Chapter 393: Currency War (Part 2)

The old butler led Wang Yuanbao to the study and whispered to him, “The master is in a bad mood; don’t say anything rash.”
“Thank you!”
“Master, Wang Yuanbao has arrived.”
“Come in!”
Wang Yuanbao took a deep breath, stepped quickly into the study, and knelt before Zhang Yun, saying, “Your humble servant, Wang Yuanbao, pays his respects to Prime Minister Zhang.”
Perhaps recalling the generous gift Wang Yuanbao had given, Zhang Yun’s expression softened slightly, and he waved his hand, saying, “Please sit.”
Although Wang Yuanbao kept saying that Zhang Yun was his backer, Zhang Yun himself never admitted it. As a scholar of the Hanlin Academy and a leader in the Tang Dynasty’s literary world, how could he admit having a close relationship with a merchant?
Yet Wang Yuanbao, being such a wealthy merchant, provided the financial resources he needed. Therefore, Zhang Yun allowed his son to interact with the Wang family. He himself rarely met Wang Yuanbao, and letting him enter his study like this was unprecedented.
Wang Yuanbao was extremely excited—Zhang Yun had actually invited him into his study! This was no ordinary honor. He forgot his purpose at once and stammered in praise, “Prime Minister Zhang truly deserves to be called the greatest prime minister of the Tang Dynasty; even at this late hour, you still prioritize state affairs.”
Zhang Yun was clearly reading a book—what did that have to do with state affairs? Wang Yuanbao’s flattery was completely off-target. He wasn’t the right or left prime minister, so how could he be the greatest? Granted, he had the most seniority, but still. If Li Qingan had praised him, he might have taken it kindly. But since it was a greedy merchant doing so, Zhang Yun frowned and regretted letting this man into his study.
“If you have anything urgent to say, go ahead!”
Wang Yuanbao didn’t dare say more and quickly replied, “Reporting to Prime Minister Zhang, Li Qingan sent someone to find me today.”
He then recounted in detail how Hu Yunpei had come to see him, omitting his own profits. He concluded, “He wants to buy large quantities of copper coins in silver coins. We suspect it’s related to the court’s plan to issue new silver coins. With a shortage of copper coins in the market, it’s likely the new silver coins won’t be available soon. The situation is urgent, so I’ve come to report to you right away.”
The more Zhang Yun listened, the more surprised he became. By now, he had set aside the matter of Li Longji waking up. All he could think about was: What exactly does Li Qingan plan to do?

Who is Zhang Yun? Having served as Minister of Revenue for ten years, how could he not understand where Li Qingan’s intentions lay? It was obvious he was trying to teach Li Yu a lesson regarding the seizure of Hexi, even forcing Li Yu to make concessions. Or perhaps he had more far-reaching plans—if Li Qingan truly purchased large amounts of copper coins, Li Yu’s attempt to issue silver coins would likely fail badly. If Li Yu’s new currency plan failed, his plan to recruit 200,000 new soldiers would also collapse. The longer things dragged on, the more disadvantageous his military position would become. Not to mention An Lushan, even the other three princes would rise in rebellion—they wouldn’t allow Li Yu to remain on the throne for too long. Regarding Li Yu’s push for new currency, Zhang Yun’s attitude was conflicted. On one hand, he hoped Li Yu would fail and lose the ability to recruit troops; on the other hand, he was glad to see public resentment arise from the new currency, which would give the other three princes an excuse to hold the king accountable. With these conflicting thoughts, Zhang Yun remained silent. At that moment, Zhang Jie beside him suddenly asked, “You said that man came to see you with Li Qingan’s No. 16 gold medal. Have you met him before?” Wang Yuanbao shook his head. “It’s the first time I’ve seen him, and Xing Si has seen him too. This man is very mysterious. We only know his surname is Hu; we don’t know his name or his identity. Moreover, he doesn’t want to see me again tomorrow.” Zhang Jie pondered for a while before saying to Zhang Yun, “Elder brother, I suspect this man is the leader of the Han-Tang Society. Do you still remember how Li Qingan’s identity was exposed? He has a secret organization in the Central Plains.” “This man isn’t important. Even if he were, you can’t find him now.” Zhang Yun sighed and said, “He won’t show up again. Younger brother, don’t focus on this man. Focus on the matter itself. Li Qingan is about to confront the emperor.” “It’s just about exchanging a million guan of money. Elder brother, you’re overreacting!” Zhang Yun shook his head and said to Wang Yuanbao, “Master Wang, please step back for now.” Wang Yuanbao realized the brothers had confidential matters to discuss and that he, as an outsider, shouldn’t be present. He quickly got up and left. The study became very quiet. Zhang Yun paced slowly around the room with his hands behind his back. He walked to the window and gazed at the dark night outside. After a long while, he said in a low voice, “Actually, I’m not optimistic about the emperor issuing silver coins either. Even without Li Qingan, An Lushan, the King of Shu, and the King of Wu would try to sabotage it. Issuing new currency isn’t something that can be done in a day or two. His move won’t win popular support, and he will fail sooner or later. But that’s not what I’m really worried about.” “Then what are you worried about?” “I’m very worried about Li Qingan’s contingency plans!”

