Chapter Forty-Nine: Gaining Support

In his previous life, by chance, he had the privilege of attending a lecture by a renowned economist. That professor happened to discuss economics in ancient times, mentioning the Direct Hundred Coins of Shu Han. The Comprehensive Mirror for Aid in Government also records, “Military supplies were insufficient, and Bei was greatly worried. Liu Ba said, ‘This is easily solved. Simply mint Direct Hundred Coins, stabilize prices, and have officials conduct official markets.’ Bei followed his advice. Within a few months, the treasury was full.”

The gist was that after Liu Bei took control of Shu, the finances were strained, and military expenditures were tight, causing him much anxiety. At this time, Liu Ba proposed minting the Direct Hundred Coins and using force to stabilize prices. By this method, within a few months, the state treasury was abundant.

Liu Tan pondered and said, “I observe that the current coinage is less than five zhu in weight, worth only one wen, so the so-called Hundred Coins are merely inferior currency. Though this approach may quickly fill the treasury and the court can suppress prices for a while, in the long term, the abundance of money and scarcity of goods will inevitably lead to currency devaluation, and Shu’s economy will collapse! Though I am not learned, I know this policy is essentially purchasing goods worth a hundred coins with one coin—it is naked plunder.”

As he spoke, his gaze never left Zhuge Liang and Li Yan. Their expressions shifted from initial confusion to shock. These words had never been spoken to the emperor before.

“Could it be that His Majesty has a wise counselor hidden at his side?” Zhuge Liang wondered.

Liu Tan smiled inwardly and continued, “If this continues, within ten years, the people of Shu will become impoverished. Though they hold coins, there will be nothing to buy. At that time, the court’s price controls will be useless, and the Direct Hundred Coins will depreciate dramatically. I call this phenomenon ‘inflation.’”

“Inflation?” Li Yan repeated, asking, “Your Majesty, what is inflation?”

Liu Tan replied, “Inflation is the decline in the purchasing power of currency, a sign of economic collapse. Let me use my father-in-law’s family as an example: Suppose his annual salary is fifteen hundred shi, worth ten thousand coins. At current prices, this is enough to support his whole family with some to spare. But ten years later, ten thousand coins might only be worth five hundred shi; then, ten thousand coins would no longer support his household. This is inflation. Imagine the whole country suffering the same—what then?”

“Economy in ruins, the more coins the court mints, the worse the situation becomes, the court loses credibility, Shu grows ever weaker, and the people struggle to survive?” Zhuge Liang said gravely.

Liu Tan nodded. In his previous life, historians speculated why, after the imperial city of Chengdu was breached by Wei, Liu Shan surrendered without resistance. The truth was, by then, Shu had no strength left to resist.

The root cause lay in the collapse of Shu’s economy. Years of northern expeditions forced the government to seize more wealth from the people to fund the army. The populace was so impoverished that uprising was a miracle; to defend against foreign invasion was simply impossible.

Thus, Liu Shan surrendered.

“Indeed. To change this situation, we must first improve the lives of the people, which means slowing the pace of coin minting to stabilize prices. Secondly, we must increase productivity among the common folk. Yet, for your northern expeditions, immense resources and funds are needed. I wonder if there is another way to raise funds? Large-scale coin minting is not a good policy, my esteemed elders!” Liu Tan grasped Zhuge Liang’s hand, tears in his eyes. “I do not wish that after the northern expedition, Shu is already ruined, and I become a monarch of a lost nation, and you two, ministers of a fallen state! My father’s legacy, destroyed in our hands—alas, what sorrow!”

Zhuge Liang gazed at Liu Tan, deeply moved by the emperor’s words. The northern campaign could not be halted, but he did not wish to become a minister of a lost nation. He asked, “Does Your Majesty have any good strategies?”

Liu Tan pointed to his head. “There are unprecedented ideas in my mind—some can be sold abroad, some can improve livelihoods, and some can boost production efficiency. If we manufacture these, the revenue will rival coin minting, yet stabilize prices and uplift the people!”

Zhuge Liang asked in surprise, “Is Your Majesty serious? How soon could this take effect?”

Liu Tan answered, “A year or two at the shortest, three or four years at most.” Then he continued, “If it fails, I will abdicate and let the worthy take my place!”

Zhuge Liang and Li Yan were alarmed, bowing low. “Your Majesty, that is too much!”

After a moment, Zhuge Liang asked again, “What does Your Majesty intend?”

