Reclaiming Wasteland: Carefree Mountain Farmer

Chapter 170 Financial Innovation
In the depths of winter, commercial taxes from various regions were delivered one after another.

Beijiwu met with various tax officials and personally verified the gold and silver that had been delivered.

Upon returning to the Mingtang, Beijiwu summoned the various tax officials and governors.

"This year's fiscal revenue is much higher than what was reported in the autumn newspapers. It will gradually arrive in Luoyang in December. This includes taxes levied on merchants from the Western Regions along the Silk Road, printing taxes, taxes on land and warehouses rented by merchants, printing taxes, medical taxes, and so on."

"This year's tax revenue is actually over 30 million taels, most of which is in copper coins. Nowadays, there is too much gold and silver, and it is difficult to store it. I plan to issue paper money, and in the future, large transactions will mainly be conducted in paper currency."

Qiao Guozhong asked, "Then how do we distinguish between real and fake?"

Arctic Martial Arts had considered this matter long ago and possesses advanced experience that many people currently lack.

"Double locking, the banknotes are made of special white paper with different markings and patterns of each bank, mainly for transactions of more than one hundred taels."

"Let's not act rashly for now. Let's first issue 100,000 one-hundred-cash banknotes to each province. That's 500,000 banknotes, which is 50,000 taels of silver. This is mainly to make it easier for artisans and farmers to carry their wages."

One hundred coins is neither a large nor a small amount; just as Beijiwu said, it's just a test of the waters with fifty thousand taels.

The crowd replied in unison, "As you command."

Qiao Guozhong suggested, "We can mix mulberry and silk into the paper, and the resulting paper will have a different feel."

How to manufacture genuine banknotes that no one can counterfeit is indeed something that requires continuous improvement.

Beijiwu said, "You should discuss with the managers of several money shops and improve printing and manufacturing technology as soon as possible."

"Now the people of Shan Nong Kingdom are all under my control. If any place is found to be privately printing paper money, the local people will supervise and report it."

"But after a few years, when the population is larger, many people will inevitably disperse from their current locations to all corners of the country. If supervision is not effective at that time, some people will take the risk of committing fraud."

"In the next few years, we will test it on a small scale first. If anyone is impersonating us, we will find them and kill them to warn the world. This time, we will treat it as a financial training exercise."

"You should also find some people to improve the manufacturing technology. Each of you should recommend three capable and dedicated individuals. This can be a family business that can be passed down through generations, guaranteeing a life of comfort and security for your descendants, without any danger."

Everyone knew this was a cushy job, and immediately said, "Thank you for your great favor, Your Majesty!"

Beijiwu then discussed with everyone the handling of gold, silver, and copper.

Gold can be kept hidden away; there is no natural depletion, as long as it is protected from theft.

The loss of silver is not significant, so we won't consider this for at least the next ten years.

The most troublesome thing was the copper coins; after a while, the string holding the coins together would rot.

Fortunately, no agricultural tax was levied, so merchants and people from all over the country exchanged their gold and silver for convenient transportation.

The main problem now is a shortage of currency, not a lack of circulation.

Most of the gold was stored in the national treasury, and after several years, the amount of gold circulating among the people was far less than before.

Gold mine output from various regions was directly deposited into the treasury, and cash payments were only made for silver and copper.

Copper coins were melted down and recast into new coins and distributed, but as the population grew, the problem wasn't that there were too many copper coins, but that there were absolutely not enough!
If ten million people each had ten thousand coins, it would have a huge impact on the Wen Dynasty's financial reserves.

There are currently no 100 billion copper coins; the total number of copper coins in storage and those on the market is only one.
In addition, many merchants and foreigners melted down local copper coins into copperware and took them away, or directly took large amounts of currency out of the country.

The metal currency system cannot support a highly commercialized economy. In the next few years, as the situation stabilizes, copper coins will spread abroad on a large scale and will be hoarded by more and more people.

The annual production of copper coins could not withstand the consumption, and once the people's copper coins were insufficient, the economic system would be in trouble.

The price of iron was already very low, much lower than the price of copper, so it couldn't be used as currency. Otherwise, people would have melted down iron to exchange for money.

Moreover, a thousand iron coins are too heavy.

The rate of minting new coins could not keep up with the consumption; the entire northern region produced only two million catties of copper per year, which is equivalent to about one thousand tons.

One ton of copper can make 666 strings of copper coins, one string of copper coins is worth one thousand coins, and one tael of silver.

One thousand tons is 666000 strings of cash, or six hundred and sixty-six thousand taels of silver.

6,6600,000 coins.

Six hundred million is still not enough. Now, after four years of peace, the total population is about sixteen million.

Forty coins per person is simply not enough to save a year's salary, even ten times that amount wouldn't be enough.

