Rise of a Lonely City: From Exiled Prince to Ruler of the Nine Provinces
Chapter 87 Salt and Iron Monopoly
The production capacity problem for cavalry equipment has not yet been solved, and new troubles have arisen.
Han Lie, holding an account book, came to Xiao Chen with a worried look on his face: "Your Highness, our salt and iron business is in trouble."
"What's the problem?"
"Smuggled salt and smuggled iron."
Han Lie said, "Our salt and iron sell well at fair prices, and people from surrounding prefectures and counties come to buy them. But some unscrupulous merchants buy salt and iron from us and transport them elsewhere to sell at double the price. Even worse, some buy iron from us, take it back, forge it into weapons, and sell them to bandits, outlaws, and even... sell them to the Prince of Yong."
Xiao Chen's eyes turned cold.
Salt and iron are strategic materials. Iron, in particular, can be used to forge weapons and is the lifeblood of the army.
If illegal salt and iron production were allowed to proliferate, it would not only affect Hanyuan's fiscal revenue, but could also potentially aid the enemy.
"Have you found out who did it?"
"It's been investigated."
Han Lie said, "There are mainly three groups of people. One group is the Li family from Dingbeiguan, Li Yong's cousin Li Biao. He uses Li Yong's connections to buy salt and iron from us at low prices and sell them to the Central Plains at high prices."
One group consisted of merchants from Northern Yan, named Tuoba Hong, who was Tuoba Hong's younger brother.
He buys iron from us, forges it into weapons, and sells them to the border troops of Northern Yan.
There was another group, merchants from Jiangnan, named Shen Wansan. He bought salt from us, transported it to Jiangnan, and sold it to Yu Qian's army.
Li Biao, Tuoba Hong, Shen Wansan.
These three men all had powerful backers. Li Biao relied on Li Yong, Tuoba Hong relied on the Northern Yan, and Shen Wansan relied on Yu Qian.
To take action against them is to take action against the forces behind them.
"Your Highness, what should we do?"
Han Lie asked, "If we ban the smuggling of salt and iron, we will offend these three companies. If we don't ban it, our salt and iron business will fall into chaos in the long run. Moreover, if ironware flows out and falls into the hands of the enemy, the consequences will be unimaginable."
Xiao Chen pondered for a moment.
"Salt and iron monopoly".
"Exclusive franchise?"
"right."
Xiao Chen said, "From today onwards, the salt and iron in Hanyuan shall be managed by the government only, and private merchants shall not be allowed to trade them. All salt fields and iron mines shall be taken over by the government."
All salt and iron transactions required the possession of "salt certificates" and "iron certificates," with the government handling unified purchases, sales, pricing, and transportation.
Those who violate this rule will be treated as smugglers, their goods will be confiscated, and they will be executed.
Han Lie gasped.
The salt and iron monopoly will cut off the source of income for many people.
Li Biao, Tuoba Hong, and Shen Wansan will certainly not let this go easily. The forces behind them will also exert pressure.
"Your Highness, isn't this... a bit too strict?"
"We can't afford to be lax."
Xiao Chen said, "Salt and iron are our lifeline; we must control them. Moreover, the profits will be even higher after the monopoly. Before, private merchants resold goods, and we earned wholesale prices. Now, with the monopoly, we earn retail prices. Profits double—why not?"
"But……"
"No buts."
Xiao Chen interrupted him, "Tell Li Biao, Tuoba Hong, and Shen Wansan that from today onwards, their salt and iron certificates are invalid. If they want to continue doing salt and iron business, they can, but they must purchase goods from the government and sell them at the government price. Moreover, they can only sell within the designated area and are not allowed to cross the boundary. Violators will be severely punished."
"Yes……"
"Furthermore," Xiao Chen added, "a 'Salt and Iron Bureau' will be established in Hanyuan City to manage the salt and iron trade. Old Man Han, you will concurrently serve as the head of the Salt and Iron Bureau. Wang Dashan, you will send a troop of soldiers to assist the Salt and Iron Bureau in investigating smuggling. Any smuggling discovered will be dealt with severely."
"yes!"
"Furthermore, 'salt and iron shops' will be set up in the surrounding prefectures and counties, with uniform storefronts and prices. People must buy salt and iron from these shops. Anything sold elsewhere will be considered smuggled salt and iron, and there will be a reward for reporting such activities."
"yes!"
