Chapter 544: When Leeks Become Spirits

After suffering several setbacks earlier, Feng Yan had learned his lesson. When Diwu Lun announced the strategy of "illicit minting to disrupt the currency" against Gongsun Shu, Song Hong was still frowning, considering whether such an act was morally justified, but Feng Yan had already begun heaping praise on Diwu Lun.

"Your Majesty, this move will cause the Cheng family to collapse from within without spending a single soldier. It rivals the stratagems of Duke Huan of Qi and Guan Zhong — the Qi silk and Lu gauze affair, the Mount Heng scheme!"

Both were cases of economic warfare recorded in the book Guanzi: Guan Zhong encouraged the wearing of Lu gauze in Qi and the purchase of Zhongshan weapons, luring large numbers of farmers in both states to abandon their fields and switch to weaving gauze or crafting weapons. Finally, Guan Zhong halted trade in both, collapsing the two states' economies so they could only submit to Qi.

But after Feng Yan withdrew, Song Hong said gravely to Diwu Lun, "Your Majesty must not grow smug from Feng Yan's flattery. These so-called mercantile stratagems of Guan Zhong were fabrications by Warring States strategists and are largely unreliable."

Diwu Lun agreed with Song Hong's judgment. Given the trade volume and speed of information in the Spring and Autumn period, waging economic warfare was sheer fantasy. The author of Guanzi had simply exaggerated the conditions of the Warring States and Han dynasty tenfold and mythologized Guan Zhong.

He also caught the unspoken implication in Song Hong's words and said with a smile, "What the Superintendent of the Lesser Treasury means is that illicitly minting the Cheng family's iron coins will do little to help the larger situation, and you are advising me not to resort to such petty cleverness?"

Song Hong said, "Exactly! For a state to rise, it must first secure its foundations. Scholars, farmers, artisans, and merchants are the pillars of the state. Coinage is the wellspring of currency, linking the goods and trade of the provinces and commanderies. Rather than pondering how to illicitly mint enemy coinage to make them collapse on their own, Your Majesty would do better to settle our dynasty's grand coinage plan as soon as possible!"

Song Hong could not help his urgency. Over four years had passed since Diwu Lun entered Chang'an, yet the new court's coinage plan remained undecided. Now, among the common people, some traded privately using the former Han wuzhu coins, while more simply bartered goods directly. Earlier, when Diwu Lun had given no instructions, Song Hong had assumed he simply did not understand coinage. But today, hearing him critique iron coins with such expertise, Song Hong understood: this Emperor had likely long since made up his mind!

"Ah, Song Zhongzi." Diwu Lun pointed at Song Hong and said with a laugh that was half-scolding, "Since ancient times, it has always been the Son of Heaven who asks his ministers for counsel. The Superintendent of the Lesser Treasury controls the realm's wealth and goods; coinage is your responsibility. Yet now you turn around and question me."

Song Hong bowed in apology: "Your servant is simply at his wits' end. The realm's currency, from Han to Xin, has accumulated abuses for too long, and Wang Mang's repeated reforms left a wreckage for Great Wei to inherit — now it is nearly impossible to set right. Your servant is dull-witted; I have racked my brains and found no good policy. Since Your Majesty is brilliant, wise, and divinely martial, and speaks of coinage as if counting family treasures, your servant dares to beg Your Majesty's instruction. If it benefits the realm, your servant would rather resign this post of Superintendent of the Lesser Treasury."

Diwu Lun had originally planned to delay a while longer, until the realm was unified, before making a decision. But on reflection, getting his currency reform plan underway early would also be a good thing, so he said, "I understand your difficulties, Minister Song. The chaos of coinage in the Central Plains is worse than in Ba-Shu by more than tenfold!"

The situation had developed to this point not solely through Wang Mang's fault. In Diwu Lun's view, the root cause lay with the Han dynasty. Ever since Emperor Wu of Han unified the currency and issued wuzhu coins, the Han had minted coins like mad to raise the vast funds needed for campaigns against the surrounding barbarians.

