Chapter 291: Northern Frontier Bank, Slave Trade
On this day, a massive caravan departed from Datong Prefecture, heading north along the official road.
If questioned by officials on the road, the caravan steward would claim they were delivering military grain to the Jiehao Defense Line.
They even produced a certificate issued by a major figure in Datong Prefecture, so the local officials naturally did not dare to stop them and let them pass directly.
Looking at the officials behind them who had taken some silver and were delighted.
Fan Zhongxin only felt that the exorbitant tribute paid to that major figure was not wasted.
They took a lot of money, but they really got things done!
Heading north, the surroundings grew increasingly desolate. When still dozens of li from the Jiehao Defense Line, the caravan left the official road and entered a more remote path.
This road was specially found for Fan Zhongxin by that high official in Datong Prefecture. Few people passed by usually, and the pass commander was that major figure’s confidant.
The Jiehao pass was just a hundred zhang ahead, with cliffs on both sides and only a single passage in the middle. Several Jin soldiers holding spears guarded there.
Fan Zhongxin sat in the horse carriage, sweat beading in his palms. This was his first time doing smuggling business. Though he had greased the wheels early, his heart still hung in his throat.
“What’s in the carts?”
The pass commander walked over, his gaze sweeping across the caravan, his tone carrying the perfunctory air of routine duty.
“Replying to the officer, some wood.”
Fan Zhongxin smiled as he dismounted, handing over a heavy money bag: “Just chopped from the mountains, transporting to the grassland to trade for some fur.”
The commander weighed the money bag, a knowing smile tugging at his lips, and waved for the soldiers not to inspect.
He merely glanced casually at the cart’s contents, the top layer covered with fresh branches, green and leafy.
No need to check beneath the branches.
“Alright, go on.”
Fan Zhongxin felt half his tension ease, thanking profusely.
As the wheels rolled through the Jiehao pass, he could not help looking back. Crossing this defense line meant stepping out of Jin Dynasty territory.
Only when the caravan was far away did Fan Zhongxin heave a heavy sigh of relief, his back shirt soaked with cold sweat.
But immediately after, an irrepressible excitement surged up.
He patted the grain sacks beside him, all filled with sorghum rice.
In Datong Prefecture, one shi cost only two strings of copper coins, but on the grassland, it could jump to ten strings in an instant.
“Five times the profit…” he muttered lowly, his Adam’s apple bobbing.
This profit was enough to drive anyone mad, even if sixty percent went to honor that major figure in Datong Prefecture, and plenty more was spent bribing these “little ghosts” along the way.
Subtracting the costs of carts, horses, and labor—for which he paid the workers several times the usual wage to make them willing to risk beheading.
All in all, netting double the profit per trip would be good.
On the return, the caravan could load up on grassland cattle and sheep hides, cistanche, astragalus, and other rarities, fetching another fortune back in Datong Prefecture.
At this moment, light gleamed in Fan Zhongxin’s eyes. Even risking his head for this was worth it.
Leaving the Jiehao Defense Line, the grassland ahead grew ever more vast, the wind carrying the mixed scent of grass and livestock dung.
This was already Wanggu Tribe territory.
This tribe was always known on the grassland for being “pro-Han,” closely tied to the Jin Dynasty, but ultimately nomadic, with grain forever their weakness.
This morning, as the caravan rounded a dirt slope, urgent hoofbeats came from a distant shrub cluster.
Fan Zhongxin’s heart tightened; looking up, he saw over fifty cavalry charging out amid billowing dust.
All clad in leather armor with sabers, holding bows, arrows, and spears.
“Wanggu Tribe cavalry.”
Hearing the guide’s shout, Fan Zhongxin instinctively tensed, but kept a calm facade.
He had seen Northern Frontier Iron Cavalry breach Gaochang City gates, their overwhelming charge more terrifying than thunder. These Wanggu Tribe cavalry were fierce but still lacked that edge.
Unfortunately, he was just a merchant. Silver worked on Jin officials, but against these horseback nomads, he was outmatched.
