My Portable Ming Dynasty

Chapter 349 "Memorial Requesting the Establishment of a Public-Private Consultation System"

After Gao Gong finished reading Su Ze's memorial, he immediately instructed the Secretariat Drafter to pass it on to the cabinet ministers, then cleared his throat and said:
"Gentlemen, let's discuss Su Zilin's memorial."

The Grand Secretaries were all experts in government affairs, able to read ten lines at a glance. Su Ze's memorial was also very simple, and they finished reading it quickly.

Simply put, after the establishment of the Woyin Company, Su Ze suggested that in order to ensure the smooth flow of the sea route to Japan, the Ming Dynasty navy should be dispatched to patrol.

There are generally two routes to Ryukyu: the northern route and the southern route.

The southern route starts from the southeast coast, reaches Ryukyu, and then continues north.

The northern route first reaches the North Korean coast, and then circles the Korean Peninsula along the North Korean coastline.

Both routes were well-established, but with the flourishing trade between the Ming Dynasty, Korea, and Japan, many pirates emerged and occupied the trade routes.

These pirates actually came from a very diverse background, including people from the Ming Dynasty, Koreans, Japanese, and even pirates from Southeast Asia.

However, since both the Ming Dynasty and Korea would crack down on pirates, but Japan was still in the midst of a civil war, many pirates would set up their strongholds in Japan.

In fact, the composition of the Japanese pirates during the Jiajing era was also like this.

For example, the most famous pirate, Wang Zhi, was a man from the Ming Dynasty. He started his career by smuggling, "selling prohibited goods such as saltpeter, silk, and cotton to Japan, Siam, and other Western countries."

Wang Zhi was introduced by Uku Morisada and accepted an invitation from Matsuura Takanobu, a daimyo of the Sengoku period in Japan, to engage in maritime trade based on Hirado Island off the coast of Kyushu.

The situation is now similar across the seas of Northeast Asia, with various countries sending people and Japanese daimyo providing strongholds and channels for selling stolen goods, leading to the rise of a new Wokou (Japanese pirate) force.

For example, last month Wang Shizhen inspected the naval port on Jeju Island and, in his memorial to the emperor, also described the situation around Jeju Island in Korea.

The request from the King of Joseon to the Ming Dynasty for help was indeed genuine. Because the eastern coastal areas of Joseon were separated from Japan by sea, many Japanese pirates had occupied islands that Joseon could not control and used these islands as bases to attack Joseon's coast.

These Japanese pirates would also attack merchant ships, and the number of pirate attacks reported by Ming Dynasty merchants was increasing year by year.

Therefore, merchant ships built in Dengzhou and Laizhou now have to have gun emplacements, and they must have firearms such as muskets when going to sea.

In his memorial to the throne, Wang Shizhen also expressed his concern about the current security situation in the waters of Northeast Asia. He worried that another Japanese pirate leader like Wang Zhi would emerge, unify these scattered pirate forces, and repeat the mistakes of the Southeast Japanese pirate raids.

Therefore, in his memorial, Wang Shizhen also agreed that after the Ming Dynasty's navy was stationed at the Jeju Island naval port, it would assist Korea in fighting the surrounding Japanese pirates. After all, if the Japanese pirates were left unattended, it would be a case of raising a tiger to cause trouble, and Korea would only have a few copper coins to rob.
After Gao Gong reformed the cabinet, he would present important memorials to the cabinet ministers for discussion.

After the Grand Secretaries had finished reading Su Ze's memorial, Gao Gong said:
"I object to Su Zilin's memorial."

Hearing this, the cabinet ministers were all somewhat surprised.

Su Ze was Gao Gong's favorite student, a fact known to everyone. In the past, when Su Ze submitted memorials, Gao Gong rarely publicly opposed him, even if he had different opinions.

Gao Gong said:

"The Japanese Silver Trading Company was established with funds raised by the public, while the Imperial Navy is a public asset. How can we use public assets for personal gain?"

Upon hearing this, the cabinet ministers nodded in agreement, agreeing that this was indeed the case.

