Chapter 171: Aftermath and Currency. (6)
Of course, there was the problem of having to deduct 10% when exchanging for physical silver.
However, Sejong, having obtained information that paper currency was popular in Ming, moved quickly and sent an envoy to the Emperor at the end of the Giyu year.
After the establishment of the joint trading company, the Ming Emperor treated Joseon's envoys generously. Thanks to this, the newly dispatched envoys were able to have an immediate audience with the Emperor.
"The winter envoys just came and went not long ago. What is it this time?"
"Yes, Your Majesty. Though it is embarrassing to report this, actually..."
Through the meeting with the Emperor, the envoy was able to obtain an imperial edict stating, "Regarding Joseon's currency, the laws of Joseon shall be followed."
Of course, the Emperor did not permit this simply because he liked Joseon.
"Merants calculate profits quickly and never do things that result in losses. Upon hearing this edict, they will absolutely not hand over silver to Joseon."
At the Emperor's words, the Grand Secretary bowed his head deeply.
"Truly a wise judgment, Your Majesty."
At this imperial edict from the Emperor, the reaction from Ming's people was quiet. This was because it was not a problem as long as they didn't exchange for physical goods.
In the case of Wa, they were even more proactive than Ming.
* * *
At that time, only Ming possessed the technology to refine high-purity silver. However, a variable occurred with Hyang's intervention.
"Now... what was it again? The silver smelting method?"
Thanks to Hyang, Joseon was able to produce silver of purity comparable to Ming's more easily. The silver smelting method demonstrated by Hyang had better productivity than the amalgamation method that Ming was using at the time.
However, due to the importance of this technology, neither Ming nor Joseon spread the silver smelting method or amalgamation method to Wa.
Therefore, the silver ingots produced by Wa had lower purity. For this reason, when trading with Wa, Joseon requested Ming's heavenly silver as much as possible. Otherwise, Joseon calculated 3 nyang of Wa silver as 1 nyang, and this was applied in official records as well.
To give a simple example, even in the case of the Eighty Thousand Tripitaka Koreana that Hyang had sold to Wa in the past, the "500 gwan of silver (approximately 1.87 tons)" recorded in official documents was the final amount converted to Joseon silver, and what Wa actually paid was 1,500 gwan of Wa silver.
Given this situation, for Wa's merchants, Joseon's "1 nyang of silver" paper currency was the best means both as a trading method and as a means of accumulating wealth.
It became routine for Wa's merchants to load their ships with silver ingots, enter Joseon, and exchange them for paper currency.
In this way, Joseon's paper currency was becoming the official trading currency of the three Northeast Asian countries.
* * *
It wasn't just Wa that brought silver and exchanged it for paper currency.
Ming's merchants also brought silver to the trading post in Shandong and exchanged it for paper currency.
At Joseon's trading posts, the purity of silver brought by merchants was thoroughly inspected, and only proper heavenly silver was accepted for exchange. The exchange wasn't done on the spot either. Only after the silver loaded on ships arrived in Joseon and was verified would newly printed paper currency from Joseon be loaded onto ships and sent to Shandong to be handed to the merchants.
Although it took time, Ming's merchants were satisfied.
"Joseon's officials don't take bribes!"
"If 10 nyang of silver goes, exactly 10 sheets of paper currency come back!"
As such rumors accumulated, trust in Joseon's paper currency gradually increased, and more and more Ming merchants gathered in Shandong with silver.
The problem was that this all happened within just a few months, from the autumn of the Giyu year to the spring of the Gyeongsul year.
* * *
When such large amounts of silver began flowing in from Ming, Kim Jeom immediately ran to Sejong to report the situation.
"A large amount of silver is coming in from Ming."
"Didn't you make the same report just a while ago?"
At Sejong's question, Kim Jeom explained in increasingly greater detail.
"The amount coming in has exceeded expectations. Just last month it was 50,000 nyang of heavenly silver, but this month it's approaching nearly 1 million nyang."
"1 million nyang!"
At Kim Jeom's answer, Sejong was greatly shocked. It wasn't just Sejong—the ministers were equally surprised.
