Chapter 187: Just the Beginning
He Chengzhe followed Wang Gui up the steps, bowed, glanced at Gu Yan, and cupped his hands, saying, “There are some old matters that I need to discuss with Young Lord in person.”
Gu Yan looked at He Chengzhe. He Chengzhe met Gu Yan’s gaze and smiled, “Young Lord must listen.”
“Alright, since they are old matters…”
“It will take a while. Why don’t Young Lord rest at He Ji and have some tea?” He Chengzhe pointed to the He Ji Old Brand next door.
“Mm.” Gu Yan signaled Wang Gui and the others to watch, then turned and headed towards the He Ji Old Brand.
Gu Yan stood at the entrance of He Ji, not going further inside.
He Chengzhe personally moved a chair from the doorman’s room, brought another small chair, and then a small square table. He Ruiming, having received the news, hurried over with a teapot, teacups, tea leaves, and a small, bright red clay stove.
Gu Yan sat on the chair, coldly watching He Chengzhe unhurriedly boil water, scald the pot and cups, then brew a pot of tea and pour two cups.
“Young Lord taking action today must mean you have thoroughly investigated and clarified everything, and obtained all the account books and figures you needed.” He Chengzhe looked at Gu Yan and got straight to the point.
Gu Yan looked at He Chengzhe with a half-smile, saying nothing.
“Besides investigating and clarifying, Young Lord has also made preparations for the aftermath, such as for the porters at the wharf.” He Chengzhe continued.
Gu Yan leaned back against the chair back, watching He Chengzhe in silence.
“The Silk Guild evaded sea tax by first diverting silk that should have been sold within the Empire to Linhai Town. Later, when the Old Prince smoothed over the distinction between internal and external trade and reduced the tax payable by weaving workshops to fifty percent, the Silk Guild’s machinations all shifted to Linhai Town.”
He Chengzhe lowered his eyelids, speaking unhurriedly as if making small talk.
“Before the Old Prince reformed the system, there were also tricks played with loading and unloading quantities, but they were all minor matters. The Maritime Tax Bureau and the Silk Guild often conducted inspections, and they never amounted to much.
“After the Old Prince’s reform, these tricks with loading and unloading quantities were no longer minor. In the beginning, the Silk Guild colluded with the Wharf Gang to conceal thirty percent of the volume. Later, it increased, and now, after decades, at least fifty percent of the volume must be concealed.
“Initially, the porters at the wharf were paid for two out of every three trips, with the Silk Guild subsidizing the gang for the third trip, which the gang then distributed to the porters. Later…”
He Chengzhe sighed.
“Things are always like this, with tricks at every level, and in the end, it’s the porters who suffer.”
Gu Yan squinted at He Chengzhe, a half-smile on his face.
He called him over just to say this?
“Young Lord is rectifying the sea tax to plug loopholes and enrich the national treasury, but has Young Lord investigated where this half of the sea tax, intercepted by the Silk Guild, flows?”
He Chengzhe looked at Gu Yan.
Gu Yan’s eyes narrowed slightly.
“Please wait a moment, Young Lord.” He Chengzhe stood up, bowed to Gu Yan, and turned to go inside. After a moment, he came out carrying an old indigo cloth bundle. He untied the bundle and placed it in front of Gu Yan.
Inside the bundle were four or five slightly old account books.
He Chengzhe pointed to the account books and said, “This is my younger uncle. He was instructed by my father to conceal his identity and worked as the chief accountant for the Jiangnan Silk Guild for ten years. These are the account books he copied. They record all the unspoken expenditures of the Jiangnan Silk Guild during his ten years as chief accountant. The amounts in these account books account for at least seventy percent of the underpaid sea tax.”
Gu Yan straightened his back slightly, his gaze shifting from the slightly old account books to He Chengzhe.
“For over ten years since the founding of the Empire, Jiangnan prospered. Linhai Town was established, and the Maritime Tax Bureau was initially set up. There was a need for people everywhere, and manpower was scarce. Labor was in short supply, and prices soared several times, especially for silkworm cocoons and cotton. Even mulberry saplings once sold for dozens of times their current price, before falling back down.
“At one point, farmers stopped planting rice and planted mulberries in their fields, raising silkworms and cotton. Grain prices soared. After several rounds, the price of silk and labor doubled compared to the beginning of the Empire.”
He Chengzhe picked up his teacup, took a sip, and sighed.
“It is against the law for weaving workshops to divert silk that should be sold within the Empire to Linhai Town. This requires extensive bribery from top to bottom.
