Royal Gold Medal County Magistrate

The two were silent for a while, sharing a sense of unease.

After all, it was their first time, and if something went wrong, they really wouldn't know how to solve it.

Seeing the atmosphere become somewhat silent, Fang Zheng said, "Your Highness, you didn't come just to deliver a gift, did you? Usually, people from the palace send them directly."

Li Yuanzhao raised his head, said "Oh," a couple of times, then slapped his forehead and said, "If you hadn't mentioned it, I would have almost forgotten. You didn't attend court today. I heard news from the border towns that the Northern Rong have moved their capital and changed their country's name. They even sent a special envoy to deliver a letter of credence."

"Oh, such a big deal. What's the country's name?"

"Um... the country's name is Jin, the Jin Dynasty, which is interesting. But that's not the most surprising thing. I heard that in the past two years, besides the usual supplies used by the Northern Rong people, the most common thing among them is books!"

The Jin Dynasty... sounds familiar...

Fang Zheng sighed inwardly and asked with confusion, "They like to buy books? What kind of books?"

What are the Northern Rong doing with so many books? They can't be eaten or used as weapons.

"Heh, it's funny to say, but they are the books that our scholars often read. Plus, they changed their country's name for no reason. Do you think... they are learning from us?" Li Yuanzhao asked.

After he mentioned it, Fang Zheng laughed.

It was not impossible. In his impression, 'Paba' was very cunning, open-minded, and paid special attention to many things about Da Jing.

If he had advised the emperor of Jin, this matter would not be surprising.

"Who knows? Let them learn if they like. They'll only see the surface, and sooner or later, they'll become fools," Fang Zheng said with a smile.

Li Yuanzhao also laughed: "Exactly, the Northern Rong people probably don't know that we now have cannons and firearms on the ground, and heavenly soldiers and generals in the sky. After a few more years, when the entire army is equipped with weapons, their proud cavalry will no longer be a concern."

"However, firearms and cannons are really too expensive. I heard that the Shenji Camp has only been half-equipped, and the Ministry of War has already started complaining to Father Emperor about being poor. I wonder when the cost can be reduced."

"If the entire army could be equipped with two muskets and two short pistols per person, what a sight that would be!"

Fang Zheng nodded silently.

Equipping the entire army is still far away. However, the Ministry of War is already complaining about being poor after only half of the Shenji Camp has been equipped, which is a bit shameless.

However, reducing costs is not something that can be solved in a short time. There are many links involved, including the output of raw materials, which all require the support of private forces.

"Your Highness, if you want to solve the cost problem, the best way is to open up merchants and let private resources flow naturally."

"In the past, the world was short of food, so these conditions were not available. But now there is no such problem at all, and I am also preparing to find an opportunity to write to His Majesty."

Li Yuanzhao frowned: "This matter is not easy to handle. Although I support you, the restrictions on merchants have always been like this since ancient times. I'm afraid Father Emperor and the civil and military officials will not support it."

Fang Zheng nodded: "That's what I thought too, but as long as it's the right thing to do, we must do it no matter what."

Not to mention the cost problem, the Age of Exploration is coming soon! Cultivating excellent private merchants, if not now, when?

It's just that he has been busy taking care of his wife recently and is not in the mood to deal with these things.

"Your Highness, why do you think the imperial court restricts merchants?"

"Merchants value profit, are rootless, and love ease. But I don't quite agree with the point of loving ease. The merchants in Banshan Workshop are all extremely diligent."

Fang Zheng said: "What Your Highness said is correct, but in my opinion, these are all superficial statements, just an excuse. There is only one problem with restricting merchants."

"What problem?"

"The imperial court cannot collect taxes, or rather, it is difficult to collect taxes."

Li Yuanzhao pondered: "Hiss... what you said makes sense, but do you have a way to collect taxes smoothly from merchants?"

"No."

"......"

Fang Zheng continued: "Your Highness, in my opinion, taxation is actually only a small part of the problem. When food is abundant, manpower will be released. At this time, the area of taxation will expand, and even if it cannot be fully taxed, it will be much better than before."

"But the key problem is that people's business is not smooth, and there are many restrictions from the imperial court. On a large scale, they cannot migrate freely, and on a small scale, people below use their positions to extort and rob. People cannot bypass these restrictions, and officials in the imperial court can use their status to make money wantonly, which is tantamount to competing with the country for profits and with the people for profits."