He could only turn to Old Six beside him.
Old Six remained steady as a rock.
He pressed Fan Zhongxin’s shoulder, jumped off the carriage, and pulled out a blue wolf banner from his bosom—the Kereit Tribe token recently sent by Hu Li.
The banner unfurled in the wind, the grayish wolf head glaring ferociously.
He waved it at the Wanggu Tribe cavalry and had the accompanying translator shout loudly.
“Wanggu Tribe warriors, we are not enemies. We are sent by Kereit Tribe’s Ong Khan to deliver grain—we are family.”
Hearing the grain was for the Kereit Tribe, the Wanggu Tribe cavalry’s ferocity softened.
They reined in their horses one by one, faces turning solemn.
Though the Wanggu Tribe was close to the Jin Dynasty, the Kereit Tribe was the grassland overlord. Unless desperate, Wanggu dared not provoke them.
Moreover, not long ago, the Kereit Tribe allied with Zhamuha to rout Temüjin at Helanzhen Shatuo.
They showed clear momentum to unify the Northern Desert—who wouldn’t be wary?
The lead cavalry muttered a few words, waved his hand, and the group parted to both sides, clearing the path.
Fan Zhongxin sighed in relief but did not urge the caravan forward immediately.
He knew trade routes relied on long-term relations, and these Wanggu Tribe people could be key customers later.
He immediately had two shi of grain unloaded, gesturing with a smile to the Wanggu Tribe cavalry: “A small token, to fill the brothers’ stomachs.”
The lead cavalry’s eyes lit up; he laughed heartily, expressing thanks.
Fan Zhongxin waved it off, directing the caravan to continue.
The rest of the way, Old Six hung the Kereit Tribe’s blue wolf banner at the front of the carts. Scattered tribe cavalry encountered along the way dared not intercept.
Two days later, as the caravan traveled through wilderness, a large force of cavalry suddenly appeared from behind a hill ahead.
A dark mass pressing tightly toward the caravan.
Fan Zhongxin’s heart leaped to his throat, but Old Six slightly relaxed.
“No need to worry, these are Kereit Tribe troops.”
Soon after, outside the Kereit Tribe’s southern border camp, Sangkun rolled sorghum grains between his fingers, exclaiming repeatedly: “Good! Good! With this grain, let’s see who still wants to follow Temüjin and starve.”
He then turned to Hu Li standing nearby, his laughter full of glee: “You Northern Frontier folk truly understand Grasslanders’ minds. This grain is far more practical than those shiny stones.”
Hu Li cupped his hands with a smile: “As long as Your Highness is satisfied. The Great Protector said that if the Kereit Tribe needs more, the Hexi Merchant Guild will send it.”
He shifted tone, glancing at the female captives tied with ropes in the camp corner: “Only, I wonder when Your Highness plans to hand over those female slaves? The Hexi Merchant Guild caravan is waiting in the northern mountain valley.”
Sangkun grunted, waving for his guards: “Bring all those Kiyan tribe women over for the Northern Frontier people to tally.”
Watching the guards depart, he said to Hu Li: “Keeping these women just wastes grain. Trading for your grain is a good deal.”
A glint of amusement flashed in Hu Li’s eyes.
Meanwhile, the Hexi Merchant Guild caravan completed the handover with Fan Zhongxin’s caravan outside the camp.
The Hexi Merchant Guild steward directed workers to unload bags of fur and bundles of herbs—these bulky items were acquired from the Kereit Tribe.
Only small, easy-to-transport, valuable goods were specially brought from the Northern Frontier.
Colored glaze, fire starters, soap, rouge, and so on— all unique Northern Frontier products.
“Shopkeeper Fan, though it’s our first business together, please trust the Hexi Merchant Guild’s credibility is guaranteed.”
“The value of these goods will surely match the grain you brought.”
The speaker was a middle-aged man, the Hexi Merchant Guild steward in charge of Northern Desert Grassland business.
He pointed to the goods with a laugh: “Especially this rouge, made from the finest safflower in the Hexi Corridor—worth a fortune in the Central Plains.”