Zhang Yun sighed helplessly and said slowly, “His massive purchase of copper coins this time seems to aim at confronting the Emperor, but that’s not really the case. His true intention isn’t that.”
Zhang Jie was surprised and asked, “So he’s not trying to block the Emperor’s new currency policy?”
“He is indeed trying to block the new currency policy, but if your understanding stops there, you’re underestimating Li Qing’an greatly.”
Zhang Yun sneered and said, “His real goal is to take control of the Tang Dynasty’s currency, using the silver coins from Anxi to eventually replace the Kaiyuan Tongbao, or at least using Anxi silver coins as the main currency with Kaiyuan Tongbao as a supplement. This isn’t something that started today; he’s been doing this for years, advancing step by step. I’ve been observing, and the Emperor has also noticed this trend. That’s why he orchestrated the events in Hexi to block Li Qing’an’s silver coins from spreading eastward. Naturally, Li Qing’an wouldn’t accept the failure of his plans, so a counterattack was inevitable. Coincidentally, the Emperor wanted to issue new silver coins at this time, turning this into an opportunity for Li Qing’an to launch his counterattack. If Li Qing’an succeeds this time, the court will no longer be able to stop Anxi silver coins from entering the Central Plains, and the Tang Dynasty’s currency will eventually fall under Anxi’s control.”
Zhang Jie was shocked. He hurriedly asked, “Since Brother has discovered Li Qing’an’s huge conspiracy, why not stop him? This could be very harmful to us.”
Zhang Yun’s gaze turned back to the window again. He seemed lost in thought, but there was a hint of mockery in his eyes. He turned back and glanced at his brother, saying, “I hope you understand three things. First, don’t draw conclusions lightly without careful consideration. Don’t rashly express opposition or support—that’s why you’ve never been able to become a prime minister. Second, no one can stop Li Qing’an’s silver coin campaign. The reason is simple: the people of the Tang Dynasty like Anxi silver coins. Even you like them, don’t you? If the court’s currency has become worthless, it’s because someone sowed the seeds of trouble; now that person must bear the consequences. Justice is cyclical. Third, I also hope the Emperor’s new currency policy fails. If it doesn’t fail, when will I be able to return?”
“So what does Brother mean…”
“It’s simple. We need to facilitate a partnership between Wang Yuanbao and Li Qing’an, then stay out of it and watch what happens.”
…
Early that morning, the Anxi shops in Chang’an’s East and West Markets closed down simultaneously. All the goods inside were taken away, and the shop owners and employees disappeared. The entire shop became an empty building, with not a single piece of paper left behind.

