Rise of a Lonely City: From Exiled Prince to Ruler of the Nine Provinces

The successful implementation of commercial tax was like opening a new and powerful floodgate in the financial lifeline of Hanyuan.

Along with this floodgate comes not only a steady increase in monthly tax revenue, but also an unprecedented sense of fiscal confidence and planning freedom.

When the first quarter ended and the Department of Finance presented the summarized accounts to Xiao Chen, even though Xiao Chen had expected it, he couldn't help but be moved by the snowballing growth of the numbers.

Salt and iron monopoly profits continued to grow strongly due to increased production, technological optimization, and market expansion, with quarterly revenue reaching a new high.

Although the profit margin of grain trade in Jiangnan has declined as the situation in Jiangnan has eased somewhat and other forces have begun to intervene in grain trade, the huge trading volume still brings in enormous profits.

More importantly, the majority of this profit was in hard currency—gold and silver.

Border town taxes and revenue sharing have steadily secured the third position in fiscal revenue as trade volume continues to expand and management becomes more standardized.

The newly levied commercial tax has exceeded everyone's expectations. Not only did it perform exceptionally well in the first month, but it also steadily climbed in the following two months.

Commercial activity far exceeded expectations, especially in the Zhenbei New Town commercial district, where newly opened shops, workshops, and warehouses are popping up one after another, and transaction volume is rising steadily.

Commercial tax revenue had quietly approached half of the profits from the salt and iron monopoly by the end of the quarter, and its growth momentum showed no signs of slowing down, making it the most promising growth engine in fiscal revenue.

In addition, there were sporadic mining taxes, land taxes, government property rental income, and fines and confiscations.

After summing up all income and deducting huge expenses, the quarterly surplus reached an astonishing amount.

The Treasury's silver vaults, already overflowing with profits from trade in Jiangnan and border markets, were now completely filled with a constant stream of gold, silver, copper coins, and in-kind goods. An emergency expansion of the vaults to a second and third was undertaken, and plans were initiated to build a more robust and expansive central vault in the new town of Zhenbei, equipped with comprehensive fireproof, theft-proof, and moisture-proof features.

"Your Highness, the treasury... is truly full."

Han Lie held up a list, his voice carrying a happy kind of worry, "Gold ingots, silver ingots, silver cakes, copper coins, and leather goods, silk, and medicinal herbs that have been converted into inventory... the warehouse is already insufficient."

Much of the newly collected tax revenue could only be temporarily stored in reinforced government warehouses or military camps, which posed a considerable risk.

Moreover, the copper coins circulating in the market were a mixed bag, including old coins from previous dynasties, privately minted inferior coins, and even coins with clipped edges, causing inconvenience for merchants and affecting tax revenue and the credibility of the government.

The unprecedented abundance of public funds has brought new problems. Looking at the list, Xiao Chen pondered, "A full treasury is a good thing, but dead money isn't money; only circulating money is wealth. First, immediately begin construction of the central treasury in Zhenbei New City—it must be fast and secure. Second, begin to reform the monetary system."

He had long intended to do this, and now that the conditions are ripe, it's the perfect time to implement it.

"Firstly, the 'Baoquan Bureau' was established, which was in charge of minting coins."

The site was chosen near Heishan Town, where there is coal, and some copper could also be obtained from Beiyan.

Immediately recruit craftsmen to design coin molds. The new coins should follow the design of the "Jingbei Tongbao" coins that were previously minted on a small scale, but the fineness and weight must be uniform and superior to the official coins of the previous dynasty.

Initially, two types of coins were minted: a large coin worth ten cash and a small coin worth one cash. All government revenues and expenditures, as well as commercial tax collection, were gradually mandated to use the new coins. Old coins from the previous dynasty were exchanged and reminted at a certain ratio. Privately minted and inferior coins were strictly prohibited and confiscated.

A unified and reputable currency is the cornerstone of a smooth economic lifeline and can also greatly enhance the authority of the government and its economic control.

"Secondly, using the surplus of the government treasury as collateral, a new 'official money shop' was established under the Department of Finance to pilot the issuance of 'official certificates' such as 'salt certificates,' 'iron certificates,' and 'grain certificates.'"

These official certificates indicated that they could be redeemed for corresponding quantities of salt, iron, grain, or equivalent gold and silver, and could circulate as large-value payment vouchers within Hanyuan and recognized border markets. This facilitated large-scale transactions and reduced the risks associated with transporting gold and silver.

This was equivalent to a rudimentary form of credit money and bills of exchange, which greatly facilitated commerce, especially long-distance trade.

"Thirdly, this surplus cannot just lie idle in the treasury." Xiao Chen walked to the huge map of the northern border. "We must spend it boldly where it needs to be spent."

He made arrangements one by one:

"Double the military spending. Wang Dashan, Zhang Meng, you work with the Ordnance Department and the Ironworks to develop a plan for a complete re-equipment. I want to see all soldiers wearing steel armor and using the best steel swords and crossbows within a year! Every cavalryman should ride two or even three horses! Increase the funding for the Military Academy by 30%, select more outstanding talents, and accelerate the training of officers."

"Investment in the project will be further increased. The completion of the Zhenbeicheng city wall is imminent. The construction of public buildings such as government offices, military camps, schools, clinics, and markets within the city must be accelerated to ensure quality. All roads leading to military garrisons and even more remote outposts must be upgraded to cement roads or at least rammed earth roads. The water network project, especially the Dingbo Weir and several key tributary channels, must be completed on schedule."

"Investment in people's livelihood cannot be reduced. Funding for schools and clinics should be increased, and the construction of permanent housing in resettlement areas for displaced people should be accelerated so that everyone can move into a warm house before winter. The granaries should be kept well-stocked to stabilize grain prices. Policies to encourage workshops and reward agriculture should continue to be implemented."

"Furthermore," Xiao Chen's eyes flashed with a sharp light, "we will establish the 'Physical Research Development Fund' and the 'Education Promotion Fund.' Any valuable research ideas from the Institute of Physical Research can be supported by the fund after review. Folk artisans and students with ingenious ideas or inventions that are proven effective can also receive substantial rewards. Students from impoverished families who achieve excellent grades at Hanyuan Academy and the Military Academy can be sponsored by the Education Promotion Fund to complete their studies."

He wants to transform his abundant financial resources into a more sustainable competitive advantage – talent and technology.

Han Lie, Wang Dashan, and the others were deeply moved. The prince was determined to use every penny wisely, focusing on strengthening the foundation, enhancing power, and securing the future.

"Finally," Xiao Chen looked at Zhao Tie, "increase Night Owl's budget by 50%. I need more detailed and timely intelligence from all over the world. I need to know the slightest movement in the capital, Jiangnan, Northern Yan, the grasslands, and even the Western Regions and the Northeast as soon as possible."

Intelligence is like eyes in the dark; its value is immeasurable.

Each command transforms vast wealth into tangible military power, formidable city defenses, convenient transportation, prosperous livelihoods, cutting-edge technology, loyal talent, and keen observation. With virtually unlimited fuel and lubricant, the colossal machine of Hanyuan is now roaring forward with unprecedented power and precision towards an unknown and challenging future.

A full treasury brings not only numerical growth, but also the confidence to act decisively, the brush to draw up a blueprint, and the most solid and dazzling stepping stone on the road to the rise of the Cold Abyss.