Taichang Ming Dynasty

Chapter 763 Detailing Policies
Gao Shiming listened attentively to Wang Yingjiao's words, remained silent for a moment, and unconsciously tapped his right fingertips lightly on the back of his left hand. "Thank you for your frankness, Minister Wang. I understand your meaning." He nodded to Wang Yingjiao first, then turned his gaze to Shen Guangzuo. "I also understand the difficulties of Shuntian Prefecture. However, such a significant matter cannot be decided by a mere seventh-rank branch manager like myself."

He picked up his teacup, watching the tea leaves floating in the water. "Well then, regarding the matter of the fire loss, I will immediately submit a written report to the head office and the Directorate of Ceremonial Affairs after I return." His gaze shifted upwards again, moving between Wang Yingjiao and Shen Guangzuo. "Minister Wang and Grand Secretary Shen may also submit their proposals to the Emperor, or directly present them to him in person. What do you two think?"

Wang Yingjiao hadn't expected Gao Shiming to make a decision on the spot and immediately come up with a relief plan. "Very well, thank you for your trouble, Eunuch Gao." He stroked his beard and nodded slightly. "The Ministry of Revenue will then submit a report to the Emperor."

Gao Shiming turned his gaze to Shen Guangzuo. Shen Guangzuo nodded as well, forcing a smile on his tired face: "It's good that Eunuch Gao can understand the difficulties of Shuntian Prefecture." After saying that, he gave Zhao Shiyong a meaningful smile, as if to thank the other party for taking the initiative to bring up this thorny issue.

Zhao Shiyong was taken aback at first, then blinked and smiled, his fingers unconsciously tracing circles on his official robe, looking thoughtful.

At this moment, the constable returned. He carried a rosewood tea tray with four freshly brewed cups of hot tea on it. The constable carefully entered the hall, first going to Zhao Shiyong, whose tea table was empty, and serving him the first cup of tea. He then replaced the tea with a steaming cup of tea for Shen Guangzuo and Wang Yingjiao in turn.

When the yamen runner brought the last two old cups of tea and one new cup to Gao Shiming's side, and was about to reach out to replace the almost untouched old cup, Gao Shiming gently stopped him, smiling as he said, "I've only had two sips of this tea, and it's still very flavorful. If you replace it with a new one, it'll just have to cool down."

The constable's hand froze in mid-air, a hint of embarrassment on his face. He was merely following orders; he hadn't expected the guest to refuse to change the tea. In this situation, he naturally dared not say anything. For a moment, he was caught between changing it and not changing it, and could only look to Wang Yingjiao, who sat in the main seat, for help.

"Since Eunuch Gao says so, then so be it." Seeing this, Wang Yingjiao chuckled, "However, we still have some things to discuss, so waiting a little longer won't hurt, will it?"

Gao Shiming's eyes lit up, and he readily agreed with a smile, "Since that's the case, then I'll shamelessly drink another cup of tea from the Ministry of Revenue." With that, Gao Shiming picked up his half-warm teacup, took a big sip, and then proactively placed the half-empty teacup onto the tray carried by the yamen runner.

The constable breathed a sigh of relief, quickly put down the cup of new tea meant for Gao Shiming, and said, "Please have some, sir." Then, carrying the three old teacups that had been replaced, he bowed and withdrew.

After the footsteps of the yamen runners faded into the distance, the reception hall fell silent for a moment. Gao Shiming picked up a cup of freshly brewed tea, gently blew on it, and looked up at Wang Yingjiao, asking, "I wonder if Minister Wang has any further instructions?"

Wang Yingjiao didn't respond, but just smiled and then turned his gaze to Shen Guangzuo beside him, using his eyes to signal the other to speak.

Shen Guangzuo understood and bowed, continuing, "Eunuch Gao, I would like to ask you, besides the four branches in the capital, where else does your firm have branches?"

“Local branches.” Gao Shiming looked at Wang Yingjiao. “Minister Wang, as I told you before, our bank currently only has the Beijing branch, and even the Shandong branch is temporarily under the Beijing branch?”

“Eunuch Gao did say that your bank only has a branch in the capital,” Wang Yingjiao nodded, then shook his head, “but you didn’t say exactly where your bank has branches. In particular, you didn’t say which of the five prefectures and twenty-two counties under the jurisdiction of Shuntian Prefecture have branches.” Wang Yingjiao looked at Shen Guangzuo, directing Gao Shiming’s gaze towards him. “If we don’t know these things, it will be very difficult for Shuntian Prefecture to implement its policies.”

“Alright, I understand what you mean,” Gao Shiming said, narrowing his eyes as he thought for a moment. “Branches have been planned in the capitals of Tongzhou, Zhuozhou, Bazhou, Jizhou, and Changping. Among them, branches in Tongzhou, Jizhou, and Changping have already been opened with personnel. As for the county level, branches have been designated and personnel have been dispatched in the four counties directly under the Shuntian Prefecture: Liangxiang, Daxing, Wanping, and Xianghe. Also, tsk…” Gao Shiming was not the general manager of the capital branch, and he had not usually focused on opening local branches.

