Da Ming: Father, step aside, I'll be the prime minister!

Chapter 192 Xishan Peiwen Academy
"Does Father not know that making ice from saltpeter is a losing proposition?"

Zhang Jianxiu said it was only natural.

"The amount of silver required for one tael of saltpeter far exceeds what can be earned from making ice, not to mention that making ice from saltpeter is complicated, the amount that can be produced is small, and it even has a strange smell."

In Beijing, storing ice in winter is convenient; the effort of making ice is far less worthwhile than using ice cellars.

Only a fool would think of making ice from saltpeter to make money.

Zhang Juzheng felt he had been insulted, but he didn't know how to refute it, so he said with some annoyance.

"If you weren't using saltpeter to make ice, would you be wasting people's money and resources like this just to put on a show for me?"

Zhang Jianxiu was speechless, wondering what his father was thinking.

"Father, what are you saying? Shiyuan and I only learned of your impending arrival today, and besides..."

He looked at his father with a strange expression.

"Father, do you think Shiyuan would put on a show for you?"

Zhang Juzheng was speechless.

Although he was reluctant to admit it, Zhang Yunxiu was not in the nature to fabricate stories.

In the past, when the other party did something outrageous, they never thought of hiding it, and even took pride in it.

So, what exactly is going on with these strange market prices in Xishan?

Seeing his father's confusion, Zhang Jianxiu couldn't help but look a little proud. He crossed his arms and said in a lecturing tone.

"It seems that Dad doesn't understand what economies of scale and the impact of an excellent business environment are."

Ignoring the fourth son's rude behavior, Zhang Juzheng focused his attention on the key words.

"Business environment?"

Another new term, another new point of knowledge!
"Correct!"

Zhang Jianxiu introduced himself with great confidence.

"Economies of scale and a favorable business environment are the reasons why prices are low in Xishan!"

He asked as if he had expected it.

"Did Father see those merchants outside the West Gate? They thought the prices of their goods were cheap, and they also saw that the food at the West Gate canteen was cheap, so they became suspicious?"

Zhang Juzheng was furious: "What exactly is going on? Tell me the truth! What exactly are these economies of scale and business environment?"

Zhang Jianxiu was ultimately no match for his younger brother's boldness, and he shrank back as he spoke.

"Father doesn't even know such a simple principle?"

These words were undoubtedly a devastating blow to Zhang Juzheng. Being scolded like this by his four sons who were skilled in martial arts, the chief minister still had his temper. He froze in his chair, his face frosty.

Zhang Jianxiu knew he couldn't provoke his father anymore, so he quickly explained with a smile.

"There's nothing strange about it. Simply put, the scale effect means that Xishan needs a lot of supplies and can buy them in bulk. Since the quantity is large, ordinary people selling them are naturally willing to sell them at a lower price. This is mutually beneficial."

Furthermore, the Xishan Workshop provides subsidies to its workers, so the food in the canteen is naturally inexpensive. This meal of crystal chicken and lotus seed porridge certainly wouldn't be too expensive.

Zhang Jianxiu used his own plain language to explain the general principles involved.

Zhang Juzheng seemed to understand something, and he continued to ask, "What about the vendors outside the West Gate?"

"The reason is very simple."

Zhang Jianxiu said with a smile.

"Why are the prices of various foods in the capital so high? It's simply because there are so many vendors and the competition is so fierce. The amount of food a vendor sells in half a day in the Western Hills is equivalent to the amount sold in the entire capital in three days. With small profits and quick turnover, the prices are naturally low."

"Is it really that simple?" Zhang Juzheng was still somewhat skeptical.

"Of course not."

Zhang Jianxiu continued to explain to his father.

"And then there's the business environment. Father probably doesn't know, but it's not easy to do business in the capital. Unless you're a big merchant like the Shanxi or Anhui merchants, it's extremely difficult for ordinary people to sell their goods."

The constables of Shuntian Prefecture were looking for some tribute, but the rogues and scoundrels demanded money and free meals.

Not to mention the princes, nobles, and officials of the Eastern Depot; they might not buy in person, but their servants would go out to purchase, naturally taking advantage of their power to drive down prices.

