Chapter 1041 What Should I Do When I Encounter Raising Food Prices? Raid the house!

For a country that is in the early stage of the development of the industrial revolution, the demand for steel and other infrastructure materials is very huge, and all walks of life have a great demand for steel, but limited by technology, the output of steel is limited.

This is why many countries pay attention to the development of the steel industry in the early stage of industrial development.

Of course, whether it can be developed, it depends on the specific situation of the country, the steel industry belongs to heavy industry, and it is the most important heavy industry in modern industry, it does not mean that it can be developed if you want to.

However, in the Tang Empire, there were no obstacles to the development of the steel industry.

There is a huge demand, and iron ore, coal and other minerals can also be found in the land of China, and there is no problem in transportation in some specific industrial cities.

The population is large and there are plenty of workers of all types.

The basic modern education system has been established, and all kinds of modern technical talents have begun to be trained, and the talent gap can also be solved.

All this represents that the steel industry in China is about to take off!

The Ministry of State-owned Enterprises is increasing investment in the steel industry.

As the state-owned enterprise management department of the Tang Empire, the Ministry of State-owned Enterprises shoulders to lead the development of domestic industry and commerce, and implements the concept of "industrial power" put forward by Li Xuan, the son of heaven, and also shoulders the heavy burden of developing the national defense industry.

Based on this concept, the Ministry of State-owned Enterprises is raising funds for the second round of expansion of Jiangnan Iron and Steel Company!

Because of the limited funds, and the huge investment in steel, they are more inclined to use the limited funds on the blade, Jiangnan Iron and Steel Company has developed smoothly, and sits on the iron ore mine, backed by the Yangtze River, such an inland river transportation mainstream, can be easily transported to the Yangtze River by ship to produce steel products.

And not only along the Yangtze River, but also many tributaries connected with the Yangtze River, such as the Xiangjiang River, the Ganjiang River, the Beijing-Hangzhou Canal, the Huai River, and the Yellow River Basin, can be widely radiated.

Further afield, it can also be transported by sea to coastal areas.

Based on these advantages, the Ministry of State-owned Enterprises has built the Dangtu Industrial Zone into the largest heavy industry base in China, with the steel industry as the core, and it is reasonable to invest in the establishment of the second phase of the production base of Jiangnan Iron and Steel Company.

However, because of the huge market of the steel industry, many private capitals have seen the opportunity of the steel industry, and some powerful businessmen have begun to enter the steel industry.

On the Dangtu side, there are already at least three civil iron and steel enterprises under construction, although the scale is not large, the investment is only tens of thousands of taels of silver, and the output is not even comparable to the leader of Jiangnan Iron and Steel Company.

This proves one point, that is, private capital has begun to get involved in the typical heavy industry of steel.

In many other places, there have been small-scale iron and steel enterprises, small scale may only be a few dozen people, but the large scale is already hundreds of people, and the distribution is very wide, basically now found iron ore, or the transportation is more convenient, and now there are steel-related industries.

In the past, the most private capital entered the shipbuilding industry, with less steel and less machinery, minerals and so on.

But in the machinery industry, there is not much private capital entering at present, not that they don't want to enter, nor that the empire has a policy to prohibit them from entering, but that you have to have technical talents!

And now the technical personnel who know how to mechanic, the price is not ordinarily expensive.

A technician who can repair ordinary equipment has a monthly salary of at least ten taels of silver, which is silver, and you may not be able to get it if you want to ask for it, and all kinds of machinery and equipment are also expensive.

The machinery industry is now earning, and it is very profitable, but the threshold for entry is also high, if you don't invest tens of thousands of taels of silver to enter, you can't even afford to buy equipment, and you can't even afford to hire technicians, so what kind of business do you do.

However, relative to heavy industry, light industry is currently the field where domestic private capital is concentrated, especially the textile industry, which can be said to be a rapid progress, and other industries with small investment and low threshold are also widely integrated into many capitals.

