Chapter 72

As Third Lady gave Zhou Zhong a detailed account of the chamber of commerce's financial situation, he had already anticipated the state of affairs. Zhou Hai had borrowed money from everyone he knew, so it was no surprise that the chamber of commerce was in debt.

Indeed, this was the case. When Zhou Hai made his last voyage, he had assembled a large fleet and loaded it with a vast amount of cargo, much of which was pledged on the chamber's reputation without paying the suppliers. After Zhou Hai's incident, the suppliers came demanding payment. Fortunately, Third Lady and the others managed to raise funds, and they even contributed their personal savings to pay off the most urgent debts. The remaining creditors were long-time clients of the chamber and, out of respect for past relationships, did not press too hard.

"Currently, the chamber is still burdened with a debt of nearly 20,000 taels. Previously, Uncle Tu, Sun Tong, and I each took on a portion of the debt. Given the chamber's current situation, it will be very difficult to pay off these debts in the short term," Third Lady concluded. She managed both the shipyard and the chamber's finances.

Zhou Zhong's head ached at this news. If the soap-making method belonged solely to him, he might have been confident in paying off the debt quickly. However, now that he was in partnership with the Xie family and only received 20% of the profits, it would be much harder to earn 20,000 taels from this business.

"Third Lady, what are the main sources of income for the chamber now?" Zhou Zhong thought that to pay off the debt, he needed to rely on the chamber's profits. He wanted to understand the chamber's operations to see if there were any areas he could improve.

"Master, the chamber currently has three sources of income. The first is from smuggling, but with the master's passing, most of the chamber's fleet has been lost, leaving only the ships under Sun Tong's command, which can only take on small jobs. The second is the shipyard, which was originally for repairing the chamber's ships and building small vessels, but with the decline of the fleet, the shipyard's business has also suffered."

At this point, a look of melancholy crossed Third Lady's face, but she quickly regained her composure. "The last major source of income is the port. This is currently the chamber's most profitable asset. We control one-third of the northern port, and we charge fees to all ships that come and go. Additionally, these ships need to buy supplies like water from us, which brings in at least 10,000 taels annually."

Zhou Zhong's frown eased slightly when he heard about the port's income, but he quickly realized that while the port was lucrative, there was little room for growth unless he could reclaim the other two-thirds, which was clearly impossible.

Apart from the port, the shipyard was even less promising. It relied on the chamber's fleet, and with no ships or money, the shipyard had no business. Even if they took on external jobs, it would take time to see results. Therefore, Zhou Zhong concluded that to pay off the debt, he would have to rely on smuggling.

Just as Zhou Zhong was considering how to make money, Third Lady hesitated and then said, "Master, there are a few things I want to say, but I'm not sure if it's appropriate."

Zhou Zhong looked up in surprise but then smiled. "Third Lady, you're too formal. Please speak your mind. Also, as my elder, you don't need to call me 'Master' all the time. It sounds awkward. You can call me Zhou Zhong or my courtesy name, Wenda."

Third Lady smiled in relief. "Very well, I'll call you Wenda then." She paused and then continued more seriously, "Wenda, you're young and have already passed the examination to become a scholar. Your future is bright. In comparison, smuggling is very risky. One mistake could cost you your life, as your father's fate shows. I think it's best for you to leave the chamber's affairs and focus on your studies. If you can pass the imperial examination in a few years, that would be what your father truly wanted to see."

Third Lady had wanted to say this to Zhou Zhong for a while, but the previous day's events and the presence of Xie Lingyun had prevented her from speaking freely. Now, she finally had the chance.

After taking over the chamber, Zhou Zhong's authority had increased, and Third Lady and Uncle Tu's influence had diminished. Her advice to Zhou Zhong to leave the chamber could easily be misunderstood. Fortunately, Zhou Zhong knew that Third Lady had a special relationship with his father and genuinely cared for him, much like Aunt Wang.

