My Portable Ming Dynasty

Chapter 196 Futures, Grains, and Wine

"Bulk grain trading market?"

Zhu Yijun did not understand the meaning of these words together.

Su Ze said:

"Your Highness, this market is called Dazhong, which means it is not sold to ordinary people. Each unit must be sold at least the equivalent of a ship's worth of grain."

"A single-hull ship?"

Zhu Yijun was surprised. He had recently brushed up on his knowledge of grain. A single cargo ship could carry 400 shi (a unit of dry measure), which was no small amount.

Anyone who could afford to buy a whole ship's worth of grain must be a grain merchant.

Zhu Yijun had no liking for merchants, Su Ze said:
"Your Highness, everything in this world has its advantages and disadvantages."

"While grain merchants may hoard grain for speculation, there are reasons why there has never been a unified sale of grain throughout history."

Zhu Yijun looked at Su Ze with suspicion, and Su Ze said, "It would be even worse if this matter were handled by the government."

Zhu Yijun seemed to understand, but Su Ze seemed to be right. Throughout history, there have been special regulations on salt and iron. Even in the Song Dynasty, which monopolized so many things, there was no monopoly on grain. There must be a reason for this.

Su Ze continued:

“In this large grain market, grain dealers purchase grain in an open and transparent manner. After payment, the grain will be delivered from Zhigu to the capital.”

At this moment, Huang Ji, who had been silent all along, asked:

How do we set this price?

Su Ze smiled and said:

"Of course, it was decided through discussions among the businessmen."

Huang Ji pressed on, asking:
"Since the money for the grain was paid in advance, the price is for several days or even dozens of days later. How should we price it?"

Su Ze said, "Of course, we'll discuss the pricing."

Huang Ji thought for a moment, then suddenly exclaimed, "Brilliant!"

Zhu Yijun looked at Huang Ji.

Su Ze looked at Huang Ji in surprise. How could this guy's math skills have improved so quickly since he read the formulas that Su Ze had copied for him?
Zhu Yijun still looked confused, so Huang Ji said:
“Your Highness, this grain price is the future grain price, so merchants will take into account future grain price fluctuations when setting prices.”

Zhu Yijun could no longer understand, but Su Ze knew that Huang Ji understood.

This is actually grain futures.

The emergence of futures trading is actually for the purpose of obtaining commodities in a stable manner.

The original purpose of futures trading was to stabilize grain prices.

The first futures exchange in history was created for this purpose.

In the 19th century, the United States undertook large-scale development of the Midwest, and Chicago became an important hub connecting the East and West, thus developing from a small village into an important grain distribution center.

Because food production is seasonal, when large quantities of food are harvested and available, the supply far exceeds the demand in the Chicago market.

However, due to insufficient warehouses and poor transportation, grain could not be transported to the east in a timely manner, and grain buyers and sellers were unable to purchase large quantities and resell them at opportune times due to insufficient warehouses. As a result, grain prices plummeted. But by the following spring, grain shortages caused prices to soar.

Grain merchants took the lead in setting up warehouses along major transportation routes, purchasing grain from farmers during the harvest season, and then shipping it to other areas the following year, thus alleviating the seasonal contradiction between grain supply and demand.

However, grain traders also bear significant risks; if the purchase price is higher than the selling price, they will suffer losses. Therefore, immediately after purchasing the grain, they sign supply contracts with Chicago grain traders for the following spring, pre-determining the selling price to secure profits.

Mathematically speaking, the emergence of futures contracts has led traders to tend towards the average value when setting prices.

The market will also adjust the supply of futures contracts according to market prices, ultimately achieving the effect of automatically stabilizing grain prices.

Large cities like the capital rely on grain supplies from other regions, and significant fluctuations in grain prices can affect the development of urban industry and commerce.

As mentioned before, people would only enter the workshops if food supplies were guaranteed.

Besides that, Su Ze had another idea.

The canal was converted into a sea route.

The canal transport system involves a large amount of manpower and cannot be easily moved.

However, commercial transportation can be entirely changed from canals to sea.

Grain futures will inevitably make grain sellers and carriers more cost-conscious, and some will certainly choose the cheaper sea freight.

This time, the Crown Prince's move to transport grain from Dengzhou and Laizhou to Zhigu and then back to the capital will also make astute merchants realize the benefits of sea transport.

If things continue like this, Zhigu will soon regain its former bustling atmosphere and become an important port in the north.

Zhu Yijun looked at his two masters. Although he didn't understand, since they both said so, he immediately made the decision:

"Then we will establish a large-scale grain trading market in the capital. From now on, all large-scale grain transactions will take place in the market, and prices will be listed."
-
The grain price surge in the capital was quickly extinguished by the Crown Prince, and the court officials praised him even more.

The people were naturally delighted by the plight of the grain merchants in the capital.

The demotion of Chen Jing, the Imperial Censor in charge of patrolling the five gates of the city, did not cause much of a stir in the imperial court.

