King of Commerce, Yeonsan-gun Ch.31

 

Summer in Seoul

While Park Hee-sun was struggling with the ironworkers in Chungju, Seoul faced a shortage of iron due to the highly efficient division of labor, which had rapidly depleted the reserves.

The city had to stop purchasing more iron, as the prices were soaring to unmanageable levels.

“Even if the commissioners succeed in securing more iron, it’ll be autumn before it arrives. There’s no rush; we’re not aiming to start an industrial revolution in Joseon during my reign,” thought King Kyung-sik.

The truly important weapon, the musket, was not yet being mass-produced. To standardize and mass-produce musket parts required tools like lathes and drills, which they did not possess.

Despite their efforts to divide the production process, only a few hundred muskets were produced over three months, a meager outcome compared to their successes in other areas.


Innovations in Production

The division of labor also led to significant advancements in other aspects.

“Look! It’s working!”

“The bellows are moving!”

“Finally! What we learned during the Seongjong era is now being realized under our current king’s reign!”

Choi Bu’s long-cherished dream of creating a waterwheel-powered bellows for the furnace was coming true. Choi, who had excelled at building waterwheels and wished to construct many more given the time and budget, was now seeing his dream realized. The waterwheel-powered bellows were completed, just as the raw iron supply dwindled.

Feeling sympathy for the ironworkers who had endured the heat of the furnace throughout the summer, King Kyung-sik decided to give them a break now that the iron was nearly exhausted.

Instead of connecting the waterwheel-powered bellows to the furnace, they were attached to a box filled with ice retrieved from the ice storage, creating a rudimentary cooling system.

The craftsmen greatly appreciated the cool air in their rest area.

“Oh my! This feels like heaven!”

“It’s better here than being a high-ranking official!”

“Move over! Let us enjoy the breeze too!”

Indeed, it was no wonder they felt superior to the high officials, who were sweating profusely in their offices without such comforts.


Cooling and Comfort in the Palace

“The cooling system I created is highly appreciated by the craftsmen. I would like to extend this to the officials as well,” Kyung-sik proposed. “Since we need a lot of ice to operate these coolers, how about we expand the ice storage this autumn?”

“Your Majesty’s suggestion is very sound. The waterwheel that Choi Bu built would be useful for this purpose. Perhaps we could also expand the Mapo temporary palace and install cooling systems connected to waterwheels there,” the officials suggested, eager to escape the heat.

The idea of cooling down in summer prompted the officials to propose expanding the palace, showing just how enticing comfort could be.


The Dilemma of the Refugees

As the reorganization of the Military Training Command neared its end, a pressing issue was the employment of the refugees. These people had been the first to be recruited for labor-intensive projects, but once a project was completed, they returned to idleness.

Last year, at least, they had been fed under the guise of being soldiers, but now even that was no longer the case. Just before coming to Mapo, Kyung-sik had decreed, “Let’s disband the infantry, who lack combat effectiveness, and focus on paying for labor with money,” effectively leaving them as mere jobless refugees.

To sustain them, they needed stable jobs beyond large-scale projects. Kyung-sik recalled the words of Mencius, “Only those with stable employment can cultivate virtue” (有恒産者有恒心), and decided to discuss solutions with his officials.

“The king’s ingenious method of division of labor at the Military Training Command has greatly increased production. Perhaps we could employ the refugees there as well?” one official suggested.

While this would have been an ideal solution, the problem was the Military Training Command’s current overproduction capabilities.

“Even with just a few hundred artisans, the Military Training Command’s output has doubled the price of iron in Hanyang. Increasing their workforce further might not be prudent,” another official argued.

This situation illustrated a point from Adam Smith’s The Wealth of Nations: while division of labor increases productivity, it also poses challenges, such as overproduction and potential economic imbalances.

Unlike England, which had resolved its overproduction issues through overseas trade, Joseon had neither the infrastructure nor the markets to handle such excess. Their society wasn’t equipped to maintain the improved productivity brought by the division of labor.

After much deliberation, the officials decided to allocate the refugees to a new task force, the “Earth Retrieval Corps” (取土軍).

“The muskets Your Majesty has devised are extremely powerful, but we lack enough gunpowder. Why not assign the refugees to the Earth Retrieval Corps to produce saltpeter?” one official proposed.

