Chapter 618: The Trading Company

On the fifteenth day of the first month of the thirty-fourth year of the First Emperor of Qin, amid a clamor of gongs and drums, a plaque inscribed with "Haidong Trading Company" was hung before the entrance of a building.

Those taking part in the plaque-hanging included not only the Commandery Governor of Jiaodong, the Magistrate of Chui County, the Granary Section, the Gold and Coin Section, the Military Section, and other court officials, but also thirteen merchants from Qi, led by Guan Yan of Langya and Dao Jian of Jiaodong.

Governor Heifu's speech at the plaque-hanging ceremony was simply an expression of intent to emulate the state trade apparatus "Light-and-Heavy Nine Offices" from the era of Guan Zhong, circulating goods and accumulating wealth, allowing Qi merchants to participate in the government-led Haidong trade, ultimately achieving the goal of "filling the treasury without raising taxes."

The Haidong Trading Company would monopolize all trade in southern Liaodong and Haidong, with the government handling allocation and oversight; finally, the company would pay taxes to the government in a unified manner.

While Heifu delivered an impassioned speech above, the Jiaodong Military Section Clerk Cao Can whispered to Chen Ping beside him below:

"Qin officials all despise merchants; only our Governor is different. This business of drawing merchants in to do business for the government sounds outlandish even to me, yet these merchants don't seem to find it strange at all."

Chen Ping laughed and said, "These practices have long been commonplace for Qi merchants. Have you forgotten what the Governor said? He got the idea after reading the Guanzi."

The scholars of the Jixia Academy in Linzi once collaborated to write a book called the Guanzi, which fabricated many tales of Guan Zhong waging "economic warfare."

For example, Lu's textile techniques were advanced, and the gauze they wove was thin and fine, renowned throughout the realm. Guan Zhong had Duke Huan of Qi wear clothes made of Lu gauze, and the people of Qi all followed suit, while simultaneously having the Light-and-Heavy Nine Offices encourage merchants to import Lu gauze in large quantities. Seeing profit in weaving gauze, the people of Lu gradually developed it into a pillar industry, planting mulberry and raising silkworms in the fields. A great number of farmers turned to producing Lu gauze, and agricultural production fell into neglect.

Seeing the time was ripe, Guan Zhong had Duke Huan of Qi issue a single decree: the people of Qi were forbidden to wear Lu gauze. As a result, Lu's economy collapsed, its export-driven economy plummeted, grain prices soared, and Lu, facing economic ruin, submitted to Qi without a battle.

Guan Zhong orchestrated similar economic wars many times, such as buying deerskin to target Chu, buying fox pelts to target Dai, and driving up the price of salt to make the feudal lords of the Central Plains submit.

Most of the above were fabrications under Guan Zhong's name; given the scale of trade in the Spring and Autumn period, they could never have been achieved. But the ideas were sound enough—the brainchildren of Qi scholars influenced by what they saw and heard in the flourishing city of Linzi, or perhaps things certain great merchants had done to some degree.

After the First Emperor issued the Edict of Seized Books, the Guanzi was also among those banned and confiscated, so Heifu abused his power for personal gain and acquired a complete set of handwritten bamboo manuscripts to read.

After all, although Heifu came from humble origins, he was famed for his "love of learning." With a reputation for being eager to learn, he could study a bit of everything, and when he later made startling remarks, others would not easily grow suspicious—it also provided cover for things from later eras.

As expected, after reading it, Heifu was full of praise for the Guanzi, saying that some of the ideas within offered reference for his governance of the commandery. He even recruited several Jixia masters who had devoted their lives to the "study of Guanzi" as retainers to discuss the possibility of "restoring the governance of Guanzi"...

Now, Heifu had established the Haidong Trading Company under this very banner, making it easy for the people of Qi to accept.

