Chapter 303: The Pang Clan of Jinling

Since he had already boarded Chongzhen's pirate ship, Jiang Dejing was unwilling to give up the position of Chief Grand Secretary on the very first day. Having made up his mind, he stepped forward and memorialized:

"Your Majesty, I believe this banking matter must either not be done at all, or if done, must be implemented immediately without a moment's delay! Moreover, during implementation, constables must be dispatched for protection, the Eastern Depot and Embroidered Uniform Guard sent to supervise, and troops prepared to suppress any rebellion that might arise at any time — otherwise it will be difficult to carry out."

Seeing the Chongzhen Emperor nod noncommittally, Jiang Dejing felt that the Emperor genuinely desired reform, and only then relaxed, continuing:

"During the Zhengtong reign of Emperor Yingzong, paper currency depreciated, and the dynasty planned to relax the ban on silver use. From then on, the malady of freely circulating silver and cash among the people was opened wide, and to this day it has only grown more severe. Even when the Jiajing reign issued strict prohibitions, they were repeatedly violated without effect. Thereafter the various money shops privately colluded, each closing its money market, causing prices to soar — a scourge that lasted long. Reflecting on past pain, Your Majesty must still guard against merchants repeating their old tricks, and when necessary, may use forceful means to suppress them!"

"During the Wanli reign, Censor Pang Shangpeng, with the permission of Emperor Shenzong, took charge of establishing an official government money shop — this was the beginning of legally sanctioned money shops. Pang Shangpeng's grandson, Pang Zhongqian, is decisive in handling affairs and possesses considerable economic talent. He once served as magistrate of Yingshan County with notable achievements."

"I believe that if Your Majesty wishes to establish an imperial bank, the Pang family would be the first choice. First, the Pang family's money shop currently stands above all others in Nanjing city, unrivaled by any; second, the Pang family transitioned from officialdom to commerce, and their sons and younger brothers all incline toward official service — they may be called loyal."

The Chongzhen Emperor took a deep look at Jiang Dejing, and after a long while, gave an "Mm" and said: "My minister speaks well. Then summon Pang Zhongqian to the capital to see me at once. Also, after the bank is newly established, lending must be its primary function, with all other businesses undertaken as well — whatever local money shops have, the bank must have too."

"As for so-called lending, it works the same as local money shop deposits. Whether common folk, great households, gentry-officials, or even merchants, all may deposit silver into the bank and exchange it for paper currency of equal face value. The bank must issue receipts certifying that the people have deposited silver there."

"Don't the common people want to buy land? I will give them this opportunity!"

"For those who deposit silver into the bank, counted per household head: for common households of three or fewer persons, taking fifty taels as an example — if within three years the household's total reaches fifty taels, then after three years they may exchange their bank receipts for no less than fifty mu of farmland. For households of more than three but fewer than six persons, this is raised to depositing one hundred taels within four years, exchanging for one hundred mu of farmland."

"Beyond this, the bank must not only refrain from charging depositors any additional fees, but must also pay interest on deposits on a monthly basis. For example, a household of three depositing fifty taels — after one full month, upon withdrawal they would receive fifty taels of silver plus interest."

Jiang Dejing had originally harbored doubts about whether the people would be willing to deposit money — in this day and age, who would be willing to exchange the heavy silver in their hands for paper notes? Better to buy a few more mu of land or eat a few more hearty meals — that was more practical.

After all, no one knew whether they would even live to the day one month later when they could withdraw their money.

That doubt was gone, but Jiang Dejing now had other concerns, and said:

"Your Majesty, if this is so — should local merchants deposit large sums of silver into the bank in batches, or should the common people accumulate small amounts into large ones yet never withdraw their silver for a long time, what is to be done then?"

"If everyone were to withdraw their silver all at once after three years, with principal, interest, and countless mu of farmland added together, the court would fear being driven to utter exhaustion in an instant."

What Jiang Dejing said was indeed a concern, but the Chongzhen Emperor had no such worry at all. First, even he himself was not certain he could last until three years from now; second, this method was also merely a scheme for revolving funds in the short term.

Surely after three years I would still be this poor? The Chongzhen Emperor refused to believe such a thing.

"Grand Secretary Jiang, a bank's profit is not earned through lending alone — there are also currency exchange and deposit services for merchants and common folk. Even in lending, it is not by relying on the people's silver that money is made. In the segment concerning the common people, this dynasty is indeed steadily losing rather than profiting."

Seeing Jiang Dejing's face grow even more puzzled, the Chongzhen Emperor had no choice but to explain: "I wish to levy commercial taxes, and to do so I must first establish a bank, using it to support small and medium merchants while striking at the many great households of Jiangnan wealthy enough to rival a nation. Do you understand?"