Diwu Lun had read the Han-era bamboo slips submitted by the Lesser Treasury. The copper mined in a single year back then, converted to later-era units, was at most a little over two thousand tons, yet over seven hundred tons of it was used to mint coins.

As a result, from Emperor Wu of Han to Emperor Ping of Han, the Lesser Treasury's statistics showed that the central government and the commanderies and kingdoms together minted 28 billion wuzhu coins. Counting the concealed amounts, 30 billion was certainly no exaggeration.

Calculated per capita, at the Han dynasty's peak of sixty million registered households and subjects, that came to five hundred coins per person — not a large sum. But most of these coins were hoarded in the hands of wealthy merchants and great families. Prices climbed year after year, and the wuzhu coin depreciated severely, so much so that by the time of Emperor Yuan of Han, ministers were already proposing abolishing copper coins and using goods in kind for taxes, rewards, and official salaries.

Wang Mang's currency reforms were merely an attempt to salvage the situation, but they only made things worse, leaving Diwu Lun an enormous, colossal mess — so dire that only a sage could remedy it. Though Song Hong was a capable official, he could not transcend the limits of his era, which was why he was utterly at a loss. This honest man had actually resorted to playing the rogue with Diwu Lun...

Diwu Lun had no choice but to personally guide Song Hong step by step: "Minister Song, tell me — what proposals have the various officials of the Lesser Treasury put forward?"

Song Hong said, "Some have proposed that since, in the late years of the Mang dynasty, none of the currencies worked and the people had long since secretly returned to using wuzhu coins — and the same holds true now — Your Majesty should issue an edict restoring the Han-era wuzhu coin."

Diwu Lun scoffed. The person who proposed this idea was either utterly selfless or both stupid and malicious. Minting coinage is a symbol of political authority. Even as foolish as Gongsun Shu was, he knew he could not recognize the Han wuzhu, or his authority would be severely damaged.

Furthermore, once the legitimacy of the Han wuzhu was recognized — and there were now ten to twenty billion coins scattered among the people — this move would inevitably cause officials and commoners across every province and commandery to scramble to fleece the government.

Song Hong said, "Your servant also considered this a proposal that would harm the state. The one who proposed it has already been demoted and dismissed. However, someone else proposed that the Three Offices of Shanglin should be ordered to mint a Wei wuzhu coin."

Diwu Lun still shook his head. He had already explained earlier: even the lowest-denomination wuzhu coin had a value assigned to it far exceeding the copper itself, and illicit minting could still reap enormous profits...

"May I ask the Superintendent of the Lesser Treasury: where are the realm's copper and tin mostly located?"

Song Hong said, "In the south, mainly concentrated in Yuzhang in Yang Province, Jiangdong, and Huainan."

There it was, then. Diwu Lun would have liked to mint copper coins, but the copper and tin producing regions were mostly in Liu Xiu's hands.

Diwu Lun asked again, "During the reigns of Emperors Wen and Jing of Han, how did Liu Bi, the King of Wu, enrich his state and strengthen his army, and launch the Rebellion of the Seven Kingdoms?"

Song Hong sighed: "Liu Bi minted coins in the southern mountains. The Wu coins were of excellent quality and circulated throughout the realm; Han coins could not compete with them, and so Wu grew powerful."

Indeed. While Wei was arranging for the illicit minting of iron coins to trip up Gongsun Shu, would the newly proclaimed emperor Liu Xiu not dig a few pitfalls for them? Even if Liu Xiu's reach was limited, the powerful local magnates among the common people could simply melt down the Han wuzhu coins their families had hoarded for generations and illicitly mint them.

Because the Fifth Emperor was deathly afraid of being fleeced by others, the copper coin path was basically a dead end.

