Chapter 153: The Foshan Trip, Part Nineteen

“There is indeed such a saying. But the languages are not very similar.” Li Luoyou recalled Liu San’s strange Mandarin. A thought suddenly struck him—Liu San’s Mandarin pronunciation was somewhat similar to the Han accent in Liaodong. He frowned. “If they want to colonize and cultivate the land, are they not afraid of the court’s suppression? I don’t know what kind of incompetent fools are governing the Lin’gao county yamen,” he said, slamming his hand on the table.

“Please don’t be agitated, Mr. Li,” Quark said. “The Australians should not be hostile. So far, I have not heard of them doing anything to harm maritime trade. You must know that with their iron ships, it would be very easy for them to rob merchant ships along the coast.”

“That is true.”

“You see, you even bought their medicine. The Australians mean no harm. They abide by the rules and maintain order in this area. They are a good group of merchants,” Quark said enthusiastically. “I would very much like to do business with them.”

“I am sure you will have ample opportunity to do business with them,” Li Luoyou said without a doubt.

“But I still don’t know what they like,” Quark said with some regret. “They like medicinal herbs, but they have already signed a contract with Manager Yang. If I knew what they needed most, I would load a shipment of goods and go to Lin’gao next month.”

“You are indeed a shrewd merchant,” Li Luoyou smiled. “I think they need iron and coal, especially coal.”

“Why?” Quark asked.

“My clerk reported to me that the artisans they are recruiting are mainly in the fields of porcelain firing and casting. Both of these require coal, and I remember that Lin’gao does not produce coal.”

“Coal?” Quark shook his head regretfully. “It’s too dirty, and I have nowhere to buy it.” He thought for a moment. “What about pig iron? Since they have recruited foundry workers.”

“That is possible.” Li Luoyou thought the Englishman was quick on the uptake.

“I think they also need cloth,” Quark said, remembering the Indian cotton cloth he had brought from Surat, which was still piled up in Li Luoyou’s warehouse, largely unsold… He suddenly seemed to remember something:

“Mr. Li,” Quark asked, “are you really going to open a foundry?”

“Yes.” Li Luoyou found it strange. Wasn’t this what they had been discussing a few days ago?

“But from what I can see, manufacturing firearms is not a very profitable business.”

“True.” Li Luoyou calculated in his head. From a purely profit-making perspective, casting cannons was not a good business. It was troublesome, required dealing with the government, and the cost of dealing with the government would likely far exceed the investment in the project itself. And the Ming government was notoriously stingy when it came to paying for “national use” procurements. It was basically no different from robbing merchants.

The Ming dynasty’s “shop conscription and procurement” system stipulated that shops of all trades had to take turns serving the government by procuring goods. The money for the goods was supposed to be provided by the government, but in reality, it was often not paid in full. The actual amount paid depended on the character of the officials, and there was a great deal of flexibility, which provided an opportunity for officials at all levels to make a profit. The shortfall was, as a rule, borne by the shops on duty.

Moreover, after the mid-Ming dynasty, the prices for government procurements were often still based on those set during the time of the first Ming emperor. They had not changed in one or two hundred years. Even if the government paid the full price, the shops would still suffer a huge loss.

Fearing the power of the government, the shopkeepers could only bear the losses themselves. This system had been in place for many years, driving the merchants and shopkeepers to despair. Wealthy merchants with connections would try to bribe officials to evade their duties, while small and medium-sized merchants without connections were often driven to bankruptcy and ruin.

Seeing that the abuses were too rampant, the court had to make some changes, replacing “conscription and procurement” with “soliciting bids for procurement.” But this was just in name; in reality, the local officials still did as they pleased.

Li Luoyou knew that the recent cannon casting in Foshan was, for the most part, “soliciting bids for procurement.” But how much the government would actually pay was a matter of great concern. He was a powerful merchant in the Liangguang region and had some influential officials in the court to back him up. The local government would not dare to openly force him to sell at a low price, but it was highly likely that they would delay payment indefinitely.

“Quark,” Li Luoyou sighed, “you know, if I were just in it for the money, any business here would be easier and more profitable than making firearms for the court. But the court needs these firearms to suppress local rebellions and to deal with the barbarians beyond the pass. These barbarians are no less ferocious than the Mongols, and now they are pushing south, approaching the court’s last line of defense. I cannot imagine,” Li Luoyou supported his head—the chaos of the Guangning retreat flashed before his eyes, and he felt a wave of dizziness—”the scene of these barbarians entering the Central Plains. That would be the destruction of Chinese civilization…”

He glanced at Quark, whose gray-blue eyes were fixed on him. Quark had never seen the great merchant so agitated. But when he compared the barbarians to the Mongols, the Englishman could understand perfectly: the Mongols—the destroyers of civilization.

