Great Song Dynasty Writer

Chapter 161 "On the Currency of Yelang" [Seeking monthly votes!]

On the third day, Lu Beigu woke up very early.

He leaned against the wall, forcibly suppressing all distracting thoughts into the depths of his mind.

His thoughts sank into the darkness. He thought of the gains and losses of the Qingli New Policies analyzed at the solemn lecture, the advantages and disadvantages of the Luzhou salt wells, the rise and fall of water transport, and the flames of war in the Northwest.

After an unknown amount of time, the sound of the gong, symbolizing the turning of the gears of fate, rang out once again.

The exam papers for policy essays were distributed. Because there was one essay topic and five policy questions, they were thicker than the previous ones.

Before he could even look at the five current affairs policies, his gaze first fell on the topic of "discussion".

With just one glance, Lu Beigu's pupils suddenly contracted, and his fingers, which were gripping the test paper, almost dropped it.

"On the Currency of Yelang".

The ink characters on the scroll are clear, yet they carry a chilling absurdity.

"Some people suggest that we could emulate the ancient Yelang currency system to alleviate the currency shortage. Is this a feasible idea?"

—Yelang currency?!
A sense of absurdity rushed to his head. What kind of historical analysis was this?!

Yelang, that small kingdom long since vanished into the miasma of the southwest, leaving only the anecdote of "Yelang's arrogance"? What about its currency system? Historical records about Yelang are scarce, let alone its economic and monetary system! This is practically a grain of sand dredged up from the vast sea of ​​history, a grain of sand almost unknown to anyone!
This isn't a test of historical knowledge; it's as if the examiners have dug an unprecedentedly deep pit in the vast expanse of old documents, waiting to see who will be lucky enough to climb out!

The pressure came like a landslide and a tsunami.

The title "On the Currency of Yelang" alone is enough to make countless people collapse on the spot.

Lu Beigu could even clearly feel a heavy atmosphere of despair permeating the examination room, like large patches of frost appearing on the ground in late autumn.

"Calm down. I must calm down first!" he told himself. "Historical arguments may be tricky, but they are still 'arguments,' they are based on reason! Although they may seem absurd, the intention of the question setter must be traceable!"

Brilliance often arises in desperate situations.

In that suffocating moment, a nearly forgotten corner of Lu Beigu's memory was suddenly illuminated.

—On the fourth floor of the state school library, there is a row of dusty annotated editions of the "Chronicles of Huayang"!

The reason why Lu Beigu saw this local history written by Chang Qu during the Eastern Jin Dynasty, which contains local history, geography, and figures of the southwest region, was because he accidentally came across an extremely obscure commentary while frantically catching up on his studies. The commentator cited the "Chronicles of Huayang," so he made a point of looking it up.

Thanks to his strong memory, the passage he had glimpsed while casually flipping through the annotated edition of "Chronicles of Huayang"—"Yelang was a remote place, with no profit in minting coins. The people exchanged salt blocks, shells, lacquerware, and cinnabar for goods. When the Han Dynasty destroyed Yelang"—flashed into his mind at that moment.

The history of the Yelang Kingdom is inextricably linked to the Han Dynasty.

During the Western Han Dynasty, the first person to make contact with the Yelang Kingdom was Tang Meng, an envoy sent by Emperor Wu of Han. After the Nanyue Kingdom was destroyed in the first year of Yuanfeng (105 BC), the Yelang Kingdom sent envoys to the Han court and was incorporated into the Zangke Commandery, but maintained actual rule. Later, towards the end of the Western Han Dynasty, the Yelang king was killed by Chen Li, the governor of Zangke, and the remaining Yelang people migrated south. During the Eastern Han Dynasty, in the first year of Yongchu (106 BC), the Yelang barbarians who had migrated south submitted to the Han court, and the Yelang Kingdom was completely destroyed.

Therefore, it is necessary to combine the contents recorded in the annotated edition of the "Chronicles of Huayang" with the history of the Yelang Kingdom and its interactions with the Han Dynasty.

The most important aspect of this historical essay is not its discussion of history, but rather its use of history to discuss the present. Therefore, the Yelang Kingdom is actually a veiled reference to present-day Sichuan.