Liu Tan said, “Research and large-scale production! I will personally oversee foreign sales—not only in Shu, but also to Wei and Wu, to acquire wealth from other nations. In this way, I can provide funds for your campaigns, and you, Father, can expand the realm for me. Together, we will forge a legacy for the ages!”

“At that time, you, Father, my father-in-law, and all the court’s scholars will be recorded in history, their names immortalized!”

Liu Tan did not mind painting grand visions. People of the world are motivated by profit. Though his words seemed far-fetched, they inspired and uplifted those who heard them.

Li Yan saw Zhuge Liang deep in thought and said, “Prime Minister, I believe His Majesty’s plan is worth trying. It does not harm the foundation of the state nor obstruct the Prime Minister’s great undertaking. If it succeeds, it will greatly benefit our nation!”

Zhuge Liang shook his feather fan. “Your Majesty, I believe the current laws of our nation should not be halted, including the coinage policy. Let Your Majesty pursue this plan independently. As long as it does not harm the state, nor hinder the late emperor’s legacy, I will support it!”

Zhuge Liang agreed, as Liu Tan had expected.

He rejoiced, “I have another proposal. Please, esteemed elders, help me judge if it is feasible?”

“Your Majesty, please speak!” the two replied.

Liu Tan asked, “Why was the Direct Hundred Coin policy in Shu so readily implemented?” He answered himself, “Because the right to mint coins was state-owned. Thus, from now on, whatever I invent, its rights belong to me. No one else may profit from producing it; only I shall hold the right to benefit.”

“Your Majesty, that may be improper,” Li Yan shook his head. “I believe your policy should primarily benefit the people, not be monopolized by yourself.”

Liu Tan shook his head. “Not just me—every person in the nation can enjoy this policy. If someone has an idea and can produce it for the benefit of others, if this idea is unprecedented, it shall be protected, and its creator may profit. Thus, talent will be honored throughout the land! For example, I have heard that my Father is laboring over the Wooden Ox and Flowing Horse as transport tools. If successful, I will proclaim that these are the Prime Minister’s invention, and anyone else wishing to produce them must have his consent. He may grant rights and share profits. This is what I call intellectual property, and intellectual property ought to be protected!”

“Father, imagine—every time a Flowing Horse is made, people will remember who created it! Is this not a joy?” Liu Tan’s words struck at the heart. Perhaps wealth was not most important to Zhuge Liang, but reputation? That was not something a person of ambition could refuse.

Thus, Zhuge Liang was moved.

Yet, another issue arose. Zhuge Liang asked, “How will these rights be protected?”

Liu Tan replied, “That will need your support, Father!”

Zhuge Liang asked, “Does Your Majesty wish to follow the late emperor’s example and protect them by force?”

“Exactly! The method: I will make a new seal. Whoever bears my seal may produce; those who do not are stealing intellectual property and shall be punished! Then you, Father, may act!”

“This is feasible. Under strict enforcement, none will dare risk it. But I believe, as in the late emperor’s time, Your Majesty should personally handle such matters,” Zhuge Liang said.

Zhuge Liang cherished his reputation greatly. Even when Liu Bei was alive, except for military affairs, he handled executions himself.

Liu Tan pondered briefly. “Very well, I will assign the Imperial Guards to handle these matters. That should suffice!” He continued, “In the days to come, at court, I will announce the Intellectual Property Protection Law and establish an Eastern Bureau of a hundred men. I hope for your support, esteemed elders! Oh yes—attendant!”

“Your Majesty!” Wang Li replied.

Liu Tan said, “Bring in the box I brought into the palace days ago!”

“Yes!”

A moment later, the box filled with gold ingots was carried in. Liu Tan opened it, and Zhuge Liang and Li Yan saw it held gleaming gold ingots, about half a box.

“I am sure you have heard how, days ago, I wanted to eradicate the Shen clan, but they wished to ransom themselves with gold. I considered that the crime of one person should not condemn the whole clan, and since you, Father, need these gold ingots for the northern expedition, I agreed. Today, I present these gold ingots to you, Father, to fund the campaign!”

“This!” Zhuge Liang’s eyes lit up. Half a box of gold ingots was enough to recruit an army of ten thousand. The emperor’s gift today was indeed substantial.

He said, “I will do my utmost to serve Your Majesty!”

“Attendant Wang, have this box delivered to the Prime Minister’s residence…”