Song Hong then presented a memorial from a certain official of the Lesser Treasury: "Someone has reiterated the words of the great Han Confucian Gong Yu, saying that minting coins and mining copper keeps a hundred thousand people from farming each year, while opening mountains and mining, and illicitly minting coins for profit, causes many commoners to fall into the punishment of illicit minting. The rich store coins until their estates overflow yet still feel unsatisfied. Coinage unsettles the people's hearts, making them abandon the root and chase the branch. The source of all the realm's rampant wickedness is none other than money! Wang Mang's reckless minting of currencies threw the nine provinces into chaos."

"Therefore, we should seize this excellent opportunity to abolish the office of coin minting in one stroke. Taxes and salaries should all be based on cloth, silk, and grain, so that the common people will focus on farming and sericulture."

Song Hong said, "Within the Lesser Treasury, half the officials endorse this proposal."

It took Diwu Lun a long while to force out a single sentence: "Alarmist nonsense — giving up eating for fear of choking!"

"They were overly provoked by the chaotic currency changes under the Xin Mang regime," Song Hong hastily explained on his subordinates' behalf.

In Diwu Lun's view, this group could not be called malicious — they were simply as foolish as old Wang Mang, with no understanding of economics whatsoever.

Wang Mang believed that once the coinage was sorted out, all problems would be solved. This group reached the same destination by a different route, blaming all the world's disasters on money — abolish it, and they could return to the golden age of the Three Dynasties.

Diwu Lun wished the commodity economy were even more developed; how could he be willing to return to a purely barter-based natural economy?

He therefore had someone bring over a diagram and drew a pyramid-shaped structure on it, dividing it into three tiers. He had items placed at the bottom of the pyramid: a pile of grain, a piece of silk, a small piece of hemp cloth, and even a handful of salt and an iron needle.

Pointing to this base, Diwu Lun said, "This is the foundation of all the realm's commerce. The people take food as their heaven, and they need cloth to clothe themselves and ward off the cold. A person cannot go a month without salt, nor can a farmer or weaver do without a hoe or an iron needle."

When the realm falls into chaos and currency loses its value, these tangible goods become hard currency.

Diwu Lun then placed a gold ingot at the tip of the pyramid: "Minister Song, now you understand why gold has been the superior currency through the ages. It is also our dynasty's sole legal tender."

The gold in Diwu Lun's possession came mainly from confiscating Wang Mang's treasuries — as much as seven hundred thousand jin, equivalent to over one hundred and seventy tons.

In the early days of his enterprise, when Diwu Lun's foothold in Guanzhong was unsteady and he urgently needed to encourage his soldiers to fight, he distributed over two hundred thousand jin to them in succession. But later, he switched to using land, fields, or grain as compensation. The remaining five hundred thousand jin of gold was all stored away. Any gold artifacts captured by the generals on campaign also had to be turned over to the court without exception.

"Gold serves as the superior currency. In Han times, the value of copper coins fluctuated; only gold remained constant."

This already had the rudiments of a gold standard. But the Han emperors frequently bestowed gold upon people, and the feudal lords were fond of burying gold ingots with them in their tombs, so the gold held by the court and among the people grew ever scarcer.

Drawing lessons from the previous dynasty, Diwu Lun set the tone for Wei's monetary policy: "Gold must not be casually used for circulation or rewards; it may only serve as a reserve. All goods shall be priced based on gold as the standard."

No wonder Diwu Lun had begun proclaiming to the outside world, with tenfold exaggeration, that the Emperor sat on several million jin of gold...

"However, gold's value is too high. If it is allowed to circulate freely, it will inevitably be broken up and lost. To ensure smooth flow from top to bottom, a subordinate currency must be established between gold and tangible goods."

Diwu Lun placed a copper coin in the blank space at the center of the pyramid — this was what had connected gold and tangible goods during the Qin and Han dynasties — but then he immediately removed it.

"Since copper coins are not feasible for now, Minister Song, our dynasty must find another suitable object to replace them."

"May I ask Your Majesty, what object is that?" Song Hong instantly grew wary. He could not help it; having been tormented by cowrie shells, tortoise shells, and the like during the Xin dynasty, he was truly afraid, dreading that Diwu Lun might propose something bizarre again.

