My Portable Ming Dynasty

Chapter 216 Persuading Zhang Juzheng

Upon hearing Su Ze's serious tone, Wei Yun said solemnly, "Please speak, General Su."

Su Ze said:

"I intend to advise Grand Secretary Zhang to establish a special agency within the Ministry of Revenue to handle commercial taxes for Shuntian Prefecture."

When Su Ze got to this point, his meaning was quite clear: he was asking Wei Yun if he was interested in the position.

Wei Yun was indeed tempted.

Wei Yun was a typical example of an official who was capable but lacked formal education.

Wei Yun's ranking in the imperial examination was low, and he worked his way up to the position of principal officer in the Ministry of Revenue step by step.

However, it's difficult to advance further from this position.

Generally, only by seeking an external appointment and achieving results during that appointment can one break through the restrictions and enter the ranks of mid-level officials.

However, the risks of being appointed to a post outside the capital are also very high. Not to mention that one cannot control the position, it is hard to say whether one can achieve results after taking office. If one encounters natural disasters or man-made calamities, one may even be punished and then never be able to return to the capital.

This is why most officials would rather stay in the capital than be promoted.

Su Ze acknowledged Wei Yun's abilities, so he offered his terms.

This new department is probably just a temporary one, attached to a certain Qingli Division under the Ministry of Revenue, but Su Ze recommended Wei Yun to be its head.

If this department responsible for collecting commercial taxes for Shuntian Prefecture really achieves results, then it will all be Wei Yun's achievement, and he can be promoted as a result.

Staying in the capital and remaining affiliated with the Ministry of Revenue, doing similar financial and tax work as before, naturally tempted Wei Yun.

"If Su Zhonglang has any orders, I, Wei, will obey."

Su Ze nodded, then left the Shandong Provincial Administration Office and headed towards Zhang Juzheng's residence.
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After the emperor personally confirmed that Zhang Juzheng's son had not committed any fraud, he issued an edict to comfort Zhang Juzheng, who immediately returned to the court.

The first thing Zhang Juzheng did upon returning to the court was, naturally, to purge Ding Jingxuan.

Given Zhang Juzheng's control over the Ministry of Revenue, he quickly investigated Ding Jingxuan's problems, and then officials under Zhang Juzheng took action.

However, Zhang Juzheng never expected that Ding Jingxuan would be so audacious as to embezzle even the emperor's gold and silver.

What troubled him even more was that the Ministry of Revenue, which he was in charge of, had such a large corrupt official.

This was something that gave Zhang Juzheng an even bigger headache than Ding Jingxuan being Gao Gong's man.

There was no way around it; the Ming Dynasty's finances were simply in a state of chaos.

Zhang Juzheng also felt a sense of urgency, as well as the foresight of Su Ze in requesting the compilation of the Ming Dynasty's accounting records.

To carry out fiscal reform, it is necessary to clarify the accounts. Currently, the Ming Dynasty's finances are a mess, with countless corrupt officials like Ding Jingxuan infiltrating them and embezzling a great deal of the people's hard-earned money.

Therefore, Zhang Juzheng did not immediately return to work at the cabinet, but instead went back to the Ministry of Revenue to take charge of compiling the accounting records.

Upon hearing that Su Ze was requesting an audience, Zhang Juzheng put aside his work and received Su Ze at his official residence.

Zhang Juzheng put down the memorial drafted by Su Ze and looked at Su Ze, asking:

"What does your master think?"

Zhang Juzheng looked at Su Ze, and unknowingly, Su Ze had become the link between him and Gao Gong.

Especially after the Ding Jingxuan incident, Zhang Juzheng removed the people Gao Gong had placed in the Ministry of Revenue, and this time Gao Gong did not take advantage of the situation.

But what about next time?

Perhaps Gao Gong didn't make a move this time because he felt he couldn't bring himself down?

The officialdom is a dark forest, and the seeds of doubt will only grow bigger and bigger.

If it were me, and I had a chance to drive Gao Gong away, would I give it up?
As a Grand Secretary, aside from official communications, there would be no intimate conversations in private.

This is when Su Ze's importance became apparent.

His abilities are undeniable, a fact acknowledged by everyone from the emperor to the officials.

As the most outstanding disciple of Gao Gong, Gao Gong would not use Su Ze as a trap.

Political framing usually involves minor figures; who would use their own faction's rising stars to fight each other?

Therefore, Zhang Juzheng did not need to worry that Su Ze would set traps for him in the civil service examination.

Of course, this is also due to Su Ze's persona. Although he is Gao Gong's disciple, he is portrayed as a loyal minister who does not submit to Gao Gong in everything. Many national policies are also advocated and promoted by himself.

Zhang Juzheng suddenly realized that Su Ze seemed to be a Grand Secretary as well.

Suppressing these chaotic thoughts, Zhang Juzheng carefully considered the matter of the civil service examination.

How are commercial taxes collected?

