Prime Minister

Chapter 250, Page 249: The Salt and Grain Transport Dispute

"This……"

Qiao Wangshan hesitated, clearly indicating that he had something to hide.

Zhang Shi and Hao Shifang consciously got up to take their leave. One said he was going to check on the preliminary preparations for the summer tax, and the other said he had several important cases to handle. They left the inner hall one after the other.

"Your Excellency, when I first heard the news, I was certain that this was not something those two juniors did on their own. Whether Governor Jiang knew about it is still unknown, but Sang Shichang certainly did. Perhaps this was his instruction, specifically targeting the Qiao family!"

Qiao Wangshan stopped trying to hide it and looked quite confident.

Xue Huai stood up and personally poured tea for the two of them, saying gently, "Old Qiao, please elaborate."

"This story begins before the provincial governor investigated the Lianghuai salt case."

Qiao Wangshan calmed himself and slowly said, "Before Your Excellency's arrival in Yangzhou, the salt merchants of Lianghuai and the canal transport guilds were inextricably linked, with their interests closely intertwined. It is true that the canal transport authorities controlled the canal, but the dockworkers, boatmen, and trackers at the bottom were actually controlled by the canal transport guilds. Of course, the canal transport guilds were also subject to the canal transport authorities. For us salt merchants, the distribution of salt and goods to various places was inseparable from the canal transport, and we had to rely on the protection of the canal transport guilds."

Xue Huai pondered for a moment and said, "Old Qiao, I can understand that you can't do without the Grand Canal, but where does your claim that we have to rely on the protection of the Grand Canal Gang come from?"

Sitting to the side, Shen Bingwen explained, "It's like this: In the past, each business only cared about its own business. As their businesses grew and their operations expanded, they faced harassment from local officials and criminal gangs wherever they expanded. At this time, as long as they reached an agreement with the Canal Gang in advance, they would step in to resolve most of the troubles. Therefore, whether it was a large family like the Liu and Zheng clans or ordinary small and medium-sized merchants, they would regularly give the Canal Gang a sum of money to ensure their safety."

Xue Huai nodded slightly.

This is a very real problem, and it's not something that can be solved with a few nice words.

Take the Shen family's Guangtai Bank as an example. When it entered the capital two years ago, it was harassed by the Ministry of Revenue and found itself in a dilemma. However, all of the other party's actions were in accordance with the laws of the Great Yan Dynasty and the rules of officialdom, and no one could find fault with them. In the end, if Jiang Li had not stepped in to persuade the Ministry of Revenue to give in, Guangtai Bank would not have been able to obtain its license.

If the situation is like this even under the emperor's nose, the situation in other parts of the country must be even worse.

Merchants who want to make money in other people's territories must pay their respects to the local officials and powerful figures. If they don't take good care of the local officials and powerful figures, losing money is a minor issue; the real danger is losing both their money and their reputation.

"The Qiao family and the Cao Gang used to have a decent relationship. Although Sang Chengze was an arrogant and domineering playboy, he would never dare to break the rules of the Cao Gang without permission, otherwise Sang Shichang would not let him off the hook."

Qiao Wangshan shook his head, then said frankly, "Your Excellency, in fact, the Grand Canal Administration, the Grand Canal Gang, the Salt Transport Bureau, and the Salt Merchants were all in the same boat in the past."

After listening to his explanation, Xue Huai gained a clearer understanding of the intricacies involved.

After Liu Ying confessed, he reviewed many files related to the Grand Canal Administration. Because he knew the importance of the grain transport from eight provinces and the Grand Canal to the Great Yan Dynasty, he did not rashly target Jiang Jizhou and Sang Shichang, but only released the ship of prisoners to test their reaction.

However, judging from what Qiao Wangshan said, the forces involved in the Grand Canal Gang were more complex than Xue Huai had anticipated.

This local gang, on the one hand, relied on the protection of the Grand Canal government and honestly made contributions to the imperial court, on the other hand, it extended its reach into various parts of the country, trying every means to seize private wealth, such as collecting protection fees from merchants of all sizes, or smuggling goods to make huge profits, not to mention that they also exploited the poor and ordinary people.

Shen Bingwen spoke up at the opportune moment: "In the past, high-ranking officials of the Salt Transport Bureau and some large salt merchants would find ways to line their own pockets. The Canal Gang would help them launder this money, converting it into land deeds, real estate, and precious jade artifacts, etc. The Canal Gang would collect a certain percentage of commission, which was one of their sources of income."

Two memories immediately flashed through Xue Huai's mind.

One is the large amount of wealth in Xu Guanlan's private residence, which was clearly the work of the Grand Canal Gang.

Secondly, there are the huge sums of charitable donations from Jimintang whose origins are unclear.

This is a complete closed loop, and the role played by the canal gangs is crucial.

Xue Huai had previously investigated the Lianghuai Salt Case, uprooting corrupt officials and lawless powerful families, which greatly reduced the income of the Canal Gang in this area. Later, he severed the connection between Jimintang and Xuanyuan Sect, depriving the Canal Gang of a reliable money laundering channel.

Therefore, even if he hadn't sent the Jing'an Division's official ship north, the canal gang would still have come looking for trouble.

but……

Xue Huai composed himself and looked at Qiao Wangshan, asking, "Elder Qiao, I was in charge of investigating the Lianghuai Salt Case, so why is the Canal Gang targeting your Qiao family directly?"

Qiao Wangshan looked troubled, and Shen Bingwen, seeing this, said with shame, "This matter is actually related to me. If I hadn't strongly recommended Elder Qiao as the first head of the Salt Association, the Qiao family wouldn't have become the first target of the Canal Gang."

