Xinshun 1730

Chapter 949 European Trade Area
As long as you are willing to delve into it, there are always more methods than difficulties.

It’s just that the words of the Dutch smuggler really touched the blind spot of Dashun Mariners’ thinking.

It's not that the merchants in Dashun are gentle, courteous and thrifty, the business is really fair.

The Dashun Western Trading Company is full of former smugglers, pirates, and criminals who should theoretically be hanged or put in a shackle.

The first pot of gold of more than one-third of major shareholders is not clean.Very unclean.

They have done murder, arson, smuggling contraband, bribery, robbery, armed tribute in Shuri Castle, kneeling and licking the shogunate to call His Majesty, and writing tribute forms to Nagasaki Mahogany.

It's just that Dashun's special national conditions hindered Dashun's thinking of smuggling talents.

The thinking of Dashun smugglers is determined by Dashun's special national conditions.

The only reason to hinder their smuggling is the policy of preventing the outflow of silver in various countries.

The goods are exquisite and cheap. What prevented them from smuggling to Japan before was only Japan's country-locking policy.

My goods are good, and the price of my goods is lower, so the only thing I have to consider is how to sell the goods.

This is the way of thinking.

But the way of thinking of the Dutch smugglers is different from that of Dashun.

The idea of ​​smuggling by Dutch smugglers is not to use high-quality and cheap high-quality products to defeat inferior ones.

It's "really confusing the real".

Take Chinese tea for example.

They are all Wuyi tea. Now they are placed in front of you, and they are brewed for you to drink. Which one do you think is legal?Which is illegal?
It is even possible that these two bags of tea grow on the same tree.

However, legally speaking, one bag is legal, and one bag is smuggled.

The living environment of the Dutch smugglers meant that they could not have the same thinking as the smugglers in Dashun.

The living environment of the Dashun smugglers also destined them to think differently from the Dutch smugglers.

Dutch smugglers pointed out sharply that the problem in Europe is that it is in a vicious competition of mercantilism, and that high quality and low price are not the first priority attribute for selling goods.If the free trade theory is true, Indian cotton cloth would have destroyed the British textile industry 20 years ago without China.

Of course, they also stated that they are beneficiaries of mercantilism and believe in the philosophy of free trade in their hearts, but they clearly support mercantilism.Where would the good old days of smugglers be without mercantilism?

So in this environment, they have a set of special routes for smuggling that are "applicable in Europe and only applicable to smuggling in China".

Europe cannot be replicated.

There are two prerequisites for this "reality" smuggling method.

First of all, it is necessary to be able to imitate or obtain products that are exactly the same as the real ones from various channels.

For example, Chinese tea, silk, and porcelain are forcibly divided into legal and illegal.

Then it can be used in a real way.

The second point is that the fake must be cheaper than the real one.

Needless to say, tea, evading British tariffs, is of course cheaper than legal products; and cotton cloth, which can only be made in China, cannot be made in other countries.

China can make shoddy Manchester cotton that looks exactly like the "real" one and it's cheaper.

Not the Netherlands.

Not to mention that it cannot be made, even if it is made, it is absolutely impossible to be cheaper than the British genuine product.

Then it doesn't make sense.

In short, if you use pyrite to pass off brass, you will certainly be seen through; but if you use gold to pass off brass, you will also be seen through.

So what the Dutch smugglers mean is that Dashun, you guys, don’t always think that if you use gold to squeeze brass, you will be invincible, and economic laws can’t beat the administrative orders of governments of various countries.So you should exchange gold for brass elsewhere, and I will sell brass in, and because of the protection of mercantile tariffs, brass can be sold at the price of gold in the UK.

The leader of the Dutch smugglers also said that this business was tailor-made for Dashun.

There is no shortage of wool in Dashun; why is there a shortage of wool in Mongolia?
Hemp, Dashun is even less likely to be missing, the etiquette of wearing hemp and filial piety is here.

Dashun does not lack cotton textile technology.

Being able to make bad things doesn't mean it can make good things.

But what can be made good must be able to make bad ones.

Dashun wants to open up the smuggling market in the UK. What it needs to do is not to upgrade its technology, with lower prices and higher quality, but to downgrade its technology, from high-quality cloth to low-quality cloth.

The smugglers in Dashun are not stupid, but they are limited by the special national conditions, and their thinking is not suitable for the special situation of the European market.

It's just that they feel that even if it's smuggling, the technology must be upgraded to be better. How can they imagine that if they want to smuggle, they need to downgrade the technology first?
After getting such a point from the Dutch smugglers, it was as if the clouds had cleared up, and Mao Sai suddenly realized.

Dashun can grow any dyes that can be grown in the UK; Dashun can certainly do any color that can be dyed in the UK.

Now, the daily salary of British female workers is about 6 pence, 180 pence a month, which is equivalent to two and a half silver a month.In this Dashun, it is the monthly salary for soldiers to work hard.

The price is also earned.

Dutch smugglers naturally had the price of cotton cloth in Manchester, England.

Blue cotton was 14p a yard, striped cotton 15p a yard, cheap calico 28p a yard, fine dyed 50p a yard.

On Dashun's side, the purchase price of these dealers is about 17 renminbi a foot for things that are of similar quality to blue cotton cloth, and the cost price is lower, so it is more convenient to calculate, and it is 20 renminbi.

A yard is about three feet.

A tael of silver is considered a thousand dollars.

