Late Yuan Dynasty: I am the true emperor

Chapter 521 Workshops on the Banks of the Qinhuai River (Part 1)
When everyone heard Lu Jin's question to Ye Chen, they suddenly realized why Lu Jin had invited Ye Chen, a nobody without any official position, to attend today's meeting. It turned out that this person was an expert in papermaking.

Seeing Ye Chen nod in agreement, Lu Jin asked again, "So Mr. Ye must be very familiar with the papermaking industry. The imperial court needs a large amount of paper for printing books, and the current paper production is certainly not enough. How should the imperial court formulate policies to encourage related industries to increase paper production? Does Mr. Ye have any suggestions?"

"Well," Ye Chen said, not expecting Lu Jin to suddenly ask him for policy advice. He thought about it carefully before answering.

"Your Majesty, please allow me to speak. In my opinion, if we want to encourage the industry and increase paper production, we should do five things."

"First, we must reduce or exempt taxes on papermaking to lower the production costs of paper mills and make it profitable for paper merchants. Only in this way can we attract more people to engage in papermaking."

"Secondly, we should encourage the opening of new paper mills. Only with more paper mills can we produce more paper."

"Third, we must adapt to local conditions and expand the sources of papermaking materials. At present, paper can be roughly divided into two types: bark paper and bamboo paper. Although bark paper is of better quality, it is expensive. The bark of the paper mulberry tree used grows slowly and the material is not abundant. Paper mills in various places often stop production to wait for materials. Bamboo paper is different."

"Bamboo paper is of high quality and low price. Bamboo is abundant in Jiangnan. The papermaking technique for bamboo paper was already mature in the Song Dynasty. Among all kinds of paper on the market, bamboo paper is the cheapest. Therefore, I think the court should encourage the production of more bamboo paper."

"Fourth, the government should step in to promote papermaking techniques and not let each paper mill keep its own secrets. Excellent papermaking techniques should be promoted to all paper mills, especially the technique of making bamboo paper. If the government does not step in, those paper mills will never be willing to hand over their own techniques to others."

"Fifth, we must protect the price of paper. With more paper mills opening and the technology being promoted, paper production will definitely increase significantly. However, low grain prices hurt farmers, and low prices hurt workers. Scarcity drives up prices. If more paper is produced, it will definitely drive down the price."

"To prevent paper from becoming too cheap, which would make paper mills unable to make money and discourage mill owners from continuing production, the imperial court, as a major consumer of paper, should set a minimum purchase price. As long as the paper meets the quality requirements of the imperial court, it can purchase it at the minimum price for use in printing textbooks, just like the Ever-Normal Granary in agriculture, which stores grain in good years and releases it in bad years."

"With these five points, paper production will surely increase significantly."

Everyone nodded in agreement. Seeing this, Lu Jin immediately asked the group, "What do you all think?"

Feng Guoyong immediately said, "Your words are substantial and well-organized; I believe they are feasible."

"If taxes are reduced or exempted, how much tax should be set on paper?" Lu Jin asked again.

Li Shanchang also spoke up, "How about one-thirtieth of the tax? That tax is definitely low enough."

One-thirtieth of the tax is 3.3%, which is practically nonexistent. Of course, it's low enough, but since it's meant to encourage production, a lower rate is normal. Lu Jin nodded, then asked, "Does anyone else have anything to add?"

This time, everyone shook their heads. Seeing that no one had any objections, Lu Jin immediately added his own explanation.

"Since you have nothing to say, I'll add a few points. First, the basic tax rate for paper should be set at 1/20. Then, the imperial court should set a production quota. Paper mills that meet the production quota can apply for a tax refund. The final tax rate will be 1/30. The requirements should be set slightly higher, so that only paper mills that produce more paper can receive a tax reduction."

Everyone was stunned upon hearing this. Lu Jin was clearly trying to force the paper mills to shut down. If they didn't meet the production requirements, they wouldn't get tax breaks. This method was indeed ruthless; it was practically applying the performance evaluation system for officials to production.

Seeing that no one objected, Lu Jin continued, "Second, there's no need to set up any minimum price or ever-normal granaries. The purpose of the court increasing paper production is to bring down the price of paper. If paper is still as expensive as before after the increase in production, how many poor families can afford paper and go to school?"

"Is reading only about textbooks? Practicing calligraphy, doing exercises, and writing articles all require a lot of paper, don't they? If the price isn't cheap, who can afford it?"

Ye Chen was taken aback upon hearing this, and immediately asked, "But Your Majesty, if the price of paper is too low, making it unprofitable for merchants, will they still be willing to continue production?"

Lu Jin immediately added, "Then let them make up for it elsewhere. If paper isn't profitable domestically, then sell it overseas and bring the money back from foreign countries to subsidize the domestic market. China is the only country in the world capable of producing paper in large quantities. Our paper has no trouble selling overseas. As long as they can sell it, they can ask for any price. Why worry about not making money?"