“Later, the Silk Guild adopted a long-term perspective and began to sponsor scholars, bribe officials in various yamen, and recommend minor officials. In order to have influence, they undertook the expenses for local granaries and schools. Later still, they began sending local tributes and gifts to officials of the Six Ministries from Liangzhe Circuit, and sent writing brush and ink and silver to Jiangnan scholars preparing for exams in the Capital City.
“Half of the silver transferred through the Guild was intercepted here at the Jiangnan Silk General Store.”
He Chengzhe looked at Gu Yan.
“Half of the tax on silk was evaded, but the weaving workshops paid less by only a little over twenty percent. The remaining twenty percent plus was paid by the weaving workshops and intercepted here at the Jiangnan Silk General Store.
“The other half of the Jiangnan Silk General Store’s expenditures was paid by each weaving workshop to the local silk guild, and then managed and allocated by the local silk guild and the Jiangnan Silk General Store.
“The profit for weaving workshops today is less than half of what it was at the beginning of the Empire, and also less than before the Old Prince changed the tax system. I calculated the accounts for several medium-sized weaving workshops in Pingjiang City. When things were smooth, their net profit for the year was only one to two thousand taels.”
He Chengzhe’s voice lowered, and Gu Yan’s face turned slightly pale.
The last time, when he had vigorously reformed the Maritime Tax Bureau, He Chengzhe had told him that he was making an enemy of all of Jiangnan, and even of the gentry and officials of the entire Empire. He had scoffed at it then.
“If Young Lord, starting from the wharf and extending to the Maritime Tax Bureau, completely cuts off the Silk Guild’s manipulation of quantities and collects taxes based on actual volume, it is likely that thirty percent of the weaving workshops in Jiangnan will be unable to sustain themselves.
“Young Lord’s search and seizure and rectification today is not the end of the net, but the beginning. What to do after these,” He Chengzhe pointed to the old account books, “is Young Lord’s true challenge.”
Gu Yan was silent for a moment, then reached out, tied up the bundle, and picked it up. “I understand. I need to examine these accounts carefully. If there is anything unclear, I hope Uncle He will guide me.”
“Young Lord is too kind. This old servant will tell you everything he knows.” He Chengzhe quickly stood up and bowed.
“Mm.” Gu Yan grunted, grabbed the bundle, and left the He Ji Old Brand. Standing in the sun, he felt the sunlight was too bright and uncomfortable.
“You stay here to assist Huang Xianzhou with the investigation, and have Huang Xianzhou report once a day.” Gu Yan instructed Wang Gui, handed the bundle to Shi Gun, mounted his horse, and headed straight for Pingjiang City.
About one or two li from the villa, Gu Yan suddenly reined in his horse and sat stunned. After a moment, he instructed Shi Gun, “Give me the bundle, and go invite Miss Li over.”
Shi Gun quickly handed the bundle from his arms to Gu Yan and asked cautiously, “Invite Miss Li to come here?”
This was a post road, with people coming and going. If his Young Lord waited here, it would be too conspicuous.
“Over at the wharf.” Gu Yan pointed to a spot not far away.
That wharf was already within the boundaries of the Prince’s Estate.
Shi Gun breathed a sigh of relief, replied with a “Yes,” waved to his two servants, and headed straight for Pingjiang Prefecture.
Li Xiaonan was discussing making a pot of rice cakes with Mei Jie. Wang Yuting followed behind, saying that since A Wu was not here, she could help Mei Jie pound the rice cakes.
Shi Gun knocked on the door and called out Li Xiaonan. Li Xiaonan first looked at Shi Gun’s forehead.
A forehead full of sweat.
“Did something happen?” Li Xiaonan asked, looking at Shi Gun’s forehead.
“No, nothing like that. Our Young Lord requests that Miss come over for a moment.” Shi Gun said with a smile.
Li Xiaonan hesitated. The villa was hosting a grand banquet today; why would he ask her to come?
“Miss, please go. I came in such a hurry that I didn’t even have time to prepare a carriage and rode here on horseback.” Shi Gun said with a smile.
After his Young Lord spoke with Old Shopkeeper He, although he couldn’t tell much from his Young Lord’s face, he had a gut feeling that his Young Lord was not doing well.
“Aren’t you hosting a grand banquet at your estate? Why is your Young Lord calling me?” Li Xiaonan asked in a low voice.
“Our Young Lord is not at the villa; he is outside.” Shi Gun replied in a low voice, looking down.
Li Xiaonan slowly made an “oh” sound and turned to look at Mei Jie and Wang Yuting, who were looking at her intently. She waved her hand and said, “I’m going out for a bit. I’ll be back for dinner.”