Once the order was given, the entire Cold Abyss sprang into action.
Salt fields and iron mines were all taken over by the government. The original merchants either became government merchants or changed their professions.
Most merchants chose to become government merchants, since the salt and iron business in Hanyuan was too profitable and they couldn't bear to give it up.
Li Biao, Tuoba Hong, and Shen Wansan also sent people to negotiate.
Li Biao sent his son, Li Hu, a spoiled brat who was arrogant and conceited.
"Your Highness, my father said that we've been in the salt and iron business for decades. It's not appropriate for you to just take it all away like that. My uncle, Li Yong, is the garrison commander of Xishan Fort and has rendered meritorious service to you. Even if you don't care about Li Yong, you should at least give him some face, right?"
Xiao Chen glanced at him and said calmly, "Go back and tell your father that the salt and iron monopoly is a national policy. No one's connections can change that. If you want to continue, go to the Salt and Iron Bureau to get salt and iron permits, and follow the rules. If you don't want to do it, change careers. Han Yuan's business isn't just about salt and iron."
Li Hu was rebuffed and left dejectedly.
Tuoba Hong sent a steward who spoke politely, but was actually quite cunning.
"Your Highness, my master is the younger brother of the Left Wise King of Northern Yan. This salt and iron business was approved by the Left Wise King. Isn't it... inappropriate for you to suddenly monopolize it? It will be difficult to explain to the Left Wise King."
"There's nothing difficult to explain."
Xiao Chen said, "Tell Tuoba Hong that the salt and iron monopoly is to ensure the quality of salt and iron and prevent smuggling. If Northern Yan needs salt and iron, it can trade directly with the government at a preferential price and with guaranteed quality. But private merchants are not allowed to resell it."
The butler left in a huff.
Shen Wansan came in person, bringing generous gifts.
"Your Highness, I am the head of the Shen family in Jiangnan. I run a small business to support my family. I understand and support Your Highness's salt and iron monopoly. However, my business is related to the logistics of the 100,000-strong army in Jiangnan. Could Your Highness make an exception? The price is negotiable; I am willing to pay twice the market price."
Shen Wansan was very clever; he didn't mention his background, only his interests.
But Xiao Chen remained unmoved.
"Boss Shen, the salt and iron monopoly is for the greater good. If the army in Jiangnan needs salt and iron, Lord Yu Qian can send someone to trade directly with the government. But private merchants reselling is absolutely forbidden. This is a principle, and there is no room for discussion."
Shen Wansan sighed, knowing that further discussion was pointless, and had no choice but to take his leave.
After the three left, Xiao Chen said to Zhao Tie, "Keep a close eye on these three companies. If they behave themselves and follow the rules, then let it go. But if they dare to pull any tricks, report it to me immediately."
"yes!"
The salt and iron monopoly was implemented for one month and the results were remarkable.
Salt and iron smuggling has been virtually eradicated. The Salt and Iron Bureau's revenue has tripled. Previously, private merchants traded goods, and most of the profits went into their pockets. Now, with the monopoly, all profits go to the government. In just one month, the revenue from salt and iron alone reached 100,000 taels of silver.
With money, many things become easier.
Production of cavalry equipment accelerated. The Manufacturing Department adopted assembly line operations, greatly increasing efficiency, and produced 8,000 sets of equipment in one month, exceeding the target.
The horse ranch had plenty of hay. The hay bought from the grasslands was piled up like mountains. Alfalfa cultivation was also promoted, with the people planting alfalfa and the government buying it up, making everyone happy.
The recruits trained even harder. Xiao Chen had announced that those who excelled in their training would not only be awarded land but also horses. With their own horses, who wouldn't train relentlessly?
The entire Cold Abyss was thriving.
But trouble still came.
Unwilling to accept the loss, Li Biao secretly organized a shipment of smuggled salt, intending to transport it to the Central Plains for sale. However, he was caught red-handed by the Salt and Iron Bureau's inspection team, and the smugglers were apprehended with the stolen goods.
"Your Highness, Li Biao smuggled 500 catties of salt, which is punishable by death according to the law," Han Lie reported.
"Slay." Xiao Chen uttered only one word.
Li Biao was taken to the market south of the city and beheaded in public. His head was hung on the city wall and displayed for three days.
When the news reached Xishan Fort, Li Yong was shocked and rushed to Hanyuan overnight, kneeling before Xiao Chen to beg for mercy.