"..." Everyone was stunned again upon hearing this, especially Ye Chen, who didn't react for a moment. This was purely a matter of perspective and vision. They were still habitually limited to thinking about domestic issues. Who would have thought of such a shrewd move as making money overseas to subsidize the domestic market?

Ye Chen immediately added, "Your Majesty's method is good, but merchants are profit-driven. If they can't make money domestically, they'll sell all the paper they produce overseas. Wouldn't that still not be enough for the domestic market?"

So Lu Jin said again, “Don’t forget we are the imperial court. What is the imperial court for? The imperial court sets the laws. We can completely limit the annual export quota. Whoever produces the most paper and has the lowest price will be rewarded with an export quota so that they can make money overseas. Whoever sells it at a high price domestically and produces little will not be qualified to export. Those who sell at high prices domestically have already made enough money, so why would they need to export?”

Ye Chen's train of thought couldn't keep up with Lu Jin's ideas at all. His Majesty's ideas were too far-fetched, but upon closer inspection, they were indeed feasible. However, he still worried, "But, but in this way, I'm afraid all the benefits will be taken by the big paper mill."

“Small paper mills have low production volume and it is difficult for them to obtain tax rebates and subsidies. If they set the price low, they will not make money in the domestic market. If they set the price high, they will not be able to obtain export quotas. If they compete on price, they will not be able to compete with the large paper mills. The large paper mills rely on export subsidies to drive the paper price in the domestic market to extremely low levels, or even sell at a loss. They use the money they earn overseas to suppress the small paper mills. So, do the small paper mills still have a way to survive?”

"Since Your Majesty wants to encourage the construction of more paper mills, small paper mills will definitely be the most numerous at the beginning. However, the export subsidies and tax rebates for increased production are policies that encourage large paper mills, which is completely contrary to the original intention."

Upon hearing this, everyone frowned and nodded, as if it were indeed the case.

Lu Jin immediately reiterated, “This thing is inanimate, but isn’t the policy flexible? We just need to refine this policy a bit more. Any paper mill that registers with the government next year will be exempt from taxes in the first year, subject to a 30% tax in the second year, and a 20% tax in the third year. Only from the third year onwards will there be tax refunds for increased production, and only in the fifth year will they be eligible to bid for export quotas. The court just needs to give those newly opened paper mills enough time to develop.”

Ye Chen pondered for a moment, then finally nodded. "This makes it even more perfect. In a few years, a number of large paper mills will probably spring up across the country, and the price of paper in the country will become increasingly cheaper. The cost of education for children from poor families will also be lower. Your Majesty's plan is flawless, and I admire it greatly." Seeing that no one had any further objections, Lu Jin immediately made the decision, "Then let's settle on this. The cabinet should organize the details and come up with a formal plan. After I review it, it will be officially implemented after the beginning of next year."

"Your subject obeys the decree." As the Prime Minister, Li Shanchang immediately agreed.

After the meeting ended, Ye Chen and the others were about to leave when Lu Jin stopped them and took them to the hydraulic machine tool workshop and glass workshop on the banks of the Qinhuai River. Tao Guangyi, Lu Jin's personal disciple, was also with them.

The group first arrived at the water power workshop, where a huge waterwheel was set up on the side of the workshop facing the Qinhuai River. The waterwheel was driven by wooden gears, and then the speed was increased by a four-stage gearbox, which drove several shafts on the beams of the workshop to rotate rapidly. The shafts, in turn, were driven by belts to operate twenty or thirty cast iron machine tools in the workshop.

Turning, milling, planing, grinding, boring, drilling, screw pulling, and copying machines—more than a dozen types of machinery are arranged in an orderly manner, clearly indicating that the operation has reached a certain scale.

Ye Chen followed Lu Jin into the workshop and saw dozens of craftsmen busy in front of various machines. In front of a very ordinary lathe, a young apprentice picked up a forged iron rod blank, skillfully mounted it on a three-jaw centering chuck, fixed the iron rod, adjusted the gearbox speed, and then turned the handwheel on the cutting tool to control the cutting tool to rotate at a constant speed on the brass screw.

High-carbon steel lathe tools made using the carburizing process, while not as hard as alloy steel, are more than capable of machining ordinary wrought iron. As soon as the lathe tool touches the iron blank, iron filings fall off the tool tip amidst a series of light friction and cutting sounds. After passing through the tool twice, the originally rough and dull iron blank is transformed into a smooth and regular round bar.

The young craftsman continued cutting into the bar stock, and soon a thin, curled iron shaving was shaved off the bar stock. In just a few passes, the originally rough iron bar stock was transformed into a smooth threaded rod covered with regular threads.

Lead screws are the core of all kinds of machine tools. Now that we have the ability to mass-produce lead screws, it is equivalent to having the ability to mechanically replicate machinery. Being able to self-replicate is the significance of the mother machine of industry.

