Chapter 124: Borrowing Grain

Li Banghua's influence among the local literati was astonishing.

Once he declared his own position, many xiucai and child students who had been unwilling to follow the rebels also stepped forward one after another to join him.

In any case, Li Banghua's reputation was huge — if the sky fell, he would be the one holding it up!

In just a few days, the grain-bank team was fully formed, with Li Banghua and the local literati as its core. Fei Chun, of course, participated throughout, mainly to observe and learn while also overseeing the accounts.

Entrusting such an important matter to a group of local literati was truly a helpless move born of a shortage of talent.

Once Zhao Han had trained his own people, then the time would come to unleash a great slaughter. Exactly how many would be killed depended entirely on Li Banghua's restraining power — on how many had the gall of a bear and the nerve of a leopard to act recklessly.

"Ah, welcome, welcome! Mr. Meng'an, your honored presence truly makes my humble dwelling shine with brilliance." Xiao Wanquan greeted him with a booming laugh.

Li Banghua clasped his fists. "Friend Xiao overpraises me. I am merely a decrepit old man."

"Not at all, not at all. Mr. Meng'an, please, come in quickly." Xiao Wanquan beamed.

Compared to before, Xiao Wanquan's home was very quiet, with only a few maids and old serving women left. Not only had all their contracts been converted to employment contracts, but their wages had to be raised as well, because what they had been paid before was simply too low.

After a few pleasantries, Li Banghua stated the purpose of his visit.

Xiao Wanquan asked, "May I ask, if one deposits grain in this grain bank, what is the annual interest rate?"

"Ten percent," Li Banghua said.

"Only ten percent?" Xiao Wanquan was rather disappointed. In the past, when he lent grain to his tenant farmers, the interest compounded and multiplied in all sorts of ways.

Li Banghua said, "Having any interest at all is already quite good. The grain bank stores the grain for you, and it hasn't even charged a storage fee for all the various losses and wastage."

"True, true," Xiao Wanquan said, then asked again, "And if the grain bank lends grain to tenant farmers, what is the interest rate?"

Li Banghua smiled. "Twelve percent."

Xiao Wanquan was astonished. "Wouldn't the grain bank be operating at a loss?"

Li Banghua said, "Regional Commander Zhao established this grain bank not to make money, but solely to leave a path of survival for the common folk who measure their grain by the sheng and dou."

"Mr. Zhao is righteous, it's just…" Xiao Wanquan's expression showed hesitation.

Li Banghua rose and cupped his hands. "Since Friend Xiao finds it difficult, then I shall trouble you no further. Farewell!"

Xiao Wanquan shot to his feet and said hastily, "No difficulty, no difficulty at all."

"Friend Xiao is indeed a wise man." A faint smile appeared on Li Banghua's face.

Xiao Wanquan had been overthinking things. He knew Zhao Han was short on grain and feared that if Zhao Han was pushed too far, he would simply come and kill people to seize the grain.

A rebel who abides by rules is still, in the final analysis, a rebel!

The more indifferent Li Banghua appeared, the more afraid Xiao Wanquan grew in his heart, terrified that this was a ploy to lure the snake out of its hole so they could make an example of him.

Xiao Wanquan was willing to lend grain purely because Zhao Han held the hilt of the blade.

And having Li Banghua personally make the visit was simply to put the landlords at ease — this grain would not be borrowed with no hope of return. Old Li still had considerable credibility value.

Li Banghua visited several villages in succession, and the majority were willing to lend grain.

Then, Old Li's outrageous maneuver came…

Since the grain bank did not have enough warehouses, the grain would temporarily remain unmoved in the landlords' homes.

Whenever the common folk of a town were short on grain, the town's Revenue Section would step forward and contact grain-bank personnel to go together to the landlord's home. However much needed to be borrowed, that amount would be taken from the landlord's house. Starting from the day of borrowing, a grain-deposit certificate would be issued to the landlord, and at the same time a grain-loan certificate would be issued to the peasants.

The grain bank was essentially making something out of nothing — it had no warehouses, contributing only its staff, and simply passed the grain from the left hand to the right, effortlessly earning the two-percent interest-rate spread.

But this middleman was extremely important.

If the landlords lent grain directly, how could the annual interest possibly be only twelve percent? Three percent monthly interest was considered a benevolent price; five percent or even seven percent monthly interest was entirely possible!

Why, in the late Ming, did every village and town have money-and-grain shops?

First, to engage in usury.

Second, to exchange silver for the peasants. The Single Whip Law required payment only in silver, and enormous profits could be made from this.

Of course, the Single Whip Law was not strictly enforced. In many places, miscellaneous levies were still collected directly in grain from the peasants. This was also one of the important means by which clerks profited.

With Li Banghua pulling this move, the landlords gnashed their teeth in hatred. From now on, they could forget about practicing usury.

