Chapter 170
The banknotes that puzzled the merchants were Hyangs brainchild. In fact, Hyang had taken on the entire responsibility for designing the currency.
Why would the Crown Prince?
Why is the Crown Prince?
Seeing Hyangs enthusiasm, everyone from King Sejong to the ministers was puzzled. Usually, Hyang avoided taking on additional responsibilities beyond their work in the research institute and Area 51, slipping away like an eel.
As time passed, King Sejong and the ministers came to understand the reason behind Hyangs involvement.
It makes sense now
Typical of the Crown Prince.
Hyang was harnessing all of Joseons technology to produce the currency.
* * *
We must make the best use of what we have! Thats how progress happens!
Sorting through the technologies for the currency manufacturing process, Hyang made a point that left the eunuch thinking internally,
Why does that comment come up now?
Regardless, Hyang mobilized every technology available in Joseon that could be applied to currency production.
The coins were not just simply pressed out. The molds used to imprint designs on the coins were products of the latest technology.
The steel comprising the molds body was high-quality, difficult to find in neighboring countries.
Once the ironworks in Anju were fully operational, they began producing wrought iron and steel in large quantities.
These materials were used extensively in parts deemed necessary by the court mostly in Hyangs research institute and Area 51.
However, as always, Hyang didnt just passively receive and use these materials.
Each batch of steel from the ironworks was rigorously quality checked, and feedback for improvements was continuously relayed to Anju.
Through this feedback process, the quality of steel produced by the ironworks steadily improved, a testament to the growing skills of the craftsmen there.
Using the supplied steel, the craftsmen created precise molds.
Like 21st-century coins, serrations were added to the edges of the coins, a measure to prevent counterfeiting.
* * *
The coins incorporated these advanced technologies, but the banknotes were a culmination of them.
The printing technology, evolving since the Goryeo Dynasty, had reached an unparalleled level, far surpassing that of Japan and even Ming China.
Hyang maximized the use of this technology.
Each component of a banknote was divided into separate parts, creating individual plates for each. The banknotes were then printed in a manner similar to fabric dyeing.
Its boring to just print the amount, right? While were limited with coins, banknotes offer more flexibility.
For the coins, due to size constraints, only the value was inscribed on the front, and Joseon National Currency () on the back. However, for banknotes, Hyang wanted to do something more.
Struggling to find a clear solution, Hyang had an epiphany while passing by a glass workshop.
Aha!
With a great idea in mind, Hyang immediately sought out Pietro and Raphael.
Do you guys know how to do etching?
Etching?
Pietro and Raphael expressed confusion, prompting Hyang to realize their mistake.
Ah thats English. I mean, using acid and metal to
After hearing Hyangs explanation, Pietro turned to Raphael.
Etching?
Etching.
After a brief exchange, Raphael and Pietro responded to Hyang.
Yes, we know how. Its a technique we often use to incorporate metal decorations in glass crafts.
Hearing their response, Hyang smiled triumphantly.
I need your help with something.
Really?
While Raphael looked apprehensive, Pietros eyes sparkled.
What new challenge is this?
This sounds exciting!
Having found a way to bring the idea to life, Hyang next visited the Royal Painting Bureau, Dohwawon.
Whos the best at painting landscapes?
Ah, theres a painter named An Gyeon[1].
Wow! The same person I read about in textbooks is actually here!
Delighted, Hyang quickly gave an order.
Bring him here, please.
Following Hyangs command, An Gyeon painted several landscapes, adjusted to the size of the banknotes.
Good. Lets use these two.
Choosing two of the submitted paintings, Hyang instructed the painters of Dohwawon.
Replicate these paintings 100 times each.
What? Yes, your command will be followed.
The head of Dohwawon, momentarily puzzled, quickly bowed and complied. The Crown Princes eccentricities were already well-known.
With 200 paintings secured, Hyang directed Pietro and Raphael.
Make copper plates from these.
Yes.
And if there are any failures, let me know immediately, and Ill get more paintings.
Having arranged the crucial elements of the banknote design, Hyang mobilized the craftsmen from the Royal Mint to make the printing plates. Having already verified the skills of Royal Mint craftsmen in making coin plates, Hyang had no particular concerns.
Now, Hyang was ready to tackle the final hurdle.
The issue is counterfeiting
To address the anti-counterfeiting measures, Hyang went straight to King Sejong without much hesitation.
Your Majesty, I have a request regarding the new currency were producing, especially the banknotes, to prevent counterfeiting.
King Sejong showed interest in Hyangs proposal.
Indeed? You always come with clear solutions. What can I do for you?
Could you please make a new seal for us?
Hmm?
King Sejong pondered for a moment before asking Hyang for clarification.
You understand the significance of a royal seal, right?
Thats exactly why Im requesting it, Your Majesty. Who would dare to counterfeit something stamped with Your Majestys seal?
I see your point.
After a brief contemplation, King Sejong made his decision.
I grant your request!
Thus, 100 new seals were created, each bearing the inscription King of Joseon () written by King Sejong himself.
* * *
With the printing plates for the currency ready, the court established a new government agency.
This new agency was named the Mint Bureau and was under the jurisdiction of the Ministry of Taxation.
Hearing the news, officials from the Ministry of Taxation sought out Kim Jeom to express their concerns.
Another task for us? Why is it always our department among the Six Ministries?
Facing his subordinates lamentations, Kim Jeom responded with a gloomy expression.