Diwu Lun's gaze actually turned toward... the paper on the desk.

Using gold as the standard currency and issuing paper notes tied to the value of gold as a credit currency — Diwu Lun had indeed been tempted. That way, the cost of currency would be extremely low, and the new papermaking technology the court possessed had not yet fully spread. He could madly fleece the northern provinces and commanderies...

But Diwu Lun quickly dismissed this idea himself.

A similar credit currency had been issued by Emperor Wu of Han, called "white deer coins." White deerskin was collected as the material, trimmed with embroidered borders to make the currency, each piece valued at four hundred thousand coins. It was stipulated that when princes and imperial clan members entered the capital for an audience, they had to buy a piece from the court to use as wrapping for the jade they presented.

Even a blind man could see that Emperor Wu of Han, utterly broke from waging war and driven mad by poverty, was blatantly fleecing the princes. Because it was so shameless, it provoked enormous backlash and was abolished not long after.

Later, Wang Mang's issuance of large-denomination currencies was probably inspired by this.

However, thanks to Wang Mang, after being ruthlessly squeezed by knife coins, the "large cloth, yellow thousand" coins, and the like, the realm's leeks had all become spirits. If Diwu Lun tried similar tricks again, whether anyone would buy into it was uncertain, and even if he succeeded for a time, the credibility he had accumulated over the years would be exhausted in a single day — truly not worth the loss.

"This matter is far too ahead of its time. In governing a great state, it is still best to be prudent." Diwu Lun abandoned his wild idea. His gaze, in truth, had fallen on a silver ingot resting on that sheet of paper...

"Minister Song, you mentioned earlier that apart from the State of Chu, Emperor Wu of Han also minted silver coins as currency. I wonder what their value was?"

Just as expected! From the moment Diwu Lun said, "Money is naturally gold and silver," Song Hong had already formed a hunch. Now he said, "Your Majesty, in the fourth year of Yuanshou under Han Wudi, three grades of white metal were minted, using a silver-tin alloy as the coin material."

"The first type was called the 'white select,' a round coin with a dragon design, weighing eight liang and worth three thousand cash each. The second was a square coin with a horse design, weighing six liang and worth five hundred cash. The third was a turtle-design coin, weighing four liang and worth three hundred cash. But these three silver coins were minted only once, extremely rare, and never circulated among the people."

Diwu Lun nodded. "And the silver currency Wang Mang minted?"

Song Hong said, "There were two grades. The superior grade was Zhuti silver, one cake weighing eight liang, worth one thousand five hundred and eighty wen in cash; ordinary silver was worth only one thousand wen in copper cash."

Diwu Lun did a quick calculation. "In Han times, eight liang of gold was equivalent to five thousand cash. That means five jin of silver could only be exchanged for one jin of gold?"

Song Hong said, "Silver is dull in color, far inferior to gold. People commonly use it to make vessels. If not minted into coinage, it can only be valued at ten to one."

Diwu Lun nodded. "How much silver does the court hold in reserve?"

Song Hong said, "It is mainly used by the Privy Treasury to make vessels. Silver in ingot form amounts to less than one hundred thousand jin. Even adding the silverware in the palace, it does not exceed two hundred thousand jin."

This was, of course, far from sufficient. Diwu Lun spread his hands. "This is precisely why I have been unable to finalize our dynasty's currency system. Silver would be an excellent lower-tier coin, but if the court's silver reserves are insufficient, how can we issue it? If we rush to announce this, powerful magnates among the people could simply melt down silver vessels and mint coins illicitly."

Diwu Lun seemed to be growing somewhat impatient, wanting to dismiss Song Hong in a few words. "This matter cannot be rushed. Let the people use silk and cloth as the lower-tier currency for now, and endure it for a few more years. The Privy Treasury will secretly purchase silver vessels from the people and build up reserves. In five or ten years, when the realm is largely settled and the silver-producing lands of the south have submitted to Wei, I can then issue an edict making silver an auxiliary currency, circulating alongside gold, and revive the flow of goods and trade across the land."

