Chapter 271: He Who Grasped the Times Is a Hero

As the Tang's Right Prime Minister, Li Linfu actually has the greatest say on the state's operations.

The Tang's central finances may look orderly on paper, but in reality they are merely patching one wall with another; most local commanderies and counties are already overburdened with taxes.

Such fiscal problems seem on the surface to stem from inherent flaws in the Tang's political structure. It is not yet a sign of impending chaos or imminent disintegration.

It appears merely a problem of the political superstructure.

For example, the Tang's local political‑economic operation centers on the capital region and prefectures, which control regional revenues; next are the commanderies, each handling its own affairs, usually only tens of thousands of people and unable to accomplish major tasks.

Tang governance has always lacked a provincial‑level administrative unit like a "province" to coordinate management.

The establishment of the "Ten Military Governors" system at the end of Kaiyuan and the beginning of Tianbao partially compensated for the absence of provinces and objectively adjusted centralization.

Thus, contrary to the speculation of many Tang examination candidates who enjoy "political tinkering," the commanderies overseen by border Military Governors run more smoothly, at least better than the Guanzhong region.

The Tang may be corrupt, but nothing is more corrupt than Chang'an.

In areas outside the Military Governors' jurisdictions, affairs beyond the commandery‑county level are all dumped onto the central administration, causing a surge in central expenditures!

Take river management, which inevitably requires building levees; in the Tang, a river crossing several—sometimes more than ten—commanderies is not unusual.

For such matters, each commandery hopes the court will step forward, fund and oversee the big picture, yet they do not want their own prefectural offices to spend money or effort on these "trivial affairs."

To fill the central fiscal void, Li Linfu shelved all these "optional" tasks.

The reason is simple: the Tang's central revenue declines year after year.

So why does the central treasury keep shrinking despite no large‑scale wars, a growing population, and no social upheaval?

Ji Ge doesn't pay much attention to such issues, but Li Linfu knows them all too well.

The Tang's land tax, labor tax, and grain levy bring in less grain and silk each year. Corrupt officials certainly play a part, but the main unspoken reason is the rise of "hidden households" evading taxes, reducing the overall tax rate.

Although Li Linfu adopted a blanket crackdown—raising land taxes and spreading the new levies across all landholders—he still cannot plug the growing fiscal hole.

Officials of the Tang bureaucracy can refuse Jiaozi, aristocratic families can refuse Jiaozi, and wealthy merchants can also refuse Jiaozi.

Yet Li Linfu, like Ji Ge, cannot refuse Jiaozi; otherwise, as Right Prime Minister, he would be ousted within a few years.

With these mixed feelings, when Li Linfu arrived at the Huake Xianghui Hall, he saw Ji Ge happily conferring with Fang Chongyong in a study, their hearty laughter echoing from afar.

"Please forgive me, Your Majesty; I am late."

Upon meeting, Li Linfu clasped his hands and bowed to Ji Ge, his ingrained respect evident in his expression and demeanor.

Li Linfu no longer needs to feign scheming; every frown and smile is scheming!

"Eh, I'm not late at all. Your servant arrives just in time. Gao Lishi, grant a seat; your servant will sit by my side."

Ji Ge seemed in good spirits, pointing to the spot beside him and saying.

Gao Lishi placed a cushion beside Ji Ge; Li Linfu, unreserved, performed a bow and then obediently knelt down onto it.

He then lowered his head and remained silent.

"Guozhong, the improvement to the grain purchase method you just mentioned is indeed interesting.

The Right Prime Minister is here; you should speak to him as well.

I am plagued by the grain purchase every year!"

Ji Ge pointed at Li Linfu and said to Fang Chongyong.

Fang Chongyong crossed his arms, bowed to Li Linfu, and then spoke freely: "May I ask, Right Prime Minister, the current grain purchase in Guanzhong is that the government spends money, using silk to directly buy the grain already stored by the people at a price one or two percent above market, correct?"

"Exactly so; the grain purchase system was created by Niu Xianke, first implemented in the Hexi region. Guozhong should know it better than I do."

Li Linfu was somewhat puzzled by Fang Chongyong's intent; his words were very smooth.

"Today's grain purchase method exchanges cash for stored grain.

And if Guanzhong runs short of grain, local officials must take knives to the countryside and force grain purchases. The court's benevolent policy becomes a tool to prey on the villages, sparking public resentment, and the court then cannot obtain enough grain because prices are too high.

If the court can issue Jiaozi, it could lend them to the people to facilitate farming. Repayment would be in grain the following year. This way, the grain purchase is implemented via a different method, and the court only needs to print Jiaozi.

Fang Chongyong spread his hands and said to Li Linfu.

"I see, I've learned."

