Chapter 151: Mutually Beneficial

The prefect of Hangzhou, Liu Mengqian, was a man of refined tastes. The most famous “deed” he left behind in Hangzhou was an elegant gathering on the Su Causeway one spring:

“In the second month, a grand gathering was held on the Su Causeway. Tens of thousands of ram’s horn lanterns and gauze lanterns were collected from the city and hung on the peach and willow trees. The ground was covered with red felt. Famous prostitutes and handsome boys drank and sang freely. At night, tens of thousands of candles were lit at once, making it as bright as day. Looking from the lake, the tens of thousands of candles on the causeway were doubled in the lake’s reflection. The sounds of pipes, zithers, and songs continued until dawn.”

Such a scene, both in the past and present, was an extremely elegant affair. When Zhao Yigong had read this passage in the past, he was quite envious.

No matter how refined a person was, once they became an official, they had to solve the livelihood problems of the people under their jurisdiction. Liu Mengqian was lucky. Serving as the prefect in this place known as “paradise on earth,” Hangzhou, not to mention the various “perks” of being an official, the most important thing was that he did not have to struggle in a nightmarish environment like many of his colleagues.

Therefore, Prefect Liu was very satisfied with his current situation. However, last year’s great drought had cast a shadow on his official career.

As long as one was a local official, one would always encounter one or two famines during their term. In ancient Chinese society, there was a natural disaster on average every three years, and a major disaster about every ten years. Disaster relief and post-disaster recovery had always been one of the main tasks of local officials. Prefect Liu had naturally experienced it before.

Since the first year of the Chongzhen reign, the Zhejiang region had suffered from natural disasters almost every year. The disaster-stricken areas were all over the province, and even the Hangzhou-Jiaxing-Huzhou plain, which had always been a land of fish and rice, had repeatedly suffered from floods and droughts. The people had almost no respite. In addition, the government’s exorbitant taxes and levies in recent years had already severely damaged the vitality of the Jiangnan region, which was already a heavily taxed area.

The large number of refugees was a major headache for Prefect Liu. In recent years, “popular uprisings” had been constant, disturbing the peace of the world. Although Liu Mengqian was a man of refined tastes, he was not without insight. Jiangnan had been at peace for a long time, its military preparedness was lax, and its civil and military officials were complacent. If a large-scale popular uprising were to occur, it would be impossible to rely on the exhausted government troops or the bailiffs who were only good at intimidating and extorting the common people. At that time, he, the prefect, would probably have to commit suicide by swallowing silver in his main hall.

Therefore, as soon as the famine began, he summoned the local gentry and asked them to do their utmost to help the government maintain and relieve the disaster victims. He specially established a famine relief bureau, set up soup kitchens, sold grain at fair prices, distributed medicine, and buried the dead on the roadside… Fortunately, Jiangnan was a land of fish and rice, and the private savings were still abundant, so they managed to maintain the situation.

However, the situation still did not improve. The drought had passed, but the price of grain in the market was constantly rising with the approaching “lean season” of May and June. The price of a dou of rice in the market had already exceeded three mace of silver.

From Prefect Liu’s experience, once the price of a dou of rice in the local area exceeded four mace, a large-scale famine would occur. The tragic scene of disaster victims everywhere, which had just subsided, would be repeated, and all the hard work of the past six months would be in vain.

Moreover, if the spring sowing and planting could not be carried out in time, it would mean that the year’s harvest would be ruined, the grain tax could not be collected, and the refugees would riot again. Then he, the prefect, would not have to be an official anymore. Seeing the situation becoming more and more dangerous, Liu Mengqian could no longer sit still. He disregarded his “official prestige” and went directly to the famine relief bureau to convene a meeting of the gentry.

The famine relief bureau was located in Guanxiang in the city center. More than a dozen committee members and local gentry who had no official position but had contributed a lot had already gathered in the main hall.

At the meeting, there were many different opinions. The measures for disaster relief were nothing more than old clichés, which were familiar to everyone present. But when it came to the specific implementation, no one was willing to say much—because it would once again involve the issue of money.

From the beginning of the disaster last year until now, several rounds of “fundraising” had been carried out. Although everyone present was a public-spirited person in the local area, they had not yet reached the point of selfless dedication to the point of ruining their families to relieve the famine. Moreover, the local area had been suffering from constant disasters and exorbitant government taxes in recent years, and their own economic situation had also been greatly damaged.

The final result of the meeting was still no decision. They would just continue to do the few things they could do at present. As for the most important matters of selling grain at fair prices and lending seeds and cattle to the people, because the expenses were huge and the source of money and grain could not be secured, no one was willing to take the lead for a while.

After the meeting ended and the committee members dispersed, Liu Mengqian instructed his servant to invite Zhao Yigong to meet him in plain clothes in the flower hall.