Zhou Zhong smiled at Third Lady and stood up to pour her a cup of tea. "Third Lady, I know you're looking out for me. As a junior, I'll share my thoughts with you today."

He sat back down and sipped his tea. "To the world, the imperial examination is the path to success. However, have you considered that every three years, tens of thousands of scholars compete, but only a few hundred pass. It's like a thousand soldiers trying to cross a narrow bridge."

"But—"

Third Lady had already sensed Zhou Zhong's meaning and tried to object, but he interrupted her. "I know what you're thinking. You believe I have talent and passed the examination at a young age, right?"

Hearing Zhou Zhong articulate her thoughts, Third Lady nodded.

Zhou Zhong shook his head and smiled. "Third Lady, you're thinking too simply. The bureaucracy is even darker than smuggling. Talent alone isn't enough. For example, in Suzhou, there are two famous scholars, Tang Yin and Zhu Zhishan. Tang Yin was a brilliant scholar who passed the examination and became a jieyuan, but he was caught in political struggles and his future was ruined. Zhu Zhishan, a friend of Tang Yin, was also very talented and passed the examination at a younger age than I did, but he is still only a juren, despite his efforts for nearly fifty years."

Third Lady, being from Ningbo, which is not far from Suzhou, had heard of Tang Yin and Zhu Zhishan. Hearing Zhou Zhong use them as examples, she was speechless but still tried to argue, "Tang Yin and Zhu Zhishan were just unlucky. Perhaps you will pass the examination and become the top scholar next time."

Zhou Zhong sighed. "Third Lady, you now admit that the examination also depends on luck. But who can be sure that my luck will be better than theirs? Moreover, I know I am far less talented than they are, so I have little confidence in passing the examination."

"But... but..." Third Lady felt that Zhou Zhong's arguments were reasonable but still felt reluctant.

Zhou Zhong had to use his final argument. "Don't worry, Third Lady. I have to mourn for three years, so I can't participate in the examination for at least five years. During this time, I will focus on getting the chamber back on track. I can still study hard later."

Hearing this, Third Lady nodded. Zhou Zhong then changed the subject and asked about the chamber's smuggling operations, wanting to understand the process and find ways to increase profits.

Although Third Lady did not manage the smuggling fleet, she was in charge of the chamber's finances and knew the process well. After her detailed explanation, Zhou Zhong finally understood how smuggling worked in the Ming Dynasty.

Smuggling in the Ming Dynasty began in the early years when Zhu Yuanzhang imposed a maritime ban, prohibiting even fishermen from going to sea. This led to extreme poverty and multiple uprisings along the coast, which were quickly suppressed.

Although the uprisings were quelled, the poverty of the coastal people remained unsolved. Many had to risk the ban and go to sea, trading simple goods with Japanese and Southeast Asians for silver. As the government relaxed the maritime ban, smuggling grew, reaching a peak during the early Zhengde period.

Despite years of development, the smuggling model remained largely unchanged. Coastal merchants had surplus goods that could not be sold domestically, so they would sell them to smugglers like the Nanyang Chamber. After agreeing on prices, the smugglers would send ships to pick up the goods and pay the merchants. The goods then belonged to the smugglers, who would transport them to places like Southeast Asia, Japan, and Korea for huge profits.

However, smugglers often received large quantities of goods that could not be sold all at once, so they needed storage and a base for their ships. This led to the establishment of smuggling bases like Shuangyu Port.

The appearance of these bases made smuggling more diverse. Some land-based merchants would organize their own small fleets to bring goods to Shuangyu Port, where they could get higher prices. This also benefited foreign smugglers, like the Japanese and Koreans, who could buy goods directly and transport them home for profit, attracting more of them to participate in smuggling.

This smuggling model had been in place for many years without issues. However, after carefully considering it and comparing it to modern sales models, Zhou Zhong had a sudden insight, thinking of a shortcut that might help the chamber grow rapidly.