“Ah, I had forgotten about that. I have also researched more effective methods of producing saltpeter from old texts. Let’s proceed with that plan,” Kyung-sik agreed.

The king seemed to have everything planned out, even if the officials had never seen him reading those texts. They had come to accept that their king had his own ways of knowing many things.


The Logic Behind Saltpeter Production

The task given to the Earth Retrieval Corps was to build public toilets. This might seem odd unless one understood Joseon’s method of making gunpowder, which involved extracting potassium nitrate from soil enriched with the nitrates from human waste.

“The Earth Retrieval Corps have been a nuisance, digging around people’s houses and latrines to gather soil. This new approach will be less disruptive,” an official noted.

Potassium nitrate, essential for gunpowder, was extracted from soil near latrines and under eaves, areas rich in nitrates from human waste. The Earth Retrieval Corps’ activities often left a mess, causing significant inconvenience to residents.

Public toilets would reduce the need for such intrusive measures. Consequently, the military managed the public toilets as part of their duties, a seemingly strange but logical arrangement.

In addition to collecting soil near latrines, the king proposed using urine from public toilets or soil from chicken coops, mixed with straw ash and left to decompose. This process, he explained, would yield a high amount of saltpeter.

“Isn’t this method more about making fertilizer than saltpeter?” one official questioned, noting that the process sounded more like producing chogwaebi (초회비), a type of fertilizer made from plant ash.

Kyung-sik had introduced an 18th-century Swiss method for making saltpeter, based on the high nitrate content in urine and bird droppings. Mixing these with plant ash, rich in potassium, would result in the formation of potassium nitrate.

Even though the idea of collecting soil from latrines seemed primitive, Europe, up until the 18th century, had similar practices, with latrines being a crucial source of nitrates. The concept of public toilets being utilized for this purpose wasn’t Kyung-sik’s creative idea but a policy from that era in Europe.

Napoleon’s era saw posters urging citizens to use public toilets as a patriotic duty, emphasizing their importance in nitrate production for gunpowder.

Kyung-sik’s explanations about the scientific principles behind these methods were met with confusion. Eventually, he gave up trying to elaborate and simply directed the officials to follow his instructions.


The Reality of Overproduction

While the artisans enjoyed the cool paradise during summer, the officials at the Military Training Command and the Ministry of Military Affairs were facing a harsh reality. The dream of 100,000 armored soldiers had dwindled to equipping just 3,000 guards with iron armor, leaving the officials deeply disheartened.

“We’ve already made more iron armor than the previous five military divisions combined. Why are you so disappointed? Not all armor has to be iron. We’ve traditionally used paper armor, and we can produce that in abundance through division of labor,” Kyung-sik reminded them.

Indeed, substituting iron with paper for parts of the armor allowed for efficient production of paper armor. However, compared to the grand vision of 100,000 ironclad soldiers, this felt like a poor consolation, emphasizing the harsh reality of Joseon’s poverty.

Seeing the officials still despondent, Kyung-sik grew irritated. “Why are you so disappointed? The strength of an army lies in its quality, not quantity. We can equip 2,000 elite guards with iron armor and the rest with paper armor. If we build fortifications beyond the Tumen River, we can easily subdue tens of thousands of bandits. There’s no rush to produce more muskets and armor; we can wait for the new furnaces at the ironworks to increase production.”

The Ministry of Taxation supported the king, “We’ve already spent 2 million jeon buying iron and building new furnaces at the provincial ironworks. Even if we had more money, we can’t make armor without the iron. We should wait for the new furnaces to be completed and the iron to reach the market.”

“Indeed, we’ve invested a lot already, and the increased iron prices have burdened the people. The Military Training Command should buy a reasonable amount of iron and focus on producing household goods to supplement the treasury. The same principles used to make nails and bolts can be applied to making kitchen knives and farm tools. Lowering the cost of goods through division of labor will benefit the people,” the Ministry advised.

Though the king’s order to shift from weapon production to household goods seemed odd, it was in line with Joseon’s standards. Historically, Joseon’s military had engaged in various non-military activities, such as minting coins, running printing presses, and selling vegetables.

Compared to these, the Military Training Command’s role as a multi-purpose ironworks was highly productive. In the original timeline, the command had declined to a dysfunctional state by this period, so this shift represented a significant improvement.

