New Shun 1730

Chapter 949 European Trade Area (Part 2)

As long as you are willing to study, there are always more ways than difficulties.

It's just that the words of the Dutch smuggler really touched the blind spot of the thinking of the Dashun sea merchants.

It doesn't mean that the merchants of Dashun are gentle, respectful, frugal and fair in business.

The Dashun Western Trade Company is full of former smugglers, pirates, and criminals who should be hanged or put in a 20-jin shackle in theory.

More than one-third of the major shareholders' first pot of gold is not clean. Very dirty.

They have done murder, arson, smuggling contraband, bribery, robbery, armed tribute to Shuri Castle, kneeling and licking the shogunate and calling him Your Majesty, and writing tribute tables to the Nagasaki Bugyo.

It's just that the special national conditions of Dashun hindered the thinking of Dashun's smuggling talents.

The thinking of Dashun smugglers is determined by the special national conditions of Dashun.

The only reason that hindered their smuggling was the policy of various countries to prevent the outflow of silver.

The goods are exquisite and cheap. What prevented them from smuggling to Japan before was Japan's closed-door policy.

My goods are good and my price is lower, so the only thing I have to consider is how to sell them.

That's the idea.

But the idea of ​​the Dutch smugglers is different from that of the Dashun.

The idea of ​​the Dutch smugglers is not to use high-quality products with good quality and low price to defeat low-quality products.

But to "pass the real off as the real".

Take Chinese tea for example.

They are all Wuyi tea, and now they are placed in front of you. After brewing, you are asked to drink. Which one do you say is legal? Which one is illegal?

It is even very likely that these two bags of tea grow on the same tree.

However, from a legal point of view, one bag is legal and the other is smuggled.

The living environment of the Dutch smugglers destined them to have different ideas from those of the Dashun smugglers.

The living environment of the Dashun smugglers also destined them to have different ideas from those of the Dutch smugglers.

The Dutch smugglers pointed out that the problem of Europe is that it is in a vicious competition of mercantilism, and good quality and low price are not the first priority attributes for goods to be sold. If the theory of free trade is true, then there is no need for China, as Indian cotton cloth would have destroyed the British textile industry twenty years ago.

Of course, they also said that they are the beneficiaries of mercantilism and believe in the philosophy of free trade in their hearts, but they clearly support mercantilism. Without mercantilism, how could there be the good old days of smugglers?

So in this environment, they have a set of special routes for smuggling that are "applicable in Europe and only applicable to smuggling in China."

Europe is also impossible to copy.

This "real and real" smuggling method has two prerequisites.

First of all, it is necessary to be able to imitate or obtain goods that are exactly the same as the real ones from various channels.

For example, China's tea, silk, and porcelain are forced to be divided into legal and illegal.

Then you can use the real and real method.

The second point is that fakes must be cheaper than the real ones.

Needless to say, tea escapes British tariffs and is of course cheaper than legal products; and cotton cloth can only be made in China and other countries cannot make it.

China can make inferior Manchester cotton cloth, which is exactly the same as the "real" one, and it is cheap.

The Netherlands cannot do that.

Not to mention that it cannot be made, even if it is made, it will definitely not be cheaper than the real British one.

That would be meaningless.

In short, using pyrite to impersonate brass will certainly be discovered; but using gold to impersonate brass will also be discovered.

So what the Dutch smugglers meant was that you Dashun should not always think that you are using gold to squeeze brass, and you will definitely be invincible. Economic laws cannot beat the administrative orders of various governments now. So you should exchange the gold for brass elsewhere, and I will sell the brass in the UK. Because of the mercantilist tariff protection, brass can be sold at the price of gold in the UK.

The Dutch smuggler leader also said that this business was tailor-made for Dashun.

Wool, Dashun has no shortage; how can Mongolia lack wool?

Hemp, Dashun is even less likely to lack it, the etiquette of wearing hemp and mourning is here.

Dashun was not short of cotton textile technology.

Being able to make inferior products does not mean that they can make good ones.

And being able to make good ones must be able to make inferior ones.

If Dashun wanted to open up the smuggling market in the UK, it should not upgrade its technology to lower the price and increase the quality; instead, it should downgrade its technology from high-quality cloth to inferior cloth.

The smugglers in Dashun were not stupid, but they were constrained by the special national conditions and their thinking was not adapted to the special situation of the European market.

It was just that they thought that even if it was smuggling, the technology had to be upgraded to be better. How could they have thought that smuggling would require downgrading the technology first?

After being told this by the Dutch smugglers, it was like seeing the sun through the clouds, and their eyes suddenly opened.

All the dyes that can be grown in the UK can be grown by Dashun; all the patterns and colors that can be dyed in the UK can definitely be dyed by Dashun.

Now, the daily wage of British female workers is about 6 pence, 180 pence a month, equivalent to two and a half taels of silver a month. In Dashun, it is the monthly salary of soldiers who work hard.

There is also profit in the price.

The Dutch smugglers naturally had the price of Manchester cotton cloth in their hands.

Blue cotton cloth was 14 pence per yard, striped cotton cloth was 15 pence per yard, low-quality printed cotton cloth was 28 pence per yard, and high-quality dyed cotton cloth was 50 pence.

On the Dashun side, the purchase price of things of similar quality to blue cotton cloth was about 17 wen per foot. The cost price was even lower, so they calculated it higher for convenience, and calculated it as 20 wen.

One yard is about three feet.

