Chapter 86

As previously mentioned, there was a strict boundary between smugglers, suppliers, and buyers during the smuggling process. This was mainly because, in the early stages of smuggling, suppliers and buyers were concerned about being implicated by smugglers, so this practice gradually became a convention.

When Zhou Zhong was introduced to the smuggling process by Third Auntie, he noticed the irrationality of this convention. After all, times had changed, and the situation was constantly evolving. The risks faced by smugglers during the Zhengde period had significantly decreased, and the original suppliers and buyers also desired to participate in smuggling. Therefore, this convention had long lost its greatest value.

This convention also posed a significant obstacle to the development of the smuggling industry. For example, if a smuggler wanted to smuggle a batch of goods, they would have to prepare a substantial amount of money to pay the supplier for the goods. However, if the smuggler temporarily lacked funds and the supplier refused to extend credit, the smuggling business would be impossible to continue.

Moreover, under this traditional smuggling model, smugglers bore most of the risks and also reaped most of the profits from smuggling. This situation seemed fair, but it could easily lead to a smuggler's bankruptcy due to a single mistake.

Another point was that smugglers gained the largest profit from the smuggling process, which led to the profits of the smuggling industry being concentrated in the hands of a few people. This was clearly detrimental to the development of the smuggling industry. Only when everyone could benefit significantly from smuggling could the industry develop further. Only when the industry grew and became stronger would the chambers of commerce within the industry gain greater returns.

Of course, Zhou Zhong could not think as deeply as described above. However, at this time, the Nanyang Chamber of Commerce was in dire need of funds, and he was influenced by modern ideas, so he quickly came up with a new smuggling model.

This smuggling model was not complicated. For example, in the case of the Nanyang Chamber of Commerce, the chamber would no longer purchase the goods in advance but would sign an agreement with the cargo owner. The chamber would be responsible for smuggling the goods, and the final profits would be shared between the chamber and the cargo owner according to a certain ratio. Of course, if the goods were lost, the loss would be shared by the chamber and the cargo owner.

The benefits of this approach were obvious. The risks involved in smuggling would no longer be borne solely by the smuggling chamber, and there would be no need to prepare a large sum of money in advance as the cost of smuggling. This was a tremendous benefit for many smugglers. Of course, there were also drawbacks, such as having to share the profits from smuggling with the cargo owner. After all, the cargo owner also bore significant risks and naturally deserved a portion of the income, which was much more substantial than selling the goods directly to the smugglers. Only in this way would the cargo owners be willing to cooperate with the chamber.

Zhou Zhong's idea was not particularly novel, and there were even precedents in some commercial fields in the Ming Dynasty. However, in the smuggling industry, he was the first to propose and prepare to implement this idea.

When Zhou Zhong explained this new smuggling model, Xu Qian, Hu Lei, and others were stunned for a long time. Finally, the fat old man He Xian spoke up: "Young Zhou, your idea is indeed excellent. It not only reduces the risks of smuggling by half but will also attract many suppliers to cooperate with our chamber. However, have you considered that the chamber used to make all the profits from smuggling, but now it has to share some with the cargo owners? This way, won't we earn less money?"

Before Zhou Zhong could respond, Chen Wufa smiled and said, "Brother He, you are mistaken. If we follow Young Zhou's method, the chamber will not only not earn less money but will actually see a significant increase in income!"

Hearing Chen Wufa's words, He Xian and the others looked surprised, but Zhou Zhong and the young Xu Qian nodded in agreement.

Chen Wufa continued, "On the surface, Young Zhou's method does share the profits with suppliers, but if you think about it, once the Nanyang Chamber of Commerce introduces this method, not only will our old suppliers be eager to cooperate, but even merchants who have never been involved in smuggling will be tempted to bring their goods to cooperate with the chamber. This way, the chamber's business will definitely boom. Although the profit per transaction will be less, the volume of transactions will be several times higher, and the chamber's income will only increase, not decrease!"

Chen Wufa, being the wealthiest among the five, quickly understood the key points and analyzed Zhou Zhong's new smuggling model thoroughly. This not only made He Xian and the others nod in agreement but also earned Zhou Zhong's admiration. No wonder Chen Wufa was one of the largest cotton merchants in the Jiangnan region; his exceptional mind was not something ordinary people could match.