Leaving the officials, who were still grappling with their disappointment, Kyung-sik returned from the Mapo temporary palace to Seoul. He had matters to attend to, including the impending birth of the queen’s child and the Chinese mission’s report on the northeastern conflicts.


Returning to the Capital

Walking through the Six Ministries in Seoul, Kyung-sik felt the familiar sight of the weary Ministry of Taxation officials, a stark contrast to the summer paradise in Mapo. This reminded him of his responsibilities in Seoul.

Back in the main palace, he resumed the formal court sessions that had been informally held in Mapo. He also returned to personally conducting the royal protocols and visits, which he had delegated to courtiers during his time at the Mapo palace.

Immersed again in the strict royal etiquette, Kyung-sik found himself longing for the more relaxed lifestyle of the Mapo palace. He recalled his goal from the first year of his reign: to create a nation where he could enjoy greater freedom.

“That’s why I pushed for a parliamentary system last year, causing trouble for the Ministry of Personnel. Although we didn’t achieve that, we did establish a cooperative organization. Perhaps, with the local administrative systems now in place, we can revisit the idea of introducing a parliament,” Kyung-sik mused.


Education and Reforms

As he pondered, Kyung-sik remembered the reform he had introduced to the Ministry of Personnel.

“How are the preparations for the selection system I introduced last year?” Kyung-sik asked.

Minister of Personnel, Lee Geuk-don, replied, “We hastily selected candidates from the commoners for local office positions. However, they lack the knowledge and are just illiterate peasants. How can they harmonize with the local gentry in managing the local councils?”

The idea of appointing commoners without proper qualifications seemed problematic, as they could hardly cooperate with the established local elites.

Kyung-sik had proposed this system to address issues like the ongoing siege in Hamyang (referenced in Chapter 27), but it had led to peculiar circumstances. Despite its odd progression, the system was somewhat functioning.

“Perhaps we could implement the system in regions where local councils are already established... No, that would just bring up the same old elites again,” Kyung-sik thought, recalling the challenges faced during the early reforms.

During this contemplation, the Ministry of Rites brought up an issue regarding the king’s previous decisions.

“The national civil service exam scheduled for last year was delayed and held this spring. However, the successful candidates have not been appointed to office because they couldn’t complete their studies at the Hongmungwan (Royal Library),” the official reported.

“What’s the reason for this delay?”

“They struggle to understand the new economic theories Your Majesty introduced.”

Kyung-sik had hoped that the younger generation would grasp his teachings more readily, but it seemed even they were having trouble.

The candidates from the first national exam under Kyung-sik’s reign had become experimental subjects for his bureaucratic training reforms. One of the mandatory subjects included in their curriculum was Gyeongse Theory, a compilation of economic principles that Kyung-sik had discussed during court lectures.

Although it was now the world’s first textbook on economics, it lacked the consideration needed for Joseon scholars.

The text’s disjointed chronology and the frequent use of unfamiliar graphs made it particularly challenging.

“I don’t understand how private lending can increase the money supply without the government printing more money. Isn’t that contrary to the principles of economic management?”

“How can a nation always be in debt? Shouldn’t more debt lead to higher taxes?”

The poorly translated concepts further complicated their studies.

“Why does the fluctuation in prices refer to the ‘elasticity’ of a bullet?”

“We don’t know! The king coined that term; how are we supposed to explain it?”

After hearing these issues, Kyung-sik pondered.

“Hmm... Perhaps I expected too much from them. What should I do?”

Maybe if they kept trying, they would eventually understand? Perhaps simplifying the economic concepts to the level of Mankiw’s Principles of Economics and re-teaching them might work...

“How urgent is it for the Ministry of Taxation to appoint the successful candidates to office?”

“Extremely urgent, Your Majesty,” the minister replied.

“Okay, then. Appoint them to office even if their scores in economic theory are low. However, they must continue to familiarize themselves with these theories,” Kyung-sik decided.

With this decision, the personnel issues were resolved.

“We can revisit the idea of local councils later,” Kyung-sik thought.


Diplomatic Concerns

Kyung-sik had been neglecting the Ministry of Rites for a while, resulting in a backlog of issues. The next matter was the report from the envoys who had returned from China.

“We sought to present bows and arrows to the Chinese court while discussing the campaign against the northern tribes. However, the Chinese responded, ‘Last year, your envoy was caught trading bow components. Punish those who broke the law and do not send such people again,’” the official reported.

