Chapter 245: Chapter 202: Taxes
In the attic of the tavern, Li Ang leaned against the window, his eyebrows slightly furrowed. He looked down at the tightly shut Vermilion Bird Gate, his fingers drumming lightly on the tabletop.
He had the distinct feeling of a husband anxiously waiting outside the delivery room while his wife was in labor.
In the same room, Li Leqing, He Fanshuang, and You Xiao were chatting leisurely, discussing the newly launched rouge and powder. Li Leqing did most of the talking. Given the differences in their statuses, You Xiao responded carefully, her manner friendly yet respectful, while He Fanshuang calmly sipped her tea and cracked melon seeds.
Noticing Li Ang’s restless mood, Li Leqing cleared her throat lightly and said, "Just the other day, I heard Father, Mom, and the ministers discussing how the Hu Shang bring luxury goods like spices, Dragon’s brain, rhinoceros horn, and ivory to Chang’an, selling them for profit. They then transport Central Plains’ porcelain and silk back to the lands of the Extreme West. On a single trip, they can turn a profit of tens of thousands, even over a hundred thousand strings of coins. It’s a veritable fortune—and still a lucrative business even with heavy taxation."
"Hmm?"
Li Ang’s attention was slightly piqued as he asked with curiosity, "Is the court about to take action against the Hu Shang?"
After three hundred years, Yu Country had still not abolished the policy of emphasizing agriculture over trade. Scholars and Nobles still disdained to engage in commerce themselves, preferring to appoint agents to amass wealth for them.
And the rootless, easily replaceable foreign Hu Shang had become the prime candidates for these agents.
This led to the Hu Shang in Chang’an’s two markets being openly among the highest-income groups in Yu Country and the usual targets of the common people’s resentment towards wealth. Indeed, the common people of Chang’an wished the court would impose even higher taxes on the Hu Shang to subsidize the treasury.
However, every notable Hu Shang, big and small, was backed by influential patrons. For the court’s high officials to propose higher taxes was akin to "punishing themselves," making it difficult to implement in reality.
Moreover, the taxes levied on the Hu Shang were already high enough.
"There is no such plan at the moment."
Li Leqing shook her head and said, "But spices, Dragon’s brain, ivory, and such are merely luxury trinkets for the Red Door Nobles, benefiting neither the country nor the common people, while Yu Country loses Copper Coin and gold and silver.
So now we must think of a way to earn back the gold and silver."
Li Ang raised an eyebrow. Yu Country’s vast territory and enormous population meant that as soon as minerals from gold, silver, and copper mines were extracted and minted into coins, they would quickly be absorbed by domestic circulation. This led to a perpetual shortage of currency—a persistent fiscal challenge.
The methods to alleviate this coin shortage were few and familiar: import gold, silver, and copper ore; promote paper money, which would require further advancements in anti-counterfeiting, papermaking, and printing technologies; or encourage the gentry to spend the money hoarded in their homes. The last would require offering financial investments more stable than land consolidation—investments in factories, for example. But what about earning gold and silver from the Extreme West?
"The simplest way would be to prohibit Hu Shang from taking Yu Country coins back to the Extreme West, but that would undermine the currency’s credit, so it’s not feasible,"
Li Leqing said. "So we have to think of other ways to develop new products that would interest the nations of the Extreme West."
"Is it books?" You Xiao thought for a moment and said, "I’ve seen Hu Ren frequently reading books in Chang’an’s public Book Collection Pavilion."
"Uh, no."
Li Leqing shook her head. "Those Hu Shang are indeed very interested in Yu Country’s publications, especially the Academic Palace’s Natural Science journal. They are willing to collect these publications at ten or even a hundred times the price and secretly take them to the Extreme West.
The kings of the Extreme West reward them handsomely. Despite the court’s harsh laws and strict prohibition against the export of books, it’s impossible to prevent the smuggling of these publications by Hu Shang and even Yu Country people themselves. Therefore, the court has had no choice but to give up, especially since the Academic Palace prints so many journals every year."
Li Ang glanced at You Xiao out of the corner of his eye. He realized You Douzhi’s emotional intelligence was far superior to Song Shaoyuan’s. She must have known it wasn’t about smuggling books; her previous question was merely an attempt to ingratiate herself with Li Leqing.
