Chapter 7

In casual conversation, Yang Yuanzhao also learned that Liu Shu and Yang Yue were both extraordinary. Liu Shu was a scholar from 1898, from the Liu family, one of the four major merchant families of Tai Ping, though a collateral branch, his family was still well-off. Yang Yue was even more impressive, being from the main branch of the Yang family, the Southern Zhao Yang family, who had built their fortune through trade, establishing a significant reputation with their footprint spanning Shanxi, Zhili, Mongolia, and even reaching as far as Kyakhta, making them a well-known merchant family in Shanxi.

"Brother Zelun, Brother Jitang, I just arrived in Baotou and met the two of you. It's truly a great fortune. I plan to do some business in Baotou and hope for your support!"

Yang Yue, who was initially very enthusiastic, seemed to darken at the mention of business and said, "For business, find Zelun. He is the secretary of the chamber of commerce and has many business opportunities. As for me, I'm out of luck this time, I'm going to lose a lot of money!"

"Brother Zelun, what's the matter with Brother Jitang?" Yang Yuanzhao asked, somewhat puzzled.

"He!" Liu Shu smiled slightly and said, "When he returned from the United States, he passed through Shanghai and brought back a batch of cotton seeds and fertilizer, intending to sell them outside the pass. Unfortunately, no one here grows cotton, so they're all stuck in his hands!"

Cotton and fertilizer, Yang Yuanzhao's eyes lit up. To be honest, he had been thinking about a starting point all day. 1908 was not 2014; there was no commercial operation or convenient environment. Entering any industry required a starting point. He had been thinking about it all the way, and the most familiar to him was probably machinery, especially engines. However, in China at that time, there was no market for such things. Making some machines should be possible, but the machine industry was almost entirely dominated by foreigners. Entering it casually would not only make it hard to earn money but also difficult to withdraw safely.

When he was about to fall asleep, a pillow came. The cotton textile industry had been developing well since the Self-Strengthening Movement began in 1880. After 1900, it flourished even more, transitioning from government-run to private enterprises, experiencing a period of prosperity. Several major merchants in old China were closely linked to the cotton textile industry.

Yang Yue's promotion of cotton seeds was not valued in Baotou, but he found it valuable. He had some experience with growing cotton, as his uncle and brother were cotton farmers. During the busy farming season, he had helped them, learning a bit about deep plowing, seedling cultivation, weeding, and mid-season cultivation. In the late Qing and early Republic periods, farmers basically relied on the weather. Fertilizers and scientific farming were almost unknown to them. Collaborating with Yang Yue, who studied agriculture, to grow cotton and enter the textile industry seemed like a good starting point. The light industry required less investment and made money quickly, solving the initial problems before moving into the more suitable heavy industry.

Yang Yuanzhao stared straight at Yang Yue, making him feel uneasy. Liu Shu was also puzzled, wondering why the conversation about cotton had made this young brother so stunned.

"Hey, Yuanzhao, what's wrong with you?"

As soon as Yang Yue finished speaking, Yang Yuanzhao grabbed him and said, "Brother Jitang, how much cotton and fertilizer do you have? Sell it all to me!"

Yang Yuanzhao's sudden words startled both Yang Yue and Liu Shu. Liu Shu pointed at Yang Yue and said, "Yuanzhao, do you know how much cotton and fertilizer Jitang has?"

"How much?"

Liu Shu looked at Yang Yue, who smiled bitterly and said, "3,000 silver dollars, 1,000 for seeds, and 2,000 for fertilizer!"

3,000 silver dollars was not a small amount. Before coming to Tianyuan Building, Yang Yuanzhao had briefly learned about the prices in Baotou. Baotou, located in the northwest, was a major town but had inconvenient transportation. Meat was relatively cheap, with one silver dollar buying about 10 pounds of pork, 9 feet of white cloth, and 25 pounds of white rice. The purchasing power of silver dollars was very strong. An average family used about 20 silver dollars a year, and farmers who cultivated land often did not even reach this income. Compared to modern times, one silver dollar was roughly equivalent to 100 RMB, so 3,000 silver dollars was about 300,000 RMB, a significant amount of money.

"How much exactly? How much for seeds, and what types and quantities of fertilizer?" Yang Yuanzhao continued to ask.

Yang Yue looked at Yang Yuanzhao strangely and then said, "1,500 kilograms of seeds, two types of fertilizer: ammonium sulfate and superphosphate. 15 tons of nitrogen fertilizer and 12 tons of phosphorus fertilizer!"

The quantity was indeed significant. Yang Yuanzhao roughly estimated the prices of these industrial products and slightly adjusted his estimate of the purchasing power of silver dollars. He continued, "Why did Brother Jitang buy cotton seeds and fertilizer?"

"Shanxi and Shaanxi are cotton-producing areas, but according to my knowledge, the yield is not high, about 60 pounds per acre, with only about 10 pounds of lint cotton. I studied agriculture in the United States, and the American upland cotton has good quality and high yield. With the addition of fertilizer, it can reach about 100 pounds, with 25-30 pounds of lint cotton. So I wanted to try it out!"

Yang Yuanzhao nodded and said, "Brother Jitang is indeed knowledgeable in agriculture. By this calculation, farmers can earn an additional 1.5 silver dollars per acre of cotton, excluding the cost of seeds and fertilizer."

Yang Yue was slightly surprised and said, "Yuanzhao also knows about agriculture!"

"Somewhat, I studied it as a minor in the UK, so when Brother Jitang mentioned it, I wanted to buy it. Baotou has long daylight hours, and with some adjustments, it is suitable for growing cotton, making it a good place!"

