The imperial cause at the end of the Han Dynasty was not one of partial peace.

Chapter 88 Liu Bei's Grand Banquet: The Powerful Families of Jingchu and the Grand Business Plan of Jingnan

March, the warm spring month, is the most beautiful time of year in Jiangnan.

Grasses grow tall and birds sing along the banks of the Xiang River, while reeds sprout new green leaves on the shores of Dongting Lake.

Liu Bei, also in high spirits, held a banquet at Yanbo Pavilion, inviting powerful clans and merchants from all directions in Changsha.

When the news spread, not only did prominent families such as the Liu, Kou, Huan, and Wu clans from Changsha itself flock to the area, but wealthy merchants from neighboring Lingling and Guiyang, and even Nanjun in Jiangbei, also came to visit.

For a time, carriages and horses streamed in and out of Yanbo Pavilion, and sails dotted the lake, making it a grand event rarely seen in Jingnan in recent years.

During the Eastern Han Dynasty, powerful clans operated their businesses in the form of manors. These clans had vast fields and numerous guests, and in addition to farming, their manors generally also housed various workshops.

Iron smelting, brocade weaving, lacquerware, pottery, woodworking, winemaking, and much more.

Besides supplying their own tribe, their products were mostly sold to various places in exchange for gold, silk, and grain.

For example, the Kou family's iron smelting, the Wu family's dyeing and weaving, and the Liu family's pottery making were all famous far and wide.

Among the guests attending today's banquet, in addition to the powerful families of Changsha, there were also many prominent families from other places who came specifically to attend.

The most eye-catching among them is the Huang family of Nanjun.

The Huang family was a prominent clan in Zhijiang, Nanjun, renowned for its carpentry skills throughout the Jingchu region. The artifacts made by the clan's craftsmen were exquisite and unparalleled, far surpassing those of ordinary carpenters.

The Huang family members brought several exquisite items with them, and as soon as they entered Yanbo Pavilion, they attracted a crowd of onlookers.

One of the items is a wooden crossbow model, with mulberry wood for the arm, osage orange wood for the mechanism, and ox sinew for the string. The structure is exquisite, and the sight, the sling, the hook, and other parts are all movable, just like a real crossbow.

This is a perfect demonstration of their capabilities; if they can make this model, they can make real powerful bows and crossbows.

The other item was a huge boat, moored on Dongting Lake outside Yanbo Pavilion. It was over ten zhang long, with a wide and thick hull, and was majestic and magnificent.

According to members of the Huang clan, the vessel had four holds, one at the front and one at the back, capable of carrying up to a thousand shi (a unit of dry measure). With favorable winds, it could travel two hundred li (a unit of distance) a day, cleaving through the treacherous waves of the Jingjiang River and the turbulent waters of Dongting Lake.

This attracted powerful figures from all sides to board the ship for a closer inspection, because the imperial court was now levying taxes on merchant ships, with a tax levied on ships over five zhang in length.

Therefore, naturally, the larger the ship, the more goods it can sell, and the higher the profits for merchants.

With this large ship, the transshipment of goods along the Yangtze River will no longer be a problem.

Fish from Dongting Lake, oranges from Lingling, iron from Guiyang, and rice from Changsha can all be transported down the river, reaching Jiangling in the north and Wuhui in the east.

Meanwhile, salt, iron, and silk from the Central Plains could also travel up the river and directly into the heart of Jingnan.

Just as everyone was discussing this, hundreds of armored guards arrived at the foot of Yanbo Pavilion. The armored soldiers quickly lined up on both sides of the passageway, their red banners fluttering, their spears like a forest, and their armor gleaming in the sun.

Zhao Yun, the commander of the imperial guards, stood with his hand on his sword at the foot of the thousand steps of the pavilion, and announced loudly: "Liu, a member of the Han imperial family, the governor of Changsha, the marquis of Guangwu, has arrived—"

Hundreds of guests stood up and craned their necks to look toward the passageway.

