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

Chapter 239 The Futures Trading Market? Let the Jiangnan gentry have a taste of something new!
On the display board inside the teahouse.

The prices and transaction information shown include briquettes, firewood, silk fabrics, and even more glass, as well as various antique porcelains.

In this newly established "futures trading market".

The teahouse, in collaboration with Xishan, launched a standardized contract, allowing each merchant to provide real-time quotes and warehouse receipts.

Every half hour, the teahouse staff would use these quotes and warehouse receipts to flip the price tags, guiding the merchants and gentry in the teahouse to conduct real-time transactions.

The teahouse also has staff to verify the quantity of goods and the authenticity of quotations.

To ensure smooth transactions, a deposit system was even established, requiring merchants to pay a certain amount of silver before participating in the transaction.

What's even more thoughtful is that the teahouse also provides a voucher service, with a dedicated guarantor to assist tea drinkers and merchants in signing contracts and conducting trade based on real-time prices.

As a result, a strange scene has been unfolding in the teahouse these days.

From morning till night, the teahouse is always packed during trading hours.

Every hour, the tea drinkers would stare at the wooden sign above and shout something.

"Open the glass!"

"Close out your short positions in coal!"

One after another.

If prices rise, some people will cheer with joy; if prices fall, some people will be devastated.

The most outrageous of them all was a scholar who always wore a mask, his eyes bloodshot, who would occasionally kick the servant next to him and say something.

"Open fifty more orders for glassware! If the margin isn't enough, use the land deeds from the manor as collateral!"

"No, no! The price has dropped again, sell it all! Quick! Close all the orders!"

He was almost blinded by rage.

Even when companions stumbled in and tried their best to dissuade them, it was all in vain.

Wang Heng pulled his friend aside, seeing the situation and feeling anxious.

"Brother Jiongbo! Don't let yourself sink into despair like this. Quickly come back with me, for this place is a place that bewitches and seduces the soul!"

The scholar was none other than Wang Shizhen's eldest son, Wang Shiqi. He pushed Wang Heng aside and said with great disdain.

"Wang Chenyu! Don't stop me from making a fortune! I've already earned 100,000 taels of silver in the last three days!"

I'm not buying the current price of the glass, but the price next month. If I bet correctly, I'll make back all my past losses!

"All the money I earned came from his Xishan silver, all from Zhang Yunxiu's silver!"

"Hahaha~"

Wang Shiqi let out a maniacal laugh, glanced at the changing display board, and kicked the servant in the buttocks.

"Hurry! Quickly fill out another hundred porcelain orders; I'm bullish on prices!"

Meanwhile, the private rooms on the second floor of the teahouse were also packed with people.

The wealthy young men, sons of noble families, were all caught up in a frenzy as they watched the prices jump on the display board.

After disguising himself, Duke Zhu Yingzhen, holding the hand of his younger brother Zhu Yinghuai, said excitedly.

"Yunfu! Yunfu! The price of glass beads has increased by five qian of silver. I opened five thousand more glass beads today, and I have earned a total of two thousand five hundred taels in a short time!"
"Damn it! I've never seen money come in so fast in my life! Faster than robbing someone!"

Zhu Yinghuai was writing down the punchlines for a crosstalk performance on a manuscript paper when he heard this. He looked at his elder brother with disdain and gave him a serious reminder.

"Brother, have you forgotten Master's instructions to you all?"
This 'futures market' is for regulating the price stability of goods such as glass, locking in costs and mitigating risks, not for you to make money through gambling!

"Your obsession with this has caused you to disregard your master's instructions; you will surely suffer greatly!"

Zhang Yunxiu was on duty at the Southern Garrison Office, enjoying a rare moment of leisure, when another person came knocking on his door, following his trail.

"Zhang Shiyuan! What is this futures market of yours? You promised that no one would lose money, so what trouble are you causing now?"

The British Duke Zhang Rong, in a fierce manner, slammed the futures trading certificate from the teahouse onto the desk, his hair and beard standing on end.

"What is the futures market?" Zhang Yunxiu slowly brewed a pot of tea. "Uncle, this is just a new attempt."

"Try it?" Zhang Rong glared, his beard bristling. "That brat from the Duke of Cheng's family is practically insane! A bunch of rich kids are spending all their time loitering in that teahouse. This is practically gambling; it's a disgrace to the country and its people!"

“Letting them gamble inside is better than everyone gambling together,” Zhang Yunxiu shook his head, his tone meaningful.

"Are you still spouting nonsense here?" Zhang Rong was so angry that his hair and beard stood on end, and he looked fierce and menacing.

But Zhang Yunxiu remained calm and even let out a sigh.

"It seems that Uncle still doesn't quite understand."

"This kind of transaction was not created by me, Zhang Yunxiu, but was taken from the 'Jiaoyin Contract' established in the Song Dynasty. During the Song Dynasty, the court used 'Jiaoyin Contracts' to control materials such as tea, salt, and iron. Merchants could also buy and sell 'Jiaoyin Contracts' to conduct transactions and make profits."

This was the rudimentary form of futures trading.

“Salt import?” Zhang Rong quickly thought of a corresponding concept.

In truth, the "futures market" isn't really that complicated.

