How can one be Emperor Chongzhen without money?

Chapter 298 The War of Silver and Grain

The Han River shimmered with the blue light of autumn, its waters crisp and clear.

A massive fleet broke through the morning mist, slowly heading south. Emperor Chongzhen's imperial boat was in the middle of the fleet, its dragon flag fluttering in the wind. Surrounding it on all sides were official ships, cargo ships, and warships, stretching across nearly ten miles of water in a grand procession.

The scene on both banks was even more alarming. The imperial new army's cavalry and infantry, their armor gleaming, advanced in unison along the riverbank. The heavy clatter of hooves, footsteps, and the muffled thud of cannon cart wheels on the dirt road created a heavy sense of oppression, so much so that officials from the surrounding prefectures and counties stood on the docks, not daring to raise their heads.

Inside the imperial boat, Emperor Chongzhen sat listening to a secret report from Xu Ziqiang, the General of Huguang.

Xu Ziqiang was covered in dust, clearly having just traveled a long way. He spoke in a low voice, but every word was clear:
"Your Majesty, He Fengsheng, Tang Hui, Qian Wenwang, and their gang have already contacted all the major grain merchants in Wuchang and Hankou. They have stockpiled countless amounts of grain, just waiting for Your Majesty to arrive so they can immediately drive up grain prices, create a civil unrest, and then pin the blame on the new policies!"

Upon hearing this, Prince Xiang, Zhu Yiming, who was sitting to the side, couldn't help but curse, "Parasites! They're all a bunch of insatiable parasites!"

Emperor Chongzhen's face remained expressionless; he merely gave a soft "hmm." His gaze swept over the other people in the cabin—Prince Qin, Zhu Cunji; Prince Tang, Zhu Yujian; and the six princes from Huguang: Prince Chu, Prince Jing, Prince Rong, Prince Hui, and Prince Gui, as well as the chief eunuchs of their respective households standing respectfully behind them.

"Did you all hear that clearly?" Chongzhen's tone was calm, showing no sign of anger, as if he had everything under control. "They've already set the net, just waiting for me to walk right into it."

He paused for a moment, then looked calmly at the princes: "To break this deadlock, the tens of thousands of troops I brought are not enough. We need real money and real grain."

While it's possible to break the deadlock by slaughtering countless soldiers, Emperor Chongzhen now understands how to operate a market economy and knows that problems can be solved through market mechanisms, eliminating the need for violence.

He then changed the subject and asked, "My dear uncles, brothers, and princes, if you were to combine all the grain and cash stored under your respective estates, how much could you possibly contribute?"

Prince Yu, the chief attendant of the Chu Prince's residence, stepped forward. He had a round face and spoke slowly and deliberately, but with great confidence: "Your Majesty, our Chu vassal state alone has accumulated no less than one million shi of various grains over the years. We also have over a million taels of silver in our treasury."

Once he started, the servants from the other princely residences followed suit, each reporting their numbers.

Zhang Cai of the Jing Prince's Mansion said, "Our Jing Prefecture has over a million shi of grain and hundreds of thousands of taels of silver, which we can afford."

Zhao An from the Gui Prince's Mansion, Chen Zheng from the Hui Prince's Mansion, and Huang Bao from the Rong Prince's Mansion also reported their figures in turn. Each family had hundreds of thousands or even millions of shi of grain and hundreds of thousands of taels of silver.

Finally, it was Prince Xiang, Zhu Yiming. He looked somewhat ashamed, but his tone was still firm: "My household was previously deceived by a wicked servant, but even a starved camel is bigger than a horse. One million shi of grain and one million taels of silver, if we tighten our belts, we can still scrape together."

Besides collecting rent, these six princely mansions also owned banks, grain stores, and accumulated wealth over one or two hundred years—their assets were substantial! It's just that the profits from these assets were squandered year after year.
Emperor Chongzhen quickly calculated in his mind. With the combined efforts of the six princes, the grain reserves they could mobilize were close to ten million shi (a unit of dry measure), and the cash in hand was probably no less than six or seven million taels of silver.

