During the three-day debate leading to the decision to entrust the establishnt of textile factories using automated looms to private guilds, the primary argunt of the opposition was straightforward:
“Automated looms aren’t free. If the cost of a loom is higher than expected, will any rchants step forward?”
Acknowledging this valid point, Sejong asked Hyang about the cost.
“How much does it cost to make one loom?”
“Thirty silver taels,” Hyang responded.
Hearing this, Sejong couldn’t hide his disappointnt.
“Thirty taels of silver is equivalent to ten bushels of white rice; that’s expensive. Perhaps the state should take the lead…”
As Sejong considered nationalizing the initiative due to the cost, Hyang stepped in.
“Yes, it’s quite expensive. And for comrcial profit, one would need at least ten looms. But buying in bulk could reduce the cost per unit.”
Encouraged by Hyang’s point about reducing costs, Sejong pointed out a problem.
“Even if the cost is halved, it’s still high. Besides the looms, there are expenses for building structures, hiring staff, acquiring animals or waterwheels for power. Would anyone be willing to invest that much without proven results?”
Responding to Sejong’s doubts, Hyang confidently said, “There are rchants who will!”
“There are?”
“Yes, Your Majesty. Many guilds have survived from previous generations. They are fully capable!”
Sejong turned to Minister of Taxation Kim Jeom, seeking confirmation. Kim Jeom imdiately bowed his head in agreent.
“The Crown Prince is correct, Your Majesty.”
“Is there evidence?”
Kim Jeom replied promptly.
“A third of the goods traded with Ming through Shandong are glassware and ceramics from the royal workshops. The rest are from private guilds. This ratio has been maintained since the introduction of glassware.”
“Maintained? So the sales of private guilds are increasing?”
“Yes, Your Majesty. Trade with Japan through Wae-Gwan has also surged.”
“I’m aware. That’s why I considered building markets on Daenae-shi’s lands.”
“Yes, Your Majesty.”
Rembering his previous reports, Sejong asked Kim Jeom.
“From what I know, the Japanese pay in silver. So, guilds trading with Japan must have substantial silver reserves?”
“Indeed, Your Majesty. Not just those trading with Japan, but also those trading with Ming have significant silver reserves. That’s why I fully support the Crown Prince’s proposal. We need to absorb as much silver from the guilds as possible.”
Sejong raised a question.
“Why is that?”
“In Joseon, Ming, and Japan, silver is used as a trade dium. Therefore, we need to maintain its value at an appropriate level.”
“Is that so?”
As Sejong seed unconvinced, Kim Jeom emphatically assured him.
“Yes, Your Majesty!”
Listening to Sejong and Kim Jeom’s conversation, Hyang internally celebrated.
‘Yes! Old man Kim Jeom, nice! All those talks about price stabilization paid off!’
* * *
While Hyang’s consistent education on market trends played a role, Kim Jeom and the officials of the Ministry of Taxation were increasingly uneasy due to the growing inflation and fluctuating prices in the market. This unease stemd from the trends reported by the monopolies and customs, as well as the size of taxes collected annually.
The Ministry of Taxation officials, trained by Hyang, diligently scrutinized the guilds for tax evasion. Through taxes, they closely estimated the actual scale of the guilds’ transactions.
“The scale of the guilds’ transactions is growing.”
“Not only the scale, but their profits are also increasing.”
While reporting on the guilds, the officials noted a peculiar fact:
“It seems the guilds possess a significant amount of silver. Previously, they would have paid in kind with copper or sulfur, but now they’re mostly paying in silver.”
“In silver?”
Piqued by this, Kim Jeom had the officials bring out the records.
“The list of customs and taxes paid by the guilds. As you can see, during the initial establishnt of the trade post in Shandong, many paid in kind, but now most are paying in silver.”
“Hmm…”
Kim Jeom examined the records thoughtfully.
Initially, most of the goods imported from Ming through Shandong were luxury items, and the early Joseon guilds paid a substantial part of the customs in kind. But now, most guilds were paying in silver.
“Hmm…”
As Kim Jeom pondered over the reports, other officials brought in more docunts.
“What’s this?”
“These are the accounts from the monopolies.”
“And?”
“The amount of silver received as paynt has been steadily increasing.”
“Increasing silver ans…”
Kim Jeom, pausing, then ordered another official.
“Bring the records of the silver paid out by the governnt.”
“Yes, sir.”
After comparing the governnt’s expenses in silver to the amount circulating in the market, Kim Jeom realized there was significantly more silver in circulation than what the governnt had distributed.