“Branches have also been planned in Huoxian and Wuqing under Tongzhou, Yutian and Fengrun under Jizhou, and Huairou and Miyun under Changping Prefecture. However, I’m not entirely sure whether these counties have already sent people to prepare for their opening.” He blinked, pulling himself together. “If I remember correctly, that’s roughly the situation.”

"What about Zhuozhou and Bazhou?" Shen Guangzuo asked. "Eunuch Gao hasn't mentioned your firm's arrangements in these two prefectures yet."

"Is it still not confirmed?" The person who answered was surprisingly Wang Yingjiao. He looked at Gao Shiming, "I remember when I visited him before, Eunuch Gao said that Eunuch Hui went south on a business trip after reporting on his duties."

"It's good that Minister Wang still remembers what I said," Gao Shiming grinned, then turned to Shen Guangzuo, "Prefect Shen, this is how it is. The head office decided a long time ago to set up branches in the five prefectures of Shuntian, but the specific locations and whether to set up branches in the subordinate counties still need to be investigated. At present, Eunuch Hui has completed his inspection of the three northern prefectures and is currently investigating the two southern prefectures."

"In other words," Shen Guangzu nodded thoughtfully, "not all counties have branches of your bank? For example, Sanhe and Baodi in Tongzhou, and Shunyi in Changping."

“That’s right,” Gao Shiming affirmed. “Some counties are too close to the prefecture capital, or are simply remote and poor. If a branch is set up separately, the business revenue may not even cover the personnel expenses.”

“If that’s the case,” Shen Guangzu frowned slightly, “the people in these places probably won’t be able to pay taxes with banknotes.”

“Prefect Shen is overthinking it. How could there be no way?” Gao Shiming immediately interjected. “Even if there is no branch in this county, the people in those areas can go to the branches in neighboring prefectures and counties to exchange for silver notes and pay their taxes. As silver notes circulate more widely and gain more credibility in the future, money shops and draft banks in various places will naturally take on the business of exchanging silver notes. Just like how people use money to buy silver now.”

"As circulation expands and reputation grows, that's a matter for the future." Shen Guangzu slowly shook his head. "Eunuch Gao, as Confucius said, 'Haste makes waste.' The conversion of tax silver into invoices involves a wide range of issues and cannot be accomplished overnight. I believe that rather than rushing things and creating unnecessary trouble and resentment in the local areas, it would be better to prioritize stability and take a gradual approach. Once branches are established and channels are smooth, we can then gradually expand to all directions." "May I ask, how should this gradual approach be implemented?" Gao Shiming leaned forward slightly, adopting an attentive posture. "I humbly request Your Excellency Shen's guidance."

"My approach is to proceed in two steps. First, geographically, start with the capital, then the surrounding counties; second, in terms of tax categories, begin with commercial taxes and miscellaneous levies, then summer and autumn taxes," Shen Guangzuo explained, rubbing his temples which throbbed slightly from exhaustion.
"The so-called 'first the capital, then the surrounding counties' means that the tax silver to invoice reform was first implemented in the capital. Once the capital was running smoothly, it was gradually extended to the five prefectures and twenty-two counties under the jurisdiction of Shuntian Prefecture. As for 'first commercial taxes and miscellaneous taxes, then summer taxes and autumn grain taxes' means that the reform was first implemented on commercial taxes and miscellaneous taxes, which could be collected directly. Once the merchants and people were gradually accustomed to it, it was then extended to the summer and autumn regular taxes."

"First the capital, then the surrounding counties. First commercial taxes and miscellaneous levies, then summer taxes and autumn grain." Gao Shiming nodded to himself. "I understand your approach, but how do we implement it in detail?"

Shen Guangzuo picked up his teacup, took a sip of warm tea to moisten his slightly dry throat, and continued, "For example, starting as early as next month, the Shuntian Prefecture can begin collecting silver notes in the capital, but the scope will be limited to commercial taxes and miscellaneous taxes such as corvée labor tax, gate tax, shop tax, customs duty, and salt tax. The prefectures and counties under the jurisdiction of Shuntian Prefecture will remain unchanged for the time being, and local governments will still be allowed to collect cash."

"Once your bank's branches in various prefectures and counties have been established and the business is stable, my Shuntian Prefecture will order the prefectural and county governments to follow the example of the capital and implement the conversion of taxes into banknotes, which is limited to commercial taxes and miscellaneous taxes. In time, as the people and merchants gradually become accustomed to the convenience of banknotes and their circulation in the market is unimpeded, the policy of converting taxes into banknotes will then be extended to the summer and autumn taxes."

Gao Shiming pondered for a moment, then uttered a single phrase: "Given time. May I ask, Lord Shen, how long do you intend to grant this 'time'? Is there a set timeframe?"

