Second-hand time travel: Liu Bei, the big-eared bandit

Chapter 87 A Good Deal for Cao Cao (Seeking First Subscription)
"What does this matter have to do with the business deal that Liu Bei mentioned?"

Cao Cao was certainly aware of these circumstances; he had indeed faced difficulties when he was raising grain for disaster relief in Dunqiu County.

It wasn't that he couldn't find food; the Cao family in Pei State had plenty. However, Pei State was far away, and there was a drought at the time, so the grain couldn't be transported by water. By the time it reached Dunqiu, there wouldn't be much left.

The reason Liu Bei was sent to seize the grain from the Li family in Lihu was simply because Lihu was close to Dunqiu, making transportation less costly... and the Li family in Lihu just wouldn't sell it.

"As a member of the Imperial Advisory Council, Cao Jun should be aware of the Emperor's edict to requisition horses from the prefectures and kingdoms. The Emperor's decree is lenient, requiring only one fine horse to be requisitioned for every two thousand households; it is not an oppressive policy..."

Jian Yong's expression had lost its playful tone, and he said very seriously, "But what the emperor wants are fine horses, and he has even set up the position of Luji Stable Manager, who is in charge of verifying the requisition, feeding and selecting the best... With Cao Jun's family background, he must understand what the result will be, just like with grain."

"This is the story my elder brother asked me to tell Cao Jun... My elder brother said that powerful and influential people will inevitably monopolize the horse road, just as they monopolize the canal transport. The price of rice in Luoyang rose back then, and the price of horses will rise just like that now."

"Now the border trade is controlled by powerful warlords, and the Hebei trade routes have also been cut off by them. In two months, even in Luoyang and the counties of Guandong, a single horse will be worth two million, and no one will be willing to sell it."

“My elder brother has a horse, but he is observing mourning at home. Therefore, I am giving this horse to him to repay the kindness of my brother Mengde in giving him the horse back then.”

After saying that, Jian Yong picked up the wine cup and drank a lot more. This time, it wasn't because his mouth was dry, but mainly because the sweet wine from Luoyang Music House was quite delicious.

"The gesture of repaying a gift of a horse?"

Cao Cao pondered for a moment, then a helpless smile appeared on his face: "Ha...yes, it was indeed a gesture of goodwill in gifting the horse. I never expected that Liu Bei would remember to return it..."

Having learned about the grain issue from Jian Yong, Cao Cao understood the meaning behind Liu Bei's deal.

When the emperor issues an edict to requisition horses, it is not a request for tribute, but an order to procure military supplies. This matter cannot be compromised, nor can it be replaced with money or silk.

Moreover, this was an unexpected and additional requirement, and each county had to levy horses, which had to be delivered in kind.

The stable master of Luji was under the jurisdiction of the Grand Master of the Imperial Stud, which at that time was controlled by eunuchs. They would verify the quality of the horses conscripted to the capital, and inferior horses were not acceptable—even if they were all good horses, the Grand Master of the Imperial Stud would still take a cut.

If we only look at the imperial edict, it is indeed not much to levy one horse for every two thousand households. At present, the Han Dynasty has ten million households and a population of fifty million. This levy standard only requires the collection of five thousand fine horses.

Emperors of the Han Dynasty would levy taxes on horses, but this standard was the lowest since the Han Dynasty began, because the border pasture subsidy policy for raising horses had been abolished at this time.

but……

Each prefecture, in order to fulfill the imperial court's levies, would naturally assign tasks to the counties.

To ensure that the horses passed the inspection by the stable master of Luji and to prevent the county from using inferior horses to fill the quota, the requirement of one horse per two thousand households was reduced to one horse per several hundred households after reaching the prefecture.

When the task was assigned to the county, the county also had to ensure that it received good horses. As a result, the standard of one horse per several hundred households inevitably became one horse per hundred households or even one horse per several dozen households.

Then, the county will find a few suckers to get the horses.

This is assuming that county and prefectural officials are relatively honest.

Originally, only 5,000 fine horses needed to be conscripted nationwide.

But when it finally reaches the local level, it will be multiplied by tens or hundreds of times.

