Chapter 419: Banknotes

"This... can be spent as silver? Manager Zhou, I've been working with your Four Seas Trading Company for several years now, and we've done business many times—don't try to cheat me! If your esteemed firm is having trouble with cash flow, I don't need payment in silver for this batch of goods; settling together with the next shipment would be no problem at all. But don't try to fob me off with these gaudy scraps of paper!"

At a shop of the Four Seas Trading Company in the capital that specialized in silk and cloth, He Junming held more than a dozen exquisite paper notes, each the size of a palm, with an ochre-yellow base color and floral-and-bird patterns and writing on the background, and said to Zhou Wei, the shop's manager, with a look of doubt and confusion.

He Junming, now past forty, was a traveling merchant from Suzhou Prefecture. His family ran a weaving workshop, and he himself traveled north and south trading goods, having accumulated a considerable fortune over more than a decade.

Because He Junming had maintained a good reputation through years of business and manufacturing, and was known for his generosity, the Four Seas Trading Company had chosen to partner with him, having him supply goods to the silk and cloth shops they operated in the capital region. The two sides had now been cooperating for two years.

Normally, He Junming rarely escorted cargo to the capital himself—usually his cousins from the family took turns delivering goods—but because this time he needed to purchase a large quantity of farm tools for resale, and the Four Seas branch in Suzhou Prefecture had told him he must bring banknotes from the capital to make the purchase, he had taken the opportunity to escort a shipment of cotton cloth to the capital.

"Haha! It's understandable that Master He doesn't know the inside story. Let me tell you—this thing is called a banknote, and this piece of paper is no ordinary thing. This is a method the Emperor himself came up with—truly ingenious! Now all of our Four Seas Trading Company's business is settled with these. All you have to do is take the banknotes back to Suzhou, hand them to the newly established Four Seas Money House, and you can withdraw an equivalent amount of silver to buy goods! Come, come, let's sit down and talk! Someone, serve tea!"

Zhou Wei showed not the slightest sign of annoyance at He Junming's confusion and misunderstanding. Instead, he cheerfully invited him to sit in the back hall and called out his orders loudly.

In no time at all, a young apprentice came from the rear courtyard carrying two cups of hot tea to the second hall, set them on the low table between the two men, and turned and withdrew.

"It truly was a method the Emperor thought up?! I was speaking out of turn just now—I hope Manager Zhou will be lenient, very lenient! Might I ask, Manager Zhou, what wonderful uses does this thing have? Why not enlighten me?"

He Junming quickly changed the subject, lest Zhou Wei take offense. Fortunately, judging by Zhou Wei's attitude, it seemed he hadn't taken it to heart.

Only upon hearing the words "the Emperor" did he suddenly come to his senses—because of his frequent dealings with the managers of the Four Seas Trading Company, he had subconsciously overlooked the company's background.

"Hehehe, even if you hadn't asked, I would have explained it to you anyway! Master He, let me ask you: you've been in business and manufacturing for years—whether it's daily purchasing or collecting payment for goods shipped, you always have to carry large amounts of silver and copper coins, don't you? If you're trading too many goods, that money has to be hauled by cart and carried by men, doesn't it? And you have to worry about running into bandits, losing both your goods and your life—am I right?"

Zhou Wei asked with a beaming smile.

"Manager Zhou, aren't you asking what you already know? You're a seasoned hand who's been in business for years—you know full well the bitter and sweet of the traveling merchant's trade! To be honest with you, for this trip to the capital to purchase goods, I've brought five thousand taels of silver with me, planning to buy some hides and herbs to take back for sale. These silver taels are guarded and carried by two strong men from my workshop—otherwise, I truly wouldn't feel at ease!"

He Junming wasn't being secretive. Since the two sides had begun cooperating, their relationship had always been good, and besides, the farm tools he wanted to purchase this time were also to be bought from the Four Seas Trading Company.

