[Lightscreen]
[At the beginning of the Yi Province campaign, Liu Bei lacked confidence, so he made a grand promise:
"If Yi Province is taken, the wealth of its treasury, I, Liu Bei, will not take a single coin."
Although the conquest of Yi Province did not turn into the grueling struggle he had imagined, this promise was ultimately fulfilled.
After securing Yi Province, Liu Bei's treatment of Liu Zhang was as follows: "All his wealth was returned to him, along with his former seal and ribbon of the General Who Inspires Might."
The treasury's wealth was entirely distributed among the soldiers, and not a single coin of Liu Jiyu's personal fortune was taken. The result was that the treasury became so poor that if a rat visited, it would have to leave a donation.]
Pang Tong's first reaction was to suck in a sharp breath.
Winning a war yet not only failing to profit, but actually ending up at a loss, and beyond that still needing to sustain the provisions and equipment of his lord's thirty thousand troops.
And within just a year, there would be another prolonged and exhausting campaign for Hanzhong.
Under such circumstances… they had no money?
Liu Bei's smile turned slightly awkward. Kongming's expression remained calm, though as he watched the Light Screen, even he could not entirely conceal a trace of concern.
[Lightscreen]
[At this point, Liu Ba stepped forward.
Years earlier, Liu Biao had repeatedly tried to recruit Liu Ba, a native of Lingling, but Liu Ba's ego was high; he "read but did not reply," acting as if he hadn't seen the summons.
After Liu Biao's death, Jing Province quickly split. One faction followed Liu Cong and welcomed the Cao army, while another followed Liu Bei south to resist Cao Cao.
Liu Ba chose neither and instead went directly to Cao Cao to recommend himself.]
"Liu Zichu is well known for his talent," Liu Bei said, his face filled with appreciation.
"I had heard of him back in Jing Province. His grandfather once served as Administrator of Cangwu, and his father as Administrator of Jiangxia."
"Brother Jingsheng often lamented to me that he recognized Liu Ba's talent but could not employ him. A true regret."
"Then my lord may rest at ease," Pang Tong said. "From the Light Screen's words, Liu Zichu ultimately entered your service."
[Lightscreen]
[Perhaps it was a test, or perhaps Liu Ba spoke too big.
Cao Cao gave him a task to prove himself: to persuade the commanderies of Changsha, Lingling, and Guiyang to surrender.
Naturally, this was impossible. Liu Ba ended up wandering into Jiaozhou, but later fell out with Shi Xie. Traveling through Zangke, he entered Yi Province and served under Liu Zhang.
Because he repeatedly advised Liu Zhang not to receive Liu Bei, he fell out of favor and simply shut his doors, withdrawing from public life entirely.
When Liu Bei besieged Chengdu, he issued an order: "Anyone who harms Liu Ba shall have three clans exterminated." In the end, Liu Zhang surrendered, and Liu Bei obtained Liu Ba.]
"Liu Zichu did not have an easy time in Yi Province."
Jian Yong smiled. "I once drank with him there. His words were full of bitterness."
"He claimed he wanted to follow the mandate of heaven and the people, but he couldn't return to Cao Cao and felt he had no face to see you, my Lord."
"Shi Xie was discourteous, Liu Zhang was weak. He could only waste his years in frustration."
Jian Yong glanced again at the Light Screen and shook his head with a chuckle.
"And in the end, he still came to serve our lord. All those years, spent in vain."
The others could not help but sigh as well. After wandering in a great circle, he had returned to the starting point. Had he joined earlier, he would surely have achieved merit long ago.
[Lightscreen]
[The moment Liu Ba took office, he was faced with an utterly empty treasury.
Confronted with this situation, Liu Ba issued the policy of the Zhi Bai Qian "Direct Hundred Coin."
'Simply cast coins worth a hundred, equalize the prices of goods, and appoint officials to manage the public markets.'
In ancient times, limited by understanding, there wasn't much discussion about Liu Ba.
But in the modern era, a debate has raged over whether the 'Zhi Bai Qian' was a super-advanced, beneficial policy or a predatory one that exploited the common people.]
Liu Bei immediately recalled that when those later descendants had spoken at his shrine, their words about the Yiling campaign had carried a hint of reproach.
Could this truly have been a harmful policy?
Almost instinctively, Liu Bei's gaze shifted toward Mi Zhu. When it came to wealth and commerce, Zizhong was undoubtedly the most knowledgeable present.
Mi Zhu could only brace himself and speak.
"My lord, although Dong Zhuo once minted small, debased coins, that was an act of competing with the people for profit."