The Wu Dynasty used copper coins to pay wages every year to promote economic circulation, resulting in each family having at least two or three thousand coins in savings.

Annual production is 66 strings of cash, with a total demand of 3000 million strings of cash.

Currently, with the use of both new and old currencies, along with gold and silver, and the rapid distribution of collected funds, economic problems have not yet arisen. However, this may not be the case in a few years.

The promotion of paper money is imperative, and the gold and silver currently on the market, especially the gold and silver artifacts brought by people from the Western Regions, can help supplement the currency.

However, if 50% of the 10 million people can work and earn copper coins, there will definitely not be enough copper coins.

Everyone tried to come up with a solution, but they couldn't think of anything good.

The only feasible option is to issue paper money, but will ordinary people accept it?

Beiji Wu decided to go and ask around among the common people. After the meeting ended and he finished eating, he went out of the palace alone for a walk.

The city of Luoyang, in the dead of winter, has become bustling with activity, as men and women come and go, busy preparing for the New Year.

Although most people in this region call themselves mountain farmers, very few actually know Beijiwu.

With several rotating commanders of ten thousand men taking their veteran soldiers to Youzhou, the defenses of Luoyang City were extremely weak at this time.

Neither mountain farmers nor Han Chinese would consider such a thing.

The Shan Nong Kingdom spent most of its money on people's livelihood and water conservancy, and very little on military expenses. Apart from stationing troops to defend against the Khitans and Tibetans, it did not set up any defenses against the Mongols and Han Chinese.

Even if there were no soldiers in Luoyang, as long as King Wu was there, the entire city would fight alongside him in defense.

Indeed, there were still many people loyal to the Han Chinese court, but the mountain farmers did not bully the Han Chinese; on the contrary, they were exempted from taxes for four years.

It will still be tax-free next year, and will continue to be tax-free for the sixth year.

"Ah!"

Arctic Martial heard the excited shouts of children.

This kind of thing is normal during the Chinese New Year; many alleys and lanes in this street are places where children play.

Due to the large number of newborns, many homes have become quite crowded, and the streets are full of adults doing business, making it difficult to find places to play. As a result, children often gather together and shout loudly.

Beijiwu followed the sound and indeed saw his son shouting and yelling like a fool.

It turned out that more than 20 children were playing with firecrackers together. One of the older children, who was about 10 years old, was in charge of setting off the firecrackers with long incense sticks, while the other children were responsible for excitedly screaming and hiding.

Beijiwu ignored the children and didn't want to go home to see the women with resentful faces.

"I should have kept them from coming. We used to be quite happy. Now that I'm not letting them into the palace, it's like I've wronged them." Bei Jiwu walked listlessly toward the bustling street shops, not feeling that he had wronged those women at all.

Just a few years ago they were a group of rural women, but now that they're residents of Luoyang, they don't know how to be grateful. They're greedy and never satisfied.

There are plenty of women in this world, why are you the only ones who get to enjoy the good life?

Having a few kids makes you think you're something special. If you're so capable, raise them yourself! You can have them all!

The thought of the women at home made Beijiwu feel terrible.

"Let them come back to their hometown next year."

After thinking about it this way, Beijiwu felt better.

After his mood improved, he wanted to go home for a visit. Beijiwu didn't go home empty-handed, so he went over to buy candied hawthorns for the children to eat and play with.

When the shopkeeper saw Beijiwu coming over, he said happily, "Sir, candied fruit, twenty coins a string."

Just as Beijiwu was about to buy all the candy from the stall, a little boy of about seven or eight years old walked over.

"Boss, a string of sweet fruit, please. Here's your money."

"it is good."

The shopkeeper chuckled as he took the "money," then skewered five candies on a stick and handed them to the child.

Beijiwu looked at the newspaper in the shopkeeper's hand. "Isn't this a newspaper? Can you buy things with a newspaper?"

The shopkeeper smiled and said, "Sir, you must be from the south. Your accent doesn't sound like that of a mountain farmer."

The accent of Beijiwu is indeed neither the Jinzhou accent nor the Wuzhou accent.

These days, he's the only one who speaks Mandarin; you can't find someone with such an odd way of speaking anywhere else.

If the hundreds of thousands of mountain farmers in Luoyang all speak with a Jinzhou accent, then those who don't speak Jinzhou dialect must be the fake mountain farmers.

Beijiwu was speechless, but he didn't argue. "I'm not from anywhere. Tell me why you buy things with newspapers here, and I'll buy a few more sweets."

Before the shopkeeper could speak, the young man next to him looked up and said, "Let me tell you, a newspaper can sell for twenty coins, and sometimes people even buy it for fifty coins. Lots of people are buying newspapers."

Beijiwu asked curiously, "Why are you collecting newspapers? Tell me clearly, and I'll buy you a string of candies."

