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

Chapter 294 Undercurrents? This economic principle is the ultimate truth!
The teahouse at the 39th shop in the capital is quite different from the teahouse that provided a resting place for merchants and travelers for most of the year.

The teahouse not only connected the adjacent shop, expanding the area of ​​the trading and tea-drinking hall, but also renovated the backyard.

Inside the huge courtyard, small shops were set up. Instead of directly selling goods, these shops supplied a variety of experiential items for verification.

The transaction process is also very simple. In the futures market, the main function of trading delivery orders is investment and financial management.

In the backyard, normal goods delivery is provided, allowing merchants to clearly see the prices and experience the quality of the goods.

This format was completely unprecedented.

Through futures trading, the transportation costs of goods that previously required significant warehousing costs have been greatly reduced.

A batch of goods may change hands several times, and the buyer may not even have seen the actual product, or the goods may be transported back and forth.

Of course, the futures market will also work with the Ministry of Revenue, the Eastern Depot, and the Embroidered Uniform Guard to conduct joint investigations into any cases of fraud.

However, since the futures market had just been established, most people did not dare to act too recklessly. After all, many people knew that although the futures market was nominally operated by Xishan, it was actually an industry under the Wanli Emperor's control, and most of the transaction fees collected ended up in the emperor's pocket.

"Hey!" Wang Dengku, disguised as a wealthy merchant, held a folding fan in his hand despite the cold weather. He spoke in a low voice, his face full of resentment.

"Manager Fan, I just asked about the price of this shop. It costs a full 100,000 taels of silver. Why doesn't Zhang Shiyuan just rob us? This price could buy a decent shop on Qipan Street in the capital, but here it's just a small shop, barely an inch in size."

When it comes to being ruthless, Zhang Yunxiu is far beyond our reach.

Walking alongside Wang Dengku in the backyard of the futures trading market, Fan Yongdou, also a Shanxi merchant, pulled his sunglasses down a little. With his gray mustache, he looked every bit the old man.

Fan Yongdou said with emotion, "I used to be a little unconvinced, but now I am completely convinced. Zhang Shiyuan is a once-in-a-century business genius. His business methods are endless. He even studies business with scholarship. This is an unprecedented innovation in history."

It's a pity this kid can't be used by me.

In the past, Fan Yongdou hated Zhang Yunxiu to the core because of conflicts of interest, as well as because of Zhang Siwei and Xu Xuemo.

But after the briquettes incident, he was truly convinced.

With the eye of a businessman, he could roughly estimate Xishan's annual revenue. With all the industries combined, it would be well over a million.
If Xishan continues to develop like this, its annual income may exceed the imperial court's annual revenue.

No wonder the officials in the capital have been all smiles lately. With the Emperor now in the money, the court no longer has to worry about its expenses, and all kinds of rewards are being distributed on time.

Furthermore, it was rumored that the imperial court was planning to implement some kind of "anti-corruption allowance," which would replace the original "ice allowance" and "charcoal allowance" with a legal subsidy on top of the original "regular salary." However, this was in contrast to the various miscellaneous fees that higher-ranking officials collected from lower-ranking officials and the common people to cover expenses.

Of course, it is too early to implement this decree, but the various rewards issued by the court since the beginning of autumn have been in full.

"The court is on edge, with all eyes on the situation in Jiangnan. If the court doesn't distribute more rewards, how can it stabilize people's hearts?"

Upon hearing the topic of the imperial court, Wang Dengku sighed, then a cold smile appeared on his face.

"But who knows how long Zhang Shiyuan can hold out? To try to fight against the entire Jiangnan region by himself is really overestimating his abilities."

If Jiangnan were truly so easy to govern, would it even be Zhang Shiyuan's turn?

Although the Shanxi merchants did not fight on the front lines in this incident, they undoubtedly played a significant role.

Prices of all kinds of goods in Jiangnan have skyrocketed, and merchants from all over the country are naturally rushing to buy them. With the futures market acting as a facilitator, according to normal circumstances, there will be a steady stream of goods being transported to Jiangnan.

But why hasn't it happened yet? This is partly due to the connections accumulated by the Jiangnan gentry over the past century, but also due to the deliberate instigation by the Shanxi merchants.

The Jiangnan Textile Bureau and the Xishan Money Shop were not only fighting against the Jiangnan gentry, but also against most of the traveling merchants.

Having gone to such lengths, how could Zhang Yunxiu possibly succeed?

“We don’t need to charge into battle.” Fan Yongdou smiled slightly. “We are prepared for both possibilities regarding the Jiangnan region, but we absolutely cannot miss out on this lucrative opportunity in Beizhili.”

The previous defeat at the oyster mine made Fan Yongdou realize that instead of confronting the enemy head-on, it was better to hide in the back and reap the benefits.

As they spoke, the two had already entered the main hall of the Thirty-Ninth Teahouse.

At this moment, a large crowd gathered in front of the wooden display board. Countless merchants, gentry, and playboys from the capital were engrossed in watching the ever-changing prices every day, their minds filled with the idea of ​​drinking tea, singing tunes, and still making money.