Fan Zhongxin picked up a mirror, seeing his clear reflection inside, then rubbed a piece of soap with water; its degreasing effect amazed him.
He dabbed some rouge on his fingertip; the vivid yet refined red made his eyes shine, muttering nonstop: “Rich, rich!”
“Bring these to Monan, and those nobles will fight over them?”
Workers busily loaded the goods onto Fan Zhongxin’s empty carts; he stroked a smooth glass lamp, grinning ear to ear.
Sheepskin and herbs could earn good money, but profits were predictable—others had channels too.
What truly thrilled Fan Zhongxin were these Northern Frontier rarities.
Selling them in the Central Plains could net at least ten times the profit.
These were currently only in his hands.
As the sun set, all three parties wore satisfied smiles.
The Kereit Tribe got grain, Fan Zhongxin made money, and the Hexi Merchant Guild bought a large batch of female slaves.
These female slaves would all be sent to the Western Sea, former Naiman Tribe territory.
In the Battle of Naiman, though many Naiman women were captured, they were distributed to Six Garrisons officers and soldiers; now many had borne Han bloodline children.
Last year, Li Xiao migrated two myriad household worth of Gansu Han people to the Western Sea, including many soldiers and civilian laborers. Local Naiman women alone could not meet the settlers’ family needs.
So, they had to continue raiding or buying female slaves from the grassland.
“Steward, look at how many people are following behind?”
A Hexi Merchant Guild worker gaped at the throng of shadows trailing the caravan.
Just entering Western Sea territory, the caravan was surrounded watertight by arriving soldiers and civilians, excited murmurs rising from the crowd.
“All brothers hoping to claim a wife.”
The steward laughed: “This errand solves an urgent need.”
A young man in the crowd squeezed to the carts, voice trembling: “These women… really just eight strings to claim?”
The steward smiled: “Young ones eight strings, older ones five strings—no deception.”
“Look at these misses—nimble hands and feet, proper looks. Take one home, she’ll bear children and manage the household.”
These female slaves were handed over at the Kereit Tribe camp for just three strings three hundred cash for the young ones; older or too young ones two strings of copper coins.
Now in the Western Sea, prices more than doubled, yet the Hexi Merchant Guild barely profited.
After all, food, waste, and losses en route all factored into costs.
As long as they didn’t lose money, it was fine—the Hexi Merchant Guild’s purpose wasn’t profit.
These female slaves sold out quickly in the Western Sea.
Even if immigrant commoners lacked money, no problem.
They could buy on credit.
Moreover, saddling these commoners with debt was Li Xiao’s intent.
Pressure motivates effort for the Northern Frontier.
He migrated them to the Western Sea not to idle.
For these Kiyan Tribe female slaves, marrying Northern Frontier Han men was a good thing.
In their former tribes, few besides nobles ate their fill.
They went hungry meal to meal, digging wild veggies and grass roots.
Now in the Western Sea, with relatively fair resource distribution, at least they could eat their fill.
……
Dragon City, inside the Great Protector’s Mansion.
Summer had arrived; the Central Plains sweltered, but Northern Frontier winds still carried chill.
Li Xiao wore a black robe with dark embroidery at collar and cuffs, sitting in the head seat’s wooden chair, idly tapping the table with his fingertips.
On the table lay several coins.
These were sample Northern Frontier New Currency just minted at Tang Valley Steel Plant.
The Northern Frontier Great Protector’s Mansion was only two years old, everything awaiting development, and most of that time spent in external wars.
Now, Li Xiao finally had time and energy for currency reform.
Long plagued by chaotic currency in the Northern Frontier.
Mostly war spoils.
From Jin Dynasty, Song Dynasty, Xia Kingdom, royal courts, Eastern and Western Kara-Khanid Khanate—even far western coins circulated.
No unified standard.
Previously, with few people, goods flowed via barter.
Now, with 500,000 Gansu Han people moving north, commerce boomed.
A unified currency standard was essential.
