Chapter 384 - 358: Imperial Envoy
Earth-shattering news?
Astonishment flickered in Chen Li’s eyes.
He had recently been in and out of seclusion, his main focus on consolidating his gains from Nanjiang and managing the Chen Family’s affairs. He had admittedly neglected developments in the outside world and hadn’t heard a thing. "What happened?"
Qian Laibao lowered his voice. "The Court has appointed the Duke of England as the Imperial Envoy. Bearing the Royal Decree Banner, he will soon arrive in Jiangzhou in person. What’s more, the imperial edict explicitly grants him the authority to oversee all military and political affairs in Jiangzhou and Wuzhou."
A sharp glint flashed in Chen Li’s eyes. This was practically equivalent to temporarily taking over the power of life and death in both prefectures.
’Was the Court truly this furious over Zhou Bo’an’s death?’
He immediately pressed, "What is the Duke of England’s Cultivation level? And where is he now?"
Qian Laibao smiled wryly and shook his head. "Patriarch, you give me too much credit. The Duke of England is a figure of immense stature—a first-rank Duke with an ironclad hereditary title, a true aristocrat. How could a humble commoner like myself possibly know the depths of his Cultivation? However..."
His tone shifted. "According to the messenger, though the news comes from Kyoto, the Duke of England himself is most likely still in the capital and has not yet departed for the south."
Chen Li frowned. "If the news is from Kyoto and the Duke of England hasn’t even set out yet, how did you find out?"
Qian Laibao explained, "You might not be aware, Patriarch, but this news has already spread through practically all the silk merchant circles in Jiangzhou. It was just a coincidence. I went to Jiangzhou City before the year’s end, had a few drinks with a couple of acquaintances, and they let it slip."
’Silk merchants?’
Several thoughts instantly raced through Chen Li’s mind.
’An Imperial Envoy is coming to oversee the military and political affairs of two prefectures. Why would news of such immense importance spread among silk merchants first?’
’Could it be that the Duke of England isn’t coming south to investigate the murders of officials like Zhou Bo’an and He Mingyun?’
"According to them, the Court has issued a new decree: this year, Jiangzhou must submit one million bolts of silk. Next year, that number will increase to one and a half million."
Seeing Chen Li remain silent, Qian Laibao continued, "This quota was supposedly calculated based on the total acreage of mulberry fields in Mirror Mountain and Lishui counties after they fully implemented the ’rice-to-mulberry’ policy years ago."
"One and a half million bolts?!"
Even for someone as experienced and unflappable as Chen Li, his pupils couldn’t help but contract slightly upon hearing that number.
Before the rice-to-mulberry policy was implemented, the entire annual silk output of Jiangzhou was only five to six hundred thousand bolts, and the fixed annual tribute owed to the Court was merely around three hundred thousand bolts.
This new quota represented a three- to five-fold increase.
Even though the forced conversion to mulberry cultivation over the years had greatly increased the acreage of mulberry fields in Mirror Mountain and Lishui, producing such a massive quantity of silk in a short time was by no means an easy feat.
Qian Laibao clicked his tongue, his face full of relief. "Even though the news isn’t official yet, the influential silk merchants in Jiangzhou caught wind of it before the new year. Now, forget about bulk silk trading—even if you want to buy a few bolts for personal tailoring, you have to pull strings, and even then, there’s no guarantee you’ll get any."
At this, undisguised admiration appeared on Qian Laibao’s face. "Patriarch, your foresight is truly divine. We acted so early last year. Looking at the market now... hehe, people will be at each other’s throats for this year’s cocoons. I fear they’ll be hard to buy even with silver."
Chen Li gave a slight wave, dismissing Qian Laibao’s flattery, but inwardly he did breathe a secret sigh of relief.
Ever since they began stockpiling cocoons and raw silk on a massive scale last year, the market had seen some purchasing competition and steady, minor price increases, but the explosive boom he had anticipated never materialized.
As time wore on, even with his confidence in his own judgment, the stagnant market and the mounting pressure of his growing inventory had made him feel somewhat anxious.
Now, the news Qian Laibao brought was like a Thunder Shock, instantly scattering the last wisp of doubt in his mind.
Qian Laibao was right. Anyone trying to enter the market to snap up raw materials this year would face brutal competition, unimaginably high prices, and possibly even bloody conflicts that could lead to death.
The Court’s million-bolt silk levy was based on the ideal production capacity, calculated from the total mulberry acreage in Mirror Mountain and Lishui after their conversion from rice paddies.
The theoretical maximum output could perhaps reach one point two or one point three million bolts, maybe even more.
But the market is never in an ideal state.
For the Court to suddenly impose such a massive, ongoing levy, there had to be a major national policy behind it.
At this early stage, with information just starting to spread and the situation still unclear, any influential merchant house would not be thinking of selling. They would be hoarding their stock, waiting for the prices to peak, and aiming for enormous profits.
Silk wasn’t a vital necessity like grain—a ten percent shortage of grain could cause prices to skyrocket until ten percent of the population could no longer afford it.
But once demand outstripped supply, it was not difficult for prices to double.
His family’s early preparations were finally about to bear fruit.
Chen Li’s thoughts raced, but he quickly calmed himself.
After a moment, he looked up at Qian Laibao and asked, "What’s the current market price for silk? And what about raw silk and cocoons?"