"As my minister said, this matter cannot proceed without great households taking the lead. I feel the Pang family is quite suitable. After Pang Zhongqian arrives in the capital, I will speak with him personally. For now, let the Pang family take the lead and get the bank started."

"As soon as the bank is established, an entirely new set of commercial tax regulations must be implemented immediately. Grand Secretary Jiang, work hard these days — you must produce a complete plan for me."

"Your minister will not fail his mission." Jiang Dejing nodded affirmatively, thinking to himself that at last he could put his talents to full use and have his wish fulfilled.

Having said this, Jiang Dejing suddenly thought of something and was about to speak, but after opening his mouth he hurriedly stepped back instead, as if afraid of something. The Chongzhen Emperor saw this and asked with a frown:

"Grand Secretary, what have you thought of? There is no need for hesitation — on this matter I will treat all equally."

"Your Majesty, since the Hongwu reign, this dynasty has had numerous meritorious nobles and feudal princes, each of them the great households and plutocrats Your Majesty speaks of. It is inevitable that those with ulterior motives will push them forward as shields. If that happens, how are we ministers to act?"

The Chongzhen Emperor was not the one from history, and hated these convenient relatives of his even more than he hated the roving bandits.

Throughout the Ming dynasty, the largest expenditure was due to the proliferation of the imperial clan and feudal princes. This situation was just like the iron-helmet harvests of the Eight Banners under the Tartar Qing — each year they sucked the blood of the finances, acted as tyrants in the localities, and were great households that seized and occupied land.

Now that Li Zicheng had been beaten to a crippled state and seemed unable to catch his breath for the time being, while finances were desperately tight, Chongzhen feared that after the next mobilization he would be unable to pay the reward silver and wages of his soldiers. Thus the bank and commercial taxes had to be established as quickly as possible.

At this moment, the Chongzhen Emperor finally understood the meaning of the saying "blocking someone's path to wealth is like killing their parents." When one needs money and has none, the consequence is no different from going straight to hang oneself.

Wasn't the Chongzhen of history driven by his own subjects and ministers to that crooked-neck tree?

Thinking of this, the Chongzhen Emperor gave his answer almost without consideration, decisively: "Hmph! Whoever dares to block me from levying commercial taxes and establishing the bank — for meritorious nobles, strip their titles; for feudal princes, demote their ranks. I will deal with each and every one personally. Let me see who dares to jump out and take that lead!"

Hearing Chongzhen's resolute attitude, Jiang Dejing and the others felt somewhat reassured.

After all, for them as ministers to do such things was also to offend people. It was fine if the Emperor supported them from behind, but if the Emperor wavered back and forth, in the end it would only be these ministers who got burned.

Just like in previous years, when the Chongzhen Emperor of history had Minister of War Chen Xinjia seek peace talks with the Tartar Qing — once the matter leaked out, the Emperor immediately retreated, leaving Chen Xinjia caught between advance and retreat, forced to take the blame, and in the end becoming a traitorous minister reviled by all.

Such matters left Jiang Dejing with lingering fear. If he did not want to become the next Chen Xinjia, he had to probe and understand just how firm the Emperor's resolve to levy commercial taxes truly was. Otherwise, he would surely end up disgraced and destroyed, dying without a burial place.

In truth, after Jiang Dejing saw how the Chongzhen Emperor had handled Wei Zaode, this worry had already grown quite weak. Wei Zaode had borne no small number of black pots for the Emperor since the year of Jiashen, yet now he had hung up his official cap and returned home, his reputation and achievements complete.

He himself had only just taken office, and there would likely be many more pots to bear in the future. And he was not the talentless Wei Zaode — he was one who aspired to become the Zhang Juzheng of the Chongzhen court as Chief Grand Secretary.

Where else could one find a Chief Grand Secretary who understood things as well as he did and possessed such ability?

Jiang Dejing spoke: "Your Majesty, the border tea-horse trade, the garrison salt of the Nine Borders, and the Shandong sea salt trade have always been rampant, yet their profits are considerable. The court lacks money — all salt fields in the Jiaozhou, Denglai, and Huaibei regions could be nationalized. Beyond this, send envoys to the various Mongol tribes, speaking only of the tea-horse trade and not of war. In this way, both sides may profit, and the dynasty profits most of all!"

The Chongzhen Emperor thought it over, then nodded and said: "Approved! Tonight, go home and draft these matters into a memorial. Bring it out at tomorrow's morning court for further discussion!"

Jiang Dejing naturally understood the routine, and said with a smile: "Your minister obeys the decree!"