Chapter Six: The Opportunity of Salt Monopoly
For two years, Liu Bao'er had been studying in her grandmother's room every afternoon. She had a thorough understanding of the Dou family's money exchange, the Tang Dynasty's monetary system, and even the circulation of goods from various regions. She was no longer just imitating and learning; her occasional suggestions for improving accounting methods or pointing out the risks of a loan often made her grandmother's fingers, which were twirling her prayer beads, pause slightly, and her gaze towards her became increasingly deep and unfathomable.
In the early summer of that year, some unsettling news came from the Guanzhong region—the winter snowfall was insufficient last year, and this spring was also marked by drought. Although it did not result in a large-scale disaster, it had already cast a shadow over the sensitive market.
That day, Liu Bao'er went to the main courtyard as usual. As she passed through the corridor, she heard two servants who were in charge of purchasing in the outer courtyard leaning against a pillar and talking in hushed tones, their voices carrying the keenness unique to the common people.
"Have you heard? The Salt and Iron Commissioner's office is probably up to something!"
"Exactly! The situation is very tense! They say that from now on, even transporting government-issued salt will require that damn 'salt permit'!"
"Salt permit? What's that?"
"It's a certificate stamped with the official seal! You need it to pick up salt at designated salt fields! I heard it's to crack down on those smugglers..."
The words "salt permit" struck Liu Bao'er like a bolt of lightning, suddenly shattering some long-standing thoughts in her mind!
Her steps faltered abruptly, her heart pounding uncontrollably, the rush of blood echoing in her ears. Fragments of her past life surged, collided, and reassembled at an unprecedented speed—futures, standardized contracts, forward trading, leverage… wasn't this "salt certificate" just the most primitive, government-backed futures contract?! A thin piece of paper representing the right to collect a fixed quantity of government-issued salt at a designated time and place in the future!
She immediately changed direction, like the most perceptive cheetah smelling its prey, silently quickening her pace and blending into the bustling crowd of Yongchongfang. She had to confirm it herself.
The notice board at the Salt and Iron Commissioner's office was already packed with people who had caught wind of the news. Taking advantage of her still-developing body, Liu Bao'er nimbly squeezed through the crowd to the front. The notice, written in black and white, confirmed the servants' rumors. In order to thoroughly regulate the salt industry and curb smuggling, the imperial court decided to implement a salt permit system, requiring merchants to purchase salt with a permit.
The surrounding chatter grew even louder and louder, flooding her ears:
Where do I get these permits?
"We have to go to the Salt and Iron Commissioner's office and queue up to apply! I heard the quantity is limited, so it's first come, first served!"
"The price of salt in Chang'an is already volatile; with this permit, isn't it a sure thing to make a profit?"
"Make money? Dream on! I heard that people on the black market have already started buying these permits, and the price is much higher than the official price!"
Liu Bao'er pricked up her ears, capturing every piece of useful information. Her brain worked at an unprecedented speed, rapidly connecting these fragments with the financial models in her mind.
Officially limited release, black market prices have already soared... Information asymmetry and a visibly tight supply-demand balance create a huge, risk-free arbitrage opportunity in the market! No, it's even an excellent opportunity to leverage excess returns!
She could almost see a golden path to wealth unfolding before her eyes behind that tiny salt certificate. With a small amount of capital, she could leverage vast official resources, buying up certificates at low prices and selling them at high prices... or perhaps, she could even borrow the concept of "asset securitization" from her previous life, breaking down the complete salt certificate to satisfy the profit-seeking needs of more small-scale capital...
A bold, meticulous, and highly feasible plan quickly took shape in her mind. The adventurous spirit of a trader from her past life was surging with excitement within her.
Without further hesitation, she turned and rushed back to the Dou family home, heading straight for her grandmother's room. The opportunity was fleeting, and she had to seize it.
It wasn't time for today's "homework" yet, and the old grandmother was resting with her eyes closed. Liu Bao'er took a deep breath, walked to the bedside, and stood respectfully.
"Grandmother," she looked up, her eyes shining with an astonishing light, the kind of light a hunter has when he locks onto his target, "Bao'er would like to borrow ten salt permits from you."
The old grandmother slowly opened her eyes, her face expressionless: "Oh? What do you need the salt permit for?" Her gaze was like a probe, trying to penetrate Liu Bao'er's appearance.
"Granddaughter-in-law... wants to accumulate some good karma for her deceased husband." Liu Bao'er had already prepared her words, and her face revealed the "piety" of a young girl at the right time. "I heard that with the salt permits, the circulation of official salt is smoother, and it is not difficult for the people to get salt. When Xiao Bao was alive... he was the kindest-hearted person." As she spoke, she softened her voice, trying her best to play the role of a kind-hearted widow.
The old woman's gaze lingered on her face for a moment, and her lips twitched almost imperceptibly, whether it was sarcasm or something else, it was hard to tell.
"Accumulating good karma?" she repeated slowly, her tone flat. "Ten salt permits are worth a fortune. What will you offer as collateral?"
Liu Bao'er steeled her resolve and delivered the prepared explanation: "Granddaughter-in-law... has nothing of value. Only this memorial tablet for my deceased husband, made of fine nanmu wood... is temporarily held by Grandmother. Within half a month, Bao'er will return the ten salt permits in their original condition, plus a 30% interest!"
A deathly silence fell over the study. Even the old servant standing to the side was startled and blinked.
Mortgaging her deceased husband's memorial tablet? This is utterly absurd and unheard of!
The old grandmother stared at the dark memorial tablet, then at the little girl before her, whose eyes were stubborn yet whose actions were subtly methodical. She remained silent for a long, long time. She was weighing her options. Was the girl's apparent madness merely a pipe dream, or did she truly see an opportunity she hadn't yet recognized? She was weighing the risks of this investment against the allure of the "30% profit."
Silence filled the study. The wisps of sandalwood incense curled and swirled, as if measuring the weight of this contest.
Finally, the old grandmother stretched out her withered hand, took out a private seal from the small box beside her, and pressed it hard onto a blank document.
"Take it." Her voice remained unreadable. "Half a month. Ten tickets, 30% profit. The memorial tablet, I'll keep it for you for now."
Liu Bao'er suppressed the overwhelming joy that threatened to burst from her chest, accepted the light yet incredibly heavy receipt with both hands, and bowed deeply: "Thank you, Grandmother!"
She left the room, her steps steady, her back straight. Stepping into the courtyard, the early summer sun beat down on her intensely.
She turned and glanced at her grandmother's tightly closed door. The old woman absolutely didn't believe in any of that nonsense about "accumulating good karma," but she still lent the money. Why?
Perhaps, in her eyes, this is also a venture capital investment. Investing in me, a variable that repeatedly brings "unexpected" results, to see just how much of a ripple this pebble can create in this deep pool.
Liu Bao'er gripped the receipt tightly, her eyes sharp as a young animal that had just completed its first hunt.
In any case, the first step in the capital game has already been sold.
I've arrived at the salt market of the Tang Dynasty.
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