“The Northern Frontier needs its own currency,” Li Xiao said.
Thus, orders went to the Armaments Department.
The Armaments Department managed Northern Frontier heavy industry: armor, farm tools, all ironware from them.
Minting mere coins was trivial.
The challenge was design.
For this, Li Xiao personally named the Northern Frontier New Currency.
Northern Frontier Treasure!
Now, Armaments Department Staff Officer Li Dongzhi stood nearby, introducing the table’s ‘Northern Frontier Treasure’ samples.
First, copper coins: round outer, square inner.
This shape used by Huaxia for a millennium had its reasons; Li Xiao saw no need to change.
Too big a step risks problems.
Only the specific design was recast.
Copper coin obverse read ‘Northern Frontier Treasure’ in large characters; reverse had two characters and two patterns.
Left pattern a round sun, right an arched moon.
Top a ‘one’ character, bottom a ‘wen’ character.
One copper coin equaled one wen.
Finance Department Assistant Han Jiuyuan examined the copper sample closely, tapped it lightly, and nodded slightly.
He asked Li Dongzhi: “Staff Officer Li, what is the copper-lead ratio of this Northern Frontier Treasure?”
Li Dongzhi said: “Sixty percent copper, thirty percent lead, ten percent tin.”
Hearing this, Han Jiuyuan thoughtfully said: “Similar to Song Dynasty coins.”
Li Xiao interjected: “Copper coin minting is for circulation, not beauty.”
“Not that higher copper content means more value.”
Later economics had Gresham’s Law.
When equally priced currencies have different real values.
Common people hoard or melt better good coins.
Bad money drives out good in circulation.
Thus, Northern Frontier Treasure’s value need not be too high—matching Song coins suffices.
This copper-lead ratio was strictly controlled by Li Xiao, ultimately for circulation.
Hearing Li Xiao’s simple explanation, Han Jiuyuan was deeply shocked, admiring him more.
He was clever; era limited his vision, but he grasped these concepts instantly.
Next, Li Dongzhi picked up a second coin: “Assistant Han, these four coins were personally designed by the Great Protector.”
“Copper coins match the value of current foreign coppers.”
“This one in my hand is called ‘small silver coin,’ worth one hundred copper coins.”
This silver coin was much smaller than copper, also round outer square inner.
Obverse ‘Northern Frontier Treasure,’ reverse sun and moon emblem and ‘one hundred wen.’
Commoner trade used copper mainly; gold and silver for bulk deals.
Rough exchange: one thousand wen copper for one tael silver.
Ten tael silver for one tael gold.
But denominations often didn’t align; merchants clipped silver taels with scissors, weighed scraps on scales, sealed with wax.
Even bit to test purity—utterly troublesome.
Thus, Li Xiao designed two silver coin styles.
Large silver coin worth and priced at one tael silver, exchanging for one thousand wen copper.
Small silver coin equaled one hundred wen copper.
Mandating prices and standards eased circulation.
The last was gold coins.
Reverse marked ‘ten thousand wen,’ equaling ten thousand copper coins.
After Li Dongzhi’s introduction, Han Jiuyuan said admiringly: “The Great Protector’s plan is comprehensive; we cannot match it.”
As Finance Department Assistant, he handled money, grain, and taxes.
Northern Frontier currency reform tied closely to his work, so Li Xiao summoned him for input.
Beside Han Jiuyuan sat a man around thirty.
He wore a gray robe, cuffs washed faded but neat, demeanor steady and poised.
He was Cui Benchang, formerly head shopkeeper of a money house in Liangzhou City.
When Liangzhou City fell, the Dangxiang officials behind the money house were expropriated and executed by Northern Frontier Army.
Losing his backers, he joined the Northern Frontier Army’s migrant train to Jin Prefecture.
Picking up hoe and whip anew as a commoner.
Recently, Li Xiao ordered all skilled in money house operations and calculations to gather in Dragon City; passers would get key posts.
Hearing this, Cui Benchang seized the chance to change his fate.
Through rounds of selection, he caught Li Xiao’s eye.