After a moment's thought, Xue Huai understood, since he had personally drafted the charter of the Salt Industry Association for mutual assistance and benefit. The so-called mutual assistance and benefit meant that the salt merchants from Lianghuai who joined the Salt Association should try to abandon their past sectarianism and, without affecting their own fundamental interests, stick together and help each other as much as possible. Xue Huai had even specifically told them about the example of the Shanxi merchants.

In addition to being subject to the dual supervision of the Salt Transport Bureau and the Salt Law Enforcement Bureau, the Salt Association must also conduct self-examination and self-correction, especially to standardize its accounts and prevent the use of public funds for private salt profits.

This made it difficult for salt merchants to obtain illicit income, which prevented the grain transport gangs from extracting commissions as before.

Although this portion of income was lost, the overall income of the salt merchants actually increased. This was because the Salt Association brought together the vast majority of salt merchants in Lianghuai. They organized their own fleet of merchant ships and negotiated with external forces. These measures gradually proved effective, reducing many unnecessary expenses and decreasing their dependence on the Grand Canal Gang.

All of this was Xue Huai's plan, and the reason he advocated for the establishment of the Salt Industry Association. He wanted to enable these private merchants to form their own sphere of influence under the comprehensive supervision of the government, so that they would have some ability to resist risks and would not be easily divided, disintegrated, or eroded one by one.

Thinking of this, Xue Huai also apologized, saying, "Elder Qiao, I'm sorry to have troubled you this time."

"You flatter me, Your Excellency."

Qiao Wangshan quickly waved his hand, then said earnestly, "To be honest, when the Salt Association was first established, I never imagined it would have such a good effect, and many of my colleagues thought the same. Even we who are in the system didn't dare to believe in the Director's blueprint, let alone the canal gangs and even the canal transport government. By the time they found it increasingly difficult to extract money from us merchants, the Salt Association had already reached a certain scale, and even if they wanted to sow discord, they wouldn't have a chance to do so."

Xue Huai had anticipated this.

He never believed that people's hearts could always be firmly connected. For the vast majority of businessmen in the world, only profit could make them stick to their bottom line.

From its inception last autumn to its current considerable size, the Salt Industry Association has completed the initial and most difficult pioneering stage without any interference or suppression. Now, its members have deeply appreciated the convenience and benefits the association brings them, so unless they face a life-or-death threat, they will never voluntarily leave or betray it.

The canal authorities and the canal gangs finally realized what was happening, so Jiang Fangzheng and Sang Chengze targeted the Qiao family, launching a campaign by the canal transport forces to suppress the salt merchants of Lianghuai.

"The world is bustling with people, all seeking profit."

Xue Huai succinctly pointed out the crux of the matter.

Qiao Wangshan sighed, “That’s exactly right. The establishment of the Salt Association allows us merchants to gradually break free from the control of the Grand Canal government and the Grand Canal gangs. They can no longer gnaw at our flesh and blood as before. Back then, they could sit at home and receive a steady stream of silver, but now they can only sigh at the sight of silver. Naturally, they won’t give up easily. Your Excellency, Sang Chengze was most likely sent by Sang Shichang this time. Firstly, he came to Yangzhou to scout things out, and secondly, he wanted to find an opportunity to provoke a struggle between the salt merchants of Lianghuai and the Grand Canal gangs. I think we should wait and see how things develop, and not give in to their wishes for the sake of a momentary grievance.”

He didn't say one more thing: how could the Grand Canal Gang dare to act like this without the tacit approval of the Grand Canal Governor?

The emergence of Chiang Fang-cheng is proof of this.

However, there is absolutely no concrete evidence for these matters, and it is currently just a petty squabble among a few juniors. The imperial court cannot ignore the turmoil in the Grand Canal and send people down to thoroughly investigate just because Sang Chengze punched Qiao Wenxuan.

"I admire Mr. Qiao's consideration for the overall situation."

Xue Huai turned to his future father-in-law and calmly asked, "What is your opinion, Uncle?"

Shen Bingwen pondered and said, "The dispute over salt and grain transport lies in profit. Nowadays, salt merchants can no longer use their hard-earned money to support those people, and the likes of Sang Shichang will not be willing to give up that life of taking whatever they want. Of the so-called eight provinces of grain transport, only the Jiangnan region is truly lucrative, and Yangzhou salt merchants are second to none. With such huge profits right in front of them but unable to get their hands on them, the grain transport guild will certainly not give up easily."

Xue Huai nodded and said, "Elder Qiao, what Uncle Shen said is also what I think. Blindly backing down will only embolden the other party."

"Yes, then this old man will follow the arrangements of the Hall Master."

Qiao Wangshan understood this principle perfectly well, but he was worried that Xue Huai would return to the capital in less than two years, and then who would support them, the salt merchants?
Shen Bingwen guessed Qiao Wangshan's thoughts, so he said to Xue Huai, "Nephew, the Canal Gang has always been ruthless. If you decide to fight them, you need to make thorough preparations as soon as possible."

"Yes, this is a very important matter. You two should also inform your reliable colleagues in the association in advance. Also—"

Xue Huai paused for a moment, then calmly said, "We still need to bring Sang Chengze back to see what he's up to."

There was something he kept to himself, mainly because Qiao Wangshan was present. The affairs of the Xuan Yuan Sect were an absolute secret, and he couldn't know about them for the time being.

Xue Huai had a vague feeling that Jiang Fangzheng's appearance was probably not only related to the salt and grain transport dispute.

It remains to be seen how deeply this young master from a wealthy family is connected to the rebel cult.

(End of this chapter)