80 pence is one tael of silver, one thousand cash, and one penny is equivalent to 12 pennies.

The blue cotton level cotton cloth in Dashun is priced at 60 cents a yard, 5 pence.

In the UK it's 14p a yard.

After all the calculations, the difference is actually similar to the price of food, three times the price of food and three times the price of cloth.

If you engage in low-quality substitution and manual workshop production, plus shipping costs, the 150% profit is still very stable.

Although it is less than 450% of tea, but for the shareholders of Dashun, as long as the profit margin exceeds 50%, it is acceptable.

For a one-and-a-half to two-year cycle, the equivalent annual interest rate of 25% is completely acceptable.

If technological progress is not considered, in fact, Dashun is now earning a "price revolution" price difference.

If, as imagined by Hume, Adam Smith and others, the per capita silver deposits of various countries are roughly balanced through full trade, Dashun will not be able to hit the European market very well, at least it will not completely collapse the European textile industry. "Confidence.

Of course, the surge in productivity that comes with technological advances is another story.

It's just that under the reality of the current technological progress and the existence of the price revolution, Dashun can still completely collapse the European textile industry in terms of technological level and production efficiency at this time.

But the premise is that it can be sold.

Free trade is obviously unrealistic, it is a fairy tale world.

Since the real world does not exist, there are only two means.

smuggling.

Or destroy its machine of state violence.

Liu Yu is a violent free trader.

Dutch smugglers are a micromanager.

Although the means of the two are different, the purpose is the same, and both are trying to solve the problem of how to "sell in".

The Dutch smugglers saw one thing very clearly: cotton cloth replaced woolen cloth, which is a historical trend.

As gold and silver replace shells, bronze replace stone.

The Dutch smugglers who have grasped this point are also very concerned about this matter, and they also hope to find new profit growth points for their smuggling business.

In terms of business, from the perspective of purely commercial profits, Dutch smugglers attach great importance to the new business of cotton cloth smuggling.

Because of that historical trend, it was the Dutch businessman who came to the conclusion after comparing Indian cotton cloth, Songjiang cotton cloth, Jinling cloth and Manchester blended cotton.

At this time, the best imitation camel wool in England costs only 10 pence a yard.

And the Manchester blend, the worst cotton the Dutch smugglers had ever seen, was still the cheapest at 15p.

What's even more outrageous is that the UK has a "luxury tax" on its own cotton cloth, and a luxury tax of 3 pence per yard is added.

At the same time, strict control is implemented on Chinese and Indian cotton cloth.

In this case, however, the cotton cloth in Manchester still sells well, and the high-end imitation camel woolen, which costs nearly 8p a yard less, still declines every year.

Wool is suitable for military uniforms and overcoats, and it is really straight.

But it is really uncomfortable to wear on the body, and staining is also a big problem.Besides, the coat can be made of wool, and the pants and close-fitting can also be made of wool?

Cotton can be dyed in various patterns.

Wool is either solid color or check pattern, and even in later generations, it is rare to see woolen dyeing with particularly bright colors.

The British East India Company opened the door to the New World to the British people through the early imports of Chinese and Indian cotton cloth, and then never returned.

Even such strict bans, severe penalties, and even increased luxury taxes on domestic blended cotton textiles still cannot stop the popularity of cotton cloth.

Food, clothing, housing, and transportation, clothing ranks first, knowing shame is the beginning of a person, and it is also the biggest expense after a little money.

British cotton began to rise, which also shows from the side that the British people already have some money in their hands.Although there are not many, it is also possible to give up cheaper woolen cloth and pursue slightly more expensive cotton cloth.

Those who can afford tea must be able to afford cotton cloth—this is the confidence of the Dutch smugglers in the market and their groping for the laws of the market.

Governments can defy economic laws to some extent, at least temporarily.

The smugglers, on the other hand, were the ones who had to master the laws of the economy. They were one of the people who had the deepest understanding of the laws of the economy at this time.

In addition to the expectation of a broad market prospect, there is another point, that is, the Dutch smugglers are planning for a rainy day.

The British tea tax may be abolished.This point has been debated in Britain many years ago.Dutch smugglers kept an eye on British political dynamics.

Once the tea tax is cancelled, it will be a fatal blow to smugglers.

But cotton and tea are different.

The tea tax can be abolished, because there are no tea growers in Britain, and there are no hundreds of thousands of people who live on the tea industry.It doesn't even have anything to do with the silver outflow, because the smugglers have been busy, creating a fait accompli.Only related to government taxation.

However, it is impossible to cancel the cotton cloth tax, because it is not only the cotton textile industry that has just started in Manchester, but also the wool textile industry that is the foundation of the British enclosure economy.

If you dare to cancel today, you will get Cromwell tomorrow.

An excellent smuggler must know how to predict economic laws and understand the relationship between tariffs and the living conditions of classes in other countries.

Therefore, the best smugglers in the Netherlands have already begun to make arrangements and preparations in advance for what to do after the "abolition of tea tax".

Only the industries that must be protected by high tariffs are the important profit growth points of the smuggling business.

No tariffs, no smuggling.

This time, the cargo ship of the Dashun Western Trading Company arrived in Europe, accompanied by the opium case, which made the smugglers in the Netherlands very worried. The cancellation of the tea tax was imminent.Therefore, he is particularly concerned about the smuggling of cotton cloth, and when the sky is not rainy, he will plow through the mulberry soil and prepare for it.

(End of this chapter)