Rebirth: I am in Jin-Cha-Ji

He was also a very active member of the Northern Kuomintang.

Therefore, we are quite familiar with the rent and interest reduction campaign. This was not a policy first proposed by the Eighth Route Army. It was a program jointly proposed by the Kuomintang and the Communist Party during the first period of cooperation between the two parties.

However, with the collapse of the first KMT-CPC cooperation, the KMT government no longer put forward such slogans, while the Red Army used

The slogan "Kill the landlords and distribute the land" replaced the "rent and interest reduction" campaign.

Now that the KMT and the Communist Party are cooperating for the second time, the Eighth Route Army is once again preparing to implement the policy of "rent and interest reduction" in order to cooperate.

"However, Political Commissar Wei, that's not what I want to talk about. Now that the Kuomintang and the Communist Party are cooperating to resist Japan, you are implementing a policy of rent and interest reduction. But what if the war is won? Will you still restore the policies of the Red Army era and continue to shout slogans of "beat the landlords and distribute the land"? My Yang family is a wealthy family in Caoyang Village. Several families in the clan own dozens of acres of land, and my family, for example, owns 300 acres. I am the landlord your party wants to overthrow."

Yang Yonghui is no ordinary landlord.

Many rural landlords, though they are called landlords, are actually local tyrants. They rule their own villages, but because they have never been outside, their horizons are very narrow. They have no understanding of national affairs or the changing world.

But Yang Yonghui was a scholar who had served as a member of the provincial party committee.

So his problem goes to the core.

Why should I, the one you defeated, cooperate with you? Yang Yonghui's family is already a large landlord in Caoyang Village, and there are more than one wealthy landlord in the Yang family.

"Principal Yang, what do you think is the gap between us and the Japanese army?"

"A lot. Morale, training, weapons and equipment, in every aspect, there's a big gap between us and the Japanese army."

Yang Yonghui didn't understand why Wei Hongjun didn't answer his question directly, but he didn't care.

He still answered Wei Hongjun's question. Wei Hongjun nodded and said, "We have gaps with the Japanese army in many aspects. Many of these gaps can be made up. For example, morale and training. With a certain amount of training, we can catch up.

But there's one thing we can't catch up with anytime soon. That's weaponry. This gap stems from the industrial disparity between the two countries. Simply put, our steel isn't plentiful or good enough, and our machinery industry is practically nonexistent, lagging far behind Japan. "Principal Yang, do you acknowledge this?"

"Yes."

"And what is the most important core of developing the military industry? The core is heavy industry. Mining, steel, chemicals, and equipment are all the core and most fundamental of industrial development. Only when these industries are developed can we say that we have an industrial foundation and can continue to develop other industries, including the weapons industry. However, these industries all require large investments and take a long time to build. After they are completed, they will not have much economic benefits in the short term. For example, if we want to build a steel plant with an annual output of 200,000 to 300,000 tons, we must have a matching power plant, iron ore mine, and coal mining plant. The funds required to build them all are in the billions.

A slightly larger project might require an investment of 1 billion yuan. However, the annual fiscal revenue of the Nationalist government before the war was barely over 1 billion yuan. Under such circumstances, could the Nationalist government afford to build such a heavy industrial plant?

And this is just a small steel plant in the heavy industry."

Yang Yonghui listened quietly to what Wei Hongjun said.

Wei Hongjun's words made sense. Yang Yonghui, after all, was a former member of the provincial party committee, so he defended the Nationalist government, saying, "Commissar Wei, it's been ten years since the establishment of the Nanjing Nationalist Government during the First Northern Expedition. During this period, the country was plagued by constant war, and the government had little energy to develop industry, especially heavy industry."

"No, it is impossible for the Nationalist government to develop industry, let alone invest huge sums of money in developing heavy industry."

"Political Commissar Wei, what do you mean by that?"

"Principal Yang, do you know what the main types of taxes in the Nationalist government are?"

“I haven’t researched this.”

Yang Yonghui hesitated.