Gao Shiming's tone, which seemed to carry a hint of interrogation, made the physically and mentally exhausted Shen Guangzu slightly displeased. His voice was a little deeper: "Autumn grain. If your bank can complete the establishment of branches in various prefectures and counties before collecting the autumn grain, and ensure that payments are not a problem, then Shuntian Prefecture can also begin to cooperate and try to change this year's regular autumn grain tax into a ticket tax."

"Autumn grain," Gao Shiming said after a moment's thought, "So, this year's summer tax will still be levied in cash?"

"It's not that the tax is still being levied; the summer taxes for this year have already been collected from all the prefectures and counties. It's just that they haven't been transported to the capital yet." Shen Guangzuo exhaled a breath of stale air and shook his head, saying, "Talking about changing the tax at this time will only create more trouble."

Gao Shiming thought for a moment, then his eyes lit up: "Lord Shen, I have an idea, I wonder if it's feasible?"

"Please speak, Eunuch Gao." Shen Guangzu couldn't help but frown slightly, but he still maintained basic politeness on his face.

“Since the local government has already collected the summer tax, it’s impossible for them to return it and make the people pay it again,” Gao Shiming explained. “But before the tax money is transported to the Ministry, wouldn’t it be better to take it to the bank and exchange it for banknotes?”

Shen Guangzuo was taken aback upon hearing this and asked in return, "Does Eunuch Gao mean that the yamen of each prefecture and county should transport the collected summer tax in cash to the local or neighboring prefecture and county branches to exchange it for banknotes, and then send the banknotes to the Shuntian Prefecture? After receiving the banknotes from each prefecture and county, the prefecture and county should then forward them to the Ministry?"

“That’s right! That’s exactly what I meant.” Gao Shiming nodded with a smile. Then, as if he had thought of something, he added, “Furthermore, in places like Zhuozhou and Bazhou, where there are no branches yet, the prefectural offices could handle it, exchanging the received silver into banknotes and then submitting them to the Ministry. In this way, the Ministry of Revenue would receive only brand-new banknotes.” As he spoke, he turned to look at Wang Yingjiao, “which would be perfect for paying the salaries of officials in the capital.”

Wang Yingjiao did not speak up as Gao Shiming had expected; he simply smiled slightly, neither agreeing nor disagreeing.

"Heh. Following Eunuch Gao's suggestion to extend this further," Shen Guangzuo snorted and countered, "Can my Shuntian Prefecture and even the yamen of various prefectures and counties still collect cash as before, only needing to exchange the collected cash for banknotes before finally submitting it to the Ministry? And if we extend this further, can all the two capitals and thirteen provinces of my Great Ming follow this practice?"

Gao Shiming was speechless at Shen Guangzuo's counter-question. His suggestion was merely a hasty and expedient measure to gain favor with superiors. Shen Guangzuo had twice extended the idea to him, making it a national precedent, and he really couldn't agree to it.

Ultimately, the head office only tasked him with coordinating the tax-to-invoice policy on behalf of the bank. Looking further up, the emperor's decree to the bank was simply the four words "tax-to-invoice conversion." The emperor didn't give the head office any specific instructions on how to implement the conversion, nor did the head office provide any guidance.

Even if Gao Shiming didn't know the Emperor's intentions, he was certain that Shen Guangzuo's extension was problematic. This was tantamount to tacitly allowing local authorities to continue collecting taxes based on cash, only exchanging it at the very last stage. This was definitely not the Emperor's original intention.

Gao Shiming couldn't follow Shen Guangzuo's line of thought, nor did he want to give up the "Xia Tax Reform" achievement that would make him look bad. So he just stood there, speechless for a long time.

Wang Yingjiao observed Gao Shiming out of the corner of his eye for a while. Seeing his embarrassed expression and hesitant words, he roughly understood that the bank probably hadn't prepared a complete and meticulous strategy yet.

"Ahem." Wang Yingjiao cleared his throat, breaking the slightly awkward silence. "The conversion of tax silver into invoices concerns the national economy and is of utmost importance. Such a major matter cannot be settled in just one or two consultations. There is still a long way to go. Even the summer tax will not be delivered to the capital until the middle of the month. Let's stop here for today."

He first looked at Shen Guangzuo, "After Yanfu returns, he might as well convene all the officials in the department and, based on today's discussion, draft a detailed and step-by-step implementation plan." Then, he turned his gaze to Gao Shiming, "As for the banks, I also ask Eunuch Gao to urge each branch to carefully check the reserves of silver and banknotes to ensure that there are sufficient reserves to meet the needs of exchange. In addition, I hope that Eunuch Gao can coordinate as soon as possible a detailed plan and schedule for the existing and planned branches within the jurisdiction of Shuntian Prefecture, and submit it to the Ministry of Revenue and Shuntian Prefecture for reference so that they can make coordinated arrangements." After saying this, he looked away and picked up the teacup beside him, "As for the Ministry of Revenue, we will submit a memorial on the matter of fire loss relief that we just discussed, and request the Emperor's decision. What do you two think?"

(End of this chapter)