“Well, if we can’t import horn for bow-making, it’s not just iron armor we lack but also bows,” Kyung-sik lamented.

The officials shared the king’s concern.

“Although China prohibits the trade of bow components, they are vital for our nation. How can we punish those who try to import them?”

“Until China officially issues a severe reprimand or sends a formal complaint, it’s best to turn a blind eye to such matters.”

Despite the common perception of Joseon’s isolationism, the government was desperate enough to resort to smuggling for essential military supplies like bow components.

During times of military preparation, restrictions like these from China were even more problematic.

“What was China’s response to our proposal to subdue the northern tribes?” Kyung-sik inquired.

Chief envoy Jung Sung-jo responded, “The Chinese court replied, ‘It’s good that our vassal state is dealing with the marauding tribes, but we are currently troubled by the Tatars and cannot assist you.’”

Kyung-sik pondered this ambiguous response.

“They don’t acknowledge our campaign to subdue the tribes; instead, they view it as us protecting their borders. This leaves room for them to question our actions if we incorporate the tribes later,” he concluded.

The officials, including No Sa-sin and Lee Se-jo, agreed with the king’s interpretation.

With this understanding of China’s intentions, the debate shifted to whether to proceed with the campaign against the northern tribes.

“If we build fortifications beyond the Tumen River, China will surely question us later. Is this campaign truly wise?” one official asked.

From Kyung-sik’s limited knowledge of East Asian history, he figured, “Won’t this be okay? Ming China will soon be dealing with the ‘Northern and Southern Invasions,’ won’t they?”

Without bow components, how can we effectively confront the well-equipped northern tribes?” another official added.

“The Ministry of Military Affairs believes the muskets we’re producing can’t fully replace the role of bows. Is that true?” Kyung-sik asked.

“Your Majesty’s muskets are more akin to cannons than bows. They cannot yet substitute for the flexibility of archery,” the military officials replied.

While the muskets had initially thrilled the officials, they had a clear understanding of their limitations. The muskets could not yet fully replace bows in their strategic planning.

“I have a plan to address the issue of bow components, so let’s set that aside for now. Instead, let’s discuss how to handle any future complaints from China regarding this campaign,” Kyung-sik suggested.

The chief envoy, Jung Sung-jo, was the first to respond.

“While I was in China, I observed a growing trend of luxury and decadence in their capital. The northern tribes can only enter with a minimum of ten fur coats each. If we offer them fur from our campaign, they might overlook our actions and allow trade for bow components. Perhaps they will even permit us to continue trading for bows.”

Kyung-sik was impressed by Jung’s insight.

“Wow, how did you come up with that? Maybe Jung Sung-jo should have been a merchant instead of an official,” Kyung-sik thought, recalling the criticisms about Jung’s commercial activities and extensive entourage during his diplomatic missions. Despite his reputation, Jung had a knack for securing crucial supplies, like bow components.

As the officials had recommended, Jung’s resourcefulness had proven valuable.

“Lord Ha-nam’s suggestion is sound. Let’s proceed with the campaign as planned,” Kyung-sik decided.


Notes

  1. Choi Bu: A historical figure best known for his travelogue Pyohaerok (漂海錄, “Record of Drifting Across the Sea”). He was an advocate of using waterwheels in Joseon and had suggested their construction during the reign of King Seongjong. Although his proposals saw some initial interest, widespread adoption was limited. Various reasons, including the soft soil in Korea, the seasonal variations affecting water levels, and a general lack of infrastructure, contributed to the limited use of waterwheels in Joseon. However, in the later Joseon period, there were instances of successful implementation of waterwheels in local communities, indicating that these challenges were not insurmountable.

  2. Elasticity in Economics: This term describes how the quantity demanded or supplied of a good responds to changes in its price. A good with high price elasticity will see significant changes in demand or supply with small price changes, while a good with low price elasticity will see little change. In Joseon, an example of a good with low price elasticity would be rice, as it was a staple food with consistently high demand regardless of price fluctuations.

  3. Northern and Southern Invasions: During the mid-Ming dynasty, China faced significant threats from the northern Mongols and southern Japanese pirates. The Mongol threat, under leaders like Dayan Khan and Mandukhai, had grown considerably. This era of conflict strained Ming China, making it difficult for them to exert pressure on other regional conflicts, such as those involving Joseon and the northern tribes.

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