Li Linfu nodded slightly, beginning to understand how this scheme worked.

The grain purchase method historically had two variants in the Tang.

The first, originally pioneered in Hexi's Shazhou, is said to have been created by Niu Xianke.

Local authorities sent silk from Chang'an to Hexi, lending it to major local merchants, who then relented it to local farmers; the government did not handle the actual transactions.

In the second year, farmers delivered grain to the merchants, who then returned the grain to the local authorities to settle the loan.

In short, the government trades spot silk for next year's grain futures, with the merchant bearing the risk. In Hexi, Qiu Ba is known to speak with a knife; if a merchant defaults, the consequences need no elaboration.

The advantage is that the grain received the following year is guaranteed and not subject to market fluctuations, ensuring sufficient supply. The downside is that the government must advance the "grain purchase funds," increasing fiscal pressure.

The second is a localized improvement of the grain purchase system in Guanzhong: local authorities directly use silk to forcibly exchange grain from farmers, bypassing merchants.

Simply put, they buy grain from the people with silk—paying and receiving simultaneously!

The benefit is that the government need not advance "grain purchase funds"; it receives spot grain.

Of course there are many drawbacks; the biggest is that grain prices are subject to market fluctuations. A bumper year is fine, but in a severe Guanzhong drought, the government holding silk cannot exchange it for grain locally!

Now, Fang Chongyong proposes a third grain purchase method, essentially "using credit currency for futures," shifting from barter to virtual‑for‑virtual exchange.

The amount of Jiaozi issued is largely under the court's control, eliminating any need for advance funding; in short, financing costs are low.

Moreover, exchanging for grain the following year ensures the court's grain collection is insulated from market prices, bypasses merchant losses, and retains Hexi's grain purchase advantage: providing an extra safety net for peasant farmers.

Li Linfu, being clever, thought briefly and grasped the brilliance of this approach.

Such a policy effectively spreads the increased tax burden to everyone by issuing more Jiaozi; regardless of wealth, all must endure the price hikes caused by the court's paper money.

Without altering land policies, this is the ultimate way to improve state finances!

The equal‑field system adopted at the Tang's founding was not the land of the aristocratic families!

These meritorious officials who helped Emperor Taizong conquer the realm, the "cornerstones" of the Tang, still hold as much land as they originally possessed.

The land allotted to ordinary peasants was the so‑called "ownerless lands."

The "ancestral law" that could not be changed when the nation was founded cannot be expected to change now either; not even Li Linfu, let alone Ji Ge, can alter this situation.

The result of land reform is immediate national ruin, chaos across the world, essentially suicide.

If Li Linfu tries to change land policy, Ji Ge will kill Li Linfu.

If Ji Ge tries to change land policy, the powerful elites will unite to kill Ji Ge.

This point is completely unsolvable.

"Your Holiness, I, your humble minister, think this method is feasible, but the details still need further scrutiny."

Li Linfu nodded slightly and said, thereby setting the basic stance.

As expected, upon hearing this, Ji Ge breathed a sigh of relief, smiled, and said:

"Brother Ji Ge, look at the stipends the officials now receive. They say it's grain, but some of it is rice, some is simply millet. Some are wheat kernels, others are flour.

There's no certainty.

Sometimes the officials are sent to harvest grain from the public fields, other times they receive cloth, sometimes copper coins, sometimes gold and silver vessels.

Other times, the government assigns corvée labor, calling a few servants to work a few days at an official's house.

These stipends are messy and chaotic, not only inconvenient to use, but also contain many loopholes that corrupt officials exploit.

When the government eventually issues Jiaozi, leaving other matters aside, stipends will be paid exclusively in Jiaozi; officials can buy whatever they like, and I won't interfere.

The Ministry of Revenue officials can easily disburse stipends, and officials who receive Jiaozi can use them conveniently; isn't this a win‑win?"

Ji Ge smiled, clearly pleased with the convenience Jiaozi would bring.

In the more than an hour before Li Linfu arrived, Fang Chongyong had already briefed Ji Ge on the Jiaozi issuance strategy and its general impact.

In other words, Ji Ge calling Li Linfu over was not to seek the Right Prime Minister's consent to issue Jiaozi. It was merely a courteous notice, inviting Li Linfu to discuss the details.

Of course, it would be good if Li Linfu were obedient and sensible, but if the other side opposes Jiaozi issuance, the money‑loving Ji Ge wouldn't mind replacing the Right Prime Minister.

Anyway, for Ji Ge, any minister is a dog; as long as needed, swapping any number makes no difference.

"Well, then, Brother Ji Ge, tell me, who would be best to take charge of planning Jiaozi? I want to hear what you, the Right Prime Minister, have to say."

Ji Ge paused briefly and said.

