The Fierce Teacher of Zhenguan: Starting with Teaching the Crown Prince to Make a Comeback

Chapter 158 Zhenguan Yuguo Certificates

three days later.

Inside the Liangyi Hall, the air was filled with the fragrance of sandalwood.

The atmosphere in the hall was somewhat somber because the court was going to issue bonds to raise money and grain.

Today's proceedings are not a grand court assembly; the attendees are the heads of the three provinces, the six ministries, and several key ministers, making it a small-scale political discussion to decide important matters.

Crown Prince Li Chengqian sat on a specially arranged seat on the left side below the imperial steps, his back ramrod straight, his right foot slightly turned to one side due to a foot ailment, and his hands tucked into his sleeves.

His gaze was lowered, his thoughts wandering.

Just yesterday, after being drafted by the Secretariat and reviewed by the Chancellery, the emperor finally affixed his seal, and an edict bearing the imperial seal, announcing the issuance of 500,000 strings of cash in "Zhenguan Yuguo Coupons," is about to be promulgated.

The speed and efficiency of this process stand in stark contrast to the repeated deliberations that were previously required when reviewing major national policies.

These 500,000 strings of cash "official debts" were nominally intended to replenish the national treasury to prepare for unforeseen needs such as border defense and water conservancy.

Although the printing of the tickets was also meticulous, the thickness of the paper, the fineness of the engraving, and the complexity of the anti-counterfeiting measures were far inferior to the bonds issued by the Eastern Palace for Xizhou and Shandong.

However, behind it stood the entire Tang Dynasty court and the authority of Emperor Li Shimin. In the eyes of these court officials, its credibility was far more substantial than that of the Crown Prince.

But Li Chengqian felt a vague unease.

His concern was not that these bonds would put pressure on the bonds issued by the Crown Prince's Palace.

He had heard Li Yichen give an in-depth analysis of how bonds are used.

Knowing that this thing could become rampant would be extremely dangerous.

He drafted a memorial overnight, earnestly explaining the current state of bond circulation and the limited wealth of the people. He lamented that the court's sudden issuance of such a huge amount of bonds might exceed its absorption capacity, and that if the credit was flawed or repayment became difficult, it would inevitably lead to disaster.

If the court's prestige is damaged, the situation will become irreparable.

His memorial had been sent to the Liangyi Hall early that morning, but now, sitting in the hall, he felt no sign that his memorial was being taken seriously.

His father's face was unreadable, but the senior officials... He glanced at the expressionless Changsun Wuji, the resting Fang Xuanling with his eyes closed, and some officials with a hint of indifference in their eyes, and the ominous premonition in his heart grew stronger.

"My lords," Li Shimin finally spoke, breaking the silence in the hall, his voice calm and even.

"The Zhenguan Yuguo Currency is about to be issued throughout the land. This issuance is intended to alleviate the immediate crisis in the national treasury and to prepare for future border defenses and construction projects. If any of you gentlemen have any unresolved issues or details regarding its implementation, we can discuss and finalize them here."

As soon as he finished speaking, Tang Jian, the Minister of Revenue, stepped forward first. He was in charge of the national finances and was most enthusiastic about this matter.

He bowed and said, “Your Majesty is wise. Although we won a great victory in the war against Xueyantuo last year, the military expenses were enormous. This year, there are reports from various places that dozens of water conservancy projects and official roads need repair, all of which require money and grain. Issuing Yuguo bonds is indeed a good way to increase revenue and can solve the urgent problem. I have already instructed the Ministry of Civil Affairs to speed up the printing, and they will soon be issued simultaneously in the two capitals and various prefectures and counties, which will surely raise the required funds quickly.”

His tone carried a sense of relief, as if the 500,000 strings of cash were already within his grasp.

Li Chengqian's brow twitched violently, and he couldn't help but raise his head, his voice carrying a barely perceptible dryness.

"Minister Tang, 500,000 strings of cash is no small sum. Although the Crown Prince issued bonds before and received a response from the people, the amount was far less than this, and it had a specific purpose."

"Now that the imperial court has suddenly issued such a huge amount of money for such a wide range of purposes, and the people have a limited amount of wealth, I'm afraid... I'm afraid it will be difficult to absorb it all. If there is any stagnation, it will be undesirable."

He tried his best to make his tone sound objective and calm.

Before Tang Jian could answer, Cen Wenben, the Vice Minister of the Chancellery, chuckled and stepped forward, saying, “Your Highness is overthinking it. The Eastern Palace bonds are feasible because Your Highness has excellent credit and has planned well. However, in our Great Tang Dynasty, His Majesty reigns supreme, his power extends throughout the land, the world is at peace, and all the people are loyal to him.”

"The court's credibility is such that even if it were a million strings of cash, let alone 500,000 strings, with Your Majesty's divine power, the wealthy people and merchants of the world would eagerly offer their loyalty. How could there be any hesitation?"

That sounds very high-sounding.

It also subtly elevates the purchase of bonds to a political level of "showing loyalty" to the emperor and the court.