Commercial tax was also a headache for Zhang Juzheng. Ever since Su Ze proposed commercial tax at the Lingji Palace Conference, there has been a lot of discussion about it among the people. The temporary plan put forward by the cabinet and the Ministry of Revenue was to levy a maritime tax on merchants entering and leaving ports.

The maritime tax had little impact on ordinary people; it was levied primarily on merchants engaged in maritime trade.

However, the maritime trade tax went into the emperor's private treasury, and the Ministry of Revenue's profit came from the fire loss revenue of the coins minted in Dengzhou and Laizhou.

Of course, this cost was also considerable, especially since the maritime tax had to be collected in silver dollars, which kept the two workshops of the Dengzhou-Laizhou Mint working day and night to produce a large number of silver dollars and brass coins.

However, according to Su Ze's theory, merchants are not limited to maritime merchants; other merchants are also subject to taxes.

Su Ze said:

"For businesses that operate while sitting still, a fixed quota should still be set."

"quota?"

Su Ze said:

"The monthly commercial tax is determined based on the industry and the size of the shop."

Zhang Juzheng immediately understood what Su Ze meant.

In fact, the earliest commercial taxes in any country were fixed-amount taxes.

Before Su Ze's time travel, the tax bureau levied a fixed amount on individual business owners who lacked the ability to keep accounts.

Su Ze certainly knew about more advanced methods of tax collection, but the Ming Dynasty also needed to meet those conditions.

Fixed-amount collection is the best solution that can be thought of. Although there is a lot of corruption and rent-seeking in fixed-amount collection, and there are many opportunities for tax avoidance, at present, it is better to collect commercial taxes than anything else.

Zhang Juzheng nodded, and Su Ze proposed a solution. The matter of determining the tax rates for each industry was now the responsibility of the Ministry of Revenue.

"Isn't it unfair to only tax merchants who stay at home?"

Su Ze said:

"For traveling merchants, taxes should be levied on their goods at the same rate as the customs duties on paper money, at the main entrances and exits through Shuntian Prefecture."

Customs duty was a transit tax levied by the Ming Dynasty.

Customs offices were set up at key points along the Grand Canal to levy taxes on passing merchant ships.

Zhang Juzheng was not surprised that Su Ze could think of the customs duty, because the largest customs duty in the Ming Dynasty was located at Hushu Pass in Suzhou Prefecture.

Hushu Pass controls trade along the Taihu Lake and the Yangtze River, and is the customs office that collects the most taxes in the country.

Of course, the tax rate collected by the Ming Dynasty's customs was very low. Just like with ship permits, it was generally levied according to the size of the ship. The annual customs revenue was only a few hundred thousand taels of silver, which was a drop in the ocean in the Ming Dynasty's fiscal revenue.

Su Ze's idea was the same as the maritime tax: to change the simple method of levying taxes based on the size of the ship to one based on the value of the goods.

Zhang Juzheng lowered his head and pondered for a long time before saying, "It seems that the solution still lies in improving the administration of officials."

Zhang Juzheng also understood why Su Ze wanted to promote the civil service examination.

Whether it's customs duties in paper form or fixed-amount commercial taxes, both require a large number of officials.

These officials also needed to be literate and arithmetic, and able to read the imperial edicts to the people. This was a higher requirement than that of scribes working in government offices today, who only needed to complete written work and were not required to be mathematically literate.

Zhang Juzheng said, "Speak your mind, don't hold back."

Su Ze said:

"First, the civil service examination selects candidates from among the scholars of Shuntian Prefecture, twice a year."

"The difficulty is lower than the county examination, but it tests basic arithmetic skills, similar to the Ming Suan Ke (明算科) of the Song Dynasty's imperial examinations."

"Those who already hold the title of Xiucai or are officials in the court can be exempted from the exam, but they must study for half a year in the official course under the Imperial Academy, together with the students who have passed the exam."

"The main focus of the past six months has been on learning about official documents and basic arithmetic. There will be a final exam after six months. If you pass, you will become a formal student of the Ministry of Personnel and will be assigned by the Ministry of Personnel to various government offices under Shuntian Prefecture."

Zhang Juzheng nodded in agreement. Su Ze's approach was very much in line with his style—thoughtful and far-sighted.

If this can be implemented, a more professional team of officials can be quickly assembled.

Su Ze said again:
"Officials were also divided into six grades, with their salaries increasing in that order."

"The assessment is conducted every three years, just like the imperial examination. Those who are in the lower ranks are reprimanded and have their salaries reduced, those who are in the middle ranks are promoted according to regulations, and those who are in the upper ranks are promoted beyond their rank and promoted once."

Su Ze took a breath and said:

“When a clerk is promoted to the first rank, after his/her superior issues an examination report and the Ministry of Personnel and the Six Ministries and the Censorate have reviewed it, he/she can be included in the official ranks.”

These are all things that Su Ze did not include in his memorial.

The reason it wasn't included in the memorial was naturally because the resistance to this clause was too great, and Su Ze's current prestige wasn't enough to force it through.

