Chapter 126: National Joseon Money House (國立朝鮮錢莊). (1)
"Father, did you summon me?"
"Yes. I called you because there is a matter I need to entrust to you."
"To me, Your Highness?"
At Sejong's words, Hyang tensed up. Though he had handled a considerable number of tasks that came to Sejong over the years, Sejong had never spoken like this when assigning work before.
"There are quite a few things to examine. First, would you organize things for me?"
This was the line Sejong used when dumping work on Hyang.
'But he said he has something to entrust to me without that preamble?'
At Sejong's words, which were different from usual, Hyang's tension reached its peak.
'Maximum difficulty!'
"Please command me. I will do my utmost."
At Hyang's answer, Sejong began to speak slowly.
"When I first started the Gyeongjang reforms, I had anticipated 10 years. And this year marks the beginning of the latter half."
"Yes, Father."
"Many things have happened over the past 5 years. Among them, the court ministers and the people followed along well, so the Gyeongjang reforms could proceed smoothly."
"It is all thanks to Father's virtue."
"Thank you for saying so. However, Crown Prince, your contributions are not small either."
"I am overwhelmed by your kind words."
As the father and son complimented each other, creating a warm atmosphere, Sejong got to the main point.
"To say again, from this year we enter the latter half of the Gyeongjang reforms. However, problems are arising."
Sejong explained to Hyang about the decision paralysis that had occurred over whether 'administrative structure reform should come first, or currency circulation should come first.'
"...and so the ministers want to proceed with currency circulation first. However, in many regions still, the village notables and landlords hold greater power than the court."
At Sejong's point, Hyang nodded.
"That is true."
Even in the 21st century, incidents like the 'Island Slave Case' represented events where even minimal human rights disappeared, occurring without end.
At the center of crimes that used intellectually disabled people or illegal immigrants as sacrificial lambs, local notables of the region were always positioned. And public authorities who joined hands with those notables were the basics.
"The reason I have been pushing forward with the Gyeongjang reforms was because I wanted as many of Joseon's people as possible to live in peace. Therefore, Crown Prince, I will entrust this task to you. Even if we reform the administrative structure, if currency does not circulate properly, more manpower than necessary will be consumed. Even if we operate the currency first, if administrative structure reform does not follow, it will end up only creating means for local magnates to enrich themselves."
At Sejong's words, Hyang nodded vigorously. What Sejong was worried about would not end as worries but were things that would actually happen.
"That is correct. Then what is my task?"
"Find a way to weaken the power of local magnates. Objects are fine, systems are fine too."
At Sejong's command, Hyang did not answer immediately but closed his mouth. After organizing his thoughts for a moment, Hyang posed a question to Sejong.
"Does Father hope for coexistence with the local magnate forces? Or is it purging?"
"Since they too are people of this Joseon, coexistence would come first. However, if they wish to play at being kings, I will cut them down firmly."
At Sejong's answer, Hyang nodded.
"I will engrave Father's royal heart in my bones and do my utmost to devise a plan."
"I trust you."
"By when should I finish?"
"If it's difficult by Ipchun (Beginning of Spring), I hope to receive it at least by Chunbun (Spring Equinox)."
"I will keep it in mind."
"I have great expectations for your talent and wisdom."
At Sejong's final words, Hyang bowed his head deeply.
"I will devote my very life."
The historian who recorded the conversation between father and son added the following note:
- Accordingly, the King commanded the Crown Prince to devise a policy regarding the magnates.
The historian discusses:
The history of magnates dates back to the ancient Three Han period. As time passed, many families experienced rises and falls, or were destroyed. However, still not a few families keep their positions, so the depth of their power roots can be sufficiently imagined.
Looking at today's magnates, there are certainly those who serve as examples for all people, but there are more who do not.
Since the Gyeongjang reforms the King is pursuing and the interests of the magnates conflict, a solution is needed.
* * *
"This really is maximum difficulty. Sigh~."
Having received Sejong's command and come outside, Hyang let out a long sigh.
"Good grief..."
Suddenly saddled with a difficult problem, Hyang took off his ikseongwan hat and scratched his head vigorously, then put the hat back on properly and clenched his fist.