On July 14th, the people of the capital gathered outside the city as Wang Shizhen's delegation returned to the capital!

Wang Shizhen's mission forced Anda Khan to promise not to invade the south again this year, and the Ming Dynasty gained a year of peace without paying any price.

For the people of the capital, they had no strategic ideas; they only knew that Anda would not invade this year, so today would be another year of peace.

Wang Shizhen, who facilitated peace, naturally became a great hero in the capital.

Wang Shizhen was already a literary master. His mission was reported back to the capital ahead of schedule, especially the story of Wang Shizhen forcing Anda Khan to negotiate by threatening suicide, which spread like wildfire and made Wang Shizhen even more popular.

Therefore, today the emperor ordered the cabinet to welcome Wang Shizhen outside the city, while the people gathered inside the city to watch.

Su Ze was also standing in the Hanlin Academy's procession when he soon came across another group.

Wang Shizhen rode on horseback, looking much thinner than before he left the capital. Li Chunfang led the Grand Secretaries forward to greet him.

Wang Shizhen and the rest of the delegation quickly dismounted, and Li Chunfang personally read out the emperor's decree.

Wang Shizhen was appointed Minister of the Court of State Ceremonies, a fourth-rank official. The emperor also issued a special decree to exonerate Wang Shizhen's father, posthumously granting him the title of Wenzhen, and bestowed a title upon Wang Shizhen's wife.

Everyone present was astonished upon hearing this reward.

Although the Minister of the Court of State Ceremonies was only a fourth-rank official, he was one of the Nine Minor Ministers. Wang Shizhen's move was considered a step from a mid-level official to a high-ranking official.

Wang Shizhen was not yet a probationary official, a step that would normally seem like an insurmountable chasm, but he easily crossed it during a single mission.

However, no one present thought it was unreasonable.

Wang Shizhen's mission to the grasslands was very fruitful, but the process was fraught with danger. Even if the officials present had been asked to go, probably none of them would have been willing to go.

It truly is true that fortune favors the bold.

Wang Shizhen accepted the imperial decree with tears streaming down his face. His own promotion was secondary; the most glorious thing was that his father could be exonerated and given a posthumous title!

The members of the delegation also received rewards. Shen Yiguan, as the deputy envoy, was promoted to Assistant Director of the Bureau of Receptions, stepping into a position equal to Su Zeping's, becoming the second person to enter the ranks of mid-level officials in the second year of the Longqing reign. The Director of the Bureau of Receptions was originally Wang Shizhen, but now that Wang Shizhen has been promoted to Minister of the Court of State Ceremonies, it is estimated that the Bureau of Receptions will be handed over to Shen Yiguan.

The four elders present were all smiles.

Wang Shizhen was recommended by Gao Gong, and the emperor naturally remembered this recommendation. In the future, when Gao Gong recommended talents, his voice carried even more weight.

Wang Shizhen and Zhang Juzheng had a good relationship, and Zhang Juzheng was happy for his friend. It was also Zhang Juzheng who recommended Wang Shizhen for his reinstatement, so he deserved credit for it.

Zhao Zhenji was in charge of the Ministry of Rites, and the Ministry of Rites made a great contribution this time. As a Grand Secretary, he was also proud, and his voice in northern military affairs became even stronger.

As for Li Chunfang, Wang Shizhen brought a year of peace, and he, as the Grand Secretary, no longer had to prepare for war. What could be better than that?
Su Ze looked at Shen Yiguan in the delegation and smiled slightly. This trip to the grasslands had brought Shen Yiguan more than just a promotion.
-
July 16th.

When Su Ze arrived at the police station, he saw Luo Wanhua walking towards him with a beaming smile.

"Brother Zilin, your story 'Nie Xiaoqian' is a huge hit! Our Yuefu Xinbao newspaper went into extra print, but it's still not enough to meet the demand!"

A rare smile appeared on Luo Wanhua's face; this top scholar was only interested in running a newspaper.

Su Ze used the [Memory Palace Sachet] to recall the "Strange Tales from a Chinese Studio" he had read in his youth and wrote down this famous story.

Luo Wanhua said, "Brother Zilin, nowadays all the young scholars in the city are rushing to the dilapidated temple outside the city, hoping to encounter a beautiful soul like Nie Xiaoqian!"

Su Ze could only smile wryly after hearing this; the scholars of the Ming Dynasty were quite abstract indeed.

However, just as Su Ze had predicted, short and medium-length supernatural tales, especially novels like "Nie Xiaoqian" which combine supernatural elements with scholar-beauty elements, were indeed popular among a large number of lower-class scholars. This article boosted the sales of "Yuefu Xinbao" and prompted those scholars to buy a copy to keep as a memento.

Luo Wanhua was in a good mood as he widened the gap with his pursuers again. Just then, Shen Yiguan arrived as scheduled.

"Brother shoulder!"

Luo Wanhua greeted Shen Yiguan warmly.

