Chapter 1539: New Paper Currency

"Your designs have disappointed me. Where do you place the Jiangshan of our Great Ming? Where do you place His Majesty, the Emperor of Great Ming? I have emphasized time and again that we must reflect the boundless expanse of our Great Ming's Jiangshan and embody the legacy of our successive sovereigns..."

In the Bureau of Paper Currency Administration, an office that had recently regained its strength, Wang Yan raged at everyone present, looking utterly frustrated by their inability to improve.

Lv Lv Shengyi stepped in to mediate for the group: "Magistrate Wang, do not be so impatient; things must be done step by step, for one cannot become fat from a single mouthful. Just tell them which parts need changing, and with gradual adjustments, we will eventually achieve the desired style."

Only then did Wang Yan cease his tirade and join the others in studying the new designs.

His purpose in speaking was not merely dissatisfaction with other designs, but rather to demonstrate his loyalty to the Emperor. After all, Lv Lv Shengyi was present; if he emphasized these points a few more times, Lv would report them to Jiajing, who would be pleased to know that this capable subordinate was constantly thinking of His Majesty the Emperor. Respect must be shown publicly, and even more so in private.

Creating currency relies on three points: materials, design, and anti-counterfeiting measures.

The materials must ensure the banknotes are durable and tough, waterproof, stain-resistant, and difficult to tear; anti-counterfeiting naturally means making them difficult to forge and easy for people to distinguish from fakes, which is reflected both in the materials and the design.

The design is the top priority, after all, since these are meant for public use; we must focus on their image and their symbolic significance.

After a period of research and discussion, it was finally decided that the largest denomination, one Guan Guan, would feature the successive emperors of Great Ming up to the current Jiajing, with images on both the front and back, otherwise, with so many figures, a single side would be too small, while the background would be the Forbidden City.

The remaining denominations of five hundred, one hundred, and fifty would depict the Three Sovereigns and Five Emperors and others who struggled for the Chinese nation, all as group portraits rather than individual figures.

The most widely used denominations of ten, five, and one would depict ordinary grassroots soldiers, artisans, and common farming peasants. All were rendered in a realistic style, and the models were real people. Wang Yan even instructed the newly arrived clerk, who loved writing unofficial histories, to record these chosen individuals in the historical annals.

The printing and production processes also presented a challenge. Since the currency featured many intricate details, the printing naturally had to be done online. Wang Yan led a team of craftsmen working for a long time before finally solving the problem.

The design was approved by Jiajing, who personally inscribed the four characters "Great Ming Paper Currency" and the denominations upon them.

Thus, the new paper currency passed Jiajing's approval; the opinions of the Grand Secretariat thereafter mattered little, especially since the Secretariat itself was supportive. They all understood Wang Yan's reasoning, and since it was being piloted right under their noses, it was an exceedingly good thing for the nation, leaving no reason to oppose it.

After all, if money could be printed in the future, deficits could be actively created, making the heads of the Grand Secretariat feel somewhat relieved. The officials below did not oppose it either, because in this way, various deficits caused by different reasons could be smoothed over effortlessly, allowing everyone to grow rich...

They all expressed appreciation for Wang Yan, saying that when it came to the ability to scoop up silver, Wang Yan was unmatched. He was no longer satisfied with scooping up current silver but was taking the nation as the entity to directly swindle the silver of tomorrow, the day after, and the day after that...

Although they also employed the traditional methods of landlord tyrants, issuing IOUs to swindle the future silver of the common people, they were ultimately not as awesome as Wang Yan, who actually dared to tie the imperial court together to pull off something big...

In any case, in the spring of the 42nd year of Jiajing, leveraging the commencement of various projects for the new year, including imperial initiatives and those in Daxing, wages were no longer settled in copper coins but paid in Great Ming Paper Currency.

The people's money could be spent anywhere within the borders of Great Ming. At the same time, to avoid panic among the populace, the Bureau of Paper Currency Administration established numerous money shops in Jingcheng, allowing people to exchange the banknotes for corresponding amounts of copper coins at face value.

Notices were also issued to notify every merchant that if common people brought paper currency to spend, they must settle transactions normally; otherwise, it would be considered a grave crime of attempting rebellion. Since Great Ming Paper Currency represented the Great Ming imperial court and His Majesty the Emperor of Great Ming, refusing to accept it meant disobeying the court and disrespecting the Emperor, warranting the severest punishment, which would truly be a terrible suffering.

Especially since the person overseeing this matter was Wang Yan, who was notoriously hard to kill, they could only hold their noses and accept it. But accepting it did not mean they gained no benefits.

