Chapter 39

For Daming, the reduction in tax revenue was minor, but this border market trade was not a normal transaction. The horse market was initially set up to keep the Mongols at bay and to purchase horses, with civilian trade being a secondary benefit, strongly requested by the Mongols. From the beginning, Daming had a trade surplus. The Mongols had little to offer besides horses and hides, while even a needle from Daming was a treasure. This trade was highly unequal, with Daming making significant profits, so the taxes collected were merely symbolic. For transactions worth tens of thousands of taels, the tax amounted to only a hundred or two, a very limited sum. The Ming Dynasty's management of commerce and trade was never a priority for the literati. As long as there was no war, the loss of silver and income was minimal. Not only were taxes low, but the court would also provide rewards to the Mongols, though these rewards had limits and could not be claimed indiscriminately.

Now, with Zhang Han's new supply line, grain was sent out of the border every month, which was much more convenient than the monthly market, and the volume had increased significantly. However, the situation with miscellaneous goods was different. The leaders of various Mongol tribes would bring their herders to buy these goods, and the herders could choose from a variety of items, which was more convenient than buying large quantities from Zhang Han.

At this time, small-scale smugglers were directly trading with the herders, and they were quite competitive.

Zhang Han frowned and nodded, saying, "I understand."

The reduction in silver ingots' demand was good news for Zhou Fengji, Liang Hong, and others, even Old Cai was very happy. The allocation of a large number of carts and horses affected the business of other shops. Now, each shop had a manager, mostly chosen from capable senior employees of the old shop. They formed their own systems and were not close to Old Cai, who was from the Lahu. Every month, when grain was sent, carts had to be allocated from each shop, causing the managers of the branch shops to complain. If the demand really decreased, Old Cai felt that it would be better to do less of this unprofitable business.

Recently, Zhang Han was paying attention to the government gazettes, which still had no news about the Jurchen or Nurhaci. The Ming Dynasty was still peaceful, and the same was true in Shanxi. Last year, there was a large-scale earthquake with strong tremors, even felt in Xinping Fort. There was also a drought and reduced harvest. The central government repeatedly requested the emperor to handle state affairs, but there was no response.

It was already the 46th year of the Wanli era, and Zhang Han did not know when a large-scale war would break out, but he guessed it would be soon. Within a few years, the demand for grain and miscellaneous goods would increase significantly.

"Third Manager, I plan to open several furnaces at the Lingqiu ironworks and hire some people to smelt iron."

Zhang Han's strategic layout and decisiveness had already earned Liang Hong's deep admiration. Even so, this sudden shift to the ironworks left him speechless and at a loss for words.

The production of pig iron in the Ming Dynasty reached a peak during the Yongle era, with an output of about 30 million pounds. This output was sufficient at the time, but now, with the population being three to five times larger than during the Yongle era, the production of pig iron had decreased. The state-owned ironworks in Zunhua, which once employed tens of thousands of workers, was on the verge of bankruptcy. Private ironworks were widespread, with some areas having so many private furnaces that they seemed to block out the sky, and there were hundreds of thousands of miners. However, most of the large ironworks were in the south, while the ironworks in the north were small, leading to insufficient pig iron production and a sharp rise in iron prices.

At the time, the best iron was from Fujian. Fang Yizhi, during the Chongzhen era, said: "The best iron in the south is from Fujian, followed by Guangdong, and the iron from Hubei is only suitable for making hoes."

Mao Yuanyi said: "To make the Wenyuan cannon, use Fujian iron, followed by Shanxi iron."

Zhao Shizhen said: "To make guns, use Fujian iron; other iron is not suitable. For smelting iron, charcoal is the best, but in the north, charcoal is expensive, so coal is used instead, leading to frequent explosions."

In Shanxi, there were several large iron-producing areas, including Wutai Mountain, Pingxing Pass, Tairen Mountain, and Erfeng Mountain. The Datong region had fewer iron mines, with only Lingqiu County in Wuzhou having iron mines. The number of furnaces was not high, and the output was not significant.

The iron mines there were likely still under official control, or there might be some privately operated mines under official supervision. The iron mining industry in the Ming Dynasty was more flexible than in the Qing Dynasty. If official management failed, it would be changed to private management, indicating weak control. However, the ability to privately operate iron mines was a significant advantage for the development of private industry.

As long as Zhang Han had the money and obtained a license, he could start smelting iron.

"Does the young master plan to sell pig iron to the Tartars?" Liang Hong's mind was quick, and he immediately understood the reason, but his expression turned grim.

The export of pig iron was strictly prohibited by the Ming Dynasty, and neither the official market nor the private market was allowed to sell iron. The official market could sell iron pots, but the quantity was strictly controlled, and the Mongols could not get as much as they wanted. If Zhang Han sold pig iron, not only would his business boom, but the profit would be astronomical.

"Be cautious and careful. This matter is not yet settled." Even to a trusted confidant like Liang Hong, Zhang Han was very cautious about this, saying, "The pig iron business must be done, but I haven't decided how to do it yet... Let's set up the furnaces first, and we'll see what happens when the iron is produced."

