Black Corporation: Joseon [EN]: Chapter 127

Jjangra

Hello, Bomb

127. National Joseon Bank (2)

‘Severing the connection between tenant farmers and local magnates.’

Hyang’s shocking statement caused a small stir within Geunjeongjeon Hall. However, the stir soon subsided.

‘The Crown Prince is being the Crown Prince again.’

Because every time Hyang publicly announced something, events that exceeded imagination occurred one after another, it was already a familiar occurrence to the ministers.

Because it had become a familiar occurrence, the ministers were able to quickly regain their composure and pointed out aspects that they thought could become problematic.

“You said that you would establish a bank to sever the connection that binds the tenant farmers. Then, will the funds of that bank be used to pay off all the debts of the tenant farmers on their behalf?”

Minister of Personnel Affairs Heo Jo stepped forward as the vanguard and posed a question to Hyang. Heo Jo continued speaking towards Hyang with a sharp expression.

“If that is the method, then I oppose the establishment of the bank. Although the situation of the tenant farmers is pitiable, simply writing off their debts will not break their shackles.”

Hyang nodded at Heo Jo’s criticism.

“You are right. If I thought that simply writing off debts would break the chain of bad practices, that would be a naive thought. The plan I have in mind is for the creditor of the debts that the tenant farmers owe to be the bank, that is, the court, not the local magnates [powerful landowners].”

“The bank becomes the creditor?”

“That’s right. The bank steps in and repays the debts owed by the tenant farmers on their behalf, and the tenant farmers repay that debt to the bank. Even after that, when tenant farmers, as well as ordinary people, urgently need funds due to various circumstances, they will be able to take out loans from the bank.”

“Will tenant farmers or commoners use the bank?”

Minister of Finance Kim Jeom stepped forward to answer Heo Jo’s question.

“We just need to make them use the bank. The easiest way is to set a low interest rate.”

“Lower the interest rate……”

“When you hear the stories circulating among the people about the current interest rates on private loans, they say, ‘If you only receive the same amount of wealth as the principal in one year as interest, you can call them a bodhisattva [enlightened being].’ If that’s the case, then even if the bank’s interest rate is 50%, the bank’s doorstep will wear out.”

“Hmm……”

At Kim Jeom’s words, the ministers all fell into thought. Looking at those ministers, Hyang opened his mouth.

“I am expecting a maximum of 30% per year as interest.”

When Hyang mentioned ‘30%,’ the ministers’ eyes widened.

“30%!”

“Isn’t 30% too low?”

When the ministers showed a negative reaction to the 30% interest rate, Hyang pointed out one fact.

“You must not forget that those who urgently need loans are the tenant farmers.”

“We know that, but?”

Hyang pointed out one thing that the ministers had forgotten.

“Have you forgotten that at least half of the harvest disappears as land rent as soon as it is harvested?”

“Ah……”

“We’ve only been living on stipends, so……”

At the ministers’ reaction, Hyang wore a dumbfounded expression.

‘Until the day before yesterday, these were nobles who lived off tenancy fees!’

The practice of receiving land through the gwajeon law [land allocation system] and replacing stipends with tenancy fees was changed to living by returning the land and receiving stipends as Sejong implemented reforms.

There may have been resistance from the ministers in this process, but the situation at the time was not one in which they could dare to resist. This was because there had been a purge of veteran ministers, including Ryu Jeong-hyeon, just before.

In the end, the ministers had to spit out all the land while saying, ‘Huh? Huh?’

And it had not even been a few years since they changed the system, but the ministers had forgotten that fact.

‘It is human nature to forget when you get used to it, but what are we going to do if you live in a different world already?’

Suppressing his bitter feelings, Hyang continued to speak.

“Therefore, an interest rate of 50% is an enormous high interest.”

Heo Jo raised an objection to Hyang’s statement.

“However, 30% is an excessively low interest rate. If you lend at a low interest rate right away, the tenant farmers and commoners will like it, but if you are not careful, they may forget ‘the fear of being in debt’ and make excessive loans.”

“That’s why it’s 30%. 50% is too high. Also, competition may arise.”

“Competition?”

“From the perspective of the local magnates, an interest rate of 50% is lower than the interest rate they have been receiving so far, but it is still an appetizing interest rate. If that’s the case, they may be willing to compete with the bank established by the court.”

