My Portable Ming Dynasty

Chapter 370 The Second Part of the Fragmented Jiangnan

Upon seeing Little Fatty Jun, Su Ze could barely contain his smile and eagerly asked:
"Master Su, guess how much silver Uncle brought back from his trip to Japan?"

This time, Su Ze had no way to foresee the future. He hadn't communicated with Li Wenquan beforehand and knew nothing about the situation in Japan.

Su Ze tried to guess as much as possible, so he said:

"Twenty thousand silver dollars?"

Little Fatty Jun shook his head and said:
"So there were things Master Su didn't know! This time, my uncle brought back a total of 60,000 silver dollars!"

Hearing this number, Su Ze was also startled!
What does 60,000 silver dollars mean?
This is just the income from one round trip!

In East Asia, except for a few months during the summer typhoon season when the seas are rough and unsuitable for navigation, navigation is generally possible most of the time.

Sakai Port is located further north than Laizhou Port, but thanks to the influence of the Wao Nga Current, it is also an ice-free port that can be navigated even in winter.

If you can earn 60,000 silver dollars in one go, wouldn't that mean you can break even in a year?
No, that's not how you do it.

Su Ze asked Little Fatty Jun:

"I wonder if Your Highness has detailed accounts?"

Little Fatty Jun immediately pulled out a simple bill, handed it to Su Ze, and said:
"Master Su, take a look. This is the detailed list that my uncle sent back by fast horse."

As Su Ze had predicted, after reading it, he was right.

The largest source of income was from the sale of breech-loading cannons.

Artillery is something that is valued because it is rare.

Being able to sell at a high price on the first transaction does not guarantee that you will be able to sell at a high price in the future.

In the original timeline, the price of a single cannon that Oda Nobunaga had just begun purchasing was 3000 taels of silver.

However, in the later stages, the price of a single cannon dropped to 100 taels.

Although 100 taels is still a high price, the initial exorbitant profits are no longer there.

Moreover, in East Asia, Japan was not the only seller to the Ming Dynasty.

In addition, luxury goods can also decrease in price as supply increases.

The most typical example is spices.

The Portuguese came to the East in search of spices. After stabilizing the spice trade, the price of spices plummeted, and they were eventually removed from the ranks of luxury goods.

The Portuguese staked all their resources on the spice trade, and the collapse of the spice trade was the reason why the Portuguese, despite having started the Age of Exploration, were the first to be eliminated.

In this world, the businesses that can truly generate a steady stream of revenue are those that can sell products to everyone.

Take cotton cloth, for example, which was the flagship product of Great Britain in the original timeline.

Everyone needs to wear clothes, and the cotton trade supported the British Empire.

Only cotton can support an empire.

To ensure stable profits for the Japanese silver company, it is necessary to further expand into the Japanese market.

Looking at the chubby little Jun, who was full of expectations for the future, Su Ze swallowed his disappointing words.

He said quickly:
"Congratulations, Your Highness! The Japanese Silver Company was initiated by Your Highness, and now that it has yielded substantial profits, Your Majesty can rest assured!"

Little Fatty Jun looked smug.

The profits of the Japanese silver company are just a number.

The money will actually be credited to your account when the year-end dividends are distributed.

In fact, with the development of the Eastern Palace industry to this point, these silver dollars are just a number to Xiao Pangjun.

However, the fact that the Woyin Company was making such a big splash this time still put a lot of pressure on Xiaopang Jun.

What if we lose money trading with Japan?

Li Wenquan led the fleet back to port, bringing with him substantial profits, which reassured Xiao Pangjun.

"Master Su, what should we do with this money?"

Little Fatty Jun said:
"Woyin Company's merchant ship orders are already booked until next year, and even if they wanted to place an order, no shipyard would be willing to take it."

"Without a ship, recruiting crew and sailors is impossible."

"Is this money going to just sit in the books and go to waste?"

Over the years, under Su Ze's guidance, Xiao Pangjun has also developed a remarkably advanced financial awareness.

"Silver dollars are a waste to keep in the warehouse; money only has value when it is in circulation."

This concept had already taken root in Xiao Pangjun's mind, so seeing such a large profit sitting in the account but unable to generate more money made Xiao Pangjun feel extremely uncomfortable.

"Your Highness, I do have a place."

"Master Su, please tell me quickly."

"Your Highness, you are familiar with the Zhili-Wu Railway, aren't you?"
-
Inside the Wuxi Guild Hall.

Although Suzhou Prefecture was fragmented, the scholars of Suzhou at least shared a Suzhou Guild Hall.

However, Changzhou Prefecture was even more fragmented than Suzhou Prefecture. Wuxi, as a county under Suzhou Prefecture, even had its own guild hall.

These past few days, Jiangnan has been the talk of the town. First, a silver carriage entered the capital, and then came the banquet held in Jiangnan, sparking discussions in the capital about the wealth of Jiangnan.

