Generals of the Great Song Dynasty.

Summary

In this chapter, Chen Shun Zhi reports to Wang Ning An about the dire financial situation of seven merchant houses, which possess goods worth less than 500,000 guan but have issued exchange notes exceeding 15 million guan. Wang Ning An realizes that the merchants have likely transferred their wealth and are using the exchange notes as scapegoats. He reflects on the manipulative tactics of powerful families who have exploited the situation, leading to the downfall of the merchant houses. Tao San Lu, an old merchant, explains the history of the jiaozi, a form of currency that evolved from a trade receipt into a problematic financial instrument. The merchant houses, initially innovative, fell prey to noble families that pressured them into debt and mismanagement. Wang Ning An contemplates how to address the crisis and decides to issue new promissory notes with strict exchange rates, prioritizing small households over the wealthy, which angers the noble families of Shu.

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