Chapter 217: Winning the Playoff—Again and Again

November 4, 1949, Yanjing Gongde Lin. Late autumn in Yanjing already carried a chill, and more than half of the locust tree leaves in the courtyard of Gongde Lin had fallen. At three p. m., the sky was overcast, as if snow were about to fall.

Li Yuxuan was in his room sorting the manuscript of his anti‑Japanese war memoirs when he suddenly heard a car outside the door. He went to the window and saw a black sedan parked at the courtyard entrance, and Yao Yongqing hurried up to meet it.

The car door opened, and the person who stepped out was the Director. Today he was not wearing a Zhongshan suit but a half‑worn gray cotton coat, carrying a briefcase.

A knock sounded at the door.

"Please come in."

The Director pushed the door in, bringing a gust of cold air. He removed his scarf and said with a smile, "Brother Jingxing, sorry to disturb you again."

"Director, please sit."

Liu Guangzhi brought in a chair, poured hot tea, and then stepped out to close the door.

The Director rubbed his hands and exhaled a puff of white vapor, "It's gotten cold early this year. Brother Jingxing, is the heating here enough for you?"

"Enough, the coal briquettes are sufficient," Li Yuxuan said, "Brother Yu Xiang came today, not just to ask about the temperature, right?"

"Indeed there is a matter," the Director said, pulling a document from his briefcase. "I would like to hear Brother Jingxing's view on the current economic situation."

Li Yuxuan was startled: "Economics? I'm a soldier; what do I know about economics?"

"Brother Jingxing, you are being modest," the Director said, opening the file. "During the anti‑Japanese war you oversaw economic work in the Third War Zone, implementing wartime command economy, stabilizing prices, ensuring military supplies and civilian food—very effective. In 1946 you served as a consultant on the Executive Yuan Economic Committee, taking part in drafting the post‑war economic reconstruction plan. We are aware of all this."

Li Yuxuan fell silent. Indeed, he understood not only military affairs but also economics—a skill honed by years of service at both local and central levels. He had not expected them to have grasped even these details.

"Those are all things of the past," he finally said.

"Past events can serve as reference for the present," the Director said, pushing the document toward Li Yuxuan. "This is a price‑index report for Modu, Tianjin, Jiangcheng and other regions. From May to now, rice has risen twelvefold, cotton cloth eightfold, coal tenfold. The new government faces severe economic difficulties."

Li Yuxuan took the report and skimmed it quickly. The figures were shocking, but he was not surprised. Post‑war economic collapse and inflation were among the key reasons for the Kuomintang regime's downfall. The Republic taking over this mess made the difficulties easy to imagine.

"Brother Yu Xiang, what do you want to hear?" he asked.

"The truth," the Director said, looking into his eyes. "You are an economics expert and familiar with the Kuomintang's policy successes and failures. In your view, what should we do now?"

Li Yuxuan set the report down and pondered briefly: "First we must identify the cause. Inflation was not created in a single day. During the localized anti‑Japanese war of six years and the full‑scale war of eight years, the government relied on printing money to fund the military. The three‑year civil war intensified this. Over‑issuance of currency and shortage of goods caused prices to soar naturally. Although the war has basically ended now, the money supply is already astronomical; the people have lost confidence in paper money, and at the slightest hint of trouble they rush to buy supplies, creating a vicious cycle."

The Director nodded: "You are right. We have estimated that the Kuomintang's issuance of legal tender and Gold Yuan notes totals a hundred thousand times the amount before the war."

"Therefore, the fundamental solution is to restore production and increase material supply," Li Yuxuan continued. "But that is a long‑term project. For the immediate symptom, we must stabilize the currency value. I suggest issuing a new currency as soon as possible, exchanging it for the old notes at a reasonable ratio, while strictly limiting the amount of new money issued."

"We are preparing a nationwide issuance of the Renminbi," the Director said, "but how should we set the exchange ratio for the old notes?"

"It must be ruthless," Li Yuxuan said decisively. "The old notes are already worthless; exchanging them at market price is unaffordable for the new government. We can set a relatively low official ratio and announce a deadline for the old notes to become void. This will hurt some holders, but a short pain is better than a long one."

