Long ago and far away, their was a king who ruled in Benares, in northern India. One of his ministers was called the Royal Price Maker, and he was a very honest man. His job was to set a fair price for anything the king wanted to buy or sell.
On some occasions, the king did not like his price making. He did not get as big a profit as he wanted. He did not want to pay so much when he bought, or sell for what he thought was not enough. So he decided to change the price maker.
One day he saw a nice looking young man and he thought, “This fellow will be good for my price making position.” So he dismissed his former honest price maker, and appointed this man to be the new one. The man thought, “I must make the king happy by buying at very low prices and selling at very high prices.” So he made the prices ridiculous, without caring at all what anything was worth. This gained the greedy king a lot of money, and made him very happy. Meanwhile, all the others who dealt with the new price maker, including the king’s other ministers and ordinary people, became very unhappy.
Then one day a horse merchant arrived in Benares with 500 horses to sell. There were stallions, mares and colts. The king invited the merchant to the palace, and called upon his Royal Price Maker to set a price for all 500 horses. Thinking only of pleasing the king, he said, “The entire herd of horses is worth one cup of rice.” So the king ordered that one cup of rice be paid to the horse dealer, and all the horses were taken to the royal stables.
Of course the merchant was very upset, but he could do nothing at the moment. Later he heard about the former price maker, who had a reputation for being very fair and honest. So he approached him and told him what had happened. He wanted to hear his opinion, in order to get a proper price from the king. The former price maker said, “If you do as I say, the king will be convinced of the true value of the horses. Go back to the price maker and satisfy him with a valuable gift. Ask him to tell the value of one cup of rice, in the presence of the king. If he agrees, come and tell me. I will go with you to the king.”
Following this advice, the merchant went to the price maker and gave him a valuable gift. The gift made him very happy, so that he saw the value of pleasing the horse dealer. Then the merchant said to him, “I was very happy with your previous evaluation. Can you please convince the king of the value of one cup of rice?” The foolish price maker said, ‘Why not? I will explain the worth of one cup of rice, even in the presence of the king.”
So the price maker thought the horse dealer was satisfied with his cup of rice. He arranged for another meeting with the king, as the merchant was departing for his own country. The merchant reported back to the old price maker, and they went together to see the king.
All the king’s ministers and his full court were in the royal meeting hall. The horse merchant said to the king, “My lord, I understand that in this your country, my whole herd of 500 horses is worth one cup of rice. Before I leave for home, I want to know the value of one cup of rice in your country.” The king turned to his loyal price maker and said, “What is the value of one cup of rice?”
The foolish price maker, in order to please the king, had previously priced the herd of horses at one cup of rice. Now, after receiving a bribe from the horse dealer, he wanted to please him too. So he replied to the king, in his most dignified manner, “Your worship, one cup of rice is worth the city of Benares, including even your own harem, as well as all the suburbs of the city. In other words, it is worth the whole kingdom of Benares!”
On hearing this, the royal ministers and wise men in the assembly hall started to roar with laughter, slapping their sides with their hands. When they calmed down a little, they said, “Earlier we heard that the kingdom was priceless. Now we hear that all Benares, with its palaces and mansions, is worth only a cup of rice! The decision of the Royal Price Maker is so strange! Where did your highness find such a man? He is good only for pleasing a king such as you, not for making fair prices for a merchant who sells his horses from country to country.”
Hearing the laughter of his whole court, and the words of his ministers and advisers, the king was ashamed. So he brought back his former price maker to his official position. He agreed to a new fair price for the herd of horses, as set by the honest price maker. Having learned a lesson, the king and his kingdom lived justly and prospered.