"That's how it will be for now." Zhang Han instructed Old Cai, "It's not easy to prepare the carts and horses every month, and you get criticized for it. I understand the difficulty."

Old Cai, who always smiled in front of Zhang Han, was rare to have his smile falter. His face first showed a moment of surprise, followed by a look of deep gratitude.

He was about to kneel, but Zhang Han held him up, smiling, "We're not the government, so why kneel? Besides, you're much older than me. If I accept your bow without reason, wouldn't I be losing my good fortune?"

The young master doesn't like people to kneel, Old Cai knew this, so he stood up and said, "With the young master's words, no matter how difficult it is, I will not be afraid."

He was from the Lahu, so he still had to add a few words about his own difficulties, but Zhang Han just smiled.

That was all the external matters. The silver vault was nearby, heavily guarded, and outsiders were not allowed to enter. Many people didn't even know what the courtyard was for. Small arrow towers were built at the corners of the courtyard, with guards on duty, but there were no bows or arrows, and they dared not fire their muskets. However, with guards armed with knives and spears on duty, it was clear that this was an important place.

Zhang Han glanced at it from a distance, seeing that the defenses were as usual, and decided not to go in. Chang's mother looked at the silver vault and felt somewhat uneasy, but it was still better to have a few thousand taels of silver. If a poor family saw so much silver, they would probably faint on the spot. Zhang Han did not want his mother to become like Fan Jin's mother. The arrow towers and the guards patrolling inside were enough for short-term security. In the future, they would have to learn from the great merchants of the Qing Dynasty and dig large underground vaults, then melt the silver into huge blocks of several thousand pounds each. Who would have the ability to steal or rob them in normal times?

The scale of the mule and horse market had expanded three to four times. Including the courtyard converted into a silver vault, four large courtyards and five or six civilian houses had been bought, totaling about fifteen to sixteen acres of land. Originally, there were more than three hundred rooms, now all connected into one. The warehouse and stables of the mule and horse market had about two hundred rooms. Walking further inside, there were dozens of rooms and a large open area, where the craftsmen lived.

Seeing Zhang Han enter, Wang Debang, with his goatee, hurried over. He specialized in various weapons, and the musket Zhang Han used was carefully crafted by him, with exquisite workmanship. Seeing Zhang Han come, Wang Debang proudly presented a new musket, saying, "Master, this musket is ready."

Zhang Han took it, feeling it weighed about six to seven pounds, with a suitable length. The materials used for the barrel and stock were very high-quality, and it felt very comfortable in his hands.

Wang Debang continued, "This musket weighs seven pounds and is seven feet long. It is made from the barrel, stock, curved stock, dragon head, trigger, fire door, mechanism, front and rear sights, and other parts, all according to the specifications in the book you provided."

"Good job."

Zhang Han raised the musket, feeling it as an extension of his arm. He lightly pulled the trigger, feeling the dragon head drop and the steel plate click, and the mechanism spring back, indicating excellent mechanical elasticity.

"The accuracy of this musket is much higher than that of the matchlock, and its power is also much greater. However, it is very difficult to make, with the barrels nested and the drilling process being challenging. The drill bit must be of high quality, and the work requires great concentration. Any mistake can ruin the entire project..."

Wang Debang enthusiastically praised the musket, and the few craftsmen who were working on the muskets with him watched eagerly. Zhang Han's opinion was very important to them.

The life of these craftsmen here was a world apart from their previous lives in the fort. The adults were visibly stronger, the women and children had more flesh on their faces, and the children were well-fed and warmly dressed, playing and laughing in the courtyard every day. The adults were happy to hear this, and each family had their own living quarters, with two or three tiled rooms. In the past, they lived in the southern part of the fort in shacks, often freezing and starving, with meat being a rare treat. Their lives were worse than those of ordinary military households and far worse than tenant farmers. Compared to beggars, they only had a fixed place to live, but beggars did not have to work. These craftsmen had to work hard every day, sometimes being conscripted to build the prince's palace in Taiyuan or go to Datong, and even as far as the capital. Whenever there was a large construction project, craftsmen from all over the country were conscripted. The work was hard, and the life was bitter. The key was that this cycle continued generation after generation, with no hope. Those who could escape did, but the punishment for being caught was severe, so most people did not dare to run away.

Zhang Han, however, did not speak immediately. He called for a powder flask, pressed the thumb of his right hand on the mouth of the flask, and poured the powder into the muzzle. After filling it, he used his index finger to cover the mouth. Then he took a ramrod and packed the powder, but not so tightly that it could not be loosened. This required a skill that only those who frequently used muskets could master. Next, he inserted the bullet and used the ramrod to pack a piece of cotton paper, ensuring the bullet was tightly packed, so that the muzzle did not move when lowered.

Then, he held the musket horizontally with his left hand, took the powder flask, bit the stopper with his mouth, and poured the powder into the pan, covering it. He turned the musket to the left with his left hand, making the touchhole face up, and lightly tapped the musket with his right hand to ensure the powder entered the touchhole and connected with the powder in the barrel.

Next, he placed the butt of the musket on his right leg, making the muzzle face up, and took the match cord with his right hand, blew off the ash, and placed it on the dragon head.

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