The reality is that in the past two months, quite a few people have indeed become rich overnight by trading futures.

“In recent months, the prices of all kinds of daily necessities in Beijing have risen sharply.”

Fan Yongdou stood in the crowd and explained to Wang Dengku.

"In my opinion, one reason is the influence of the price of goods in Jiangnan, and the other is the rise of Xishan."

"Xishan?" Wang Dengku seemed somewhat puzzled.

Fan Yongdou seems to have been cramming on economics lately, he said with a sneer.

"Cause and effect are cyclical and predetermined."

Zhang Shiyuan established various businesses in Xishan in the western suburbs, gathered hundreds of thousands of people to build a new city, which indeed solved the problem of displaced people and also made a lot of money.

What he didn't expect was that as hundreds of thousands of people in Xishan earned money and lived a good life, the prices of all the goods they needed would naturally rise as well.

This is his theory of 'supply and demand'.

Fan Yongdou clearly has a great talent for business, and he has a thorough understanding of these economic theories.

"Not only that, Zhang Shiyuan has acted perversely, from lotus root coal to glass, he has offended all the gentry and merchants in Beizhili."

Many people in the court harbored a deep resentment and wanted him to die a horrible death.

Therefore, it was only a matter of time before Zhang Shiyuan was defeated.

Wang Dengku then offered a reminder from the side.

"Manager Fan, the actions of the Xishan group are all known for their benevolence and righteousness. The price of briquettes is low, making them available to ordinary people. This should help to lower the prices of goods considerably."

After the Xishan Coal Mine achieved its massive output, it did indeed trigger a price turmoil in a number of prefectures and counties in Beizhili.

The previously exorbitant cost of firewood was suddenly drastically reduced. This wasn't as noticeable in the summer, but in the winter, these cheap coal briquettes truly became a lifesaver.

The low price of briquettes reduces the costs for restaurants and vendors, which in turn triggers a chain reaction, naturally lowering the prices of goods in the market.

But Fan Yongdou didn't seem to care, and he shook his head with a sneer.

"It's just a drop in the ocean."

Then they started analyzing it.

"No matter how cheap Xishan briquettes are, they are still just one type of coal. Unless Xishan can increase the production of briquettes tenfold or a hundredfold, their impact on the prices of goods in various places will be negligible."

If I had to nitpick, of the basic necessities of life—firewood, rice, oil, salt, soy sauce, vinegar, and tea—Zhang Shiyuan only solved the firewood problem. But there are several other things that follow; can he solve all of them?

Fan Yongdou answered his own question.

"How could such an absurd thing happen in this world? Is Zhang Shiyuan really some kind of celestial being descended to earth?"

"Through reading, Manager Fan has gained a deeper understanding of economics."

Wang Dengku picked up a glass of wine and said with a smile, offering a compliment.

"Unlike me, with my blockhead, as I get older, I find it increasingly difficult to read books."

Fan Yongdou also picked up the warm yellow wine in front of him, raised it slightly, and then drank it all in one gulp, looking very pleased with himself, and said very happily.

"It's just an example of how they treat you."

He twitched the corner of his mouth.

"Zhang Shiyuan's economic approach is quite good; we can use it in the future."

As the two were talking, the entire Thirty-Ninth Teahouse had descended into a state of frenzy. Whenever the prices on the display board were about to be updated, thunderous shouts would erupt from both the private rooms upstairs and the main hall downstairs.

"rise!"

"rise!"

"rise!"

Over the past month, countless merchants have joined this frenzy, continuously transporting vast quantities of grain, cloth, timber, and fruits to the capital, where they have become a small item on the futures trading board.

Goods like fruits and melons, which are not easy to preserve, are fine; it's just a normal transaction.

However, goods that are easy to preserve, such as grain, cloth, and timber, have experienced one crazy price surge after another.

Every day, countless price information circulates in the futures market, and various positive and negative news spreads throughout teahouses.

"Do you still have any high-quality silk?"

"A textile workshop has recently opened in Xishan. This gentleman is even buying silk. Isn't he afraid of losing everything?"

"Hey~ What's there to be afraid of? Xishan is doomed. Zhang Shiyuan can't keep going. Once Xishan's cash flow dries up, let's see if Zhang Shiyuan still dares to sell off that top-quality silk at a bargain price!"

Clearly, this silk merchant harbored deep hatred for Zhang Shiyuan.

Since Xishan established the textile workshop, silk has been produced continuously.

Not only are they cheaper than what's sold on the market, but they're also of better quality. As a result, these merchants almost lost their livelihood, so how could they not take advantage of their misfortune?

Just a moment later, frenzied shouts erupted in the futures market.

"It's gone up! It's gone up again!"

"In a single day, I earned a full thousand taels of silver. What kind of merchant or business can do this? By relying on the futures market, one can amass a fortune of ten thousand taels of silver!"

"Hey! I'm not selling anymore. In my opinion, the futures price will continue to rise."