In this way, ordinary people trading in the capital might not necessarily make money; they might even lose money.

Zhang Juzheng's pupils contracted. He knew there were dirty tricks in the capital, but he had never noticed the plight of ordinary people who went into business.

He couldn't help but ask in return.

Why is this Western Hill different?

“The Western Hills are naturally different.”

Zhang Jianxiu said with a hint of pride.

"The workers in Xishan were all bound by the workshop's rules and regulations. In the past, they had been strictly disciplined in the military camp. They were all unfortunate people and rarely made things difficult for the merchants."

He pointed outside.

"Father, you can go to the Western Hills and ask around. Just ask any worker, and the answer will be obvious."

Zhang Jianxiu helplessly spread his hands again.

"Of course, if Father still thinks it was a deliberate arrangement, then I have nothing to say."

Zhang Juzheng was still somewhat puzzled: "I still don't understand why the price difference is so large. Are the vendors really making a profit?"

"There's some profit to be made, but not much."

Zhang Jianxiu continued to explain.

"Although it takes longer for vendors to come to Xishan, it reduces the cost of being exploited in the capital."

Xishan provided the refugees with a reliable livelihood, turning them into workers. With income, the workers naturally had to spend money.

This silver provided sustenance for many local people, who relied on providing the Xishan workshops with various foods and daily necessities to make a living.

Everyone benefited.

He looked radiant as he taught his father, feeling a unique sense of satisfaction.

"The workers are generous, and the vendors can sell out their goods in half a day. If they sell out in the morning, they can sell another batch in the afternoon. Even if they only earn one penny per item, they are happy to do so!"

In the end, it was even more profitable than in the capital.

"He spoke in plain language," Zhang Juzheng said, his brow furrowed.

"Is this what economics is?" "No!"

Zhang Jianxiu looked passionate and enthusiastic.

"This is the virtuous cycle of the economy resulting from the combination of economics and scientific productivity, coupled with the combined effect of meticulous management!"

After speaking at length and gesturing wildly, he realized he had somewhat lost his composure.

However, Zhang Jianxiu was quite satisfied with the last long and difficult sentence, and would occasionally look up to observe his father's reaction.

He spoke in very simple language, but there were many technical terms in his speech, which Zhang Juzheng had to think about before he could understand.

Upon closer examination, Zhang Juzheng was somewhat surprised to find that his fourth son seemed to understand the ways of commerce even better than Zhang Xueyan, the Minister of Revenue.

He said it with a skeptical look in his eyes.

"Did Zhang Shiyuan teach you all of this?"

Zhang Jianxiu seemed quite unconvinced, but still stammered, "Fifth Brother said some things, and I've naturally thought about a lot myself, probably about 50 or 60 percent."

Zhang Juzheng saw right through this act. Just by looking at these abstract, self-created "terms," ​​he knew it was definitely the work of that brat Zhang Yunxiu.

He let out a heavy sigh, having lost all interest in continuing his meal.

"I've eaten my fill. Where is Peiwen Academy? Take me there to see it. There are some questions I need to ask that kid Shiyuan right away."

Zhang Jianxiu glanced at the barely touched food on the table and couldn't help but say, "Father, why don't you eat a few more bites?"

But Zhang Juzheng stared at Zhang Jianxiu with an undeniable air and said.

"Let the sedan chair bearers and servants continue their meal, and you take me there to meet Zhang Shiyuan!"

Xishan Peiwen Academy.

Across the mountain from where the academy is located are several coal mines. Zhang Yunxiu made this special arrangement so that the workers could see that their children could study peacefully here.

The academy was located on a low hillside, and for the children of the workers' families, climbing a small hill was nothing.

But for the Huizhou merchants, that was a real ordeal.

Children taking their afternoon nap in the school.

The Huizhou merchants, however, were brought in by Zhang Shiyuan for "business training".

Wang Shishun is quite old, and he was panting heavily from climbing the mountain.

Sitting in the classroom again, listening to Zhang Yunxiu's lecture, he was already drowsy.

However, he no longer had any will to resist.