"This Direct Hundred Coin, however, includes official markets. That suggests it may be workable…"
Liu Bei could hear the uncertainty in his voice, and could only offer a reassuring smile before turning back to the Light Screen.
[Lightscreen]
[One school of thought simply treats Han currency as a precious metal currency.
This argument often uses 'Horseshoe Gold' as evidence, suggesting the Han was on a gold standard.
They argue that if you have a coin that isn't pure copper yet label it with a hundredfold value, you are looting the people and disrupting the market!
This is often accompanied by the classic Gresham's Law: 'Bad money drives out good.'
But frankly, the gold standard was established because two hundred years ago, the 'Empire on which the sun never sets' monopolized global gold production.
Its maintenance relied on that empire's invincible fleet and world-leading factories.
None of these existed in ancient China. Scholarly understanding now refers to pre-Ming China as having a 'Silver-Copper sub-standard.']
Mi Zhu watched with intense focus, even mentally simulating certain scenarios, and felt deep admiration.
The Light Screen's explanations were remarkably concise. One only needed to compare them with practical experience in trade to grasp their meaning.
So when Liu Bei glanced at him again, Mi Zhu spoke first.
Bad money is like a worn-out Five-Baht coin from the start of the dynasty still circulating in the market. Good money is like the newly minted Five-Baht coins from last year. Their wear and weight differ, but they buy the same amount of goods."
Liu Bei nodded in understanding.
"In that case, the people would hoard the new coins and spend the old ones, and the marketplace would be filled with inferior currency."
"As for this concept of standard…" Mi Zhu hesitated. "I will need to study it further."
"But this so-called British Empire which the sun never sets," Zhang Fei snorted, "what arrogance in that name."
Kongming, however, remained composed.
"We cannot imagine the power of the world eighteen hundred years from now. Likewise, we cannot imagine an empire sixteen hundred years hence."
"If it relies upon an invincible navy, and later generations speak also of aircraft carriers, then ships that traverse the seas must be of utmost importance."
The others looked at each other: Great, but we have to beat Cao Cao first before worrying about that.
[Lightscreen]
[Before the Ming, there were only three primary standards of currency: grain, cloth, and copper. Shu Han likely also included Shu brocade, that is, silk.
Liu Ba's policy was not without precedent. Under Liu Bang there were elm-seed coins, under Liu Che there were red-edged Five Zhu and the three grades of white gold.
Under Wang Mang there were Daquan Fifty, Qi Dao Five Hundred, and gold-inlaid knives. From the perspective of precious metal currency, these were all fiduciary currencies.
Applying Gresham's Law to judge Shu policy is using a modern blade to judge ancient officials, because it ignores two conditions:
First, there must be sufficient currency in circulation. Second, both good and bad money must be legal tender.
After the deaths of Shu Han's Four Chancellors, even worse-quality Direct Hundred Coins were minted. These inferior coins drove Liu Bei's earlier Direct Hundred Coins out of circulation. That is the true demonstration of Gresham's Law.
The most important part of Liu Ba's policy lies in the latter half: Shu Han's Direct Hundred Coins were backed by official markets.
Through these markets, the coins were directly linked to state-controlled salt and iron, thereby ensuring their value.
Thus, judged pragmatically, the Direct Hundred Coin was neither a good policy nor a bad one.
If evaluated by its results: this economic policy did not lead to widespread suffering or public resentment. Instead, under the Chancellor's administration, fields were opened, granaries were filled, tools were sharp, and reserves abundant.
This was the most suitable economic policy crafted by the economic genius Liu Ba for a copper-deficient Shu Han.]
Liu Bei let out a long breath of relief.
He had not understood much of the theory, but he understood the conclusion.
As long as it was not a harmful policy, that was enough.
Then he praised sincerely, "Zichu's talent bridges past and present. Even later generations commend him. Truly a great talent."
Kongming gently waved his feather fan. It was he who had recommended Liu Ba to Liu Bei. Though Liu Ba had not yet been fully utilized, hearing him praised by the Light Screen still brought him quiet satisfaction.
Mi Zhu, however, stood there in a daze.
Then suddenly he rose and stood behind Ma Liang, staring intently at the copied text.
He read it again and again, going over every line, even reading aloud at times. Sometimes he laughed, sometimes he shook his head, until at last he sighed deeply.
"So this… is what money truly is."
[Lightscreen]
[With Shu Han's official markets guaranteeing its value, the Direct Hundred Coin circulated across the Three Kingdoms, even sparking a small-scale currency war.]