He glanced at Li Linfu, then at Fang Chongyong, and for a moment felt uncertain.

Issuing Jiaozi to fully replace silk in circulation is a massive state policy that clearly requires a person of great virtue and reputation to balance the various forces.

From that perspective, it can only be Li Linfu who is qualified for the post!

The Jiaozi system was devised by Fang Chongyong; in other words, no one in the whole Tang Empire understands Jiaozi's operation better than him.

From this angle, no one is more suitable than Fang Chongyong to manage Jiaozi's issuance and operation.

Between two evils, choose the lesser.

Comparatively, Ji Ge prefers Li Linfu to step forward and assume this heavy responsibility. In other words, aside from Li Linfu, who else has the credentials to dominate the ministers?

Who else?

Even if Fang Chongyong knows Jiaozi even better, even if he can work wonders, he cannot keep the court in check, so it wouldn't work.

"Your Holiness, when silk was shipped to Byzantium in the past, its price was equivalent to gold; however, east of Western Prefecture (Gaochang Kingdom), each catty of raw silk is only worth four qian of gold.

The difference is more than tenfold!

Now the Black‑clad Great Abbasid has risen, blocking trade routes; east of Western Prefecture silk is even cheaper, while Byzantine silk is more expensive. In other words, although Tang exports silk, we do not profit greatly.

The humble minister hopes to lead troops westward against Xiao Bolu, sweep the twenty western kingdoms beyond Congling, open the trade route from Anxi to Shazhou, and bring Jiaozi there.

This is my lifelong wish.

To issue Jiaozi in Chang'an, a highly respected senior court official must preside. This person must be the Right Prime Minister.

If the Right Prime Minister does not step forward, Jiaozi cannot proceed.

Please, Your Holiness, think it over three times!

Before Li Linfu could speak, Fang Chongyong suddenly performed a profound five‑body prostration before Ji Ge, kneeling and delivering a lengthy speech.

Li Linfu instantly swallowed the half‑formed words he had been brewing.

Indeed, Fang Chongyong knows military strategy, can command troops, has trained for years in Hexi, knows the affairs of the Western Regions, and even devised the Jiaozi method.

Among Tang generals there are many capable commanders, but only this one truly understands the politics, economy, and military of the Western Regions! Placing Fang Chongyong in this position can maximize his effectiveness.

The key is, no one else can compete with him for this assignment!

Conversely, if Fang Chongyong were to preside over Jiaozi issuance in Chang'an, his seniority and prestige are far insufficient to dominate the crowd!

Ji Ge certainly knows that once Jiaozi appears, it will become the fattest piece of meat! Once the various powerful families in Chang'an catch wind of it, they will fight each other bloody over control of Jiaozi issuance.

How could Fang Chongyong, a mere scallion, contend with the deep‑rooted, towering powers of Chang'an in this matter? Even if Ji Ge pushes him into a contest, he'd likely be battered with a few blows and flee in panic.

"Guozhong's words have deeply moved my heart; Brother Ji Ge, what do you think?"

Ji Ge asked with a smiling, squinting gaze, looking intently and earnestly at Li Linfu.

"Should we invite the Left Prime Minister to discuss this together?"

Li Linfu, with a modest expression, asked. He felt the Jiaozi venture was too risky and that it would be better to involve more people to share the blame.

"No need; once the details are nearly ready, we'll have the Left Prime Minister take a look." "This matter can only be handled by Brother Ji Ge!"

Ji Ge waved his hand and said, clearly not keen on letting Li Shi Zhi participate in Jiaozi issuance.

"Your Holiness, I, your humble minister, will certainly do my utmost."

Li Linfu bowed and said.

"Hmm.

Guozhong, you haven't been home for a long time; go home and rest.

I still have some matters to discuss with the Right Prime Minister."

Ji Ge gave Fang Chongyong a dismissal order.

Ji Ge issued a dismissal order to Fang Chongyong.

This humble official requests to retire.

Fang Chongyong sighed in relief, finally managing to pass off the responsibility for issuing the exchange notes.

However, as long as he doesn't voluntarily step forward and stick his neck out to take the blame, it's unlikely he'll be assigned to manage the exchange notes. Even if Ji Ge is currently confused, his position will be changed later.

No one understands the stakes here better than him. In his previous life, a certain world's top power, in order to consolidate minting rights, even dared to assassinate the president.

Even if he's not the emperor, yet he wants to get his hands on minting rights—haha, can only say whoever is greedy for this will die.

No accidents will happen.

After leaving Xingqing Palace, Fang Chongyong didn't return to his own residence but headed toward Pingkang Ward.

Many things aren't convenient to say in front of Ji Ge, but ultimately I still need to make things clear with Li Linfu.

(End of chapter).