Li Chengqian's heart sank. He knew that Cen Wenben was close to Prince Wei, Li Tai. His words, though seemingly praising the court, were actually a subtle way of undermining the significance of the Crown Prince's previous successful bond issuance.

And his concerns were misinterpreted as a questioning of the court's credibility.

He took a deep breath, suppressing the surging emotions in his chest, and turned his gaze to Li Shimin on the throne.

“Father, I am not questioning the credit of the court. However, there are inherent rules in the matter of bonds. Water overflows when it is full, and the moon wanes after it is full. The total amount of funds circulating in the market is limited. Suddenly investing too many bonds is like pouring too much water into a pond, which may cause the water to overflow the banks.”

"Your Majesty, I am worried that if bond prices fluctuate or there is any delay in redemption, it will damage the face of the court and the trust of the people in the court."

He tried to use a more vivid metaphor to illustrate the risks involved.

At this moment, Changsun Wuji, who had been silent all along, slowly spoke. His voice was not loud, but it carried a sense of composure.

"Your Highness the Crown Prince is considerate of the people's plight and has taken all the necessary precautions into account. We are very pleased."

He first made a statement of affirmation, then changed the subject.

"However, Your Highness may be too cautious. Since the Zhenguan era of our Great Tang Dynasty, the weather has been favorable, the granaries have gradually become full, and many people are prosperous."

"The previous Donggong bonds were highly sought after in the market, and even traded at a premium, which shows that private funds are abundant and eager for a safe way to increase value."

"The imperial court's issuance of Yuguo bonds this time has a reasonable annual interest rate, a clear repayment period, and is guaranteed by the Great Tang National Bank. In my opinion, not only will it not be delayed, but it may even be in short supply."

He paused, his gaze sweeping over Li Chengqian's slightly pale face, and continued, "As for Your Highness's concerns about price fluctuations and payment delays..."

"Your Majesty is a wise ruler throughout the ages, and the court is not like the incompetent government of the former Sui Dynasty. How could it destroy its own Great Wall?"

"At that time, the national treasury revenue will naturally prioritize the repayment of bonds, so there is no need to worry about this."

"The most urgent task is to raise funds and provisions as soon as possible, strengthen border defenses, and develop water conservancy projects. These are the foundations of the nation. It would be unwise to throw the baby out with the bathwater and waste precious time."

Changsun Wuji's words turned Li Chengqian's worries into unfounded concerns.

He invoked the "guarantee of national destiny," pointed out the "fact" of "abundant private funds," and characterized Li Chengqian's concerns as "overly cautious" or even "throwing the baby out with the bathwater."

These remarks catered to the emperor's eagerness to solve the financial problems and also aligned with the perception of most court officials that the court's authority was supreme.

Li Chengqian felt a wave of powerlessness.

He knew that his uncle's words represented the thoughts of the vast majority of the important officials present.

They saw the success of the Donggong bonds, only their ease of making money, but failed, or were unwilling, to delve into the underlying economic laws and risks.

In their view, the supreme authority of the imperial court was enough to crush all potential problems.

Fang Xuanling opened his eyes at this moment and slowly added, "What Fuji said is very true. His Highness the Crown Prince's concerns should be noted as something to be carefully guarded against in future implementation."

"However, given the current needs of the nation, issuing Yuguo bonds is indeed a feasible solution. I believe that we can issue them according to this amount first. If, as Your Highness is worried, there is indeed a situation where the demand cannot be met, then it is not too late to make adjustments."

Fang Xuanling's words were more of a compromise and appeasement. While they seemed to have adopted some of the Crown Prince's opinions, they actually still supported the idea of ​​immediate issuance.

Li Chengqian appeared helpless. Li Yichen once said that the collapse of trust often happens in an instant, and it cannot be easily "adjusted" afterward.

Looking at the almost unanimous voices of approval filling the hall, and at his father, who remained silent on the throne and was clearly persuaded, Li Chengqian knew that his memorial and his current efforts to argue were all in vain.

What else could he say?
Are we to point fingers at these high-ranking officials and say they don't understand credit and don't recognize risks?

Should he stubbornly insist on his own opinion and be labeled as "obstructing national policy" and "disregarding the overall situation"? He slowly lowered his head and stopped arguing.

Because he knew that no amount of words could be effective at this moment.

Li Shimin watched as his son finally lowered his head, his stubborn figure revealing a sense of desolation. A faint, complex emotion flickered in the depths of his eyes, but it was quickly replaced by a resolute decision.

He declared loudly, “In that case, the ‘Zhenguan Yuguo Certificates’ shall be issued according to the original plan. The Secretariat, the Chancellery, and the Ministry of Revenue must work together to ensure the smooth progress of this matter.”

"Your Majesty, we obey!" the ministers replied in unison.

Li Chengqian silently withdrew from the Liangyi Hall along with the other officials.

The sunlight shone on him, but he felt no warmth at all; instead, a chill spread from the bottom of his heart.

He walked unsteadily along the palace path, the conversation he had just had in the hall echoing repeatedly in his mind.

"They only see the 500,000 strings of cash in front of them, but they can't see the huge waves that might follow!"