Zhao Yigong was very active in the activities of the famine relief bureau, especially in solving the problem of refugees, which the government found most troublesome. It was basically handled by the Cihui Hall. Although he had heard many rumors that after the refugees were taken in by the Cihui Hall, they would be transported away by ships from the Qiantang River every month. As for where they were transported to, no one knew. It was only said that they were sent to Guangdong to open up new land.

If this had happened in a time of peace, the local officials would have had to inquire about it. But now, all the local governments were dealing with problems as they arose. The gathering of a large number of disaster victims was a huge hidden danger. Now that someone was willing to step forward to deal with it, who cared where they were sent in the end, whether the refugees lived or died. Moreover, the household registration system had been in disrepair for many years, and the number of registered households was completely fabricated. The exact number of registered households under the jurisdiction of a local official had become an unclear matter. Therefore, the officials of Hangzhou prefecture and counties all adopted an attitude of turning a blind eye to this matter.

Liu Mengqian first exchanged a few pleasantries with Zhao Yigong, praising him for being “young and promising” and “public-spirited.” He also said that he was preparing a memorial to the throne to request commendations for the local personnel involved in this disaster relief. At that time, the court would naturally bestow some honors. It was not impossible for Zhao Yigong to be “further promoted.”

Zhao Yigong thought to himself that the so-called further promotion was nothing more than a qualification to study at the Imperial College, which he really didn’t care much about. But on the surface, he had to put on a look of being overwhelmed by favor and repeatedly expressed his thanks.

After the pleasantries, Prefect Liu’s topic turned to the issue of famine relief.

Zhao Yigong already had a plan in mind, but he was unwilling to say it at the meeting. Firstly, it would be too high-profile and easy to cause offense. Secondly, once this matter was implemented, the subsequent economic benefits would be enough to make people envious. It was not appropriate for him to propose it himself. It was best to propose the plan to Prefect Liu in private and then have him announce it.

This Prefect Liu would not let go of any opportunity at this moment. Given his ability to handle the refugees in the previous stage, he would definitely come to him for advice.

Zhao Yigong’s plan had been considered many times. On the one hand, continuing to absorb the refugees from Jiangnan to the south was originally his task, which he could fully undertake. On the other hand, he also needed to use this to cover his own affairs with the righteous cloak of “saving people from fire and water.”

He briefly reported his train of thought, with the eight characters “revitalizing the market through commerce instead of relief” as the principle.

There were many disaster victims. If they wanted to save money and rely on thin porridge and salty vegetables for relief, although it could calm the people’s hearts, it could not restore production. If they lent cattle, seeds, and other things to help the victims restore production, it would naturally be the best, but the expense was too great for the famine relief bureau to bear. Even if they “persuaded” all the gentry and merchants in Hangzhou to donate again, they would probably not be able to raise much money and rice. And repeated fundraising would inevitably cause a backlash—Zhao Yigong very tactfully reminded Prefect Liu that this would be detrimental to his official reputation.

The power of the gentry in the Ming Dynasty was very great. If a local official wanted to serve peacefully, he could not offend the gentry. Prefect Liu, of course, understood Zhao Yigong’s reminder.

“Revitalizing the market through commerce instead of relief…” These eight characters were well said, but how to implement them? Please teach me, sir.” Prefect Liu put on a look of humbly seeking advice.

Revitalizing the market through commerce instead of relief was just a policy. Although it was novel, the specific implementation still could not escape the two words “money and grain.” What Prefect Liu wanted to know was how this Master Zhao could conjure up money and grain out of thin air.

“Your Excellency is too kind. The word ‘teach’ is absolutely not something I dare to do. It is just a humble opinion of mine, and there are many difficulties in it.”

“Feel free to speak. As long as I can do it, I will do my best.”

“Of course there are many difficulties, too many to mention, and I dare not trouble Your Excellency. As long as it is within my power, I will handle it myself. Please rest assured, Your Excellency. The refugees will certainly not become a disaster.”

With these words, Zhao Yigong first made his attitude clear: the Cihui Hall would continue to take in and send away refugees. As long as the local authorities did not interfere, the refugees would not form groups and endanger order.

Liu Mengqian nodded slightly. With this premise, everything would be much easier to handle. As for where the refugees went, it was none of his business.

Zhao Yigong continued: Although the refugee problem could be solved, restoring production was still the top priority. To not miss the farming season, it was imperative to lend seeds and cattle to the people. But now, both the government and the famine relief bureau had no money.

“…After much thought, I have a method that can be said to be beneficial to both public and private interests,” Zhao Yigong finally revealed his trump card.

“What method?”

“Silk!”