'It's already changed history anyway. Rather than leaving it to someone else's hands... I'll finish it within my own authority!'
Having made a firm resolution, Hyang turned his steps.
"Your Highness, where are you going?"
"To the Records Office!"
* * *
Having arrived at the Records Office, Hyang began to thoroughly rummage through the records of the Ministry of Taxation and the Ministry of Punishments.
"Your Highness, what are you looking for?"
At the question of the official managing the Records Office's documents, Hyang stated his business.
"I am looking for records regarding Jangri (usury), Jamae (self-sale), and Jidae (land rent)."
At Hyang's question, the official unconsciously let out a groan.
"Oh dear..."
"Are there no records?"
"That is not it..."
Trailing off, the official thought for a moment then spoke right away.
"Your Highness, please follow me."
"Very well."
The official guided Hyang to a bookshelf in one corner of the Records Office.
"What is on these bookshelves are collections of lawsuits arising from Jangri issues, petitions stating that Jangri interest is too excessive, and the royal responses to those lawsuits and petitions."
Looking at the documents filling the bookshelves that seemed to be twice the size of his research institute's bookshelves, Hyang muttered with a pale face.
"Qui, quite a lot, isn't there?"
"These are records handed down since the time of King Taejo. And..."
The official guided Hyang to the bookshelves where the records he wanted were stored.
Seeing the documents completely filling large bookshelves for each category, Hyang could not close his mouth. Standing with his mouth open and blankly staring at the bookshelves, Hyang soon came to his senses and looked back at the official.
"You have worked hard. Go attend to your duties."
"Do you not need my help, Your Highness?"
"It's fine, thank you.
"Yes, then. Please call me if you need anything."
Having sent the official back to his place, Hyang let out a long sigh.
"Phew~, rot it... I knew things were too comfortable lately..."
Checking the bookshelves once more, Hyang rummaged through his sleeve and took out a small brush case.
"Anyway, it's a task I've taken on, and since it's something that must be done, I should do it properly."
From then on, Hyang became part of the Records Office.
* * *
"Hmm... as expected, the largest source of income for local magnates was Jangri rather than land rent..."
At a desk in one corner of the Records Office. Amidst the books and papers filling the large desk, Hyang was drawing his primary conclusion.
"The problem was Hwanguk (grain loan system)..."
Hyang, who had examined in succession the papers he had culled at length regarding Hwanguk, let out a long sigh.
"Sigh~. To reach a crisis situation in just 30 years..."
* * *
The origin of Hwanguk traced back to the Jindaedeung law created during the reign of King Gogukcheon of Goguryeo.
This law entered Goryeo and transformed into the Uichang (Righteous Granary) system, and this continued to be operated in Joseon as well.
The Hwanguk system operated during the Goryeo dynasty became a mess over time as the self-farming farmer class collapsed due to land consolidation by powerful noble families.
Joseon, which brought down Goryeo and took its place, made many efforts to put the Hwanguk system back on track.
It spurred the securing and increasing of Gunjagok (military provision grain) to prepare for popular unrest and border dangers.
As a result of steady efforts through destroying Goryeo's powerful noble families and the land reform process, by the 13th year of King Taejong (1413), various national grains including Gunjagok were stored to reach 3.57 million seom.
However, these stored grains and the Hwanguk system began to creak not long after.
This was because from the late reign of King Taejong until 2 years after Sejong declared the Gyeongjang reforms, droughts and floods alternated almost every year, and poor harvests continued.
Due to the continuing poor harvests, the nation's granaries were emptied, and the tragedy of small-scale self-farming farmers began.
And local magnates who had passed the small civil service examinations began land consolidation again using tax exemption benefits and other privileges. Those who lost their farmland to magnates and became tenant farmers lost their qualification to receive Hwanguk, and had to use high-interest Jangri.
And as self-farming farmers decreased, the collection of Hwanguk became increasingly difficult.
As these things formed a vicious cycle biting each other's links, the current situation was that the self-farming farmer class was beginning to collapse again.
Having examined the organized records, Hyang concluded.