According to a recent report from the Ministry of Taxation, when the wealth moving throughout all of Joseon was converted to silver, it amounted to approximately 2 million nyang. (Note 1)
Simply put, this meant half of all the wealth moving throughout Joseon was flowing in.
"Is this a good thing? Or a bad thing?"
Facing an unexpected situation, Sejong's worries took precedence. At Sejong's reaction, Jo Mal-saeng immediately responded.
"Since ancient times, they say 'the more, the better,' so isn't this a good thing? We print just a few sheets of paper money and this much wealth comes in— isn't this a cause for celebration?"
At Jo Mal-saeng's words, Kim Jeom immediately stepped forward to refute.
"There's also a saying that 'too much is as bad as too little.' And 'just a few sheets of paper money'? Do you think that paper money is simply printed!"
It was the bell signaling the beginning of a war of words.
A fierce debate erupted on the theme of 'whether the massive influx of silver from Ming is good or bad.' The one difference from before was that they didn't ask about each other's parents' health.
Instead, they now attacked each other by asking what rank the other party had passed the civil service exam.
Eventually, Sejong had to step in again.
"Enough! What kind of disgraceful behavior is this! Are we meeting to discuss solving the problem, or is this a place to boast about yourselves?"
At Sejong's rebuke, the ministers immediately bowed their waists.
"We are ashamed!"
"Please forgive our ministers' disgraceful behavior!"
"Tsk!"
Sejong clicked his tongue with a dissatisfied expression and ordered the head eunuch.
"Go, call the Crown Prince!"
"Yes, Your Majesty!"
Meanwhile, the historiographer sitting in one corner of Gyeongjeon Hall recorded all of these events without omission.
-Thus, when the ministers' debate became heated, His Majesty stopped them and summoned the Crown Prince.
The historiographer says:
The ministers have served in office for decades, and in terms of scholarship, they are among the most outstanding in all of Joseon.
Yet, when even a small difficult problem arises, they cannot easily find an answer and must rely on the Crown Prince, who has just become an adult—this is a problem.
I, too, would like to live with a pile of paper currency. Low-ranking officials receive meager salaries.
* * *
"It's bad news. And very big bad news at that."
Hyang, who had rushed over upon being summoned, immediately wore a serious expression upon hearing the explanation of the problem.
"Why is that?"
At Sejong's question, Hyang asked back.
"Father. Right now, among our Joseon, Ming, and Wa, which country produces the most silver?"
"Ming."
"Then, among Ming, Joseon, and Wa, which place needs silver the most?"
"Ming..."
Sejong, who was answering Hyang's words, couldn't finish speaking and wore a serious expression.
"This is truly the worst of bad news!"
"That is correct."
At the conversation between Hyang and Sejong, the ministers grumbled inwardly.
'It's started again! Their private riddles!'
'Do they think it ends if only they know?'
Eventually, Heo Jo stepped forward as representative and asked.
"Your Majesty, why is this bad news?"
"Tsk!"
Sejong clicked his tongue with a face full of dissatisfaction and looked at Hyang.
"Crown Prince, explain."
"Yes, Father. Minister."
"Yes, Your Highness."
"Do you remember what I told you before? The saying, 'No one likes having the wealth from their own storehouse taken away by others.'"
'When was that story! How would I still remember! It's good that you're smart!'
Grumbling inwardly like that, Heo Jo still bowed his head.
"Ah! I remember!"
"This situation is the same. Ming's silver is flowing out—do you think Ming would like that?"
"That is true."
"Even if the Emperor doesn't find fault and leaves it alone, it becomes a problem for us."
"Why is that?"
"We don't have the capacity to digest it."
At those words, Heo Jo raised a counterargument.
"There are many things that were planned but pushed back due to funding issues. But if funds come in like this, wouldn't we be able to execute those plans and increase Joseon's capacity as well?"
"Of course, there is merit to those words as well. However, the silver coming in now is ours, yet not ours."
"What?"
Heo Jo made an expression saying he couldn't understand. No, not just Heo Jo—all the ministers made similar expressions, so Hyang sighed.
