The Ming Dynasty: The opening scene features Zhu Di angrily accusing him of illegitimate succession.

Chapter 109: Provincial Examination Questions - On Productivity

The private room fell silent immediately.

Hu Guang frowned slightly, twirling his beard with his fingertips, his expression grave.

The imperial examination system has been in place for many years. It would be reckless to change the scope of the questions so hastily. This matter is of great importance and carries a strong political signal.

Wang Da remained silent, only lowering his eyes in deep thought, clearly feeling that the matter was too important to express his opinion easily.

After a moment, Wang Da raised his eyes and said respectfully, "What Scholar Lin said makes a lot of sense. However, the system of setting questions based on the Four Books is an established rule passed down from the reign of Emperor Taizu. It may be inappropriate to change it rashly."

This matter is of great importance. Perhaps we should first submit a memorial to His Majesty and request his decision before making any further plans?

"There's no need for such formalities," Lin Yue waved his hand. "His Majesty has already given a clear order, instructing us to finalize the exam questions and submit them for review as soon as possible."

"If that's the case, we'll draft the exam questions based on this approach. If His Majesty finds it feasible, he will approve it; if not, we can revise them later. It's better than waiting and seeing, which could delay the provincial examination schedule."

Hu Guang's heart stirred. He had always been courageous and ambitious, and he knew that the Yongle reign was newly established and needed to break with convention and select new talents.

If this reform of the exam questions can be achieved, it will not only help select talent for the country but also be a political achievement for the individual. Although there are risks involved, it is worth a try.

He gritted his teeth, nodded, and said, "Scholar Lin is absolutely right! Since His Majesty has entrusted us with such an important task, it means he trusts our knowledge. Expanding the scope of the Four Books is indeed a progressive move, and I am willing to second his opinion!"

Seeing that Hu Guang had already given his support, Wang Da pondered for a moment and finally nodded: "Since both of you scholars have said so, let's discuss it along this line of thought. However, we must be extra careful when choosing a topic. We must not deviate from the original meaning of the Four Books, but also take current affairs into account, and avoid going too far out of line."

Seeing this, Lin Yue laughed and said, "Of course! You two are well-versed in the classics, while I have some practical knowledge. With the three of us working together, we will surely be able to devise appropriate exam questions!"

The tea smoke curled upwards, and the effects of the wine gradually subsided in the elegant room.

Hu Guang put down his teacup, tapped the table lightly with his fingertip, and took the lead in offering his opinion: "I have an idea. The first principle of the Four Books can be taken from the Analects of Confucius, Yan Yuan: 'If the people are well-off, how can the ruler be lacking? If the people are lacking, how can the ruler be truly well-off?'"

This sentence concerns the people's welfare and the nation's resources; it is both the core of classical texts and relevant to current affairs. What do you two think?

Upon hearing this, Wang Da carefully considered the matter and said, "The sentence that Hu Shidu chose is indeed very appropriate."

When the people are prosperous, the ruler will naturally be prosperous; when the people are impoverished, how can the ruler be prosperous? Advising rulers to ensure that wealth is stored among the people is the foundation of a stable and peaceful nation—this has always been a crucial principle of governance.

Lin Yue pondered for a moment before slowly speaking: "What you two say is absolutely right. The idea of ​​enriching the people and cultivating a tax base is indeed the right way to govern a country."

However, I believe that while this statement is apt, it falls into the misconception of emphasizing a fixed amount of wealth in the world, as if the more the court takes, the less the people take, thus placing the state and the people in a state of antagonism.

He looked up at the two of them and said, "Now that the Yongle reign has begun, everything is in need of rebuilding."

The man, who was in charge of the Treasury of Paper Money and witnessed the rise of workshops in the capital, felt that the wealth of the world was not a fixed number.

If the imperial court can promote workshops, develop industry and commerce, and facilitate trade, so that all trades have their occupations and products flow freely, wealth will naturally increase day by day. Why then worry about the country not being rich and the people not being well-off?

"It is true that the people are the foundation of the state, but the state and the people are one entity in which they prosper and suffer together. Only when the state builds water conservancy projects, rectifys officialdom, and protects commerce can the people farm and weave with peace of mind, and workshops create with all their might."

When the people are prosperous and the workshops are thriving, the imperial court will have a continuous supply of taxes and soldiers, thus becoming stronger.

