Chapter 1033: The Taiping Bank
After the founding of the Great Xuan Empire, its first priority was the minting of a new currency.
At that time, private minting ran rampant, and inferior coins flooded the markets, causing severe chaos in circulation and difficulty in conversion. Thus, a reform of the currency system stabilized livelihoods, improved tax collection, and eradicated fire loss. This fire loss referred to the melting loss that occurred when small nuggets of silver were recast
“Fire loss” referred to the melting loss that occurred when small pieces of silver were recast into sycees. Since taxes were collected in silver, the melting process resulted in inevitable deductions. Over time, this practice degenerated into corruption. Officials began overcharging a surplus for fire loss so that they could keep the difference as personal profit.
By the late Wei Dynasty, fire loss had become excessive. In many counties, a 20% to 50% surcharge was taken as fire loss. In remote areas with fewer taxes, fire loss even exceeded the base levy. Though the court had issued bans, they were ineffective. Over time, it was tacitly accepted.
By replacing silver ingots with minted silver coins, the empire could eliminate fire loss entirely.
Emperor Gaozu had accepted the Holy Xuan’s proposal to replace silver nuggets with minted coins, which were called Taiping coins. He chose not to adopt paper currency directly but allowed deposit vouchers.
The key to coinage lay in materials and anti-counterfeiting. At that time, the Taiping Bank was still a private institution, but its minting techniques were unmatched in the world. Moreover, the cash notes that were intended as deposit slips had already begun to be used in commerce. It was even recognized by the Imperial Court. Thus, the Emperor authorized the Taiping Bank to mint and distribute the new Taiping coins.
Thus, the Taiping Bank evolved from a private bank into a colossal financial institution with minting power. It became responsible for setting monetary policy, supervising domestic and overseas banks, overseeing foreign banks operating in the East, and appointing bank administrators in the branches. Its authority eventually surpassed that of both the Ministry of Revenue and the Duzhi Hall.
At present, the Taiping Bank functioned as a Central Bank, jointly administered by the Daoist Order and the Imperial Court. It had seven managers in total—three from the Daoist Order, two from the Confucian School, one from the nobility, and one from the royal family. Each served a five-year term, but most were reappointed indefinitely, barring extraordinary events.
The three Daoist managers were Zhang Wuliang, Li Changsheng, and Yao Yi.
Their last names alone revealed their backgrounds. They represented the top three families of the Daoist Order—the Zhangs, Lis, and Yaos. Zhang Wuliang and Li Changsheng were both elders of their houses, while Yao Yi was Yao Pei’s father, ranking on par with Zhang Jucheng and Li Wugou in status.
Each of the seven managers had distinct duties. The two Confucian managers served as auditors, while the three Daoist and two imperial managers held true financial power. With a three-to-two ratio, the Daoist faction held absolute dominance. During the tenure of the fifth-generation Grand Master, all three Daoist managers had submitted, so the financial command of the entire empire originated from Jade Capital.