My Portable Ming Dynasty

Chapter 347 The Silver Dollar War
This was beyond Xiao Pangjun's knowledge, but at his age, he didn't need to overthink it, so he said confidently:
"My son, I don't know."

The Longqing Emperor also found it amusing and couldn't help but ask:
"Jun'er, don't you know that you're still so self-righteous?"

Little Fatty Jun said:
"The sage said, 'To know what you know, and to know what you don't know, that is wisdom! Your subject believes that not knowing is wisdom!'"

The Longqing Emperor was amused by his son, and his mood improved considerably.

He said:
“Jun’er is right. A person of high status should not be arrogant and self-willed. He may not know things himself, but he should let his subjects assist him in knowing them.”

"Take this memorial back to the Eastern Palace and have your uncle and Master Su help you with your analysis. Then tell me why."

After saying this, the Longqing Emperor handed a memorial to Xiao Pangjun before leaving Yikun Palace.

Consort Li felt a pang of reluctance upon hearing that the emperor was leaving.

A few days ago, another batch of imperial concubines were brought into the palace, and the emperor is spending fewer and fewer nights in Yikun Palace.

However, within the inner palace, no one could control the emperor.

Emperor Jiajing had no empress before his death, and Emperor Longqing's birth mother had also passed away.

Although Empress Chen was released from the Cold Palace, the relationship between the Emperor and Empress could hardly return to what it was before. Empress Chen longed for peace and quiet and would not offer any advice to the Emperor.

Consort Li was also insecure about her background, so she was always cautious and dared not offend the emperor.

After the emperor left, Xiao Pangjun took the opportunity to slip away. Once back in the East Palace, he immediately asked Li Wenquan to summon Su Ze.

"Master Su! What exactly does Father mean by giving me this memorial?"

Su Ze took the memorial, which turned out to be a memorial from Hai Rui, the governor of Yingtian, impeaching Wang Bengu, the former eunuch who was in charge of Nanjing.

After Wang Bengu resigned, his political enemies, whom he had suppressed, launched a counterattack and began to impeach and expose Wang Bengu's crimes.

Yingtian Governor Hai Rui was also stubborn; he accepted these reports and directly detained Wang Bengu's convoy returning to his hometown.

Hai Rui searched Wang Bengu's convoy and found tens of thousands of silver coins, as well as chests full of gold and silver treasures. Hai Rui immediately detained Wang Bengu and submitted a memorial impeaching him.

The first half can only be described as the trigger for the event.

In addition to impeaching Wang Bengu, Hai Rui also talked about the hoarding of silver dollars by gentry in Jiangnan.

This is where Zhu Yijun couldn't understand it.

Not only Zhu Yijun couldn't understand it, but even Li Wenquan couldn't understand the second half.

After reading it, Su Ze said to the two of them:

"Wang Bengu was the eunuch in charge of Nanjing and was responsible for collecting gold and silver coins that were to be sent to Southern Zhili."

"Your Highness, the Golden Flower Silver system originated during the reign of Emperor Chengzu. It was created to address the issue of 'northern salaries paid in the south' for officials in the capital after Emperor Yongle moved the capital to Beijing."

"When the capital was first moved, there was a shortage of food in the capital. Officials in the capital had to go to Nanjing to collect their salaries with 'salary slips'. This practice of exchanging salaries in different places caused problems. Officials could exchange their salaries with salary slips, but because of the long distance, some officials were unwilling to travel thousands of miles to exchange for food."

"Later, Emperor Chengzu came up with a solution: to transport a portion of the taxes from Southern Zhili to the capital in silver, known as 'Golden Flower Silver'."

"Later, as the situation changed, the gold and silver became the income of the imperial treasury, and it continues to this day."

Little Fatty Jun listened attentively.

Su Ze was different from the other lecturers in the Eastern Palace.

When he explained these court regulations and systems, he never said anything like "the laws of our ancestors cannot be changed," nor did he simply copy the contents of the national laws. Instead, he explained the origin, development, and formation of the entire system clearly.

This is also why Zhu Yijun likes Su Ze's lectures the most.

Little Fatty Jun nodded and said:
"I see!"

Su Ze continued:

"Golden flowers and silver are taxes collected in silver, but the people only have grain in their hands. So when it's time to collect taxes, the people have to sell their grain to merchants and exchange it for silver to hand over."

"After the opening of Dengzhou and Laizhou ports, the imperial court minted silver coins, and later required the gold-plated silver coins in Jiangnan to be converted into silver coins and handed over."

"The gentry of Jiangnan hoarded silver dollars in order to suppress grain prices."

"When it came time to pay taxes, the people of Jiangnan had to sell their grain at low prices in order to raise enough silver dollars. This is what the ancients called 'cheap grain hurts farmers'."

“Wang Bengu used this method to collude with the gentry of Jiangnan to profit from the gold and silver.”

Little Fatty Jun understood immediately, and he said:
"Is this also the reason why the gentry of Jiangnan opposed the Japanese silver company?"

Su Ze nodded.