When the news spread, merchants from both markets flocked there. Many of them had large sums of money stored at Anxi Bank, and they were frantic—what could they turn to for their money if Anxi Bank closed? The entrance of Anxi Bank in the Western Market was packed tightly, with merchants shouting and pushing desperately to get inside. A notice of closure was posted on the door, and someone read aloud, “Due to internal reorganization, all Anxi Banks will be closed for two months. Pending matters will be handled by Wang Baoji Bank. Merchants who have money deposited at Anxi Bank can exchange it at Wang Baoji Bank using their deposit receipts and collateral. Wang Baoji Bank will pay in full with Anxi silver coins or allow them to wait until the bank reopens. We apologize for any inconvenience caused by this sudden decision.” Hearing that Wang Baoji Bank could exchange money, the merchants rushed there immediately. In no time, the bank’s entrance was packed tightly again, filled with shouts. Although Wang Baoji Bank was prepared, the large number of customers still overwhelmed its staff. It’s no wonder—Anxi Bank was the second-largest bank in Chang’an. Its ability to exchange for Anxi silver coins attracted many merchants to deposit money there. In Chang’an alone, the total deposit amount exceeded 400,000 guan. It took Anxi Bank ten days to empty its vaults each night. With the sudden closure, a rush to withdraw money ensued, and thousands of merchants rushed there, nearly bursting the Wang Baoji Banks in both markets. Faced with this overwhelming crowd, the staff and managers of Wang Baoji Bank fought desperately to protect their interests. Manager Liu’s voice became hoarse as he insisted, “Three hundred wen per guan—yes! Not a single wen less.” The large supply of silver coins caused its value to drop to 250 wen per guan compared to copper coins. But Wang Baoji Bank refused to budge—three hundred wen per guan, or nothing at all. With a rustle, 500 silver coins rolled into a bag and were handed over to a customer. The customer rushed to a corner, blew on each coin, listened carefully, and finally smiled in satisfaction before carrying the bag out of the store.

The closure of Anxi Cabinet Shop and the run on Wang Baoji Cabinet Shop were battles of life and death for the merchants in Chang’an, yet for most people there, they were merely trivial matters, far less interesting than stories of love and romance. What truly caused a sensation on that same day was the event at Bifeng Tower in Pingkang Fang, where the famous courtesan Zhu Xuenniang converted to virtue and married Zhou Zhengtao, a talented man from Xiangzhou, drawing all of Chang’an’s attention.

The turmoil surrounding Wang Baoji Cabinet Shop was still ongoing, but the onlookers had gradually dispersed, heading to taverns to hear stories about Zhu Xuenniang. About two hundred steps away from Wang Baoji Cabinet Shop in the Western Market, there was a three-story tavern called Guiqu Lai Xi Tavern. At noon, it was packed with diners, including those who had returned from the run on Wang Baoji Cabinet Shop, celebrating their victory with a drink. The tavern was noisy, with most people discussing Zhu Xuenniang’s conversion to virtue. Her beauty, dancing skills, and delicate figure were almost mythologized, and even whether she had accepted clients was the subject of heated debates among the patrons.

Yet in a quiet room on the third floor, discussions revolved around topics unrelated to Zhu Xuenniang’s conversion. There were three people in the room: Hu Yunpei, Anxi’s intelligence chief in the Central Plains; beside him sat Miao Yi, a vice minister of the Ministry of Rites. Miao Yi was a Han Chinese from Suiye who had returned to the Central Plains during the Kaiyuan era. He was also a member of the Han-Tang Association and one of the few officials in that association who held positions in the imperial court.

Opposite them sat Zheng Shaoyou, an assistant supervisor at the Metallurgy Bureau. Though he was just a minor ninth-rank official responsible for overseeing the casting of gold, silver, copper, and iron, he held some key information regarding Li Yu’s plan to issue new currency. Their body language revealed their attitudes: Hu Yunpei leaned back on the cushions, looking relaxed and in control of the conversation, while Miao Yi acted as a bystander, constantly pouring wine for them to keep the atmosphere amicable. Zheng Shaoyou, on the other hand, appeared tense, fidgeting with his hands and leaning forward intently, listening carefully to every word Hu Yunpei said.