Qian Laibao replied, "Right now, the silk merchants in Liyang have basically halted all sales. It’s hard to estimate a price. However, before the year’s end, some merchants were selling at forty-five taels a bolt. As for raw silk and cocoons, it’ll be a while before the spring silkworms spin their cocoons, so very little is circulating. It’s a similar situation of having a price but no market; it’s impossible to set a firm value."
’Forty-five taels...’
Chen Li made a quick calculation in his head.
This price was nearly double the normal market price of twenty-five taels from previous years.
After a moment of contemplation, he made his decision.
He looked at Qian Laibao and said, "I want you to put out the word. Say that the Chen Family will be selling silk at the current market rate. For now, set the price at forty-five taels a bolt."
"What?!"
Qian Laibao thought he had misheard. His eyes nearly popped out of his head, and he almost jumped out of his chair. "Patriarch, we can’t do that!" he said in disbelief. "The market is on the rise! This is the time to hoard our valuable goods. The Court’s edict is about to be announced, and prices will only go higher. If we sell now, we’ll take a massive loss!"
He was so anxious he was practically tearing his hair out, wishing he could lunge forward and shake some sense into Chen Li.
In his view, the Patriarch had lost his mind, throwing away a mountain of gold that was already in his grasp.
Chen Li said, "My mind is made up. Just do as I command. Remember, just spread the news first. Test the waters with a small amount, see how everyone reacts, and then we’ll start selling off the stock slowly."
Although Qian Laibao was a million times unwilling, he ultimately didn’t dare to disobey. He could only sigh, bow, and say, "Yes... Patriarch. I’ll see to it at once."
With that, his face clouded with worry, he withdrew from the study.
This was no impulsive move on Chen Li’s part. It was a decision based on his analysis of the situation, and it had its own logic.
The current, seemingly high price of silk was not the result of natural market supply and demand. Its root cause was entirely due to the impending forced levy decree from the Court.
This kind of prosperity, created entirely by a government decree, was built on a fragile foundation.
The most critical question was, how long would this favorable political wind last?
Could the winds change direction?
Chen Li had no certainty on this matter, nor any power to control it.
At this moment, the Chen Family’s greatest weakness was laid bare.
The family had no one in the Court, no sharp eyes or ears in the Central Hub of power.
This meant that regarding the true intent of the policy, the force of its implementation, and even the potential power struggles and variables among the higher-ups, any information Chen Li could get would always be a step, or even several steps, behind everyone else.
Unlike the great Noble Families, he couldn’t catch wind of things in advance or time his moves to perfection. Nor could he pull out at the first sign of a policy shift.
Maximizing profits is often a game for insiders.
Those people might have the resources and connections to hoard their goods until the price peaked, or even directly influence policy to reap obscene profits.
But the Chen Family had no such protective talisman. They didn’t even have stable channels for submitting official tribute.
If the policy were to change, the Chen Family’s massive hoard of silk would instantly transform from a sought-after commodity into a crushing burden, tying up an immense amount of capital.
It was not uncommon for Court policies to change overnight. The emperor’s whims were unpredictable, and a shift in Cabinet Ministers could bring a national policy to an abrupt halt or alter it beyond recognition.
Betting the family’s entire Destiny on this was tantamount to walking a tightrope over a cliff.
Therefore, Chen Li was absolutely not pursuing maximum profit.
His goal was clear and pragmatic.
Cash out. Secure the profits.
He wanted to convert uncertain, anticipated profits into tangible cash flow.
The cautionary tale of his brother-in-law, Bai Shixuan, who had tried to speculate on medicinal herbs years ago, was still fresh in his mind.
Even in his previous life, his parents had followed a trend and planted cash crops, only to lose everything when the market became saturated.
Chen Li knew full well that when an opportunity becomes obvious to everyone, it often means it’s no longer an opportunity, but a trap.
’Operate with light assets. A small boat is easier to turn.’
This was the decision Chen Li made.
If he invested too much capital, the entire family would become cumbersome.
When the winds of the market shifted abruptly, it would be extremely difficult to change course.
When an avalanche comes, the fall from soaring in the clouds to plunging into the abyss often happens in a single moment.
Of course, cashing out couldn’t be done all at once.
The family’s inventory was enormous. This would inevitably be a process lasting several years. The goal was a steady exit that ensured a reasonable profit.
Since establishing the Textile Workshop last year, the construction of looms had never ceased. They now had over eight hundred and thirty.
However, because most of the female workers were novices with unrefined skills, production efficiency was low. The Lingxi Textile Workshop had only produced a little over a thousand bolts of silk to date.
However, after taking over the Sun Family’s Textile Workshop, production there quickly resumed. Adding the five thousand bolts of silk from the Sun Family’s original warehouse stock, the Chen Family now controlled a total of over eleven thousand bolts.
This number might not seem large, but the crucial factor was their reserve of raw materials.
The Chen Family’s warehouses held a stockpile of over seven hundred thousand catties of raw silk.
Based on a calculation of seven catties of raw silk per bolt, even accounting for waste, this was enough to weave over ninety thousand bolts of silk.
And that wasn’t even counting the upcoming spring silkworm season. Their own ten thousand mu of mulberry fields were entering their peak production period, which could yield another three to four hundred thousand catties of reeled silk.
The Chen Family’s weaving capacity was far from able to keep up with the rate at which they were acquiring raw materials.
Even if both textile workshops operated day and night without stopping, it would be impossible to weave all their current and future raw silk into finished bolts in less than three to five years.
Rather than letting precious raw silk pile up in a warehouse for years, tying up capital and shouldering the risks of unknown policy changes, it was far better to cash out now while prices were at a historic high and seize the initiative.