My Portable Ming Dynasty

Chapter 495 Prefect Zhong is too eager for advancement
After agreeing, Li Wenquan felt something was amiss.

While Su Ze was eyeing Rishengchang's money shop, the Japanese Silver Company was also being eyed by Su Ze. Now, by offering a large amount of silver dollars to stabilize the new silver notes, wasn't this also falling into Su Ze's trap?
But to be schemed against by Su Ze, this shadow elder, is to be schemed against.

Li Wenquan lamented that what he thought was a brilliant plan had actually fallen into Su Ze's trap.

Is this the difference between a "strategist" and a "nationalist"?

However, being "outmaneuvered" by Su Ze is actually a good thing.

Su Ze, this "shadow elder," is best at sharing profits; even after using you, he will always give you a reward.

And the "sweet date" that the Japanese silver company gave this time was Rishengchang!
Just as Su Ze said, the Woyin Company did not come away empty-handed from this hunt. The two profit points that Su Ze gave were enough to convince Li Wenquan and the other shareholders.

The only thing that worried Li Wenquan was that, through the Rishengchang incident, the imperial court would become more deeply involved in the supervision of money shops and banks, and the days of freedom they had before would probably never return.

Of course, the biggest gain for the Japanese silver company was the branch of Rishengchang in Sakai Port.

This was the branch of Rishengchang Bank with the largest silver reserves, and it was also the settlement bank for smuggling trade between Southeast Asian maritime merchants and Japan.

During this period, Japanese merchants have been using Rishengchang to continuously pressure the Japanese Silver Company on prices, causing the company's profits to decline steadily.

Once we annex Rishengchang, the Japanese Silver Company will once again monopolize trade with Japan. Then we'll teach those Japanese a lesson in how to arbitrarily raise prices!
The following events unfolded exactly as Su Ze had envisioned.

The Japanese Silver Company filed a lawsuit with the Zhenfu Division. Ultimately, the case of Rishengchang's banknotes was jointly tried by the three judicial departments, which ruled that the Japanese Silver Company should convert the banknote debts into shares and invest in Rishengchang.

The first case of "debt-equity swap" in history was born, which gave future business students a headache. The causes and consequences of this Rishengchang incident were very complicated, and students who studied and memorized it all cursed Li Wenquan.

This verdict immediately made Woyin Company the largest shareholder of Rishengchang.

Immediately afterwards, the Japanese Silver Company announced that, in accordance with the new decree of the imperial court, it would pay 30% of the guarantee deposit for the silver notes issued by the Ministry of Revenue and exchange them for new silver notes.

The Japanese Silver Company also announced that it would assume the guarantee deposit for Rishengchang's banknotes and promised to exchange old Rishengchang banknotes for new ones.

After the news was published in major newspapers in the Ming Dynasty, the panic caused by Rishengchang gradually subsided.

Although it's impossible to exchange silver from Rishengchang, and the new silver notes issued are denominated in Ming Dynasty silver dollars, at least we can get new silver notes.

Furthermore, the Japanese Silver Company promised that the new silver notes could also be exchanged for Ming Dynasty silver dollars at the company's bank.

With the promise of universal exchange, many people are no longer in a hurry to redeem their currency.

Rishengchang was engaged in silver smuggling and had a considerable amount of silver in stock. After the Japanese silver company counted the silver, it was sent to the Dengzhou-Laizhou mint to be minted into Ming Dynasty silver dollars, which helped to make up for the Japanese silver company's precious cash flow.

This bloodless financial war encountered little resistance due to Rishengchang's bankruptcy.

The powerful figures behind the scenes of Rishengchang did not dare to step forward at this time, and many of their shares became bad debts.

More importantly, the gentry in the southeast were all in a state of fear.

Because Rishengchang was the settlement bank for smuggling trade with Japanese pirates, most of the smuggling business of the gentry in the southeast was conducted through Rishengchang's accounts, and these accounts are now in the hands of the imperial court.