They came from afar, not only to discuss business, but more importantly, to catch a glimpse of the world-renowned Liu Xuande.

Legend has it that he was a formidable figure in Hebei, twice defeating an army of a million men, capturing Zhang Liang and beheading Zhang Bao, and quelling the rebellion in Changsha within a month. He also governed the prefecture with benevolence, and his achievements were unparalleled in the land.

Today, we finally get to see each other, and everyone is eagerly waiting.

At the end of the passageway, a high carriage belonging to the prefect arrived at high speed, guarded by more than ten black-armored knights on both sides, with red flags fluttering in the wind, bearing the words "Prefect of Changsha" and "Marquis of Guangwu Pavilion".

Once the carriage had come to a stop, Liu Bei stepped down. He wore a military cap, a crimson brocade robe, a blue sash with a silver seal, and a black cloak. He walked with composure.

Behind him, Zhen Yao, the clan leader of the Zhen clan, Kou Yuan, the clan leader of the Kou clan, and various officials surrounded him. Zhang Fei, with his hand on his long sword, had a leopard-like head and round eyes, a bushy beard, and a halberd, exuding a fierce and imposing aura.

One of the guests exclaimed in a low voice, "This is Liu Bei! Indeed, he possesses extraordinary bearing and heroic spirit; truly a man of great stature!"

"What a formidable army! No wonder this man has repeatedly defeated millions of bandits and is renowned throughout Hebei. With such elite troops at his command, which powerful figure in Changsha would dare disobey?"

Some people had reservations about Liu Bei's reforms, but seeing the strength of his army, they could only swallow their criticisms.

Liu Bei entered the Yanbo Pavilion, and everyone bowed and greeted him, saying, "Greetings, Lord Liu."

He smiled and waved, indicating that everyone didn't need to stand on ceremony.

He then took his seat in the main seat, looked around the pavilion, and said in a gentle tone with a smile, "Please take your seats, everyone. Today's banquet for the distinguished scholars of Jingzhou is not for political matters, but rather to broaden the channels of communication and to listen to your insightful opinions."

After everyone was seated, he picked up his lacquered cup and offered a sip of warm wine to everyone, to show that today was just a casual chat and there was no need to be formal.

Then he slowly said, "Since the founding of the Han Dynasty, it has always implemented a policy of emphasizing agriculture and suppressing commerce. This is not because the court intends to suppress commerce, but because it is out of necessity."

"During the reign of Emperor Xiaoyuan, the remonstrating official Gong Yu once vehemently criticized this problem—the people abandoned agriculture for secondary pursuits, and less than half of them were engaged in farming. Even when the poor were given land, they still sold it cheaply to make a living, and when they were destitute, they became thieves. Why? Because the profits from secondary trades were so great that they were blinded by money."

"The profits of merchants are several times that of farming. If this is not curbed, people will abandon farming for commerce, fields will be abandoned, granaries will be empty, and in years of disaster, there will be corpses everywhere. Therefore, the court has no choice but to repeatedly issue decrees to emphasize agriculture and suppress commerce."

Just when everyone thought Liu Bei was about to reiterate his policy of prioritizing agriculture and suppressing commerce, he changed the subject, saying, "However, governing a prefecture should be tailored to local conditions and cannot be generalized. Changsha has fertile land stretching for thousands of miles, with rice harvested twice a year. Its agricultural development is far superior to that of the arid lands of the north."

"Moreover, the area is crisscrossed by a dense network of waterways, with the Xiang River running through the entire region, connecting Jiangling in the north and Jiaozhou and Guangzhou in the south, making it a natural thoroughfare. Farmers have surplus grain, and merchants have convenient routes—this is Changsha's unique advantage."

"Therefore, I believe that in these peaceful times, after the abundance of agriculture, we should vigorously promote the development of industry and commerce. However, although I have the will to do so, there are no established precedents to follow. The reason I have invited you gentlemen to this banquet today is precisely to hear your insightful opinions. I wonder what you all have to teach me?"

