Chapter 1322: Issuance of National Bonds

Chapter 587: Picking a FightChapter 1322: Implementing National Bonds

The carriage continued on for no more than a quarter of an hour before the scout, Xiao Chuanzi, returned at full gallop.

"Your Highness, the common folk are discussing matters concerning the national debt."

Xiaogzi respectfully and in detail reported: “This morning, several major merchants from Beijing, headed by the Liu family, spread the word that they wanted to pre-order quotas of national debt purchased by the people, willing to offer a 30% interest premium. However, most people didn't know what national debt was, so those big merchants sent people out to explain it to everyone.”

"I also heard that it's not just the one we saw just now. There are more than ten similar inquiry points set up in various parts of the capital city. Their main purpose is to explain to the common people what national debt is, and these merchants will be buying it."

Xiaocao's reply made Li Chen very satisfied.

He was satisfied with Nangong Shouzhong's execution efficiency.

As expected, everything has started according to plan, and even better than he had imagined.

"Not bad."

Li Chen nodded and asked, "How have the people reacted"

Xiao Waizi answered honestly, "My observation time is not long, but generally speaking, the common people still hold a curious and wait-and-see attitude towards this new thing called national debt. However, because there is the imperial court's reputation as a guarantee, and those big merchants are all using real gold and silver to buy it, quite a few people have been tempted."

"This palace understands, you may retire for now."

After Xiaozi left, the convoy hit the road again.

As long as the national debt plan can be successfully implemented, the funding issues that have been hindering the development of the imperial court will be completely resolved.

Although the imperial court was burdened with massive debts due to national debt later on, Li Chen already had a plan to repay them.

To put it simply, the solution is to raise the pay for merchants and increase the tax rate on their business.

Any national sport, its national treasury's real source absolutely cannot be ruthlessly extracting from the farmers' wool. Farmers simply cannot bear it.

And the feudal system that lasted for thousands of years, with farmers bearing heavy agricultural taxes, is something people today simply cannot fathom.

Of the yield from a mu of land, at least 40% had to be handed over to the imperial court and local officials. Of the remaining 60%, farmers still faced losses from landlords, grain merchants, and various natural disasters. In reality, the portion that farmers actually received may have been less than 20% of the total harvest.

Even so, few imperial courts of the feudal era were truly wealthy.

This is a bloody example and lesson.

The court wants to be wealthy, but it also needs to make the lives of merchants better. Merchants make money all over the world, while the court only makes money from merchants.

Merchants make profits from the people, the government collects taxes from merchants, and then uses these taxes to benefit the people. This simple triangular relationship cycle is the fundamental basis and core logic of the modern tax system.

Li Chen's current plan is to take the entire set of commercial tax and encourage business policies from the future and apply them directly to the Qin Empire.

However, the fact that merchants are of low social standing is undeniable.

To improve the treatment of merchants is nearly impossible, for it will face opposition from all four strata of society: peasants, farmers, artisans, and merchants.

The struggle between classes is far more bloody than dealing with treacherous officials or rebellious princes. If handled poorly, it can lead to the collapse of the nation and widespread upheaval.nji has been operating for so many years, with a vast network within the court. Even now, Li Chen doesn't dare say he fully understands Zhao Xuanji's entire power base; perhaps it's only the tip of th...