Chapter 188


    Won Tae-sos argument had Emperor Xuande re-examining the design of the currency closely.


    Indeed


    The image of two dragons facing each other, with a magical orb between them, seemed as if they were growling at one another.


    Thats when the heated debate among the officials began.


    The main participants were the assistant instructors of the National Academy.


    What if we just add another magical orb, if its all about the one orb?


    The problem is the two dragons. Twoplete dragons in one ce? That implies the nation will be divided!


    Even numbers easily split into two! We must never have an even number!


    How about three dragons, then?


    That wouldnt be bnced, would it!


    Look at the Ding (, an ancient cooking vessel, symbolizing nobility). It stands on three legs, doesnt it! Yet its perfectly bnced and held in high esteem!


    How many corners does the currency have? Four, right! And you suggest putting in only three dragons? Does that make sense to you? We need to put in four!


    Four dragons on that small currency? Do you not know the meaning of excess ()? Ah, to think a high official of this empire could be so ignorant!


    Ignorant? Such insolence!


    The fierce debate escted dangerously. However, considering the recent incident that led to many eunuchs, officials, and warriors being imprisoned, and eventually executed, they were careful not to cross the line of danger too tantly.


    One dragon is enough!


    Arent you considering the harmony of Yin and Yang? Can harmony be achieved with just one?


    In all my years, Ive never heard of dragons having genders! Dragons, by definition, are mythical creatures that ascend to heaven by absorbing the qi of the universe through cultivation! The idea of sacred dragons mating likemon beasts and having offspring is ludicrous!


    While watching the heated debate among Ming officials and eunuchs, the Vice-Minister of Taxation muttered to himself in frustration.


    Just use andscape painting!


    He wasnt the only one with this thought. Emperor Xuande, looking tired and irritated, suddenly shouted in anger.


    Enough! Stop this at once!


    At the emperors sternmand, the officials immediately ceased their arguing and prostrated themselves on the floor. Emperor Xuande, with a face full of annoyance, turned to the Minister of Taxation.


    I ask the envoy from Joseon! How did Joseon resolve this issue?


    As you know, we used andscape painting.


    Right.


    Hearing the Vice-Minister of Taxations response, Emperor Xuande looked back at his Ming subjects.


    If we must include an image on the currency, let it be andscape painting instead of dragons.


    That would be uneptable!


    The objection came immediately from the Minister of Internal Affairs.


    Why is that?


    Dragons symbolize the emperor and the empire itself! We cannot possibly remove the dragon!


    Thats right!


    The dragon must be included!


    With those words, the previously arguing parties united in support of the Minister of Internal Affairs. Emperor Xuande, cing a hand on his forehead, sighed deeply.


    Ah, how shall we resolve this


    After a long and intense debate, Emperor Xuande finally made a decision.


    If a dragon must be included in the new currency, then it shall be only one. There is but one emperor, and one empire. Thus, there shall only be one dragon. Like the emperors sovereignty epassing the four seas, the dragon shall encircle the four corners of the currency.


    We obey yourmand!


    Long live the emperor! Long, long live!


    At Emperor Xuandes decision, the officials and eunuchs all prostrated themselves and responded in unison.


    Watching from the side, the Minister of Taxation joined in the cheers but grumbled to himself.


    Really, if he was going to decide it all along, why put us through all this trouble!


    *    *    *


    Two weekster, the Vice-Minister of Taxation was finally able to return to his homnd.


    Theres Jemulpo!


    Hearing the shout of a subordinate official, the Vice Minister of Taxation rushed out of the cabin to the bow of the ship.


    Finally, back to Joseon! Ive returned to Joseon!


    Emotion filled the Vice-Minister of Taxations voice.


    *    *    *


    Upon arriving at Jemulpo, the Vice-Minister of Taxation and his entourage switched boats and traveled via the Han River directly to Hanyang.


    Entering Geunjeongjeon, the Vice-Minister of Taxation and his party reported their return to King Sejong.


    You have endured much hardship, taking on unexpected tasks.


    It is our duty to follow Your Majestysmands.


