branch is now managed by the Beijing branch. The three sub-branches also report directly to the Beijing branch."

"If that's the case, why not just call it the Liaodong Branch?" Wang Yingjiao couldn't help but ask.

"Don't the five circuit intendants under the Liaodong governor also hold the titles of Shandong provincial governor or provincial judge?" Gao Shiming said with a smile.

Wang Yingjiao immediately understood, but his expression became even more serious: "What is the palace planning to do by opening a Shandong branch in Liaodong?"

“You’ve asked the wrong person.” Gao Shiming shook his head apologetically. “I’m just a small branch manager, how could I know about such a big thing?”

"Uh," Wang Yingjiao said with some disappointment, and lowered his head.

“However, it is said,” Gao Shiming’s voice drifted over again, “that it may be related to what happened in Tianjin.”

"Tianjin?" Wang Yingjiao looked at Gao Shiming in surprise.

“That’s right,” Gao Shiming said. “Hasn’t the sea route from Tanggu in Tianjin to Gaizhou and Yingkou been opened up? In the future, people and merchants will inevitably need to exchange silver and notes. If we set up banks on both sides, wouldn’t things be much more convenient?”

Gao Shiming's answer clearly did not satisfy Wang Yingjiao, but he did not press him on the matter of the silver notes and military pay that he most wanted to know. Gao Shiming said he would tell him everything he knew, but judging from his shrewd and calculating manner, even if he knew the inside story, he probably wouldn't reveal it easily.

"When does the palace plan to set up a branch in Tianjin?" Wang Yingjiao continued, following up on the conversation.

“It’s already open.” Gao Shiming countered, “I heard that the Tianjin branch is near the Zhongwei Commandery’s office. Didn’t you see it when you went north?”

“I didn’t enter the fortified city.” Wang Yingjiao shook his head, a thoughtful look on his face. “I spent the night at the post station and then continued north.”

Gao Shiming nodded. "No wonder."

“Zhongwei in Tianjin is more than a hundred li away from the coast,” Wang Yingjiao asked. “Isn’t it a bit too far to have a branch in the city of Wei?”

"You've really thought of everything. No wonder you've served as the governor of Tianjin," Gao Shiming said with a flattery. "There's also a separate branch on the coast called the Tanggu branch. I'm not sure exactly where it's located, but I've heard there are quite a few forts nearby."

Wang Yingjiao nodded slightly and continued, "Eunuch Gao just said that those Westerners will be arriving in port this month. Could it be that the Palace has set up branches in Tianjin and Tanggu because of this?"

"Of course it's related!" Gao Shiming didn't shy away from the topic. "Those Westerners who want to do business in Tianjin can't just have silver; they have to go to the bank and exchange all their silver for banknotes first."

"Exchange it all for silver notes?" Wang Yingjiao asked. "Would they be willing to do that?"

“They don’t have to come if they don’t want to. It’s not like we’re begging them to come and do business,” Gao Shiming said nonchalantly. “Besides, they don’t lose anything by exchanging one tael of silver for one tael of silver notes. In the end, they all come full of silver and leave fully loaded with goods. It’s just an extra step of exchanging notes.”

"And what about our merchants?" Wang Yingjiao asked again.

“I’ll say it again: if you don’t want to do this business, you don’t have to. Nobody’s forcing you. If you want to do business, you have to listen to instructions and follow the rules.” Gao Shiming shrugged. “Besides, we don’t force merchants to hold banknotes. If they insist on cash, they can go to the bank to cash them.”

"What will happen to Yuegang in Fujian after Tianjin opens to foreign trade?"

"I don't know about that." Gao Shiming seemed to chuckle to himself.

--------

As noon drew to a close and the sun began to set, the scene in the bank lobby had changed. The once sparsely populated counters were now sparsely populated with customers looking to pawn or borrow money. At the westernmost window, a man in a faded blue cotton shirt was holding a nearly new sheepskin coat, his face showing signs of a quiet argument with the teller.
"Shopkeeper, please do me a favor. I just want to pawn this for a little money to tide me over, and I'll definitely come back to redeem it before the beginning of autumn. Besides, take a closer look, this is a fine new coat made last winter; it must be worth at least two taels of silver, right?"

"Ha! Sir, don't you feel guilty saying that?" The clerk picked up the fur coat and examined it carefully, running his fingertips along the collar. "Look at this collar, it's all frayed, and the cuffs are patched." He then squeezed the lining of the coat. "And the cotton inside is all stiff and hardened, it must have been worn for many years, right? If it weren't for the fact that it's a sheepskin coat, I wouldn't be able to pawn it for this price. One tael and two mace, come back at the beginning of autumn, and I'll add two mace to redeem it. After that, I'll add one mace for each month that passes. That's the price. If you're willing to pawn it, I'll get the money for you right now."

“One tael and two mace is far too little,” the man was about to argue when he suddenly saw an old man with a white beard in a bright red robe coming down from the second floor, and he immediately fell silent. Wang Yingjiao and Gao Shiming walked down the stairs side by side, and the hushed conversations in the lobby instantly quieted down. Several customers who were conducting business unconsciously took a half step back. The servants standing in the lobby and the bank's hired guards silently surrounded Gao Shiming, stopping three steps behind him, forming a respectful farewell line.

Wang Yingjiao's sedan chair bearers, who had been drinking tea on a bench in the corner of the lobby, quickly swallowed their tea upon seeing this and rushed out the door. In the blink of an eye, the sedan chair came to a steady stop in front of the bank. The lead bearer deftly lifted the curtain and stood respectfully to the side.

Gao Shiming personally escorted Wang Yingjiao to the street. By this time, the smoke from the midday market had dissipated, and the food stalls had all taken down their stoves and set up tea stalls instead. The aroma of jasmine tea brewing in large copper kettles wafted through the air, mingling with the lingering scents of food. Several peddlers carrying loads were selling sour plum soup cooled with well water along the street, their wooden spoons tapping against earthenware bowls with a crisp sound. Scholars were reciting poetry and composing verses in front of the tea stalls, while porters gathered under the shade of locust trees, quenching their thirst with large bowls of tea.

“Eunuch Gao, there’s no need to see me off any further. Please go back.” Wang Yingjiao stopped in front of the sedan chair.

"Please take care, sir. Come back anytime if you need anything." Gao Shiming bowed and smiled. "You can also send someone to check on the Taiji Factory at any time."

"Alright, thank you for your trouble, Eunuch Gao." Wang Yingjiao bent down and climbed into the sedan chair, then lifted the curtain after sitting down. "I'll take my leave now."

"Please take care, Minister."

(End of this chapter)