Black Corporation: Joseon [EN]: Chapter 1013

“Promises must be kept. Especially promises between nations.”

“Let’s be honest. They only keep them because the Empire is powerful.”

“Shhh!”

“The Empire’s complaints are one thing, but there’s been a lot of internal discussion about this as well. It’s time to address it.”

Thus began the process of abolishing regional tariffs, which were essentially double taxation. From this, Italian officials discovered a new source of revenue.

The method was simple:

-Instead of regional tariffs, increase the import tariff rate at ports.

From the merchants’ perspective, this was an acceptable solution. The increased tax rate meant they had to pay more overall, but it was still cheaper than the fees they paid every time they passed through city gates. Conversely, cities that suddenly lost a significant source of tax revenue protested. However, the merchants in those regions quickly silenced them.

“Think about all the taxes we paid every time we passed through other cities! This will actually bring you greater benefits!”

“Benefits?”

“Do you know how many guild merchants stayed away from the city because of those damn tariffs? Now even they will start trading here!”

“Aha!”

Most of the city leaders were large merchants or bankers themselves. Thanks to this, they immediately understood the underlying meaning.

-If merchants move more actively, more taxes will come in.

-The immediate tax revenue isn’t everything. If that happens, merchants will need more capital, and eventually, they will borrow from us!

Having concluded that it was beneficial to everyone, the city leaders stopped complaining and accepted the central government’s decision. With this secured revenue, the Italian government began to more actively promote the construction of ironclad ships.

This was just the beginning.

Italian officials more actively reformed the tax system, which made government finances healthier. As government finances improved, the government’s capabilities were strengthened, and the Italian government began to act more decisively. Meanwhile, Italian politicians and citizens, observing the situation, praised the central government officials.

“Now that we’re unified, we’re seeing talented people emerge!”

“It’s not just talent! Now we can easily envision a grander future!”

As they watched the Italians, who were now offering praise instead of complaints, the Empire’s people tilted their heads.

“Isn’t it strange that Europe charged separate tariffs in each town, even though they’re supposed to be one country?”

“Isn’t it even stranger that they didn’t realize they had so many problems with their tax system until now?”

Most of the Empire’s people, except for a few experienced and knowledgeable individuals, didn’t realize it, but the Empire’s influence was more pervasive than they imagined.

* * *

Seeing the positive effects of Italy’s tax reform, the European powers soon attempted to implement it in their own countries. Here, success and failure were sharply divided.

Those who succeeded in reform were Portugal, England, and France, while those who failed were Spain and the Habsburgs. Portugal’s success was, in some ways, a natural outcome. Portugal, along with Italy (specifically, Florence), was one of the first countries to come into contact with the Empire. Naturally, they were able to encounter the Empire’s culture and various systems early on.

It wasn’t just the Empire. In the process of traveling to and from the Empire, they were also able to interact with Ming [the ruling dynasty of China from 1368 to 1644] and Japan, which was the biggest reason for their success in reform. During this period, the Empire and Ming had the most advanced systems in the world. Therefore, Italy and Portugal, which were the first to start interacting with Northeast Asian countries, including the Empire, were able to reform quickly and successfully.

France’s success was also, perhaps, a natural outcome. Since the reign of King Charles VII, the power of the nobles had been reduced, while the power of the crown had been increased. To increase the power of the king, the support of the people, especially the urban merchant class who held capital, was essential.

-More capital brings more support.

Knowing this well, the French monarchs and emerging power groups pushed for comprehensive reform and succeeded.

The biggest reason for the failure of Spain and the Habsburgs was their defeat in the Italian unification war. The Kingdom of Aragon, one of the pillars of the Spanish Kingdom, had its financial base in Mediterranean trade. Having lost not only the Italian unification war but also Gibraltar and El Hasi Ras to the Empire, the commercial nobles of the Kingdom of Aragon lost their power. And the balance of power shifted to the Kingdom of Castile, which was mainly composed of agricultural nobles.

The conservative feudal nobles of Castile strongly opposed the abolition of internal tariffs, believing that the right to collect taxes was a noble privilege.

-The right to collect taxes is our natural right!

-We swore allegiance, not submission!

This was their firm belief.

The case of the Habsburgs, or rather, the Holy Roman Empire, was similar. In terms of land area alone, the Holy Roman Empire was the largest country in Europe. The problem was that among the princes who divided this vast territory, few were truly loyal to the Emperor of the Holy Roman Empire. Attempts to break away from the Holy Roman Empire were constant, and there were frequent instances of disobedience or defiance of the Emperor’s orders.

In an environment far from political stability, the princes had no choice but to maintain a strong military force. Maintaining a strong military force required a lot of money, and the princes had no intention of abolishing internal tariffs.

In the end, the Habsburgs could only continue their reform policies within their own territories.

* * *

What was surprising was England’s success.

England was a place where the influence of the nobles had become stronger since the signing of the Magna Carta [a charter of liberties to which the English barons forced King John to give his assent in June 1215]. However, as time passed, the growing commercial power became another pillar of power. The commercial power made good use of the Magna Carta.

-The contracting party of the Magna Carta is ‘all free men’! We also have natural rights!

