BCJ Chapter 127

“Breaking the link between tenant farmers and landowners.”

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

“The Crown Prince has made another bold statement.”

The ministers were already accustomed to Hyang’s announcements always leading to unimaginable developments.

Since this had become routine, the ministers quickly regained their composure and pointed out potential issues.

“You said you would establish a bank to break the ties that bind the tenant farmers. Does this mean using the bank’s funds to pay off all their debts?”

Heo Jo, the Minister of Personnel, led the questioning with a sharp look at Hyang.

“If that’s the case, I oppose the establishment of the bank. While I sympathize with the tenant farmers, mere debt forgiveness is not enough to break their shackles.”

Hyang nodded in agreement at Heo Jo’s point.

“Indeed, it’s naive to think that just forgiving debts can break the cycle of bad practices. My plan is to have the bank, essentially the government, take over the debts owed by tenant farmers to the landowners.”

“The bank becomes the creditor?”

“Yes. The bank will pay off the debts owed by the tenant farmers, who will then owe the bank. This applies to both tenant farmers and ordinary citizens needing urgent funds.”

“Will the farmers and citizens use the bank?”

Kim Jeom, the Minister of Taxation, answered Heo Jo’s question.

“We can make them use it. The simplest way is to set low interest rates.”

“Lower interest rates…”

“The current situation is so bad that people say, ‘If you only have to pay the principal as interest in a year, you might as well call them a Bodhisattva.’ If our bank charges half that rate, its doors will wear out from overuse.”

“Hmm…”

The ministers pondered Kim Jeom’s words. Hyang then spoke up.

“I’m considering a maximum annual interest rate of 30%.”

At Hyang’s mention of ‘30%’, the ministers were shocked.

“30%!”

“Isn’t that too low?”

When the ministers reacted negatively to the 30% interest rate, Hyang pointed out something they were overlooking.

“Don’t forget that the ones in urgent need of loans are the tenant farmers.”

“We know, but?”

Hyang reminded them of a crucial fact they had forgotten.

“Have you forgotten that they lose at least half of their harvest as land rent?”

“Ah…”

“Living on salaries has made us forget…”

The ministers looked incredulous, recalling their past reliance on tenant fees.

‘These nobles, who lived off tenant fees until just the other day!’

The land redistribution and salary system changes made by King Sejong meant that the ministers, who used to live off tenant fees, now had to return their lands and live on salaries. There could have been opposition, but the situation then wasn’t conducive to dissent, especially after the recent purge of senior ministers like Ryu Jeong-hyeon.

Ultimately, the ministers had to relinquish all their lands.

“It’s human nature to forget when you get used to something, but have you already forgotten so much?”

Hyang continued with a bitter tone.

“Therefore, a 50% interest rate is an exorbitant burden.”

Hyang’s statement sparked a counterargument from Heo Jo.

“But 30% is too low an interest rate. If we start lending at such low rates, the tenant farmers and citizens might be happy, but they might also forget the dangers of debt and indulge in irresponsible borrowing.”

“That’s why it’s set at 30%. 50% is too high. Plus, it could lead to competition.”

“Competition?”

“From the landowners’ perspective, a 50% interest rate, though lower than what they’re used to, is still lucrative. This might make them want to compete with the government-established bank.”

“That’s outrageous!”

Heo Jo was outraged, but Hyang countered with a question.

“There’s no law preventing private entities from setting up banks. We could prohibit it, but that might drive illegal financial activities underground. What do you think about this?”

‘That means underground funding could skyrocket!’

“Ugh…”

Heo Jo groaned at Hyang’s point.

Hyang continued with more details.

“Like the Ministry of Taxation’s monopoly stores, setting up banks down to the county level could be beneficial in many ways.”

Hyang then explained the bank’s functions:

1. Loan money to independent and tenant farmers in need.
2. Exchange the grain and cotton brought by the people for currency.

“Working together with the Ministry’s monopoly stores on this second point could double the effectiveness.”

At the mention of ‘collaboration’, Kim Jeom tensed up and asked.

“What do you mean by collaboration?”

“The goods sold at the monopoly stores, especially salt, are essential for the people. If we make it mandatory to buy these monopoly items with currency, the use of currency will definitely become established.”

“That makes sense.”

Kim Jeom nodded at Hyang’s explanation.

“There must be other benefits as well.”

King Sejong interjected during Hyang’s explanation.

“I will listen attentively.”

The ministers focused their attention on Sejong.

As they listened, Sejong shared his thoughts.

“Regarding the newly established tax offices in the reform of the Six Ministries. Make it mandatory to pay taxes in currency at these tax offices. This will accelerate the use of currency.”

“That will indeed be the case.”

“Also, the Crown Prince’s idea of having the bank handle the exchange of grain and currency is excellent. This way, the government can collect the grain lying idle in the people’s granaries, which can be used for military provisions and relief food.”

“That’s absolutely true!”

“We are in awe of Your Majesty’s wisdom!”

“Haha! You flatter me!”

Sejong responded with a pleased laugh to the ministers’ praise.

Meanwhile, Hyang, holding a manuscript for the announcement, flipped through the pages and grumbled to himself.

‘That was supposed to be my line! Ah, well! Rock-paper-scissors!’

Anyway, the bank that Hyang proposed was a very good idea. Since King Sejong also showed a favorable response, the ministers agreed to establish the bank.

