The Empress's No.1 Lackey-Chapter 192 - 170. Coat the Capital with a layer of gold foil

As the night deepened, the atmosphere within the Xiuwen Pavilion reached a climax.

If the morning’s discussion was a group play, then tonight’s scene had become Zhao Douan’s solo performance.

Grandmaster Dong sat in his chair, leaning back on the soft brocade cushion, his eyes intently staring at the characters appearing on the screen.

However, this time, even he couldn’t fully understand.

"What does this mean?" No one spoke, but everyone’s eyes conveyed the same question.

After writing these four words, Zhao Douan turned around and faced everyone, smiling as he said,

"Just now, I proposed that the household and labor taxes be settled in ’silver’, which would indeed save the court much hardship, but at the same time, it comes with drawbacks."

At this moment, Guo Jieyuan, who was ordinary in appearance yet adept in financial matters, suddenly spoke:

"Silver reserves."

As everyone turned to look at him, Guo Jieyuan, whose name held implications of high hopes for his progeny, hesitated and said,

"Copper is much more abundant than silver. Formerly, copper coins were the principal currency in circulation, and gold and silver were rarely used in transactions. But if the court sets a precedent with silver as the tax base, then eventually... we might have less money to use…"

Zhao Douan was somewhat surprised that this inconspicuous scholar reacted so quickly.

Although Great Yu was extremely backward in the field of "economics", so Guo Jieyuan’s description was not accurate.

But with his keen intuition, he grasped this change.

"That’s correct, Scholar Guo has a sharp eye." Zhao Douan complimented.

Historically, after Zhang Juzheng’s reforms, the Ming Dynasty transitioned from a dual standard of copper and silver to a silver standard.

And because the silver reserves in the Ming Dynasty were inadequate, this greatly constrained economic development.

For an economy to prosper, there must be enough money in circulation, but if the money—as silver—is insufficient... it becomes quite awkward.

Zhao Douan had earlier reviewed the situation of the Great Yu Dynasty.

To his delight, he discovered that the world’s silver reserves were much greater compared to those of the Ming Dynasty.

This made him even more confident in choosing his forthcoming strategy.

Zhao Douan briefly explained to the other scholars, who were unfamiliar with financial matters, the consequences of a silver standard, giving them an idea.

Then he said,

"As far as I know, our Great Yu Dynasty actually has quite a lot of silver. But why would Scholar Guo say it’s scarce?

Simply because, too much silver is not used as circulating currency but is hoarded by scholars, nobility, merchants, and even officials throughout the land.

They would bury the silver in the ground of their courtyards, stash it in their storehouses, and only bring it out when absolutely necessary...

Just like a group of rats, hiding their silver, and only using copper coins for daily expenses... That’s the real reason why there’s less silver and more copper coins."

Zhao Douan spoke eloquently:

"So, what I meant by writing ’silver’ was, how do we make these people willingly bring out the silver buried beneath their homes and spend it?

Only if it is spent, can we try to get it into the National Treasury. If it is just hoarded, then the concern that Scholar Guo has will happen."

Upon hearing this, astonishment appeared on everyone’s faces.

Willingly?

Getting those people to spend their gold and silver treasures?

This proposal seemed utterly fantastical to them.

"It’s simply impossible," Han Scholar said,

"Hoarding gold and silver treasures, and all that is hoardable, is the way of survival for everyone under Heaven. Only by hoarding can one withstand bad years. Without resort to arms, how can you expect people to willingly give up their wealth?"

Wang You, Mo Zhaorong, and others nodded.

Zhao Douan sighed.

This was the outcome of a lack of economic theory; the wealth of a feudal dynasty is entirely a ’zero-sum game’. The more you grab, the less I have...

So from top to bottom, everyone was hoarding money. This muscle memory penetrated deep into their bones.

But did everyone under Heaven really only know how to hoard?

Zhao Douan shook his head and said,

"At noon, I discussed with Han Scholar, mentioning that his ten strategies amounted to taking money away from the people.

I believe you all think the same, feeling that a piece of copper in someone else’s hand is not in your own.

So, if the court needs money, it can only take from others by various means. But what if we changed our thinking, could there be a way for both you and I to possess the same copper piece?"

Possess at the same time?

Mo Chou looked puzzled, with a strange look in his eyes.

She thought, other than marrying and becoming husband and wife, what else could allow two people to possess something simultaneously?

This guy, who had been making perfect sense, suddenly started saying odd things.

Seeing everyone confused, Zhao Douan clarified further:

"Earlier, Han Scholar mentioned that people love to hoard money and hate to spend it.

I have a different view. What about merchants? All the merchants under Heaven are quite willing to spend money, and sometimes, they don’t hoard at all but spend everything they have."

Wang You shook his head and said,

"Merchants spend money not to simply spend it, but to purchase shops and hire assistants, which is for the purpose of making money… It shouldn’t all be viewed the same."

Zhao Douan looked at him and smiled,

"That’s exactly right! Merchants spend money because the money spent can earn more money in return.

Scholars buy land, and that also costs money, but they spend it willingly because owning land leads to earning more from cultivation in the end."

Suddenly, Guo Jieyuan slapped the table, as if he had a sudden realization:

"Indeed! It’s not that people in the world like to hoard money, but that they lack ways to make money with money! So they can only hoard it in their hands.