Upon hearing this, Ju Shou was the first to stand up, bowed to Liu Bei, and then looked around at the guests present. He said with great enthusiasm, "Since you have asked this question, I will offer my humble opinion as a starting point. Recently, I have been entrusted by you to investigate the business affairs of Changsha and have gained some insights, which I would like to share with you all."

"When Guan Zhong governed Qi, he divided the people into four classes and made each class live in their own way—scholars, farmers, artisans, and merchants. These four classes are the pillars of the state."

Since Guan Zhong, commerce has been regarded as a legitimate profession in the country. However, since the rise of the Han Dynasty, policies of emphasizing agriculture and suppressing commerce have been repeatedly implemented. The root cause of this policy was not that the court intended to suppress commerce, but rather that it was out of necessity.

"The profits of merchants far surpass those of farmers. If this is not curbed, the people will abandon their primary occupations to pursue these secondary profits. Even if the poor are granted land by the court, they will sell it cheaply to make money, carrying their earnings to the marketplace, never returning to farming. As a result, fields will lie fallow, the number of farmers will decrease daily, granaries will be empty, and in years of famine, the fields will be littered with corpses of the starving. This is precisely what Gong Yu meant when he said that secondary profits are so profound that people are blinded by money."

He then changed the subject and continued, "Since the Prefect entered Changsha, he has not established a land system, but has allowed the free transfer of land. Those who wish to cultivate the land can keep it, and those who do not wish to cultivate it can sell it, so that the land will not be abandoned due to the owners abandoning the farmers."

"Furthermore, the method of taxation based on acreage was implemented, which prevented the wealthy from hiding their land and evading taxes, and allowed the poor to reduce their burden and engage in farming."

"Although there are good laws that can reduce the burden on the people and prevent them from turning into bandits, if they are left to their own devices, and the profits of merchants become too great, the people will still rush to abandon farming for commerce. At that time, the fields will be barren and the granaries will be empty. Even if there are profits from industry and commerce, they will be like a rootless duckweed."

At this moment, Ju Shou turned to Liu Bei and bowed respectfully, saying solemnly, "Therefore, I have discussed with you, my lord, the method for promoting industry and commerce, as you have suggested, should begin with consolidating the foundation of agriculture. Changsha must maintain 100,000 hectares of arable land, and the newly reclaimed land each year must not be less than 800 hectares. Only on this foundation can we greatly promote industry and commerce."

"Otherwise, with arable land decreasing daily and food becoming increasingly scarce, even if industry and commerce flourish for a time, they will eventually collapse due to soaring food prices and widespread poverty. As Guanzi said, 'When granaries are full, people know etiquette; when food and clothing are sufficient, people know honor and shame.' The prosperity of industry and commerce must be based on the stability of agriculture."

Upon hearing this, Liu Bei clapped his hands and laughed. This was exactly the idea he had discussed with Ju Shou and Mi Zhu earlier.

He only put forward a general idea at the time: first, farmland must not be abandoned, and the red line of ten mu of arable land per person must be guaranteed.

At its peak, Changsha had a population of one million, so it was required that no matter how prosperous the Changsha prefecture was in industry and commerce, it must have 100,000 hectares of registered land!

This is the bottom line, and it cannot be shaken under any circumstances. Whether a feudal dynasty could guarantee that each person had ten mu of land was the dividing line between the rise and fall of the dynasty.

If we can increase the amount of land cultivated and make agriculture flourish, that would be the best outcome.

He only mentioned it casually at the time, but he never expected that Ju Shou would actually adapt it to local conditions and improve it into a national policy that suited the situation in Changsha.

Therefore, Liu Bei exclaimed with admiration, "You truly possess the talent of a king's advisor! What you have said is exactly what I have been thinking!"

