Chapter Eleven: The Right Chancellor’s Solution

Li Chong and Li Fei cheated during the examination and falsely accused an innocent person. According to the law, their punishment was doubled: they were beaten eighty times with a rod, made to wear a cangue and displayed at the gate of the Ministry of Personnel for six days, and banned for life from holding any official position. The futures of these two corpulent men were utterly ruined, and they became the laughingstock of all.

At the same time, word quickly spread among the candidates and throughout Chang’an, that among the imperial clan had emerged a young prodigy capable of composing poetry in seven steps—Li Zhao!

On the other side, Li Shizhi and the other examiners spent two days grading the more than nine hundred examination papers, then selected one hundred and twenty outstanding ones to present to the emperor. Naturally, the emperor, occupied by myriad affairs, could not possibly review all one hundred and twenty papers—he would only look at the top ten.

Yet before Li Shizhi could set out, a young eunuch from Xingqing Palace arrived: “His Majesty commands, the Left Chancellor is to enter the palace immediately for discussion!”

When the emperor summons, one dares not delay. Li Shizhi took the examination papers and, together with the eunuch, entered Xingqing Palace, heading straight for the Hall of Diligent Governance…

“Your servant bows before Your Majesty—long live the emperor, long live, ten thousand years!”

“Rise, my loyal subject, take a seat!”

“Thank you, Your Majesty!”

Within the Hall of Diligent Governance, Li Longji sat high upon the dragon throne, with Gao Lishi standing beside him. Below the imperial steps, more than thirty high officials clad in crimson and purple court robes were seated.

The foremost to the right was a man nearing his sixtieth year, his face fair as jade, his beard white and elegant, and his bearing refined and scholarly, radiating warmth and approachability. Who was he? None other than the Right Chancellor, Duke of Jin, Li Linfu, renowned as “honey in his mouth, a sword in his belly.”

Ah, how shocking, how unexpected, how jaw-dropping… As always: even villains can be handsome!

Among the others were Chen Xilie, the Right Vice Minister of the Secretariat; Yang Bo, Minister of Revenue; Wei Jiansu, Minister of Works; Luo Xishi, Imperial Censor; Ji Wen, Chief Magistrate of the Capital… Altogether, over thirty men, all high-ranking ministers of the third or fourth rank, of whom Li Linfu’s faction comprised nearly two-thirds.

Today, Li Longji had gathered these mighty ministers to deliberate a critical matter: the currency shortage.

The Tang Empire was now stable and flourishing, with thriving industries and booming commerce. Take Chang’an for example—tens of thousands of merchants from across the realm converged upon the city. The eastern and western markets bustled daily, with countless transactions.

Yet, as commercial activity surged, the problem of coin shortage grew ever more severe, reaching a point where it could no longer be ignored. How to resolve it, however, remained elusive.

The court had enacted policies, but with little effect. This troubled Li Longji to the point of sleeplessness, occupying his thoughts day and night, which was why the examination included such a policy question.

Of course, Li Longji did not expect inexperienced candidates to devise a brilliant solution; to truly resolve the issue would require the concerted wisdom of the entire assembly of ministers.

“Right Chancellor, as the foremost minister of the realm, what are your thoughts on the currency shortage?” The meeting began with Li Longji directing the first question to Li Linfu, who was clearly prepared. After bowing, he replied calmly, “Your Majesty, when coinage is insufficient, commerce falters, the people are unsettled, and the nation cannot prosper. Thus, your servant is deeply concerned, and after much contemplation, I have some insights to share.

Presently, Tang coinage is mainly copper coins. To solve the currency shortage, we must focus on copper coins and mint more, which is the best strategy. Yet the empire’s copper mines are limited and mostly deep in the mountains, making extraction difficult and expensive. Even with many laborers, it is hard to quickly increase output.

Without more copper ingots, we cannot mint more coins. However, I believe while the quantity of coins may not rise, their value can. I humbly request Your Majesty to decree the minting of new coins, alongside the current Kaiyuan Tongbao, to alleviate the shortage and augment the imperial treasury—a twofold benefit!”

As he spoke, Li Linfu produced a memorial, which Gao Lishi placed on the imperial desk. It detailed the proposal for new copper coins, complete with illustrations.

Currently, the circulating Kaiyuan Tongbao is valued at one wen. The new coins, similar in size and weight, would be worth five wen, ten wen… even fifty or one hundred wen.

Thus, a single coin could now represent several, even dozens, solving the shortage. The state would benefit as well—if thirty-two thousand strings of coins are minted yearly, switching to large-denomination coins would mean millions, even tens of millions per year, invisibly increasing the treasury and enabling greater endeavors.

