Chapter 566: Financial System Reforms

In the Kunming Hall, the pregnant Lady Fu, her belly already rounded, sat with Empress Fu, the elder sister, exchanging intimate words.

"You're newly pregnant, so you must take good care of yourself. The autumn grows deeper, the weather turns colder—mind your diet and be careful not to catch a chill!" The elder Lady Fu, as always, tirelessly reminded her younger sister.

"Mm!" Worthy Consort Fu softly acknowledged, then murmured in a low voice: "Both of us are with child, yet some people still go out of the palace bustling about, enduring hardship, not caring about the imperial blood in their womb, earning themselves a fine reputation!"

Hearing her sister speak thus, the elder Lady Fu naturally knew what the younger was referring to, and sighed: "You've been listening to those idle gossips again!"

The younger Lady Fu pouted her tender lips and said: "These days, both inside and outside the palace, everyone is spreading word that Noble Consort Gao is filial—the Empress Dowager praises her, and His Majesty dotes on her too. I just find it all so affected!"

Hearing this, the elder Lady Fu couldn't help but glance at her sister a couple more times. Since becoming pregnant, Worthy Consort Fu's temperament had changed very noticeably—she had become far more sensitive, prone to melancholy. Of course, part of it was due to the Emperor's neglect, especially in contrast to Worthy Consort Zhe and Noble Consort Gao.

The Empress could roughly understand her sister's feelings and was not angry. She merely gently stroked her hand and comforted her: "You! Since Prince Linqing passed away, Lady Gao has after all lost her father. His Majesty pitying her is understandable. But you must not, within the palace, behind others' backs, get mixed up in such disputes. Stay peacefully in your hall, bear children for His Majesty, and spread the imperial family's branches—that is what matters most!"

The younger Lady Fu's brows knit slightly as she said to the elder: "I just can't stand hearing people spread word that although you are the Empress, the one who has spent the most time with His Majesty in the palace is the Noble Consort, and the one His Majesty loves most is also the Noble Consort..."

"These days, His Majesty rarely even comes to your side anymore!"

At this, the elder Lady Fu couldn't help but shake her head, tapping the younger's forehead: "In that head of yours, don't dwell on such matters. In the deep palace, there is much gossip—don't bother with it. His Majesty is busy with state affairs and has little time for the harem. I know you feel lonely; come sit with me whenever you have time. As for His Majesty, I will speak with him and ask him to find time to visit the Spring Orchid Hall to keep you company."

"Sister, that's not what I meant..." The younger Lady Fu, clever as she was, couldn't help saying.

Raising a hand to stop her, the elder Lady Fu, with the bearing and grace of a chief wife, spoke in a warning tone: "His Majesty is a grand strategist with the world in his heart, diligently toiling at governance—he is already weary. We sisters are fortunate to serve him; we should be all the more considerate and attend to him devotedly. Do not trouble His Majesty with such jealous squabbles! If these words of yours today reached His Majesty's ears, he would be displeased!"

Seeing the elder speak thus, the younger dared not talk back and obediently replied: "Yes!"

The sisters then turned to more pleasant topics, such as the Emperor summoning their father, the Prince of Wei and Military Governor of Tianxiong Army, Fu Yanqing, to the capital...

They talked until the younger Lady Fu showed signs of fatigue, whereupon the elder had attendants carefully escort her back to her hall. After the younger left, Empress Fu couldn't help but sigh—her once gentle and serene sister had now developed a heart for competing for favor.

Still, a trace of displeasure also crept onto Empress Fu's beautiful features. Those words her sister had spoken did have some effect on her heart—it was impossible not to harbor a sliver of resentment. Noble Consort Gao's rivalry with her was not something that had begun just a day or two ago.

Taking a deep breath, Empress Fu summoned her attendants. Between her phoenix brows was written full authority as she instructed: "Convey my words: to all the bureaus and offices of the palace, let those in charge strictly discipline their subordinates. Anyone who stirs up gossip or disturbs the peace of the palace shall be severely punished—no leniency whatsoever!"

Just as resentment was brewing among the palace women of the Han court, Liu Chengyou was inspecting the State Finance Commission. The Commission managed the realm's finances and had long been a seat of great power. He reviewed the detailed accounts of the court's revenues and expenditures so far this year.

