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Text Chapter 56: Killing Stick

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    Zhang Zhidong has been immersed in officialdom for many years and knows that the attitudes of these officials are not that simple. At least they have accepted the contributions of some businesses whose interests have been infringed, and specifically suppressed these cloth companies and cloth shops that had taken the lead.  He didn¡¯t dwell on the issue, but asked about the solution.  "Aren't there many cloth industry guilds in southern Jiangsu? Why didn't they play any role this time? Just let the price of cloth keep falling?" He heard Kui Jun's introduction that the local cloth industry guilds should be very important.  Some influential people, why haven't they made some adjustments to the price of cloth?  "Report to Lord Governor Xian!" Changzhou magistrate replied: "As far as I know, the local cloth industry chambers of commerce are all headed by traditional cloth merchants. Under the current trend of new homespun cloth,  , many old cloth merchants did not respond quickly, and the supply of new home-made cloth in their hands was quite limited. And many of the new cloth merchants who had the supply had no say in the local chamber of commerce. Therefore, the power of the chamber of commerce played a small role in this price drop.  "The new forces have no power and the old forces are powerless, so the cloth industry guilds in various places have become somewhat existential.  Zhang Zhidong pondered for a moment and said: "The current difficulties are mainly due to unstable cloth prices. It is difficult for these cloth companies to survive and cannot pay the processing fees to OEM households, which has triggered riots in some places. The folk customs in Jiangnan area are gentle.  , As long as farmers have work to do and wages to pay, there won¡¯t be any big problem.¡± Listening to the tone of the governor, it seems that he has no intention of banning new homespun cloth.  The officials below had no choice but to nod in agreement, and then expressed their agreement: "Indeed, maintaining the stability of cloth prices is the first priority!" The Suzhou prefect had some doubts: "After the introduction of woven yarn and hand-pulled machines, the efficiency improved rapidly, but the same  Yes, there will be a lot of idle labor. Even if the price of cloth finally stabilizes, it will be difficult to absorb the sudden increase in surplus labor. " Jiangsu Governor Kui Jun did not seem too worried.  "I heard from others that this new homespun cloth is much more competitive than the original old homespun cloth. Because the old homespun cloth was made of homespun yarn, it could only be sold near southern Jiangsu. This new homespun cloth is to stabilize the selling price.  At a level of about 5 cents, even if it is sold to Shandong in the north, Jiangxi in the south, and Hubei in the west, it is still competitive. In this sense, we do not need to be too pessimistic. As long as time permits, local farmers will still have jobs.  It can be done.¡± Songjiang Prefect also agreed with the governor¡¯s judgment: ¡°Yes, the new homespun cloth is still very competitive. Because it is a wide-width cloth, these new homespun cloths have even squeezed out some of the market for Citicloth.  "Hearing this news, Zhang Zhidong's eyes lit up.  The fact that he could beat the bunting suited his taste very well.  As a result, he was even less willing to attack Xin Tubu.  As a Westernizationist, he would never resist technological progress.  "Most of the people engaged in the household cotton textile industry in the countryside are women and the elderly and other semi-laborers. They have less work opportunities. At most, their lives are more difficult, but not to the point of being unbearable. Well, everyone understands this.  On the whole, the emergence of new homespun cloth will not bring any catastrophic consequences, and we don¡¯t need to be too afraid of it.¡± After Zhang Zhidong thought about it, he came up with specific measures.  "Commercial matters should still be resolved by these merchants themselves. Your local officials should urge the local cloth industry chambers of commerce to complete the replacement of old and new ones as soon as possible, so that the chambers of commerce can play their role in regulating the price of new homespun cloth. Before that, it is up to the local  Officials are temporarily coordinating the production and sales of cloth in various regions. ""In addition" He paused and looked at the faces of many officials below who seemed to be a little unswerving.  Anyway, many people accept the filial piety of others, so we don¡¯t want to embarrass them too much.  "Some cloth merchants were indeed overly domineering and reckless some time ago. Without rectification, it is not enough to clean up the place. Let's put it this way, with a limit of 50,000 yuan, those with insufficient capital are no longer allowed to sign family OEM agreements with farmers. As for that  United Cloth Company, as the instigator and the largest cloth company, mishandled the situation and brought disaster to the local area. It will be fined 80,000 yuan to resettle the farmers who suffered serious damage." "I heard the arrangement of the Governor!  , many officials looked much better.  Although they failed to finally wipe out the new homespun cloth, they at least dealt a good blow to the new cloth companies and cloth merchants, which can be regarded as a tribute to the frustrated old cloth merchants.  Zhang Zhidong¡¯s measures sound harsh, but they are actually necessary.  Commercial banks without certain financial strength have limited payment capabilities and can easily default on factory fees to farmers, thus causing local unrest.  As for the punishment of the United Cloth Industry, it is of course a consideration to scare the monkeys. The merchants need to know the cost of causing trouble for the government.  But in general, it is still held high and put down gently, with more of a protective meaning.  Zhang Zhidong was convinced that United Cloth Industry could produce hand-drawn machines and came up with a family OEM business model.?Still appreciate it.  Since New Homemade Cloth was profitable at the beginning, and United Cloth had the largest OEM resources, the fine of 80,000 yuan should be affordable.  Now that the Governor's Mansion has punished United Cloth Industry, the officials below will not cause trouble for it again.  It¡¯s a pity that the Governor thought he had good intentions, but still sentenced the United Cloth Company to death.  After the penalty order was issued, United Cloth Industry announced its dissolution not long after.  Most of the OEM resources owned by it are divided up by several shareholders of United Cloth Industry.  "Why? Dad, why are these old guys so short-sighted? Can't they see that, in fact, the government does not want to kill our United Cloth Industry. Otherwise, they can shut down our United Cloth Industry." Zhou Yi  Fei seemed a little hysterical.  The results of his hard work for more than half a year were wiped out in an instant. Such a blow was really unbearable for him.  When the price of cloth fell sharply and many farmers were harassed by their cloth company because of default in payment of foundry fees, he did feel very nervous.  He knew very well that local bureaucrats were very afraid of popular uprisings, which would directly affect their black hats.  But when the final result came, they and the cloth company were fined 80,000 yuan, but the company could still operate as usual, which made Zhou Yifei relieved.  Although 80,000 yuan is a lot, as long as United Cloth Industry is given some time to recover the payment, they are fully capable of paying the amount.  Although the profit margin of United Cloth Industry is not as good as that of Yang's Cloth Industry, its advantage is that the scale of its foundry households is large enough. There are nearly 40,000 foundry households, which is more than three times that of Yang's Cloth Industry.  As long as he is given some time to solve the current cash flow problem, he can ensure sufficient profits. After he sorts out the company's internal management, the profit margin can also exceed the level of Yang's Cloth Industry.  He is still very confident in the future of the company!  But other shareholders didn¡¯t give him a chance.  When the riot broke out, they blamed Zhou Yifei for being too impulsive and impetuous, which caused trouble. Many people clamored to separate the family at that time.  The official punishment order gave them an excuse to withdraw their shares.  The United Cloth Industry, which had been prosperous for more than half a year, fell apart in an instant. It can be said that its prosperity was as rapid as its failure!
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