"Our intention to vigorously develop industry and commerce is by no means to abandon agriculture and sericulture; rather, it is to use the profits from industry and commerce to support agriculture. This is what is meant by promoting agriculture through industry and enriching farmers through commerce."

"If agriculture is unstable, then industry and commerce will both decline; if industry and commerce do not flourish, then agricultural tools will be lacking and trade will be hindered. Even if the people have vast fertile fields, they will find it difficult to become wealthy. As the *Discourses on Salt and Iron* states: 'If industry does not produce, then agriculture will lack resources.' This is precisely the principle."

Upon hearing this, the powerful figures present began to whisper amongst themselves.

The Huang family of Nanjun were the first to rise, cupping their hands in greeting, and said, "Since Your Excellency possesses such foresight and wisdom, we, a prominent family and wealthy merchants, dare not shirk our duty. The Huang family is willing to offer our skills in waterwheel construction to aid irrigation in Changsha, ensuring that cultivated land increases year after year, and living up to Your Excellency's high expectations!"

Everyone echoed their agreement, and the atmosphere in the pavilion became even more lively.

With Ju Shou and Huang Shi's brilliant ideas preceding them, everyone eagerly offered their suggestions and discussed the methods of commerce and industry they desired.

Zhen Yao was the first to stand up, bowed to Liu Bei, nodded slightly to Ju Shou, and then said enthusiastically, "What you and the gentleman say is indeed true. Agriculture is the foundation of industry and commerce, and industry and commerce are the supplement to agriculture. Only by complementing each other can we achieve long-term stability and security."

"However, Yao believed that in order to promote industry and commerce, in addition to consolidating the foundation of agriculture, there was another matter that could not be overlooked: the profits from salt and iron, which were the great treasures of the country and should not be lightly entrusted to private individuals."

The *Discourses on Salt and Iron* states: "The profits from salt and iron are meant to alleviate the people's urgent needs, cover military expenses, and be stored up to prepare for times of scarcity." Emperor Wu of Han established state monopolies on salt and iron not to compete with the people for profit, but to use the resources of the empire to address the nation's urgent needs. The campaigns to drive out the Xiongnu in the north and pacify the Baiyue in the south incurred enormous military expenses; without the profits from salt and iron, how could these be sustained?

"However, since the restoration of the Ming Dynasty under Emperor Guangwu, the prohibition on salt and iron has been gradually relaxed. Powerful families have been able to control the profits from the mountains and seas, mining iron and stone for casting, and boiling seawater for salt. Some families have gathered more than a thousand people, making huge profits without paying taxes, while the poor suffer and gain nothing."

"Although Yao was young, he personally witnessed local powerful figures privately casting ironware and privately boiling salt, making huge profits, while the government treasury was empty and the military supplies were scarce."

He glanced at Kou Yuan and the Huang family of Nanjun present and continued, "Therefore, Yao believed that if the Prefect wanted to greatly promote industry and commerce, he should prioritize salt and iron. If the profits from salt and iron could be brought under the jurisdiction of the prefecture and the government could unify smelting, boiling, drying, and sales, then the benefits would not lie with the powerful and wealthy, but with the common people."

"The money earned from salt trading can be used to buy cattle, horses, and seedlings, which can then be loaned to poor farmers. With cattle and horses, the people can cultivate more wasteland, and as the fields are cultivated daily, the granaries will be fuller. This is how the salt and iron are taken and used for agriculture and sericulture."

Upon hearing this, Kou Yuan frowned slightly, but did not rush to refute.

Liu Bei nodded slightly; he didn't seem to have any particular objection to national patents.

After all, this has been the case since ancient times; until before he traveled through time, some industries were monopolized by the state.

At the end of the Han Dynasty, it was Wei Kai who suggested to Cao Cao that salt be nationalized again, and that its direct market value be used to supply the displaced people. Only then was Guanzhong revived, and Luoyang became prosperous again and became the capital.

