Black Corporation: Joseon [EN]: Chapter 188

188. Currency War (4)

Seonjo examined the design of the paper money again at Won Tae-so’s suggestion.

“Indeed….”

The two dragons facing each other, with a single Yeouiju [a mythical orb signifying perfection and wish-granting power] in between, appeared to be snarling at each other.

From that moment, the officials’ debate began.

The main participants were the teaching assistants from the National Academy.

“If it’s just about one Yeouiju, why not add another?”

“The problem is the two dragons. Two complete dragons in one place? That implies the country will be split in two!”

“Even numbers are easily divided! Absolutely no even numbers!”

“Then how about three?”

“That’s not balanced!”

“Look at the Jeong (鼎, cauldron, a symbol of authority)! It has three legs, yet it maintains perfect balance and is treated with reverence!”

“How many corners does the paper money have? Four! And you’re suggesting only three dragons? Does that make sense? If you’re going to do that, you should put four!”

“Put four dragons on that small piece of paper? Don’t you even know the meaning of ‘jeol (절, excessive)’! Ugh! How can a minister of this empire be so ignorant!”

“Ignorant! Where did you learn to speak such nonsense!”

The fierce debate was escalating to a dangerous level. However, after witnessing many eunuchs, ministers, and military officers imprisoned and beheaded in the previous incident, the intensity remained just below the breaking point.

“There should only be one dragon!”

“Don’t you consider the harmony of yin and yang? Can you achieve harmony with just one?”

“In all my life, this is the first time I’ve heard that dragons have genders! Dragons are beings that cultivate themselves from insignificant creatures, absorb the energy of heaven and earth, and ascend! Are you suggesting that sacred dragons mate and give birth like livestock in the neighborhood?”

The Vice Minister of the Ministry of Taxation, watching the debate between the Ming officials and eunuchs, grumbled inwardly.

‘Just put a landscape painting on it!’

The Vice Minister of the Ministry of Taxation wasn’t alone in that thought. Seonjo, who had been watching the debate with a face full of fatigue and annoyance, finally shouted.

“Stop! Stop it!”

At Seonjo’s roar, the ministers immediately ceased their debate and prostrated themselves on the floor. Seonjo looked at the Vice Minister of the Ministry of Taxation with an annoyed expression.

“I ask the Joseon envoy! How did Joseon solve this problem?”

“As you know, we put landscape paintings on them.”

“That’s right.”

After hearing the Vice Minister of the Ministry of Taxation’s answer, Seonjo turned to look at the Ming Dynasty officials.

“If we must put a picture on the paper money, then put a landscape painting instead of a dragon.”

“That cannot be!”

The Senior Grand Secretary immediately opposed Seonjo’s order.

“Why not?”

“The dragon is the symbol of the emperor and the symbol of the empire! We can never remove the dragon!”

“That’s right!”

“The dragon must be included!”

At the Senior Grand Secretary’s words, those who had been engaged in the debate simultaneously supported him with one voice. At that sight, Seonjo put his hand on his forehead and sighed deeply.

“Haa~. What should I do with this….”

In the end, after a long and drawn-out debate, Seonjo reached a conclusion.

“If a dragon must be included on the new paper money, then we will only put one. The emperor is one, and the empire is one. Therefore, we will only put one dragon. The dragon’s body will encircle the four corners of the paper money, as the empire’s divine power encompasses the four seas.”

“We obey your command!”

“Long live, long live, long live!”

At Seonjo’s conclusion, the officials and eunuchs all prostrated themselves and answered in unison.

The Vice Minister of the Ministry of Taxation, watching the scene from the side, shouted long live along with the Ming people and grumbled inwardly.

‘Ugh, why did you make us suffer so much when you were going to make the decision yourself anyway!’

* * *

Fifteen days later, the Vice Minister of the Ministry of Taxation was finally able to return home.

“I can see Jemulpo [modern-day Incheon port]!”

Upon hearing his subordinate official’s shout, the Vice Minister of the Ministry of Taxation jumped out of the cabin and ran to the bow.

“Finally, Joseon! I’ve returned to Joseon!”

The Vice Minister of the Ministry of Taxation’s voice was full of emotion.

* * *

Having arrived at Jemulpo, the Vice Minister of the Ministry of Taxation and his party changed ships and headed straight for Hanseong [the capital of Joseon, modern-day Seoul] via the Han River.