Upon hearing this, Xiao Gua happily replied, "My name is Xiao Gua. My older sister sells newspapers, and I'm still in school. Ask away, I know everything!"

Beijiwu said speechlessly, "Regarding the question from earlier, why would others collect newspapers?"

"For wiping your bottom," Xiao Gua said with a smile. "The newspapers that cost five coins for seven sheets sold out in no time. This year, old newspapers have gone up to twenty coins a sheet. For three coins a sheet, you can cut a newspaper into seven or eight palm-sized pieces of toilet paper."

"It can also be used to wallpaper walls, which is cheaper than cloth. I use it to cover books, practice calligraphy, and insulate shoes. Many out-of-town businessmen come here to buy it at high prices to read old news."

"It can also be used to wrap things during the Chinese New Year, or as a pad for your bottom."

Arctic Wu realized that in an era of scarcity, newspapers served more than just propaganda and literacy.

Perhaps increasing newspaper production could solve the currency problem to some extent and also absorb more copper coins into the treasury for recycling.

This substitution effect was even stronger, especially when it involved transactions involving copper coins of twenty or less held by children.

The price of newspapers needs to be increased, and production should be increased to curb hoarding, which could affect important propaganda matters.

"I'm usually too busy and forgot about this."

Arctic Martial Arts indeed forgot the purpose of newspapers beyond propaganda. After being reminded by the pragmatic wisdom of ordinary people, he accepted the situation and did not prohibit this universally recognized transactional attribute.

In the absence of copper coins, the multiple uses and circulation attributes of newspapers were irreplaceable.

Because of the limited shelf life and high rate of damage during circulation of paper materials, most newspapers will inevitably be destroyed and lose their resale value within a year.

However, during this period, the information may have been handled by hundreds of people, thus maximizing the value of reading and promotion.

Even if it ends up in a latrine, burns in a fire, or is plastered on a wall, it still provides temporary support and maintenance for the financial system.

Little Melon asked curiously, "What did you forget? Are you only just realizing it now?"

Beijiwu laughed and said, "Boss, give him another candy, and I'll pay the bill."

"Alright! We don't accept old coins from the Southern Dynasty here. Do you have silver or new coins?" The shopkeeper looked up and down at Bei Jiwu, thinking that Bei Jiwu's clothes were quite valuable.

Beijiwu took out a handful of loose silver from his coat pocket and handed it over.

"I'll take all of these. If any kids come to buy candy, I'll give them one for free. I have something to do, so I'll head home first. I'll come back tomorrow and ask the kids in the neighborhood. If you're not honest in your business, you shouldn't be cutting hair anymore."

The shopkeeper muttered, "Fine, you're kind-hearted, sir, but whether we mountain farmers get haircuts or not is none of your business, you fake mountain farmer."

Beiji Wu was too lazy to comment on such a stupid matter, ignored this self-righteous person, and returned to the palace.

"Newspaper production can be increased, but what would be a suitable price?"

After a moment's thought, Beijiwu quickly decided to give it a try.

Anyway, I have plenty of money, so I'm not afraid of losing it.

"Add three more sheets, and from now on, a newspaper will cost 20 coins for 10 sheets, and we can buy it back at the price of 10 coins per sheet."

“Recycled old newspapers, if well preserved, can continue to be sold for twenty coins.”

"Now that winter is here and the weather is cold, we will set up a fixed two-square-meter hut for each newsboy as a newspaper stand. It is two meters long, one meter wide, and two meters high. That should be enough. It can hold bedding and a water bottle, but stoves and candles are not allowed."

“I remember that the previous wage was 0.5 yuan per newspaper. If you paid 500 newspapers a day, that would be 250 yuan, which is too high.”

"It can't be more than that of soldiers and craftsmen. At most, it's three thousand coins a month, which can buy more than six hundred catties of grain."

"Fine, let's give you more. We'll adjust the price to 0.2 coins per newspaper, so 500 newspapers would be 100 coins. But we can make a profit of 0.5 coins per newspaper from recycling and selling the waste newspapers."

"They can buy back the newspaper for 10 coins and sell it for 15 coins. How much they can earn is up to their own abilities. I only need to set a fixed circulation value of 10 coins per newspaper and take a symbolic cut from each one."

To better supplement his plans, Beijiwu decided to look at the sales volume and sales speed of newspapers in the city, and to figure out the current gap in the newspaper supply from a practical point of view.

"We must distribute the copper coins from the treasury to promote economic circulation; otherwise, the people will not have enough copper coins."

A distant solution cannot quench an immediate thirst; large-scale wage payments next year should be made during the busy farming season.

“The wages can be changed to be paid monthly to reduce transportation pressure and to be more suitable for the rural population.”

"There are about seven million temporary agricultural workers. Most of them are young and middle-aged people who joined the workforce after the disaster, and the children are also about the age to work."

"Give us the money!"

(End of this chapter)