Chapter 95

The last day of November 1633 was a dark one for the British merchants of cotton and wool who had traveled far to Colonia.

In the bright spring sunshine of Colonia, inside the merchant house where the British merchants gathered, a large black wooden board was written in chalk: Indian white cotton, 4 pesos per bolt; fine broadcloth 45 pesos per bolt, coarse wool 33 pesos per bolt, and velvet 40 pesos per bolt (at this time, 1 peso ≈ 0.8 yuan ≈ 0.2 pounds). A dozen employees of the British merchants were struggling to unload bales of cotton and wool from the ship, and according to the rules of the Merchant Adventurers Company, each merchant displayed their goods to the customers simultaneously, while the prices were set uniformly by the company.

In the morning, merchants came to inspect the goods one after another. These were the native-born Spaniards of La Plata who had joined the Rodriguez Chamber of Commerce, with ample funds and smooth sales channels, making them the favorite customers of the British merchants. Most of these merchants were small and medium-sized, and they bought a few hundred bolts of cotton and wool in bits and pieces. For the British, this was just a drop in the bucket compared to their vast inventory, and they were not in a hurry, knowing that the big customers had not yet appeared, and what was being sold now was just an appetizer.

In the last hour of the morning, the number of La Plata merchants coming to inspect the goods suddenly decreased, and eventually, none came at all. The British did not realize anything at this moment, and with it being close to noon, they simply closed for a break.

After lunch, several wool merchants from the London Merchant Adventurers Company and cotton merchants from the East India Company even had the leisure to sit down and chat over drinks, as this was just a pleasant business trip for them.

"I must say, the beef in La Plata is really excellent. Tender, smooth, and juicy, I swear, the beef from East Anglia is like leather in comparison," George Hampton, a wool merchant from Norwich, said with exaggerated gestures.

Some merchants smiled kindly, and someone joked, "So, George, is that why you slaughtered all the cattle on your farm and replaced them with sheep?"

"Yes, John," George Hampton sipped his wine and said, "You know, I recently bought a farm from a monastery. I've decided to drive away all the foolish farmers who grow barley from next year and keep only the smartest few to tend my sheep."

"George, those farmers may be foolish, but they can still do the work of spinning and weaving," John said. "Mr. Sharpe from Malmesbury recently rented a workshop and gathered those farmers to work as shearers, spinners, weavers, and bleachers, paying them a small wage to get a steady output of wool. When I finish this business and return to Bristol, I will follow Mr. Sharpe's example, as it is very cost-effective. Isn't that right, Mr. Sheldon? Your family has a large workshop in Suffolk, and you should understand the benefits."

A middle-aged man sitting at one corner of the table chuckled and then said in a deep voice, "George, John is right. Times have changed, and we need to abandon the old traditions of rural textile production. A farmer has to walk for half a day to reach my workshop to exchange wool for yarn and then spend another half a day walking back home to continue spinning. We waste too much time on this, which leads to low efficiency. It's time for a change, gentlemen! We need to drive those farmers off their cursed farmland, plant alfalfa, and raise adorable sheep. The farmers should all be concentrated in the workshops to work, which is the most efficient way and will bring us the most lovely gold coins."

The middle-aged man's words made everyone nod in agreement, and someone proposed a toast to Mr. Sheldon's workshop, making the atmosphere very lively.

Suddenly, the door of the merchant house was pushed open, and an employee quickly walked in, saying in a serious tone, "Gentlemen, we may have trouble. I heard a rumor in the market that the East Shore people have brought a large batch of cotton and wool, and they sold this batch of textiles at an unbelievable low price to the Rodriguez Chamber of Commerce, which monopolizes most of the trade in the city. The price, according to informants, is only about half of ours, which might be why no one came to buy our goods in the last hour of the morning, as these Spaniards have all received the news."

The room suddenly fell silent, but was soon drowned out by a burst of laughter.

"Half the price! God, how is that possible? Can they even make a profit?"

"No one can sell textiles cheaper than the English!"

"Did they rob a ship carrying textiles? This is the price of stolen goods, shameless pirates!"

"This joke isn't very funny, but you're finally becoming more humorous, Nick. Come, let's have a drink!"

But Nick did not laugh. He remained serious and said, "Gentlemen, I am not joking. In fact, all the Spanish merchants are now crowded at the door of the East Shore people's merchant house. If you go and see, I think it will leave a deep impression on you."