Because Yang Yonghui really hadn't thought about these things. Wei Hongjun said directly: "The National Government has three main tax types: unified tax, customs duty, and salt tax. Unified tax is the income from the National Government's control of major domestic materials and then unified export. Customs duty is the tax on imported and exported goods, and salt tax is needless to say. These three major taxes account for more than 90% of the National Government's tax revenue. For the National Government, as long as these three taxes are stable, then the finances will be stable. Therefore, for the National Government, whether to develop industry or not has no impact on the finances. In other words, the National Government has no motivation to develop industry, and it is even more beneficial to suppress our national industry for the finances. Because for the National Government, the more foreign things it imports, the higher the customs duty, and the better the fiscal revenue. Such a government is impossible to develop the industries that our country and nation need."

Yang Yonghui's face became very serious.

Because Yang Yonghui understood Wei Hongjun's point. As a university-educated, high-level intellectual, he understood that the current world was dominated by industrialized nations. If China wanted to become stronger, it had to develop its industry.

However, Wei Hongjun, based on the finances of Chiang Kai-shek's government, said that Chiang Kai-shek was simply unable to shoulder the responsibility of developing China's industry.

Many people opposed Chiang Kai-shek in the past, including Yang Yonghui, who denounced him back then. But I've never discussed it from this perspective, nor have I considered it from this angle. But after listening to it, I found it quite plausible.

Chiang Kai-shek's tax structure determined his policies.

It's like the butt determines the head.

Chiang Kai-shek's tax system meant that many people in his government relied on it for their livelihoods. These taxes, in fact, constituted the tax revenues of the so-called comprador government. For Chiang Kai-shek's government, as long as there were no major problems with imports and exports, the government's finances would remain stable. Therefore, for Chiang Kai-shek, the well-being of domestic farmers, even the performance of domestic commerce, and even the development of Chinese industry were irrelevant. While Chiang Kai-shek himself might not have believed this, the officials of the Nationalist government did, and acted accordingly. This was because the senior officials of the Nationalist government were vested interests in this economic model.

Yang Yonghui kept telling himself that Wei Hongjun was speaking ill of the Nationalist government in order to win him over.

But even if he thought so, Yang Yonghui also understood that many of what Wei Hongjun said were correct.

"Principal Yang, please explain why these three taxes account for over 90% of the Nationalist government's tax revenue. China has 400 million farmers, and it's an agricultural country. This shouldn't happen no matter how we collect taxes. Normally, agricultural taxes should account for half of China's national tax revenue."

Yang Yonghui continued to remain silent.

Because Yang Yonghui had never considered this issue.

"There's only one reason: the Nationalist government's ruling power was too weak. They had no control over the localities, no control over the countryside. In fact, farmers in the Republic of China were burdened with a heavy burden, having to hand over more than half of their annual harvest. Yet, even though farmers handed over so much grain, the Nationalist government couldn't get any of it. So where did all this money and grain go?"

Chapter 028 Land Issue 2

"Political Commissar Wei is saying that the countryside is controlled by landlords. So the Nationalist government can't get the money? Your party wants to crack down on the landlords just to collect rural tax revenue?"

Wei Hongjun talked a lot.

Yang Yonghui gradually understood what Wei Hongjun meant.

Wei Hongjun also didn't answer directly. Instead, he took out a piece of paper and a pen from his pocket and wrote, "Principal Yang, when I was with the troops on the Long March, I conducted research in various southern provinces. In many places, farmers who rent land have to pay a minimum of around 65% of their harvest. This includes land rent and agricultural taxes. In some areas where land rent is more severe, farmers need to pay 70% to 80% of their harvest. In addition to these taxes, many places also have many complicated and exorbitant taxes. I used to hear that Shanxi was a relatively stable place, but this time in Sheng County, I found that Shanxi is not as peaceful as I imagined. Farmers who rent land in Sheng County also have to pay around 60% of their harvest. Of this amount, 45% to 50% is land rent, and the local government only takes around 10%."