In any case, Guan Zhong was considered a Legalist and had been enshrined in the Border-Pacifying Shrine, receiving official court sacrifices. Doing this would not give his enemies at court a pretext to attack him; instead, it generated some goodwill among the Qi merchants. The people Heifu had killed during the pacification a year ago were mostly the various Tian clans and wandering swordsmen; the merchants had not spoken out, because they were neither, and it was fortunate that Heifu's blade had not turned toward them. He had even spoken up for them, withstanding pressure from the court...

Returning a favor for a favor, the thirteen great merchants of Qi, whether willing or not, all had to join the company. The money that should have been handed over to the government as commercial tax now had to be put forward as capital for the company to establish outposts in southern Liaodong and Haidong.

The first batch of funds: two hundred thousand per house, for a total of two million six hundred thousand coins!

And what this money bought was merely the privilege of conducting commodity trade in Haidong and southern Liaodong!

After the plaque-hanging ended, the merchants who had just been all smiles began to show worried expressions. The Langya merchant Guan Yan sighed, "This is a gamble. If it truly turns a profit, that's one thing, but if not, our money will be gone like stones skipped on water!"

The others nodded, but could only say, "At this point, the money is already invested. We can only find every way possible to earn it back from Haidong!"

Dao Jian was naturally unworried. He had built his fortune on the backs of bondservants. He had heard that Governor Heifu was very interested in the people of the Three Han and Nine Yi tribes. Those honest and simple barbarians, if they could be transported to Jiaodong as laborers, would be a fine business indeed.

The fur merchant was also full of anticipation and said with a laugh, "I was just worrying that Qi's population grows daily while the sables and foxes in the mountains dwindle. I hear Haidong is rich in pelts. It seems this year, the Central Plains will see many more sable coats!"

Those dealing in silk, cloth, and lacquerware had their own plans too. Qi's goods, though once famed as "crowns, sashes, clothes, and shoes for all under heaven," were a thing of the past. Now, in silk alone, if transported to the Central Plains, they could not compete with the gorgeous and light Lu gauze. Qi's lacquerware was also inferior to that of Song and Chu. So, apart from fish and salt, Qi's products could largely only be produced and sold locally.

But when these goods were shipped to Liaodong and Haidong, they were very popular with the local nobility and could be sold at high prices! The only worry was the size of the market there. Liaodong Commandery had just over a hundred thousand people, and Joseon was the same. Add in the so-called Three Han and Zhenfan, and the total was not necessarily much more than Jiaodong. The merchants all feared that even if the Haidong Trading Company could turn a profit at first, the business would decline within three to five years.

However, Heifu then gave everyone two reassurances.

"The Haidong campaign is not yet over. If members of the Haidong Trading Company transport grain from the interior to the ports by cart for the government, they may obtain salt vouchers, carrying sea salt back to the counties and villages to sell at fair prices..."

As soon as this policy was announced, the Qi merchants were all astonished. Though the trades they ran varied, they all had one thing in common: they each possessed large numbers of carts and boats!

Did this not mean that, as long as they were great merchants of the Haidong Trading Company, they were all eligible for a share of the sea salt trade?

This was also an experiment by Heifu, changing salt from being sold directly by the government to being sold indirectly. The government would monopolize the supply source, handling only the drying of salt and the setting of prices, while the retail work would be wholesaled to the great merchants willing to cooperate with the court. In this way, the costs of transporting grain and salt could be saved, and the government would earn even more money.

Too little government control was bad, but too much was also bad. Moderately reducing government functions was a good way to streamline costs, and this was also an experiment for Jiaodong as a "special economic zone"...

That was the first reassurance. The second reassurance made the thirteen merchants laugh out loud, for it was sweet...

"No merchant outside the Haidong Trading Company may sell sugar!"

"Congratulations, my lord!"

After the Haidong Trading Company plaque-hanging ended and they returned to the residence, Chen Ping was the first to offer Heifu his congratulations.

"Congratulate me for what?"