"Besides silk, porcelain, and pure wine, what the Hu Shang are most interested in is actually Yu Country’s luxury goods," Li Leqing no longer teased, continuing, "Speaking of which, we have to thank you, Eldest Son.
Soap and degreasing cotton have now also become major commodities purchased by Hu Shang, and the most profitable is perfume."
"Oh, that," Li Ang said, a look of sudden understanding on his face. The Plant Essential Oil extracted using Condenser technology far outperformed previous incense in terms of fragrance, quickly making it the jewel in the crown of luxury items.
In Yu Country’s market now, a small bottle of perfume barely an inch tall commanded a price ranging from one hundred to a thousand strings of coins, and often, despite having a listed price, was unavailable for purchase. This was because the Condenser used in its production was exclusively manufactured by the Construction Supervision.
Facing a stock shortage, established firms like Jinxiu Hall had even pioneered a "membership reservation system" on their own initiative.
One had to first become a member of Jinxiu Hall to be eligible for a lottery, and only after winning the lottery did one qualify to make a purchase.
When Li Ang first heard of this, he couldn’t help but admire their commercial ingenuity. Profit, it seemed, was indeed the best tool to stimulate initiative.
"The court originally wanted to ban perfume. After all, it was initially used as a mosquito repellent and also occupied a share of Condenser resources, so it was regarded as ’exotic magic and skills.’
But it is just so, so, so, so, so profitable—even more so than spice, ivory, or pearl."
Li Leqing lamented, "The few businesses with the credentials to produce perfume are now making daily profits to an enviable degree. Even my sev—, cough, cough, sister, is looking to establish her own business. She has even settled on a name."
"What’s it called?"
You Xiao’s eyes lit up as she asked softly.
Li Leqing was the most favored Princess Guanghua. Her offhand remarks were considered the most valuable information for both the East and West Markets of Chang’an, being closest to the power center of Yu Country.
It could be said that by becoming good friends with Li Leqing, one could make a fortune even by investing blindly in the East and West Markets.
"Gucci," Li Leqing said earnestly. "’Gu’ means ancient or long-lasting. ’Chi’ means renowned. Together, they imply a business that will endure and be famous."
PFF.
Li Ang almost spat out a mouthful of tea. Gucci... Why not Chanel, Dior, or Hermès?
"Gucci, Gucci... A good name," You Xiao showered it with praise after receiving the useful information, her mind quickly calculating.
Even the Yu Kingdom’s Court, due to the enormous profits of the perfume industry, had quietly lifted restrictions. Even a Yu Country Princess was looking to invest in a business to make a quick buck.
Even if You Xiao, coming from a minor background, didn’t qualify for a connection with the princess or a stake in her investment, she could at least find a way to invest in new businesses that might be granted perfume production rights in the future.
"I don’t understand much about these things. Anyway, it would be great if the business could be set up," Li Leqing said, sticking out her tongue.
In the Imperial Palace, aside from a few extremely favored Princes and Princesses, the status and wealth of the other imperial successors largely depended on the power of their maternal families.
If the maternal family was powerful, a Prince’s future manor would be more lavish, and a Princess could find a better husband, rather than being married off to some minor official with only a respectable background.
As for Princes and Princesses who were less favored and had weaker maternal family power, they had to fend for themselves, trying to make the most of their time in Chang’an by grabbing what opportunities they could.
Li Leqing had never worried about money herself and sincerely hoped her siblings could earn a little more.
"Speaking of which, with this year’s final exam upon us, I wonder if the candidates will get lunch," Li Leqing suddenly said, remembering it was already lunchtime and wondering if Chai Chai in the exam venue had anything to eat.
"There should be... right?" Li Ang began to say, but then he heard a creaking noise from the Vermilion Bird Gate below.
Has someone come out already? He immediately stood up and peered into the distance. On the street below, the anxious parents of the examinees were also standing on tiptoes, craning their necks to see if it was their child.
WHOOSH—
The Vermilion Bird Gate slowly opened, and a familiar figure walked out.
"Huh?!"
Li Ang instinctively raised his voice.