After visiting the grasslands, Shen Yiguan became noticeably more composed.

He put on a new official robe, and his thin shoulders filled it out, making him look much more energetic than before.

But when Shen Yiguan spoke, it was still the same familiar tone: "Brother Zilin, have you heard? People in the Censorate are fighting tooth and nail for the position Chen Jingkong vacated!"

Chen Jing was the Imperial Censor of the Five Gates, one of the most crucial positions among the Censors of the Censorate. Now that the position was vacant, those censors who felt they were qualified naturally wanted to compete for it.

Moreover, since the implementation of the performance evaluation system, censors have been required to exercise their supervisory powers according to the scope of their jurisdiction. The five-gate patrol censors were in charge of the security of the capital, so they had an inexhaustible source of work material, making it the easiest position to boost their performance.

Su Ze shook his head and said:

“Brother Jianwu, we are of similar age but have too little experience. We can’t hold such a position for long.”

Shen Yiguan's intentions were seen through by Su Ze, and he said:
"Yes, that's what I said too, but it's always hard to refuse when someone from the same year comes knocking on your door."

Su Ze continued:

"However, there are still vacancies in the Censorate. Are there any suitable candidates among my fellow graduates in the capital? I can recommend them to the Prime Minister."

Shen Yiguan nodded repeatedly; the Censorate was a place of integrity that everyone envied.

Luo Wanhua, however, said:

"Brother Jianwu, is the manuscript finished?"

Shen Yiguan's expression immediately changed, and he stammered:

"Brother Yifu, could you grant me two more days?"

Seeing Shen Yiguan's expression, Su Ze couldn't help but laugh. He said to Luo Wanhua:
“Brother Yifu, Brother Jianwu has just returned to the capital and reunited with his wife after a long separation, so please don’t rush him to finish his manuscript.”

Luo Wanhua, however, said with a stern face:
"That won't do. Brother Jianwu promised me ten articles about the grassland scenery."

Shen Yiguan could only manage a helpless, bitter smile.

After Luo Wanhua left, Shen Yiguan said:
"Brother Zilin, General Qi has already started buying wool in Datong, but can this wool really be used to make clothes?"

Su Ze nodded and said:

"Of course you can. Weaving wool into clothes is just like weaving cloth. Any skillful woman can do it."

"Can it really be sold?"

“His Highness the Crown Prince has shops that sell them, so Brother Jianwu need not worry.”

However, Shen Yiguan also said:

"But the imperial court has banned salt and iron, so what will they use to exchange for this wool?"

Shen Yiguan visited the grasslands and gained a deeper understanding of them.

Salt and iron were indeed strategic resources that controlled the lifeline of the grasslands, but rampant smuggling of these materials was due to the fact that the grasslands had a huge demand for them, and the Ming Dynasty simply couldn't control them.

This is normal. Even the official ironworks of the Ming Dynasty couldn't keep going, and smuggled salt was rampant in the market, let alone at the border.

Qi Jiguang killed several smuggling caravans, which deterred smugglers in Datong and Xuanfu. However, the Ming Dynasty's borders were so long that even without smugglers from Datong, there were still smuggling routes through the Hetao region and eastern Inner Mongolia.

Su Ze took out a wine bottle.

Shen Yiguan looked at Su Ze with suspicion. He knew that Su Ze was very self-disciplined and never drank alcohol, so why would he keep alcohol in the public room?

Su Ze opened the bottle, and a sweet, cloying aroma of wine wafted out.

Su Ze poured a glass of wine for Shen Yiguan. Shen Yiguan picked up the glass and drank it. The wine was very easy to drink, and it slid down his throat with a hint of sweetness.

Shen Yiguan had drunk quite a bit of mare's milk wine on the grassland, which had improved his alcohol tolerance, but after drinking just one cup, he felt a little dizzy.

Shen Yiguan said, "Although it is sweet, it does not have the aroma of grain wine. Brother Zilin, what kind of wine is this?"

Su Ze said:

"This liquor was traded from the Portuguese, who called it rum."

"This wine is actually brewed from sugar residue, and can also be called sweet sugarcane wine."

Shen Yiguan exclaimed in surprise:
"Making wine with sugar? These barbarians are so wasteful?"

Su Ze shook his head and said:

"It's not made with sugar, but with the residue of sugarcane."

“During the sugar-making process, one part of molasses is produced for every two parts of sugar produced. Molasses is black in appearance and has an unpleasant smell, so it is usually thrown away.”

"But someone discovered that this molasses can be used to make wine, and the brewing speed is extremely fast, with wine ready in just three days."

"These Hongyi people grow sugarcane in the southern region and also brew this wine. It is cheap and is mostly sold to sailors and slave laborers."

"This wine is inexpensive and easy to brew. In fact, many sugarcane plantations in Luzon, Southeast Asia, also produce this wine."

"Brother Jianwu, do you think this wine can be sold on the grasslands?"

(End of this chapter)