Before meeting Zheng Shaoyou, Hu Yunpei had already sent people to investigate his family background in detail. His mother was seventy years old, he had an elder brother who was bedridden at home, and three young children to support. The whole family relied on Zheng Shaoyou’s meager salary to survive. The court had delayed paying his salary for two years, pushing his family to the brink of despair; they had even sold all their land. Now, his wife relied on doing laundry to make ends meet. Moreover, Zheng Shaoyou had once been caught stealing silver from the treasury, but his superior spared him out of pity, though his annual evaluation was rated as the worst, leaving no hope for promotion. He was also fined three months’ salary. With this information, Hu Yunpei concluded that Zheng Shaoyou was someone easy to persuade, but not someone to whom too many benefits should be given, as that might scare him.

“General Li treats his subordinates well and trusts them completely. Zheng Shucheng must also be aware of the Battle of Shibao City! The general still provides support to the families of all the soldiers who died in that battle, not one of them is left out. Those who came to Anxi are given land and tax exemptions, while those who prefer to stay in their hometowns receive regular payments in money and grain. That’s why most of his subordinates are willing to die for him. I don’t want to say more. Let me put it this way: if Zheng Shucheng is willing to serve the general, we will pay him a salary equivalent to that of a fourth-rank official in Anxi every month, plus an additional three thousand silver coins. What do you think?”

Zheng Shaoyou could hardly contain his joy. How could he refuse? His family was destitute, with everyone in need of food. Now, he would receive three thousand silver coins—equivalent to 3,900 guan in cash! Plus a regular monthly salary. His hard times were finally over. His heart was filled with gratitude and a desire to serve. Not to mention serving Li Qingan, even if he were to die, he would be willing.

“Please tell me what needs to be done, Mr. Hu.”

Seeing that he had surrendered, Hu Yunpei smiled slightly and said, “Actually, our request is quite simple. Every three days, you need to prepare a report on the court’s coin-making efforts. Someone will come to see you, and in case of emergencies, you must report them promptly.”

“There’s no problem. I will definitely do as you say!”

Perhaps feeling a bit embarrassed that he had gotten the money so easily, Zheng Shaoyou added, “Actually, I have a very good relationship with Zhang Shucheng from the Coin-Making Bureau. If Mr. Hu needs it, I can help make the connection.”

As soon as the words left his mouth, Zheng Shaoyou regretted it—this would ruin his chances. He immediately became uneasy, but Hu Yunpei seemed not to hear his suggestion. He was staring at the crowd crowding around Wang Baoji’s shop in the distance and turned to say with a faint smile, “I want to know now—how much of the new silver coins has been minted by the court? When are they planned to be released?”
Zheng Shaoyou perked up. He knew something about this. He quickly replied, “Twenty thousand guan of new silver coins have already been minted. At a ratio of one to fifty, that’s one million guan in total. If you need them, I can get a couple for you.”
“Good! Then when will they be released?”
Zheng Shaoyou thought for a moment and said, “I don’t know the exact release date, but I’ve been informed that in five days, on the eighth day of the eleventh month, the first batch of twenty thousand silver coins will be officially released. We need to be there for the final inspection.”
“Five days!”
Hu Yunpei smiled triumphantly—this matched exactly with the information he had obtained from other sources.
……
In the imperial study of the Zichen Hall in the Daming Palace, Li Yu was listening to a report from Wu Diqi, the minister in charge of finance. The midday sun streamed into the room, making it especially warm. As Li Yu listened to the report, he grew somewhat distracted.
His mood had been complex these past two days—mixed with joy and worry. The joy came from his father no longer interfering in his government affairs. After the incident in Hexi, they had had a fierce argument because he hadn’t followed his father’s plans. As a result, his father stopped meddling in court affairs and handed over the power to recruit troops to him, as if completely giving up control. This made Li Yu breathe a deep sigh of relief.
But just as he had gotten over his father’s issue, his grandfather, the late Emperor Li Longji, had awakened. Although he was not in good condition and still unable to speak, the fact that he had woken up weighed heavily on Li Yu’s heart, as if a lead weight had been added.
Although his position as crown prince had been determined by his grandfather, his ascension to the throne had not been approved by him. Without an abdication decree from his grandfather, nor consent from the imperial family, and not even a statement from Yang Guifei, who was considered the late emperor’s empress, he had simply been enthroned by the ministers. Legally, this was insufficient, and this was the main reason why the Kings of Shu, Wu, and Jing refused to recognize him. They declared to the people that the emperor had not abdicated—how could this young man ascend to the throne?
In fact, the three kings’ accusations had some merit. According to proper procedure, he should have served as regent first, waiting until the late emperor truly passed away before ascending to the throne. But since his grandfather suffered from a mysterious illness, if he didn’t wake up for twenty years, would he have to remain regent for another twenty?

