Chapter 36 – Economics

The smoked ham, translucent from the tea smoking process, complemented the freshly picked yellow garlic sprouts perfectly. The salted fish was fried until crisp, emitting an enticing aroma. The pepper lamb soup was a creamy white, while the duck meat was stir-fried with young ginger. There was also steamed perch and tofu with crab roe sauce. Each dish seemed ordinary, but it was rare to see Lady Liubao’s culinary skills, meticulously prepared.

The dishes cooked in hot oil were fresh and crisp, a stark contrast to the slow-cooked and steamed dishes in the palace. Moreover, Xu Chun earnestly urged Xie Yi to eat. “Brother Jiu, try this. It’s the Zhaogu fish in red wine lees. You mentioned liking it last time, so I asked the shopkeeper to help me get some from Jiangnan. Fresh Zhaogu fish is hard to come by, but this method of using red wine lees to pickle the fish is a Minzhou specialty, with a unique flavor.”

As he spoke, Xu Chun took a pair of special long apricot wood chopsticks and picked a piece for Xie Yi. Xie Yi glanced at him but did not explain that he hadn’t eaten Zhaogu fish since his wet nurse was beaten to death. He picked up his chopsticks and slowly tasted a sliver of the meat.

Xia Chao came in with hot water to serve the prince, preparing a warm towel for him to wash his hands. Seeing Xu Chun talking animatedly to Ninth Master and personally placing a bowl of cherry cheese in front of him, Xia Chao thought,

Madam can rest easy now. Indeed, it was a mental block. Madam said visiting him might make things worse. Instead, she suggested introducing him to classmates and friends around his age, going out for spring outings, and taking walks to clear his mind. It seems Ninth Master knows how to handle the situation. Look at how Young Master had no appetite and turned down all kinds of delicacies, but now, with Ninth Master around, he’s describing everything in detail—the smoked ham should be cured with tea leaves, the perch must be incredibly fresh, and how the young ginger goes well with pickled perilla leaves in salt brine, as if they were rare delicacies.

After a harmonious meal, the two rose and strolled toward the lake behind Bamboo Branch Workshop. As the sun began to set, the crimson clouds enveloped all the pavilions by the lakeside. Willows and peach trees lined the lake, the green willows like smoke and the pink peaches in full bloom. A gentle breeze carried the fragrance of flowers from afar, creating a peaceful and tranquil scene.

Xu Chun couldn’t resist telling Xie Yi, “In the capital, watching the sunset fills me with melancholy, but at sea, it feels grand. Brother Jiu, if there’s a chance, let me take you on a sea voyage to see the vast ocean.”

Xie Yi fell silent for a moment before saying, “Okay.”

Standing by the lake, Xu Chun gazed into the distance at the imperial city. “That’s the imperial city. They say the Emperor is very young, which is why the palace examinations have been selecting young scholars in recent years. My grandmother believes my eldest brother, who passed the juren examination at twenty, has a high chance of catching the Emperor’s eye during the palace examination, bringing glory to our family name.”

“…”

Recalling the past scholars chosen, Xie Yi found it amusing how the court spread such rumors about him. Was he really that shallow?

Normally, he wouldn’t care, but now he couldn’t resist defending himself. “It’s not that the Emperor prefers young scholars because he’s young; rather, he favors those who are pragmatic and keen on reform. These people tend to be younger. After all, during the palace examination, more mature candidates would answer conservatively. Young scholars, however, aim to shock and awe, since they have plenty of time to try again if they fail one exam.”

Xu Chun said, “Oh,” without much concern. “I think my eldest brother won’t make it into the top three. He studies under Mr. Jia and is full of propriety and righteousness. Though young, the articles he writes sound like they belong to someone on their deathbed, reeking of stale old age. Mr. Jia even praised him for his mastery of classics, his maturity beyond his years, and his restraint in showing off.”

Xie Yi chuckled. “He’s a concubine-born son, so he naturally treads carefully, afraid to make mistakes.” He appreciated how this youth didn’t hide his sourness.

Xie Yi asked, “Do you hope he succeeds or fail?”

Xie Chun replied, “Of course, I hope he succeeds. We’re brothers. If he fails, how would that reflect on me?”

Xie Yi nodded. “You truly have a magnanimous heart, completely devoid of jealousy.”

Xu Chun grumbled, “Actually, I’ve thought about it since childhood. If my mother hadn’t given birth to him right after marrying Father, maybe her feelings towards Father wouldn’t have been so negative. After all, it was quite shameful. Later, I realized it was misplaced anger.”

Xie Yi nodded. “If what you say is true, then indeed, his writing is too formulaic to place in the top three.”

Xu Chun laughed. “I heard from the Imperial Academy that although His Majesty is young, he’s a wise ruler, discerning right from wrong, favoring capable officials. He’s a monarch akin to Yao and Shun.”

Xie Yi, accustomed to hearing praise for the emperor, felt a sudden surge of comfort. He asked, “Oh? What do they say?”