As expected, the imperial court soon announced an investigation into merchants involved in saltpeter smuggling, and the Saltpeter Monopoly Bureau under the Ministry of Works would severely punish those involved in saltpeter smuggling.

This outcome brought a sigh of relief to the Fujianese merchants who had been involved in the smuggling of saltpeter.

If it's just a severe punishment, then the imperial court is indeed showing mercy.

Money can be earned again, but life is only once.

Moreover, the imperial court imposed heavy penalties on merchants who smuggled saltpeter in accordance with the "Memorial on the Monopoly of Saltpeter" submitted by Su Ze years ago. The corresponding penalty standards were published throughout the country. Although these maritime merchants felt the pain of these fines, they were not so bad as to become pirates because of them.

What surprised the imperial court happened.

During the reign of the late Emperor Jiajing, the court only investigated smuggling on Shuangyu Island, which eventually led to the continuous pirate raids in the southeast and the Japanese invasion.

The number of maritime merchants involved this time far exceeds that of those involved in the Shuangyu Island smuggling case years ago, and the amount of the fines is also a huge sum. However, these Fujian merchants who participated in the smuggling remained calm and even took the initiative to pay the fines.

This was naturally related to the Ming Dynasty navy's patrol in Fujian. More importantly, although smuggling saltpeter resulted in losses, maritime trade was now a legitimate way to make money.

If they fled to the sea and became bandits, not only would they be no match for the Ming navy, but they would also have no way to conduct business openly and honestly.

Even the Longqing Emperor, who was originally wary of the southeast and afraid of another Japanese invasion, did not expect that this time it would go so smoothly. Not only did the gentry in the southeast admit defeat and accept punishment, but no trouble was also caused.

Emperor Longqing was naturally overjoyed and ordered further commendations to the Grand Secretariat and the five departments of the Chancellery. He also gave several Grand Secretaries a round of rewards, and even Su Ze received an imperial jade belt.
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Songjiang Mansion Yamen, inner hall.

After Li Changshun, the manager of the Japanese Silver Company in Songjiang Prefecture, persuaded Zhong Zhenji, the two became friends.

During these days, thanks to Li Changshun's advice and strategies by Zhong Zhenji's side, the financial situation in Songjiang Prefecture was stabilized. When the Japanese Silver Company took over Rishengchang Bank, they were able to get through this difficult period.

During this period, Songjiang Prefecture did not cause any trouble, nor did it file complaints with higher authorities. This made the Cabinet think highly of Chung Jeong-gil, and the Cabinet even sent a special commendation letter to recognize Chung Jeong-gil's contribution to stabilizing Songjiang Prefecture.

Today's banquet is a farewell feast hosted by Zhong Zhenji for Li Changshun.

After taking over the Rishengchang Exchange House in Songjiang Prefecture, Li Changshun was entrusted with an important task by Li Wenquan: to go to Sakai Port in Japan to take over Rishengchang's largest and most complex branch.

This can be considered a promotion for Li Changshun. Once he finishes his work at Sakai Port, he will be able to join the ranks of the top executives of the Japanese Silver Company.

Zhong Zhenji, serving as the prefect of Songjiang, naturally understood the strength of the Japanese Silver Company. This time, with the acquisition of Rishengchang, the Japanese Silver Company's strength has reached a new level.

To preserve their friendship and for the sake of future goodwill, Zhong Zhenji personally saw Li Changshun off at the government office.

After several rounds of drinks, Zhong Zhenji said:

"Manager Li's appointment to the Sakai Port headquarters is truly a key part of the Japanese banking company. If it weren't for his guidance that day in transferring the Rishengchang case to the capital, I'm afraid I would have lost my official position!"

Li Changshun remained very humble, and he quickly said:

"You flatter me, sir! We were able to turn misfortune into good fortune because you were able to adapt to the times. I dare not take credit for it."

Zhong Zhenji took a sip of wine and sighed again.