"Phew~. Minister."
"Yes, Your Highness."
"If you're spending silver like that to carry out work, but Ming's merchants all rush in at once, hold out the paper currency, and ask to exchange it for silver, what would you do?"
"...Surely such a thing wouldn't happen?"
At Heo Jo's question, Hyang answered firmly.
"'Surely' is what kills people."
'That's how the IMF killed people!'
* * *
In 1997, instability in capital markets triggered in Southeast Asia struck Korea. When Korea's capital market also showed unstable movements, those damned Japan withdrew funds first, and following that, other Western capitals also withdrew their investment funds one after another.
Thanks to this, Korea had to request support from the IMF.
While receiving the IMF's support like that, Koreans experienced an abyss. Perfectly fine companies collapsed, and the middle class collapsed.
This trauma from the IMF became ingrained in Koreans' DNA, and they came to engrave 'we are not a developed country' as a golden rule and live by it.
This way of thinking among Koreans was the same even during the global pandemic that occurred in 2020. Because they showed better results than other countries, many countries—especially developed ones—praised them, but quite many people were bewildered rather than liking that situation.
Words like 'Koreans view themselves too lowly!' circulated, but Koreans who heard such words rather became suspicious.
"What are these people up to?"
To Koreans filled with suspicion, Japan, which continued anti-Korean sentiment, was rather natural.
* * *
After briefly catching his breath, Hyang continued speaking.
"Rice and grain can be replanted and harvested again the next year. Cotton cloth and hemp cloth are the same. Wood takes time, but seedlings can be grown and harvested again. But gold and silver are different. They are not infinite. They are definitely things with an end. Looking at the current situation, Ming produces the most silver, but that silver doesn't come out forever, does it?"
"That is true."
At Hyang's words, Heo Jo and the ministers nodded.
"If we pour in the silver rushing in now and proceed with work, it is fast and easy. However, this is only growing the outer shell. If only the shell is large and the inside is empty, this is merely hollow grain that can't even be eaten. Right now, we are in a situation where we must grow both the outside and inside in balance."
At Hyang's words, all the ministers nodded.
A brief silence flowed, and Sejong opened his mouth.
"I suppose we must send an envoy?"
At Sejong's question, Hyang nodded.
"Yes. Proposing to Ming that they create and circulate their own paper currency is the best policy for now. Because if we make a mistake, military conflict with Ming could arise."
'It's a bit regrettable to give up the position of reserve currency. But Joseon is still too small.'
"That would be right."
As Sejong nodded at Hyang's words, Jo Mal-saeng interjected.
"Then should we take the same method for the silver coming in from Wa?"
At those words, Hyang shook his head.
"No. The silver coming in from Wa has small scale and low purity, so it needs to be processed once more by our hands, so it's fine to leave it as is."
"But Wa could also raise objections."
"Isn't there a sea between Wa and our Joseon? And, our Joseon's navy is protecting that sea."
"Ah..."
At Hyang's words, Jo Mal-saeng finally nodded his head greatly. Seeing that, Hyang grumbled inwardly.
'Should I send that man back to being a records officer?'
Eventually, the composition of the envoy to be urgently sent to Ming was decided.
* * *
"...So, I need you to take on the role of chief envoy to Ming. You know best about paper currency, don't you?"
At Kim Jeom's words, the Vice Minister of Taxation expressed his dissatisfaction.
"Doesn't the Minister know more about paper currency than I do? I'm busy right now, why are you doing this?"
At the Vice Minister's words, Kim Jeom answered calmly.
"I need to stay here and take charge of directing the work that has come up. And, at this age, should I be going to Beijing?"
At Kim Jeom's words, the Vice Minister grumbled inwardly.
'Really! We're both getting old together, this is too much!'
"They say the Crown Prince will give a special lecture once the envoy is organized, so prepare well."
"...Yes."
"When you go to Beijing, there are many good things for the body, so get some and take care of your health."
*Grit!*
* * *
Note 1) This is a fictional figure based on the revenue list written in Chapter 168, with the author's imagination added.