All of this was arranged by Gu Xiancheng.

All of this is naturally for the purpose of creating momentum.

Today, the gentry from Jiangnan who are concerned about the Zhili-Wu Railway have gathered here for a meeting.

Among them were members of the negotiation team who had come to Beijing with Gu Xiancheng two months prior.

Representatives of the Jiangnan gentry who escorted the silver carts to Beijing were also present.

Despite facing so many eyes, Gu Xiancheng, who was planning such a big event for the first time, was not nervous at all, and even felt a little excited.

Gao Panlong is not up to the task.

Such an occasion was too much pressure for him; he stammered after just a few simple words. In contrast, Gu Xiancheng was much more composed and poised.

Gao Panlong also admitted that his friend was indeed a genius in the organization.

These types of people have an innate ability to unite people, making others willing to be close to them, listen to them, and follow their leadership.

However, Gu Xiancheng was still young and did not hold an official position.

The final form should be Su Hanlin, whom I met at the negotiation meeting that day, right?

While Gao Panlong was distracted, Gu Xiancheng had already finished explaining his plan.

"Gentlemen, I don't need to explain to you how important the Zhili-Wu Railway is, do I?"

"This is the first railway in Jiangnan, and only the starting point of the Jiangnan Railway. This railway will eventually connect the seven prefectures of Jiangnan, and goods from Jiangnan will be able to reach them day and night!"

Gu Xiancheng was obviously just making empty promises, but that didn't stop people from having high hopes for it.

The more developed a region's commerce and travel are, the more it understands the importance of roads.

The short distance between Songjiang Prefecture and Wusongkou became a shackle on the Songjiang cotton cloth industry, greatly increasing the cost of cotton cloth.

Each of the seven prefectures in Jiangnan has its own industrial clusters, and many of these industries require the coordination of a lot of raw materials.

"If the railway can really be built, it will greatly promote the industrial development of Jiangnan," Gu Xiancheng said.
"The railways in Jiangnan should naturally be controlled by the people of Jiangnan."

"I have also inquired about this recently. The capital has undergone two rounds of financing, namely Fangshan Railway and the Japanese Bank Company. The Japanese Bank Company, in particular, has almost emptied the capital's funds."

"According to the agreement, Zhiwu Railway will establish a board of directors based on the proportion of investment. As long as Jiangnan makes it look like we are determined to win, others will naturally not compete with us!"

Everyone present nodded in agreement.

Gu Xiancheng's plan can be considered an open strategy.

Anyone who has done business knows that a business is only considered the owner when one has management rights.

This is also why the gentry of Jiangnan were determined to gain control of the Zhili-Wu Railway.

Since the gentry of Jiangnan are so wealthy and determined to win, what's the point of competing with them?

Anyway, they can't get control of the Zhiwu Railway Company.

Moreover, the more investors there are, the greater the total amount of investment.

According to the dividend rules of this type of joint-stock company, dividends are distributed according to the proportion of capital contribution.

The returns from investing in the Zhiwu Railway would be very low.

The calculation is simple: the total share capital of Fangshan Railway was only 30,000 silver dollars. Assuming an investment of 300 silver dollars, one would own one percent of the shares.

If the Fangshan Railway could make a profit of three thousand silver dollars a year, this shareholder would receive a dividend of thirty silver dollars.

That's a 10% annual return.

However, if it were the Zhiwu Railway, and the final total share capital reached 300,000 silver dollars, then an investment of 300 silver dollars would only result in one-thousandth of the shares.

The Zhiwu Railway is unlikely to have ten times the profit of the Fangshan Railway, so the return on investment would be very low.

Nowadays, there are plenty of opportunities to make money in the capital, so why fight to the death with the gentry of Jiangnan?
Tomorrow is the official opening day for the IPO. After seeing everyone off, Gu Xiancheng was left with only Gao Panlong.

Facing his friend, Gu Xiancheng revealed a smug expression:
“Brother Yuncong (Gao Panlong's courtesy name), this time Su Ze has shot himself in the foot. As a result, we in Jiangnan have not only gained control of the Wusong Railway, but also received the Zhigu Railway as a bonus!”

Gao Panlong laughed along, feeling extremely excited that he had turned the tables on the imperial court this time—he was merely a scholar with the title of Xiucai!
The next day.

Today, a large number of people gathered in front of the bulk commodity trading market, waiting for it to open.

Among them were gentry from Jiangnan who were waiting to snap up shares, ordinary people from the capital who were watching the spectacle, and some merchants from the surrounding area who were observing the situation.

Similar to the previous Woyin Company, this time Zhiwu Railway adopted a fundraising method without limiting the total share capital.

Such stocks lack scarcity and cannot generate profits immediately upon purchase, unlike stocks like Fangshan Railway. Instead, one must wait for company dividends.