"Brother, this Mr. Li is truly brilliant," Fei Chun said jubilantly. "I was still racking my brains over where to find warehouses to store the grain. Ha, the moment Mr. Li stepped in, the grain is stored right in the landlords' own homes. First, we don't need so many hands; second, there's no grain storage loss; third, we also save a great deal on the interest for stored grain."

Li Banghua had reorganized the Tianjin New Army, and then reorganized the capital garrison troops. Although he had offended countless powerful figures, he had brought all the various forces firmly into line.

What were a few country landlords by comparison?

It was simply using a butcher's cleaver to kill a chicken.

"Mr. Li is indeed resourceful," Zhao Han said in praise, then immediately added, "However, this is only a stopgap measure. When we have a free hand later, we must still build our own grain warehouses and money treasuries. Otherwise, the landlords' resentment will deepen by the day, and we ourselves will have neither money nor grain in hand."

Fei Chun sighed with emotion. "Just having a stopgap measure is already good enough. A few days ago, I was nearly worried to death!"

Zhao Han took out several letters and said, "It is precisely a time when we need every capable person, and I originally did not want to send you away. But if I send someone else to handle this, I cannot be at ease. This letter is to be delivered to Mr. Li's family in Jishui. Take the other letters back to Yanshan and, on my behalf, accompany Ruhe on a visit home."

"That would be wonderful." Fei Chun was also somewhat missing his parents.

Fei Chun took a few attendants and set off by boat straight for Jishui.

Fei Ruhe and Huang Yao also set off by boat with their troops, one heading south and the other north to borrow grain from the government offices.

To facilitate dealings with the county magistrates, Zuo Xiaoliang accompanied the group to Taihe County, and Xiao Huan accompanied the group to Anfu County.

……

The magistrate of Taihe was named Liu Taiyuan, a third-rank jinshi of the fourth year of Chongzhen.

This official post had not been purchased; it was a proper appointment by the imperial court, so there was no need to rush to repay a loan taken to buy the office.

On the whole, Liu Taiyuan's official reputation was not bad. He merely engaged in a bit of convenient embezzlement and did not ruthlessly fleece the common people under his jurisdiction.

Who could have known that rebels would arise in Luling County, and that the Governor would go to suppress them, forcing the rebels south of the He River to turn into roving bandits, who then surged en masse into Taihe County to plunder?

These fellows killed landlords, seized the landlords' great mansions, robbed money and grain, and then refused to leave, showing signs of turning into entrenched bandits.

"Your Honor, the gentry and village elders have jointly petitioned to recruit local militia to suppress the bandits," said Assistant Magistrate Zhang Huainan.

As a novice county magistrate, Liu Taiyuan had not even hired a private secretary. He cried out in distress, "Governor Xie went to suppress the bandits and ended up defeated and dead himself. How could I possibly suppress these bandits? Let us wait until the new Governor arrives and then discuss it."

Zhang Huainan reminded him, "Your Honor, as long as we have money and grain, the bandits can be suppressed."

Liu Taiyuan asked in alarm, "Could it be that Brother Zhang is a man versed in military affairs?"

Zhang Huainan felt utterly weary at heart. A novice county magistrate lacked experience, so he had to spell things out clearly: "Your Honour, the tax grain can be collected first, and the local militia can be drilled first. As for suppressing the bandits, you can bide your time and strike when the moment is right. If by chance the new Governor is also capable of suppressing bandits, Your Honour will have made preparations early and may even earn the Governor's esteem."

Liu Taiyuan froze for a moment, then suddenly saw the light. "So that's how it is. Many thanks for the warning, Brother Zhang!"

Ten years of bitter study by a cold window, and once made county magistrate, he now faced rebel bandits stirring up trouble for the first time — he truly needed to build up experience.

Experience at raking in money!

"Your Honour, terrible news — the rebel bandits are attacking!" An old clerk came running in panic to report.

Liu Taiyuan trembled all over in fright and hastily asked, "Have the rebel bandits reached outside the city walls?"

The old clerk answered, "They came by boat. They're still soaking out on the Gan River, and they've sent a bandit official to demand the city's surrender."

Liu Taiyuan hurried to the gate tower. Sure enough, there was only a lone scholar outside the city, and just one rebel boat on the river.

"Haul him up!" Liu Taiyuan ordered.

Zuo Xiaoliang ascended the wall seated in a basket. He clasped his hands and bowed, saying, "This late-born student Zuo Xiaoliang pays his respects to Your Honour."

Liu Taiyuan clasped his hands in return. "You, sir, are also a man of learning?"

Zuo Xiaoliang had few family members left and had simply used his real name when he turned bandit. He said, "To my shame, this late-born student is merely a xiucai."

Liu Taiyuan said with pained dismay, "Since you are a xiucai, why have you joined the bandits?"

Zuo Xiaoliang said, "I couldn't get enough to eat."

"Uh…" Liu Taiyuan did not know how to continue. That reason for joining the bandits was far too absurd, and yet at the same time far too brazenly matter-of-fact.