The reason Zhen Yao proposed the salt and iron monopoly was that the Zhen family had their eyes on the huge profits involved.

Without a doubt, if Liu Bei really wanted to monopolize the salt and iron industry, then Zhen Yao and his wife would be the ones running the salt fields.

Once Liu Bei has Jingzhou under his control, even without needing to control the entire country, Zhen's wealth from salt and iron will allow her to far surpass what she had in Zhongshan within a few years.

At that time, Zhen's investment of ten thousand gold coins in Liu Bei will be able to be returned tenfold or a hundredfold.

The reason why Kou Yuan has not yet acted is the same. If salt and iron are brought under state control, it is very likely that the Kou family will be in charge of the Changsha ironworks, which would be a monopoly with exorbitant profits.

However, this was completely different from Liu Bei's plan for the Zhen family. If the salt and iron monopoly was to be implemented, then there would be no need for a top-tier business family like the Zhen family.

Liu Bei could easily advance the cause by simply finding any official.

Moreover, Emperor Guangwu's relaxation of restrictions on iron smelting did indeed lead to a significant development of the iron smelting industry in the Central Plains.

Liu Bei did not want to restrict private smelting through a monopoly.

After a moment of contemplation, Liu Bei slowly spoke: "What Yao said is indeed a profound statement. Salt is a great treasure of the nation. Since the chaos, it has been distributed in large quantities. We should, as before, appoint envoys to supervise its sale, so that its value can be used to supply cattle in the market. If there are any returning people, we should provide for them. We should diligently cultivate and accumulate salt to enrich the land of Jingchu. When people from afar hear of this, they will surely flock here day and night."

"Attracting refugees and reclaiming wasteland in this way will surely result in outstanding political achievements."

He then glanced at everyone present, who all watched him nervously, fearing that he would prohibit the benefits of iron smelting.

Liu Bei resolutely said, "However, the matter of iron smelting is different from that of salt production. Salt comes from the sea and is made by boiling. When the government operates it, the profits go to the treasury, which is convenient for both the public and private sectors. Iron is different. Farmers need plowshares, hoes, and sickles to till the fields; craftsmen need hammers, chisels, saws, and drills to make tools; even ordinary people cannot do without kitchen knives, cooking pots, scissors, and door knockers."

"If all the profits from iron smelting are taken over by the government, then farmers will have to go to the government market and back and forth to the iron official to buy a hoe or an iron pot. Not only will the price be high, but there is also a risk that the supply will not meet the demand, which will delay the farming season and cause hardship for the people."

"Since the restoration of the Han dynasty under Emperor Guangwu, the prohibition on salt and iron has gradually loosened, and private ironworks have sprung up everywhere. Over the course of more than a hundred years, in Changsha alone, there were no fewer than dozens of ironworks, and the profits from ironware spread throughout the countryside. People no longer needed to travel to the official market to buy plows and hoes; they could simply purchase them from the estates of nearby wealthy landowners. Although the prices were not cheap, the convenience was undeniable. If these workshops were suddenly taken over by the government, they would be shut down overnight. Where would the people buy iron? Without agricultural tools, how could land reclamation be carried out?"

Upon hearing this, Kou Yuan's tense body finally relaxed, and he cupped his hands, saying, "Your Excellency is wise. Although the Kou family's iron smelting is a private business, it supplies more than half of the agricultural tools in Changsha. If the government monopolizes it, the Kou family's thousands of craftsmen will have no way to make a living, and the people of Changsha will have no plows to cultivate."

Liu Bei nodded, making the final decision: "Therefore, I believe that the salt and iron affairs should be handled separately. Salt is a great treasure of the country, and from this day forward, it shall be under the exclusive control of the prefectures and counties. Salt officials shall be appointed in Changsha, and all profits shall be used to purchase cattle and lend money to displaced people."

"Iron is essential to agriculture, and its production should not be state-run. Private smelting and casting are permitted, but two prohibitions apply: First, the private casting of iron armor is strictly forbidden."

