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Text Chapter 55 Riot

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    The new homespun cloth has better quality and wider width. It has been deeply loved by the local people in southern Jiangsu since its introduction.  However, the increase in the volume of new homespun cloth has been so drastic that after almost eroding the market gap left by the old homespun cloth, the new homespun cloth in many cloth stores has inevitably become unsaleable.  With the increase in inventory on hand, many cloth stores have begun to adjust the retail price of new homespun cloth. The adjustment range is not large, about 2 to 3 cents per piece.  Cloth stores are still optimistic about new homespun cloth in the long term, and do not want to cut prices too hard and cause themselves to suffer losses.  But those newly established cloth companies engaged in the acquisition and distribution of new homespun cloth are extremely sensitive to this.  These companies have all seen the huge benefits of new homespun cloth.  In order to grasp more supply sources in the shortest time and sign more OEM households, the competition between these companies has become very fierce, and the OEM fees have also risen significantly due to mutual price increases.  Coupled with the overly aggressive expansion and low internal management level, profits were significantly eroded.  It can be said that under the crazy expansion, their cash flow is actually very tight.  Therefore, they are extremely sensitive to prices. Every one or two cents reduction in the price of new homespun cloth can directly stir up their nerves and may disrupt their fragile cash flow.  Once the price is lowered, in order to maintain the stability of cash flow.  These companies turned to selling more inventory to the market in an effort to recover as much capital as possible.  It's not that no one has thought of the terrible consequences of doing this, but everyone has a sense of luck and believes that as long as their hands and feet are fast enough, they will definitely not be the unlucky ones in the end.  Everyone wants to do this, so there are more new homespun cloths for sale on the market, and the price drops faster.  As a result, a terrible vicious circle emerged.  In less than a month, the retail price of new homespun cloth dropped from 5 cents and 6 cents per piece to 4 cents and 3 cents.  This is a hell of a price!  This price has reached the break-even point of Yang's Cloth Company.  Yang's Cloth Company is not like this. How can those cloth companies and cloth shops with worse management levels and higher OEM fees be able to withstand it?  The consequences are disastrous!  Not only did a large number of newly established cloth shops and companies close down, but farmers who had signed OEM contracts were either owed OEM fees or had their contracts forcibly terminated. More people were clinging to the cloth they had woven but no longer had it.  I can't wait for someone from the cloth company to collect the cloth.  Of course, farmers will be angry if their hard work is not rewarded.  Gradually, some riots occurred in many places in southern Jiangsu. Some of them beat up the clerks of the cloth company, some destroyed the cargo fleet, some smashed the company's signboard, and some went to the government to complain.  , it seemed a little confusing for a while.  In fact, once the machine yarn and hand-drawn machines are introduced, they will erode the labor opportunities of a considerable number of people, and conflicts have already accumulated.  The main reason why the riots have only occurred now is that although local textile households can no longer spin homespun yarn and weave old homespun cloth, many cloth shops or companies are actively coaxing them to sign family OEM contracts.  Of course they are not dissatisfied if they can join the OEM model that makes more money.  It is only now that there is no hope of joining an agency, and one may even be kicked out, that this conflict has been unleashed.  In the Liangjiang Governor¡¯s Palace in Nanjing, Zhang Zhidong, the governor of Liangjiang, summoned local officials from Jiangsu and southern Jiangsu to understand what happened and discuss countermeasures.  Seeing that there were already signs of civil unrest, this could not help but attract the attention of the government.  Zhang Zhidong was the acting governor of Liangjiang in the 20th year of Guangxu's reign. Originally, he was going to return to Huguang at this time this year, but now that he encountered this kind of thing, he couldn't help but postpone his trip.  Jiangsu Governor Kui Jun was in front of him, introducing the ins and outs of this incident in detail.  Zhang Zhidong was a Westernizationist. In the past few years when he was the governor of Liangjiang, his main focus was on Jiangsu's local new education and the training of a self-strengthening army.  In terms of industry, at the beginning of this year, he sent Lu Runch to be the manager of the Suzhou Commerce Bureau, Ding Liying to be the manager of the Zhenjiang Commerce Bureau, and Zhang Jian to be the manager of the Tongzhou Commerce Bureau to set up modern machine-based textile factories locally.  As before, his eyes were still on big machinery and big industry, and he didn't know much about the changes in the local rural homespun cloth industry.  Even Jiangsu provincial government officials usually pay very little attention to the rural agricultural and sideline economy. It was only because of the signs of riots that appeared all over southern Jiangsu that the Jiangsu governor realized the seriousness of the problem.  