It was out of this consideration that he agreed to the ministers’ request and officially ascended the throne as emperor. His only hope was that his grandfather would never wake up or die immediately. His father had also hinted to him not long ago that half a year had passed, and it was time for his grandfather to pass away. Just as Li Yu hesitated, his grandfather suddenly woke up, resulting in two emperors in the Tang Dynasty—a situation that would be extremely awkward.

“Your Majesty!”

Pei Min, the vice minister of the Ministry of Revenue, was about to speak when he noticed Li Yu was distracted, so he gently reminded him. Li Yu quickly regained his focus and smiled apologetically, saying, “Please go ahead, Minister Pei.”

In the imperial study, in addition to Wu Di Qi and Pei Min, there were also Yang Guozhong, the right chancellor; Yang Shenyu, the supervisor of the Imperial Works; and Li Bi, the grand scholar of the Hanlin Academy. They were finalizing the specific measures for issuing new silver coins.

Since Li Yu decided to issue new silver coins, he had faced opposition from many high-ranking officials, especially Pei Min, the vice minister of the Ministry of Revenue, whose opposition was the strongest. He submitted three memorials to Li Yu, arguing that this was a classic case of killing the goose that lays the golden eggs. Although it might bring some immediate financial benefits, such gains would come at the expense of exploiting the people, severely damaging the credibility of the imperial currency system, causing prices to soar and leading to widespread hardship. In agreement with him, Li Yan, the minister of justice, pointed out that the oversupply of silver coins two years earlier had doubled the price of rice, severely affecting many middle- and lower-class households. Issuing inferior silver coins would only make matters worse and could even trigger uprisings.

Under the persistent opposition of the ministers, Li Yu was forced to make concessions. First, he reduced the amount to be issued from 300,000 guan to 200,000 guan, and the exchange rate was lowered from 1 to 50 to 1 to 30. He also increased the silver content in the second batch of coins to 30% silver, 50% copper, and 20% lead, bringing it closer to the normal 10% silver ratio. After Li Yu made these concessions, the council finally approved the plan to issue the new silver coins.

The issuance date had already been set: November 8th, five days later, when the new silver coins would be officially released. This date was kept strictly secret, known only to a very few people, to prevent leaks that could cause chaos in the market.

But now, a new problem arose. Pei Min opposed issuing the first batch of coins first, as those 20,000 guan were made with a ratio of 1 part silver to 6 parts copper and 3 parts lead, resulting in too low a silver content per coin. If the ratio had been 1 to 10, it might have still matched the normal silver coin ratio. However, Li Yu insisted on sticking to the compromised ratio of 1 to 30 and refused to make further concessions.