“Such insolence!”

Heo Jo flared up, but Hyang instead asked a question.

“There is no law right now that prohibits private individuals from establishing banks. Of course, we can create a prohibition law, but if we are not careful, it may burrow into the underground and create an illegal flow of wealth. What do you think about this?”

‘The underground economy will become huge!’

“Ugh……”

At Hyang’s criticism, Heo Jo groaned and suppressed his anger.

Hyang continued with a more detailed explanation.

“If we install banks up to the hyeon level [county level], just like the Office of Monopoly under the Ministry of Finance, we can gain benefits in many ways.”

Hyang explained the tasks of the bank one by one.

1. Lend funds to self-employed farmers and tenant farmers who need funds.

2. Exchange the grains and cotton cloths brought by the people for currency.

“If we collaborate with the Office of Monopoly under the Ministry of Finance in this second item, the effect will double.”

When Hyang mentioned the word ‘collaboration,’ Kim Jeom asked, tensing up.

“When you say collaboration?”

“Items sold at the Office of Monopoly, especially salt, are essential items for the people. If we stipulate that the purchase of these monopoly items must be made with currency only, then currency can be firmly established.”

“That would be the case.”

Kim Jeom nodded at Hyang’s explanation.

“There will be a few more advantages in addition to that.”

Sejong, who was listening to Hyang’s explanation, interjected in the middle.

“I will listen attentively.”

The ministers focused their attention on Sejong.

As the ministers focused, Sejong spoke about his thoughts.

“In the process of reorganizing the Six Ministries, there is the newly established tax office. Make sure that the taxes received by the tax office are paid in currency unconditionally. Then the use of currency will become even faster.”

“That is what will happen.”

“And I think the Crown Prince’s idea of having the bank take charge of exchanging grain and currency is truly good. If we do that, the court can collect the grain sleeping in the granaries of private houses, and the grain collected in this way can be used for military provisions as well as relief grain.”

“That is truly the case!”

“I am impressed by Your Majesty’s insight!”

“Haha! You flatter me!”

Sejong replied with a pleasant laugh at the ministers’ praise.

Meanwhile, Hyang flipped through the pages of the book he was holding for the presentation, grumbling inwardly.

‘I was going to say that! Hey! Jjijjippong [a childish expression of annoyance]!’

In any case, the existence of the bank that Hyang mentioned was a pretty good plan. Because Sejong also showed a favorable reaction, the ministers decided to establish the bank.

“The establishment of the bank is important, but there is a matter to be resolved beforehand.”

“There is a matter to be resolved beforehand?”

At Hyang’s statement, Sejong and the ministers once again braced themselves and focused on Hyang.

“First of all, there is the problem of high interest rates. We said that we would solve it by establishing a bank, but building the building to be used as the bank, deploying officials, and preparing funds all take time. However, there are more than a few people who are suffering from high interest rates right now, so we must first implement a plan to save them.”

Heo Jo immediately took Hyang’s words.

“That’s right. For some time now, memorials regarding high-interest debt have been coming up from not only Hanseong-bu [Seoul] but also various cities.”

“The people of the cities are in high-interest debt? What is the interest rate on the debts of the people of the cities?”

“It is 10 times the principal.”

“10 times! And they still take on debt?”

When Sejong asked in surprise, Kim Jeom answered.

“According to an investigation conducted recently due to the problem of high interest rates, the number of people borrowing seed money has increased as the number of people engaged in commerce and industry has increased. In the case of this seed money, the amount borrowed is also considerable, and in addition, there are many cases where those who start a business fail, so the interest rate is said to be high due to the risk.”

At Kim Jeom’s answer, Sejong muttered with a bitter face.

“As the number of people engaged in commerce and industry increases, these problems also arise.”

‘This is dangerous! It is unlikely that it will happen because it is already a trend, but if we are not careful, it may lead to the suppression and contempt of commerce and industry again!’

At Sejong’s words, Hyang hurriedly opened his mouth.

“Father! There are many people who fail when they take on new challenges! The problem is those who only think about jumping into commerce and industry without proper preparation!”

Sejong nodded at Hyang’s criticism.

“The Crown Prince is right. No matter how small and trivial the task, you must prepare properly so that you do not suffer a setback. So, what should we do?”

“We should set up a business start-up review department in the bank to be created in the cities to review those who want to start a business and decide whether to approve the loan.”