Lin Yue looked around at the two of them and said loudly, "How about we adjust this question slightly and change it to the Analects of Confucius, Zilu: 'He went to Wei and Ran Youpu.'"

Confucius said, “How numerous they are!”

Ran You said, "Since there are already many people, what more is needed?"

He said, "Enrich them."

He said, "Since we are already rich, what more is there to add?"

He said, "Teach him."

As soon as he finished speaking, there was a moment of silence in the hall. Hu Guang immediately expressed his agreement: "Brilliant! Scholar Lin's suggestion is truly brilliant!"

When Confucius visited Wei, he saw that the population was large and praised them for their prosperity.

When asked what to do next since the population had grown so large, the sage replied that they should be made wealthy. When asked again, the sage replied that after they were made wealthy, they should be educated.

These two questions and answers are the foundation of good governance. First, ensure the prosperity of the nation's population; second, ensure that the people have surplus wealth; and finally, educate them to understand propriety and shame.

The ancients said, "When the granaries are full, people know etiquette; when they are well-fed and clothed, they know honor and shame." This is exactly the point.

The sages have long ago outlined the path from prosperity to good governance for the world, but later generations have often neglected or overlooked it, failing to fully grasp its profound meaning!

Lin Yue nodded and said, "When I use these words, I am actually taking Confucius's theory of governing the world as prioritizing the well-being of the people and then teaching them."

However, I believe that the sage's statement contains an even deeper truth: the wealth of the world is not predetermined by Heaven, but is created by the labor of all people!

Everyone in the hall looked surprised, and even Li Jinglong, who was drinking and eating meat, turned his head to look over.

Lin Yue continued, "When people gather, strength is generated; when strength is generated, things are produced."

Farmland needs people to cultivate it to produce millet, silkworms need people to spin and weave to produce cloth, mineral deposits need people to mine them, and workshops need people to build them to produce tools.

The larger the population and the greater the labor force, the more innovative the farming methods and the more advanced the weaving techniques, the more likely it is that an acre of land can yield twice the grain and a single silkworm can produce two bolts of silk.

The increase in resources resulting from the combined advancement of human resources and skills is what I call "productivity growth."

He said sternly: "Therefore, if the court wants to achieve peace, it should take a two-pronged approach. On the one hand, it should appease the people and secure the country, so that the world will be at peace and the population will naturally grow. On the other hand, it should establish many workshops, improve skills, and teach the people to practice intensive farming and master all kinds of crafts."

In this way, with rapid growth in population and productivity, the people's granaries will be full, the country's tax revenue will be abundant, and the world will be peaceful and prosperous!

""

These remarks were unheard of in the early Ming Dynasty, leaving everyone present speechless and extremely astonished.

However, upon closer examination, everyone found no flaws in the statement and instead found it to be extremely insightful.

Hu Guang was the first to express his agreement: "Brilliant! Truly brilliant!"

Hearing Scholar Lin's words today is like drinking fine wine! His theory on productivity is groundbreaking, revealing insights never before expressed, truly a groundbreaking theory!

After a moment's thought, Hu Guang began to quote extensively from classical texts, fully demonstrating the erudition of a Hanlin scholar.

"In ancient times, Shennong taught the people to cultivate the land. Once the plow and hoe were invented, the world had enough grain to eat. Leizu taught the people to raise silkworms. Once the loom was in operation, the common people had warm clothes and silk."

During the Xia and Shang dynasties, bronze-making techniques became increasingly sophisticated, and water conservancy flourished. From the Zhou and Qin dynasties onward, farming tools became widespread, and harvests doubled compared to the past. During the reign of Emperor Wu of Han, Zhao Guo created the alternating field system, which led to a surge in yield per mu. From the Tang and Song dynasties onward, the polder fields in Jiangnan provided the people with even better food and clothing than in previous dynasties.

Is this not an increase in productivity?

Hu Guang's gaze sharpened, and he said in a loud voice: "From this perspective, the rise and fall of national power in every dynasty is closely related to the skills of various crafts and the methods of farming."

What Scholar Lin said is the right and righteous path!

"Well said!" Li Jinglong couldn't help but stand up and praise, "Scholar Lin's insightful remarks are truly profound!"

The source of all wealth in the world lies in the labor of all people. The more diligent the laborers, the more refined their skills, and the greater their wealth. This principle is simple yet profound!

