Chapter 2548: Hidden Worries

Australians also purchased cotton? Nansha just started operation; tens of thousands of silver invested haven't seen a splash yet. If cotton prices rise like this urgently, how can the factory continue to open?

Thinking again, next door to this International Textile Market is the Guangzhou State Cotton Textile Factory—encircling such a large piece of land to build factory buildings; when machines start, tens of thousands of spindles will turn together. Isn't it normal for Australians to start hoarding cotton now!

However, if it's like this, future cotton prices will only rise with the water. Chen Lin's heart couldn't help tightening.

But Dong Jizhong's next words reassured him a bit: "However, cloth prices also rose recently. Heard Australians are buying in large batches lately."

"Why do Australians want to buy in large quantities themselves?" Chen Lin got interested and asked.

"Do you know the Nanyang Company?"

"Know, know, founded not long ago, saying want to develop Nanyang..."

"Developing Nanyang means sending landless refugees from various places to Jiaozhi and Nanyang to open up wasteland and farm. These people need to eat, drink, and wear clothes; farming needs seeds and tools. Australians have to prepare everything. Could it be they let them go with bare butts and empty hands?" Dong Jizhong laughed, "Nowadays in Guangzhou city, not only cotton cloth rose, grain and various groceries all rose. Even hardware parts that fell all the way in the past—the least valuable iron nails rose quite a bit. Why? These are all objects immigrants need to use!"

Dong Jizhong's words made Chen Lin feel like enlightened by filling the top of the head with cream [suddenly enlightened]. These days he was immersed in factory matters, completely failing to understand the outside market.

"So it is! Merchants should originally observe six roads and listen to eight directions, grasping business dynamics at all times!" He said ashamed.

"Little Brother, you don't need to blame yourself," Dong Jizhong laughed, "Since cotton cloth rose greatly, cotton yarn price naturally also rose quite a bit. Whether you have cloth or yarn, dumping it now can earn a ticket. Currently, the average price of cotton cloth in Guangzhou rose by 15%; low-medium grade cotton cloth rose even more."

He seemed to think of something: "About the cotton matter, I will go help you persuade the manager when I get back. Since you are Master Wu's cousin-nephew and Nansha factory's manager, you count as one of our own. I will definitely help to the end on this matter, resolutely not letting you return empty-handed."

"Many thanks, Master!"

"You don't need to thank me either. We are one of our own!" Dong Jizhong looked at him with a 'you know' expression, " In the past, Master Wu also mentioned you to me many times, saying you are a most honest and working descendant of an old family. Now looking, it is indeed so. With you in Nansha, I trust it!"

"Yes, Master's grace of recognizing me, this lowly one will definitely engrave in heart."

Dong Jizhong saw the young man before him was very sensible and nodded secretly in his heart.

His father and big brother were both officials in the Ming State. Besides salary, various gray incomes were secretly remitted back to Guangzhou using Delong's channels in the north; this was one aspect. But just relying on their gray income was actually limited. After all, father and brother were both military officers, not serving in places easy to get rich like Guanning. The gray income part was actually very limited.

To maintain the family's luxurious life without declining, collecting interest was the only road. Nansha Textile Factory was currently the Dong family's biggest investment project.

His perception of Chen Lin was very good now. Although business mind was obviously inferior to Wu Yijun, he was truly a person capable of doing things.

"This International Market is an excellent place to understand the market. Renting a shop face here, doing business or not is secondary; the key is knowing this fast-changing market. Australians indeed have vision and ideas!" Dong Jizhong said, "This Guangzhou city is full of gold everywhere, as long as you go pick it up. I originally didn't believe this saying—now I believe it. There is no wine here; I will use tea instead of wine to congratulate the two of you: business prosperity, financial resources advancing widely." After speaking, he raised the tea cup.

Wu and Chen hurriedly also raised cups to congratulate Dong Jizhong together. After another round of polite remarks, Wu Yijun saw the time was about right, so he signaled Chen Lin, and the two took their leave.

Chen Lin originally wanted to talk more with Dong Jizhong about cotton procurement—since the Dong family had connections in the north, this was a long-term plan. Walking a few steps after coming out, he complained: "...I still have a few sentences to say to Master Dong."

"What's the rush?" Wu Yijun laughed, "Nothing more than cotton matters. Relax, although he is a dandy, he still cares about his own business matters. We who handle errands shouldn't sweep away his interest. The time is about right..."

"What time?"

"Look at that clock tower over there—do you understand the Australian numbers on it?"

"Isn't that just Arabic numerals? It's about to be two o'clock."

"Didn't expect you know quite a lot!" Wu Yijun looked around secretly and said: "Look across the street."

Chen Lin saw his cousin-uncle's appearance was wretched, knowing it wasn't some serious matter. He dared not make too big a movement, only shifting his gaze slightly. He saw a small sedan chair arriving in front of the tea house. Managers and waiters all welcomed it. The sedan curtain was picked up, and a woman in Ming State attire came out from inside...