“Business start-up review department?”

When Sejong showed interest, Hyang explained in a little more detail.

“Yes, Father. The officials of the Ministry of Finance who handle tax affairs for merchants and artisans will have a good understanding of which industries are doing well and which industries are highly competitive.

Therefore, we should select those among the officials of the Ministry of Finance who know the relevant work well and assign them to the business start-up review department.”

Sejong clapped his knees at Hyang’s words.

“That’s right! They will know well what is doing well in that city and the competitive situation of the industry that the person trying to start a business has chosen! They will be able to give advice to those who are newly starting a business! What do you think, Minister of Finance?”

At Sejong’s question, Kim Jeom answered with a reluctant face.

“O, of course, that is what will happen.”

“Then……”

As Sejong showed signs of adding work to the Ministry of Finance, Kim Jeom hurriedly continued to speak.

“The Ministry of Finance is the right place to handle tax affairs for merchants and artisans, but the Ministry of Personnel Affairs is the place to handle affairs related to starting and closing businesses! The basic thing for a start-up to succeed is to avoid excessive competition, so the Ministry of Personnel Affairs is the right place to give advice on this!”

‘I refuse to take on any more work, and I also refuse to have my work taken away like plucking dried persimmons after I’ve made it somewhat useful!’

Thanks to desperately racking his brains, Kim Jeom nicely passed the ‘fireball’ thrown at him to the Ministry of Personnel Affairs.

Sejong pondered Kim Jeom’s statement and nodded.

“Is that so? That’s right. What do you think, Minister of Personnel Affairs?”

Heo Jo, who had suddenly taken on the fireball, stammered and replied.

“It is, it is certainly true that the work related to starting and closing businesses is the work of the Ministry of Personnel Affairs.”

“Then, let’s have the officials in charge of the business start-up review department be selected primarily from the Ministry of Personnel Affairs. However, since the people are trying to start a business to gain wealth, let’s also appropriately assign officials from the Ministry of Finance.”

As Sejong came to a conclusion, Heo Jo and Kim Jeom bowed their heads at the same time.

“We obey your command!”

* * *

In that way, the agenda regarding the ‘establishment of the bank’ proposed by Hyang was passed.

“Then let’s stop here for today. Go and see to your work.”

As Sejong declared the adjournment, the ministers paid their respects and left Geunjeongjeon Hall one by one.

“Ahem!”

“Cough!”

As they left Geunjeongjeon Hall, Kim Jeom and Heo Jo glared at each other and cleared their throats. Hyang lit a fire and threw a fireball, which Kim Jeom passed on to Heo Jo, and Heo Jo was directly hit. Kim Jeom did not completely escape, but he was not directly hit like Heo Jo.

“No, Minister. There aren’t enough people as it is……”

Heo Jo grumbled, and Kim Jeom retorted.

“Who are you saying doesn’t have enough people in front of right now? Thanks to you taking them away like plucking dried persimmons as soon as I make them useful, the officials of the Ministry of Finance are in a situation where they are being ignored.”

At Kim Jeom’s words, Heo Jo groaned and said.

“Ugh… I have some good wild ginseng at home, so I will send it to you soon. You must take some tonic because you are working so hard, right?”

Kim Jeom immediately replied to Heo Jo’s words.

“Come to think of it, I recently got about ten soft-shelled turtles. I will send the soft-shelled turtles to your house, Minister. It is a good ingredient for strengthening, so boil it thoroughly and eat it.”

“Ahem! Ahem!”

“Cough! Hum!”

The two high officials cleared their throats loudly and walked away from each other, striding towards Yukjo Street [street where the Six Ministries were located].

If strangers heard it, they would have heard the two high officials speaking out of concern for each other, but those who had lived in the Yukjo government office to some extent could tell that this was a huge declaration of war.

Ginseng was a famous medicine to the point where it was said to ‘make even the dying jump up.’

So, the words ‘eat ginseng’ meant ‘work to death.’

Soft-shelled turtle was a famous food and medicinal ingredient for nourishing and strengthening. However, soft-shelled turtle was also famous for something else. That was the vicious nature of ‘clinging on even if its head is cut off.’

In other words, Kim Jeom’s statement that ‘I will send you a soft-shelled turtle’ was a roundabout way of saying, ‘I won’t die alone!’