"Magistrate Wang, these merchants truly deserve death! They accept the paper currency and then take it to the money shops to exchange for copper coins!" said the director of the Bureau of Paper Currency Administration.

No one is a fool; the merchants clearly understood that the amount of copper coins Wang Yan held was limited. Once the money shops could not redeem copper coins, the common people who had barely accepted and were willing to spend the paper currency would frantically rush to the shops to demand redemption, at which point the paper currency would naturally go bankrupt.

It was not merely a matter of the paper currency going bankrupt; accompanying that failure would be the collapse of Wang Yan's myth of invincibility. People desperately needed Wang Yan to fail, desperately needed to strike him down when he failed. Even knowing that Jiajing would protect him and prevent his eternal ruin, it would still damage Wang Yan's reputation.

Simply put, the difference between "Wang Yan will definitely succeed" and "Wang Yan might succeed" is worlds apart.

"Do not worry; I have long prepared for this. Go have people post notices at the entrances of the money shops stating that depositing copper coins in the shop yields an annual interest of thirty percent. Furthermore, if merchants urgently need funds for expansion, they may borrow from the money shops; the specific amount, duration, and annual interest rate must be discussed in detail, but we can guarantee the annual interest will not exceed ten percent."

"Does Magistrate Wang intend to have those common people with savings deposit their money to lend to those merchants? But what if the wealthy families deposit their money in the shops on one hand while using the paper currency to redeem copper coins on the other..."

Wang Yan shook his head: "Let them redeem; let them redeem as they please."

"Magistrate Wang should think thrice; the wealthy families possess vast amounts of money; no amount of copper coins would be enough for them to redeem."

"At least within a year or two, they cannot finish redeeming them; we still collect taxes, and we accept paper currency for taxes as well. After a year or two, once the paper currency stabilizes and the common people have accepted it, they will have no choice but to accept it. Trying to sabotage it then will be impossible."

Speaking thus, Wang Yan glanced at him, "You must also take the initiative."

"Please speak plainly, Magistrate Wang."

"If I say it outright, you won't get the hint." Wang Yan shook his head, sighing and waving his hand, "All money passes through the money shops; every inflow and outflow has records. Who redeems much paper currency and who deposits much copper coin is all quantifiable. Why not investigate along those lines? If you find someone displeasing, and coincidentally this person is someone whose elimination would cause some stir but not affect the overall situation, just seize that person and crush them to death.

Especially those ignorant imperial clan members; catching one can implicate other powerful nobles and wealthy families, allowing us to eliminate a whole string. Even if we do not kill them, we can demote them to commoners. This not only cleanses the household for His Majesty and prevents shame to the imperial family but also reduces court expenditures. In this process, you, as the handler, can also earn quite a bit of silver; why not do it?"

"Oh my, Magistrate Wang, you make it sound so easy; my Bureau has no personnel and no authority; what can we do? Who can we arrest? Moreover, my head is not as hard as yours; I am very easy to kill."

"How did you even become an official? How did His Majesty let you manage this affair?"

Wang Yan looked utterly disgusted, "Our Great Ming has a Paper Currency Law; this law was formulated by you, the chief official, together with the Ministry of Justice, the Censorate, the Court of Judicature and Revision, and the Giving Matters Officials. Having established the law, you use it to find faults, then apply to form an inspection team. After all, the money shops hold money and need protection, the printing bureau requires secrecy, the warehouses storing currency must be strictly guarded, and the destruction of banknotes needs strict supervision; is it not normal to have a law enforcement and security force?

You submit a memorial requesting this, and His Majesty will surely agree, and the Grand Secretariat will approve it. Then you will have the law and the personnel, and you can even request transfers from other departments to act alongside you; wouldn't that mean you can arrest whoever you wish? With the Paper Currency Law and the Great Ming Code in hand, there is no one you cannot arrest."

Having been taught the ways of framing and framing by Wang Yan, the director of the Bureau of Paper Currency Administration diligently went out to post the notices...

This countermeasure was appropriate; the wealthy families could not possibly be so united as to either all refuse to deposit money or all come to borrow; as long as some participated, the system could function.

Moreover, within the city, there were still quite a number of small merchants without such powerful backgrounds; they scrambled everywhere to build connections, operated with great hardship, and despite working themselves to death every year, saved very little wealth.

During Wang Yan's one year of governance in Daxing, those who benefited the most were precisely this type of person. They had some ideas and some connections, but not enough to be solid, and doing business required facing considerable exploitation.