Upon hearing this, Wang Dayi nodded silently, expressing his approval.

Lin Yue raised his hand and said, "You flatter me. This is simply a result of the wisdom of the sages and the principles of worldly affairs. Now that we are gathered here, let's take this opportunity to discuss the questions for the subsequent sessions of the provincial examination so that we can make a decision as soon as possible."

Hu Guang nodded upon hearing this: "That's exactly what I was thinking. Scholar Lin has a clear vision in his mind, so why don't you show it to him first?"

Lin Yue thought for a moment and said, "Then I will give you a few questions. The Analects says that the barbarians have rulers, but it is not as good as the Chinese having no rulers." I want to use this as a question to ask what is the foundation of the Chinese nation.

Now that the world is newly at peace, and we are surrounded by barbarian tribes, this question tests not only the learning of sages and worthies, but also the defense between the Chinese and barbarians, and the foundation of the nation. If you students can ponder this deeply, you will be able to grasp the essentials of governing the world.

Wang Da stroked his beard and pondered for a moment before praising, "Excellent! The Chinese nation stands not on the advantage of military might, but on the land of propriety and righteousness, the flourishing of education, and the peace and security of the people."

This question gets straight to the point, demonstrating Scholar Lin's dedication. In the past, Emperor Taizu drove out the Yuan dynasty and restored the traditional Chinese culture; this question is timely and will surely select a person of discernment.

When it was agreed that the second session would be held, Lin Yue did not specify any topics and went straight to the policy questions for the third session.

"In the third round of questioning, I will also offer my humble opinion to elicit further discussion."

The national currency is now in circulation, but its value is depreciating daily, prices are soaring, merchants are hesitant to trade, and the people are complaining.

A certain person proposed the following question: Now that the country has established its capital in Nanjing, paper money is in circulation. However, the value of paper money is falling every day, and prices are soaring. In the past, among the eight policies of the Great Plan, food and goods were the first priority. Confucius said that when the people have enough, the ruler should be diligent in ensuring that they have enough.

If we wish to ensure the widespread circulation of paper money, stable prices, willing merchants to pay taxes, and sufficient national revenue without disturbing the people, what is the way to achieve this?

Students, having studied the teachings of sages and worthies, should understand the affairs of governing the world, express their own views, and refrain from empty talk.

Hu Guang immediately applauded, saying, "Food and goods are the lifeblood of the nation. The disorder in the currency system is an urgent matter at present. This question not only quotes the words of sages but also asks for practical solutions, which is in line with the original intention of the imperial examination to select virtuous people and apply their knowledge to practical affairs."

The four of them pondered the exam questions a little longer, and before they knew it, dusk was approaching.

Hu Guang laughed and said, "Today's conversation with Scholar Lin, Lord Hu, and Duke Cao was like listening to the music of bells and drums—it was truly exhilarating!"

Lin Yue also said, "It is truly a pleasure to receive your guidance."

Everyone dispersed after having a good time, agreeing to meet the emperor together the next day.

The following day at the court assembly, Lin Yue, Hu Guang, and Wang Da presented the draft examination questions for the provincial examination to Zhu Di in the Fengtian Hall.

Lin Yue stepped forward and said, "Your Majesty, the three of us have reached a decision and now present the examination questions for the three sessions of the Yingtian provincial examination. We humbly request Your Majesty's review."

The eunuch took the memorial and presented it to Zhu Di.

To be honest, Zhu Di's literary skills were decent compared to the average person. Emperor Yongle had a deep understanding of classics and history, wrote well, and was very good at writing official documents, but that was about it.

He carefully reviewed the questions and found that they were based on the classics of sages and concerned with practical matters of the country. Without much thought, he felt they were acceptable and directly agreed: "The questions you have proposed are insightful and address current problems. They are in line with my wishes. Approved."

Lin Yue then reported: "Your Majesty, I have another matter to report."

Duke Cao has invested in a glass factory, which has recently been thriving, with profits pouring in daily. Deeply grateful for the Emperor's benevolence, the Duke intends to pay taxes on these profits according to regulations and has entrusted us to report this on his behalf.

Upon hearing this, Zhu Di pondered and said, "I have heard about the glass factory shares, but I never imagined that the profits would be so substantial."

""

However, the taxation of profits from these shares differs from ordinary commercial taxes; there are no precedents to follow, and it's unclear how to determine the appropriate course of action.