The incident in Songjiang Prefecture almost caused him to lose his life.

Zhong Zhenji also concluded that it was because he did not have a powerful backer.

Zhong Zhenji was a Jinshi (successful candidate in the highest imperial examination) of the previous dynasty. He had a reputation for integrity during the Jiajing reign and rose step by step to the position of Prefect of Songjiang.

Zhong Zhenji's promotion was also due to his connection with Yan Song.

He and Yan Song were both from Jiangxi. Although Yan Song was a treacherous official, he treated his fellow townsmen quite well. Although Zhong Zhenji did not align himself with Yan Song, Yan Song approved his promotions several times. After Yan Song's downfall, although Zhong Zhenji was not purged, his path to advancement was cut off.

The scholars who passed the imperial examinations in the Ming Dynasty were afraid of being assigned to posts outside the capital, because once they were assigned to posts outside the capital, they would be forgotten in the officialdom and would hardly have any chance to rise again in their lives.

If there is no one in the court who can help you, you will almost never have the chance to return to the capital. At most, you will be transferred to the Six Ministries in Nanjing to retire when you reach a certain age.

Seeing Li Changshun being given an important position, Zhong Zhenji felt somewhat melancholy.

Upon seeing Zhong Zhenji's appearance, Li Changshun understood his intentions.

Li Changshun also had an idea, and he said to Zhong Zhenji:

"My lord, the Wusongkou Port in Songjiang Prefecture has thousands of merchant ships docking every year, generating millions in profits annually. This is a place where one can achieve great things."

Zhong Zhenji sighed and said:
“There are tens of millions of merchant ships at Wusongkou, but they have nothing to do with Songjiang Prefecture. The maritime tax is collected by the Maritime Trade Office, and our prefecture doesn’t get a penny. We are often ordered around by the Maritime Trade Office and have to maintain the security of Wusongkou.”

Li Changshun said:
"Lord Zhong, you did not understand what I meant."

Zhong Zhenji suddenly sobered up and looked at Li Changshun, saying:
"Manager Li means to levy a commercial tax?!"

Li Changshun nodded slightly and said:
"Wusongkou belongs to Shanghai County, right? Shanghai County could be allowed to levy commercial taxes."

Is Shanghai County levying commercial tax?
Zhong Zhenji was stunned for a moment, it seemed that it really was feasible.

In Henan, is it possible to collect commercial taxes starting from the county level?
However, Zhong Zhenji still had reservations.

Because in Songjiang Prefecture, there is another family that cannot be ignored: the Xu family of Huating.

Because the Xu family of Huating had a retired Grand Secretary named Xu Jie.

Although the Xu family faced suppression during Hai Rui's tenure as governor of Yingtian.

However, the Xu family remains the most influential gentry family in the entire Songjiang Prefecture, and many of Xu Jie's former students and officials are still in office.

Putting aside other matters, Zhang Juzheng, the second-ranking official, treated Xu Jie with the respect due to a teacher.

After Hai Rui left office, the crackdown on the Xu family eased, and Xu Jie became active again, frequently receiving visits from old friends.

In addition, the Xu family is also the largest cotton textile business owner in the entire Songjiang Prefecture.

The Xu family's cotton cloth exports all had to go out to sea through the Wusongkou.

Once a commercial tax is levied in Shanghai County, the Xu family, who export cotton cloth, will be the first to object.

Seeing Zhong Zhenji's appearance, Li Changshun said:

"Lord Zhong, are you worried about Grand Secretary Xu's family?"

Zhong Zhenji nodded, and Li Changshun said:
"When I was checking the accounts of Songjiang Rishengchang, I discovered that the Xu family had financial dealings with Rishengchang. Although the Xu family was not on the shareholder list, Rishengchang would give the Xu family a lot of silver notes every year."

Chung Jeong-gil's eyes lit up!

The case of Rishengchang was a major case that shocked Southeast China, and it was handled with extremely high standards.