The Jiangnan Company opposed the Japanese Silver Company for many reasons, but the struggle for control of currency was also a factor.

Since the minting of coins in Dengzhou and Laizhou, the north has collected seigniorage. In addition, the north opened its ports earlier and produced industrial products through the efforts of Su Ze.

Today, the Jiangnan region is gradually losing its dominant position in the economy.

The Japanese Silver Company was a franchised company that dealt in gold and silver arbitrage, a business that seemed like it could never lose money. This naturally affected the economic status of Jiangnan.

Therefore, the gentry in the south did not hesitate to spread rumors and attack the crown prince in order to stop the Japanese silver company.

Su Ze said:

"Your Highness, minting silver coins is a national policy, and this is absolutely not something that the gentry of Jiangnan can stop!"

After listening to Su Ze's words, Little Fatty Jun asked:

"Master Su, does that mean Father has made up his mind to establish the Japanese Silver Company through Uncle's memorial?"

Su Ze nodded and said:

"The matter of Yingtian has also made His Majesty determined, so Your Highness can now raise funds."

Little Fatty Jun immediately got excited and busied himself having Zhang Hong take stock of the cash reserves in the East Palace shops, preparing to subscribe to the shares of the Japanese Silver Company.
-
The memorial requesting the establishment of a special trading company for Japanese silver was passed, and the Japanese silver trading company was established, issuing shares publicly in the capital's bulk trading market.

[The Japanese Silver Company became the world's first franchise company.]

Not content with the profits from gold and silver arbitrage, the Japanese silver company also engaged in extensive trade with Japan.

To secure its trade with Japan, the Japanese silver trading company hired escort ships to pressure Japan into signing a trade treaty.

The initial value of shares in the Japanese silver trading company once soared to astronomical levels, but the bubble eventually burst as Japan's gold and silver production plummeted.

The dynasty's fate remains unchanged.

[Prestige +300.]

[Remaining Prestige: 790]

Sure enough, companies that rise by relying on monopoly profits eventually collapse when those profits are lost.

However, the establishment of this Japanese silver company is indeed of great benefit to the Ming Dynasty at present.

First and foremost, the silver shortage problem can be alleviated.

The Ming Dynasty was a black hole of silver.

This timeline, modified by Su Ze, needs silver even more than the original timeline.

The Japanese silver company could at least alleviate the contradiction between silver demand and supply to some extent, and wait until the currency problem was solved.

Secondly, the Japanese silver trading company could do things that the imperial court couldn't easily do on its own.

Since it was a gold and silver arbitrage trade, the Japanese silver company's fleet would definitely need escorts, and the company's profits would inevitably require military force to maintain.

Driven by profit, the Japanese silver company would even infiltrate Japan and try to influence and manipulate the situation there.

It's more convenient to entrust these matters to the Japanese silver company than to the imperial court.

Su Ze returned home and found his wife, Zhao Lingxian. "How many silver dollars can we scrape together for an emergency?"

Zhao Lingxian looked at her husband with suspicion. Su Ze had never inquired about the family's assets since their marriage, so why was he suddenly asking about the family's remaining money today?
However, Zhao Lingxian quickly said:
"My lord, if we hurry, we should be able to raise five thousand silver dollars."

"so much?"

Su Ze was somewhat surprised. Although his wife's dowry was generous, the farm's output was fixed, and much of it went towards the family's daily expenses.

Zhao Lingxian said with a smile:

"Husband, most of this comes from the dye house's share. Have you forgotten? The new army of the capital garrison commissioned uniforms, and His Majesty personally designated the colors. Therefore, the Ministry of War entrusted the dye house to the Crown Prince's palace, and we also received a considerable share of the profits."

The dye industry is indeed extremely profitable.

"In addition, there is a vanadium oil workshop. My husband improved the lead chamber method, and the Crown Prince also gave us a share."

"In addition, we also invested in a few wool workshops at home, and those are all making money."

Su Ze then remembered that wool yarn made from grassland wool had become very popular in the capital in recent years, and his wife had also mentioned the idea of ​​setting up a wool spinning factory. Su Ze had even helped improve the wool spinning machines.

In addition, Su Ze proposed the idea of ​​dyeing yarn to make colored yarn.

Zhao Lingxian also set up a wool spinning factory outside the capital city, and unexpectedly, it made money.

"My wife is so good at managing money!"

Su Ze was somewhat surprised. He didn't have high demands for daily life, but he also knew the difficulties of maintaining the mansion.

I thought it would be good enough if my wife could keep the family's income and expenses balanced, but I never expected that she would save so many silver dollars.

It should be noted that the eunuch in charge of Nanjing had only accumulated tens of thousands of silver dollars during his long tenure.

It's fair to say that new industries are still the most profitable.

Su Ze was somewhat delighted. The wool textile industry, the new dyeing industry, and the acid and alkali chemical industry were all new industries that he had fostered after his transmigration.

As long as these new industries can continue to generate profits, new industrial groups will emerge in the north, diluting the economic dominance of the south.

"Take out all the silver dollars and exchange them for shares of the Japanese Silver Company."