"Not to mention the distant past, let's just talk about the capital. Before the establishment of the Embroidered Uniform Guard, the petty officials at the city gates would easily let the convoys of high-ranking officials and nobles pass. If they encountered the trucks of ordinary merchants, they would inevitably have to extort a layer. After entering the city, every relevant yamen was not easy to deal with. After layers of deduction, the profits were already very little."

"And what about those with backgrounds? Naturally, they are doing well. How many big businesses in Banshan Workshop were started by ordinary people? Your Highness should know better than me, right?"

The imperial court's strong control over merchants will inevitably bring such problems. Wherever there is control, there must be rent-seeking, and rent-seeking corruption will inevitably follow.

Rent-seeking

Fang Zheng had a deep understanding of this, not to mention the early difficulties.

The merchant teams from Taoyuan County still use fake certificates, and they have to pay some tea money...

Li Yuanzhao nodded.

He knows Banshan Workshop best. Although it is very prosperous now, the real big shops and big businesses have more or less some background.

"So, we must untie the merchants, give them respect, and let them settle down. Then they can develop resources and compete with each other. Not only to build firearms, but the people of the world will benefit from it, and all costs may be reduced."

"Not only that, but many new products and ideas will be born in the competition, and these are all benefits to the country. At present, only when the imperial court retreats can the people advance."

Li Yuanzhao looked solemn: "What you said is good, but how can the imperial court be untied? It's simply impossible."

"Alas, I have no confidence in my heart. But if this matter starts with the Ministry of Revenue, there may be a glimmer of hope. Since I took over as the commander of the Embroidered Uniform Guard, I have been cracking down on illegal exploitation, and officials and merchants have been oppressing people with power. It is estimated that many people in the court are already dissatisfied with me."

"However, the Ministry of Revenue's income in the capital should have increased, after all, officials and merchants have all kinds of tax evasion methods, but the common people are much more honest!"

"If the Ministry of Revenue is willing to cooperate, then I am prepared to ask His Majesty to play, one is to untie the merchants, and the other is to expand the Embroidered Uniform Guard outwards to supervise illegal activities."

Today's Embroidered Uniform Guard is already very different from the Embroidered Uniform Guard in his historical impression.

Not to mention the scope of functions, the sphere of influence is only limited to the capital. Although the capital is the hub of the world, there are still few things that can be done.

Li Yuanzhao sighed: "I will naturally fully support you, but I still think the hope is slim. Tax evasion is prevalent, and morality is corrupted. This alone can negate everything."

"That's right, but we have to eat one bite at a time. I'll first find a way to get His Majesty to choose a place to start a pilot project. As long as the pilot project is successful, the follow-up will be easy."

"In the end, my colleagues in the court are too short-sighted. The pie can be made bigger and bigger. They themselves have huge advantages, and one day they will find that the biggest gain is not the people but them!"

Li Yuanzhao looked up and thought for a while, hesitating: "Um... um, but you said... if merchants are not restricted, will a huge merchant appear in the future, monopolize an industry, and affect the court?"

Fang Zheng stood in awe, the prince's sensitivity is amazing!

"Your Highness, it's not that they are not restricted, it's just that some restrictions are relaxed. And as long as the merchants monopolize the entire industry with their legitimate skills, the imperial court has no reason to suppress them, unless they use their positional advantages to maliciously oppress their peers. Otherwise, they will use the advantage of scale to constantly lower prices and exclude all competitors, which is the real monopoly."

"And if there is such a huge merchant, it will be convenient for us to collect taxes, he can't escape!"

Li Yuanzhao asked curiously: "Oh, you said the opposite, it should be a price increase, right? After the monopoly, there are no more opponents, shouldn't the price be increased to make huge profits?"

Fang Zheng smiled and said: "Of course, but raising prices is tantamount to cultivating opponents for yourself! Your Highness has forgotten what merchants are most afraid of, the public opinion of the world, we have newspapers and public opinion. Under the supervision of the imperial court, if they cannot use their advantages to maliciously attack their peers, then another competitor will soon take the opportunity to enter, so only using the advantage of price reduction is a smart approach."

"Of course, the situation of raising prices after the monopoly is not impossible. Unless... there is power to support it, can they be unscrupulous."

Speaking of this, Fang Zheng smiled and leaned into Li Yuanzhao's ear: "Besides, since ancient times, I have never heard of a businessman being able to turn the world upside down."

"If the business is small, it's theirs, if it's big, it's the imperial court's..."