It could be said that money flowed like water—the campaigns against Huainan and Shu alone consumed more than half, not counting subsequent rewards and post-war relief. The large-scale reforms in Hedong could not be funded by local treasuries alone, and the Eastern Capital had dispatched another batch of tax revenues. The costs of maintaining troops, official salaries, and military equipment were also major expenditures.

The money and grain the court had accumulated in previous years had been largely spent under the succession of major undertakings. However, the Great Han of today was no longer what it had been in its early years—revenues were plentiful, and most importantly, the share of local tax revenues being transported to the Eastern Capital had surged.

"Your Majesty, these are the officials drawn from the State Finance Commission, prepared to be sent to the localities to clean up the finances!" State Finance Commissioner Xue Juzheng presented a list.

"Oh, let me see!" Liu Chengyou took it for imperial review. There were quite a few—over twenty in all: "How are they to be assigned?"

"To answer Your Majesty, ten of them are to be sent to Guanzhong, and the rest to Hebei. These men have served as clerks in the Commission for many years, are familiar with tax regulations and governance, and have experience in financial management—all are capable hands!" Xue Juzheng reported.

"Who is the most outstanding among them?" Liu Chengyou asked.

"Zhang Mei, the Expenditure Bureau clerk. This man is shrewd and capable, skilled in accounting. He rose from a minor clerk and was promoted by the late Duke Wang. During the great Huainan campaign, he managed the provisioning of grain and military supplies—everything was handled in an orderly manner with virtually no errors!" Xue Juzheng replied, his words full of admiration: "Sending him to Guanzhong this time will lighten the burden of Fiscal Commissioner Yan!"

Liu Chengyou's interest was immediately piqued. Raising a finger, he said: "I want to see this man!"

Shortly after, a middle-aged official in a crimson robe, with a calm and steady bearing, entered and paid his respects: "Your servant Zhang Mei, Expenditure Bureau clerk, pays homage to Your Majesty!"

"Rise!"

"Thank you, Your Majesty!" Zhang Mei straightened up, slightly bowing his back, hands hanging at his sides, awaiting questions.

Liu Chengyou sat down as the occasion allowed, waved his hand, and appraised the man. Calm, steady, neither servile nor overbearing—his first impression was quite good.

Glancing at the list, Liu Chengyou asked: "Do you know the duty for which the court is sending you all to Guanzhong?"

"To answer Your Majesty, to assist the Fiscal Commissioner of the Southwest, Lord Yan, in cleaning up Guanzhong's finances and taxes!" Zhang Mei said.

"Do you know the court's purpose in doing so?" Liu Chengyou stared at him.

Facing the Emperor's piercing gaze, Zhang Mei showed no fear on his face and answered in a deep voice: "For years, local finances and taxes have been inconsistent, each region handling its own affairs. This cleanup is to propagate the court's tax laws, eliminate corruption and disorder, unify Guanzhong's finances, increase revenue for the court, and supply the southwestern army's needs!"

Hearing this, Liu Chengyou neither approved nor disapproved, lifting his eyelids slightly and saying: "Merely making you the Fiscal Commissioner of Binzhou would be wasting your talent. Since you handled the provisioning for the Huainan campaign so well, I'll give you another opportunity to shine—I promote you to Grain Commissioner of the Southwest, with sole charge of supplying the southwestern army!"

Zhang Mei was taken aback, but Xue Juzheng hurriedly reminded him: "Hurry and thank His Majesty!"

"Thank you, Your Majesty!"

"The southwestern border army is what I have prepared for the campaign against Shu. This concerns the grand strategy of state and military affairs. I entrust you with a heavy responsibility—you must handle it well, and no supply shall be lacking. I hope you will build on your past success and display your full abilities, so as not to disappoint my entrustment and expectations!" Liu Chengyou said.

Zhang Mei showed no excitement, remaining reserved, but replied solemnly: "Your servant will surely keep Your Majesty's teachings in mind, fulfill his duties diligently, and not betray his mission!"

Unlike the secrecy and covert preparations before the Huainan campaign, Liu Chengyou's plan to attack Shu was conducted with great fanfare, known throughout the city. Over in Fengxiang, Xiang Xun was drilling troops and adjusting garrison defenses, making quite a stir as well.