The hustle and bustle of the futures market and the coldness of the streets of Beijing are almost two completely different worlds.

As dusk fell, Wang Dengku and Fan Yongdou emerged from the teahouse, boarded a carriage, and left the inner city. They parted ways in the outer city and returned to their respective residences.

Wang Dengku didn't eat dinner and went into his study, where he stayed until late at night.

Around midnight, Wang Dengku summoned his servant Wang San.

The autumn wind howled outside the study. Wang San, wrapped in a cotton coat, knelt down before Wang Dengku, trembling, and said.

"Greetings, sir. What are your orders, sir?"

The kerosene lamp in the study flickered, casting light and shadow on Wang Dengku's face as he slowly asked.

"How's the matter I asked you to handle the other day coming along?"

Upon hearing this, Wang San's heart skipped a beat, and he couldn't help but break out in a cold sweat.

A few days ago, he received Wang Dengku's order to send a letter to "Xiliangzi". Others might not understand the meaning, but Wang San knew perfectly well that "Xiliangzi" was Xishan.

The Shanxi merchants had a deep-seated hatred for Zhang Yunxiu. Wang Dengku asked him to deliver a letter to Xishan. Could it be that the letter was meant to insult Zhang Yunxiu?
Wang Dengku wouldn't do something so pointless, so even without reading the contents of the letter, Wang San could guess that Wang Dengku was trying to find a way out for himself.

Now, it seems this road will come in handy.

Wang San immediately kowtowed and reported, "Thank you for your high regard, sir. I dared not delay in the slightest and delivered the letter to Xiliangzi a few days ago."

Wang Dengku raised an eyebrow: "Have you seen the leader?"

Wang San nodded and said, "After some twists and turns, the head of Xiliangzi still encountered a villain."

"What do you say after reading the letter?" Wang Dengku asked, his voice trembling with excitement.

Wang San answered truthfully, "The master said that the amount given by the master was quite good and would be a great help to Xiliangzi."

Upon hearing this, Wang Dengku seemed to breathe a sigh of relief, and a comfortable smile appeared on his face.

"I know perfectly well that someone who could write 'Principles of Economics' and 'The Wealth of Nations' couldn't understand accounts."

Then he seemed unable to contain himself any longer and stepped forward to grab Wang San's arm, saying...

"What else did the head of the household say? Was there any other advice?"

Wang San looked puzzled, but he remembered Zhang Shiyuan's words clearly and relayed them to Zhang Shiyuan.

"The master said that it should be done according to economic principles. If you, sir, are interested in learning these principles, you can wait for the right opportunity and act accordingly."

Upon hearing this, Wang Dengku suddenly turned his gaze to the stack of books behind him, which included a number of economics works.

Even his copy of "The Wealth of Nations" was so worn out from repeated readings that it was practically tattered.

As a merchant, how could he possibly suppress his curiosity and not study economics?

Wang San didn't dare to ask any more questions, and simply lowered his head to wait for instructions.

But Wang Dengku's eyes grew increasingly deep, his gaze fixed on the book on principles of economics.

"An economic bubble is a false prosperity created by excessive speculation by speculators."

He muttered to himself.

"When market prices deviate from the original supply and demand relationship, and market confidence is in crisis, it will be like an avalanche, rushing down a thousand miles!"

Wang Dengku's eyes widened. He didn't quite understand many aspects of economics, but he was very familiar with the phenomena and theories described within.

He had some reservations before, but after receiving Zhang Yunxiu's confirmation, he became more and more determined.

What kind of tricks does this person have up their sleeve?

Wang Dengku couldn't understand why Zhang Yunxiu was able to make a conclusion more than a month ago. What gave him such confidence?

But he also knew all too well that with his own accounts, even if Zhang Shiyuan couldn't compete with the gentry of Jiangnan, he could still make sure they didn't get away with anything good.

After studying a whole host of economic theories, Wang Dengku held Zhang Shiyuan in the highest esteem; otherwise, he wouldn't have considered collaborating with him.

But he was clear-headed and a person who prioritized self-interest.

Giving that account to Zhang Shiyuan would be a great help, giving him an edge in the fight against the Jiangnan gentry. It would be a significant contribution to Zhang Shiyuan's victory, and even if Zhang Shiyuan failed and the fight against the Jiangnan gentry went to the death, the account would still be a valuable asset.

When both sides are severely injured, that's when you'll have to clean up the mess.

He shared the same ideas as Fan Yongdou and others, but his methods were more sophisticated, and he was not influenced by past emotions.

Thinking of this, Wang Dengku said to Wang San.

“Wang San, starting today, you should stop staying at the mansion and go to the thirty-ninth teahouse every day to look at futures prices and news in various newspapers.”

"At the slightest sign of trouble, I grant you the authority to decide whether to sell all the futures contracts we hold."

"Huh?" Wang San looked confused. "Master, what exactly does this 'rustling wind' mean?"

Wang Dengku sneered and said, "Didn't the boss make it very clear? It's just a show of force!"

Wang San looked like he understood but didn't quite.

(End of this chapter)