The manager of the Four Seas branch in Suzhou had told him that the Capital Armory had now forged large quantities of hoes, iron spades, plowshares, and various other farm tools. The Four Seas Trading Company had purchased them for exclusive distribution, but partners like him needed to make a personal trip to the capital before they could take delivery of the goods.

The farm tools produced by the Capital Armory were hot commodities—they were forged from genuine materials, and were both sharp and durable, earning widespread praise throughout the Great Ming.

Ever since the Emperor issued an imperial edict last year—that any subject of the Great Ming, regardless of status, who newly reclaimed wasteland would be exempt from taxation for three years—the measure had sparked a massive wave of land reclamation across the Great Ming.

Whether common families or country gentry and officials, everyone threw in large amounts of manpower and resources to begin opening new land, and the supply of farm tools fell short of demand.

Because He Junming had a good relationship with the Four Seas Trading Company, he was qualified to participate in the distribution. Otherwise, no matter how much money you had, you couldn't take goods from the Four Seas Trading Company.

"Master He, take a close look—these banknotes have their denominations printed on them. See, the one printed with one hundred taels can be used as silver of equal value, and the rest follow the same principle, each equal to its corresponding amount of silver. What our shop owes you this time is one thousand two hundred thirteen taels; you haven't collected the three taels, so the total is one thousand two hundred ten taels of silver. Think about it—if I gave you that much silver, you'd have to hire carts and men, which adds another expense, and you'd be on edge the whole time worrying about bandits eyeing you. But these banknotes save you all that trouble. You just tuck them in your bosom and walk down the street—who would know you're carrying a fortune?"

This was plain to see at a glance. Zhou Wei explained it briefly, and He Junming immediately understood the benefits of the banknotes.

"These banknotes really are most convenient! Compared to the old way of carrying goods on poles and shoulders through the streets, they save countless troubles! A fine thing—truly a fine thing! But then again, Manager Zhou, we're not outsiders here. I trust that I can use these to purchase goods from your firm. But what if someone with ill intent sees these and has them counterfeited, or the holder loses them and someone else takes them to your firm to buy goods and then sells them off? Wouldn't your firm lose its entire capital? And wouldn't the holder also lose a huge sum of money for nothing?"

Having been a traveling merchant for years, dealing with all sorts of people and suffering no small number of losses, He Junming spotted the enormous flaw in the banknotes at once.

"Master He truly is an old hand at commerce—you can see the crux of the matter at a glance! Hehe! But Master He, since this thing was a method the Emperor thought up, and given the Emperor's heaven-given genius, how could he have failed to anticipate such a major defect?"

Zhou Wei picked up his hot tea, savored two leisurely sips, set the cup down, and spoke with the same smiling expression.

"I say, Manager Zhou, stop keeping us in suspense! Just tell me—how does the Emperor guard against this?"

Seeing Zhou Wei's unhurried manner, He Junming felt an itch of impatience, like a cat clawing at his heart.

"Hahahaha! Alright, alright, alright—I'll tell you honestly, Master He, so you can put your mind at ease! Master He, please take out one banknote, and I'll explain it to you!"

Seeing He Junming's itching curiosity, Zhou Wei couldn't help but burst into laughter.

He Junming hastily reached into his bosom, pulled out the stack of banknotes he had just tucked away, picked out one printed with the words "one hundred taels," and handed it over.

After taking it, Zhou Wei leaned in toward He Junming and pointed at the banknote with his index finger, saying, "Master He, do you see this? The floral-and-bird design on this hundred-tael note was painted by a famous painter of the palace, then carved onto a printing block and printed on this fine mulberry-bark paper. Only a few workshops can produce this kind of paper, and the several hundred lines of poetry on it were carved by master micro-engravers by hand—ordinary people simply cannot counterfeit it. And if the holder should happen to lose it, that's no problem either. The Four Seas Money House won't pay out the silver until the tenth day after receiving a banknote, which gives the holder ample time to report it to the authorities and register the loss in person at the money house!"