Lord Zhao’s meaning is that as long as the court can let the scholars, merchants, and even officials of the world discover a place where if they spend a copper coin, they can earn back two coins,

then without anybody forcing them, they will inevitably take out all their family wealth and spend it..."

He said this, but then shook his head:

This 𝓬ontent is taken from freeweɓnovel.cѳm.

"However, such good places are too few, the existing ones, like salt and iron, are already in the hands of the court, it cannot, in order to deceive that group of scholars and merchants, open up the salt and iron business to those people..."

Duan was surprised, thinking that Scholar Guo was quite impressive, his thinking quickly extended.

Deservedly a scholar adept at finance, when it comes to money, his response is the fastest of all.

And as Guo Jieyuan explained, the others also understood, frowning at Duan.

Not knowing what he was getting at after taking such a roundabout way.

But Duan didn’t rush, completely mastering the rhythm of the scene, and said:

"Scholar Guo is not wrong, the businesses already in the world have been cleanly divided up. But who says there are only these businesses in the world?"

As he said these words, he felt emotional in his heart.

In his previous life, he had studied some economic works, for example, Schumpeter’s theory of innovative profits, which said that the economy itself will not develop.

Like in the agricultural era, there were hardly any major changes for thousands of years, wealth just constantly flowed through different hands.

But in the industrial era, as productivity climbed, the economy began to develop. A lot of wealth that didn’t exist before was created out of thin air.

Hence, if the Great Yu Dynasty now follows the ’game theory,’ letting the court and the people of the world scramble for money, it will lead to unrest.

But if the ’wealth creation’ method is used, not only will it not intensify contradictions, but because the court sets the stage, more and more people will bind their interests with the court.

Duan continued:

"As far as I know, the corridor leading to the Western Regions through Great Yu was originally only manned by military forces and only cost money every year, but later, some merchants were given the opportunity to travel between the two places and do business, with the court taxing the gateways, which made a lot of money.

Similarly, when Capital was in the time of the first emperor, it was quite dilapidated, but afterwards, when it was designated as the capital, all the nobility moved to Capital, and it gave rise to a bustling port, just charging an entrance fee into the city was enough to support the expenses of the Imperial Palace...

I ask, did these examples require the use of force?

No.

But why did the money willingly swarm in and go directly into the hands of the court?"

Without waiting for everyone to reply, he said clearly:

"Market."

"As long as the court acts, builds a market, grants some privileges to a place, moves some crucial government offices to these places... among other tactics.

Merchants from all over would smell the opportunity and swarm in, voluntarily busying themselves for the court, they would earn a lot, but the court would earn even more.

And when the merchants have earned money, then those aristocrats with countless shops and even some wealthy scholars, if capable, will also throw their hoarded silver in.

Because only by throwing it in can they earn, and if they don’t bring it forward, then others will earn.

And if others earn while they don’t, their own money will become worthless..."

"And as long as the size of this market is large enough, say Nine Roads and Eighteen Prefectures, every place has such a market, then the money of the rich will be invested, turning into ’assets’...

The court need not worry about how to make everyone earn money, because those merchants will figure out ways to create money on their own..."

As Duan reached this point, Mo Chou’s eyes lit up and said:

"Just like the cheap ice sold by the Heavenly Master Mansion in Capital recently?

The Magician there produced ice, inviting many wealthy families to buy, thus taking the money hoarded by those wealthy families, just like those merchants did."

"…" Duan nodded weirdly and said:

"Exactly, creating goods that everyone craves is a way to attract everyone to spend money.

As long as these merchants rack their brains to get people to spend money, they won’t hoard money, but will continue to spend it to earn more.

In this process, more and more clerks will be employed, so the common people will also have ways to earn money, and those people with money will continue to spend it, buying things like blocks of ice…

In this way, it’s like a wheel, once the court gives it a slight push, it will spin quickly.

Compared to hoarding money, everyone spends their money... This way, the silver of Great Yu Dynasty will increase.

And the court can constantly collect taxes... endlessly.

Even, if the court has more money, it can set up money shops, lending money to those merchants…"

Duan spoke faster and faster.

In all their minds, that scene became clearer and clearer.

Han Scholar stood there stunned.

At this moment, he once again envisioned the future scene, similarly with the world’s gold and silver converging into Capital.

But this time, there were no eyes of hatred, only countless pairs of excited, greedy eyes.

He raised his head, his eyesight crossing over Duan, looking towards the screen behind him where the words "silver," "merchant," "capital," and "market" were written.

In the corner of his eye, he noticed the scholars gradually getting up, standing.

Their hearts surged because of the future depicted by Duan.

Finally, Duan put down the brush, his mouth dry and tongue parched as he made a summary:

"The key is, this way, even if the rebel and Eight Princes want to stop it, they cannot stop the people’s drive for profit, and only the court has the ability to do these things, no one else can replicate them.

Even if the rebel is reluctant, they can only watch helplessly as the money flows into the National Treasury.

And when the aristocracy is also forced to get involved, soon applying a land tax, if they think about resisting, they will have to worry about whether they would be kicked out of this market by the court...

Offend the court, or please the court to get more? Not a difficult choice.

This way, when the new policies are carried out, the resistance will also be reduced."

Duan said mildly:

"In this way, if these three strategies are carried out successfully, within ten years, the money in the National Treasury can gild Capital with a layer of gold."

"This is the Golden Three Strategies."