    Though their words were respectful, the faces of the Vice-Minister of Taxation and the envoy were worn.


    Seeing their weary faces, King Sejong gave an order.


    There must be much you need to report, but seeing your current state, rest is paramount. Take two days off, thene to report.


    Upon King Sejongs words, the Vice-Minister of Taxation and his entourage immediately prostrated themselves and eximed,


    Your benevolence is boundless! Long live the king, long, long live!


    The historian who recorded all these events added a note at the end.


    -The historian remarks,


    <i>(Were) full of envy.</i>


    *    *    *


    Two dayster, the Vice-Minister of Taxation went straight to Geunjeongjeon upon his court appearance. In the presence of King Sejong, high-ranking officials, and senior ministers, the Vice-Minister of Taxation reported everything that had transpired in Ming.


    Therefore, Ming is preparing to circte new currency. They anticipate the new currency will be in cirction in about two years.


    I see. What about the poption andmercial scale of Ming?


    At King Sejongs inquiry, the Vice-Minister of Taxation paused to recollect before responding.


    While I could not ess detailed information to provide exact figures, it is estimated that the poption is about 12 timesrger, and themercial scale is about 20 times that of ours.


    Twenty times!


    The words themercial scale is 20 times caused a stir among the ministers gathered in Geunjeongjeon.


    On what basis can you make such a im?


    King Sejong asked with a trembling voice. He was aware that Ming was a great nation, but the notion that theirmercial scale was 20 timesrger was hard to believe.


    In response to King Sejongs question, the Vice-Minister of Taxation exined the basis of his im.


    Although I couldnt ess precise information, during the nning for the new currency, I had a brief opportunity to see the household registers and tax lists prepared by Mings Ministry of Taxation. Based on the poption recorded in the household registers and the tax amounts listed, I estimated themercial scale to be 20 timesrger.


    Even so, 20 times is


    As King Sejong shook his head in disbelief, Hyang intervened.


    Couldnt it be possible?


    You think its possible?


    Yes, the founding of Ming predates ours in Joseon. Moreover, we in Joseon have hindered the growth ofmerce and industry. Combining these two factors, its entirely usible.


    Is that so


    Sejong nodded, persuaded by Hyangs exnation.


    *    *    *


    Hyangs argument had some merit.


    Ming was established in 1368, while Joseon was founded in 1392, leaving a gap of about 24 years between their foundations. Additionally, Joseon emphasized agriculture in ordance with Neo-Confucian ideals.


    Of course, the 24-year gap was during thete Goryeo period, which had a tradition of favoringmerce. However, during this gap, the Korean Penins was devastated by invasions from Japanese pirates and internal strife among political powers, making it unsafe formerce and industry to flourish.


    The time gap and the agricultural focus of political ideology contributed to this significant disparity.


    *    *    *


    Hearing Hyangs exnation, King Sejong and the ministers nodded in agreement.


    I thought we had somewhat caught up, but to still be so far behind Sigh.


    King Sejong sighed deeply andmanded his ministers,


    It seems we still have a long way to go. Lets put in more effort.


    We will follow yourmand!


    Once again, King Sejong and his ministers reaffirmed their resolve.


    *    *    *


    The Vice-Minister of Taxation then began to speak about what he considered to be the most crucial issue.


    Your Majesty, during my stay in Beijing, I deemed one matter of utmost importance, which I shall report. As you might already be aware, the value of silver in Ming continues to rise.


    King Sejong turned to Hyang upon hearing the Minister of Taxations words.


    I have received reports. Is it that serious?


    Right before my return, one could exchange 1 nyang of gold for 8 nyang of silver. Consider this in light of the time when Joseon attacked Tsushima Ind and we obtained sulfur from Ming for gunpowder production, where the exchange rate was 1 nyang of gold for 10 nyang of silver.


    Hmm


    King Sejong pondered for a moment. The conquest of Tsushima Ind had urred 11 years prior. During the preparation for that campaign, there was a need to increase the stockpile of gunpowder by obtaining sulfur from Ming.