“An excellent proposal from the Right Chancellor; I second it!”

“I second it!”

“I second it!”

Li Linfu’s suggestion to increase coin value was met with broad support from the ministers, and even Li Longji nodded, considering it a viable solution.

But at that moment, the Left Chancellor, Li Shizhi, stood and spoke: “I oppose resolving the currency shortage by increasing coin value. This is akin to drinking poison to quench thirst—though it may solve the problem temporarily, it will damage the foundation of Tang’s prosperity. Have we forgotten the lessons of Shu and Wu in the Three Kingdoms, where minting large coins led to soaring prices, public discontent, and ultimately, the fall of their states?”

Li Shizhi not only objected but cited historical examples, revealing that the idea of large-denomination coins was not Li Linfu’s invention, but had been tried before.

At the end of the Han and during the Three Kingdoms, after Liu Bei seized Yi Province, to fund his army he ordered the minting of “Zhibai coins”—each worth one hundred wen, replacing the old Wuzhu coins.

Sun Quan of Eastern Wu went further, minting Daquan Five Hundred, Daquan One Thousand, Daquan Two Thousand, and Daquan Five Thousand coins, forcing them into circulation.

In contrast, the northern Cao Wei regime sought to restore the Wuzhu coin to stabilize finance, but failed within a year, and abandoned it.

Subsequently, Cao Wei adopted grain and silk as currency, preferring to let commerce regress by centuries rather than mint large coins. Was this foolish, ignoring a ready solution?

Hardly. The Wei ministers were far from foolish—they calculated for the long term.

Minting large coins has both advantages and drawbacks, but over time, the drawbacks outweigh the benefits.

For instance, if the court buys an ox from the people, the market price is ten strings, or ten thousand coins.

If they pay with Daquan Five Thousand coins, only two coins are needed. But do these two coins truly match the value of an ox? This is a disguised form of economic exploitation, and over time, it will cause prices to soar and public resentment to swell, eroding popular support. Such a regime cannot endure.

Historically, Wu and Shu fell to the northern Wei and Jin, and failed currency policies were a key reason!

“Left Chancellor, surely you exaggerate. I suggest the new coins have moderate denominations; with caution and restraint, minting them would only benefit the state, not harm it!”

“Hmph, what counts as restraint? Mint a little today, more tomorrow—the numbers will only grow, and sooner or later threaten the realm. Remember, ‘a thousand-mile dyke collapses from an ant’s nest!’”

“Left Chancellor, you are being alarmist. The Tang dynasty is led by sage rulers and wise ministers, skilled in governance; we would never recklessly mint coins to the people’s detriment.”

“Hmph, the ruler may be wise, but the ministers may not. And who can guarantee future rulers will match His Majesty’s wisdom?”

In the grand hall, Li Shizhi and Li Linfu argued fiercely—one firmly opposed minting large coins, the other insisted moderate minting would solve the shortage without harm.

They stood their ground, debating endlessly.

Upon the dragon throne, Li Longji closed his eyes in silence, weighing the opinions of his left and right chancellors—whose was more reasonable?

The currency shortage grew ever more urgent, and a solution could not be delayed. Minting large-denomination coins seemed viable, but Li Shizhi’s concerns were not unfounded. Was there no way to reconcile both sides?

Seeing he could not refute Li Shizhi, Li Linfu and his faction changed tactics.

“If the Left Chancellor opposes new coinage, does he have a better solution?”

“Indeed—unable to devise a solution himself, yet unwilling to accept others’, will he stand by as the currency shortage worsens and threatens Tang’s stability?”

“Hmph, though unworthy, I have several ways to ease the shortage!”

“Oh, what are your solutions, Left Chancellor? I am eager to hear!”

Hearing Li Shizhi claim he had answers, Li Longji immediately opened his eyes.

“Your Majesty, resolving the currency shortage is like managing floods; blocking is inferior, channeling is superior. I have four measures for channeling:

First, Tang’s gold, silver, and copper mines are scattered, some managed by local offices, some privately mined, with chaotic administration and rampant illegal extraction. Thus, I propose establishing a Mine Supervisory Office under the Ministry of Works, specifically to oversee all national mining affairs, appointing supervisors to various regions to supervise extraction.

After careful calculation, with proper management and increased manpower, annual extraction of gold, silver, and copper nationwide could rise by over thirty percent.”

A thirty percent increase in mineral output would mean a thirty percent rise in coin minting. It may not seem much, but on a national scale, it is significant.

“Excellent, excellent! The Left Chancellor’s proposal is most sound. The management of regional mineral resources indeed needs improvement.” Li Longji nodded with satisfaction at Li Shizhi’s first solution.