"Your Highness, my elder brother was momentarily confused and committed a grave error deserving of death. I beg Your Highness to spare his life for my sake. I am willing to offer up all my family's wealth, just to ask for Your Highness's mercy."
Xiao Chen looked at him coldly and said, "Li Yong, you have rendered meritorious service in guarding Xishan Fortress. But your brother's smuggling of salt is illegal. Merit is merit, and demerit is demerit; they cannot offset each other. If everyone were like your brother, able to break the law for merit, what use would the laws of Hanyuan be?"
Li Yong was speechless.
"Go back," Xiao Chen said. "Defend Xishan Fortress well, and don't follow your brother's example. The laws of Hanyuan apply the same to everyone. Even a prince is subject to the law as a commoner."
Li Yong stepped down with tears in his eyes.
Li Biao's death deterred all those who wanted to smuggle goods. From then on, no one dared to challenge Hanyuan's salt and iron monopoly.
Shen Wansan, however, chose to cooperate. He sent people to the Salt and Iron Bureau to obtain salt and iron permits and conduct business according to the rules. Although the profits were less, the business was more stable, the risks were lower, and the steady flow of income was not bad.
Only Tuoba Hong chose to resist.
He secretly contacted the border troops of Northern Yan, intending to smuggle ironware from Northern Yan to Hanyuan, and then resell it in the Central Plains. However, he was discovered by Night Owl and caught red-handed.
"Your Highness, Tuoba Hong smuggled 1,000 catties of ironware, which is punishable by death according to the law," Zhao Tie reported.
"Slay." Xiao Chen uttered only one word.
Tuoba Hong was beheaded, and his head was sent to Northern Yan and given to Tuoba Hong.
Tuoba Hong was furious, but dared not retaliate. This was because Xiao Chen had simultaneously sent a letter stating: "Smuggling ironware is treason and aiding the enemy; it is an unforgivable crime. If Northern Yan needs ironware, we can trade directly at a favorable price. But smuggling is unacceptable. If this happens again, diplomatic relations will be severed."
Severing diplomatic ties.
These two words calmed Tuoba Hong down.
Northern Yan needs the ironware, salt, and coal from Hanyuan. If relations are severed, Northern Yan's losses will be far greater than those of Tuoba Hong.
"This Xiao Chen is quite a character," Tuoba Hong said to Murong Han. "He's impervious to both soft and hard tactics, and only follows the rules. Let's stick to the rules."
From then on, merchants in Northern Yan also began to conduct business honestly and according to the rules.
The salt and iron monopoly was fully implemented.
Han Yuan's finances are now much more abundant.
Xiao Chen also understood a principle.
Governing a country cannot rely solely on benevolence and righteousness; it also requires laws and regulations.
Those who perform meritorious service will be rewarded, and those who commit wrongdoings will be punished.
Even a prince who breaks the law is subject to the same punishment as a commoner.
Only in this way can the country enjoy long-term stability and security.
"Your Highness," Zhao Tie delivered another secret report, "Night Owl has sent word from the capital that Prince Yong... has made his move."
"How did it move?"
"He forged an imperial edict, claiming that the emperor was critically ill and summoned the crown prince to the palace. The crown prince, unaware of the deception, went. As soon as he entered the palace, he was placed under house arrest by Prince Yong. Now, Prince Yong is using the crown prince's 'treason' as a pretext to purge court officials. Ministers who supported the crown prince have been killed, imprisoned, or exiled. The capital has become Prince Yong's domain."
Prince Yong finally tore off his last pretense.
He murdered his father and brother, imprisoned the crown prince, and purged the court officials.
He's gone mad.
Where is Yu Qian?
"Yu Qian has raised an army, claiming to have 200,000 men, but in reality only 50,000. Moreover, his supplies are insufficient, his soldiers are weary of war, and his progress is slow. The Prince of Yong has dispatched an army of 100,000 men, led by his trusted general Cao Bin, to the south to intercept him. The two sides are locked in a stalemate in Xuzhou."
Xuzhou.
That was a strategic point connecting the north and south, a place that military strategists would fight over.
Between Yu Qian and Cao Bin, whoever wins will gain the upper hand.
"Have Night Owl keep an eye on things," Xiao Chen said. "Also, tell Wang Dashan to advance preparations. This time, we must seize the opportunity and take the capital in one fell swoop."
"yes!"
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