Chapter 135: Who Approves, Who Objects (Part III)

Haixi County Northern Market Commercial Zone Development and Public Security Management Regulations.

Such a line of seal script was written on the Zuo Bo paper.

Everyone's heart skipped a beat. They had long since heard rumors about this bizarre document and had been racking their brains to find out its contents. Yet, when such an exquisite sheet of Zuo Bo paper was laid out before them, everyone felt a sense of apprehension. What exactly was written inside? Given that Deng Ji had made such a huge fuss, it surely could not be anything simple. The nine Haixi merchants took a deep breath and began to read carefully.

In truth, this was a comprehensive document similar to modern industry regulations and market standards.

It stated the government's stance: it would never suppress or stifle the development of Haixi's commerce and was willing to grant Haixi merchants a certain degree of social status. However, Haixi's commerce had to be jointly managed by trade guilds and the government. If the merchants got into trouble, the Haixi County Office could act as an official coordinator; but if the government required the merchants' assistance, the merchants were also obligated to fulfill their duties. At the same time, the regulations stipulated that Haixi County's current gold market, rice market, carpentry trade, cloth shops, and other industries needed to establish corresponding trade guilds to protect local commercial development. If conflicts arose between guilds, they would be referred to the government for resolution. When facing external commercial invasion, the guilds must shoulder the responsibility of protecting local commerce. For instance, if anyone attempted to maliciously inflate market prices, the guilds had to unite their members to fight back, stabilize prices, and assist the county office in maintaining Haixi County's stability and development.

The concept of trade guilds originated in the Sui and Tang dynasties, flourished in the Song dynasty, and declined in the Qing dynasty.

In the late Eastern Han dynasty, trade guilds had not yet emerged. However, handicraft industry and commerce had already begun to trend toward development, and cross-regional commercial activities arose accordingly. Although the social status of merchants had not been elevated, they had already begun to actively participate in social activities.

For instance, Wei Zi, who initially funded Cao Cao, was a great merchant.

In addition, there were Zhang Shiping and Su Shuang, who had funded Liu Bei, as well as Mi Zhu and Mi Fang, the brothers who later surrendered to Liu Bei in Xuzhou, all of whom came from merchant backgrounds.

Cao Peng had proposed the concept of trade guilds to Deng Ji and, drawing upon certain experiences from later eras, sought to regulate and manage the Northern Market. In Cao Peng's view, he hoped to use this method to rope in those merchants and form an interest network of sufficient scale.

In fact, behind every aristocratic family, there existed massive interest relationships.

These interest relationships were similarly regional and exclusionary, which, to a certain extent, bore a striking resemblance to the nature of trade guilds.

For example, the Chen clan of Guangling, the Kuai clan of Jingxiang, and the Lu and Quan clans of Lujiang.

All these families possessed massive commercial networks, and even Sun Ce, the current General Minghan, also known as Sun Bofu, came from a wealthy merchant family in Fuchun.

Cao Peng said nothing more. He took a sip of water and closed his eyes.

After finishing the regulations, the merchants looked at each other in dismay. It was undeniable that although Haixi's commerce was currently flourishing, it lacked standardized management. Coupled with the imperial court's suppression of merchants, the legal system similarly harbored discrimination against them.

"Young Master Cao..."

Huang Zheng steadied his mind and opened his mouth to ask a question.

Yet he saw Cao Peng open his eyes and wave a hand to cut him off.

"Have you all understood it?"

"Uh, understood..."

"Are there any questions?"

"This humble person does have one question. What is meant by this 'qualification for market access'?"

"The so-called qualification for market access is an audit and investigation into a merchant's reputation. Those merchants with poor reputations who engage in cheating, swindling, or harbor intentions to deceive customers must be investigated and cleared out. If their qualifications do not match, they cannot enter the Northern Market... Doing this is to enhance the commercial reputation of the Northern Market and encourage more people to come and trade. Of course, those with good reputations will be able to make big money."

As he spoke, Cao Peng picked up a bamboo slip from the dining table.

"This record details various events in the Northern Market over roughly the past year.
Oh, we have that late scoundrel Chen Sheng to thank for this; his records were quite detailed... Over the past year, large and small fraud cases occurred in the Northern Market a total of sixty-six times, among which seventeen cases involved commercial goods exceeding one hundred thousand cash in value. The consequence was that after being deceived, many guests either committed suicide or never set foot in Haixi again. If, and I say if, a merchant can bring ten merchants to Haixi, it can secure jobs for one hundred Haixi people... That is to say, over the past year, one thousand seven hundred Haixi people lost their jobs. Calculating on the basis of a family of three behind each unemployed person, that means five thousand one hundred people might starve to death or become displaced.
Gentlemen, five thousand one hundred people account for almost sixteen percent of Haixi's total population... Whew, seeing this number, I cannot help but feel alarmed."

It was not just Cao Peng who expressed alarm; the merchants present were also somewhat shocked.

Cao Peng's data was clearly inaccurate, but it implicitly contained a certain logic.

"Therefore, the standardization of the Northern Market is imperative. Don't look at how prosperous Haixi is right now; in reality, it conceals numerous crises.
Establishing an access system is meant to have everyone regulate the environment of the Northern Market. A favorable commercial environment can allow Haixi to gain more development opportunities. The better Haixi develops, the higher your status and standing will become, gentlemen. The higher your status and standing, the more wealth and goods you can earn. Earning more wealth and goods can make Haixi's reputation even better... In short, this is a virtuous cycle. You can envision that one day Haixi County might even become the largest commercial market in the eastern region..."