This is a task we must undertake. If another department handled it, we would be the ones criticized. Sigh Just a bit more hardship for us.
With all preparations complete, the actual printing process began.
Craftsmen dispatched from the Royal Mint to the Mint Bureau worked alongside Ministry of Taxation officials on the printing process, which had a unique aspect.
Every morning, upon arriving at work, the craftsmen and officials would maintain the printing press a hybrid model that Hyang developed, inspired by Gutenbergs printing press. They retrieved the printing plates from the vault and installed them in the press according to the printing schedule. After setting up the plates, the craftsmen and officials would proceed to the last vault.
The officials carefully opened the last vault, cautiously taking out a wooden box containing King Sejongs seals.
Placing the box on the table, the officials and craftsmen deeply bowed to the box before opening it.
Everything is in order!
After checking the seals count and ensuring no issues, the officials carefully handed out one seal at a time to the craftsmen. The craftsmen, receiving the seals with great respect, meticulously placed them into the printing press.
Only after this process was the preparation for printing the banknotes complete.
* * *
On the day the first gold nyang and silver nyang banknotes were successfully printed, Hyang brought a full sheet of the completed notes to King Sejong.
Your Majesty, here are the new banknotes.
Are they finally finished?
Yes, Your Majesty.
Hyang handed over the sheet to the high official, who then presented it to King Sejong. King Sejong unfolded the sheet and marveled at it.
Wow! Truly beautiful! Its almost too fine to be used as currency! The ministers should see this!
We are deeply honored, Your Majesty!
The ministers also expressed their admiration upon seeing the sheet. After examining the banknotes, King Sejong handed the sheet back to Hyang.
Youve made excellent currency. The people will surely appreciate it.
These two sheets are the first completed ones. It seems fitting for Your Majesty to keep them.
Is that so? Then I must frame them and hang them in a place of honor.
King Sejong, looking pleased, examined the sheet of banknotes and noticed a small sentence written at the bottom.
Exchangeable for 9 jeon of silver in physical goods.
Did you intentionally write this in small print?
At King Sejongs question, Hyang bowed and replied,
Yes, Your Majesty.
King Sejong responded with a playful smile,
Therell be a lot of people caught off guard by this.
Those who are greedy deserve a little lesson.
Hyangs face also wore a mischievous grin. The ministers, observing this father and son exchange, inwardly grumbled,
Such a cunning duo!
* * *
The face value is one nyang of silver, but if exchanged for physical goods, theres a 10% deduction.
This was Hyangs suggestion.
Why do we need to do this?
Its a kind of acquisition tax. The primary reason for buying actual silver is for wealth accumulation, so we should tax it. However, tracking every transaction would be too cumbersome, so were imposing the tax from the start.
Hearing Hyangs explanation, King Sejong turned to the ministers.
What do you think?
As soon as King Sejong finished his question, Kim Jeom answered loudly,
Its an excellent plan! It ensures proper tax collection and reduces the need for manpower. Its a strategy that benefits us in two ways!
Thus, the worlds first form of indirect taxation was born.
* * *
The newly circulated currency quickly began to be used nationwide without much resistance.
In urban areas, many had been in favor of currency circulation from the beginning, so it settled in swiftly. In rural and fishing communities, the currency also surprisingly began to take root smoothly.
At first, I wondered why we needed this, but its surprisingly handy!
I know, right!
Initially skeptical, farmers and fishermen soon realized the convenience of the currency and began to use it frequently.
The widespread use of currency among farmers and fishermen was largely influenced by the trading posts. These posts sold essential items like salt and candy without discrimination based on social status, as well as luxury items like spices.
However, these items were available only for those who paid with currency.
Thanks to the trading posts, even those who were initially skeptical about the currency began to adapt quickly.
Furthermore, as currency started circulating, enterprising merchants began to create new products to capitalize on this change. One such invention was the wallet.
* * *
With banknotes bearing the royal seal, people needed a way to handle and store them properly. Noticing this need, merchants crafted wallets with leather exteriors and lined with cotton or silk.
These wallets soon became hit products.
In urban areas, it became fashionable among the young affluent class to carry wallets adorned with a charyeong (traditional Korean pattern) and filled with several silver nyang banknotes, tucked into their sleeve cuffs, strolling around with an air of leisure.
Interestingly, the banknotes, made from the finest quality hanji (traditional Korean paper) known for its durability, survived for hundreds of years. Those that survived, especially the first batch with serial numbers starting with (gap), became highly sought-after items among collectors worldwide.
* * *
The banknotes produced by Joseon also impacted trade among the three Northeast Asian countries. Merchants from the Ming Dynasty and Japan began to favor Joseons banknotes, especially the one nyang silver notes.
Ming China had been using silver as currency much earlier than Joseon. Silver was deeply ingrained in their system, used for tax payments and various transactions.
In this context, Joseons one nyang silver banknotes proved to be incredibly useful. As they were backed by the guarantee of the Joseon government, their value as currency was solid.
Therefore, for long-distance travels or trade, Joseons banknotes made it easier to avoid the hassle and risk of carrying actual silver ingots and the burden of verifying their purity.
The banknotes effectively eliminated the need to carry cumbersome silver and streamlined the process of trade, not just within Joseon but also in its dealings with neighboring nations. The convenience and security offered by these banknotes rapidly enhanced their acceptance and usage across the region, significantly influencing the dynamics of trade in Northeast Asia.
Famous Joseon painter[]
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