"If left as is, self-farming farmers will collapse. The reason economic growth including grain production marked time from after Sejong until the Imjin War must be because of this too."
Having finished grasping the situation, Hyang crossed his arms and glared at the blank paper on the desk.
After staring only at the paper and thinking for a long while, Hyang finally opened his mouth.
"The conclusion is that only a bank is the answer. Only through a bank can we sever the link between tenant farmers and magnates. Only then can we break the power of the magnates."
After writing the word 'bank' on the paper then scrubbing it out vigorously, Hyang wrote a new word.
"In this era, Jeonjang (money house) would be more appropriate..."
* * *
Having organized his thoughts, Hyang organized even the policies to be implemented together with the Jeonjang and sought out Sejong.
"You have come after 20 days."
"I am ashamed that it took so long. My talent and wisdom were insufficient, so it took a long time."
"I am not scolding you. I said it because I am amazed that you found a solution in 20 days."
"I am overwhelmed with gratitude."
Having expressed his gratitude while bowing his head at Sejong's praise, Hyang looked at Sejong.
"May I report?"
At Hyang's request, Sejong nodded.
"Coincidentally, the ministers have all gathered, so this is truly a good opportunity. I permit it."
Once Sejong's permission was given, Hyang moved to the center of Geunjeongjeon Hall. With Sejong seated on the throne behind him, Hyang looked at the ministers, lightly bowed his head, and opened his mouth.
"Over the past several days, I conducted research under Father's command. The subject of the research is 'countermeasures against the magnates who hinder the promotion of currency circulation and administrative system reform.'"
At the topic Hyang spoke of, the ministers swallowed dry saliva. This was because they too knew well that the biggest obstacles to the Gyeongjang reforms were the magnates.
After catching his breath briefly, Hyang commanded the eunuch who had followed him.
"Hang the hanging chart."
"Yes, Your Highness."
When the eunuchs installed the hanging chart, Hyang proceeded with his explanation while turning the chart's papers.
"Today's local magnates, unlike the powerful noble families of the previous dynasty, are sadaebu (scholar-officials). Of course, there are many cases where the powerful noble families of the previous dynasty changed their names to sadaebu, but most are those who studied Confucianism, passed the civil service examinations, and then used various benefits as means of accumulating wealth."
At Hyang's explanation, the ministers nodded.
Hyang continued his explanation.
"The problems with these local sadaebu are, first, they are proceeding with land consolidation and ruining self-farming farmers. As you all know, although the number of people making their living through commerce and industry as their hangsan (steady occupation) through the Gyeongjang reforms is increasing, for most people, agriculture is their hangsan."
At Hyang's pointing out of reality, Sejong and the ministers all nodded.
"However, as pointed out earlier, the current situation in Joseon is that as self-farming farmers collapse, tenant farmers are increasingly growing. Looking at our Joseon's current tax rate for jeonse (land tax), the Gongbeop stipulates payment of 5 pun per 1 gyeol."
When Hyang mentioned taxes, Kim Jeom, the Minister of Taxation who was the head of the relevant department, listened with increasing tension.
"Self-farming farmers, if they do not neglect their work, have the ability to pay taxes and still live with their families and accumulate some wealth, but tenant farmers cannot. Why? First, 50 percent is taken away as land rent. And after that, they must give to the magnates for this and that reason."
Hyang, who had been speaking while making eye contact with the ministers, caught his breath briefly then extended his index and middle fingers.
"Here, the second problem arises. The second problem is that those who fell to become tenant farmers could not properly use Hwanguk, so they had to use Jangri from the magnates, and this increasingly binds tenant farmers to the magnates."
Having enumerated the collapse of self-farming farmers due to the magnates' land consolidation and the problems arising from it, Hyang moved to his conclusion.
"If such problems accumulate, eventually a situation will occur where the power of magnates overwhelms royal authority. Like the powerful noble families of the previous dynasty."
"So what is the countermeasure?"
At Sejong's question, Hyang unfolded the last sheet of the hanging chart.
"Establishment of Jeonjang. Using the gold and silver secured so far, as well as Gunjagok and the grain of Uichang, we sever the financial shackles binding tenant farmers to the magnates."