Zhang Juzheng then said:
"The last time the navy patrolled the South Seas, it cost nearly 100,000 taels of silver, and both soldiers and warships suffered damage. Just as Chief Minister Gao said, the navy's patrol of the East Seas is suspected of enriching the public at the expense of the private."

However, Zhao Zhenji said:

"I disagree."

"The imperial navy is on patrol, not to escort the Japanese silver trading company."

"Does this mean that if the Japanese silver company doesn't go to Japan, our Ming Dynasty navy won't patrol?"

"The Japanese pirates are rampant in the East. If we don't first suppress and pacify some of them, what if they become a giant pirate like those of the late emperor?"

Zhao Zhenji gave his unequivocal support, and Gao Gong's gaze then turned to Lei Li and Yin Shidan.

Lei Li declined to comment, citing his lack of knowledge about maritime affairs. Yin Shidan offered a similar opinion to Gao Gong, suggesting that such a precedent should not be set.

When the cabinet could not reach a consensus, Gao Gong said:

"Then let each of us draft our own proposals."

When a consensus could not be reached on a memorial, the cabinet ministers would draft their own proposals. Once everyone had finished writing their proposals, Gao Gong would hand them over to the secretary of the Secretariat, who would then send them to the Directorate of Ceremonial Affairs as quickly as possible.
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Since the cabinet ministers could not reach a consensus, the Directorate of Ceremonial Affairs during the Longqing reign did not dare to make a decision on its own, so it was submitted to the emperor.

Emperor Longqing was also somewhat troubled by this memorial, which was opposed by most of the cabinet, and sent it to the censors for further discussion.

However, this time the Six Ministries and the Censorate exercised great restraint.

Perhaps because they were traumatized by Su Ze, the Six Ministries and the Censorate did not make any moral criticisms this time, but instead discussed the matter objectively.

However, the majority of voices are still against it.

On July 25th, the Longqing Emperor expanded the scope of the matter again, sending Su Ze's memorial to the relevant government offices, and even publishing Su Ze's memorial in the newspapers.

This time, the uproar was even greater.

The most vehement opposition came from the *Xin Yuefu Bao* newspaper.

Editor-in-chief He Xinyin personally wrote an article criticizing Su Ze, pointing out that this was an act of "harming the court for personal gain".

He Xinyin argued that the profits of the Japanese Silver Company were ultimately distributed as dividends to the shareholders, which was equivalent to the imperial court distributing money to these shareholders.

He Xinyin also wrote with concern:
"The taxes levied by the imperial court are taken from the people and should be used for the people, so as to equalize the rich and the poor and help the common people."

"If this public resource is used for private gain, enriching the rich and impoverishing the poor, how can the foundation of the nation be secure? This is not a sustainable solution."

However, this time the Commercial Daily clearly sided with Su Ze, and its editor-in-chief, Fan Kuan, also wrote an article stating:

"I cannot agree with your concerns about 'profiting at the expense of the public'! Aren't the shareholders of the Japanese Silver Company also citizens of our Great Ming?"

"We should know that when sea routes are open, all goods will flow smoothly, and when all industries prosper, all taxes will be sufficient. Now, we are exchanging the small amount of money from the naval escort for the huge profits of Japanese silver, and we will also eliminate the threat of Wang Zhi and his ilk. This is truly using the public resources of the court to protect the public interest of the nation!"

Shen Yiguan, who had just returned to the capital, saw the news report in the newspaper while on his carriage entering the city. He rushed to the newspaper office as soon as he got off the carriage.

"Brother Yifu, where is Brother Zilin?"

"Brother Jianwu has returned from Korea?"

Luo Wanhua was somewhat pleased. When Shen Yiguan accompanied Wang Shizhen on his mission, the newspaper office became much quieter.

"Brother Yifu, have you read Brother Zilin's memorial?"

Luo Wanhua sighed and said, "When Brother Zilin submitted his memorial, I also advised him that it was inappropriate, but Brother Zilin still insisted on submitting it."

"And what about Brother Zilin?"