Zhang Juzheng asked:
"Your master also agrees with these?"

Su Ze shook his head and said:

“Grand Secretary Zhang, I haven’t told Prime Minister Shi these things yet.”

Su Ze then added:
"I haven't told anyone else either."

Zhang Juzheng looked at Su Ze with a scrutinizing gaze, and it took him a long time to look away. But Su Ze noticed that the corners of his mouth seemed to be slightly upturned.

Zhang Juzheng said:
“You are right to be cautious. The separation of officials from their posts is an ancestral system. Do you know how many scholars and officials will rebel if this idea is revealed?”

Su Ze said helplessly:
"Grand Secretary Zhang, you know that this is just giving the clerks a glimmer of hope."

Zhang Juzheng nodded, and Su Ze divided the officials into six grades, with promotions every three years. Even if someone performed well, they could only skip one grade.

Even the most capable clerks had to serve three terms, which was nine years, before they could transition from clerks to officials.

If you only get average evaluation results every time, you have to serve six terms, which is eighteen years, before you have a chance.

In contrast, anyone who passed the imperial examination could enter officialdom, and after passing the examination once or twice, they could obtain official status.

As Su Ze said, this was merely giving the clerks something to look forward to.

This is actually similar to many junior staff members in later generations. Everyone knows that there is no chance of promotion in their lives, but at least in name everyone has a channel for advancement.

Having a path to advancement not only means a brighter future for an individual, but also means that the insurmountable barrier between officials and clerks has been broken down.

Those officials will then hold themselves to the same moral standards as officials, and once these new officials begin to change in this way, the public's evaluation of them will also change.

No one is born to be a lowly person. Most people would find it hard to feel at ease even if they were bad. To be a thoroughly bad person is, in a sense, a rare talent.

If officials have a stable job, a path to promotion, and a respectable, or at least not despised, public opinion, they can achieve success.

Most people will then keep to their proper place and will not do anything heinous.

If these new officials are basically competent, then commercial taxes might actually be collected.

Zhang Juzheng's gaze toward Su Ze became even more fervent.

Zhang Juzheng was committed to reform.

Moreover, compared to the cost-cutting policies advocated by most civil officials, Zhang Juzheng advocated increasing revenue.

The imperial court always needs to spend money to get things done.

Without a purse in hand, nothing can be accomplished; this was a truth that Zhang Juzheng understood long ago.

Zhang Juzheng did not oppose levying commercial taxes, and Su Ze's theory of the four classes of morality also explained that if merchants wanted to improve their social status and change social prejudices, they should take on their responsibilities.

The area around Shuntian Prefecture was a commercial hub, and it was only natural for merchants to pay taxes.

Su Ze chose Shuntian Prefecture because there were many scholars there, giving him the opportunity to build a new team of officials.

Perhaps it really is feasible?
Zhang Juzheng said:
"We can start the civil service examination first, but let's not talk about transferring clerks to official positions yet."

Su Ze nodded. This was the most controversial part of the reform, and it was indeed unnecessary to bring it up at the beginning.

"Six months is too long. We'll give the first batch of clerks three months to get them a basic understanding of the court's laws and regulations, and to be able to write and calculate. The rest can be trained during the winter off-season."

Su Ze also thought Zhang Juzheng's method was appropriate. Wasn't this just the "initial training" plus "daily rotation training" from his previous life?

It seems more efficient to lay a solid foundation in three months and then conduct intensive business training after working for a while.

As expected of Zhang Juzheng.

Zhang Juzheng added:

"The Ministry of Revenue paid for the first batch of funds to train the clerks and the first six months' salary for them."

Su Ze was overjoyed; he had come to Zhang Juzheng specifically for this start-up capital.

No matter how eloquently he boasts, holding the civil service examination and training officials both require money.

Without this money, new officials cannot be trained, and commercial taxes cannot be collected.

This is a chicken-and-egg problem; you need to secure initial funding before you can keep running.

Zhang Juzheng added, "However, I also have conditions. If the commercial tax of Shuntian Prefecture cannot be collected within six months, the Ministry of Revenue will not pay this sum of money."

Su Ze nodded and said, "This humble official is willing to sign a pledge, with a time limit of six months."

Zhang Juzheng nodded in satisfaction, and Su Ze then took the opportunity to say:

“Grand Secretary Zhang, I suggest that a Commercial Tax Bureau be set up under the Shandong Provincial Administration of Taxation to be specifically responsible for the commercial taxes of Shuntian Prefecture.”

Zhang Juzheng nodded, agreeing that commercial taxes indeed needed a dedicated agency. He said:

"Then who do you think is suitable to be the head of this tax bureau?"

"I recommend Wei Yun, the chief clerk of the Shandong Division."

"can."

Emerging from the Ministry of Revenue, Su Ze felt refreshed. He had already passed all the stages of the civil service examination; the next step was to submit his memorial!

"A petition to establish an examination system for selecting talented individuals."

(End of this chapter)