After hearing Diwu Lun's solution, Song Hong looked slightly disappointed. This Emperor had laid out the principles of economics and currency with perfect clarity, but when it came to prescribing the remedy, he was far more cautious than Wang Mang.

After all, Diwu Lun knew that in such matters, either one does not act, or if one acts, it must succeed! Otherwise, it would be lifting a rock only to drop it on one's own foot!

Song Hong had no choice but to accept the order, assenting and taking his leave. But after he left, a glint flickered in Diwu Lun's eyes. He dismissed everyone else and sat alone in deep thought.

In the plan Diwu Lun had laid out to Song Hong, only half of it was actually the truth.

"Whether a gold standard, a silver standard, or a bimetallic standard — none of them truly suit ancient China."

For one simple reason: the native production of precious metals was far too low, yet the vast market of tens of millions of people — even if still dominated by a natural economy — still generated an enormous volume of trade. That was precisely why the Han dynasty had to mint hundreds of billions of copper cash in one go. Once the realm was stabilized, Diwu Lun would sooner or later have to bring copper cash back into play.

So hidden within Diwu Lun's plan was a longer-term "open scheme."

"Since most of the gold is in my hands and not easily circulated, silver will become the main force. Apart from official minting, seeing profit to be made, powerful families will also take up illicit coining as a common practice, and grave robbers will dig open ancient tombs in search of gold and silver."

"But even if every ancient tomb were opened, all the silver in court and countryside were pooled together, and every silver vessel melted down, it would still fall far short of meeting the needs of the Nine Provinces!"

This was precisely the direction Diwu Lun was deliberately steering toward. A gold and silver famine would turn the greedy eyes of the Central Plains, desperate for precious metals, toward the south!

Diwu Lun looked at the map of the realm's mineral deposits submitted by the Privy Treasury. The known major gold mines numbered only five: the Ru-Han region of Yuzhou; Poyang in Yuzhang and Danyang Commandery in Yangzhou; Lishui in southern Jing; and Hanjia and Yongchang in Yizhou.

In the north, there was only one. All the rest were in the sparsely populated lands of the south.

As for silver, the situation was even more pitiful. The silver mines of the Central Plains were essentially exhausted. The place that produced the most silver was merely Zhuti in Qianwei Commandery.

The actual mineral deposits were certainly more than just these few places, but it was fated that the south would have more and the north less, and most were in remote locations. This was simply an objective law.

Diwu Lun thought to himself, "Once the realm is fully settled, to mine gold and silver, the landless people of the Central Plains will press forward wave after wave, heading to every region in search of sudden wealth. Yet planting beans and reaping melons — hacking a path through thorns and brambles to open the forests, pioneering the inner frontiers of the south — would be no poor method either."

It was easy to imagine: every jin of gold and silver transported northward would surely be soaked in blood — that of their own people, and of the local natives…

And when the easily mined gold and silver of the south had been largely dug out, and the gold and silver prospectors, unable to return home, were forced to remain where they were — at just that moment, news of the discovery of a massive silver mine on that island of "different lands, same sky" would, with perfect timing, spread like wildfire through the Central Plains, drawing a fresh wave of prospectors to brave every danger and rush overseas!

Diwu Lun silently picked up the gold and silver from the table, examining their luster. "Gong Yu of the former dynasty said that gold, silver, and precious goods are corrupting things that bewitch men's hearts, the root of all evil. He was not wrong, in fact."

A Palace Gentleman attending in the distance quietly raised his eyes and saw that Diwu Lun seemed to be playing, raising and lowering his hands as if they were a scale for weighing value. The gold cake and silver ingot rested in his left palm, while his right palm held nothing at all.

Only Diwu Lun knew that on the other side of this scale was his own "conscience"!

…

As Emperor, Diwu Lun's daily schedule was packed full. That very morning, just after finishing breakfast, he had to listen to Feng Yan recount his experiences and observations from entering Shu. At noon, he had wrangled with Song Hong over future monetary policy.