"They went to the East Palace, supposedly to discuss the formation of a board of directors for the Japanese Silver Company."

Shen Yiguan said:
"We have just invested in and purchased shares in the Japanese Silver Company. It is precisely the time when we should avoid suspicion. Brother Zilin, isn't this memorial an opportunity to attack us?"

Luo Wanhua was also taken aback.

When the Woyin Company was established, Su Ze encouraged his friends to subscribe to shares.

Luo Wanhua also used his savings to buy some stocks. Even Shen Yiguan, who was not in the capital at the time, had his wife Zhao Lingxian help him by buying stocks for Shen Yiguan's wife, Du. The outer court hasn't attacked this point yet, but if public opinion is allowed to ferment, officials and censors will inevitably use it to attack Su Ze, which will indeed affect Su Ze's reputation.

No wonder Shen Yiguan came to the newspaper office in such a hurry.

"Brother Jianwu, what should we do now?"

Shen Yiguan said:
"I wonder if Brother Zilin has any backup plans."
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In the Eastern Palace.

Su Ze was explaining the organizational structure of the Japanese Silver Company to Li Wenquan.

“The Japanese silver company’s share issuance is different from that of the railway company. The railway company’s total share capital is only 30,000 silver dollars, with 100 silver dollars per share, which means there are 300 shareholders. Therefore, the railway company can allow all shareholders to participate in the board of directors.”

"But the Japanese Silver Company is different. Its shares are dispersed. If all the shareholders who invested could participate in the management of the company, wouldn't that be chaos?"

Li Wenquan nodded in deep agreement.

Li Wenquan not only invested his own money, but also used funds from the Penghu Colonization Merchants Group to invest. In addition, he also held shares in the Eastern Palace and the Wuqing Marquis's Mansion on behalf of others.

As the initiator of the Woyin Company and a major shareholder of the company, Li Wenquan became the chairman of the preparatory committee for the Woyin Company.

Su Ze said:

"Therefore, a standard needs to be set, with a certain share capital as a threshold. Those with more than this share capital can become members of the board of directors and be responsible for the company's decision-making."

Li Wenquan nodded.

Su Ze said again:
"However, the daily operations of the Woyin Company also require professionals. Therefore, when the board of directors makes decisions on major issues of the company, they still need to hire professional talents to manage the specific operations of the company."

Li Wenquan nodded again.

Su Ze continued:

"In addition, there are several other points: incumbent officials cannot serve as directors, but can only receive dividends, in order to prevent collusion between officials and businessmen."

"Although ordinary shareholders cannot attend board meetings, the board should disclose the company's operating status to all shareholders every six months so that shareholders can monitor the company's situation."

Li Wenquan nodded again.

Managing such a large sum of money put Li Wenquan under tremendous pressure, but Su Ze's method finally gave him some direction.

Little Fatty Jun listened with great interest. This management style, which aligns authority and responsibility, is completely different from political management. However, even the Crown Prince, who had managed the Eastern Palace shops, could learn something from it.

After he finished speaking, Li Wenquan added with concern:
"Su Hanlin, the memorial you submitted a while ago requesting that the navy patrol the Eastern Ocean has not been approved by His Majesty yet. If the court does not send the navy to patrol, the operating costs of the Japanese Silver Company will be much higher."

Li Wenquan, as the chairman of the preparatory committee, also estimated the costs of the Japanese silver trade.

If the shipping routes to Japan are disrupted, operating costs will increase, which will naturally reduce the profits of the Japanese silver company.

With such a large amount of funds at his disposal, Li Wenquan, the chairman of the preparatory committee, also faced enormous pressure.

If a franchised business can still lose money, wouldn't the shareholders be going to dismantle it?
Su Ze said:

"It's not always possible for Su to get things done when he submits a memorial."

Xiao Pangjun and Li Wenquan both stared intently at Su Ze.

Didn't you submit two memorials in one month, and both were approved?

Why are you being so humble now?

Su Ze said:

Whether this matter can be accomplished depends on the Crown Prince.

"I?"