Those who possess spearheads, crossbows, or other military weapons will be punished for treason.

"Secondly, iron smelting workshops must register with the Jin Cao of the prefectural government, and the ironware they produce must not be hoarded for speculation."

"The two can be carried out in parallel, so as not to harm the interests of the powerful and wealthy, not to hinder the needs of the people, and not to allow weapons to be scattered outside."

Upon hearing this, the powerful figures present all showed joy on their faces; some clapped and laughed, while others breathed a sigh of relief.

The tense atmosphere in the pavilion immediately eased, and everyone's face showed a long-lost sense of relaxation and excitement.

The Huang family of Nanjun were the first to stand up, cupped their hands and said, "Your Excellency has made a wise decision! The salt and iron policy not only collects the profits from salt for the government but also does not take away the profits from iron from the people, which can be described as the best of both worlds."

"Although the Huang family's livelihood is carpentry and shipbuilding, they also own hundreds of acres of mulberry fields and dozens of looms. They know that if government monopolies were extended to all trades, it would inevitably lead to the people's suffering. Now, Your Excellency only collects profits from salt production, leaving everything else to the people's discretion. This is truly benevolent governance!"

Kou Yuan also stood up, bowed deeply to Liu Bei, and said with a smile, "Your Excellency's policies today have brought joy to the entire clan of the prefecture."

"Since the Prefect entered Changsha last year, he has abolished the village head, dismissed the township officials, and investigated hidden land. All the powerful families in Changsha are terrified, thinking that the Prefect regards us powerful families as enemies."

"Now it seems that we were judging others by our own petty standards."

The powerful figures present nodded in agreement upon hearing this.

Since last year, powerful clans in Changsha have frequently opposed Liu Bei's new policies, and some have even secretly made contact, intending to raise an army to resist.

But seeing Liu Bei's open and honest attitude today, and hearing his tolerant attitude towards the benefits of iron smelting, his original hostility has largely dissipated.

Some whispered among themselves, "Who said Liu Bei was a cruel official, hostile to powerful families, and determined to destroy our homes? Looking at him today, though his policies were strict, his heart was truly lenient. Regarding the salt and iron profits, he only collected salt, not iron; regarding commerce and industry, he allowed private operation without depriving the people of their profits—how could someone who is hostile to powerful families do such things?"

"Indeed! The *Biographies of Cruel Officials* says, 'Just as hawks chase away sparrows, so too do cruel officials govern the powerful and cunning.' Liu Bei governed the prefecture with an iron fist, investigating hidden lands, abolishing outposts, and confiscating villages. We originally thought he was a hawk-like official, regarding the powerful and cunning as mere rats and sparrows. But now we see that the Prefect is not a hawk, but a phoenix. Hawks chase away sparrows to devour them, while the phoenix perches on the parasol tree for its peace."

Liu Bei smiled wryly; he naturally couldn't completely force the powerful clans to the other side.

The Eastern Han Dynasty had fully developed a manor system economy, and if it wanted to unify the country, it would have to win over powerful clans.

Moreover, to be fair, the manor economy is indeed a representative of advanced productive forces, both now and for the next thousand years.

Liu Bei still needed to rely on them to develop the country, consolidate its foundation, and revitalize commerce and industry.

Liu Bei couldn't possibly destroy all the manors and lead the entire nation back to the well-field system, into poverty and famine.

Amidst the discussion, Mi Zhu rose, bowed respectfully to the assembled powerful figures, and declared loudly, "What you all say is precisely what the Prefect intends. The powerful clans are the pillars of Changsha. If the Prefect wishes to revitalize industry and commerce, how can he sever these pillars?"