If used properly, this power could be enough to help him control Huguang. The Ming Dynasty's resources were actually quite substantial!

"Very well." Chongzhen nodded. "I have an idea: to merge all the money shops and banks in your various prefectures into one large 'Eight Princes' Estate.' Using the credit of your princely prefectures as collateral, we can absorb the deposits of officials, gentry, merchants, and common people, allocate silver in a unified manner, and stabilize prices. What do you think?"

Prince Qin, Zhu Cunshu, immediately chimed in: “I think this is an excellent idea! Everyone in Huguang knows the reputation of the Prince’s Mansion. By joining forces, our credibility will be even greater, and business will be even easier. Having ‘Eight Princes’ Manor’ take the lead will stabilize the situation and demonstrate the determination of the imperial family to share weal and woe with the court. My Qin Jin Yuan Manor is so large that it has been doing very well in Shanxi and Shaanxi, and we also have branches in Beijing, Henan, and Huguang.”

Prince Zhu Yujian of Tang then added, “Your Majesty is wise. This will not only solve the immediate crisis but also open up new sources of revenue for the imperial family. It is a win-win situation.”

The other princes also voiced their agreement. This joint venture of eight princes in the silver trade was indeed a unique and lucrative business in the Huguang region, and it also gave them an advantage in the new policies, so naturally no one would object.

"There's no time to lose." Seeing that no one had any objections, Chongzhen immediately ordered, "Wang Yu, Zhang Cai, you guys, get to work on merging the 'Eight Kings Villages' right away. The Eight Kings Villages should first be registered in Wuchang, Hankou, and Hanyang. The interest paid on the silver deposits in the villages should be slightly higher than the market rate. The first priority is to tighten the credit line and suspend large-scale lending to grain merchants."

"We obey your command!" the chief eunuchs replied in unison.

Emperor Chongzhen then looked at Prince Qin: "Uncle Prince Qin, you are from Shaanxi. The Shaanxi merchants in Hankou have great influence and deep ties with the grain industry. Go to Hankou personally and secretly meet with those Shaanxi merchant leaders. Tell them that the primary task of my southern tour is to raise funds for disaster relief in Shaanxi. Ask them to tighten lending to grain merchants from Huguang out of consideration for our shared hometown. Afterwards, the court and the Prince's residence can give them priority in remittance transactions."

"Your subject understands!" Prince Zhu Cunji accepted the order. "Shaanxi merchants value their hometown sentiments the most, so we should be able to be 70-80% confident in this matter."

"Xu Ziqiang." Chongzhen finally looked at the general.

"The general is here!"

"Have your men keep a close eye on all the major grain shops and wharves in Wuchang and Hankou. Arrest any ringleaders who are spreading rumors and punish them severely."

"The general will get the order!"

A series of clear instructions were issued, and the atmosphere in the cabin became tense. Everyone understood that this was not ordinary business competition, but a battle for the very survival of the new policy.

Just as Chongzhen's fleet was heading south, undercurrents were already swirling in Wuchang and Hankou.

He Fengsheng, Qian Wenwang, and others were not idle. Rumors of "the Grand Canal being cut off" and "a major famine in the north leading to the forced requisition of grain from Hubei and Hunan" swept through the streets like an autumn wind. Grain prices soared, with a shi (a unit of dry measure) of rice jumping from 1.8 liang to 2.5 liang, and still rising. The common people panicked, crowding to the entrances of rice shops, fearing they would miss out on grain if they were even a moment too late. Small and medium-sized grain merchants, on the other hand, waited and held back, hoarding their grain and hoping for further price increases. The large grain shops with close ties to the gentry kept their doors half-open, their employees standing at the entrance waving at the gathered crowds: "No grain! Absolutely no grain! Even the owner can't help it!" Yet their warehouses in the backyards were overflowing with grain.

