Chapter 674: Imperial Relative Zheng, Are You the Hidden Hand?

"Heaven's net is vast and wide, and though its mesh is coarse, nothing slips through! So long as a man is a villain, he will surely be found out!"

Zhu Cilang's face was dark and grim, looking truly frightening, as though he had been stirred to genuine anger!

He stared fixedly at Zheng Zhilong and said, pausing between each word: "Before the old imperial relative and eldest senior brother came to East Lake Palace, Zhang Shize, Zhu Chunjie, and Su Guansheng had already submitted memorials requesting an audience. It seems they have already uncovered something. Old imperial relative, why don't we listen together to what the three of them have to say?"

"Very well. Then let us listen together."

Zheng Zhilong was stared at by Zhu Cilang until his heart bristled with unease. He thought: This matter can't be connected to my family, can it? Impossible! I never took part in any buying or selling of princely debts. That boy Zheng Sen has been wandering about in Annam and Water Chenla; he doesn't even know about this matter. That fool Zheng Jiangong is bent solely on winning merit and has thrown himself entirely into the naval academy; where would he find the time to meddle in princely debts? Could it have been that girl Chagu? Not very likely, is it? If she needed money, she would simply write a letter and ask for it. Besides, how are these princely debts bought and sold? Are they sold from a stall, or placed in a shop to be sold?

The hidden hand behind the speculation in princely debts was of course not Zheng Zhilong. How could he possibly have that level of skill? He had never even seen what a princely debt looked like, nor did he know how they were traded.

Although he was a major shareholder of the Maritime Merchant Bank and ordinarily took part in some of the bank's affairs, he truly did not understand bonds, stocks, or futures; he had never even heard of them. His participation in the bank's affairs was limited to bringing in clients and arranging loans, and as for the loans introduced through his hands (all lent to other maritime merchants), unless the ship was destroyed and the men perished, the principal and interest could certainly be recovered.

Even if a ship sank, the loss could still be recovered by seizing and selling off the shipowner's property on shore. Thus the bad-debt rate was extremely low relative to the interest income.

As for embezzling the Maritime Merchant Bank's funds or using related-party transactions to harm the bank, Zheng Zhilong had never once entertained such thoughts. Had this major shareholder been placed in the twenty-first century, he would have been a model major shareholder!

While the great shareholder Zheng was inwardly bristling, Zhang Shize, Zhu Chunjie, and Su Guansheng had already arrived. They had been waiting at East Lake Palace for some time, so as soon as they were summoned, they came at once.

After performing the rites between sovereign and subject, the three upright lords commissioned to investigate the princely-debt speculation affair began reporting their findings one by one.

"Your Majesty, according to what the Embroidered Uniform Guard has discovered, those who speculated in princely debts and set traps to ruin people were neither roving bandits nor Tartar caitiffs."

Nonsense. Zheng Zhilong's teacher, a Dutchman, could only speculate in tulips. How could Li Guo and Dorgon possibly use things like bonds and futures to ruin people? If Li Guo had that level of skill, could he still be a roving bandit?

"Your Majesty, the Censorate has likewise found no civil or military officials in Wuhan involved in speculating in princely debts."

Of the officials in Wuhan, hardly any could tell the difference between stir-frying vegetables and speculating in debts. These feudal bureaucrats were either products of eight-legged essay writing or specialists in cutting people down. Who among them understood stocks, bonds, or futures?

If one truly set them to speculating, they might well bring out woks and ladles!

"Your Majesty, the Ministry of Revenue has discovered that all the irregular trading in princely debts was conducted through the Maritime Merchant Bank!" Su Guansheng's tone was grim, and as he spoke, he cast a gaze of righteous severity at Zheng Zhilong.

Zheng Zhilong, for his part, wore an expression of complete innocence and even cast a pleading look toward the Zhu Emperor: Your Majesty, you must believe your subject! Your subject is a loyal merchant and would never do anything that harms heaven and reason.

"Old Father-in-Law," Zhu Cilang asked with a smile, "you are the great proprietor of the Maritime Merchant Bank, so you must know something, surely?"

"Your subject—your subject—your subject knows nothing at all!" Zheng Zhilong shook his head repeatedly. "Moreover, the great proprietor of the Maritime Merchant Bank is not your subject alone; there is also—"

There was also another major shareholder named Zhu Cilang!

When the Maritime Merchant Bank first began, it was a joint-stock venture of three great proprietors: Zheng Zhilong, Zhu Cilang, and Shen Tingyang. But later Shen Tingyang fell into the pit of running industrial enterprises, opening shipyards, matchlock factories, cannon foundries, powder mills, and armor works in Dengzhou and Shanghai. Oh, and recently he had also become enamored of carriage-making, hiring craftsmen from Macao who could build four-wheeled carriages and opening a carriage factory in Pudong, Shanghai.