He knew that when the Governor summoned them this time, he would definitely inquire about what happened, so he learned about what happened before coming.  "Lord Governor Xian, the reason why there is such turmoil among the people in southern Jiangsu this time is all because of the introduction of hand-operated looms and looms!" "Gun yarns? Only looms were introduced in southern Jiangsu recently?" Zhang Zhidong was a little confused.  Strangely, in Huguang and other places under his jurisdiction, machine yarn has long been popular. One of the important reasons why he established the Hubei weaving layout was that he saw the vast market for machine yarn.  Kui Jun replied: "Yes, because the machine yarn is relatively thin compared to the earthen yarn.The advantages are obvious. There are many textile households in southern Jiangsu. Local officials are afraid that the hasty introduction of machine yarn will cause many local textile households to have nothing to do. In addition, some cloth shops are afraid that the increase in cloth will cause prices to plummet.  Therefore, in the past few years, thanks to the efforts of local governments and local cloth industry chambers of commerce, machine yarns did not have many opportunities in southern Jiangsu.  " "Well, this is also a safe strategy!  Zhang Zhidong nodded slightly, agreeing with the plan. The Jianghan Plain in Huguang is a large cotton-producing area and has always been an important export area of ??cotton products. Among them, Jingzhou homespun cloth is very famous in the Huguang and Sichuan areas. After the large-scale invasion of machine yarn,  It also caused some turmoil in the local area. If the chamber of commerce had taken some countermeasures and buffered it, the result would have been much better. Fortunately, there were not as many local textile households as in southern Jiangsu. Although the farmers were a little dissatisfied, they were not satisfied.  ¡°But now it seems that the local native yarn in southern Jiangsu has been replaced by machine yarn?  "Zhang Zhidong himself has run a modern textile factory and is well aware of the huge advantages of machine yarn. "Yes, machine yarn has so many advantages over native yarn that it cannot be stopped by human power.  Kui Jun slowly replied, "Especially since this year, people in Wujin County, Changzhou Prefecture, have begun to use a hand-operated woven fabric with an improved shuttle device, using machine yarn as raw materials and a new family OEM model.  Both farmers and merchants have made huge profits.  Under the temptation of huge profits, a large number of merchants and wealthy people joined in, causing the quantity of homespun cloth to increase dramatically, which caused the price to collapse.  Seeing that Mr. Du Xian was interested in hand-pulling machines and the family OEM model, Kui Jun made some explanations based on what he knew: "This was all promoted by a business called United Cloth Company in Wujin County."  The hand-drawn machine adopts the English flying shuttle device, which can more than double the weaving efficiency and increase the cloth width by half. The new homespun cloth is very popular after it comes out" Because it was a hasty understanding of the situation, Kui Jun could not possibly  The people below saw that the United Cloth Industry was expanding everywhere and was very eye-catching. It seemed that it was the first to promote hand-made machines and household OEMs, so they regarded the United Cloth Industry as the initiator of all this.  He was also among those being summoned. Hearing that the turmoil was caused by merchants under his rule, he felt a little uneasy, fearing that the governor and governor would be angry with him. "These profit-seeking businessmen know how to cause trouble to the court.  They should be given some color as a punishment!  " Many local officials below have begun to curse and shout that they will give these businessmen who are making trouble a killing blow. However, seeing the Governor's lowered eyebrows and silence, he did not dare to show too much.  ¡°Handheld machine Home OEM, well, it¡¯s still very thoughtful!  "Zhang Zhidong showed a certain interest in this United Cloth Company. The Suzhou prefect advised: "Master Governor Xian, you must not be too lenient to these merchants.  When they are profitable, they rush to sign OEM contracts with farmers.  As soon as the situation goes wrong, these farmers will be abandoned immediately, causing public resentment and leaving a mess for the government to wipe their butts. It is really unreasonable!  " The prefect of Wuxi also advocated taking tough measures against merchants. He said: "Yes, these cloth shops or some other cloth industry companies charge weavers huge prices when they are profitable, but when they are not profitable, they abandon them like grass. It is really not a blessing to the place.  , should be punished!  In particular, the United Cloth Industry, which was the instigator, was the largest and had the largest number of farmers making trouble, so it should be severely punished.  ¡± There are also many officials who asked the Governor¡¯s Office to order that hand-pulled machines and family OEM models be banned, and even machine yarns must be expelled. Everything must be returned to the original state, and old homespun cloths can be woven with native yarns again. Otherwise, it will not be enough to ensure the livelihood of local farmers.  Work opportunities.
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