Chapter 144

Chapter 144

During the three-day debate leading to the decision to entrust the establishment of textile factories using automated looms to private guilds, the primary argument of the opposition was straightforward:

“Automated looms aren’t free. If the cost of a loom is higher than expected, will any merchants 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 disappointment.

“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 commercial 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 merchants 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 immediately bowed his head in agreement.

“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.”

Remembering 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 medium. Therefore, we need to maintain its value at an appropriate level.”

“Is that so?”

As Sejong seemed unconvinced, Kim Jeom emphatically assured him.

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.

“Something’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 agreement.

“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 me a few days, please.”

Kim Jeom, after seeking more time 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 memorial 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 memorial.

Just as he completed the draft, news of Hyang’s completion of the automated loom arrived. Witnessing Hyang advocating for the textile factories’ establishment 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 become evident to everyone. By then, we’ll need to exert multiple times 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 meant 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, lamenting 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 acknowledgement, 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 statement from the king, all the senior and junior officials bowed in agreement, 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 immediately 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 some capacity to handle this situation.”

Since the Three Kingdoms period, merchants on the Korean Peninsula had been actively engaged in commerce. The term “Shilla Merchants” emerged, indicating how these merchants traveled back and forth to China for trade. This commercial 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 merchants on the peninsula.

Hyang considered it fortunate that this was the early Joseon period. At this time, 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?”