A Good Landlord in the Tang Dynasty: Starting from the Village Chief

Chapter 718 30/70 split
"How is this market managed now?"

Accompanied by a group of local gentry and merchants, Li Yi strolled through the market, observing that it was lively yet orderly.

Luo San replied with a smile, "We've set up a gathering."

"Oh? How exactly does it work?"

"Actually, it's similar to societies, bridge societies, and road societies. The landlords, merchants, and others in this market get together, elect a council, and choose a president, vice presidents, etc. The landlords, merchants, and others are all members of the gathering."
We have established rules and regulations, charging landlords, shop owners, vendors, and residents a certain fee. We use this money to hire people to look after the area, maintain order, clean the streets, and even build public toilets, etc.

Li Yi praised it highly, saying, "Well done."

The leader of the gathering was Luo San.

Everyone trusted him, and because of his special relationship with Li Yi, the market could remain stable with him as the chairman.

Li Yi inquired about the fees charged.

There are several types of fees, which generally include entry fees, sanitation fees, security fees, management fees, and temporary stall fees.

The stationary merchants in the market, who own shops, pay a stationary merchant fee, while itinerant merchants pay a traveling merchant fee when they enter the market.

Small vendors also have to pay market entry fees and stall fees, but the amounts they pay are very small.

The money collected,
The gathering also involved some activities; a guard team was hired to patrol day and night to maintain order, and watchmen were also hired to keep watch.

Public toilets and garbage collection points were repaired.

Therefore, this street is very lively and crowded, but it doesn't appear chaotic or dirty.

Walking to the familiar bridge,
Li Yi discovered that a new gate had been built here, just like the gate of a neighborhood.

"Our market town is actually shaped like a tree branch, with two roads intersecting and three entrances, forming a market street that stretches for about five or six miles."
We then built market gates at the three entrances and erected fences around them, which made the market safer and also made it easier to collect entrance fees from merchants.”

It's starting to look more like a town.
Although it's just rammed earth and wooden fences surrounding several villages, the presence of the three-way market street as the center, which integrates these villages, makes a real difference.

"good."

"You previously said that the Wannian County and City Administration sent a city official to be stationed here permanently?"

"Well, they're not really proper city officials, just two unofficial hangers-on sent by the city government. They don't have to do any work here; we give them a sum of money to hand over periodically," Luo San said.

It's not that those two didn't want to get involved,

They dare not interfere in matters here.

So he simply stopped caring about everything and began to enjoy a life of leisure, since Luo San would give the county government a sum of money for the market every month anyway.

Not too much, but not too little either; everyone, from top to bottom, could manage.

Although the money handed over is nothing compared to the bustling market, it's still good enough that we can at least have some soup to drink.

The market was basically a self-governing assembly, more like a chamber of commerce.

They're still using the same methods as the old associations and bridge associations, and they're quite successful. The association even buys land, rents it out, and builds shops and warehouses for rent. They've also built a warehouse, which can be used to help and relieve the elderly and needy and for other good deeds.
It was also used to provide loans and other services to merchants participating in the gatherings, both to help them and to earn interest.

The Tang Dynasty had no commercial taxes.
However, this is actually equivalent to having commercial taxes, and there are even management fees, etc.

However, the fees charged are relatively small, which is acceptable to both stationary merchants and itinerant merchants, as well as street vendors.

And they did indeed do something worthwhile after receiving the money.

"Hmm, what happened?"

Li Yi saw a row of cages standing at the entrance of the market at the bridgehead, with people wearing shackles and locked inside.

"thief."

Luo San looked at the people in shackles with disgust.

Mr. Dong's claim that doors are left unlocked at night and lost items are not picked up on the road in Yusu Township is actually an exaggeration.

On the contrary,
Because of the prosperity and liveliness of the Onjuku Market,
This attracted many petty thieves and even scoundrels.

However, there is a special guard team recruited for the gathering, which includes guards at the gate and street pavilions, as well as mobile patrol teams.

From minor offenses like spitting or urinating indiscriminately, to theft and fighting, and even shortchanging customers, selling inferior goods as superior ones, or passing off counterfeit goods as genuine, all fall within the scope of management.

"Our place is lively and prosperous, which attracts many thieves."

They have to catch quite a few every day.
But there are always people who dare to steal.

Thieves are actually quite clever; they won't go to places where even rats have run away from their homes due to poverty.

With such a bustling town and a daily market, the large flow of people naturally attracts these people.

There are quite a few thieves, and some even specialize in stealing during market days.
A large, noisy, and chaotic crowd is the perfect place to fish in troubled waters.

Those who come here to steal are likely to get caught.

The guards here absolutely forbid thieves. In other markets, people might not dare to do anything if they see a thief, but here, there is a reward for catching one.

The guards looked at these thieves like they were fat sheep, walking gifts of money and provisions.

Arresting someone won't get you any preferential treatment.

He was whipped on the big tree at the end of the suspension bridge, then locked in a cage under the tree and made to stand in shackles for a day or two before being sent to the county.

Anyone who tries to cause trouble in Yujuku Street, whether it's theft, robbery, or fighting, will not have a good ending.

Don't even think about bullying and monopolizing the market here.
Who could be stronger than the Prince of Dai and Minister Li Yi behind Chairman Luo San?
"If you catch thieves or robbers, don't use vigilante justice, and definitely don't hurt anyone. Just lock them up first, and then hand them over to the Wannian County government for proper handling," Li Yi reminded Luo San.

Whether it's the town's gatherings or the guards recruited for those gatherings, these are civilian organizations, not official ones.
They have no law enforcement power, let alone the power to impose sentences.

Luo San said, "Okay, next time we catch someone, we'll just hang them from a tree, we won't beat them."