"Could this be Master Dong's..."

Wu Yijun nodded silently. Walking out a long distance later, he whispered: "This is a woman Master Dong newly took in. Haven't crossed the clear road [not official]. Second Master disliked having many people and mixed eyes in the city, so he bought a courtyard for her in the Living Zone here and rented a shop face for her to manage."

"What? Let a woman do business?"

"What's rare about women doing business?" Wu Yijun laughed, "There are plenty of women selling wine at the stove in the city..."

"That's all small business; what's done in this market is all big trading!" Chen Lin didn't understand, "Besides, Dong Second Master himself isn't from a merchant background, nor does he understand business ways. Getting a shop face for a woman, what business can be done?"

"Who said there is only big business here? Isn't Zone A the place for doing small business? This woman's shop face is in Zone A, doing business of export silk fans, handkerchiefs, and such fine embroidery works. Although trading just opened, she already accepted several orders from Europeans."

Wu Yijun said slightly enviously: "This Dong Second Master really has a hand, actually able to hook up with such a woman! Capable and pretty."

Chen Lin wasn't too interested in this kind of lace news [gossip]. He asked: "Cousin-Uncle, where is our shop face rented? I see quite a few people looking at shop faces here..."

"You don't need to worry about this matter. I already favored a shop face. Yesterday I asked the manager to come bid. Although the highest bidder gets it, there are extremely many shop faces in the market. I didn't choose any special feng shui treasure land; presumably, no one will come fight with me. Nine out of ten can take it down at base price."

They were operating wholesale business here, not sensitive to shop location like retail, so they had no intention to invest too much capital in renting shop slots either.

After speaking, Wu Yijun took him to a shop face in Zone B. The shop door was wide open; workers were renovating inside. Timber, bricks, and tiles were piled all over the floor.

Wu Yijun told Chen Lin the annual rent here was two hundred yuan. This price, in terms of Guangzhou, was also the rental price of a first-class shop in a busy market.

"Although rent is expensive, it is worth the value. I also bought a courtyard in the Living Zone here. In the future, I will linger here often."

"Then, what about Master's dried fruit business in the past?"

"Let Ah Huan take over. He is also nearly thirty. No need for me to stare beside him every day." Wu Yijun was quite emotional, "I am almost at the age of Knowing Fate [50]. Taking advantage of the body and bones still being useful now, have to flutter [hustle] for a few years quickly. This chance to earn big money isn't encountered casually."

The two strolled in the market, exchanging a few sentences when meeting familiar merchants, chatting about the market of related commodities currently. Although some shop faces hadn't officially opened, waiters and managers had already moved in; they also went in to chat.

After walking this circle, it was already past four in the afternoon. The two then took a ferry boat and returned to Guangzhou urban area. Wu Yijun had a strong desire to talk, ordering people to prepare wine and dishes. The two drank and discussed matters; naturally, they talked about future grandiose plans.

Compared to the enthusiastic Wu Yijun, Chen Lin had a worried look. Seeing this, Wu Yijun persuaded: "Ah Lin, are you still worried about cotton? Relax, Master Dong will definitely solve it for you, absolutely not letting the factory stop work. After all, he has a share too..."

"Cousin-Uncle, I am not worried about this." Chen Lin said, "I am most worried about this cotton price now... Judging from words spoken by people from all sides in the market today, afraid there will be a huge storm."

"Are you saying the Paper Cotton matter?" Wu Yijun waved his hand indifferently, "As long as we don't go speculating, nothing will happen! Besides, cotton market in the second half of the year might be even higher."

"Cousin-Uncle, have you thought about one thing? Cotton skyrocketed; although cotton cloth and cotton yarn also rose, the rise is much smaller than cotton."

The market cotton supply hadn't increased; shortly, it even decreased. But cotton cloth and cotton yarn, due to the promotion and introduction of new machines, saw production explode, actually showing a trend of falling prices.

"...I just summarized and calculated the quantity and price of cotton cloth purchased by Nanyang Company in the 'Business Monthly' from previous months, then compared with the price before this wave of market at the beginning of this year. Deducting the price rise factor caused by Nanyang procurement, actually, cloth prices are falling."

These words attracted Wu Yijun's attention. He put down the wine cup and asked: "Then?"

"Nanyang is also just a company; the cloth it can buy in has a limit after all. Moreover, last month, its purchase volume already decreased by half year-on-year. If it continues to decrease like this this month. Yarn and cloth in the market will appear surplus, prices will inevitably fall..."

A typical situation in the commodity market is chasing rise but not chasing fall. Once a certain commodity begins to show price drops, panic selling situations from all sides often appear, further suppressing commodity prices. Breaking through cost price is a matter of an instant!

(End of Chapter)