But under Wang Yan, there were not so many messy complications; as long as one obeyed the laws, paid taxes according to regulations, and operated with integrity, one could run a stable business without fear of anyone employing underhanded tactics. As long as matters stayed within the normal scope, Wang Yan did not interfere; for those outside the scope who were reported to Wang Yan, those who did not follow the rules truly suffered disaster.

On another front, the people of Daxing earned money and gained certain consumption capabilities, leading to diversified spending. The goods purchased expanded from mere daily necessities of the past to include other non-essential items.

The main consumer market in Jingcheng was in the Dongcheng, where these merchants naturally earned pots full and brims full. After a final accounting, even after paying the cleaning fees, the silver earned was no less than before. Of course, this excluded the fines for fire hazards; under that wave of fines, all merchants in the Dongcheng lost money throughout the previous year.

Only those who later saw the opportunity, regarded Wang Yan as an upright official, and dared to invest and start businesses truly made money.

At the same time, those truly eager to expand were precisely these people. Having risen by seizing opportunities, they naturally wished to seize opportunities to grow and strengthen. They were not involved in such high-level struggles, thinking only of earning silver for themselves, so they naturally would not join the wealthy families in demanding redemption.

Therefore, after the notices were issued and people understood the government's intentions, those who wanted to advance went to borrow loans. It was basically very smooth; after inspecting the industries and conducting investigations, funds were released quickly. Short-term loans lasted a few months, the longest two years, with interest rates mostly around four, five, or six percent.

After passing the audit, the money shops directly disbursed the loans, lending out stacks upon stacks of paper currency, which then continued to diffuse through these people. Borrowing meant borrowing paper currency, while depositing meant depositing copper coins; the purpose was to recover copper coins while simultaneously using finance to stimulate economic development, promote market transformation, and advance the development of productivity and creativity.

This requires a process, but when quantitative change reaches a certain degree, it becomes an unstoppable momentum. Workshops develop, hiring laborers; laborers earn money and consume; the market prospers and competition intensifies; product prices drop, stimulating creation; products iterate, leading to further development and further competition...

As long as such a virtuous cycle is maintained, infinite progress is possible.

What Wang Yan needed to do was to be the guide and the regulator. When others had no ideas, he proposed ideas; when the path went astray, he straightened it back. That was all.

Developing in this manner, Great Ming would eventually become a great empire enduring alongside the sun and moon...

Once the loans were launched, people understood where the deposit interest came from; seeing so many people taking out loans, common people with surplus wealth confidently deposited their copper coins in the money shops. The wealthy families also came to deposit copper coins and silver, while on the other hand using the paper currency they earned to extract copper coins from the shops.

They did this with no profit in mind, nor did they have the ability to smash the paper currency market or cause the paper currency to collapse. They simply did not believe in the future of the paper currency, nor did they believe it could remain strong.

But on the other hand, they no longer used silver notes for large transactions, as those incurred handling fees, and instead began settling with paper currency. After all, one tael of silver equaled one large note of one Guan Guan; their businesses basically involved only a few hundred notes, which was even more convenient than silver notes.

In any case, the paper currency remained strong for now, and the money shops opened day by day, gradually spreading to all county towns throughout Shuntian Prefecture.

This expansion was not Wang Yan's intention but occurred naturally with commercial transactions; gradually, it naturally spread throughout the entirety of Great Ming.

By that time, the true challenges for the new paper currency would begin. Whether the paper currency could be stabilized to ensure the sound operation of the economy and high-speed development would ultimately depend on mathematics, making the final judgment based on comprehensive data from Great Ming to guarantee the strength of the paper currency.

As for the lack of support from the wealthy families, Wang Yan planned to have people occasionally discover several large copper mines, using a mix of truth and falsehood to crash the price of copper, and then stir up the situation by creating some counterfeit coin incidents; thus, a single sheet of paper currency worth one wen could exchange for multiple copper coins, directly halving the assets of the wealthy families.

In short, the matter of the treasure notes developed quickly and steadily; after a period of time, the salaries of the Jingcheng officials and the troops stationed in Jingcheng were all paid in treasure notes.

Amidst a brief firmness and a sudden surge of market prosperity, people's worries about the treasure notes vanished entirely; all that remained was the pursuit of greater wealth.

Leaving other places aside, Daxing was bustling with fervor; one workshop after another was established outside the city, where both urban residents and rural folk worked.

Many markets in Daxing grew even more prosperous, with foot traffic far exceeding that of the previous year; the common people wore smiles, spoke loudly, held their backs straight, and had hope in their eyes...

In the autumn of the forty-third year of Jiajing, a carriage rolled slowly along the flat, wide official road, passing through the Daxing region and arriving in Jingcheng...

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