Chapter 2420: Private Capital

"Would the landlord fatcats be willing? Sounds like there's not much guarantee."

"They definitely won't lose money, but leaders are needed. There happens to be a fatcat who got into a bit of trouble. Shall we chat together?" While speaking, Wang Kai instructed his secretary to let Shopkeeper Gu in.

Among the thousands upon thousands of natives and naturalized citizens surnamed Gu in Lingao, the most famous was undoubtedly this young man: Gu Baocheng.

During his years managing the Liaohai Trading House branch in Lingao, relying on his uncle-by-marriage's substantial financial backing and the Senate's "appease distant peoples" policy, he had basically made money lying down. Setting aside profits from selling goods—just from gradually selling off plot after plot of land that his uncle had instructed him to buy in the early years, he had made a fortune.

Though Gu Baocheng couldn't be said to possess any talent for commerce, he followed rules, kept a low profile, and hadn't caused his uncle any trouble.

After the Second Counter-Encirclement Campaign, Li Luoyou used the excuse of "war damage" to directly cancel the Lingao branch. So the Liaohai Trading House Lingao Branch transformed into "Tianbao Trading House," laundering itself directly into Gu Baocheng's private property—of course, his uncle secretly held shares and remained the behind-the-scenes controller.

Gu Baocheng's business in Lingao had been law-abiding. But in recent years, whether from Li Luoyou's tips or sudden enlightenment, he had gradually grown restless.

Not long ago, the Colonial Trade Department received a report forwarded from the Political Security Bureau that confirmed some situations Wang Kai had long suspected. This led to today's meeting.

Shopkeeper Gu's appearance, even by Senator standards, could be called "handsome." Usually he wore the composed, indifferent expression his uncle had trained into him. Only at this moment was his forehead incongruously sweating.

"Greetings, two Chiefs." Gu Baocheng bowed respectfully.

"Shopkeeper Gu, sit, sit." Wang Kai "warmly" invited. "I heard you encountered a bit of trouble in Japan? Why didn't you tell us? Maintaining maritime trade order is an important task of the Senate. You don't trust us."

"Though I lost a shipload of goods, the value wasn't too high. The Senators are busy with myriad affairs; I've troubled you too much already on ordinary days. So this time I thought I'd just let it go." Shopkeeper Gu knew the origins of various pirates. What he was worried about wasn't being robbed—it was being robbed by Senate pirates.

"Shopkeeper Gu, you're quite generous. Tens of thousands of yuan in goods, plus an H800 worth several thousand dollars—just let it go like that?"

Now Gu Baocheng was completely unable to hide his embarrassment. He was young after all and couldn't think of what to say, so he just blushed and said nothing.

Wang Kai still needed him for things and naturally wouldn't squeeze him too hard. He immediately softened his tone:

"This matter can't be entirely blamed on you. Our policy also hasn't been clarified yet, though there'll be regulations soon. But involving the Dutch, we still have to explain things to them in the end."

"Understood, understood. Actually regarding Japan trade, since the goods are all purchased by the Senate, and Japanese ports are gradually following Senate orders, it indeed shouldn't go through others' hands. Now whether it's merchants, or the Dutch and Portuguese, it's all just a mentality of earning whatever they can while they can."

Shopkeeper Gu grasped the core issue in just a few words. In the past, when the Senate's strength was insufficient and its reach limited, and they wanted to squeeze out the Zheng family, they could only share this fat meat of Japan trade with everyone. Now that the Senate's wings had grown fuller, they wanted to swallow it whole.

Gu Baocheng had followed his uncle for many years and understood government mentality perfectly well. So after a few words from Wang Kai, he immediately drew closer.

Wang Kai immediately felt he was quite sensible. He then said: "Of course, we Senators aren't purely seeking profit. Instead of burying this money in your cellars, it's better to let the Senate develop industry and agriculture. Then you'll have bigger ships and more goods to do business with. Our incomes will all increase by orders of magnitude."

After the dark talk, he still righteously saved face with proper words. Of course, these words weren't wrong either.

"I understand. This is called 'mercantilism,' right? I've audited Senators' courses. Obtain trade surplus, subsidize industry, further expand surplus. It's a virtuous cycle."

"Oho, not bad." Fatty Wang regarded Shopkeeper Gu with new respect. "But our mercantilism is still different from the West's—somewhat improved. We don't oppose the prosperity of diversified commerce. It's just that on the stage we've built, we can't give away the free profits either—that would be 'state-owned asset loss,' which is a serious crime here. As for safety on the stage, this kind of public good we do provide. The ship you had robbed—we got it back for you. The cargo payment—we'll give you the procurement price."

"Oh this... Deeply grateful for the Senate's great kindness!" Gu Baocheng hadn't expected to get the ship and cargo back. Now that Chief Wang was willing to be lenient, naturally he was overjoyed. He quickly stood to bow, but Wang Kai immediately stopped him. "No need for that."

