Written on the contract was that merchants would only be taxed thirty percent of their earnings. There are no other taxes besides that. It was an offer these two could not give up as taxes were usually much higher.
The reason for this is because merchants have no status. Take Jingzhou for example. Although the taxes were never declared, the merchants were actually taxed highly in order to pay the officials. These taxes also come from various checkpoints and presents.
Fatty Liang and Wu De have various stores around Jingzhou, all of which have granaries. These granaries were used to store food and also to avoid checkpoint taxes. For example, to enter Xiangyang, you need to pay thirty percent of the provisions you carry in as tax. You also need to pay ten percent as tax to the gate guard as a gift or you will be accused of various crimes. Another thirty percent when selling to anybody except for the Lord of Xiangyang. Last but not least, another ten percent as a gift to your patron. For example, Fatty Liang has an official that helps him in Xiangyang. This percent had to be paid another ten percent.
After adding in all the other expenses, it would be a miracle if Fatty Liang could even obtain forty percent of his earnings. Even during a year with bumper harvest, he could only obtain thirty percent.
On the other hand, Liu Mang only taxed them thirty percent. As long as they took out a receipt that said that they have already paid tax, they would not be obstructed at all. Of course, there would still be routine inspections. However, if one of the gate guards were to accept bribes, they can be reported to the government.
After counting in the travelling fees and other expenses, they could earn a sixty percent profit. This was a very high percentage which was why the two merchants were shocked.
This was only the first part. The second part was that the merchants that moved to Yangzhou would be exempted from taxes for the first three years.
Exemption from tax! This means they don’t even need to pay the authorities anything. Similarly, they can lodge a complaint to those that came looking for bribes.
Was such a good deal even possible? Fatty Liang and Wu De looked at Jia Xu with doubt.
Jia Xu nodded, alleviating their worries. The two had been worried that Liu Mang would go back on his words but Liu Mang would not do that because by placing them in the industrial areas, they would also be making money for Yangzhou except only for the first three years. If a person’s business failed in the first three years, Liu Mang would not do anything. Their losses is theirs to bear. On the other hand, if the merchants managed to obtain a good business in three years, they would be likely to stay for many more years. Yangzhou would also profit from those additional years.
The third part states that if a merchants were to invite other merchants in, they would receive half a year exemption from tax. The more people they invite to Yangzhou, the longer the duration. However, the condition was that these merchants had business of the same scale or even larger than that of the referrer. Of course, they would still be rewarded if the referred merchant’s business improved to a large scale one like theirs.
Fatty Liang had already started to make his plan. If they were to do business in Yangzhou, he would bring other merchants like him. Jingzhou prohibited selling provisions but not other goods. This is because Jingzhou obtains its wealth from trade. They would not be able to prohibit everything.
The fourth part was about government merchants. The government merchants are those that work for Yangzhou. For example, when Liu Mang wanted to sell cement for the other parts in Yangzhou or even Lujiang to use for buildings, dams and other things. These were all business. Liu Mang wanted a person with the mind of a merchant to operate these things. They would also be in charge of things like negotiating the prices of weapons.
“Wouldn’t you need to force someone to do this?” Fatty Liang and Wu De asked when they read about government merchants. It is explained that government merchants cannot do any other business. All their business properties are to be sold off and they could no longer do any businesses other than the one given by the government. This is to prevent them from using their own position for personal gains.
This was something that may attract small merchants but a merchant that already have large businesses would not want to part with it.
“Haha. Of course the benefits that would be willing to make you part with your businesses would be written at the back.” Jia Xu laughed as he sipped his tea.
Wu De continued to read and found the part where it said that government merchants that did a good job will be given noble titles.
“Title! Nobility!” The two of them became excited. They had worked hard to become nobles. Now, they would get titles on top of that. These were not things they even dared to dream of. The only other merchant to get a noble title was Lu Buwei.
Lu Buwei was a scheming wandering merchant that accumulated a lot of wealth. When Crown Prince Dao of Wey1 died, King Zhaoxiang named his second son Lord Anguo as Crown Prince. Lord Anguo had a favored concubine, Lady Huayang, who had no sons. Meanwhile, he also had over twenty sons, one of which was Zichu2. Zichu’s mother was Xia Ji and he was not loved very much. He was sent to Zhao as a hostage but even there, he wasn’t treated with much respect because Qin had repeatedly attacked Zhao. As the grandson of the King Zhaoxiang, his life was not plentiful enough at Zhao. Lu Buwei who met this Zichu during one of his business trips to Handan was extremely fond of him. He said that Zichu was a rare piece of merchandise that should be saved for later.
How is Zichu a rare merchandise? By helping Zichu, Lu Buwei eventually became prime minister. He was also the one that sponsored the Lushi Chunqiu so that everyone could read it. There was such a figure that obtained his own title. How many Lu Buwei could there be in this world? Most of them are just lowly merchants.
Now, Liu Mang had given them the opportunity to become a government merchant and obtain their own titles. A genuine way for them to break away from the lowest class in society.
“What are the requirements for a government merchant?” Fatty Liang licked his lips and breathed heavily.
“The two of you are worshipping His Highness and is working for the sake of Yangzhou. Aren’t you government merchants already?” Jia Xu smiled in reply.
“Ah!” Wu De and Fatty Liang did not expect happiness to come so suddenly. They never expected to already be government merchants.
“However, you are still not nobles and you do not have titles. Whether you obtain titles or not depends on your performance!” Jia Xu said to the two. If he were to satisfy them so easily, they would not have the motivation to work.
“We will definitely not disappoint Milord!” Fatty Liang and Wu De were extremely motivated. People with a desire would have motivation to work. The two merchants showed their motivation after hearing Jia Xu’s words.
The last part of the contract was of the guild. Liu Mang intends for the merchants to set up a chamber of commerce. It is a gathering of large and small merchants. The leader of this chamber of commerce has the right to meet with Liu Mang. They can declare a merchant’s requirement and duty like Liu Mang. They can also defend the rights of other merchants. Naturally, the leader cannot hold onto this position forever. They could only hold onto it for two years and they have to be elected by other merchants.
Liu Mang had raised the position of the merchants and even gave them a chance to be a noble.
“That’s right. Milord also said that for the merchants that move to Yangzhou, their children can follow and study in school. They would be taught by Confucian teachers. Whether they become merchants or take up official positions would depend on their assessment.” Jia Xu dropped another bombshell.
Unlike other children, the children of merchants cannot go to school. The schooling institutions wouldn’t accept them. However, these children could still receive lessons from private tutors. Unfortunately, no matter how much they studied, they would never be able to become officials. Liu Mang changed this. The children of merchants in Yangzhou would be able to go to school and even get better jobs. When this news spreads out, it wouldn’t just be the merchants in Jingzhou but the merchants all over the world that would jump at this chance.
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This is a different Wei. A smaller Wei that is commonly spelled Wey to differentiate between the two. https://en.wikipedia.org/wiki/Wey_(state) They use different characters as well. I put it as Wey here but I know for a fact that I probably won’t remember about this if it gets brought up again few chapters later and will put it down as Wei. So I thought I should just inform you all.
Zichu. Also known as Yiren. https://en.wikipedia.org/wiki/King_Zhuangxiang_of_Qin