After all, if it were really some complicated theory, why would those good-for-nothing playboys be hanging around teahouses all the time?
“There are some similarities.” Zhang Yunxiu nodded and explained, “The salt certificates of our Great Ming Dynasty are essentially just a type of commodity certificate issued by the salt commissioners in various regions and overseen by the Ministry of Revenue.”

Some of these goods certificates are tradable.

The futures trading market within the teahouse, in a sense, establishes a platform to make such transactions more transparent and standardized. Simply put, it improves trading efficiency, distributes risk, and facilitates management.

Zhang Rong's lips twitched as she spoke mercilessly.

"This is nothing more than a cheap trick to win big in the marketplace, how could the Grand Secretary tolerate you?"

“This matter is recorded in the Ministry of Revenue, and Minister Zhang of the Ministry of Revenue is also aware of it.” Zhang Yunxiu glanced at the other party. “Uncle, if you don’t understand economic matters, don’t meddle.” “You!” Zhang Rong was furious, jumping up and down. “Zhang Shiyuan, what did you say to us before? You shouldn’t have been talking about stabilizing the price of glass, but this time…”

"This is how market prices are stabilized."

Zhang Yunxiu explained helplessly.

"Uncle, have you ever considered that in the past, the prices of large quantities of goods in market transactions were often opaque?"

Ordinary merchants and common people are often manipulated by wealthy merchants and cannot even keep track of market price fluctuations.

Furthermore, the futures market includes not only glass, but also scarce commodities such as grain, cloth, and silk.

In the past, transaction prices were not readily apparent.

Ordinary people often suffer losses due to price fluctuations when buying and selling grain; the futures market can precisely solve this problem.

He chuckled and added meaningfully.

"In this way, merchants have a reference for the prices of goods they trade, and ordinary people can allocate their grain production according to the prices in the futures market, which naturally reduces the risk."

The futures market can not only solve these problems, but also guide prices into a normal supply and demand range, reducing cost risks and excessive volatility.

Zhang Yunxiu's eyes were bright and his expression was very determined.

"Most importantly, it can curb merchants' hoarding and speculation, and put the control of market prices in the hands of the government."

If we want to keep the price of glass stable, if we want my father's new policies to continue, and if we want the Ming Dynasty to become more prosperous.

This is the only way!

Zhang Rong was somewhat bewildered, and suddenly felt a pang of regret. As a military officer, instead of wielding a spear and sword, he had come to debate with Zhang Yunxiu on scriptures; wasn't he just asking for trouble?

“But,” Zhang Rong’s face turned red, “look at the group of people in the teahouse. How are they any different from gamblers?”

“Uncle, you’ve got the priorities backwards.” Zhang Yunxiu shook his head. “It’s not that the futures market drives people crazy, but that these people are inherently greedy.”

Now, they're simply shifting their greed from the people to the futures market—isn't that even more profitable?

He paused, his smile deepening.

"Instead of arguing with me here, Uncle, you should go and persuade Duke Cheng. I heard that he has recently invested a lot of money in the futures market."

Although prices in the futures market tend to be stable, they are still subject to fluctuations in the final analysis.

If you become obsessed with trading every day, you will eventually lose everything.

My nephew has already clearly explained the reasoning behind this.

Zhang Rong's expression gradually became serious, and he couldn't help but look at Zhang Yunxiu with curiosity.

"Shiyuan, what exactly do you seek?"

Zhang Yunxiu shook his head leisurely and said.

"Uncle, I, Zhang Yunxiu, do not seek any reward."

In my opinion, those who are crazy about the futures market have also made some contributions.

In the past, they exploited the people; now they can contribute their share in the futures market.

Without their losses, what would the futures market use to cover and hedge against the price increases of commodities like grain and cloth?

"Uncle, just watch. Neither my father nor His Majesty has said anything."

The futures market is still in its early stages and its scale is relatively small. In a few months, we'll see how things develop and then we'll know its usefulness.

Zhang Yunxiu's meticulous and professional economic discourse left Zhang Rong, a burly military man, completely bewildered, forcing him to swallow back his initial anger.

After Zhang Yunxiu finished speaking rapidly, Zhang Rong felt as if his head was filled with a tangled mess, and left the Southern Garrison Office in a daze.

As soon as the man left, Zhang Yunxiu asked someone to summon Yu Xiangdou to the duty room.

Lately, Yu Xiangdou has become his right-hand man in business strategy.

This kid has a real talent for business and is equally trustworthy.

Yu Xiangdou entered the duty room, carefully closed the door, and knew why Zhang Yunxiu had summoned him.

He cupped his hands in greeting and went straight to the point.

"My lord, there has been some movement in Jiangnan."

"Let me take a look!" Zhang Yunxiu said crisply.

Yu Xiangdou then took out a letter from his pocket and respectfully handed it over.

Upon unfolding the letter, Zhang Yunxiu's lips curled into a smile.

"These people still can't hold their breath, and our futures market just happens to come in handy."

His gaze suddenly sharpened.

"Pass down the order: immediately list futures contracts for Xishan and Jiangnan fabrics in the teahouse futures market."

“Write another letter.”

He paused, his tone leaving no room for argument.

"Order that a futures market be established in Jiangnan as well."

Tell Wang Shishun of the Huizhou merchants and Zhao Rui of Ruijin Silk Company to operate at full capacity and give them no chance to catch their breath!

"Let those gentry and merchants of Jiangnan see what productivity really is!"

(End of this chapter)