“Establishing the bank is important, but there are issues that need to be addressed first.”

“Issues to address first?”

At Hyang’s words, King Sejong and the ministers refocused their attention on him.

“First, we must deal with the problem of usury. Even though establishing the bank is a solution, it will take time to build the building, assign officials, and prepare the funds. However, many people are currently suffering from usury, so we need to implement a solution for them immediately.”

Heo Jo agreed with Hyang’s statement.

“That’s right. Recently, not only in Hanyang but also in various cities, there have been petitions against high-interest debts.”

“Do people in the cities incur debts at high interest rates? How high is the interest?”

“The interest can be ten times the principal.”

“Ten times! And people still borrow at such rates?”

King Sejong asked in surprise, to which Kim Jeom responded.

“Recently, as the number of people engaged in commerce and industry has increased, so has the number borrowing seed money. The amounts borrowed are significant, and many who start businesses fail, so the high interest rates are justified as covering the risk.”

At Kim Jeom’s response, King Sejong murmured with a bitter face.

“As more people engage in commerce and industry, such problems arise.”

‘This is dangerous! The probability might be low due to the current favorable economic conditions, but if mishandled, it could lead back to suppressing commerce and industry as inferior pursuits!’

At King Sejong’s words, Hyang quickly spoke up.

“Your Majesty! As people try new ventures, many will fail! The problem lies with those who rush into commerce and industry without proper preparation!”

King Sejong nodded at Hyang’s point.

“The Crown Prince is right. No matter how small or trivial, proper preparation is essential to avoid failure. So, what should we do?”

“In the banks established in cities, we should set up a business evaluation department to assess those who want to start businesses and decide whether to loan them money.”

“A business evaluation department?”

King Sejong showed interest, and Hyang explained further.

“Yes, Your Majesty. The officials of the Ministry of Taxation, who deal with commerce and industry, should have a good understanding of which industries are thriving and which are highly competitive.

Therefore, selecting officials with this knowledge to work in the business evaluation department is advisable.”

At Hyang’s words, King Sejong was impressed.

“Indeed! They would know what is thriving in those cities and be able to advise those who want to start businesses in competitive industries! What does the Minister of Taxation think?”

Kim Jeom responded hesitantly.

“Well, that would be appropriate.”

“Then…”

As King Sejong was about to add this task to the Ministry of Taxation, Kim Jeom quickly interjected.

“While the Ministry of Taxation indeed deals with the tax affairs of merchants and artisans, the Ministry of Personnel is responsible for matters related to starting and closing businesses! Avoiding excessive competition is crucial for business success, so the Ministry of Personnel is better suited to provide such advice!”

‘I refuse to take on more responsibilities or be easily exploited like a dried persimmon!’

Thanks to his quick thinking, Kim Jeom skillfully passed the ‘hot potato’ of responsibility to the Ministry of Personnel.

King Sejong considered Kim Jeom’s suggestion and nodded.

“Is that so? Well then. Minister of Personnel, what do you think?”

Caught off guard with the sudden responsibility, Heo Jo stuttered in his response.

“Indeed, the matters of starting and closing businesses fall under the Ministry of Personnel.”

“Then, let’s have the Ministry of Personnel primarily appoint the officials for the business evaluation department. However, since starting a business is about gaining wealth, the Ministry of Taxation should also appropriately assign their officials.”

With King Sejong’s decision, Heo Jo and Kim Jeom bowed in agreement.

“We obey Your Majesty’s command!”

* * *

Thus, the proposal for establishing the bank initiated by Hyang was approved.

“Let’s end today’s session here. Go and attend to your duties.”

With King Sejong’s dismissal, the ministers bowed and gradually left the Geunjeongjeon Hall.

“Cough!”

“Cough!”

As they left the hall, Kim Jeom and Heo Jo glanced at each other with a forced cough. Kim Jeom had managed to pass the responsibility to Heo Jo, who was now directly affected. Although Kim Jeom was not entirely off the hook, he was not as directly hit as Heo Jo.

“Ah, Your Excellency, as if we don’t already have enough on our plates…”

As Heo Jo grumbled, Kim Jeom retorted.

“Who are you complaining about manpower shortage to? Just when things are running smoothly, you swoop in and snatch our officials like eating dried persimmons!”

To this, Heo Jo groaned and responded.

“Ugh… I’ve got some fine ginseng at home, I’ll send some your way soon. You’re working so hard, you could use some tonic, couldn’t you?”

Kim Jeom quickly replied.

“Now that you mention it, I’ve recently received about ten softshell turtles. I’ll send them over to your residence. They’re great for strengthening the body – boil them well and enjoy.”

“Cough! Cough!”

“Cough! Cough!”

The two ministers coughed loudly, turning away from each other as they strode down the Six Ministries street.

To an outsider, it might have seemed like they were showing concern for each other, but those familiar with the politics of the Six Ministries would recognize this as a declaration of a subtle but intense rivalry.

Ginseng is known as a powerful medicine, said to revive even the dying, so saying “Eat ginseng” was akin to saying “Work yourself to death.”

Softshell turtle is known for its health benefits, particularly for rejuvenation. However, it’s also famous for its tenacity, symbolizing the saying, “Even if its head is cut off, it won’t let go.” So, Kim Jeom’s offer of sending softshell turtles was essentially a veiled threat of “I won’t go down alone, even in death.”