The Vice Minister of the Ministry of Taxation and his party entered Geunjeongjeon [the main hall of Gyeongbokgung Palace] and paid their respects to Sejong, reporting their return.

“You have taken on unexpected tasks and suffered greatly.”

“Not at all. It is the duty of a subject to follow the royal command.”

Although he said that, the faces of the Vice Minister of the Ministry of Taxation and the delegation looked exhausted.

Sejong, looking at the delegation with a concerned expression, gave an order.

“There are many things we need to hear from you, but judging by your complexions, rest is urgent. Take two days of rest and then come to the court and report.”

At Sejong’s words, the Vice Minister of the Ministry of Taxation and his party immediately prostrated themselves and shouted.

“Your grace is boundless! Ten thousand years, ten thousand years, ten thousand times ten thousand years!”

The historian who recorded all of this added a word at the end.

-The historian says.

I’m jealous.

* * *

Two days later, the Vice Minister of the Ministry of Taxation headed to Geunjeongjeon as soon as the court convened. With Sejong and Hyang, as well as ministers of the Dang Sang rank [high-ranking officials] or higher, all in attendance, the Vice Minister of the Ministry of Taxation reported everything that had happened in Ming.

“…Therefore, Ming is preparing to circulate new paper money. The expected time for the new paper money to be circulated is two years from now.”

“I see. What is the population and commercial scale of Ming?”

At Sejong’s question, the Vice Minister of the Ministry of Taxation paused for a moment to recall and then answered.

“I could not access detailed information, so I cannot know the exact figures, but the population is about 12 times larger, and the commercial scale is about 20 times larger.”

“20 times!”

At the words ‘commercial scale is 20 times larger,’ the ministers gathered in Geunjeongjeon began to stir.

“What is the basis for saying that?”

Sejong asked, his voice tinged with disbelief. He knew that Ming was a great power, but he found it hard to believe that its commercial scale was 20 times larger.

At Sejong’s question, the Vice Minister of the Ministry of Taxation explained his reasoning.

“Although I could not access accurate information, I was able to briefly see the household registers and tax lists prepared by the Ming’s Ministry of Revenue (戶部) in the process of planning the new currency. Based on the population recorded in the household registers and the tax amount written in the tax lists, the result was 20 times larger.”

“Even so, 20 times….”

Sejong shook his head, and Hyang interjected.

“Isn’t it possible?”

“Possible?”

“Yes, the founding of Ming preceded our Joseon. And our Joseon has hindered the growth of commerce and industry. If we combine those two factors, it is entirely possible.”

“I see….”

Sejong nodded at Hyang’s explanation.

* * *

Hyang’s argument made sense.

The founding of Ming was in 1368, and the founding of Joseon was in 1392. There was a time gap of about 24 years. And Joseon emphasized agriculture in accordance with Confucian ideals.

Of course, that 24-year gap was the late Goryeo period [the dynasty preceding Joseon], and Goryeo had a tradition of favoring commerce. However, during that gap period, the entire territory was devastated, starting with the invasion of the Wokou [Japanese pirates], and fierce struggles were taking place among the political forces of the Korean Peninsula.

Therefore, it was a situation in which it was impossible to guarantee the safety that would allow commerce and industry to flourish.

The time gap and the political ideology centered on agriculture had brought about such a huge difference.

* * *

Sejong and the ministers nodded at Hyang’s explanation.

“I thought we had caught up to some extent, but the reality is that we are still far behind…. Hooo~.”

Sejong, who let out a long sigh, ordered the ministers.

“I think we still have a long way to go. Let’s try a little harder.”

“We obey your command!”

It was a moment where Sejong and the ministers reaffirmed their determination.

* * *

The Vice Minister of the Ministry of Taxation began to talk about what he thought was truly important.

“I would like to report what I thought was most important while I was in Beijing. As you have already been informed, the value of silver continues to rise in Ming.”

At the words of the Vice Minister of the Ministry of Taxation, Sejong turned to look at Hyang.

“I have already received a report. Is it that serious?”

“Just before I returned, 8 silver taels could be exchanged for 1 gold tael. Consider that when our Joseon attacked Tsushima Island, the exchange rate for obtaining sulfur from Ming to manufacture gunpowder was 10 silver taels for 1 gold tael.”

“Hmm….”