The fact that the guards didn't fight doesn't mean the merchants and civilians won't fight.

Not hitting afterward does not mean that hitting is not allowed during the arrest.

Anyway,

These thieves are like rats in the street, hated by everyone. Even if they are beaten, as long as they are not seriously injured or maimed, no one will pursue the matter.

"The most important thing in a market is to operate with integrity."
"There can be no counterfeit goods, and absolutely no shortchanging. Merchants must be courteous." "Please rest assured, Your Majesty, we are very strict about this. All merchants have affixed their fingerprints to the assembly agreement."

Anyone who dares to shortchange customers, sell inferior goods, or even counterfeit products will be fined until they go bankrupt and have to close down.

There's another thing you should pay attention to.

In market transactions, we must guard against the use of counterfeit or inferior coins. You should display sample coins of the Kaiyuan Tongbao coin issued by the imperial court in the market.
Counterfeit or substandard currency should be punished, and serious cases should be reported to the authorities for investigation.

The market should have a public scale, a sample coin, and other measuring tools such as a market ruler and a market measuring cup, so that people can check the information at any time.

For some large transactions, the organizers of the gathering also have the obligation to act as witnesses.

Honesty, fairness, and standardization
The town under Luo San's jurisdiction was better than Li Yi had expected.

This was almost a form of local self-government, far superior to the government-managed markets and neighborhoods; it was vibrant and thriving.

The trade included grain, wine, medicine, salt, tea, paper, and various handicrafts such as woodenware, bambooware, reed weaving, and straw weaving, as well as livestock and poultry such as cattle, horses, sheep, pigs, chickens, and ducks.
The air here is bustling and vibrant.

"We've already built up a good reputation here, and many businessmen and ordinary people come from afar to visit."

Managing the commerce and industry of such a small town, Luo San's income from gatherings was quite considerable, including membership fees, market entry fees, stall fees, sanitation fees, management fees, and security fees, which accumulated into a substantial sum.

In addition to building shops and warehouses for rent, they also engage in lending and brokerage businesses.

They also bought land and leased it out.

Seemingly inconspicuous
After deducting costs and expenses, the annual net profit exceeds one million.

In just a few years, the money and silk in the association's accounts have reached more than three thousand strings of cash, not even counting the thousands of acres of farmland purchased, as well as the hundreds of shops and warehouses under its name.

"How can there be so many?" he exclaimed in surprise.

Luo San explained with a smile, "Actually, we mainly make our own money from our own business."

Besides charging rent and earning agency fees
The association also has some self-operated businesses, such as pawnshops and lending, which are extremely profitable financial businesses.

These were things that were previously done by wealthy families, nobles, and temples.

The Yushu Town market is also being held now. It's a huge market with so many merchants, absorbing the deposits of vendors and ordinary people, and then lending them out.

It may seem insignificant, but the actual benefits are astonishing.

This was originally an act of snatching food from a tiger's mouth.
But because Li Yi was behind them, no one dared to interfere.

"You guys aren't lending money at exorbitant interest rates, are you?" Li Yi asked seriously.

"We wouldn't dare. We'll stick to the old practices of the school council and the bridge association, even charging the same interest rates."

However, because there are many merchants in the market now, the money circulates quickly, and our interest rates are low, we've even attracted many merchants from Chang'an City.

Virtuous cycle
The money earned from the gatherings was used to buy land, build shops and warehouses, and then rent them out for profit. The money and grain in the accounts were then used for lending to earn interest.
It keeps going around and around.

The money and grain kept increasing as they were transferred.

"Since the gathering generates so much revenue, a portion should be allocated to public welfare, such as building bridges and roads, and providing relief to the elderly and orphans."

They also had to hand over a portion to the imperial court and government.

Take the initiative.

My personal suggestion is to use 10% of the annual profits to repair bridges, pave roads, dredge waterways, and repair river embankments.

Another ten percent will be used to relieve the widowed and orphaned in the countryside and to help the sick and needy.

Then half of the profits are to be handed over to the prefectures and counties.

30/70 split,

Take out three parts and keep seven parts as capital.

Luo San readily agreed.

This gathering isn't his private property.

This is dependent on the Li family, and it imitates Li Yi's Wuji School Association, etc.

The fact that they were able to earn so much money was actually beyond Luo San's expectations; the council didn't even know how to spend it.

They had no choice but to continue buying land and building shops and warehouses, and even started to run their own businesses, and even used more and more of their money to borrow and collect interest.

Of course, they also consistently used some of their money and grain to help the elderly and widows, and to repair bridges and roads.

Li Yi then inquired about the treatment of the guards and the council members.

"We could increase the wages of the guards and give them some bonuses during holidays."

The council members have to juggle management responsibilities, which is quite demanding. It's good that they get together for a meal during holidays and receive some pork and rice as a gift.

“Even during holidays, we can give some gifts to the landlords and merchants in the market.”

If you have money, why worry about not knowing how to spend it?

Luo San drew inferences from one instance to another: "During festivals, the township head, village head, and other officials in the village also had to send some festival gifts."

“The county officials and runners also have to send a copy.”

Li Yi nodded, "Gifts are a must, you have to give something. Don't forget to give gifts during holidays, but don't give too many, otherwise it will be considered bribery."

"Take those thieves to the county seat right away. Don't leave them hanging like this."

"Also, since the market is profitable, I think we should stop charging small vendors entry fees and reduce stall fees as well."

“Okay.” Luo San agreed without hesitation.

Looking at the bustling market, Li Yi couldn't help but sigh. The imperial government was complaining about being broke, yet this small village market was making so much money.

They can earn thousands of coins a year.

Those high-ranking officials in the imperial court should really learn from Luo Sanlai.

(End of this chapter)