"Each of you possesses a family tradition of skill and a generation of business—the Kou family's iron smelting, the Wu family's dyeing and weaving, the Liu family's pottery making, and the Huang family's shipbuilding—these are all treasures of Changsha. The regulations that Your Excellency has set forth today are merely to regulate commerce and industry, not to deprive the powerful and wealthy. As long as you operate in accordance with the law, Your Excellency will surely protect and safeguard you."

Liu Bei clapped his hands and laughed, raised his wine cup high to the assembled crowd, and said with great emotion, "What Mi Zizhong said is exactly what I think. In the past, during the reign of Emperor Wu of Han, Ji An was the governor of Huaiyang. He governed the prefecture while lying down, and the prefecture was peaceful and quiet. Yi Zong was the governor of Dingxiang. He used strict laws and severe punishments, and the prefecture was terrified. Both were able to govern their prefectures, but their methods of governance were different. Although I am not talented, I wish to emulate Ji An's leniency, rather than Yi Zong's cruelty."

He downed the wine in one gulp, his gaze sweeping over everyone present like lightning, and declared in a resounding voice: "Today's meeting is not only to broaden the channels of communication, but also to establish agreements with you all. The regulations on salt and iron, and the laws governing industry and commerce, which are established today, will all be written into law and promulgated throughout the prefecture."

"From now on, Changsha's industry and commerce will have laws to follow and regulations to abide by. If you operate in accordance with the law, I will protect your interests; if any official takes advantage of the situation to embezzle merchants' property, I will punish them severely without leniency."

The powerful figures present all rose to their feet and raised their glasses in response.

The spring rain had just stopped outside the pavilion, and the lake was shrouded in mist, presenting a vibrant scene.

For the powerful clans of Changsha, this new law can be described as opening a new chapter.

From then on, they were no longer "cunning and treacherous people" who lived in constant fear and were afraid of government suppression, but "business families" with legal status and protected by the prefectural government.

As for those powerful figures who were eager to rise up and resist last year, they have now completely given up the idea of ​​taking such a risk.

Rather than rebelling and dying or having their clan wiped out, why not go with the flow and get a share of the benefits of this new policy?

Then, Mi Zhu calmly rose and took dozens of volumes of transcribed regulations from his attendant, instructing his servants to distribute them to everyone present.

The group unfolded the silk scroll, which contained several articles of the "Changsha Industrial and Commercial Tax Law Regulations" written in neat clerical script. The articles were clear and the text was concise. Each article marked the tax rate, the method of collection, and the prohibited items.

After everyone had quickly read through it, Mi Zhu announced in a loud voice: "What you gentlemen hold in your hands is the 'Changsha Industrial and Commercial Tax Law Regulations' personally drafted by the Prefect."

"This charter was drafted by Mr. Zhu Yugong and Mr. Zhu Yugong after several months of visiting the east and west markets of Linxiang and various wharves and ferry crossings along the Xiang River, taking into account the Han Dynasty's equal distribution of salt and the current salt monopoly system, and after repeated discussions. Today, the Prefect is hosting a banquet to take this opportunity to explain the new law to you all, so that merchants from all directions may know about the administration of Changsha."

He unfolded the silk scroll in his hand and read it aloud item by item: "First, the tax on traveling merchants. All merchants who trade goods within the territory of Changsha, whether stationary or traveling, shall be taxed based on the value of the goods, with a tax of 20%. The market offices are located in the East and West Markets and the Xiangjiang River Wharf. All those who enter the market to trade must register the value of their goods at the market office, and the market officials will verify the registration and levy the tax according to the rate."

"Upon verification, a tax permit will be issued, which allows passage throughout the prefecture without further taxation. If anyone dares to block the road, set up a checkpoint, or levy taxes repeatedly, the merchant may present the tax permit to the prefectural government. Once verified, the offender will be severely punished."

This first point delighted all the powerful families: it was the removal of tariffs!

In the past, when trading goods, there were checkpoints in every county and township, with taxes levied at each level. After a trade route, the taxes collected were often three or four tenths.

