The Soldier of the Red Mansion

Chapter 239 The Greatest Risk
The entire Hetao region could support more than 150,000 people, the Shanyu region had 20,000 to 30,000 people, so the Tu Mao Chuan area could support at least 10,000 people.

If we can recruit over ten thousand refugees, each raising twenty or thirty sheep, three or four horses, and a dozen or so cattle, then we can obtain one hundred thousand sheepskins, thirty or forty thousand cattle, and twenty or thirty thousand horses each year, worth at least seven hundred thousand taels of silver.

They both procured and sold the goods, profiting from both ends. Of the 700,000 taels of silver that went back and forth, most of it ended up in their hands.

Of course, one migrant worker can't support so many people; they'd be too busy to keep up even if they worked themselves to death. But a whole family can. As long as a piece of pasture is designated, the continuous output every year is like an inexhaustible gold mine.

Therefore, by strengthening trade with the mainland and controlling the scale and population, herders should be living well, instead of the current situation where most are in dire straits. In the past, they were under the control of Taiji (princes) and slave owners, so the value of their produce was taken away.

Wang Xin had a very clear understanding of the benefits of Tu Mao Chuan, including the distribution of surplus value during the production process.

Although the merchants did not have Wang Xin's theoretical knowledge, they were very familiar with the Hetao region and knew its economic value. They did not need Wang Xin to say more. However, big merchants had their own ideas, and small merchants had their own ideas.

Different types of capital have different risk tolerance capabilities, and therefore make different choices.

“The dividends will be determined by the amount of equity invested, and the three largest shareholders will decide on the daily management each year.” Zhou Shiming, Li Dexing, and Zhang Hui, who had previously wavered, formed an alliance.

Even if others disagree, it doesn't matter; the three families can just cover the cost.

"I disagree."

A small businessman objected.

"how do you want to do it?"

Zhou Shiming stopped Li Dexing, who was about to scold him, and asked with a smile.

The small merchant hesitated.

Although the project to build Zhenlu City was huge, in the eyes of small businessmen, they were just changing their acquisition targets. As for the large households like Zhou Shiming offering to pay money, the small businessman was unwilling.

Investing always carries risks. What if the barbarians raid us? What if the Zhou army here doesn't keep its word? Or what if we suffer a defeat? Wouldn't all our investments be for nothing?

These families are wealthy and powerful; they can afford to take out tens or hundreds of thousands of taels of silver and withstand the risks. However, they cannot afford to spend that much on themselves. Taking out a few thousand taels of silver would be a matter of their entire fortune, and if it were less than a few hundred taels, others would not even bother with it.

So for him, trading with the tribal taiji in the past, although riskier, was only a loss on one transaction. On the contrary, the large investment now makes him hesitate.

Zhou Shiming guessed what the man was thinking and deliberately asked him a question. Sure enough, the man couldn't answer. Did he want to say in public that he wanted to keep things as they were?

"How about this."

Sudden.

Xue Yan spoke.

As soon as he spoke, everyone around him fell silent.

Local merchants were generally reluctant to deal with this foreign merchant, but they knew that Wang Xin was behind him, and since Wang Xin was following the rules and the Xue family was going to pay, there was no reason for them to refuse him.

Zhou Shiming and Li Dexing were both displeased, but they couldn't retaliate. Many people didn't know about the Xue family, but the two families knew that the Xue family were imperial merchants.

"Those who contribute money, contribute money; those who contribute labor, contribute labor. Let's work together to get things going as soon as possible. After all, one Tu Mao Chuan isn't enough. The faster we fill the entire Shanyu region, the more stable our business will be, and the greater our profits will be."

Xue Yan didn't directly state his purpose, but instead pointed out where the benefits lay. Many people listened attentively.

Seeing this, Xue Yancai added, "Those who invest money have the right to manage the new city and select five, six, seven, or eight representatives to be responsible for daily management. Those who contribute labor can come to the city to make purchases every year."

In short, it's essentially the difference between a stationary merchant and a traveling merchant.

Why would a stationary merchant complain about having too many itinerant merchants?

Zhou Shiming and Li Dexing were impressed. This man was indeed capable and not to be underestimated. However, they were unhappy with the mention of five, six, seven, or eight representatives. This man certainly wanted more representatives to have a say; otherwise, with the three of them sticking together, there would be no room for Xue Yan to speak.

Several small businessmen showed excitement on their faces. Compared to doing business with the tribe's Taiji, doing business with merchants in the city was definitely safer and more reliable, better than the previous model, and they didn't have to pay them.

Everyone chimed in, each offering their own opinion. No one dared to be negligent when their own interests were at stake, and they strived for perfection in every detail to minimize risks.

Money alone is not enough.

Datong was a border region, and the same tael of silver was worth far more in Datong than in the interior.

For example, a horse might only cost two or three taels of silver at the border, but in Jiangnan, a horse could easily sell for more than ten taels, and a slightly better one could fetch tens of taels. It was not uncommon for a horse to cost hundreds of taels of silver in the horse market.

However, the price of rice varied. In Jiangnan, one tael of silver could buy two shi of rice, while in Datong, sometimes not even one shi could be bought.

At this point, Xue Yan's value became apparent. His trade routes in the south could greatly benefit Datong merchants. Datong merchants did not lack cooperation with inland merchants, but in terms of Xincheng, Xue Yan's involvement was irresistible. Local merchants did not need other out-of-town merchants to join them, so the value of Xue Yan's trade routes became prominent.

Xue Yan was beaming with excitement. Although he felt good about the Hexi market, the new cooperation model in Datong excited him even more because the potential profits were enormous.

night.

Xue Ke was doing math in the tent, working on accounts with Zheng Hao. The two, each unwilling to concede to the other, were so busy that they didn't pay attention to each other. Xue Baoqin obediently helped her brother organize the booklets. Zheng Hao was more familiar with the books than her brother, who was clearly lagging behind.

Xue Yan and Wang Xin sat at the table, chatting about their day with the merchants.

Wang Xin was busy with official duties, including affairs at the military camp, Yanmen Pass, Weiyuan Pass, and Tuanshan Pass, as well as the division and reorganization of the army to accommodate the new model for the future.

"Why not establish a chamber of commerce, where each of you can be a shareholder? You can decide on the amount of share capital to discuss daily affairs, and the amount below that to only have the right to dividends. You can also jointly elect a general manager to be in charge of daily affairs. As for major issues, the major shareholders can hold a meeting to decide them."

Wang Xin proposed his own method.

Xue Yan's eyes lit up. This method was really good and very feasible.

Before Xue Yan could speak, Wang Xin continued, "I left Zhang Can with a full three hundred cavalrymen, plus Shuo Erhui's four hundred slave cavalrymen, making seven hundred cavalrymen enough to deal with the current situation. However, we must also be wary of Ou Yanhu; this man should not be underestimated."

"Yes, this is the person that many businessmen are most worried about."

Xue Yan was almost tired of hearing this name from other people these past few days.

There are too many smart people, and everyone can see Ou Yanhu's ambition, which is also the biggest risk. If Ou Yanhu cannot be dealt with, then everyone's investment will be wasted.

(End of this chapter)