    I see. The value of silver has risen significantly. Whats the reason?


    The consumption of silver has increased. Ming had already started collecting taxes in silver and conductingmercial transactions in silver long before Joseon. As a result, the consumption of silver outpaced production, leading to an increase in its value.


    I understand. So


    Pausing briefly, Sejong turned to Hyang, recalling the flurry of activities that ensued upon receiving information about the influx of silver from Ming.


    Reflecting on Hyangs actions, Sejong asked the Minister of Taxation,


    What do you think would have happened if we hadnt mentioned the currency cirction issue to Ming this time?


    I tentatively brought up the subject with the Ming officials weve established rapport with, and it seems there was a considerable likelihood that they would have recouped silver in the form of tributes.


    Is that so? That was a close call.


    Hearing the Vice-Minister of Taxations response, Sejong sighed deeply and brushed his chest in relief. If themercial scale of Ming was as immense as described by him, there was a risk of all of Joseons silver being drained away as tribute, without properpensation.


    Sejong looked around at his ministers.


    As youve heard from the Minister of Taxation, with the increasing demand for silver in Ming, we must find ways to protect our silver. And we must do so without provoking Ming, a superior nation.


    We will follow yourmand!


    As soon as the ministers responded, Hyang joined the conversation.


    Your Majesty, may your son speak?


    Proceed.


    With Sejongs permission, Hyang quickly got to the point.


    To prevent our silver from being drained into Ming, we must consider various strategies. However, the first thing we should do is prevent Joseons merchants from bringing gold into Ming.


    Why gold of all things, not silver?


    At Sejongs question, Hyang sinctly replied,


    Even if individual merchants profit, its a loss for Joseon as a whole.


    Hmm?


    Hyangs answer made Sejong and the ministers stroke their beards as they pondered the underlying meaning.


    After a moment, Sejong, Minister of Taxation Kim Jeom, and Maeng Sa-seong simultaneously eximed in realization,


    I see! For every nyang of gold thates in from Ming, we lose two nyang of silver!


    Exactly!


    What Hyang was referring to was the arbitrage opportunity and loss between the gold-to-silver exchange rates of Ming and Joseon.


    *    *    *


    When they first introduced paper money, Hyang and the Ministry of Taxation set the gold-to-silver exchange rate at 1:10. This rate was decided not only based on production and cirction volumes but also for ease of management in various economic aspects, including taxation.


    However, if the gold-to-silver exchange rate between Ming and Joseon differed, as it currently did, it was clear that merchants would exploit this difference.


    Immediately, merchants buying gold in Ming and bringing it to Joseon to exchange or to pay for goods would gain an additional two nyang of silver for every nyang of gold, due to this rate difference.


    While this was profitable for individual merchants, it was a loss for the nation as a whole.


    This was not just a theoretical concern. During thetter part of Ming and the Qing Dynasty, European merchants trading with China maximized their profits precisely through such arbitrage.


    Until the 17th century, Europes exchange rate maintained a traditional level of 1:12. However, Chinas rate was 1:6. Simply put, European merchants could buy gold in China and sell it upon returning to Europe for a 100% profit.


    Thus, the merchants of the East India Company busily traversed between Europe, China, and Japan, reaping substantial profits through arbitrage.


    They would take silver from Europe and Japan to China, exchange it for gold, take that gold to Japan to exchange for silver, and then bring that silver back to China to exchange for gold again before returning to Europe to sell it for a profit, multiplying their earnings several-fold. (Note 1)


    *    *    *


    Understanding the issue Hyang raised, King Sejong and his ministers decided to immediately enact relevantws.


    Then, Hyang made another assertion.


    We must bring Japan under control.


    Subjugate Japan? Isnt that too hasty?


    Sejong, who equated subjugation with war, expressed his concern in a worried tone. Hyang borated further.


    Im not suggesting we subjugate them through military force. We need to make the Japanese market exclusively ours.


    *    *    *


    Note 1: The Story of the Jews  How They Created the History of Wealth, by Hong Ik-hee. Published by;B Leaf.