Since Chief Wang was being so friendly and new policies had already emerged, Gu Baocheng decided to seize this opportunity to deal with a competitor.

"Chief Wang, you mentioned diversity. I also want to report some situations. Speaking of Japan trade, the diversity you mentioned is really quite diverse. Besides Senate self-operation, there's the Dutch and Portuguese, and us maritime merchants, and... er, some merchants under False Ming rule. The last category—their share isn't small. They're also utilizing the secure environment and goods organization that the Senate provides. Among them, there's no shortage of diehards."

"When did you learn about this?" Wang Kai wasn't surprised by his report—since ancient times, competitors were enemies. Having such an opportunity to take down competitors, Gu Baocheng certainly wouldn't and shouldn't pass it up.

"This, this, just learned, just learned." Shopkeeper Gu said quickly. "The past doesn't count. But now I see the Senate has firmly secured sugar and raw silk exports; for ceramics, the Senate's new products are already far ahead in both output and quality; on the sea routes, the Fubo Army Navy is naturally unrivaled; even the few open ports in Japan with trade are all Senate connections now. If you continue to let anyone enter freely, then I'll boldly say—that indeed counts as 'state-owned asset loss.' If you want to manage it, please manage it all—managing only some people is useless. But the Senators are far-sighted. Aren't you already planning to handle this? We will definitely cooperate without complaint."

"Damn, the Senate also has many accounts that can't be settled!" Senator Shi Jiantao, who had been listening, suddenly spoke up, scaring Gu Baocheng into sweating on his forehead again.

"Hahaha, organizational procedures still have to be followed." Fatty Wang quickly smoothed things over. "By the way, Shopkeeper Gu, write up a report on the Ming merchants' operations in Japan that you just mentioned and give it to me. This part of the data—our Foreign Intelligence Bureau calculates by subtraction. Let me see what your direct investigation shows."

"Yes, yes, I'll write it as soon as I get back." Gu Baocheng nodded repeatedly. "Just my knowledge is shallow. Some things are also hearsay. The report can only be..."

"Don't worry, don't worry. We're just using it as reference." To put his mind at ease, Wang Kai immediately produced the prepared reassurance:

"For Japan trade, profit is high, and we're not people who eat alone. We'll still leave you an opening. But it won't be like before, everyone swarming up and in the end no one making profit. You know Senator Shi from the shipyard, right?"

"Know, know. Long admired—the Lu Ban of our time." Shopkeeper Gu quickly stood to bow to Senator Shi.

Senator Shi felt a bit embarrassed and waved his hand with a smile.

"So you've also heard about the Nanyang Company?"

"Heard. As soon as the detailed regulations come out, I will definitely fully support it."

"The Nanyang Company belongs to matters the Senate urgently wants to do but can't quite manage. So we're bringing in private capital. In trade and transportation, we have similar difficulties. Insufficient shipping capacity means you and the Westerners have to ship for us. Even with restricted price differentials, shipping fees still must be paid. More shipping fees means less money for shipbuilding; less money for shipbuilding, while demand keeps surging, means even more shipping fees. This is a vicious cycle. You also know the Senate's trading company—half dead. Rather than calling it a trading company, better call it a transport brigade. Can't even finish shipping thirty to fifty thousand tons of grain annually. The entire Great Song's trade is basically just waiting for people to come to us."

"The Senate is hiding wealth among the people, not competing with the people for profit..."

MD, cultured people make everything sound so refreshing and refined, Wang Kai thought.

"But we definitely have to break out of this vicious cycle. Don't worry about flipping goods—I can tell you, next year we need to ship a hundred thousand tons of grain. So we need to build massively, even bringing in private capital. The efficiency of cutting-edge vessels is five times that of the H800. Commercially very attractive. The shipyard and trading company plan to cooperate on two plans. First type: private capital pays the full ship cost, the trading company handles operations, we provide capital for the goods, we decide what routes to take, you sit back and collect twenty percent profit. Second type: still private capital pays the full ship cost, we provide on-board personnel, but you're responsible for goods capital yourself. What to buy, where to sell—you decide. We take twenty percent of profit. For both plans, the shipyard will value ships at cost. The trading company and Naval Academy provide the sailors needed for operations. You can send necessary accompanying personnel."

"Then I'll boldly ask—the ships under the first plan and ships under the second plan must deal in different commodities and routes, right?" Shopkeeper Gu spotted the issue at a glance.

"Yes, that's what I mentioned about leaving you an opening to participate in some high-profit areas we plan to monopolize. The participation form is the first plan. This brings in the Trade Subdivision Bill I'm planning to implement."

"Then you must certainly have a limit on the number of ships under the first plan?"

(End of Chapter)