In this way, a triangular system of king-nobles-citizens (gentry, commercial power) was created. Although still crude, a relatively stable power structure was created, and England succeeded in tax reform.

* * *

With the success of tax reform in Italy, Portugal, England, and France, an industry disappeared into the annals of history.

Tax farmers.

During this period, European administration was far behind that of the East. At best, it was similar to Japan during the Muromachi Shogunate period [a Japanese feudal military government that existed from 1336 to 1573]. The most problematic part of the backward administration was taxation. That’s why tax farmers appeared.

The profession of tax farmer, which had existed since the Roman provincial period, involved them paying taxes in advance and then collecting taxes from the people in their assigned areas. The problem was that tax farmers set and collected taxes as they pleased.

The state or lord did not care how much the tax farmers collected as long as they received the amount they expected to collect. Therefore, tax farmers could amass a lot of money, and sometimes several of them would jointly operate a tax farming company. And, as a natural consequence, many tax farmers also engaged in usury, lending money at interest according to the tax amount they set.

Tax reform was a fatal blow for these tax farmers. No, administrative reform for tax reform was the beginning of the fatal blow.

* * *

“It’s difficult right now, but let’s increase the number of officials first.”

“Look at the examples of the Empire and Kitai [a medieval empire that ruled over parts of North Asia from the 10th to 12th centuries]! Officials must do what officials have to do!”

Italy, Portugal, England, and France, which had greatly increased the number of officials, began to reorganize their administration in earnest. The first thing they tackled was the census register. Until now, birth and death records, which had been under the management of the church, were copied and handed over to government offices, and land surveys were conducted again more thoroughly. With the proper organization of the census register and land records, the European powers were able to move on to the next stage.

* * *

As the kings and central officials began to operate the tax system directly, ousting the tax farmers, they were horrified.

“So much money was leaking!”

The kings and nobles, who were surprised to learn that the amount embezzled by the tax farmers was enormous, were then enraged. This was because the tax farmers collected high taxes from the people and engaged in usury, but they themselves did not pay taxes.

“This can be seen as treason!”

The enraged kings and ruling class began to arrest tax farmers. Most of the tax farmers arrested were deprived of all their assets and publicly executed.

“We were just following the law! The taxes we had to pay were simply not defined by law!”

“We were justified!”

Many tax farmers protested in this way, but the answer they received was simple.

“Shut up!”

“Can’t you hear the cries of the people!”

In the end, on the way to the execution ground, the tax farmers realized why this had happened to them, as they were pelted with stones and filth by the gathered people.

‘We were scapegoats.’

The purpose was to direct the people’s dissatisfaction, which had been caused by taxes, not to the king or the powerful, but to themselves. The plan was to quell the people’s dissatisfaction with their heads hanging on the execution platform and, behind the scenes, to replenish the budget with the wealth they had accumulated.

Against the backdrop of blood flowing in the execution ground, the era of tax farmers came to an end. In this process, many Jews suffered. This was because a significant number of tax farmers were Jews. And the hatred of Europeans towards Jews deepened further.

* * *

Portugal, Italy, England, and France, having secured budgets through successive reforms, began to show renewed enthusiasm for the arms race.

This was called the ‘Second Arms Race.’ And this time, they used their heads a little more.

They created investment institutions similar to the Empire’s investment fund. The history of joint ventures had continued since ancient times, but the Empire was almost the first to institutionalize the trading of shares in them.

They invested in infrastructure projects such as large steel mills with the capital raised through the investment institutions they created, and proceeded with more economical military expansion. However, military expansion was an endless war of attrition.

Before they knew it, the enormous funds extorted from the tax farmers were slowly starting to run out.

“Funding is the problem……”

The great powers, looking for new sources of funds, began to drool again as they looked at the colonies of other great powers.

“If only we could take those places……”

* * *

Meanwhile, in Seoul, Hyang, who was analyzing the situation, sighed deeply.

“Hoo~, another incident is about to happen.”

“The ministers are also worried. Is it that serious?”

Hyang nodded at Hyun’s question, who was talking with him.

“Yes. Looking at the situation in Europe right now, it’s like a glass that’s almost full of water. The problem is that they keep pouring water in even so. If the water overflows……”

“A great war will break out.”

“That’s right. So we must not be negligent either. Right now, there are three countries linked by the Jangjang Alliance, aren’t there?”

“I will [take care of it].”

“Hoo~.”

Hyang, who sighed deeply again, unknowingly blurted out his true feelings.

“If a war breaks out, I hope it happens after I die. No, should I pray that way?”

Hyun could understand his feelings at Hyang’s words. Hyang had experienced all the great wars that had determined the fate of the Empire. It would be strange if Hyang wasn’t sick of war. The historian who was recording this next to him added these words.

-….As the Supreme Emperor, who was examining the situation, was worried, His Majesty the Emperor was also worried.

-The historian says.

What the Supreme Emperor predicted almost always came true. If what the Supreme Emperor said comes true this time as well, the historian only prays for one thing.

Please have a long and healthy life.

“Historian? Are you writing useless things again?”

“Ah, no!”

“Tsk!”