Liu Mengqian’s mind was extremely quick. He immediately realized that this Master Zhao was targeting raw silk. This was not surprising—the profits from raw silk were huge. But distant water cannot quench a present thirst. By the time the raw silk came on the market, the time for transplanting rice seedlings would have passed. The key was still how he would play this “mutually beneficial” game.

Zhao Yigong said: Although Hangzhou suffered from a drought last year, the impact on the sericulture households was not very great. In particular, the mulberry groves were not greatly affected by the dry climate. There have been no further disasters since last autumn, and the mulberry trees are growing well. The mulberry leaf harvest this year should not be a problem. Therefore, the cocoon harvest can be guaranteed.

His plan was to use the fifty thousand taels of silver raised by the China Merchants’ Bureau as an advance payment to the famine relief bureau, which would then be responsible for purchasing the cocoons. Zhao Yigong would not interfere with the purchase price of the famine relief bureau, but the price at which the China Merchants’ Bureau purchased from the famine relief bureau was fixed. The premium generated from this transaction would be the profit of the famine relief bureau. This profit would be used as capital for famine relief, to purchase seeds, cattle, and grain for the famine, which would be distributed to the disaster victims in the form of loans and repaid after the autumn harvest.

The famine relief bureau was government-run and had the great name of famine relief. It was easy to form both political and moral pressure, so there was no fear that the sericulture households would not submit. And given the usual nature of the late Ming gentry, they would never stop until they had squeezed every last drop from the small households.

As for how much profit they could squeeze from the sericulture households and what bottomless things the contracting silk and cocoon guilds would do, that was not his concern. The more miserable the losses of the sericulturists, the more beneficial it would be for Zhao Yigong.

Zhao Yigong continued that in the specific operation, the advance payment for the goods could be used first so as not to miss the farming season, as long as enough funds were reserved for the purchase. As for how much to reserve for the purchase, Zhao Yigong was vague. In short, in the end, Zhao Yigong would receive cocoons or raw silk equivalent to fifty thousand taels of silver at the purchase price of the China Merchants’ Bureau.

“What if the sericulture households refuse to sell to the famine relief bureau?” Prefect Liu asked.

“What’s so difficult about that?” Zhao Yigong smiled. “Naturally, we will have to trouble Your Excellency to issue a notice beforehand to reason with them. I think the people will also understand the stakes. If that doesn’t work, we will have to ask the gentlemen of the silk and cocoon guilds for their help.”

The famine relief bureau was not a silk and cocoon guild, so the specific business operations had to be handed over to them. Zhao Yigong estimated that with the famine relief bureau as the general contractor, a layer of profit would be taken away for nothing. The silk and cocoon guilds in Hangzhou would inevitably fight over the purchase of silk cocoons, and the exploitation of the sericulturists this year would probably be unprecedentedly heavy.

Prefect Liu stroked his beard and nodded, saying nothing. Zhao Yigong, with a broad smile on his face, lowered his head and just drank his tea.

He was not worried that the famine relief bureau or Prefect Liu would cheat him. If it were Zhao Yigong’s personal initiative, then the possibility of him being cheated would be high. The officials and gentry of the Ming Dynasty were all people who ate people without spitting out the bones. But now, the one lending the silver was the China Merchants’ Bureau. Not to mention the great name of famine relief, to cheat thirty-six gentry of Jiangnan at once, this Prefect Liu would have to be too bold.

Prefect Liu understood and thought to himself that this Master Zhao was indeed a cunning merchant.

However, this did solve his urgent problem. He estimated that this purchase would yield at least a fifty percent profit. Not only would the expenses for seeds and cattle be covered, but the gentlemen of the famine relief bureau would also get a little something. It was indeed “mutually beneficial.”

A smile immediately appeared on his face, and he repeatedly praised “sir’s great talent.” Zhao Yigong took the opportunity to make a second suggestion.

Although the losses of the sericulture households were relatively small, they had still suffered from the disaster. The money and grain for this famine relief would also come from the silkworms they raised. Now was the lean season, and the lives of the sericulturists were also very difficult. So they should also receive some support. He mentioned that he was willing to help the sericulturists by providing them with “shaoye” and at the same time opening a charity workshop in the Cihui Hall to reel silk for customers.

“Opening this workshop is also to provide a place for the refugees we’ve taken in to be self-sufficient.”

Prefect Liu, being an official in Hangzhou, knew the meaning of “shaoye.” When he heard Zhao Yigong mention this, he understood his meaning after a moment’s thought. He had contributed greatly to the famine relief this time, so it was not convenient to object to him wanting these benefits. As for the workshop for reeling silk for customers, he did not see any particular necessity for it, since most sericulturists reeled their own silk. But he felt it was harmless—it was not an illegal matter.

“This is easy. You can just go ahead and do it,” Prefect Liu said. “I have it in mind.” He picked up his teacup. “You may leave.”