All these factories of his were run on a fairly large scale, and he had hired many Western craftsmen, so the investment was considerable, and most of the factories had not yet reached the point of turning a profit. In order to raise funds, he had no choice but to sell his shares in the Maritime Merchant Bank exclusively to Zhu Cilang, Zheng Zhilong, Huang Jiang, and certain senior managers of the Maritime Merchant Bank.

Thus at present the Maritime Merchant Bank was held by Zhu Cilang and Zheng Zhilong as the major shareholders, while Huang Jiang and a group of managers, bookkeepers, and stewards held a small portion of the equity.

But Zheng Zhilong did not manage the bank's operations, so the major shareholder actually at the helm was Zhu Cilang himself.

At this point Zheng Zhilong did not know what to say. He could hardly denounce Zhu Cilang before the three great upright lords Zhang Shize, Zhu Chunjie, and Su Guansheng, could he?

Seeing that Zheng Zhilong had nothing to say, Zhu Cilang turned his head to look at Su Guansheng. "Minister Su, what else have you discovered?"

"Your Majesty, forgive your subject's incompetence," Su Guansheng said. "Your subject is a scholar, does not understand commerce, does not know how to manage finances, and cannot even properly read a bank's account books (which are all in Arabic numerals). Therefore I can investigate no further. I beg Your Majesty to appoint someone more capable."

Zhu Cilang asked: "You do not understand commerce, cannot manage finances, and cannot even read a bank's account books. How then can you serve as Minister of Revenue?"

Su Guansheng sighed and said: "Your subject is indeed unfit for the great responsibility of the Ministry of Revenue."

Zhu Cilang nodded. "Indeed, we must find an official skilled in financial management to serve as Minister of Revenue. Only then can the dark dealings in princely debts be thoroughly investigated! Tell me, all of you, who in the court today is the most skilled at managing finances?"

Su Guansheng said: "That would naturally be the Duke of Quan!"

Zhu Chunjie also said: "According to the Embroidered Uniform Guard's investigation, the official in our dynasty most skilled in business is without doubt the Duke of Quan!"

Zhang Shize stroked his beard, his face full of righteousness: "This subject recommends the Duke of Quan to take up the Ministry of Revenue and thoroughly investigate this case!"

"Imperial Relative Zheng," Zhu Cilang said, looking at Zheng Zhilong with a half-smile, "everyone recommends you to serve as Minister of Revenue. We also feel that you are the most suitable person to investigate the dark dealings in princely debts! What do you think?"

The Zhu Emperor's meaning was perfectly clear—do you want to come investigate the case, or do you want to be investigated?

This question had to be thought through very carefully!

Because being investigated would at worst mean losing money to avert disaster; Zhu Cilang would not have Zheng Zhilong investigated all the way into prison.

But if he went to serve as Minister of Revenue, that pit would be enormous!

Because the Great Ming's fiscal reforms would soon enter "deep-water territory." Starting next year, the land taxes of the "Four River Provinces"—Jiangnan, Jiangbei, Jiangxi, and Zhejiang—would begin to be levied!

Moreover, Zhu Cilang was extremely dissatisfied with the current collection of commercial taxes! More than thirteen million taels in commercial taxes (not counting roughly three million shi of customs grain) seemed like a great deal, but after deducting the salt tax, the northern and southern maritime tax farms, the coinage tax, and interest, only a little over two million taels remained.

This figure simply did not match the present rapidly developing new situation of Great Ming capitalism!

And if one wished to collect more money while at the same time not suffocating the Great Ming's economy, then one needed an official who truly understood the actual conditions of industry and commerce and was skilled in financial management to serve as Minister of Revenue.

Looking across the entire Great Ming officialdom, apart from Zheng Zhilong, who else was there to fill the pit of the Ministry of Revenue?

But Zheng Zhilong was no fool either. Knowing full well how deep this pit was, if he still blindly jumped into it, would he not be a fool?

So Zhu Cilang, with no great scruple, pinned the stinking chamber pot of the princely debts onto him. If Zheng Zhilong did not obediently come serve as Minister of Revenue, then he would be the number one great treacherous merchant undermining the Great Ming's financial security!

A fine of several million taels was not in itself to be feared, but after the fine, Zheng Zhilong's reputation would be ruined.

Zheng Zhilong was momentarily at a loss and could only glance at his son Zheng Sen, hoping for a suggestion.

Zheng Sen, however, asked Zhu Cilang: "Your Majesty, after my father assumes the Ministry of Revenue, who will manage the affairs of Quanzhou Prefecture and the Southern Seas?"

"You!" Zhu Cilang said. "Quanzhou Prefecture and the island of Taiwan will be merged to establish a military governorship as well. It shall be called the Dongning Army, and you shall serve as Southern Seas Trade Envoy and concurrently Military Governor of the Dongning Army!"

The amount of tax-farm payment owed by the Dongning Army and the Southern Seas Trade Office, as well as all their various rights and privileges, shall remain exactly as before.

Upon hearing this, Zheng Sen immediately rose and respectfully kowtowed to Zhu Cilang in salute: "Your subject Zheng Sen kowtows in gratitude for Your Majesty's boundless grace!"

(End of Chapter)