Yang Yue was moved but still said, "But, Yuanzhao, this is a bit risky. Baotou has never grown American cotton. What if..."

"Brother Jitang, I'm sure many people have told you this recently!"

Yang Yue smiled awkwardly, acknowledging it. Yang Yuanzhao looked at Liu Shu, who was paying close attention to their conversation, and said seriously, "The reason I want to grow cotton is that I am confident about growing American cotton in Baotou, and I have a secret to further increase the yield!"

"Secret?"

"Yes, Brother Jitang, Brother Zelun, while studying mechanical engineering in the UK, I also studied agriculture. You should know that the UK is the strongest country in the world for cotton textiles and is also very strong in cotton cultivation. By chance, I obtained a secret formula that can double the yield of cotton!"

"Double the yield?" Yang Yue was stunned, seemingly disbelieving, "From 100 pounds or 60 pounds?"

"Of course, 100 pounds. Do you think it can only increase to 120 pounds? Brother Jitang, you're underestimating me!" Yang Yuanzhao said confidently. He actually had no secret formula, but if he applied 21st-century cotton cultivation methods, even with slightly inferior seeds, the yield could be significantly increased. Scientific management and fertilizers, especially urea, which was already synthesized but not mass-produced, could be synthesized using the smart element integrator he had. Urea's significant role in cotton could greatly increase the yield, and with Yang Yue, an agricultural expert, doubling the yield was definitely possible. In modern times, cotton yields of 500 or 600 pounds were not uncommon, but the seeds were not available at that time.

Yang Yuanzhao's confident words stunned Yang Yue and Liu Shu. They knew the price of cotton, an important daily necessity, was the main source of cotton quilts and cotton fabric, and was always in demand. The reason Yang Yue's seeds and fertilizer were unsold was that farmers had little money and limited knowledge, and no one bought them. Additionally, the risk was considered too high, as a significant investment was needed to earn an additional 1.5 silver dollars per acre, and any problem could result in a total loss. However, if the yield could double, producing over 50 pounds of lint cotton per acre, this would mean an additional 10 silver dollars per acre, or even more. Such a business was worth taking a risk.

Liu Shu asked seriously, "Yuanzhao, are you sure?"

"Rest assured, I am confident!" Yang Yuanzhao said solemnly.

Liu Shu lightly tapped the table with his fingers, his eyes scanning Yang Yue and Yang Yuanzhao. After a long while, he seemed to make a decision and said, "Yuanzhao, this is our first meeting. This deal is not insignificant. Can you explain your method to Yang Yue? I know this is a bit demanding, but..."

Liu Shu's words made Yang Yue unhappy, and he was about to speak when Yang Yuanzhao quickly said, "No problem!"

For Yang Yuanzhao, the key was to build relationships with these two people. In China, relationships were crucial. Without them, even with great skills and wealth, one could not achieve success. But with good relationships, one could make money even without money. Both were influential figures in Baotou with large families, making them good connections. Moreover, the methods for growing cotton, such as greenhouses and urea, were already in his hands, and the other methods would be of little use to them.

"Brother Jitang, as an agricultural student, you should know that the key to growing cotton is seedling cultivation!"

"That's right. Cotton is usually planted in April. The higher the temperature, the better the seedlings grow. However, the weather in Baotou in April can be unpredictable. Fortunately, the long daylight hours can compensate for this, and replanting can be done if necessary."

Yang Yuanzhao nodded, acknowledging that Yang Yue was indeed knowledgeable about cotton cultivation. However, he lacked the 21st-century knowledge. He waved his arms and said, "My first method is to focus on this!"

"Here?" Yang Yue was puzzled, thinking of a method and said, somewhat surprised, "Are you going to use a greenhouse for seedling cultivation? That's a huge investment!"

"Don't worry, I have a cost-effective method, but I need to purchase materials in Shanghai. You'll see when the time comes."

"If the temperature for seedling cultivation is solved, a 20% increase in yield is definitely possible. Cultivating seedlings separately will also significantly reduce the amount of seeds needed, meaning the investment per acre will decrease," Yang Yue nodded in agreement.

Next, methods such as deep plowing, base fertilization, mid-season cultivation, ventilation, top-dressing, weeding, and pest control were mostly things Yang Yuanzhao had heard about, and Yang Yue listened with great interest, especially when Yang Yuanzhao mentioned organic fertilizer urea. Yang Yue had heard of it; in Germany, it was produced in small batches in laboratories and was much better than ordinary nitrogen fertilizers, but he had not heard of it being produced on a large scale. Urea was derived from animal waste, which was known to be the best fertilizer for crops, but the quantity was a problem, and artificial synthesis was a direction, but no factory production had been heard of.

Yang Yuanzhao confidently stated that he could find a way to obtain it, convincing Yang Yue. As long as Yang Yuanzhao could follow these steps, doubling or even more than doubling the yield was not a problem.

Seeing Yang Yue nod, Yang Yuanzhao breathed a sigh of relief. Looking at Liu Shu, who was already deeply engaged, Liu Shu, from a merchant family in Shanxi and a secretary in the chamber of commerce, was very sensitive to business. Such a significant increase in yield, even with some labor and investment, was enough to attract him.

Liu Shu did not say much more and changed the subject. Yang Yuanzhao did not continue the topic, as the investment Yang Yue had already made was not small. Moreover, 1,500 kilograms of cotton seeds could plant 1,000 acres, a significant investment. According to Yang Yuanzhao's method, the planting area could be tripled, and even with all the seeds and fertilizer, it would be a huge amount. This was not a small business and required careful consideration.