Seeing these reports on the development of industry and commerce, Li Xuan couldn't help but sigh that the Chinese people still dare to fight and fight, and they still have to open up a policy opening, and they don't even need special support, and the businessmen in the private sector will seize the opportunity and then develop.

Today's Tang Dynasty is the most friendly dynasty to merchants in China for thousands of years, and this era is a golden age for anyone who wants to engage in industry and commerce.

The policy allows, and even has tax support, because of the merit evaluation problem, in order to be promoted, although most of the local officials are from traditional Confucianism, but they also try their best to develop industry and commerce and develop people's livelihood.

At the same time, there is a healthy financial environment, and the flow of funds is more convenient.

At the same time, it also has a broad domestic demand and overseas market.

For those merchants, gold is almost everywhere, and all they have to do is to raise a certain amount of money, hang up signs, recruit workers for production, and then they can make a lot of money.

However, Li Xuan is also vigilant behind this seemingly prosperous industry and commerce, because in his opinion, this situation is somewhat similar to the reform and opening up in later generations, and in the process of rapid and barbaric growth, many problems will definitely break out, and if one is not done well, it will cause big problems.

For example, many officials in the Jiangnan area have recently reported that because of the huge demand for silkworm cocoons and the high purchase price, many farmers have begun to plant mulberry trees on the land where they originally planted grain in addition to planting mulberry trees on the original land, although this situation has only begun for a year or two, but many officials are worried that the grain output in Jiangnan will be greatly reduced, from a granary that can provide a large amount of surplus grain for the empire, to a food-scarce area that needs to transfer grain from other places.

This situation made Li Xuan vigilant!

After all, although the development of industry and commerce is important, the issue of food is even more important!

Therefore, at the cabinet meeting not long after, Li Xuan convened a meeting in response to the proposals submitted by some officials on this matter, and asked the cabinet to come up with a suitable solution to stabilize the grain output in the Jiangnan region without harming the development of industry and commerce and the interests of peasant households.

The Ministry of Agriculture, the Ministry of Commerce and other departments of the Cabinet held a number of meetings, and finally finalized the preliminary plan!

First of all, because the current situation of changing grain fields to plant mulberry trees is not serious, and at the same time, the imperial court cannot use various administrative means to forcibly interfere with what farmers plant, because those lands are their private property, and what people love to plant is their freedom.

Moreover, it has only been a few years since the founding of the Tang Dynasty, and it is not possible to adopt some radical behaviors and put yourself on the opposite side of the vast number of peasants.

However, it is also impossible to convert a large number of grain fields to mulberry trees.

Therefore, the initial plan is to start with tax incentives for government land and newly developed wasteland.

Those who rent official land must grow grain, and peasant households are not allowed to grow other cash crops, including cotton and mulberry trees, without permission.

Land acquired by renting and purchasing land is also within this scope, with a restrictive clause that these official fields must be used for growing food.

Originally, the newly reclaimed land could enjoy tax incentives regardless of the type, but now it is stipulated that only newly reclaimed wasteland for grain cultivation can enjoy tax incentives, and if the reclaimed land is planted with mulberry trees or cotton and other cash crops, it will not enjoy tax incentives.

In this way, to a certain extent, it can restrict part of the land from being converted to food crops!

At the same time, on the other hand, many officials in the cabinet believe that it is the nature of farmers to pursue higher profits, and you cannot let them give up their interests and stabilize the grain production in the Jiangnan region for the empire.

The most fundamental solution is to reclaim more land, especially for grain development in the Huguang area!

At the same time, it is necessary to ensure that the economic returns of farmers from growing grain are not much lower than those from planting cash crops such as mulberry, which can also be adjusted by means of commerce and taxation.

For example, appropriately raising taxes on raw silk enterprises will increase their costs, and then in order to pass on the costs, they will inevitably pressure the price of raw materials, so as to curb the rapid rise in the price of silkworm cocoons.