One tael of silver is equivalent to one thousand coins.

80 pence is one tael of silver, one thousand coins, which is equivalent to 12 coins per penny.

The price of blue cotton cloth in Dashun is 60 coins per yard, 5 pence.

In the UK, it is 14 pence per yard.

After all the calculations, the difference is almost the same as the grain price, three times the grain price and three times the cloth price.

If inferior substitution and manual workshop production are carried out, plus freight, the profit of 150% is still very stable.

Although it is not as high as the 450% of tea, for Dashun’s shareholders, as long as the profit margin exceeds 50%, it is acceptable.

For a period of one and a half to two years, the annual interest rate of 25% is completely acceptable.

If we don’t consider technological progress, Dashun can only make a difference in the “price revolution”.

If, as Hume, Adam Smith and others had imagined, the per capita silver deposits of various countries were roughly balanced after sufficient trade, Dashun would not be able to impact the European market, at least it would not have the confidence to "completely collapse the European textile industry".

Of course, the surge in production efficiency brought about by technological progress is another matter.

It is just that under the current reality of no technological progress, the existence of the price revolution makes it possible for Dashun to completely collapse the European textile industry in terms of technology level and production efficiency.

But the premise is that it can be sold in.

Free trade is obviously unrealistic, that is a fairy tale world.

Since the real world does not exist, there are only two means.

Smuggling.

Or destroy its national violence machine.

Liu Yu is a violent free trade faction.

The Dutch smugglers are micro-manipulation technology flow.

Although the means of the two are different, the purpose is the same, both trying to solve the problem of how to "sell in".

The Dutch smugglers saw one thing very clearly: cotton cloth replaced woolen cloth, which is a historical trend.

Just like gold and silver replaced shells, and bronze replaced stones.

The Dutch smugglers who grasped this point were also very concerned about this matter. They also hoped to find new profit growth points for their smuggling business.

In business, from the perspective of pure commercial profit, the Dutch smugglers attached great importance to the new business of cotton smuggling.

Because the historical trend was that the Dutch traders came to the conclusion after comparing Indian cotton, Songjiang cotton, Jinling cloth and Manchester blended cotton.

At this time, the top-grade imitation camel woolen cloth in the UK was only 10 pence per yard.

Manchester blended cotton was the worst cotton cloth that the Dutch smugglers had ever seen, but it was still the cheapest at 15 pence.

What's even more outrageous is that the UK has a "luxury tax" on its own cotton cloth, and a luxury tax of 3 pence is added per yard.

At the same time, strict control is implemented on Chinese and Indian cotton cloth.

However, in this case, Manchester cotton cloth is still selling well, while high-end imitation camel woolen cloth is nearly 8 pence lower per yard, and sales are still declining year by year.

Woolen is suitable for military uniforms and coats, and it is indeed straight.

But it is really uncomfortable to wear, and dyeing is also a big problem. Besides, coats can be made of woolen, and pants and underwear can also be made of woolen?

Cotton cloth can be dyed with various patterns.

Woolen cloth is either solid color or plaid. Even in later generations, it is rare to see woolen cloth dyed with particularly bright colors.

The British East India Company opened the door to the new world for the British people through the early import of Chinese and Indian cotton cloth, and then never returned.

Even such strict bans, harsh punishment measures, and even the increase of luxury taxes on domestic blended cotton textiles, still cannot stop the popularity of cotton cloth.

Among food, clothing, housing and transportation, clothing ranks first. Knowing shame is the beginning of human beings, and it is also the biggest expense after having a little money.

The rise of British cotton cloth also shows from the side that the British people have some money in their hands. Although not much, they can also give up cheaper woolen cloth and pursue slightly more expensive cotton cloth.

Those who can afford tea can definitely afford cotton cloth - this is the confidence of the Dutch smugglers in the market and their exploration of market laws.

The government can fight against economic laws to some extent, at least temporarily.

But smugglers are people who must master economic laws. They are one of the people who understand economic laws most deeply at this time.

In addition to the expectation of a broad market prospect, there is another point, which is the Dutch smugglers' preparation for a rainy day.

The British tea tax may be abolished. This point has been debated in the UK for many years. The Dutch smugglers are very concerned about the political dynamics in the UK.

Once the tea tax is abolished, it will be a fatal blow to the smugglers.

But cotton cloth is different from tea.

The tea tax can be abolished because there are no tea growers in the UK, and there are no hundreds of thousands of people who rely on the tea industry for their lives. It is not even related to the outflow of silver, because the smugglers have been busy and created an established fact. It is only related to government taxation.

But the cotton cloth tax cannot be abolished, because behind it is not only the cotton textile industry that has just started in Manchester, but also the wool textile industry that is the foundation of the British enclosure economy.

If you dare to cancel it today, you will have Cromwell tomorrow.

An excellent smuggler must know how to predict economic laws and understand the relationship between tariffs and the living conditions of other countries' classes.

Therefore, the best smugglers in the Netherlands have begun to make arrangements and preparations in advance for what to do after "canceling the tea tax".

Only industries that must be protected by high tariffs are important profit growth points for smuggling business.

No tariffs, no smuggling.

The arrival of the cargo ships of the Dashun Western Trading Company in Europe, along with the opium case, made the Dutch smugglers very worried. The abolition of the tea tax was just around the corner. Therefore, they paid special attention to the smuggling of cotton cloth. Before the rain, they would clear the mulberry fields and prepare the windows.

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