Chapter 303: A New Way of Business

Liu Deshan thought for a moment and said, “Because the sea lords each have their own territory?!”

“That’s right! But the bigger problem is the government!” Chen Huamin said bluntly.

Qin Haicheng and Liu Deshan nodded in unison. Indeed, as long as they bought the sea lords’ command flags, the merchant ships would certainly not be harassed at sea. It was the local government offices, local brokers, government navies, and other such demons and monsters wearing official skins that were the real characters who wanted both money and life. With no guarantee of security on land or water, and the exploitation of merchants, ordinary merchants did not dare to travel far.

“For long-distance trade, there are too many powers that need to be paid off, and some can’t even be paid off at all. When you reach your destination, you might encounter vicious local brokers who will hold you up for years, or even leave you with neither goods nor money. The roads are not peaceful now either, with bandits and pirates as numerous as ox hairs. For small merchants like us with no guards and no influence, if we encounter them, we can’t even protect our lives. Unless the destination is a ‘familiar place’ with local connections, we really don’t dare to engage in long-distance transport.” Liu Deshan, who specialized in domestic trade, felt this most deeply.

“You, old brother, at least can travel to many places. You’re considered to have traveled far.”

“It’s all thanks to the connections my father built up in his early years. Otherwise, how would I dare to run around like this…” Liu Deshan sighed heavily. “Now I’m also more careful. I don’t go to places that aren’t on major waterways. The land routes are too difficult to travel. So many opportunities to make big money, I can only look and think, but dare not touch.”

He became quite animated on this topic: “Ideally, a traveling merchant transports goods that the other party needs, sells them, and then buys goods that his own side needs to bring back, so that neither leg of the journey is wasted. Especially now that they have their own ship, the waste of an empty hold is an irretrievable loss. But the reality is that very few cities have a mutual need for each other’s bulk commodities.”

“For example, the sugar produced in Guangdong can be sold at a good price in Jiangsu and Zhejiang, but the porcelain and silk of Jiangsu and Zhejiang are also produced locally in Guangdong. These daily necessities like porcelain are hot commodities when shipped to Tayouan across the sea, but the deerskin produced in Tayouan has little demand here. Tayouan’s deerskin is mainly sold to Japan, and the copper and silver obtained in return cannot be consumed by Tayouan itself and must be transported back to the mainland of the Ming Dynasty.”

“So when these goods are sold by small merchants, the cost of an empty return journey must be added. In addition, every time they pass through a port, the goods change hands, and the fees and commissions generated in the process cause the price of long-distance transported goods to remain high.”

Chen Huamin nodded. “That’s exactly what I mean. Now that the Australians have defeated the Zheng family, their influence extends from Japan and Korea all the way to Hainan and Annam. This allows us to arrange our goods and plan our arrival ports ourselves, and engage in long-distance trade. As long as we plan carefully and make reasonable arrangements to keep the ship from sailing empty as much as possible, we can earn greater profits with less cost.”

He spoke with excitement, picked up a piece of white paper, and began to scribble on it:

“Please look, you two. The Australians have a trading post on Jeju Island, where we can do business with Japan and Korea. From Jeju Island, we can sail south all the way to Longkou to trade Shandong’s goods, and at the same time, we can do bulk trade with Henan and North Zhili. From Longkou, we can sail south again to Shanghai, and then to Kaohsiung and Tayouan for trade. Then it’s a straight shot to Hong Kong. The Australians have great influence all along this route. Not only are the shipping lanes safe, but the facilities at each trading port are complete, the variety of goods is large, and most importantly, there are no countless ‘unwritten rules.’ Doing business is both pleasant and satisfying.”

“It’s a pity we can’t go to Tianjinwei, that’s a big port in the north…”

“Tianjinwei is not yet under Australian control, which is a bit of a pity. As long as it can reach the level of the Shanghai port, going to Tianjinwei is not out of the question.”

“If only the Australians could take Shanghai in one fell swoop, then we wouldn’t have to bother with the officials so much…”

Chen Huamin’s words were actually extremely bold and audacious, almost bordering on inciting rebellion.

However, Liu Deshan and Qin Haicheng had both witnessed the Australians’ capabilities and were not surprised by this at all.

Chen Huamin had made up his mind. “There’s no time to lose. While the news of Liu Xiang’s surrender hasn’t spread yet, let’s personally follow the ship on a trip and blaze this new trade route. It’s just that this time it’s too tiring. We’ve just come back and haven’t even caught our breath, and now we have to go out to sea again!”

Liu Deshan smiled calmly. “No problem. No pain, no gain! It’s just, what goods do you plan to carry and where are you headed on this trip?”

“I have a plan. Look,” Chen Huamin said, taking a large sheet of paper from his sleeve. It was a broadsheet newspaper that had recently started to be sold in Guangzhou, called the “Hong Kong Ship’s Cargo Price List.” It was published once every seven days and sold on the streets by children. This newspaper was equivalent to a commodity information bulletin. It mainly published the types, quantities, and transaction prices of goods transported to Hong Kong from various places for trade. It also published ship information, including the schedules, cargo, and hold space of trading ships on the routes. In addition, there was supply and demand information from various places. Although this newspaper was mainly sold in Guangzhou, it was actually edited and published by the commercial representative office of the Ministry of Colonization and Trade in Hong Kong.