"If we can reduce rent and interest from 45% to 50% to 25% to 30%, and increase the government's tax revenue from 10% to 20%, then farmers will have to pay 45% to 50% of their harvest each year. You see, farmers will be happy to pay less, and will support our rent and interest reduction policies. They will also actively join the army to support our fight against Japan. And we will be able to collect more tax revenue than before to cover military expenses."

Rent and interest reduction campaign.

To put it bluntly, money was taken out of the landlords' pockets and divided between the government and the tenants.

This outcome pleased the tenants and satisfied the government. The peasants would support the new regime behind enemy lines, and the local governments in the Eighth Route Army base areas would have sufficient revenue. The only unhappy ones were the landlords.

Yang Yonghui remained silent.

Because Yang Yonghui understood what Wei Hongjun said, but there were some things he didn't quite understand.

Wei Hongjun paused, seeing that Yang Yonghui understood, and continued, "This is about rent and interest reduction. Principal Yang just asked me whether we would re-propose the slogan of "striking down the landlords and redistributing the land." This is something that the top leaders of our party are considering. I'm just a grassroots commander of the Eighth Route Army. I can't say for sure. But I can continue. Principal Yang, take a look.

If there were no landlords, the government could set the tax at 40%. Some would consider a 40% tax rate excessive, and perhaps even scholars would write books denouncing the government's high taxes. But for farmers, paying 40% tax annually, without having to pay anything else, would significantly reduce their burden.

Do farmers really consider whether government taxes are too high or too low? They care about how much grain they can keep each year. They'd be delighted to pay only 40% of their harvest. "Principal Yang, tell me, did our Party's slogan of 'striking down the landlords and distributing the land' appeal to farmers?"

"This is from the perspective of the farmers. Let's look at the government. Compared to the current Nationalist government, which relies on unified taxes, customs duties, and salt taxes, if a government could collect 40% of agricultural taxes from farmers, how much would its fiscal revenue increase? How many farmers are there in China currently? How much grain does China produce annually? The Nationalist government has no control over the countryside and cannot collect grain from it. Therefore, the Nationalist government pays government employees and military salaries with cash, allowing them to use the money to buy food. As a result, the Nationalist government is short of money every year. In the end, to ensure its own finances, it will inevitably print money on a large scale, and the Nationalist government's banknotes will rapidly depreciate."

"If a new government were to take over, it could collect large quantities of grain from the countryside. The government could then use grain instead of wages to pay government workers and military personnel, leaving plenty of money to invest in industrial development. Our party categorizes landlords into different levels: local tyrants and evil gentry, enlightened landlords, rich peasants, and middle peasants. Therefore, our policy is to crack down on local tyrants and evil gentry and unite with the enlightened landlords. In other words, for our party, the good or bad of one or two landlords has little bearing on our land policy. The existence of the landlord class directly affects government tax revenue and the support of the peasants for the regime."

At this point, Wei Hongjun said everything he wanted to say.

Yang Yonghui looked at what Wei Hongjun wrote with a serious expression.

Yang Yonghui also fully understood Wei Hongjun's point. Landlords weren't all bad, nor were they all good. Among them were local tyrants and evil gentry, as well as enlightened landlords. However, these factors didn't affect the CCP's land policy.

The very existence of the landlord class is an obstacle to industrial development. Especially in an agricultural country like China, agricultural taxes are a crucial component of government finances. If industrial development is to continue, agricultural taxes cannot be abandoned.

Wei Hongjun seemed to have answered his own question, but it also seemed that he did not answer the question directly.

Yang Yonghui is also well-informed.

In his early years, he was a member of the provincial party committee, but later he became disheartened and returned to Sheng County to become a teacher.

But Yang Yonghui understood some of what Wei Hongjun said today, and some he didn't. But after thinking about it carefully, some of it made sense.

So much so that Yang Yonghui was very surprised.

This Eighth Route Army cadre in front of me, who was only in his twenties, was able to speak such profound truths.

"Political Commissar Wei, how old are you this year?"

"twenty two."

"Which university did you graduate from?"

"Principal Yang, I never went to school since I was a child. My family was poor, and we didn't have land until the Red Army arrived in western Fujian. My father was so happy that he gave me the name Hongjun. When I was fifteen, I followed my two brothers to join the Red Army. It was only after I joined the army that I learned to read and started to read."