Not only adept at abacus, he knew regional silver flows intimately—even Liao State and Khwarazm exchanges came fluently.
Rarest, he dared think and act; in his interview with Li Xiao, he boldly proposed “silver-for-coin, linking north-south trade,” impressing him.
Li Xiao’s gaze fell on Cui Benchang, pointing to the table coins: “Shopkeeper Cui, how is the quality of this Northern Frontier Treasure? Can it support establishing our Northern Frontier money house?”
Cui Benchang rose quickly, scrutinizing a copper coin, weighing the silver and gold, face showing praise.
“Replying to Great Protector, the coins have even alloy, clear patterns, neat edges. Building a money house on this foundation will be rock-solid.”
Li Xiao nodded: “For opening Northern Frontier money house, has Shopkeeper Cui considered everything?”
Cui Benchang nodded slightly, hand to chest: “Northern Frontier spans vast lands, from easternmost Yudu Jin Mountain to westernmost Lake Balkhash—over ten thousand li.”
“Merchants traveling find silver heavy and risky. A cross-regional money house for universal deposit and exchange would multiply commerce several times, greatly easing army and civilian life.”
He paused, tone more solemn: “But as Great Protector said, finance concerns the nation’s foundation—credit is paramount.”
“Thus, Northern Frontier money house must not fall into private hands.”
Approval flashed in Li Xiao’s eyes; he gestured to continue.
“This subordinate believes the main Northern Frontier money house in Dragon City, with branches in Wuwei, Western Sea, Gaochang, Ting Prefecture, Yin Mountains, Yili—laid out ‘military strongholds as points, trade routes as lines.'”
Cui Benchang straightened, voice brightening with excitement.
From youth gifted in math and currency, he was a minor child prodigy.
At twenty, head shopkeeper of Liangzhou City’s largest money house.
Now valued by Li Xiao, he regained his old confidence.
“Dragon City head office needs three halls: Deposit Hall for storage and redemption, Remittance Hall for inter-branch transfers, Note Hall for issuing circulable ‘Dragon Notes.'”
“Each branch with two-plus silversmiths to verify coin purity against fakes, plus ten veterans as guards—credibility guarded by saber and spear.”
Listening to Cui Benchang’s exposition, Li Xiao had decided.
This man was perfect as head shopkeeper of Northern Frontier money house.
He gestured Cui Benchang to sit, saying gravely: “Money house sounds poor—needs changing.”
“In my Northern Frontier, wine sellers are wine shops, cloth sellers cloth shops, traders trading companies.”
“Silver business is bank.”
“You will be head shopkeeper of Northern Frontier Bank. Discuss staffing and silver reserves with Assistant Han as needed.”
Cui Benchang’s heart jolted; he rose and bowed deeply, voice trembling with emotion: “This subordinate will give his all, not fail the Great Protector’s trust!”
Seeing his resolve, Li Xiao nodded: “Dragon City head office’s Note Hall on hold for now.”
“Northern Frontier Bank first smooths silver matters; notes too soon.”
Cui Benchang showed disappointment but nodded: “This subordinate obeys.”
Note Hall issued silver notes.
Earlier, he proposed to Li Xiao “silver-for-coin, linking north-south trade.”
Using notes to replace heavy silver for easier goods flow.
He even planned note issuance, impressing Li Xiao.
But notes relied on state and money house credit.
Nor was it his invention.
Song merchants first created ‘jiaozi,’ then Jin court issued ‘jiaocha.’
Both hugely impacted society.
Especially Jin ‘jiaocha’—to counter Song Northern Expedition, Mongol south invasion, plus disasters, rebellions.
Jin court overprinted ‘jiaocha,’ causing severe inflation.
One shi grain reached ten strings copper price.
To Li Xiao, notes aided commerce but needed caution.
His plan: build Northern Frontier Bank system first, habituate army, civilians, merchants to Northern Frontier Treasure.
Backed by Northern Frontier credit, then time for ‘Northern Frontier Dragon Notes.’