“Your Majesty, I am very worried that once the new coins have a negative impact on the people’s minds, no one will trust the second batch of new coins when it is issued. Your Majesty, you must not be careless!” At this moment, Di Wuqi said, “Your Majesty, my view differs slightly from that of Minister Pei. After my investigation, it turns out that the people disapprove of both new and old coins, as the poor quality silver coins in the past two years have caused great harm to them. Unless we follow the example of Anxi and issue an adequate amount of silver coins—which we cannot do—or issue large coins worth fifty ordinary coins, I think this is still not as good as issuing silver coins. After the second batch of silver coins is issued, people will gradually realize that their silver content is quite high, and thus their doubts will fade over time. So, it doesn’t matter whether they are issued first or later.” Li Yu thought for a while and then asked Yang Guozhong, “What about Prime Minister Yang’s opinion?” “I support Di Wuqi’s view,” he replied. Yang Guozhong was not very enthusiastic about issuing silver coins. It used to be Zhang Yun’s domain, and although Zhang Yun was no longer in charge, he was focused entirely on the official reorganization starting next month. Today, Li Yu summoned him to discuss the issuance of silver coins, and he was only doing so reluctantly. Yang Guozhong’s support for Di Wuqi had nothing to do with the silver coins themselves but rather stemmed from his dislike for Pei Min. Pei Min was Li Qing’an’s brother-in-law and a member of the Eastern Palace faction in the past. Their relationship had been strained, and Yang Guozhong still remembered how Pei Min had accused him before Li Longji of keeping a concubine in secret, resulting in him being severely reprimanded by Li Longji and his beloved concubine being forced to be given away. That incident left a lasting grudge in his heart, so he would firmly support anything Pei Min opposed. “I also believe that it doesn’t matter whether the coins are new or old; time is needed for the people to gradually adapt. Minister Pei keeps blocking Your Majesty’s plans to raise funds—I think there must be some hidden motive!” After saying this, he glanced sideways at Pei Min with a cold smile in his eyes. It was necessary for him to remind the emperor that Pei Min was Li Qing’an’s brother-in-law. “Yang Guozhong, stop spreading slander. The emperor has just ascended the throne and is hoped for by all the people. I am acting to protect the emperor’s reputation—what hidden motive could there be?” Pei Min bowed deeply to Li Yu. “Your Majesty, I am utterly loyal and dedicated to the country. Please understand my sincerity.” “Minister Pei, you have misunderstood. Prime Minister Yang has no other intentions. Please don’t take it to heart. I know you are loyal, and I have no intention of blaming you.” Although he said this, Li Yu suddenly remembered that Pei Min was Li Qing’an’s brother-in-law, and he felt uneasy. After pondering for a moment, he asked Li Mi, “What’s your opinion, sir?”

Li Mi actually supported Pei Min’s opinion, but there was one thing Pei Min didn’t know: Li Longji had already recovered. If Li Longji regained his health while Li Yu remained weak, Li Yu would be in an extremely disadvantaged position. Li Longji might not allow him to raise more troops. Therefore, it was urgent to recruit an army loyal to him before Li Longji fully recovered, and this required money. By the time the second batch of silver coins with higher silver content were minted, it would be at least another month.

For this reason, Li Mi advocated issuing silver coins immediately, using them to forcibly exchange for copper coins to recruit soldiers, and then recalling the first batch of silver coins once the second batch was ready, which would ease the consequences somewhat.

Li Mi nodded. “It will take too long to mint the second batch of silver coins, and complications might arise. I agree with Fifth Lieutenant’s suggestion to issue the new silver coins on schedule.”

Li Mi’s attitude undoubtedly reassured Li Yu. Seeing that Pei Min still wanted to speak, he waved his hand to interrupt him and said in a tone that left no room for objection, “Regarding the issuance of silver coins, I have repeatedly sought everyone’s opinions and made the necessary concessions. There are only five days left now. I don’t want to make any further changes. I won’t accept any other plans. The decision is final: the new silver coins will be issued as planned.”

After saying this, he stared sternly at Pei Min, waiting for his response. If Pei Min dared to voice any opposition, he would be dismissed immediately. Pei Min sighed inwardly. He actually had another plan—borrowing money from the large money houses urgently and repaying it after the second batch of silver coins was minted. In any case, the first batch of silver coins must not be issued; it should be remelted. Unfortunately, he no longer had the chance to propose it.

“Your servant obeys!”