Only moments after Song Hong left, with not even time for a midday rest, Diwu Lun ordered a carriage prepared. Leaving the palace in plain clothes and a light carriage, he went straight to the noble residences at the Northern Watchtower.

Wei's Front General Wan Xiu had reported illness due to a back injury and had only returned from Liangzhou half a month ago. Diwu Lun had excused him from court audiences. At this moment, Wan Xiu was lying prone on a couch, leafing through a paper book, while his wife gently massaged his lower back.

Just then, they heard the main gate creak open, followed by a flurry of startled cries from the servants in the courtyard. Wan Xiu's wife turned her head in surprise, but Wan Xiu, worthy of a great general's composure, continued reading his scroll as before.

It was only when the household steward came running over in a few quick strides, straining to keep his voice low as he announced, "His Majesty has come in person," that Wan Xiu started in alarm and tried to rise from the couch — but twisted the painful spot, his face instantly contorting in agony.

"Junyou, do not move."

Not treating himself as an outsider, Diwu Lun excused Wan Xiu's wife from performing the formal greeting. He walked to Wan Xiu's sickbed, stopped him from getting down, and placed a hand on Wan Xiu's injured area, jesting, "You, sir, are the waist and gall of my court. This waist of yours must be well protected."

Wan Xiu was ashamed. Cupping his hands from the couch, he said, "The realm is in strife, yet your servant lets a minor injury hinder state affairs. I am guilty."

"You fought fiercely in Liangzhou. The battle of Qishan Fortress allowed our army to seize the advantage of the upper reaches and grip the throat of the Shu people. Your achievements are towering."

Diwu Lun glanced at the scroll by Wan Xiu's hand. "What book are you reading?"

He picked it up and saw it was a "Eulogy for Zhao Chongguo" composed by Yang Xiong. Diwu Lun understood at once: Wan Xiu's heart was still on the battlefield.

Given Wan Xiu's physical condition, he could not fight again for three to five years. But sitting in the central command to provide counsel would not be bad. Diwu Lun therefore sighed and said, "I came to the noble residences today, first to see your injury, and second, because I have matters concerning Liangzhou to consult you about."

"Your servant will speak all he knows without reserve!"

Diwu Lun paced about the room, then returned to Wan Xiu's side and said in a low voice, "I will not hide it from you. When I summoned you, Junyou, back to court earlier, I had thought that Wu Han and Diba Jiao, between the two of them, would be sufficient to manage Liangzhou well."

"But Diba Jiao is a civil official. Though he has the courage of Zhang Qian, he is regrettably ignorant of military affairs. In the four commanderies of Hexi, he has been repeatedly raided by the Right Division of the Xiongnu and can barely hold on."

"And the Long region is not faring well either. When I previously bestowed the 'Eulogy for Zhao Chongguo' and appointed him Rear General, my original hope was that Wu Han could learn from old General Zhao, applying both kindness and severity to the Qiang, and devote himself to military farming."

Out of trust for Wan Xiu, Diwu Lun did not hide his feelings and lamented, "After you, Junyou, left, Wu Han took overall command of military affairs in the Long region. I sent an edict ordering him to distinguish friend from foe, to ally with the various Western Qiang tribes, and to strike only the County Magistrate alone. But Wu Han — of all the men to emulate, he had to emulate Li Guang!"

"Toward the Qiang tribes of Hehuang, he makes no distinction between the good and the bad, sending troops to raid and slaughter indiscriminately, seizing grain and livestock. This has provoked the various Western Qiang tribes to dissolve their feuds, form an alliance, and willingly join the County Magistrate King in rebellion. Even the Eastern Qiang and Di people in Longxi, Tianshui, and other places are resentful of Wu Han's constant conscription for harsh labor and are stirring restlessly."

Diwu Lun suppressed his anger. "If this continues, a great upheaval in Liangzhou is to be feared! How then am I to carry out the strategy of 'secure Long, then gaze upon Shu'?"