Xu Chun walked along the red bricks paved by the lakeside, his sleeves fluttering in the evening breeze. He tiptoed to pluck a few peach branches, choosing the one with the most flowers and the richest color for Xie Yi.

Xie Yi asked, “Those peach blossoms are growing beautifully. Why do you need to break them?”

Xu Chun grinned, waving the flower branch in his hand. “The willow trees and peach trees by the roadside were planted with my money. I’m just picking some to put in a vase. ‘Plucking its flowers to send to my beloved.’”

Xie Yi’s heart stirred slightly. He looked at the branch and smiled. “Don’t avoid the topic. You were talking about the emperor being a wise ruler.”

Xu Chun stuck out his tongue and laughed. “Yes, the emperor doesn’t build palaces or favor extravagant construction projects. By setting an example, government offices live frugally and do not force labor or impose excessive taxes. He sounds like a truly enlightened ruler indeed.”

Seeing the peculiar smile on Xu Chun’s face, Xie Yi wondered, “Emperor Qin built the Great Wall, and Emperor Sui constructed the Grand Canal, both leading to the downfall of their dynasties. Does that mean it’s bad for an emperor not to impose heavy taxes and refrain from grand construction projects?”

Xu Chun rubbed the flower branch in his hand and laughed. “Brother Jiu, you’re a close friend, so I’ll casually chat with you. This is something I only dare to discuss with a confidant; I wouldn’t dare speak recklessly elsewhere. Don’t you know that the Great Wall kept invaders at bay for over a thousand years, and the Grand Canal still benefits us common folk today, facilitating transportation from south to north? In times of famine, it’s much easier to transport grain from the south to the north. Isn’t that true? The fall of the Qin dynasty wasn’t due to the Great Wall, nor was the fall of the Sui dynasty solely because of the Grand Canal.”

Xie Yi said, “The Great Wall and the Grand Canal served military and civilian purposes, so they were useful. Building bridges, repairing roads, digging canals, and constructing city walls haven’t been prohibited. But shouldn’t building extravagant palaces and tombs be banned?”

Xu Chun casually responded, “Of course, it should be banned. To be a wise ruler, one should leave a good reputation in history, and the emperor should act accordingly.”

Xie Yi noticed Xu Chun’s indifferent expression and lightly tapped his shoulder with the flower branch. “Don’t dodge the question. Do you mean the emperor values his reputation over practicality?”

Xu Chun smiled mischievously. “Brother Jiu, you’re quite bold, daring to criticize the emperor.”

Xie Yi knocked on his palm with the flower branch. “Clearly, you’re the one criticizing the emperor, quite boldly.”

Xu Chun chuckled. “Brother Jiu, you study the principles of a gentleman—focusing on self-cultivation and benefiting others. I follow the way of commerce.”

“Take my Leisure Cloud Workshop, for instance. Look at these book tickets. They can be exchanged for membership fees, which cover unlimited access to books, copying privileges for a month, use of the teahouse for literary gatherings, and purchases of bookmarks, stationery, and floral notes. They can be redeemed for cash anytime, but only with book tickets can you buy items here. Do you know the secret to making money?”

Xie Yi replied, “The book tickets increase capital through prepayment and create a fixed customer base.”

Xu Chun nodded. “Exactly! Brother Jiu, look, if I hadn’t issued these Leisure Cloud book tickets, probably few people would buy these things. Now, I don’t even need to pay silver coins. As long as the money is spent in my shop, I always earn a profit. It’s similar to the chips in gambling houses. Gambling houses also sell food, drinks, and entertainment, with substantial profits.”

Xu Chun shook his head, his eyes sparkling. “Suppose the emperor wants to build a palace. Naturally, he’d collect timber, stone, ornamental plants, decorations, antiques, and so on from across the country. Money would flow continuously from the government offices, eventually reaching the hands of merchants.”

“Merchants, seeking profit, would purchase these goods from farmers and craftsmen, regardless of the small amount of silver they receive. Layer by layer, the money from the government would trickle down to the common people. With money in their pockets, the commoners would buy other goods. Otherwise, those trees and stones would remain in the mountains, uncut and unused. Only when the court initiates construction projects, offering potential profits, would there be suppliers.”

“Moreover, when the capital builds palaces and mobilizes conscripted labor, vagrants find work. Without land, they would starve to death otherwise. Brother Jiu, you may not know this, but there are many tenant farmers in the capital without land, struggling to make ends meet. You might criticize the government for oppressive taxation, but the money provided by the government could be more than what landlords offer. You might not be aware that tenant farmers barely survive throughout the year, with little left over after farming.”

“If the government constructs palaces and tall buildings, as long as the money is spent, it will circulate within the capital. If we solve two issues, the money will continue to flow, ensuring that the people have work, income, and food.”

Xie Yi nodded slightly, pondering. “There have been sages who proposed that wealth is better in the hands of the people than the government. Fan Zhongyan’s ‘Three Strategies for Famine Relief’ aligns with your thoughts. During famines, initiating large-scale public and private construction projects to provide employment, repairing temples, encouraging boat races, raising grain prices unexpectedly, and making bold moves to turn the tide.”