“…At that time, China will degenerate into a barbaric country like Russia is now, a laughingstock,” Li Luoyou said in a low voice. “I will do everything in my power to prevent that day from coming.”

Quark had no personal experience with the Later Jin, but seeing Li Luoyou’s love for his country, he was moved.

“I understand,” Quark nodded. “This is not just a business.” He continued, “Mr. Li, how do you plan to set up this foundry?”

“Of course, I will hire a foreman locally, and then have him recruit local artisans,” Li Luoyou said. “I don’t know anything about casting or smelting.”

“Mr. Li, have you considered hiring artisans from England and building a foundry entirely in the English style?”

“The English style?”

“Yes,” Quark nodded. “Although I have not seen the local foundries, since the court holds the naval guns from the East India Company ships in such high regard, viewing them as powerful weapons, it is clear that your firearms technology still lags far behind Europe.”

“True. In this respect, our technology is indeed rather backward.” In Li Luoyou’s view, China was rich in resources, but its technology was becoming increasingly stagnant. This was especially apparent to him as a merchant in Guangdong who often sailed to Southeast Asia. He had seen the large, fully-rigged European ships, with their high gunwales and rows of gunports. Although they were clumsy in coastal waters, once at sea, they were superior to the traditional Cantonese and Fujianese junks in both maneuverability and speed.

This gap had long been a source of anxiety for Li Luoyou. He was not a man to belittle himself, but he could feel the growing stagnation and decline of the Ming dynasty in many areas. Now that Quark had proposed using European methods to manufacture cannons, Li Luoyou’s interest was piqued.

“What exactly is a European foundry like?”

“It has a special furnace for heating iron, a boring machine, a drilling machine, a blast furnace, all driven by a water wheel…” He added, “We can also use the hollow casting method to make explosive shells. And your court’s best matchlocks are no match for our muskets.”

“These…” Li Luoyou was taken aback. “Do these machines have to be purchased from England? And the master craftsmen would have to be recruited from Europe as well.”

“The machines, apart from a few specialized ones, can mostly be replaced with local substitutes. If not, it wouldn’t be too difficult to manufacture them here. All it would take is the guidance of a few European master craftsmen. I’ve heard Father Schall von Bell say that in terms of iron casting, Chinese workers are no worse than their European counterparts. With some guidance, they would only do better…”

Li Luoyou hesitated. It was a very tempting idea. Once such a foundry was established, all the existing workshops imitating Western cannons would be put to shame. And according to Quark, the production efficiency would be very high.

However, the investment in such a foundry would be much greater than that of a local one, and it would also involve foreigners coming to China. The government might not be very accommodating. Finally, if the court’s orders were limited, or the price was too low, wouldn’t such a huge investment be a complete loss?

He voiced his concerns.

“Don’t worry about the sales,” Quark said. “In all of East and Southeast Asia, only Macao and Goa can cast European-style cannons, and their production is very low. But there are many places that need firearms. Not just you, but Siam and the Le dynasty are also building foundries and manufacturing arms. Even if the Chinese court doesn’t buy the firearms from the foundry, selling them to these places would be enough to keep the factory running.”

This was a way to compensate for domestic losses with foreign sales, a viable solution.

“But the English master craftsmen and the equipment,” Li Luoyou said, “it would take at least a year and a half to get them here.”

“To be on the safe side, it would take two years. But if you want to manufacture firearms on a large scale, I don’t think that’s a long time,” Quark shrugged. “Once a factory is up and running, it can operate for many years.”

Quark volunteered that if the matter was decided, he would immediately write to his friend at the English factory in Surat and have him make all the necessary arrangements in England.

Li Luoyou considered it carefully and decided it was feasible.

“However, until you have completed the task—or rather, until your equipment and craftsmen have set foot on Chinese soil—I will not pay you any fees,” Li Luoyou said. “You can first calculate your costs and the profit from this trade, and then give me a quote.”

This was a huge opportunity for Quark, but also a huge risk. If the equipment he purchased sank on its way to China, his entire initial investment would be lost.

After careful consideration, the Englishman nodded. “Alright! I will give you a price in a few days.”