"Brother Zhou is truly a genius. The reform of the Beigang Teahouse a few days ago already amazed me, and I didn't expect you to also reform the chamber's smuggling methods. Although this method has not been implemented yet, with Brother Chen's insight, it will definitely not be wrong. I am even more optimistic about the chamber's future!" Xu Qian also praised, though he had thought of the same things as Chen Wufa. However, being the youngest and least experienced, he was concerned about offending others, so he didn't speak up.

"If I had known this, I shouldn't have given up that half share to Brother Chen. This time, I really lost out!" He Xian laughed again, now thoroughly convinced of Zhou Zhong's abilities. He was also somewhat regretful that he should have insisted on a full share. Li Mo, standing beside him, felt the same way.

After that, Zhou Zhong discussed the discounts for the shareholders with He Xian and the others. According to the new smuggling model, the Nanyang Chamber of Commerce would share the profits from transporting goods for suppliers. As shareholders of the chamber, He Xian and the others would naturally receive a discount on the share of profits from the goods they transported. The specific discount would vary depending on the type of goods, so it would need to be discussed in detail later.

After the main matters were settled, Zhou Zhong's goal was achieved, and He Xian and the others were full of confidence in the Nanyang Chamber of Commerce under Zhou Zhong's leadership. For a time, the host and guests were in high spirits, toasting each other continuously. In the end, they all drank to the point of intoxication. They had originally planned to sign the shareholding documents, but they had to postpone it until the next day when they were sober.

After signing the shareholding documents, He Xian and the others did not stay long in Shuangyu Port. They quickly returned to the mainland by boat. One reason was that the New Year was approaching, and the other was that they needed to raise the silver for their shares. Although they were wealthy, it still took time to prepare such a large amount of cash.

However, as the saying goes, there is no wall that does not leak. Although Zhou Zhong had instructed Third Auntie and the others to keep the matter confidential, and He Xian and the others had promised not to disclose the content of their discussion until everything was ready, the matter they discussed was a commercial secret and related to everyone's interests, which Zhou Zhong believed would not be leaked.

However, just as He Xian and the others left Shuangyu Port, Xie Lingyun, dressed in plain clothes, was sitting in her bedroom at the Xie family chamber's residence. A plain-looking woman was reporting to her. If Zhou Zhong were there, he would recognize this woman as the one who had always stood behind Xie Lingyun when they first arrived, named Auntie Shui.

"Miss, according to our informants, Zhou Zhong gathered the old clients of the Nanyang Chamber of Commerce to discuss two main issues. The first was to sell a portion of the chamber's shares to raise 80,000 taels of silver from these old clients," Auntie Shui reported, bowing her head.

"Sell shares!" Xie Lingyun was startled by this news. After a long pause, she murmured, "Zhou Zhong, you truly have great courage. It seems I underestimated you!"

Smuggling was a highly profitable industry, and all smuggling chambers were directly controlled by individuals or families. Almost no one was willing to share their smuggling profits with others. However, Zhou Zhong boldly sold some of the chamber's shares, not only raising the funds he desperately needed but also tying these people to the Nanyang Chamber of Commerce's profit structure. He Xian and the others not only possessed enormous wealth but also had complex backgrounds in the Ming Dynasty. With their support, the Nanyang Chamber of Commerce would have a broader development prospect.

Even though Xie Lingyun understood the benefits of allowing others to invest, she could not allow others to invest in the Xie family's chamber. First, she lacked Zhou Zhong's courage, and second, the Xie family's chamber was a complex organization. Although she was the sole heir, she could not unilaterally decide the chamber's direction.

Thinking about this, Xie Lingyun sighed and then asked Auntie Shui, "What was the second issue they discussed?"

When Xie Lingyun asked about the second issue, Auntie Shui paused slightly before recounting the discussion about the reform of the smuggling model. She even knew the exact words exchanged between Zhou Zhong and each of the participants, as if she had been there to hear it firsthand. If Zhou Zhong had heard this, he would have been truly shocked, as there were only six people in the hall at the time, and it was impossible for a seventh person to know their conversation.

After Auntie Shui finished her report, her expression changed, and her tone became cold. "Miss, if Zhou Zhong's idea is implemented, the Nanyang Chamber of Commerce will undoubtedly become the top chamber in Shuangyu Port. Given his decisive and ruthless nature, it would be wise for you to make a decision as soon as possible!"