YM778.TV Chapter 418 - Oil Comparison
Chapter 418: Oil Comparison
Translator: EndlessFantasy Translation Editor: EndlessFantasy Translation
In Yan Liqiang’s previous life, oil was no doubt the most precious commodity in modern society. Oil was the blood of the modern world’s economy. It was the source of wealth and foundation of industries. Without oil, society as a whole would come to a halt. In Yan Liqiang’s previous life, oil was often connected to the status of the country’s economy, influential families, and secret groups. It not only brought about massive wealth, but it also caused countless wars, joys, and separations. Countries fought over oil all the time. There was an old saying from an ‘old friend’ of China — Henry Alfred Kissinger once said, “Whoever controls oil controls the world.”
On the Silver Continent, the world that Yan Liqiang currently lived in, the value of salt was undoubtedly equivalent to oil in his previous life. In fact, salt was even more valuable than oil as one could live on without oil but it was impossible to live without salt. The mineral was the absolute protagonist in this world and was the largest trade commodity. The rise and fall of influential clans along with countless wars between countries and clans were all related to salt.
Similar to oil production in the modern world, places that could produce salt would acquire great wealth. In the Great Han Empire, most of the wealthy and influential clans were all connected to salt. In fact, salt tax was the primary source of income in the Great Han Empire.
In a world where martial prowess trumped everything else, the Great Han Empire’s bureaucracy did not monopolize the sale of salt. The salt trade was open to the public. In order to gain control and profit over the salt trade, the Great Han Empire invented a brilliant system by introducing the ‘salt note’.
The salt note had three functions — the first was for market admittance, the second was a tax receipt, and the third was a purchasing method.
If one produced ten thousand jin of salt annually, one would then need to purchase salt notes from the bureaucracy for ten thousand jin. Only then could one enter the distribution market legally. From the early stages of salt production, salt notes had been designed to undertake the function of tax collection and admittance approval. For example, when commoners bought a jin of salt, they could purchase a salt note for a jin of salt from the salt merchants. They would then present the salt note to the relevant salt management office to obtain a rebate for the salt. With this, the salt notes were once again returned to the hands of the imperial court.
Salts were categorized into upper, medium, lower and lowest grades. Different grades of salts could be purchased with different types of salt notes. Usually, a salt note worth a jin was equivalent to about fifty percent of the retail cost. Regardless, salt trading was still a profitable industry because the profit margin of the retail price against the production cost ranged between twenty to thirty percent. Even if the government took away half the profit, there was still around ten times the profit left for the salt merchants.
If salt merchants failed to produce salt notes to the commoners when they bought salt, the salts that was purchased would be considered as smuggled salt. Salt smuggling was a serious offense in the Great Han Empire. If a commoner reported that they had bought a jin of smuggled salt and it was verified to be true, they would be rewarded with a ton of gold which could make one rich overnight. As for the salt merchants, their houses would be confiscated and they would be sentenced with the death penalty.
With such a perfect management system in place, there was only a handful of salt smuggling cases.
Yan Liqiang did not focus on salt trading since he wasn’t after wealth. However, during his trip back to Gan Province, Yan Liqiang kept questioning himself on how he could accumulate massive power within the shortest amount of time. He saw group after group of wealthy salt merchants that reminded him of the history he read in his previous life on how Zhang Sicheng and Zhu Yuanzang ruled the world by smuggling salt. It was only then that the salt that he consumed on a daily basis suddenly came into his mind and got his thoughts running.
In his previous life, Yan Liqiang bought a few books on salt smuggling out of curiosity on how salt smugglers such as Zhu Yuanzhang were a huge part of history. At that moment, Yan Liqiang suddenly came to the realization that salt was an extremely valuable thing in ancient times. According to legend, the war between the Yellow Emperor and Yan Emperor was over the ownership of Xiechi Pool, a place for salt production. Eventually, the Yellow Emperor won the ownership of Xiechi Pool and became the hegemon of most tribes during that time. Before Zhang Sicheng, Huang Cao and Wang Xianzhi had almost ruined the country. They were all salt smugglers, including the devilish Cheng Yaojin. These were the groups that deeply influenced the historical trend of a few important dynasties in Ancient China.
Gan Province produced earth salt which was a type of brine salt. Due to the limitations of technology in this era, the processing technology of brine salt was not up to standards. The earth salt produced in Gan Province was of moderate quality and thus its value was much lower compared to premium quality salts such as blue and lake salts.
Fortunately, Yan Liqiang had read books regarding salt processing technology. Relying on his memories, Yan Liqiang prepared some simple tools and containers. He easily transformed the low quality earth salt produced in Gan Province into premium quality white salt in his room at the manufacturing bureau overnight.
The salt business was a much more profitable business compared to the four-wheeled carriage business. However, Yan Liqiang had not reached the influential status that was required in order to get him into the salt business. He might be able to get into the field on his own given a few more years. Unfortunately, time waits for no one and Yan Liqiang needed time more than ever now. Finding a strong partner and influencer within Gan Province would be the fastest solution and there was no better candidate other than Lei Sitong.
Not only was Lei Sitong the provincial governor of Gan Province, but Sun Bingchen also spoke highly of him. He was the perfect candidate in terms of capability and personality. Naturally, Yan Liqiang wanted Lei Sitong on his own chariot.
Both parties chimed in together on the money-making opportunity.
The salt production within Gan Province was not upscale. Local influential clans controlled the saltpans, including the ones outside Gan Province. In Yuntao County, there were a few small-scale brine mines. Yan Liqiang and Lei Sitong hashed out the details of their collaboration during their initial discussion.
Their first step following the collaboration was for Lei Sitong to gain control over Yuntao County’s existing or newfound salt mines. Yan Liqiang would supply manpower, capital, and the facilities needed for production. Lei Sitong would be responsible for the safety of the saltpans, provide help, and facilitate the marketing of the salt. Yan Liqiang would be in charge of marketing, and the net profit would be split in half.
It would take time for Lei Sitong to gain ownership of all the salt mines within Yuntao County. Although Lei Sitong was the provincial governor, he could not simply snatch all those salt mines and hand them to Yan Liqiang. In order to get involved in a trade bigger than oil, it was absolutely normal for preparations to last from half a year to a year. By the time they finished their discussion, it was already late so Yan Liqiang took his leave. He was then sent to the gate of the manor by Lei Sitong and a group of Pingxi Prefecture’s officials and squires ...
“Uncle Lei, there’s no need to send me any further...” After a long discussion, Yan Liqiang found that it was easier to address Lei Sitong as Uncle Lei.
“Liqiang, if you come across any trouble, you can directly look for Jianbei and Yucheng. Anyone who dares to look for trouble with you means they are looking for trouble with me. Anyone who dares to cause you pain will be hurting me too. My guillotine is ready for such people...” Lei Sitong smiled as he pointed at the newly-appointed Pingxi Prefectural Governor and Military Governor while making such an imperious statement. His words made countless people around them nervous.
“Alright, I understand. I’m afraid I will need to bother Uncle Lei and the two lords in the future...”