Li Wenquan was taken aback. The Earl of Wuqing was a title conferred by the maternal relatives of the emperor, and he was ranked low among the powerful and influential people in the capital.

What ability did he have to influence the decisions of the Ming Dynasty court?

Su Ze took out a memorial and said:
"This is what I'm going to present to the emperor."

"Memorial Requesting the Establishment of a Public-Private Consultation System"

After receiving the memorial, the Crown Prince and Li Wenquan read it aloud.

"I have heard that the court is debating the matter of a cruise to the East, and the ministers are still undecided."

"In my opinion, the reason for the dispute is that the interests of the court and the Japanese silver company are not clear, and the boundary between public and private is unclear."

"First, the real issue is the lack of coordination between public and private rights and responsibilities. The company uses the capital of merchants to expand sea routes and exchange money with Japanese pirates, which benefits the shareholders and the national treasury. However, merchant ships are frequently plundered by Japanese pirates, and merchant ships from Dengzhou and Laizhou are equipped with cannons for self-protection, which is not a long-term solution. Naval patrols are indeed a public service, but protecting trade routes is protecting tax revenue, and pacifying the sea frontier is stabilizing the nation."

"If we reject their requests outright on the grounds of 'misuse of public resources,' we fear that the Japanese pirates will take advantage of the chaos in Japan to grow stronger, eventually becoming a major threat to the Jiajing Emperor and wasting public funds. Moreover, with trade routes blocked and silver not being transported, how can we expect to generate tax revenue?"

"Second, please establish a system of consultation and clarify the distinction between public and private."

"I request the establishment of the 'Eastern Ocean Maritime Affairs Consultative Council.' The government shall appoint specially selected officials, including censors from the Six Ministries and the Censorate, as well as officials from the Directorate of Ceremonial. The private sector, the Japanese Silver Company, shall appoint two to three non-official shareholder representatives. Together, we shall discuss patrol strategies, the sharing of military expenses, weigh the pros and cons, and discuss the dangers of the shipping routes and the commercial and national benefits."

"The issues under discussion include how much military expenditure is needed, how much the company can afford, or whether additional escort taxes should be levied to supplement national funds, and the allocation of responsibility for suppressing and pacifying pirates, so as to avoid nurturing a future threat."

"After the discussion, a joint proposal was drafted and submitted to the Emperor for review."

"I humbly beseech Your Majesty to accept my humble opinion and open the door to consultation. In this way, the national economy, the people's livelihood, and the maritime borders can all be benefited, and the mistakes of the Jiajing era's Japanese pirate raids can be avoided!"

After reading it, Li Wenquan said somewhat nervously:
"Does Su Hanlin mean to have the Japanese silver company negotiate with the imperial court?"

Su Ze nodded, but Li Wenquan felt less confident after thinking about it.

Su Ze said seriously:

"Your Highness, your negotiation with the imperial court on behalf of the Woyin Company is not a personal matter, but rather represents the interests of all the shareholders of the Woyin Company!"

"The shareholders of the Japanese Silver Company are also subjects of the Ming Dynasty. It is only natural that the court should discuss matters when the subjects have requests."

"Even a local official should listen to the opinions of all parties before making a judgment, right?"

"Whether the court approves or disapproves, it can be negotiated. Even if the Japanese silver company provides silver to aid the army, and requests the court to send a navy to patrol the East, that can be discussed."

Li Wenquan thought about it and agreed that Su Ze's words made sense.

Isn't it just negotiation?

When he was colonizing Penghu, didn't he often negotiate?
However, this time the negotiating partner has changed to the imperial court, so it doesn't seem like there's anything wrong with that?
At this moment, Little Fatty Jun said again, "Master Su, could I also listen in?"

Seeing the expectant look in Xiaopang Jun's eyes, Su Ze had no choice but to agree.

Little Fatty Jun said to Li Wenquan:
"Uncle, you'd better do well! I'll cheer you on!"

Su Ze returned to his office in the Imperial Household Department, added a section about inviting the Crown Prince to listen in, and then stuffed the memorial into the "Portable Ming Dynasty" app.

(End of this chapter)