He paused: "I know this is cruel; it will turn many people's savings into nothing. Yet when Heaven is split, someone must mend it, and the Heaven Restorer must die—this is history's cruelest tacit agreement."

The Director leaned forward slightly: "What you said... how should I put it?"

"Zhang Juzheng of the Ming dynasty was the same," Li Yuxuan said. "He implemented the single‑whip reform, overhauled finances, prolonging the Ming's life for decades, yet after his death he was purged. My friend in the United States was similar—he introduced a New Deal, rescued the American economy, but harmed big capitalists, was labeled a 'Communist', and ultimately died in office."

He looked at the Director: "Any profound economic reform will disturb vested interests and will have someone pay the price. Reformers often meet a bad end, but the nation is saved because of them. That is the fate of a Heaven Restorer."

The room fell silent. The wind outside rattled the window lattice.

After a long while, the Director spoke: "Brother Jingxing, do you think the new government can succeed?"

"It depends on whether you dare to be ruthless," Li Yuxuan said bluntly. "The economic issue is essentially one of profit distribution. Why did the Kuomintang fail? Not because they lacked economic knowledge, but because they dared not disturb the entrenched interest groups—the four great families, bureaucratic capital, and landlord gentry. Those were the foundation of our rule at the time; move them and the Kuomintang collapses. Leave them untouched and the economy collapses. In the end, both collapse."

He lifted his teacup and took a sip of the now slightly cool tea: "The Republic is different. Your foundation is workers and peasants, with no ties to vested interest groups. Therefore you can act—Land Reform, confiscating bureaucratic capital, cracking down on speculation. These policies will bleed, will invite hatred, but they can solve the problem at its root."

"Then, in your view, will we follow in the Kuomintang's footsteps?" the Director asked sharply.

"It depends on whether you can keep your original aspiration," Li Yuxuan set down his cup. "When a revolutionary party becomes a ruling party, it most easily makes two mistakes: first, it drifts away from the masses and becomes a new privileged class; second, it seeks pleasure and forgets why it revolted. The Kuomintang is a cautionary tale."

The Director listened attentively, without interrupting.

"I'll speak frankly, Brother Yu Xiang, don't take offense," Li Yuxuan continued. "The Republic now holds the realm, embraced by the masses. But after two hundred years, these things must be prepared for in advance."

"Thank you for your candor," the Director said sincerely. "He often says, 'Rush to the capital for the exam,' and we must not emulate Li Zicheng. I will report your words verbatim to the Central Government."

He glanced at his watch; they had been talking for almost two hours.

"One final question," the Director said, "if we ask you to take part in economic work, would you be willing?"

Li Yuxuan smiled: "Brother Yu Xiang, I am a War Criminal."

"War criminals can be reformed, can be granted amnesty," the Director stood up. "Huaxia now has countless things in ruin awaiting reconstruction and needs talent from all fields. General Li understands economics, understands the military, and is familiar with the Old Regime's situation—exactly the kind of person we need. Of course, this depends on your reform performance and also on the right timing."

Li Yuxuan also stood: "I am old, my energy wanes. But if that day ever comes, I am willing to do what little I can."

"Very well," the Director extended his hand. "Then it's settled."

The two men shook hands. The Director's hand was warm and strong; Li Yuxuan's hand was aged but steady.

After seeing the Director off, Li Yuxuan stood by the window, watching the sedan drive out of the Gongde Lin Gate. The sky grew darker, and fine snowflakes began to drift down.

Liu Guangzhi came in, tidying the tea set: "Lord Jing, what did the Director discuss with you that took so long?"

"We talked about the economy, about governing the state," Li Yuxuan said. "We also discussed the fate of the Heaven Restorer."

Liu Guangzhi didn't understand, but didn't ask further.

That night, Li Yuxuan wrote in his diary:

"November 4, 1949, overcast, first snow. The Director visited, discussed the economic situation. I spoke frankly about the difficulty of the new policies, the pain of reform. He listened sincerely, showing the bearing of an enlightened ruler. Yet Heaven Restorers seldom meet a good end; Zhang Juzheng, my friend, were both such. Now the Republic seeks to mend Huaxia's economic heavens; the road is long, the dangers many. May they not forget their original aspiration, and may they begin well and end well."

He stopped his pen there.