In addition, food prices can be appropriately raised in some areas to ensure that farmers can grow food profitably.

However, there are different opinions in the cabinet on how to raise prices, and some people believe that the local government and yamen can directly come forward to purchase grain, raise and maintain grain prices, and ensure that the peasants are not harmed.

However, some people believe that it should not be the direct interference of the government and the yamen, but should adopt more flexible measures and let the Ministry of Commerce or the Ministry of State-owned Enterprises do this.

Finally, after repeated discussions, it was decided to integrate several grain companies in the Sidao area of Zhili in the Ministry of State-owned Enterprises, and first set up a grain company in Jiangnan, whose core functions are grain reserves, grain price stabilization, and disaster relief.

If the effect is good, it will be promoted to other provinces!

Zhili Grain Company, from its core, can only be seen to know that this is not a profit-oriented company, but a state-owned enterprise that maintains food security.

Of course, in the process of purchasing and selling grain, a certain amount of profit will definitely be generated, and these profits will also be used to purchase and reserve more grain in the future.

The establishment of the Zhili Grain Company has a direct relationship with Li Xuan, because Li Xuan personally instructed the relevant officials of the Ministry of State-owned Enterprises to put forward this plan.

If you do it so directly, the effect is not good, and the impact is not good, and it is easy to cause a rebound!

How good it is to directly set up a grain company, you can control the price of grain as much as you want, and you can easily crack down on those unscrupulous grain merchants who like to hoard food, take the opportunity to raise prices, and make a fortune.

Although in recent years, the Tang Dynasty has implemented grain restriction policies in many disaster areas, and dealt with some grain merchants who took the opportunity to hoard and raise prices, but there is no clear reason for this treatment, and most of the treatment methods are indirect treatment in other names.

Because in the Tang Dynasty, there were no crimes such as speculation and price gouging, and the grain of other grain merchants was bought with money, and people loved to hoard it and not sell it, or sell it at a very high price, strictly speaking, it was also their freedom.

However, this kind of behavior is intolerable to the authorities, and in the past, one case was found and one case was dealt with, but the means of dealing with it were through other methods, the most commonly used method was 'crime of endangering national security', and basically only dealt with the first offender, and some who followed the trend, and basically did not deal with it if the increase was not so large.

But to be honest, we can't continue to do this forever, and it is not possible to directly introduce relevant restrictive laws, so we simply use other ways to deal with it.

Directly set up a relevant grain company, and then according to each different place, issue a guiding grain price range, beyond this range, directly impose an administrative fine, and punish him with bankruptcy.

The purchase and sale prices of grain companies also fluctuate within this range.

When the grain output is large, we should stabilize the price and prevent the local grain price from falling, and when the grain output is low, we should supply a large amount of grain to stabilize the local grain price and prevent the grain price from skyrocketing.

This is the main core task of the current Zhili Grain Company.

In the past, although the Tang Dynasty also did this, it was generally done by local yamen, and it was done through administrative means, which was not justified and not professional enough.

Nowadays, with this kind of professional food company, it will be much easier and more convenient.

As for whether the Zhili Grain Company can complete this task, what if it encounters bold grain merchants who are estimated to raise grain prices and fight with the grain company?

What else can be done, if these grain merchants have ordinary means, just normal business methods, and have not raised grain prices to an outrageous degree, then the grain companies will directly run them out and go bankrupt with their incomparable financial strength.

Although the Zhili Grain Company, which is backed by the Ministry of State-owned Enterprises, has no money on its books, it can withdraw a large amount of grain and funds in minutes, and can directly run out all the grain merchants in the world and go bankrupt.

What, the strength of the grain merchants is too awesome, and the grain company of the Ministry of State-owned Enterprises can't do anything about them, so what should I do? Do you want to draw tens of millions of taels of silver from the treasury to fight a vigorous grain war!

Hit a fart, go straight to the house!

The tax inspection team is not a dry meal!

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