This was the first time Ye Chen had ever seen such a scene of mechanical processing, and he was greatly shocked.

"What is this thing that can cut through iron like mud? And what is this grooved iron rod for? Could it be some kind of weapon? But if it's an iron mace, it doesn't quite look like one."

Lu Jin looked at the various machines without saying a word, but Tao Guangyi, who was standing beside him, proudly introduced them.

"These machines are called machine tools. They were modified from carpenters' stools and jade-carving grinding wheels. His Majesty calls them all machine tools, and they have different names depending on their purpose."

"For example, this machine for turning lead screws is just a regular horizontal lathe, and that machine that can cut five gunstocks at the same time is a woodworking copy milling machine. You only need to have a skilled carpenter cut a gunstock mold first, and this copy milling machine can cut five identical gunstocks at the same time based on the mold. The production efficiency is greatly improved. This is all His Majesty's idea."

Ye Chen was immediately puzzled but impressed, and asked, "Could this be a workshop that produces muskets?"

"I suppose so, but this place doesn't just produce muskets. According to His Majesty's wishes, it should be called the Mechanical Research and Development Center," Tao Guangyi immediately said.

Lu Jin watched as an automatic rifling machine operated beside him. A slender cutting tool rotated and moved back and forth inside the barrel. Each time it moved, a ratchet controlled the barrel to rotate 60 degrees automatically, and then the tool was pulled down again. After several back and forth movements, the tool was removed and the six spiral rifling grooves inside the barrel were formed.

When the craftsman took the barrel off and handed it to Lu Jin, Lu Jin held it up to the sunlight outside the door and looked at it. He was greatly excited to see the beautiful rifling inside. This was true art. With this, he could replace all the flintlock smoothbore muskets in the entire army with rifled muskets that fired Minié bullets. At that time, the range and power of the muskets would be even greater.

The military reform aims to equip the entire army with firearms, but it's impossible to continue using the old flintlock smoothbore muskets. At the very least, they need to be upgraded to rifled muskets that fire Minié bullets. However, the ignition method—whether to continue using flint or switch to percussion caps—depends on the progress of the glass workshop and the chemical plant.

Lu Jin returned the gun barrel to the craftsman, then went to Tao Guangyi and Ye Chen, asking Ye Chen, "What does Mr. Jingyuan think of these machines?"

Ye Chen immediately cupped his hands and said, "These machines can cut iron like mud and operate on their own. They are truly miraculous and ingenious. At first, I thought this was a weapons bureau that produced muskets, but Minister Tao said this is a mechanical research and development center. Forgive my ignorance, but I still don't understand what this means."

Lu Jin did not answer directly, but instead stamped his feet and said, "Just now in the cabinet, the papermaking policies mentioned by the gentlemen were, I said, expedient measures. If we want to promote new education, as Mr. Baishi said, several classes of students share the same set of textbooks. This may save the court's expenses, but it is extremely disadvantageous to those poor students."

“Wealthy students can buy books to study at home, reviewing what they have learned to gain new knowledge, and their learning will naturally be solid. Poor students, on the other hand, want to study but have no books to read. Over time, the learning progress of children from poor families will naturally fall behind that of children from wealthy families. This is extremely unfair to them. Do you think I am right, sir?”

Ye Chen, who was following behind Lu Jin, quickly cupped his hands and said, "Your Majesty is discerning and has a pure heart; you are truly a wise and sage ruler."

Lu Jin waved his hand, automatically filtering out his flattery, and continued, "If we want to make things fairer for students, we have to give all students new books for free every year so that everyone can collect a complete set of textbooks. But this would require a lot of paper, and the cost of compulsory education would be staggering, which the imperial court would find difficult to afford."

"The suggestions you just made may be a temporary solution, but they are not long-term solutions. To truly solve the problem, we need to find ways to produce more paper, produce a large quantity of paper, and reduce costs while increasing production speed."

"If Confucian scholars encounter such problems, the solutions they can come up with are nothing more than those mentioned by the teacher. But I am a direct descendant of the Gongshu family. The Gongshu family has its own methods. Whether you Confucian scholars regard it as a technique or a principle, I don't care if it's a black cat or a white cat. A cat that can catch mice is a good cat, and a subject that can solve problems is good learning."

"Look at this profile milling machine. If a carpenter were to make these gunstocks, he might not be able to make more than a few in a day. But this milling machine can turn automatically and tirelessly. In a day, it can do the work of a dozen or twenty carpenters. Its efficiency is undeniably fast."

"If that's the case, there are spinning wheels for spinning thread and looms for weaving cloth, so why can't papermaking be done by machines? If there were a tireless machine that could make paper day and night, one papermaking machine could replace an entire paper mill. Would the country still be short of paper then?"

(End of this chapter)