The entire world would need at least tens of thousands of horses to satisfy the market—this great Han dynasty doesn't have that many horses!
A reasonable edict from the emperor can disrupt a completely unreasonable market.

What should the suckers in the south do now?
Then we'll just have to buy horses from those remote and desolate places at high prices...

But, but.

They can't buy it.

Once such a rigid demand is encountered, especially one involving imperial edicts, powerful and influential figures will inevitably monopolize trade routes, just like with the Grand Canal.

Once the imperial edict spreads throughout the land, there will surely be no one selling horses.

Just like in a year of famine when no one is selling grain, monopolizing such trade routes not only allows for profit but also enables the monopolization of official positions and power.

If the counties cannot fulfill the mobilization order, they will have to ask powerful figures in the region for help.

Especially those officials who originally did not curry favor with powerful families—when no one in the south was selling horses, they had no choice but to curry favor, otherwise they would lose their positions if they failed to fulfill the imperial edict.

Official positions are bought with real money; the sunk costs are too high...

This is true of all wealthy families' businesses; they are never simply about making money.

Moreover, monopolizing horses is risk-free, not illegal, and won't incite a popular uprising. It's even a matter of personal favor. Even if you sell a horse for two million, you can still earn a good reputation for "generous relief."

"This matter does not violate the law and is indeed highly beneficial... What does Liu Xuande intend to do?"

Cao Cao understood and realized that Liu Bei had indeed given him a good deal.

This deal was precisely based on the good relationship between Cao Cao and the Yuan family.

Sending Su Shuang to the south to sell horses would result in suppression and persecution by powerful rightists, and even if he succeeded, it would be extremely risky to bring the money back.

Su Shuang stood at the front desk only to hide Liu Bei, so that Xihe Pavilion would not be targeted.

Only Cao Cao was neither afraid of suppression nor influenced by the Yuan family, and only the wealthy Cao family had so much money to wholesale horses.

Meanwhile, Cao Cao's father, Cao Song, was then appointed as the Grand Minister of Agriculture—a position in charge of national finances and taxes.

Conscripting horses is also a form of tax.

The expenses of the Taipu (Grand Master of the Imperial Stud) for horse administration, such as the cost of levying and raising horses, need to be applied for from the Dasinong (Grand Minister of Agriculture).

When it comes to the supply and requisition of military horses, the Grand Master of the Palace also needs to coordinate with the Grand Minister of Agriculture.

With Cao Song around, Cao Cao could sell horses however he wanted—as long as he had horses in his possession.

"As long as Lord Cao raises the funds, he can send someone to Zhuojun to collect horses and wait for the price of horses in Luoyang to rise. Gold, silver, and money can be used for trade. Soon, the price of horses in Luoyang and Guandong will reach millions, and there will be no market for them. But no matter what the price of horses is in the south, my elder brother will sell them at the current market price, guaranteeing that they are all high-quality horses."

Jian Yong nodded and gestured: "Right now, the price of a horse in Luoyang is 300,000, and it's rising every day... If Lord Cao comes to collect it, we'll all pay him 300,000 per horse."

“Even if prices drop in the south, if Mr. Cao has not sold all his horses, I will buy them back at this price, so that Mr. Cao will not have any risk of losing money.”

After saying this, Jian Yong looked at Cao Cao with a smile: "Lord Cao, here, a single horse can bring in a million in profit..."

"It's a good business... How could it not sell out? At this point, Luoyang is already a case of 'high price but no market'..."

Cao Cao sighed deeply: "No wonder the palace refused to accept my memorial the other day... It seems that there are people in the palace who are also after this horse. To keep their official positions, there are plenty of people willing to buy it for two million coins a horse!"

After some thought, Cao Cao took his leave and rode away on Jueying.

He was going to ask his father for money to take over the business deal.

Take it for 300,000, resell it for 1 million, do good deeds, and bring allies from various counties to the Cao family. There's no risk involved, so why not?

Jian Yong drank a few more cups at the music hall and was about to leave when he saw the beautiful female musician appear at the door of the private room.

"My surname is Bian. May I ask, Jian Lang, how are Liu Lang doing now? Are they still carrying on their crimes?"

Bian Ji lowered her head and asked.

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(End of this chapter)