He Fengsheng sat in the main hall of his mansion, listening to his steward's detailed report on the panic in the market, a cold smile creeping onto his lips. He had calculated it perfectly: Emperor Chongzhen had come all this way simply because he was short of grain. Therefore, what he feared most was a surge in grain prices in Huguang! If public panic ensued and grain prices soared, he would have no choice but to negotiate with the gentry and powerful families of Huguang if he wanted to obtain any more grain.

When Emperor Chongzhen's imperial boat arrived at the Wuchang dock, he went directly to the Prince of Chu's residence.

The next day, a swift and unexpected counterattack began.

In the most bustling street of Wuchang, a burst of firecrackers and drums rang out, and a huge golden signboard for "Bawangzhuang" was hung up. The notice clearly stated: "The eight royal families of Chu, Xiang, Jing, Rong, Hui, Gui, Min, and Ji jointly guarantee this; their credit is solid, and they pay interest on deposits!"

The news spread like wildfire throughout the city. Officials, gentry, and wealthy households were all astonished and uncertain. It wasn't unusual for a prince's mansion to open a money exchange, but to offer interest on deposits was truly unprecedented!
The reputation of the Prince's Mansion was unshakeable. Soon, people went there to give it a try. After the first person actually received a deposit slip with interest payments, people began to line up at the entrance of "Eight Princes' Village" to deposit their money.

Almost simultaneously, at the docks of Wuchang and Hankou, ship after ship of grain arrived. The ships bore the flags of various princely estates: the Chu Prince's Estate, the Xiang Prince's Estate, the Jing Prince's Estate… a dense, seemingly endless line. This grain was transported directly to the grain shops controlled by each princely estate, where large price tags were displayed: top-quality white rice, 1.23 taels per shi (a unit of dry measure), 2 qian (another unit of dry measure) lower than the agreed-upon price at other grain shops in Wuchang and Hankou!
Initially, the grain merchants who participated in hoarding were still hoping for the best. Surely the Prince's grain was going to be transported north for disaster relief? How much could they possibly dump in Huguang? But as the Prince's grain ships arrived one after another, the people in front of the Wangzhuang grain store went from being skeptical to forming long queues, and their hearts began to pound.

What terrified them even more was the lack of funds. After "Eight Kings Village" opened, it not only stopped issuing new loans but also began aggressively collecting old debts. Mr. Zhou, the owner of "Zhou's Rice Shop," who had close ties with He Fengsheng, was just about to borrow some more money and grit his teeth to buy some discounted grain from the Prince's Mansion to tide him over when he received a notice from "Eight Kings Village" demanding the payment of 5,000 taels of old debt (he had previously borrowed the money from the Chu Prince's Mansion's money shop, which had now been merged into Eight Kings Village). Holding the notice, his heart skipped a beat, and he knew something was wrong.

Mr. Zhou was not the only one whose loan application was rejected and who also received debt collection notices; rice merchants in Hankou, Wuchang, and Hanyang all received the same treatment.

He Fengsheng quickly learned the news and was both shocked and furious. He hadn't expected Chongzhen to react so quickly and take such direct measures! He couldn't sit idly by and wait for his doom, so he immediately ordered the few money shops he could speak to continue lending to "his own people" like Zhou's Rice Shop! He wanted to unite these grain merchants, withstand the selling pressure from the Prince's Palace, create the illusion of "supply falling short of demand" in the market, and deplete the Prince's grain reserves!
With the new loan secured, Boss Zhou felt somewhat relieved. He gritted his teeth and decided to take another gamble, continuing to buy grain at the discounted price, hoping to hold out until the Prince's Palace ran out of grain.

However, the real fatal blow came from a direction he never expected.

Prince Zhu Cunji of Qin quietly arrived in Hankou and secretly met with the leaders of Shaanxi merchants. He didn't waste time with pleasantries and directly revealed his true intentions: "His Majesty's southern tour prioritizes procuring disaster relief grain for the people of Shaanxi. If Huguang (Hubei and Hunan) descend into chaos due to a few treacherous officials, where will the grain to save Shaanxi come from? I hope that you, my fellow townsmen, will consider our shared hometown and stabilize the market, tightening lending to grain merchants from Huguang. If this matter is handled well, Shaanxi merchants will naturally have a bright future."