The group was stunned by Nick's words, and the room fell silent for a moment.

"Alright, gentlemen. Perhaps as Nick said, the East Shore people are selling their goods at an unbelievable low price. Let's go and see what they are up to," William Clifford from the East India Company stood up. He was a cotton merchant and did not get along with the wool merchants from the Merchant Adventurers Company, so he had been quietly drinking in the corner. Now he stood up and led the way out the door.

Clifford was a relatively large cotton merchant, with a total capital of over 5000 pounds, making him stand out among the small and medium-sized merchants. After he left, the others looked at each other and then followed him out.

The East Shore Company's merchant house was set up in Xiao Baitu's office. Four internal affairs police officers and a group of sailors were maintaining order at the door, and Xiao Baitu, the only one who spoke Spanish, was using a tin megaphone to explain to the crowded La Plata merchants.

"Sorry, everyone. Our goods have all been bought by the Rodriguez Chamber of Commerce, and this round of fabric transactions is over. Please rest assured, we will return as soon as possible to organize production and will be back in Colonia in a month to sell goods. Please wait patiently."

"Yes, white cotton is 1.6 yuan per bolt, fine broadcloth is 25 yuan per bolt, and the price will remain the same next time! In a month, there will be a sufficient supply of goods, so please rest assured. Our East Shore fabric is of high quality and low price, so please wait patiently."

After Xiao Baitu finished speaking, he had his subordinates close the merchant house door, isolating the disappointed merchants outside. Inside the merchant house, Alvaro, who had rushed over, was leisurely drinking mate tea. His son Alvarez had bought the batch of textiles from the East Shore people for a total price of 9100 yuan, a price so low it was unbelievable. Alvaro's only concern now was whether the East Shore people were making a one-time deal or planning to do business long-term.

"Of course, we plan to do business long-term," Xu Xin explained with a smile to Alvaro. "We will establish a Southern Common Market, including the East Shore, La Plata, Brazil, Chile, and Upper Peru, where goods can be traded freely within the market without any transit tariffs. This will greatly promote commercial prosperity in each region and increase the wealth of the people, far surpassing the current stagnant designated trade model. Mr. Alvaro, you are our friend, and we, the East Shore people, will never let our friends down. We will provide you and your family with the best prices."

"Of course, I will consider the Southern Common Market. But what I want to know now is how much fabric you can provide to my chamber of commerce each month. This is the most important thing at this stage. You know, the La Plata market is large, consuming at least 1500-2000 bolts of wool and a much larger amount of cotton annually. This is significant for everyone. So, please give me an accurate answer, what is your production capacity?"

"If the raw materials are sufficient, producing 1000-2000 bolts of wool and several times that amount of cotton per month is no problem," Xu Xin did not answer, and Tao Chenxi stepped forward. He looked Alvaro in the eye and said firmly, "As long as the raw material problem is solved, we can continuously expand our production capacity, even absorbing the entire Southern market. Mr. Alvaro, please pay special attention to the source of raw materials, especially wool. This is a big business for both of us, so let's work together."

"How will you deal with the British? At this price, they will not make a profit. The Merchant Adventurers Company and the East India Company are powerful companies. Although the La Plata market is not as vast as the Old Continent, losing it would not be something they can tolerate, and they may take action against you. You must be careful!"

"Thank you for your warning, Mr. Alvaro. We will handle the British appropriately."

① Merchant Adventurers Company: A company authorized by the British king to monopolize the export of wool, initially funded by the London Silk Merchants' Guild, the Woolen Manufacturers' Association, the Clothing Merchants' Guild, the Grocers' Guild, and the Wool Merchants' Guild. In the 15th and 16th centuries, it played a crucial role in defeating the Hanseatic League and regaining the export rights for British wool. Its initial overseas base was in Antwerp, but it has since moved to Hamburg.

② East Anglia: The most important agricultural and pastoral area in eastern England, one of the three major wool textile centers. It includes all of Norfolk and Suffolk counties and parts of other adjacent counties. The capital, Norwich, was the second largest city in England at the time. After a large influx of Dutch Protestant refugees and the absorption of Dutch technology, it became famous for its new wool textiles.

③ Upper Peru, also known as the Charcas Audiencia, roughly corresponds to the region of present-day Bolivia.