In his previous life, Cao Peng was a criminal police officer.

However, in a society entirely dominated by economic development, through constant exposure, he still knew many economic terms.

Coupled with the case he had cracked back then, which had a very wide scope, Cao Peng had benefited immensely during the process of investigation and pursuit.

These words were like a drop of water falling into a pan of boiling oil, instantly causing an uproar.

Most commercial activities in the late Eastern Han dynasty were still in their infancy. The two words 'integrity' were indeed a mandatory study for merchants, but when it came to theoretical perfection, Cao Peng, an amateur halfway through, truly delivered a vivid lesson to everyone. Regulating the market, establishing urban reputation, using points to drive the development of Haixi's commerce as a whole, and thereby generating massive profits...

Industry regulations, market regulations...

New term after new term entered everyone's ears, producing a tremendous echo.

To be honest, at the beginning of the banquet inviting Cao Peng, these merchants had not taken Cao Peng seriously.

What capability could a fourteen-year-old child possibly have? If not for his having a good brother-in-law, he would probably be nobody right now. However, the unique design concept of the Feiyang Pavilion made them begin to grant him some recognition. Afterward, Cao Peng's handling of Ye Bei displayed a ruthlessness that transcended his age. With just a single sentence, he ruined the Ye family; such a prodigal son was not someone to be trifled with!

Thus, awe and fear arose in people's hearts.

And now, Cao Peng had mapped out a wonderful blueprint for them...

Huang Zheng asked, "Then this qualification for market access..."

"The qualification for market access must be reviewed annually. Every review must be passed by the trade guilds and the government. Every merchant entering the Northern Market must pay management fees to the government, and commercial taxes will be generated based on the merchant's trading volume and incorporated into the treasury...
At the same time, the guilds must pay a management tax to the government every three months... Uh, surely I don't need to explain these few fees, do I?"

Taxation in the Han dynasty was extremely heavy, but blatant extortion like Cao Peng's had never been seen before.

Shopkeeper Ma asked stammeringly, "This, this management tax, what is that all about?"

"Uh, it is the tax used to maintain the public security of the Northern Market and guarantee your interests, gentlemen. Let's put it this way: I also have a ledger here to settle with everyone. In fact, we are all well aware of what you gentlemen do both openly and covertly. For instance, Shopkeeper Huang, last February you handled a batch of brocades, claiming they were purchased from Wujun, yet you sold them cheaply to the Zhou family of Xiapi. Where did that batch of brocades actually come from?"

Huang Zheng's face instantly turned pale, and stammering, he did not know how to answer.

"Actually, we are all clear. I am not looking to hold anyone accountable, but merely using this to illustrate the complexity of the guests and merchants in the Northern Market.
The guests and merchants in the Northern Market are mixed dragons and fish, and it is hard to trace their origins clearly.
If you encounter those who understand reason, that is easy to say! If they are the unreasonable kind, it is inevitable that there will be forced buying and selling, or even conflicts. The resulting impact is not something I am willing to see. This management tax is precisely to prevent these unreasonable people from stirring up trouble and affecting everyone's business... Shopkeeper Ma asks a good question! How shall we manage it? We have also come up with countermeasures... Starting tomorrow, a Cao Yuan Office will be established in the Northern Market, incorporated under the jurisdiction of Haixi's Legal Bureau. The Cao Yuan Office will recruit some personnel, led by specialists, to patrol the market.
As long as merchants violating regulatory ordinances or troublemakers stirring up trouble in the market are discovered, the Cao Yuan Office will be responsible for handling them...
I initially plan to recruit one hundred people for this Cao Yuan Office to patrol the Northern Market day and night. Whenever you encounter difficulties or problems arise, you can report them to the government or the trade guilds through the Cao Yuan Office... In short, the management tax is used for the establishment of the Cao Yuan Office. The management tax you gentlemen pay will, in the end, be used on you down to the very last coin. This can also be considered as taking from the people and using for the people."

After Cao Peng's explanation, everyone nodded successively.

Indeed, due to the complex personnel in the Northern Market, all kinds of incidents frequently occurred.

If a merchant had a strong background, like the late Chen Sheng and his ilk, they could handle things themselves, but that inevitably smacked of tyranny; if it was a small merchant without a background, they would be rather out of luck, with no one to stand up for them and forced to resolve problems on their own.

Those with good luck would spend money to avert disaster.

If their luck was bad, it was no longer just a matter of a little wealth.

Regarding such a situation, everyone present felt it deeply.

Cao Peng took a sip of water and spread his hands out on the dining table.

"The situation is just like this, and the matter is just like this. Those who agree, sign and press your fingerprints above; those who disagree may leave now. However, I will give you three days. Within three days, withdraw from Haixi; otherwise, Ye Bei's fate will serve as a warning.
Haixi, I think it's pretty good and has great potential.
Now I hope everyone will come and work on this matter with me, and we can all make money together. Alright, I have already made the situation very clear.
Now, I have only one question: who is in favor, and who is against?"

In the tavern, silence fell instantly...