The Shaanxi merchants valued their hometown ties and clearly saw the determination shown by the Emperor and the Prince of Qin's personal visit. The next day, the attitude of several large money shops in Hankou controlled by Shaanxi merchants suddenly changed. They not only stopped issuing new loans but also sent their capable employees, carrying account books, to go door-to-door urging the grain merchants from Huguang to repay their old debts, with a firm tone and a deadline for repayment.

This completely threw grain merchants like Boss Zhou into a panic. Although Bawangzhuang was large, its share in the Huguang banking industry was not large. But the Shaanxi merchants' banks were different. For two hundred years, they had been supplying military needs for the border towns of Shaanxi and selling Shaanxi and Sichuan salt, accumulating a lot of wealth and holding a very high share in the Huguang banking industry.

When they joined forces and withdrew the loans, the silver in the markets of Wuchang, Hankou, and Hanyang seemed to have vanished! Without silver, how could they drive up grain prices?

His warehouse was piled high with grain he had bought at high prices, but market prices were falling day by day, while the Wangfu's low-priced grain was still flooding the market like water. His cash flow was on the verge of completely drying up.

"Sell! Sell now! Recover as much as you can!" Boss Zhou shouted desperately to his employees, his face ashen.

Zhouji Rice Shop began selling off its grain reserves at any cost. This sell-off toppled the first domino. Other grain merchants, also facing financial difficulties and with creditors knocking on their door, panicked and rushed to join the sell-off, fearing they would lose everything if they were too slow.

Grain prices plummeted like an avalanche. From over two taels and one mace, they dropped sharply to one tael and five mace, then to one tael and three mace, one tael and two mace... and even below one tael!
The market collapsed instantly.

He Fengsheng was at home when his butler rushed in with the news. He was holding a cup of tea brewed in a new Jingdezhen porcelain cup. His hand trembled, and the exquisite cup fell to the ground with a "crash," shattering into pieces. His face turned ashen, and he slumped into his armchair, his lips trembling as he muttered to himself, "Shaanxi merchants... even the Shaanxi merchants have fallen... It's all over... It's all over..."

He had initially thought that Chongzhen was only good at commanding troops and could only rely on force to suppress the enemy. He never expected that this young emperor could so quickly integrate the most deeply rooted princely power in Huguang with the powerful Shaanxi merchants in Hankou! This precise and fierce economic approach directly crushed the first wave of counterattacks from the local gentry in Huguang.

They lost this round completely.

Inside the Prince of Chu's residence, candlelight blazed brightly. Wei Zhongxian was whispering a report to Emperor Chongzhen:

"Your Majesty, grain prices have stabilized. Several large grain shops, such as Zhouji, which led the hoarding, are on the verge of bankruptcy. 'Bawangzhuang' is absorbing deposits very smoothly, and its warehouses are full of silver."

Emperor Chongzhen grunted in acknowledgment, but his face showed little joy. At that moment, a secretary from the Imperial Secretariat hurriedly entered, presenting a sealed memorial.

"Your Majesty, an urgent message from Sichuan, traveling 600 li in total."

Emperor Chongzhen unwrapped the sealing wax and quickly glanced at it. It was a joint report from Zhu Xieyuan, the Governor-General of Sichuan, and Qin Liangyu, the General of Shizhu, stating that the local chieftains in Sichuan were showing signs of instability due to rumors about the new policies, and requesting the court to quickly allocate grain and funds to appease them.

He put down the memorial, a cold glint in his eyes.

"Just when things were starting to look up in Hubei and Hunan, Sichuan is causing trouble again."

He stood up, his voice not loud, but clearly carrying throughout the hall: "Issue an imperial decree. Order Zhu Xieyuan and Qin Liangyu to come to Wuchang for an audience!"

(End of this chapter)