Assistant Magistrate Zhang Huainan suddenly asked, "Since you are rebel bandits, who is your leader? And what have you been sent to Taihe County to do?"

"My master is Zhao Yan," Zuo Xiaoliang said.

"The rebel Zhao?"

The county officials turned pale with shock.

That was the monstrous bandit who had seized the prefectural seat, killed dozens of officials, and even brought about the Governor's defeat and death!

Liu Taiyuan felt his throat go dry. He swallowed and asked, "The rebel Zhao… what has Zhao Yan sent you here to do?"

Zuo Xiaoliang clasped his hands and said, "My master has heard that there are refugees in Taihe County. With the weather now so bitterly cold, he cannot bear to see them freeze or starve to death, and therefore wishes to take these refugees away and resettle them."

Liu Taiyuan and Zhang Huainan exchanged a glance, both utterly baffled.

There were rebel bandits this considerate?

Liu Taiyuan could not help asking, "Are those words true?"

"True," Zuo Xiaoliang said. "Only, my master is short of grain. In order to settle the refugees, he requests that Your Honour lend us two hundred thousand shi of grain."

"Where would I get two hundred thousand shi to lend you?" Liu Taiyuan was like a cat whose tail had been stepped on.

Zuo Xiaoliang smiled. "It's a matter of doing business — ask the heavens for a price, then settle on the ground."

Not only was Liu Taiyuan infuriated, even Zhang Huainan found it utterly preposterous.

Zhang Huainan had started out as a xiucai, served as a private secretary for many years, and through his patron's connections had bought an official post at a discount, finally managing to secure the position of Assistant Magistrate. He had travelled far and wide and seen much of the world, yet this was the first time he had encountered such a bizarre affair — rebel bandits short of grain actually coming to borrow from the county magistrate, and the amount to be borrowed was even negotiable.

But it seemed this deal could actually be done!

Zhang Huainan said in a low voice, "Your Honour, there are too many eyes and ears here. Let us go to the county yamen and discuss it at leisure."

"Very well." Liu Taiyuan was still in a daze.

And so, the rebel bandit Zuo Xiaoliang became an honoured guest of the county magistrate.

After a round of haggling between the two sides, Liu Taiyuan was only willing to lend thirty thousand shi of grain, and even that would only be paid after Zuo Xiaoliang had led the refugee bandits away.

In the end, the deal was struck at fifty thousand shi, with an advance payment of five thousand shi!

The county magistrate naturally could not provide the grain himself; it all had to come from the gentry and landlords.

First, word was spread that the refugee bandits in the county were short of grain and might at any moment loot other major clans again.

Immediately after, Fei Ruhe travelled by night and hid by day, leading five hundred troops to kill landlords and seize grain. The target had even been provided by the Assistant Magistrate — the sort of local rich man whose death would bring no troublesome consequences.

After two landlords were looted in succession, the other landlords were scared out of their wits.

Liu Taiyuan promptly summoned the local gentry for a meeting, saying that he could use grain to persuade those refugee bandits to turn back. If the gentry could just scrape together five thousand shi, the refugee bandits could be sent to the border of Taihe County. Then, once the full fifty thousand shi was gathered, the refugee bandits could be made to return home and farm.

The local gentry could only give it a try. Five thousand shi was not much anyway; each family contributing a little would easily make up the amount.

Fei Ruhe took the advance payment and immediately went to the refugee bandits' territory to recruit people.

Upon hearing that "Mr. Zhao" was going to oversee land distribution, ordinary refugee bandits deserted their camps in droves. The several bandit chieftains could not stop them no matter how hard they tried.

In just a few short days, Fei Ruhe recruited over eight thousand people. Only a little over three hundred diehard bandits remained obstinate and unrepentant.

Fei Ruhe immediately launched an attack, killing those who refused to fall in line, and conveniently seized twenty thousand shi of bandit grain. Over eight thousand refugees helped transport the grain, slowly making their way north. They halted at the border between Taihe County and Luling County, waiting for the county magistrate to deliver the final payment.

During the wait, another two thousand or so common folk, bringing their entire families, came to join them.

What was more, all of them were local tenant farmers from Taihe County. Having heard that "Mr. Zhao" next door was going to distribute land, they called their friends and family, packed up their belongings, and came.

They continued waiting for several more days, but still saw no sign of the final payment.

Fei Ruhe flew into a rage, killed two more landlords and seized their grain, and threatened that if the grain was not delivered, he would slaughter every landlord in Taihe County. He then led his troops on a stroll outside the county seat, circling the city walls several times.

The county magistrate was shocked and furious; the gentry were terrified.

Another half-month passed. The final payment was delivered, and the transaction was complete.

On this single expedition, although the gentry had only scraped together fifty thousand shi of grain, Fei Ruhe brought back a full one hundred and ten thousand shi — the surplus all came from looting landlords and bandits.

Incidentally, he also brought back over eleven thousand people.

The grain problem, it turned out, was really quite easy to solve.

(Asking for guaranteed monthly tickets.)

(End of chapter)