Zhao Lingxian was quite prestigious among the female relatives of officials in the capital and had heard about the recent discussions about the Japanese silver company. She immediately understood her husband's meaning and nodded, saying:

"I will go and make the preparations immediately."

"Also, my husband, should we inform those people's residences as well?"

Su Ze understood what Zhao Lingxian meant; those people were Su Ze's friends.

"What I will tell them is that my brother Jianwu has not returned from his trip to Korea with the Grand Herald, and I will write to him."

Zhao Lingxian immediately said:
"I will speak to Sister Du."

After Shen Yiguan's visit abroad, Zhao Lingxian frequently visited Shen Yiguan's residence to accompany his wife, Du, and took Du to various social occasions.

Su Ze nodded. According to the system, before Japan's gold and silver production decreased, the Japanese silver company was making a sure profit.

Inform your friends and ask them to contribute money to buy shares.
-
On June 27, the emperor officially issued an edict approving the proposal submitted by Li Wenquan, the heir of the Earl of Wuqing, to establish the Japanese Silver Trading Company and grant special permission to trade Japanese silver.

The Ministry of Revenue granted a 50-year franchise, allowing the Japanese Silver Company to exchange nine mace of silver for one silver dollar from the Dengzhou-Laizhou Mint.

This franchise was the foundation of the Japanese Silver Company. Compared to exchanging one tael of silver for one silver dollar on the market, the Japanese Silver Company could make money simply by bringing silver to the Dengzhou-Laizhou Mint, as long as it had this franchise.

Soon after, news of Japan's gold and silver reserves spread through the newspapers, and the Japanese silver company quickly became a hot topic of conversation in the streets and alleys of the capital.

Following this, the imperial court announced that the Japanese Silver Trading Company would follow the precedent set by the railway company and raise funds in the capital's bulk trading market.

There is no upper limit to this fundraising; each share costs one hundred silver dollars, and all funds raised will be used for trade with Japan.

The enthusiasm sparked by the news of the establishment of the Woyin Company even exceeded Su Ze's expectations.

This is because the example of railway company stocks came first.

The market price of railway company stock, which was originally 100 silver dollars per share, has risen to 150 silver dollars, but even so, it is still difficult to find buyers.

Because railway company stock not only represents the right to dividends, but also serves as a ticket to the railway company's board of directors.

Even ordinary people were thinking about scraping together 100 silver dollars to buy a share of the stock.

Fan Kuan, the editor-in-chief of the Commercial Daily, made a special trip from Zhigu back to the capital to meet with the clan chief, Fan Baoxian.

"Brother Zhongli (Fan Kuan's courtesy name), you've come about the stock of the Japanese Silver Trading Company, haven't you?"

Fan Kuan nodded repeatedly, and said to Fan Baoxian:
"Clan leader! This Japanese silver trading company is crucial to the future of our Fan clan for decades to come. How much silver should the clan contribute as a share?"

Fan Baoxian sighed and said:

"There is no dispute within the clan about contributing funds, but there is no consensus on how much to contribute."

"Why?"

Fan Baoxian sighed and said:
“Brother Zhongli, you don’t know, the money in the clan treasury is now all invested in the mines in Fangshan. This time, each branch will have to pay out of their own pockets to subscribe to the stocks.”

As railway construction neared completion, Fan Baoxian, the executive director who was deeply involved in the project, naturally recognized the value of the railway.

He persuaded his family to invest all their working capital in the Fangshan mine.

With the railway, these mines could become gold mines, bringing huge profits to the family.

This decision was certainly correct, but no one expected that the Woyin Company would be established at this time.

As a top businessman, Fan Baoxian naturally saw the value of the Japanese Silver Company, but persuading each branch of the family to contribute their own money as shares would probably not be so easy.

Fan Kuan said:

"I see. Then the clan leader need not worry about it. Each branch can contribute its own funds, and everyone can purchase as much as they like."

Fan Baoxian said:

“In this way, the Fan family will not be able to obtain a centralized shareholding.”

Fan Kuan, however, said:
"Does the clan leader really think that our Fan clan can get a large percentage of shares in the Japanese Silver Company this time?"

"Is not it?"

Fan Kuan said:

"Clan leader, this time the Woyin Company has no upper limit on its fundraising. I can assure you that the funds raised will be an astronomical figure!"

"Moreover, the Japanese Silver Company is a matter of national policy and involves important national affairs such as minting coins. It is absolutely impossible for it to be completely controlled by merchants like the railway company."

"This time, it would be good enough if the Fan family could just have some soup with them."

Hearing this, Fan Baoxian stopped worrying and said:
"I've already spoken to the clan about how to make money; they can decide how much they want to buy."

"Our main branch will contribute 30,000 silver dollars!"

Fan Kuan said:

"Clan leader, I have accumulated some wealth over the years, and I would like to trouble you to help me make an investment."

On July 2nd, the articles of association of the Japanese Silver Trading Company were finally finalized.

From July 3rd to July 23rd, the Woyin Company began its public offering.

With the ringing of a bell in the bulk trading market, the market opened!

(End of this chapter)