Chen Ping said, "Three years ago, when my lord first entered Jiaodong, you had only a few advisors and several dozen mounted followers. At that time, my lord placed a few white stones on the chessboard in your carriage, each representing a faction in Jiaodong: the various Tian clans, the minor nobility, the artisans, the merchants, the intellectuals, the small farmers, the left-lane poor, the wandering swordsmen..."

"So it's about that." Heifu laughed. "I had nearly forgotten. I'm surprised you still remember!"

Chen Ping said, "How could I dare forget? I especially recall my lord saying that politics is about making more and more friends, and fewer and fewer enemies!"

Indeed, three years had passed in a flash, and the situation where the entire commandery had been hostile had completely changed. The minor nobility left over from the Jiang Qi era were the first Heifu won over, followed by the propertyless left-lane poor.

After the book-compilation and book-burning debates, the "reactionary intellectuals" were suppressed, and those who knew what was good for them mostly defected to the government. Taking advantage of the First Emperor's eastern tour, the various Tian clans were uprooted, the wandering swordsmen were left half-dead, and with the Agriculturalists settling in, the small farmers' per-acre yields slightly increased, making their lives a little easier.

Finally, only the merchants remained. Now, even their great magnates had been wholly co-opted by Heifu and stuffed into the Haidong Trading Company, where they could be both supervised and utilized.

After reviewing all of the above, Chen Ping said, "My lord's three-year plan has finally reached perfection today!"

"Perfection?"

Heifu smiled, looked at Chen Ping—the most scheming of his subordinates—and said meaningfully:

"As long as the eastern expedition army remains stationed for a long time, Haidong will still not be entirely under Jiaodong's control. We must wait until the war on the opposite shore is completely finished, until the head of the Lord of Canghai is cut off, until the remnants of the six kingdoms are utterly swept clean, and the awe-inspiring might of the Qin army is established—only then will the matter be perfect!"

Having said this, he looked at Chen Ping. "Do you understand my meaning?"

Chen Ping's heart tightened. Remembering what he had done in Liaodong the previous year, he bowed and said, "Your servant understands!"

Heifu pointed at him and said, "So for this grain-supervising mission, you will go again. When you see the Young Master, give him my regards."

"Aye!"

Chen Ping was startled, even more alarmed in his heart, but he could only bow and assent, bracing himself as he waited for Heifu's next words.

Perhaps "I'm giving you one more chance," or "Do not act on your own authority again"—a warning of that sort.

But Heifu said nothing at all. He waved his hand and dismissed Chen Ping.

After walking out of the Commandery Governor's residence, Chen Ping's back was already soaked with sweat.

Twelve years ago, Chen Ping was a youth just past his coming-of-age. Invited by Heifu, he first entered the Qin army camp. At that time, he had thought this dark-skinned man had the taste of Longyang and coveted his beauty, and so he had been trembling with fear. Yet even that time had not inspired the terror he felt today...

Sometimes, leaving things unsaid is more terrifying than saying them outright.

If said outright, the prior matter would be over and done with. But left unsaid, it was as if Heifu were watching Chen Ping at any moment, observing his subsequent performance. Chen Ping felt that if he courted death again, it would not be as simple as merely losing trust.

Only after a long while did he sigh secretly to himself:

"He clearly possesses the majesty of a ruler — reserved and sparing of words, yet more fearsome than a thunderclap of rage; even I feel awe in his presence. So why is he content to bow beneath Qin Shi Huang and his son? Are dukes, marquises, generals, and chancellors really born of noble stock? My lord, oh my lord, could it be that you are truly satisfied merely becoming a full marquis or chancellor?"

Such a lord — Chen Ping both admired and resented him. Admired, because he was a hero among men, worthy of Chen Ping selling his wisdom and pledging his life. Resented, because he confined himself to the station of a subject, and Chen Ping felt it a waste that he could not advance further!

"Does he truly not see? No matter how well he does in Jiaodong today, should the emperor's trust and favor ever fade, at any moment the man may perish and his policies die with him!?"

PS: Chapter 2 at 12:30.

(End of chapter)