Chapter 909: What to Do

Pan Yun took the banknotes to the money shop to exchange them for cash.

Because she was a stranger, the shop clerk dared not exchange them for her and went straight to call the Zhang Guanshi.

The Zhang Guanshi smiled warmly and asked about the origin of Pan Yun's banknotes.

Pan Yun said: "The Emperor granted them."

Zhu Qiyu's face turned red beside her—whose reward was given in banknotes?

He remembered he had given Pan Yun gold or silver, but the State Immortal also received a salary, which seemed to be paid in banknotes.

Eating the ruler's salary, it was essentially his gift, wasn't it?

The Zhang Guanshi sized Pan Yun up and asked cautiously: "Miss, are these rewards from your family? May I ask where your father or elder brother serves?"

"Not from my father or brother—they're mine," Pan Yun smiled. "I work in the palace."

Hearing she was from the palace, the Zhang Guanshi withdrew his gaze and became much more restrained; after a moment's thought, he said: "I'll exchange them at five to one."

He smiled: "No one else gets this rate—it's at least six to one."

That meant five taels in banknotes exchanged for one tael of silver.

Pan Yun made no argument and simply dumped the entire stack of banknotes from her purse to be exchanged into silver and copper coins.

Pan Yun tossed two small silver ingots in the air, still holding a string of copper coins in her left hand, and turned to Zhu Qiyu: "Let's go."

Zhu Qiyu awkwardly followed her out, where Chen Xun and Yu Qian stood by the door.

To avoid the money shop's clerk recognizing them, Pan Yun had barred them from entering, but their voices had been loud enough for those outside to hear.

The Emperor was still embarrassed, but Chen Xun and Yu Qian had already realized what Pan Yun intended.

Indeed, when Pan Yun used the exchanged money to treat them to a meal, she specifically requested a private room on the second floor, opened the window, and could see the bustling street while retaining the room's privacy.

Pan Yun placed the money in her right and left hands on the table and said to the Emperor: "Your Majesty, this is my three months' salary."

The Emperor stared at the money before him, utterly confused—so what?

Pan Yun asked him: "When you were a prince, what was your monthly salary?"

Zhu Qiyu said: "Since I hadn't been assigned a fief, my annual stipend was three thousand shi—oh, and twenty-five thousand banknotes."

Pan Yun: "Do you convert the banknotes into real silver?"

Zhu Qiyu: "That's left to the clerks. Twenty-five thousand banknotes should still fetch at least five thousand taels of silver."

Zhu Qiyu had never been extravagant as Prince Cheng, and since he was the Emperor's only brother, he received frequent gifts, so he never lacked money.

Someone who never lacked money could not grasp the meaning of Pan Yun placing three months' salary before him.

But he wasn't foolish; walking here, he had realized: "The people have little trust in banknotes…"

Pan Yun: "It's not just little trust—it's deep distrust."

Zhu Qiyu's face flushed slightly.

Pan Yun asked him: "Your Majesty, do you know why?"

Zhu Qiyu nodded and whispered: "Because I printed too many."

Pan Yun: "Because there's no credibility, because banknotes lack reserve backing."

"Banknotes have been undervalued since the Hongwu era—the root cause isn't yours, but your recent issuance of new banknotes has made them depreciate further and destroyed what little credibility remained," Pan Yun tapped the money on the table. "With no reserve backing, printing more money changes nothing in circulation. Your Majesty, Ming officials' salaries are already low; paying them in banknotes already cuts them by forty percent. Your issuance has slashed them by fifty or sixty percent."

"People vary—some are outgoing, others shy and reserved—and so do officials," Pan Yun pointed at Yu Qian. "Yu my lord is upright, so he accepts poverty—but he's Minister of War and a Grand Secretary, drawing two salaries. Even with banknotes heavily devalued, he can still support his family."

"But what about officials below him—even those in the capital holding only Eighth or ninth rank?"

Zhu Qiyu opened his mouth and asked painfully: "Do they steal?"

Pan Yun said: "The clever yet upright can adapt and survive without harm, but some rigid or shy officials can only starve. Of course, among them are also those who grow rich and powerful at the people's expense."

The Emperor looked at Pan Yun, then at Chen Xun and Yu Qian, and asked: "So, State Immortal, are you here today to petition for higher official salaries?"

"No," Pan Yun slowly shook her head. "I'm here to tell Your Majesty how vital a credible currency is to the state!"

Pan Yun pointed out the window: "Look—that's the money shop we just left. Two shops down, there's another. Both have been operating less than thirty years. But look at how many people come and go—do people outside trust their silver notes?"

Zhu Qiyu glanced outside and said: "I've used silver notes from both. They're accepted as full-value silver everywhere—no depreciation."

"If two private money shops under thirty years old can achieve this credibility, why can't the state?"

Zhu Qiyu's face flushed.

In truth, this was all his ancestors' fault.

After founding the dynasty, Zhu Yuanzhang, after printing the first banknotes, found them convenient and began printing them wildly—until no one wanted to use them anymore.

Pan Yun said: "Because banknotes lack reserve backing, and because the imperial court has lost all credibility in currency issuance."

"But paper money is essential," Pan Yun said. "Commerce must grow, handicrafts must grow, the entire nation's economy must develop—paper money must be revived."

"Currently, every credible silver note and money shop is private—that's extremely dangerous."

Zhu Qiyu: "But banknotes are already in such a state—what my Ceng Zu, grandfather, father, and elder brother failed to do…"

"Your Majesty can do it," Pan Yun interrupted him, encouraging him firmly. "There are countless capable people in the realm—I believe Your Majesty will find a minister who can accomplish this."

Zhu Qiyu's eyes lit up instantly: "State Immortal, who is this capable minister?"

Pan Yun shook her head: "I cannot see clearly yet. Your Majesty should search carefully."

Zhu Qiyu turned to Yu Qian, thinking it was him.

Yu Qian said: "I am slightly lacking in economic expertise—Minister of Revenue Chen is right here."

Chen Xun's face turned pale—could even a heavenly genius fix the banknote problem?

The credibility had hit rock bottom—what could possibly be done?

In his view, it would be better to abolish banknotes altogether…

Huh?

The thought flashed through Chen Xun's mind—he froze, then stared sharply at Pan Yun.

Zhu Qiyu saw he had an idea and urged urgently: "Minister Chen, do you have a plan?"

Chen Xun deliberated: "Perhaps we could abolish the treasure notes and create a new paper currency?"

Empress Wang could not help but say: "With such a reputation, and the lesson of the past, I'm afraid even after creating a new one, no one would believe in it."

Zhu Qiyu nodded in disappointment: "Indeed, if the common folk hear it's paper currency issued by the imperial court, they probably won't believe it."

Yu Qian said with a solemn face: "Therefore, Your Majesty must change that reputation, so that all under heaven know Your Majesty is a man who keeps his word, that the imperial family and the imperial court both have credibility—then this deadlock can be broken."