Sejong paused for a moment to calculate. The year the Tsushima Island expedition took place was 11 years ago. At that time, in the process of preparing for the expedition, sulfur had to be obtained from Ming in order to increase the amount of gunpowder held.

“That’s right. The value of silver has risen a lot. What is the reason?”

“It is because the consumption of silver has increased. Ming had already received taxes in silver long before our Joseon. Silver was also used to settle payments in commerce. Therefore, the value has risen as the consumption of silver has outstripped production.”

“I see. So….”

Sejong paused for a moment and turned to look at Hyang. He remembered Hyang running around as soon as he received information that a large amount of silver was coming in from Ming.

Reflecting on Hyang’s work, Sejong asked the Vice Minister of the Ministry of Taxation.

“If we had not anticipated the circulation of currency in Ming this time, what do you think would have happened?”

“I subtly sounded out the Ming officials who I had befriended, and there was a high possibility that they would have recovered silver in the form of tribute.”

“Is that so? Hooo~. That was close.”

At the Vice Minister of the Ministry of Taxation’s answer, Sejong sighed and stroked his chest. If the commercial scale of Ming was so enormous, as the Vice Minister of the Ministry of Taxation said, there was a risk that all of Joseon’s silver would be drained away as tribute, without proper compensation.

Sejong looked around at the ministers.

“As you know from the words of the Vice Minister of the Ministry of Taxation, the demand for silver is increasing in Ming, so we must find a way to protect our Joseon’s silver, without provoking Ming, our suzerain state.”

“We obey your command!”

As soon as the ministers’ answers were finished, Hyang joined the conversation.

“Father, may I speak?”

“You may.”

As soon as Sejong’s permission was given, Hyang immediately brought up the main point.

“We must devise various ways to prevent our Joseon’s silver from being drawn into Ming. But the first thing we must do is to prevent Joseon merchants from bringing gold into Ming.”

“Why? It’s gold, not silver?”

At Sejong’s question, Hyang explained in more detail.

“Merchants may profit, but it is a loss for Joseon as a whole.”

“Huh?”

At Hyang’s answer, Sejong and the ministers stroked their beards and began to ponder its true meaning.

After a moment, Sejong, Minister of the Ministry of Taxation Kim Jeom, and Maeng Sa-seong simultaneously exclaimed.

“That’s right! Every time 1 gold tael comes in from Ming, we lose 2 silver taels!”

“That’s right!”

What Hyang said was about the exchange rate margin and exchange loss resulting from the difference in the gold-silver exchange rate between Ming and Joseon.

* * *

When they first made banknotes, Hyang and the Ministry of Taxation set the gold-silver exchange rate at 1:10. This was partly in consideration of the production volume and distribution scale, but it was also a ratio set for ease of management in various aspects of the economy, including taxation.

However, if the gold-silver exchange rate between Ming and Joseon differed as it did now, it was clear that merchants would take advantage of this.

Because even if you buy gold in Ming and bring it in to exchange it at the Jeonhwanso [government-run exchange office] or pay it as a commodity payment, an additional profit of 2 silver taels occurs for every 1 gold tael.

However, this was a profit for the merchant, but a loss for the country as a whole.

This was not just a theoretical concern. During the late Ming Dynasty and the Qing Empire, European merchants maximized their profits by exploiting this exchange rate margin.

Until the 17th century, the European exchange rate was maintained at the traditional level of 1:12. However, the Chinese exchange rate was 1:6. Simply put, European merchants could make a 100% profit just by buying gold in China and returning to Europe to sell it.

Therefore, East India Company merchants busily traveled between Europe, China, and Japan, making huge profits from exchange rate margins.

The method was to bring silver from Europe and Japan to China, exchange it for gold, bring this gold to Japan and exchange it for silver, bring this silver back to China and exchange it for gold, and then bring it to Europe and sell it to multiply the profits several times.(Note 1)

* * *

Sejong and the ministers, who understood the problem Hyang had mentioned, immediately decided to create related laws.

Following this, Hyang made another claim.

“We must subjugate Japan.”

“Subjugate Japan? Isn’t that too hasty?”

Sejong, who equated ‘subjugation’ with ‘war,’ said in a worried voice, and Hyang explained in more detail.

“I don’t mean to subjugate them by force. We must make the Japanese market exclusively ours.”

* * *

Note 1) The Story of the Jews – How They Made the History of Wealth. By Hong Ik-hee. Publisher: Planet; B Leaf.