Realizing the increase in silver circulation, Kim Jeom issued another order.
“Bring the records of the market price of a bushel of white rice!”
“Yes, sir!”
Reviewing the price trends of rice, a staple food in Joseon, Kim Jeom’s expression turned graver.
“Definitely…”
When the economic reforms began, a bushel of rice was traded for one tael of silver or less. Though prices were higher during the lean season, they remained below one tael during the harvest season.
However, rice prices had been gradually increasing since last year. The rise wasn’t drastic, but a month-by-month comparison revealed a steady increase.
“Sothing’s not right…”
Feeling the crisis, Kim Jeom sought out Lim Soonwook.
“Recently, the asking prices for goods have been slowly rising.”
Rushing in from coordinating the new administration, Lim Soonwook nodded in agreent.
“This could be problematic. Mishandled, it might lead to enormous profits for those holding physical assets like grain or land.”
“What’s your solution?”
“Give a few days, please.”
Kim Jeom, after seeking more ti to ponder, revisited Lim Soonwook three days later. Lim Soonwook’s conclusion was consistent: the court must absorb as much silver circulating in the market as possible and distribute currency widely. Additionally, he suggested that the newly planned mint should not only issue loans but also accumulate wealth.
Kim Jeom, deeply contemplative upon hearing this, eventually decided to draft a morial to the king. The task was complex, requiring accurate depiction of cause and effect, so Kim Jeom spent days drafting the initial version of the morial.
Just as he completed the draft, news of Hyang’s completion of the automated loom arrived. Witnessing Hyang advocating for the textile factories’ establishnt by private guilds at the demonstration of the loom, Kim Jeom felt a thrilling opportunity.
‘This is it! It’s a chance to absorb the silver in private hands and also reduce my workload! Brilliant!’
* * *
Hearing Kim Jeom’s explanation, King Sejong asked with a serious expression, “Is it really that serious?”
Kim Jeom replied, “It’s not apparent yet, but it will soon beco evident to everyone. By then, we’ll need to exert multiple tis the effort to address it.”
King Sejong sighed deeply, expressing regret about the influx of wealth into Joseon, which he initially thought was beneficial.
Kim Jeom assured Sejong that the influx was not a mistake, as it indeed improved the people’s livelihood. However, when Jo Mal-Saeng, listening to the conversation, expressed confusion about why abundance could be harmful, Hyang stepped in to explain.
He likened the situation to feeding an amount of food ant for adults to a child or presenting a feast to a starving person – essentially, Joseon was not ready to handle such a wealth influx.
Understanding the analogy, Jo Mal-Saeng nodded, and King Sejong sighed again, lanting the unexpected rapid growth. Hyang reassured him that facing such issues was inevitable.
King Sejong, realizing the gravity of the situation, decided to accept the proposal by Hyang and Kim Jeom. He ordered the summoning of guilds for a bidding process, taking full responsibility for the decision as a royal decree.
Upon King Sejong’s firm declaration that he would not entertain any opposition, all the ministers bowed in acknowledgent, accepting the command.
The historian, recording all these events, added, “All these actions are undertaken under my authority, and I shall bear all the responsibility.”
With such a decisive statent from the king, all the senior and junior officials bowed in agreent, not daring to object.
The historian reflected on how, just a few years ago, the nation worried about a lack of funds, but now, the concern had shifted to the excess of wealth circulating in the market. Yet, the historian himself had never seen such wealth.
Following King Sejong’s decision, the ministers imdiately began preparations.
* * *
Returning to his room in the Eastern Palace after King Sejong’s decision, Hyang looked at the piled-up reports on his desk and muttered to himself, “It’s fortunate that we still have so capacity to handle this situation.”
Since the Three Kingdoms period, rchants on the Korean Peninsula had been actively engaged in comrce. The term “Shilla rchants” erged, indicating how these rchants traveled back and forth to China for trade. This comrcial activity continued robustly during the Goryeo period.
However, the invasion by the Yuan Empire, the rise of powerful aristocratic families causing economic turmoil, and the worsening economy due to Japanese pirate raids had gradually weakened the rchants on the peninsula.
Hyang considered it fortunate that this was the early Joseon period. At this ti, not just a few, but many large and small guilds still existed.
After reflecting on the situation, Hyang sighed, pondering, “Ho~ If this were the middle of the Joseon period, it would be dreadful to even think about. Would it have been better if it were the later Joseon period?”
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