Originally, although the merchants in Guangzhou were relatively familiar with Australian goods, or rather, Lingao goods, it was mostly through word of mouth. Few people had a comprehensive and systematic understanding of the details of the products. This “Cargo Price List” happened to meet the demand of large merchants for business information. In ancient society, the flow of information was very slow, and information on the supply and demand of goods was basically based on years of accumulated information. It was impossible to grasp timely, explosive information on supply and demand. Only a few large merchants could use the government’s post horse system to carry a small amount of information.

Lingao had the convenience of wireless telegraphy. Information on the supply and demand of goods from Japan to Manila could be instantly transmitted to all the ports under Lingao’s control, which was a great convenience for the circulation of goods.

Promoting the circulation of goods and encouraging merchants to transport and sell goods was the consistent policy of the Senate. Only when goods circulate can they create value. Otherwise, relying solely on the Senate’s own ships and designated merchants would be completely unable to meet the ever-increasing logistics demand. Moreover, the more frequently such commodity circulation occurred, the greater the various benefits the Senate would gain from it.

Chen Huamin opened the newspaper, which was already covered in circles and marks made with an ink brush. His finger slid quickly across it, then stopped.

“Look, a large batch of Leizhou white sugar has arrived in Hong Kong, and the price has dropped. But the price of white sugar in Zhejiang and South Zhili is very high. If we transport white sugar to Shanghai, we can make a profit! In Shanghai, we can load up on grain and transport it to Shandong, and make another profit!”

“Good!” Liu Deshan nodded. “Let’s set off right away.”

“In that case, I’ll take a share too.” Qin Haicheng took out a bank note from his drawer. “This is a one-thousand-tael note from Delong. It’s payable on demand and can be used directly as silver. Take it for your working capital. If you make a profit, just count me in for a share.”

Liu Deshan and Chen Huamin were overjoyed. They were, after all, small-time operators, and their working capital was very tight, especially after buying the ship. Now that a big shot like Qin Haicheng was willing to invest, they could do bigger business this time. More importantly, with this extra funding, they could take delivery of the new Dongshanju ahead of schedule. After all, equipping a new ship and hiring sailors also cost a lot of money.

The two thanked him and were about to go out to arrange for the ship and cargo.

“I’ll go and arrange to take delivery of the ship. Huamin, you go and inform the deputy boatswain to immediately assemble the crew, prepare food and fresh water, and get ready to board at Huangpu. We’ll use the new ship this time. Inform the deputy manager to have the men unload all the cargo from the ship overnight, then fill the hold entirely with Leizhou white sugar. Then go to Delong and have all the silver we have deposited there converted into bank notes to take with us.”

“Okay! I’ll do it right away!” Chen Huamin clasped his hands and hurriedly took his leave. Liu Deshan exchanged a few more pleasantries with Qin Haicheng. Qin Haicheng was very interested in the new ship they had ordered and asked him to pay close attention to its performance, as he also wanted to buy one for sailing to the South China Sea.

After seeing him off, he stood on the stone steps at the entrance and looked out at Shamian Island on the bank of the White Swan Pond. A small steam launch with large paddle wheels on its outer hull chugged past, belching black smoke and towing a long string of barges. Countless masts and sails dotted the river, some moving, some stationary. Ships were still loading and leaving, or stopping to unload, a scene of bustling activity.

“The Australians, oh, the Australians…”

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Guangzhou, Huangpu Port. The sky was clear for thousands of miles. A gentle autumn wind blew the white clouds into wisps, pushing them slowly from north to south. It was a crisp autumn day, a good day for going out.

By the pier, a brand-new three-masted sea vessel was docked at a berth. This ship was completely different from the surrounding ships. Although it still had some traces of a Guangdong junk, it was more like a European-style sea vessel: the hull showed typical Western shipbuilding techniques—a keel-rib structure, planked with long timbers, and then covered with pitch. The bow was sharper and deeper than any Eastern or Western ship, with a long bowsprit, and the lines of the hull were smooth and beautiful. At this moment, the low waterline showed that the ship was fully loaded with cargo. No matter how the tide beat against it, it stood firm, only occasionally rising and falling with the waves. The entire ship was decorated with red and blue ribbons, setting off the three large ink characters “Dongshanju” on the bow. Above the characters on the forecastle deck, an altar with offerings of a suckling pig, fruits, and wine was set up, indicating that the ship was holding a ceremony of worship, preparing to set sail.

“Big Boss…” Manager Liu gently called out to Chen Huamin, who was standing in front of the altar, looking at the sea. Chen Huamin came to his senses, waved his hand, and said to Manager Liu, “Don’t call me Big Boss, it makes us sound like bandits. From now on, just follow the custom of those Australians and call me ‘Boss’!”

“Yes, Big… Boss. The cargo and money on the ship have all been registered, and the Second… Second Boss has already checked and verified it.”

“Okay, I know.” Chen Huamin replied faintly, then turned back to face the sea.