He looked at Lin Yue: "Minister Lin, you are known for your unique ideas. What are your thoughts on this matter?"

Lin Yue bowed and replied, "Your Majesty, the current commercial taxes of our Great Ming Dynasty mostly follow the old system of the previous dynasty. All market transactions and boat and cart transportation are subject to transit taxes and residence taxes, either based on a percentage of the value of the goods or a fixed amount based on the shop's size. These are mostly taxes on circulation."

However, the shareholding system is a new concept. Shareholders profit from their shares, unlike the circulation of goods among merchants. If the old system of cyclical taxation is continued, it will likely only increase disruption and hinder industrial development.

Zhu Di nodded: "That makes sense."

"I believe that share taxation should be based on profits, without levying turnover tax, and only taxing the dividends received by shareholders," Lin Yue said slowly. "We can set a system of one-tenth of net profit as tax. After the glass factory and similar shareholding companies in the future calculate the annual net profit, shareholders will receive dividends according to their shareholdings and then pay taxes according to this tax rate."

As for share transfer transactions, the same 10% tax will be levied on the net profit from the transfer.

He added, "To prevent tax evasion, I have three other strategies."

Firstly, a share register system was established, requiring all businesses to register detailed information such as shareholder names, share amounts, and profit distribution, and submit this information to the government for record-keeping.

Secondly, the government implemented a system of official verification of contracts, requiring that share transfers be verified by the government and a contract be issued; transfers without an official contract were invalid.

Thirdly, the government mandated that brokerage firms withhold and pay taxes on behalf of clients. In all share transactions, brokerage firms would withhold taxes in advance before the transaction was completed, and the government would periodically audit the brokerage firms' accounts.

This three-pronged approach simplifies the tax system, avoids disrupting businesses, and ensures that national revenue is not lost.

Zhu Di listened intently, then his expression changed to one of sudden realization. He praised, "What Minister Lin said is clear and logical, and makes perfect sense. We shall follow your suggestion!"

During the court assembly, the officials in the hall exchanged glances, all bowed and said "Good," and no one stepped forward to object.

Shares were a new concept, and the ministers had no vested interests involved. Moreover, seeing that Zhu Di and Lin Yue approved the tax system policy in one fell swoop, it was clear that they had already made up their minds. So they simply did not obstruct it.

In the first year of the Yongle reign, Zhu Di made many political moves, including a minor adjustment to the tax system.

The court session ended quickly.

The officials withdrew in turn, while Lin Yue, Hu Guang, and Wang Da were escorted directly to the examination hall by guards.

The walls of the examination hall were over ten feet high, and the top of the walls was covered with thorns, hence the name "thorny gate".

The Zhigong Hall was located in the center, with more than 5,000 rooms arranged on the east and west sides, forming a long alley. The three were placed in a side courtyard behind the Zhigong Hall. Imperial guards were stationed outside the courtyard day and night. No letters, food, drinks, or relatives were allowed to enter. Apart from writing brushes, ink, paper, and inkstones, they were only accompanied by examination questions and books.

The system of locking the courtyard was so strict.

According to regulations, once the three chief examiners begin setting the questions for the provincial examination, they are no longer allowed to communicate with the outside world to prevent leaks. Lin Yue's ability to attend court is actually a violation of the rules, but since it is a slight deviation and was caused by the emperor's request, no one has pursued the matter.

Soon after, the special provincial examination for the first year of the Yongle reign (1406) was held as scheduled.

Originally, the provincial examination in the first year of the Yongle reign was supposed to begin in August, but because Lin Yue was to be sent on a mission to Korea in August, Zhu Di moved the date forward.

The provincial examination of the Ming Dynasty was held once every three years, and was divided into three sessions, each lasting three days, for a total of nine days.

Candidates must enter the examination room at 3:00 AM for each session. After a search to ensure no contraband is found, each candidate will be taken to a designated room. Each room contains only one table, one chair, and one bed. Candidates will eat and sleep in the room and may not leave without submitting their papers.

The first exam consisted of three questions on the Four Books and four questions on the Five Classics. The second exam consisted of one essay, one imperial edict and one memorial, and five judgments. The third exam consisted of five policy questions.

However, this time, with Teko Lin's participation, the three examinations were quite different from previous provincial examinations, causing widespread discontent among the candidates.