What problems is Sichuan facing in the currency market? It's definitely the cash crunch mentioned in the question.
What is the root cause? Is it the cumbersome nature of iron coins, the outflow of copper coins, or the rampant private minting of inferior coins?
According to Lu Beigu, the problem of the shortage of money in Sichuan is manifested in the scarcity of money, which appears to be an imbalance between the high price of copper and the low price of copper, as well as the chronic problem of "stagnation in circulation".

The principle of "copper being expensive and coins being cheap" is a physical law that needs no further explanation. Iron coins, on the other hand, are heavy, making long-distance transport costly and hindering merchants from traveling. This is an obstacle to circulation.

But is the fundamental problem really these things?
Everyone knows exactly what caused this predicament.

But since it's not easy to say it outright, we can only use history to discuss the present.

Lu Beigu had no way of knowing why the question setter had this "subtle satire" mentality, but without a doubt, once he figured out these key points, he would have a clear idea of ​​how to use history to discuss the present in his essay "On the Currency of Yelang".

Once the mind is opened, the writing flows like a river.

Without the slightest hesitation, Lu Beigu didn't even bother to grind new ink. He simply picked up the leftover ink block from yesterday, poured a little water into the inkstone, and began grinding it with a steady wrist.

The ink stick rubbed against the inkstone, producing a low, continuous "shush" sound, which was particularly clear in this examination area where the heavy exam questions were almost suffocating.

He then picked up his pen and began writing this historical essay on the draft paper.

The Theory of Yelang Currency

"In the past, Yelang, relying on the strategic advantage of Zangke① and possessing the benefits of cinnabar②, saw caravans thronging the Five-Foot Road③, and rhinoceroses and elephants circulating through the Southern Yi post stations. Since the Han Dynasty opened up the borders, established prefectures and appointed officials, and initially implemented a common currency, both copper and iron were used. During the reign of Emperor Guangwu, the Wuzhu coin was recast, and all of Yelang's copper was transported to the Central Plains, leaving only iron twigs in the remote borderlands④, thus causing the trade to gradually decline."

However, the officials in charge of agriculture failed to investigate the root cause and instead minted iron coins worth ten cash to appease public resentment. The larger the coins became, the worse their quality; the higher their price, the lower their credibility. When markets opened at dawn, people would weigh the iron coins; when village wine was sold at night, people would discuss the purity of the coins. As for the rich, they hoarded copper coins to await a change in fortune, while the poor piled up iron coins and wept in the autumn wind.

A Han envoy once inspected the border and saw that the markets of Yelang were deserted. He asked an elder, "I've heard that Yelang was once prosperous, so why is there no Wu silk in the markets and no Shu brocade?" The elder replied, "Copper coins are exhausted, and iron coins are piled up like mountains. There's a saying among merchants: 'Better to cross the miasma of the Lu River than to get involved with Yelang money.'" The envoy was astonished: "Has the harm caused by iron coins reached this point?"

When asked the reason, the envoy blushed and sighed, "This is not due to the laziness of the common people, but rather the flaws in the monetary system!" He then unsheathed his sword and showed it to the crowd, saying, "This sword comes from the Imperial Workshop and can cut through the flaws of iron coins." However, when the sword cut through the iron coins, iron filings flew everywhere, but the inscriptions on the coins remained intact, and all who saw it could not help but sigh in admiration.

Alas! The Guanzi says: "Knife-shaped coins were used by the former kings to safeguard wealth, govern the people's affairs, and bring peace to the world." The essence of monetary law lies in facilitating the trade of goods throughout the world and balancing the weight of coins in all directions. Taigong established the Nine Offices system to ensure that the prices of coins from the sea and mountains were the same; Shan Mu advised King Jing to mint large coins, fearing that the balance between the old and new coins would be disrupted.

The Yelang Mountains, rich in cinnabar, and the Zhuti River, once a source of immense wealth for the southern frontier, are now plagued by harsh monetary laws. Just as Bian He, offering jade, was punished by having his foot cut off, and Sui Hou, obtaining a pearl, was devoured by a snake, the officials, instead of seeking guidance, have used iron coins to restrict these laws. How can forcibly imposing inferior currency on remote areas possibly bring peace and prosperity to the people and the nation? It is like diverting the Yuan River to irrigate parched fields; the crops wither before the water even arrives.

Those who govern wealth and power in future generations should learn from the mistakes of Yelang, understand the principles of currency, and ensure that commerce flows like the Yuan River and monetary laws remain as steadfast as the Qian Mountains. Then the common people will be truly fortunate.

(End of this chapter)