"The credit that the Crown Prince has worked so hard to build... the trust that the people have just begun to place in the bonds... are all going to be destroyed by this 500,000 strings of cash!"

He could almost see it: when a large number of imperial bonds flooded the market, supply exceeded demand, prices began to fall, people panicked and sold off, and even the bonds issued by the Crown Prince's Palace were affected, their value shrinking...

What kind of losses will those wealthy merchants who invested their family fortunes in bonds because they trusted the Crown Prince suffer?

When public resentment boils over, who will be the target of that anger?

The imperial court and the Crown Prince's palace, which issued the bonds, will both become targets of public criticism!
All of this could have been avoided!
A strong sense of powerlessness and anger welled up in his chest.

He had the title of crown prince and the insight to see the crisis, but he couldn't stop the carriage that was speeding toward the cliff.

He raised his head and looked in the direction of the East Palace, his eyes filled with anxiety.

He must see Li Yichen immediately!

Now, perhaps only Li Yichen can understand the turmoil in his heart, can analyze this crisis for him, and can tell him how the Crown Prince should conduct himself in the coming storm!
He quickened his pace, ignoring the sharp pain in his right ankle, and hurried toward the Xiande Hall of the Eastern Palace.

Meanwhile, inside the Liangyi Hall, Li Shimin did not leave immediately.

He sat alone on the throne, his fingers gently stroking the worried memorial presented by Li Chengqian.

"Water overflows when it is full, and the moon wanes after it is full..."

He repeated in a low voice the words from his son's memorial, his deep gaze fixed on the clear sky outside the palace.

He wasn't entirely unaware of Li Chengqian's concerns.

As an emperor, he deeply understood the principle that things will turn into their opposites when they reach their extremes.

However, the current situation is characterized by an empty national treasury, pressure on border defenses, and urgent construction projects in various regions. These are pressing practical issues.

The success of the Donggong Bonds was like a key, opening a door for him to raise funds quickly.

Faced with enormous real-world demand, the potential risks seem worth taking.

Moreover, as Changsun Wuji and others said, with the power of the Tang Dynasty, how could it not be able to control these mere bonds?

“Gao Ming…you are still too young and too idealistic.”

Li Shimin sighed softly, closed the memorial, and placed it on a corner of his desk.

"Some risks are unavoidable. I hope... your worries are just worries."

Even so, a very subtle unease still crept into his heart like an undercurrent.

However, this unease was quickly suppressed by the emperor's confidence and his assessment of reality.

The imperial court's mighty ship has embarked on a new voyage, following its predetermined course.

Whether the seas ahead are calm or fraught with hidden reefs, no one knows at this moment.

The Eastern Palace, Xiande Hall.

He did not summon Li Yichen immediately, but instead limped to his desk and sat down to review the situation.

His first thought was "game theory".

Today, in the Liangyi Hall, Father Emperor, Uncle, Prime Minister Fang, Tang Jian, Cen Wenben... each of them is a player on a chessboard.

What the emperor wanted was to quickly resolve the empty treasury and maintain border defenses and engineering projects; this was his core interest.

Whether to curry favor with the emperor, to uphold the authority of the court, or simply because they harbored resentment towards the Crown Prince, their choice was naturally to support the issuance of the document.

He himself saw the potential risks, but because he was alone and powerless, he was unable to change the situation.

In this game, his strategy of "non-cooperation" or "opposition" appears powerless in the face of the opponent's united strategy of "support".

Next is "credit".

Li Yichen repeatedly emphasized that credit is like a blank sheet of paper; once it is tarnished, it is difficult to restore.

The bonds that the Crown Prince had painstakingly cultivated beforehand were secured by implicit guarantees such as snowflake salt and allowed to circulate, which enabled the bonds to gain trust among the public and even generate a premium.

How difficult it is to establish this trust!
The imperial court, possessing greater authority, should have cherished this trust even more.

But nowadays, they only see the "lending" function of credit and the convenience of quickly exchanging money for food, but they ignore the "carrying" limit of credit.

The bonds issued by the Crown Prince's Palace and the bonds issued by the Imperial Court may seem different, but in the eyes of the common people, they are both certificates of "the government".

If problems arise with the imperial bonds due to excessive quantity or improper use, the bonds issued by the Crown Prince's Palace will inevitably be implicated.

This is the associated risk of credit.

What Li Chengqian was worried about was precisely this systemic collapse of trust.

Then comes "weighing".

The imperial court only weighed the immediate benefits of "obtaining 500,000 strings of cash" against the "potential risks" and concluded that the benefits far outweighed the risks.

However, they did not carefully weigh, or rather selectively ignored, the magnitude of the cost "once the risk occurs".

That would destroy the court's prestige, evaporate the people's wealth, and might even incite public resentment.

This potential "hidden cost" is so high that it cannot be estimated.

For the sake of immediate gains, they were willing to take such a risk.

This violates the principles of "marginal utility" and "opportunity cost" that Li Yichen mentioned—when the investment exceeds the critical point that can be tolerated, the additional investment will bring negative utility rather than positive utility.

(End of this chapter)