"Political Commissar Wei only started learning to read at the age of fifteen?"

"Correct."

Yang Yonghui looked at Wei Hongjun in disbelief.

He only learned to read at the age of fifteen and is now only twenty-two. In just such a short time, while the Red Army is still engaged in battle, he has learned so much. This was completely beyond Yang Yonghui's expectations.

Of course, Yang Yonghui didn't know that although Wei Hongjun loved reading, he only started studying at the age of fifteen, so how could he know so much? But the Wei Hongjun who came later was a serious master's student.

Yang Yonghui couldn't help but ask again: "Political Commissar Wei, may I ask what position you held during your time in the Red Army?"

"The battalion instructor, also known as the battalion political commissar."

"The Red Army is truly incredible. No wonder you were able to march all the way from Jiangxi to Shaanxi. Political Commissar Wei, you want to cooperate with us to fight the Japanese together. I'd like to ask, how do you want to cooperate?"

"Principal Yang, we want to establish a base behind enemy lines in Sheng County and promote rent and interest reductions there. However, to do so, we need the support of the enlightened gentry of Sheng County. Teacher Li recommended Principal Yang to us. He said that Principal Yang is a man of high moral character and integrity. Therefore, we would like to invite Principal Yang to step down and lead the Sheng County Rent and Interest Reduction Working Group to complete the rent and interest reduction work in Sheng County."

"I?"

"Yes. Only by reducing rent and interest in Sheng County can we gain the support of the vast majority of farmers. With the support of the vast majority of farmers, we will not lack food or manpower. We will be able to build the most solid fortress against the Japanese in Sheng County."

Yang Yonghui is not a nerd who doesn't understand the world.

He knew that Wei Hongjun had asked him to be in charge of rent and interest reduction because of his reputation in Sheng County and his family background. As long as he stepped forward, many local gentry would respond.

Cooperate with the Eighth Route Army?

Even helped the Eighth Route Army implement rent and interest reduction?

Once he stood up, he would be truly tied to the Eighth Route Army. Even if he said he wasn't on the same side as the Eighth Route Army, no one would believe him. Yang Yonghui was undecided.

The biggest problem is one's own background.

I myself come from a family of large landowners.

So Yang Yonghui said, "Commissar Wei, can you let me think about it?"

"Principal Yang, we are united in the fight against Japan, and I hope for sincere cooperation. I would be even happier if Principal Yang could become a member of my Eighth Route Army in the future. I'd like to see the Caoyangzhuang guerrillas, how would you like that?"

"Okay, I'll arrange for someone to accompany you."

Chapter 029 Cooperation

"Teacher Li, the Caoyangzhuang guerrillas have better knowledge of their weapons and equipment than we do."

Yang Yonghui is very frank.

He did not hide anything from Wei Hongjun and gave him almost complete control of the Caoyangzhuang guerrillas. After a round, Wei Hongjun found that the Caoyangzhuang guerrillas had quite a number of people, nearly 300 people.

The weapons and equipment are also much better than expected.

There were over ninety rifles and a light machine gun. They even had a dozen or so pistols. More importantly, the rifles they had were different from the ones the Zhangjiagou Village guerrillas had when they were first established. While the Zhangjiagou Village guerrillas' rifles were mostly old, homemade, bolt-action rifles, many of the Caoyangzhuang guerrillas' rifles were made in Shanxi and Hanyang. Their rifles were vastly superior to those of the Zhangjiagou Village guerrillas.

Moreover, the Caoyangzhuang guerrillas have a high level of training and are not at all the scattered guerrillas that one might imagine.

Li Shiping replied, "Principal Yang is well-known. He wants to establish a guerrilla unit, so he certainly has the means to obtain weapons. This is why many people are still waiting and watching, fearing retaliation from the Japanese army. Now that the Japanese army has been blocked in the county town, perhaps more people will support Principal Yang's troops. At that time, Principal Yang's Caoyangzhuang guerrillas will have no shortage of weapons and equipment."