The treaty signed by Vice Minister Xu can be described as "humiliating and detrimental to the country." The other party not only has a stake in the guild hall, but can also interfere in all the affairs of the guild hall. How could the Hui merchants not behave themselves?
Of course, the Huizhou merchants knew very well that this was a "pledge of allegiance," and without this, the other party would never have led them to make money.

Given Zhang Yunxiu's methods of making money, they would be willing to be his grandson now.

Besides, they have power and influence, yet they are still manipulated at will.
Fortunately, Zhang Yunxiu was not a bad person; he only had one flaw: he always wanted to do strange things.

For example, today, Zhang Yunxiu insisted on bringing together all the Hui merchants, big and small, from the guild hall to lecture everyone on economic principles.

Wang Shishun and others had studied for a few years, but how could they possibly understand this abstract theory that they had never heard of before?
Doing business requires studying? That's unheard of!

"In a free market environment, individuals are guided by an 'invisible hand'."

Zhang Yunxiu was lecturing on the stage, his mouth opening and closing.

But Wang Shishun and the others in the audience had dazed eyes, and none of them dared to fall asleep.

Because Zhang Tongzhi, he really knows how to hit people.

Inside the school, Wang Shishun couldn't help but notice a young man, and he turned his head to look at him.

The young man in white, with his bright eyes, listened intently to Zhang Yunxiu's theory, even raising his hand to ask questions from time to time.

It is said that he was the eldest son of Yang Jishi, a physician at Renmin Medical Hall.

Yang Tiancheng?
When Wang Shishun thought of this name, he couldn't help but mutter a few words of disapproval to himself.

Why is this young master of the Yang family not properly inheriting his father's medical skills, but instead coming to Xishan to learn economic principles?

That's utterly nonsensical!

He shook his head, thinking that this young man was a waste of his life.

At this moment, Zhang Yunxiu stood on the podium. He saw the look in the eyes of the Huizhou merchants below, which seemed to be those of mentally challenged people, and he couldn't help but sigh.

The Wealth of Nations was ultimately too advanced for the merchants of that era, not to mention the subsequent principles of economics.

How can you expect a group of businessmen who spend their days indulging in debauchery or hoarding goods to study economics with peace of mind?

His gaze fell on Yang Tiancheng. Surprisingly, the kid's medical skills were not very good, but he was quite talented in economics.

It seems they have the potential to be greatly nurtured.

With this in mind, Zhang Yunxiu lowered the difficulty level and smiled as he looked at everyone.

"It seems that you all still don't quite understand. In that case, I will tell you a story."

After saying that, he turned around and wrote a few large characters on the blackboard.

"Island economics".

Zhang Yunxiu patted the white dust off his hands.

"This is a short story about economics. It is said that in the southeastern sea area of ​​my great Ming Dynasty, there was a secluded paradise island."

The islanders are simple and hardworking, leading an extremely simple life, mainly making a living by fishing.

At this moment, Zhang Juzheng and Zhang Jianxiu had arrived outside the academy. Zhang Juzheng squinted and looked inside, and when he saw the words "Small Island Economics" on the blackboard, he couldn't help but feel a little puzzled.

"What kind of theory is this?"

Zhang Jianxiu was stunned for a moment: "I don't know either. Shiyuan's mind is as vast as the ocean. He comes up with new ideas from time to time. I've never heard of this theory before."

After saying this, he stepped forward to knock on the door, but was stopped by Zhang Juzheng.

Zhang Juzheng waved his hand and said, "It's alright, let's listen first."

Zhang Jianxiu was speechless. What kind of bad habit did his father have? Why did he like to eavesdrop on other people's conversations?
But he didn't dare disobey, so he could only obediently stay by his side.

Zhang Juzheng leaned slightly against the window, observing Zhang Yunxiu's actions while listening to the lecture inside.

"Fishing is not easy for the islanders. They often work hard all day but can only catch a few fish. Everyone goes hungry one day and has a full meal the next."

"However, one day, a young fisherman named A-Zheng studied the techniques of fishing and wove a fishing tool out of rattan, which he named the fishing basket."

(End of this chapter)