“However, he faced much criticism and impeachment back then, leading to a difficult later life. Your sharing the same perspective as this renowned prime minister from history demonstrates wisdom. Tell me, what are the two issues you mentioned?”

Xu Chun, delighted by Xie Yi’s praise, his eyes gleaming, extended his fingers. “Firstly, officials shouldn’t be too greedy, allowing a portion of the money to reach the common people. Secondly, instead of directly distributing silver, devise ways to encourage people to spend the money quickly, keeping it circulating.”

“Excessive taxation and corruption are indeed the faults of corrupt officials. However, if building cities and bridges, digging canals, and repairing embankments are executed properly, they can benefit the people, and the government wouldn’t need to spend much. Unfortunately, there are no governments that don’t require money or officials who don’t covet wealth.”

Xie Yi, seeing Xu Chun’s smiling face, teased him. “I refuse to believe there are no honest officials in this world.”

Xu Chun shook his head. “Brother Jiu, you don’t understand. Honest officials certainly exist, but they don’t seek money, so their subordinates aren’t motivated. An honest official struggles alone. Either they become overly strict, suppressing their subordinates and facing backlash, achieving nothing; or they avoid involvement, seeking mediocrity, living a life of integrity without accomplishments. Such individuals are merely virtuous but cannot become capable administrators. Of course, if I were in charge, I could ensure officials don’t embezzle much, and the government wouldn’t need much money to accomplish real tasks.”

Xie Yi said, “Tell me more. I’ll listen with an open mind, taking the repair of the capital’s city walls and moat as an example.” Coincidentally, the governor of Jingzhao Prefecture had just submitted a memorial to start the repairs, involving a significant sum of money. It would be interesting to hear this young man’s unconventional ideas.

Xu Chun explained, “Simple. First, divide the city walls and moat into four sections, using the four gates as boundaries. Each section would be overseen by different merchants responsible for procuring stone materials and organizing and supervising the conscripted labor. The government would only provide officials for supervision. Half of the workers would be conscripted laborers, and half would be prisoners. All construction materials would be provided by the merchants. Payment for the project would only be made once the progress reached halfway, meaning the merchants would cover all the initial expenses. The government would only issue a contract specifying the price.”

“Secondly, choose convenient locations near the three sections to build sheds, where official stores selling miscellaneous goods and food would be established. These official stores would be auctioned off to major merchants in the city, granting exclusive rights to operate them. Specific requirements and prices for goods and food could be set, ensuring they are at least thirty percent cheaper than outside. The operation period could coincide with the construction duration, typically three to six months.”

“The revenue generated from this auction would be used to pay for the project costs. Officials would be assigned to calculate everything accurately. As long as no one embezzles or deducts funds, it would be sufficient.”

“Thirdly, recruit conscripted laborers in the city. Prepare a batch of copper-tipped bamboo tokens. For those who sign up, give them tokens equivalent to a certain amount of money in advance, allowing them to purchase grains, cloth, farming tools, oil, salt, soy sauce, vinegar, and other sundries at the official stores. The remaining half of the tokens would be distributed daily.”

“The official stores receiving the bamboo tokens could redeem them for silver at the government office, but the settlement would occur three months later. The official stores could also sell goods for cash, with prices determined by the merchants. Naturally, goods bought with bamboo tokens would be cheaper, but still more expensive than outside prices. The profit margin would still be substantial.”

“In this way, only the person managing the distribution of bamboo tokens and the person handling the official silver needs to be monitored. The procurement of stone materials and the possibility of embezzling the conscripted laborers’ wages would decrease significantly, with minimal cash transactions. Opportunities for officials to embezzle would be scarce. The public auction would ensure transparency, with the highest bidder obtaining the rights. Everything would be clear numbers, under the control of superiors. The conscripted laborers holding the bamboo tokens would find them useless outside, and the exclusive stores’ affordable prices would encourage them to exchange their tokens for goods there.”

“Calculating it all, the government would undoubtedly have leftover funds by the end of the project.”

Xie Yi smiled. “Your plan does seem quite good, but if implemented, issues like bidder collusion, inferior quality goods, and the demand for protection fees during token distribution could still arise.”

Xu Chun clapped his hands. “Indeed! The more people involved in a task, the more complicated it becomes, but it’s still much better than before! This method was inspired by the system my maternal grandfather’s dockworkers used, calculating working hours with the Sheng family’s copper-tipped bamboo tokens. However, if the tokens weren’t converted into cash, they could directly purchase goods at the Sheng family’s shops at a lower price. This streamlined operation saved a considerable amount of silver in circulation.”

Xie Yi’s eyes flickered, thinking that indeed, these common merchants possessed adaptable minds, far more resourceful than the ministers of the court. If he had such talented people in management to assist him, he wouldn’t have to deal with the constant shuffling of disaster relief funds, military salaries, and river repairs day after day.

He focused on Xu Chun, the young man bathed in the golden glow of the sunset, his silhouette outlined by the twilight, his appearance captivating. He thought to himself, Cultivate him for a few years, and with him as my aide, I can truly rest assured and govern effortlessly.