Now that the entire county has a unified tax system, the problem of double taxation has been eliminated, trade routes are open, and profits have naturally increased.

The policy of taking two out of a hundred was an old system of the Han Dynasty, which can be described as a benevolent policy, and it was indeed in line with Liu Bei's reputation for benevolence and righteousness!

Mi Zhu continued, "Secondly, there is the tax on merchants who stay at home. All workshops, shops, and residences that open within the territory of Changsha shall pay market rent annually according to the size of their market space, divided into three categories: superior, medium, and inferior. Superior shops shall pay 10,000 coins per year, medium shops shall pay 5,000 coins per year, and inferior shops shall pay 2,000 coins per year."

"Workshops are also divided into three classes: large workshops such as iron smelting, brocade weaving, and shipbuilding pay 10,000 coins per year; medium-sized workshops pay 5,000 coins per year."

Small workshops pay two thousand coins a year. Each workshop must register the number of artisans and the goods produced with the Jin Cao (Imperial Registry), which will then verify the information and issue a work register.

Those with work registration status can enjoy preferential treatment such as tax reduction or exemption.

The tax on merchants was categorized by grade and fixed amount, which was concise and to the point. There was no need for cumbersome estimations and investigations, nor was there any need to worry about market officials arbitrarily increasing the tax.

The provision that "those with work registration can enjoy preferential treatment such as tax reduction or exemption" is particularly advantageous to powerful families.

This means that they can not only open large workshops with their abundant wealth, but also allow their clan guests to be exempt from corvée labor and concentrate on production.

This was also one of Liu Bei's most important policies in emphasizing industry. In the past, only those with outstanding virtue or those who were learned scholars could be exempted from some taxes and corvée labor.

Nowadays, even the labor registration system has such reductions! The annual tax is 120 coins, and the labor registration system can reduce it by 30 to 60 coins. In fact, those artisans with extremely exquisite craftsmanship and superb skills can have it completely reduced!

This was Liu Bei's deliberate bias; compared to merchants, he preferred commoners to work as laborers.

After all, workers and peasants have power.

Workers are the true representatives of advanced productivity.

Nowadays, scholars, farmers, and artisans all receive tax reductions, but merchants do not.

This can be seen as a manifestation of prioritizing agriculture over commerce.

Mi Zhu then read out several more articles, including that merchant ships over five zhang in length should pay an annual tax, the same as the old system of the imperial court.

Boats smaller than five zhang (approximately 10 meters) are exempt from taxes to facilitate fishing for the people.

It was further stipulated that all merchants from outside Changsha who brought goods into the city would only be subject to a commercial tax once upon arrival, and would not be subject to a tax again upon leaving the prefecture.

After Mi Zhu finished reading the entire charter, the powerful figures present had already made their plans.

According to this new law, the taxes paid annually by their workshops, shops, and merchant ships are significantly reduced compared to the previous system of layers of government exploitation.

The key point is that these taxes did not go into the pockets of corrupt officials, but into the treasury of the prefecture and county governments, so that they could be taken from the people and used for the people.

With the tax law now made public, there are laws to follow and regulations to abide by. The practices of county officials and local clerks arbitrarily increasing taxes and creating difficulties will be greatly curbed under the new law.

This is a relatively obscure piece of knowledge, perhaps unknown even to ordinary people of that time: under the feudal system, merchants devoted 80% of their energy to dealing with government officials. The actual buying and selling transactions were, in fact, insignificant details.

Mi Zhu put away the silk scroll, bowed to the crowd again, and said with deep feeling, "The Guanzi says: 'The market reveals order and chaos, abundance and scarcity.' The rise and fall of Changsha's commerce and industry depends on you gentlemen, and also on the law."

"Now that the new law has been established and the regulations are clear, as long as you operate legally and pay taxes in accordance with the regulations within the territory of Changsha, the prefecture will ensure that you do not commit any offenses and that no one suffers injustice due to the embezzlement of officials."

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