When news reached Shu, the Chengdu court was clearly alarmed. Just as Liu Chengyou had expected, the Shu sovereign Meng Chang had already begun reinforcing Qinfeng with troops from within his realm, stockpiling grain and weapons, and strengthening defenses. As for Li Tinggui, who had been defeated at Donghe Village, Meng Chang not only refrained from punishing him but issued an edict of consolation, keeping him at Fengzhou to command the main army in defense.

"Minister Xue, you've scattered all the capable clerks of the State Finance Commission this time!" Liu Chengyou looked toward Xue Juzheng.

Xue Juzheng replied: "The localities are precisely where men are needed. The Commission has trained and tempered them for just this grand purpose. I only hope they will be diligent in serving the king and not betray the trust placed in them!"

"What's the situation in Hebei?" Liu Chengyou asked.

"The Fiscal Commission office has already been fully prepared!" Xue Juzheng responded quickly: "Lord Li has served in office for many years and enjoys considerable prestige, with rich experience in governance. With Lord Li in charge, I expect there will be no cause for concern!"

Not long ago, Liu Chengyou had issued an edict establishing a Fiscal Commission in Hebei, appointing Li Gu—formerly Prefect of Hengzhou, Administrative Assistant of the Chengde Army, and Hebei Fiscal Commissioner—to take full charge of fiscal transport for all the prefectures of Hebei and the supply of the northern army.

"I naturally trust Li Gu's abilities. These years in Hengzhou, he has toiled and labored for the state—it hasn't been easy!" Liu Chengyou said: "An edict of commendation should be issued!"

"Your Majesty shows such consideration for his subordinates—how could we not exhaust our every effort to repay it!"

"Under the Southwest Fiscal Commission, how are the soldiers?" Liu Chengyou asked again.

"Army Supervisor Xiang, while drilling the troops, cut fifteen hundred soldiers, who were transferred to the Fiscal Commission's disposal!"

Liu Chengyou nodded and said: "Financial reform is bound to touch vested interests—money moves men's hearts. Without soldiers, it wouldn't be easy for mere clerks to carry out their duties. Very well, I'll have the Guanzhong Fiscal Commission's soldiers brought up to a full two thousand!"

"Yes!"

"There is one more matter on which I must seek Your Majesty's instruction!" After a moment's deliberation, Xue Juzheng clasped his hands and said.

"Speak!" Liu Chengyou said.

"When the late Duke Wang was in office, he established such levies as the 'province surcharge,' 'province discount,' 'deduction,' and 'appraisal markup' to increase revenue and alleviate the court's fiscal straits. At that time, finances were difficult, and these were done to relieve the nation's crisis. But to this day they have become corrupt practices, resented by scholars, farmers, artisans, and merchants alike. Your servants propose that they be abolished forthwith, to manifest Your Majesty's virtue!" Xue Juzheng suggested.

As mentioned previously, when Wang Zhang had held power, he had devised numerous revenue-raising methods to cope with the Han court's dismal finances. For instance, the "province surcharge": under the old system, for autumn and summer grain rents, for every hu of grain a peasant paid, an additional two sheng was levied, called the "sparrow and rat loss." Wang Zhang's regulation required that for every hu paid, an additional two dou be levied, called the "province surcharge."

Since Liu Chengyou had ascended the throne, although he had repeatedly issued edicts reducing taxes, he had turned a blind eye to the "province surcharge" system. Others like the "province discount" were all ways of increasing taxes and revenue through various means. In the early years of the state, they had indeed alleviated considerable pressure on the court's operations, and Wang Zhang had borne many curses on behalf of the Han Son of Heaven.

Hearing this now, Liu Chengyou waved his hand grandly and said directly: "This was my oversight. The people have suffered from these for too long. As for such corrupt practices, let them all be abolished by edict!"

"Your Majesty is wise!" Xue Juzheng was not at all surprised by the Emperor's decision, and bowed: "When the people hear of this, they will surely rejoice and feel Your Majesty's grace!"

"If they don't curse me in their hearts, I'll be satisfied!"

Without realizing it, Liu Chengyou had become increasingly mindful of his reputation.