If the Xu family is truly involved, they are definitely afraid that the case will escalate.

Xu Jie served as a Grand Secretary and had many students and old friends, but he also had quite a few enemies.

If the Xu family's case really blows up, someone will naturally step in. Even if the Xu family manages to get through it, it will cost them a lot of money and favors.

Money is one thing, but personal relationships are the most important. A retired Grand Secretary has a limited number of connections. Even the closest students and former officials can't possibly come to him every day to ask for favors.
Li Changshun continued:
"This is a once-in-a-lifetime opportunity. Once this opportunity is over, we will never be able to find any leverage against the Xu family again!"

Li Changshun then said:

"Wusongkou is an important port for the export of goods in the entire Southern Zhili region. The annual maritime tax is enormous. If commercial taxes could be levied in Shanghai County, how much could Songjiang Prefecture accomplish?"

"Moreover, levying commercial taxes is a good thing, allowing profits to be returned to the country and distributed to the people. It is something that Prosecutor Su has been advocating, and it is also what the officials in the court are looking forward to. If Lord Zhong can get Shanghai to levy commercial taxes at this time, it will surely catch the eye of the officials in the court!"

Upon hearing the name Su Jianzheng, Zhong Zhenji's eyes lit up.

He had long heard that Li Wenquan, the heir of the Marquis of Wuqing and chairman of the Woyin Company, was a close friend of Su Ze.

Li Changshun was also Li Wenquan's capable subordinate.

Did Su Ze mean what he just said?
Zhong Zhenji's heart also burned with excitement. Even if it wasn't Su Ze who relayed the message, Li Changshun was a core senior executive of the Woyin Company and must have been in contact with Su Ze. Just as he said, if he could levy commercial taxes in Shanghai County, it would definitely attract Su Ze's attention.

The cabinet also hoped to expand the commercial tax collection, which is why it caught the eye of the cabinet ministers.

Thinking of this, Zhong Zhenji said again:
"But there has to be a reason for levying taxes in Shanghai County, right?"

Li Changshun said:
"That's simple. Didn't the imperial court just issue an order to crack down on smuggled silver? In addition, the trouble in Rishengchang was just quelled a while ago, and the security situation in Wusongkou is unstable."

"The Lord petitioned to establish a patrol and inspection office in Shanghai on the grounds of 'rectifying the security of Wusongkou.' The office is short of funds, so please introduce a commercial tax to make up for it."

Upon hearing this, Chung Jeong-gil nodded repeatedly!

He was somewhat reluctant to see Li Changshun go to Japan. It was a pity that Li Changshun also had a bright future; otherwise, it would have been great for him to be an advisor to him!

Zhong Zhenji said:
"Tomorrow I will submit a memorial to the court, and I also ask Manager Li to convey this message to those officials."

Li Changshun understood who Zhong Zhenji was referring to, and he readily agreed, saying:
"Of course! I will write to the Crown Prince and ask him to inform Prosecutor Su of this good news. Once the court receives Lord Zhong's letter, Prosecutor Su will surely echo and support Lord Zhong!"

Hearing this, Chung Jeong-gil finally made up his mind.

There's no way around it, Prefect Zhong is just too eager for advancement!

Just as Li Changshun had said, the Xu family of Songjiang Prefecture had done something wrong in the Rishengchang incident. When Zhong Zhenji invited the Xu family to discuss the matter of levying commercial taxes in Shanghai County, the Xu family did not jump out to oppose it.

Without the Xu family taking the lead, other families in Songjiang Prefecture, though dissatisfied, dared not be the first to speak out.

After all, the case of Rishengchang involved many gentry families in the southeast. If the Xu family didn't step forward, they would be in trouble if Zhong Zhenji used them as a prime example for retaliation.

And so, the matter of levying commercial taxes in Shanghai County was "approved by public opinion," and Zhong Zhenji hurriedly sent a petition to the capital.

(End of this chapter)