Speculators in the capital also chose to wait and see, while those who genuinely intended to invest were also considering the returns.

With so many investment opportunities in the capital, why invest in the Zhili-Wu Railway?
Gu Xiancheng stood among the crowd of Jiangnan gentry, a smile playing on his lips.

Just then, more newsboys gathered around.

"Breaking news! Breaking news! The Japanese Silver Company has returned to port! They have made a profit of 60,000 silver dollars!"

Hearing the hawking, people at the bulk trading market rushed over, and the newspapers in the newsboys' hands were snapped up.

A local gentryman from Jiangnan also managed to snatch a newspaper. Upon seeing the news that Li Wenquan was returning with a large sum of money, everyone present felt a mix of emotions.

In fact, trade between Jiangnan and Japan was very convenient.

As early as the period of tribute trade, Japan paid tribute to Ningbo.

The spark that ignited the Japanese pirate raids, the dispute over tribute, occurred in Ningbo.

After the Japanese invasion, trade between Jiangnan and Japan was suspended.

The gentry of Jiangnan naturally understood the immense profits from trade with Japan, but now the Japanese silver company had taken the lead and opened up the Japanese market.

Many people actually had other ideas. They didn't know when they would break even on their shares in the railway company. What if they went back now to buy ships to trade with Japan?
Seeing that the situation was not going well, Gu Xiancheng immediately said:

"Gentlemen! This is great news!"

"With Japan's trade booming, the Wusong Railway and Zhigu Railway will generate even more profits in the future. Now is a good time to invest!"

Gu Xiancheng managed to suppress the restless people. He looked at the gate of the bulk commodity trading market, praying that it would open soon and that no more trouble would arise.

Unfortunately, things didn't go as planned.

Before the market opened, several workers from the bulk commodity trading market brought out several large blackboards.

Gu Xiancheng didn't know what the blackboard was for. At this moment, the manager of the bulk commodity trading market came out and addressed the crowd:

"Today, the imperial court has issued an order that the Zhili-Wu Railway will publicly raise funds through a real-name share offering. Those of you who wish to purchase shares, please register your place of origin and surname on the blackboard."

This was something that had been agreed upon beforehand.

However, Gu Xiancheng felt that there seemed to be something wrong with it.

But he had no time to think it over. The starting bell rang, and everyone rushed into the bulk trading market.

As agreed, the gentry of Jiangnan began snapping up stocks, but gradually, Gu Xiancheng realized something was wrong.

First, a businessman from Wuxi insisted on writing Wuxi as his place of origin on the blackboard.

Then came the gentry from Taicang in Suzhou Prefecture, who requested that his place of origin be changed to Taicang.

Soon, the well-prepared bulk trading market set up even more blackboards and registered them separately for each county.

Immediately afterwards, a waiter shouted in a singing voice:

Congratulations to Taicang County in Jiangnan! You have raised over ten thousand silver dollars!

After this was shouted, the officials of Wu County, the county seat of Suzhou Prefecture, were dissatisfied. The gentry of Wu County gathered together and took out their silver, demanding that the shopkeeper sing the same line as well!
"not good!"

Gu Xiancheng sensed something was wrong.

In his plan, the 200,000 silver dollars brought from Jiangnan did not need to be used up on the first day.

As long as the Jiangnan gentry hold a majority of the shares, they only need to raise the minimum share capital required by the imperial court. In any case, as long as the Jiangnan gentry can control the railway, that's fine.

But the blackboards and the chanting of names by the guys immediately ignited the atmosphere.

The seven prefectures of Jiangnan were originally fragmented, and there were many long-standing grudges between the counties.

The unity he had painstakingly maintained was shattered by these shouts and chants.

The counties in Jiangnan began to band together, focusing on their arch-rival's blackboard and striving to gain the upper hand.

Gu Xiancheng no longer needed his original strategy. As the fundraising scale continued to increase, Gu Xiancheng felt that things had slipped out of his control.

By the time the market was about to close in the afternoon, Jiangnan was already in ruins, and the concept of the seven prefectures no longer existed, leaving only the counties of Jiangnan locked in a fierce struggle.

Some places weren't even counties. For example, Mudu Town in Wu County of Suzhou Prefecture insisted on not being listed with Wu County and created its own separate blackboard.

As for Gu Xiancheng, the preparatory chairman who was elected by the crowd, no one cared anymore, as the gentry from various places had all elected their own leaders.

Gu Xiancheng was exhausted, but the only good thing was that the majority of the investment came from Jiangnan, so at least the profits were still in the pot.

Just then, a waiter banged a gong and sang:
"The Japanese Silver Company has invested 50,000 silver dollars!"

The bulk commodity trading market has now completely quieted down.

Although Jiangnan is wealthy, it is impossible for a single county to raise 50,000 silver dollars.

But the unity of Jiangnan has long since disappeared.

(End of this chapter)