"The essence of modern colonial rule is, in fact, the domination of industrial capital, and the domination of capital for its own interests. The reason why industrial capital cares about the colony is that it should regard it as a market for commodities, as a supplier of raw materials and grain, and as an investment market for excess capital. In order for the survival of this colony to be valuable to itself, the best way is to open its economic system to the world of commodity economy. As a result of the invasion of the commodity economy, the self-sufficient economic system collapsed, the economic forces that had been constrained in the past were liberated, and the local people began to transform into profitable commodity producers. In this way, local enterprises for the purpose of market production will rise rapidly, and at the same time, they will rely on foreign capital for modern resource development, so the economy of the colony has also developed rapidly in a short time. "In the port of Araukan, Qiang Quansheng, director of the State Administration of Precious Metals, is explaining economic knowledge to the cadet cadres from the Corps Fort.

He had come to the port of Araucan solely for the sake of the Southern Railc's forthcoming trade program with the Spaniards. Truth be told, this plan has attracted a lot of attention on the east coast, and the executive committee has also inquired about it, so Qiang Quansheng, as the director of the State Administration of Precious Metals, went south to Xingnan Port on behalf of the central government, and then took a horse-drawn carriage through the newly opened Xingnan Highway, all the way to Araukan Port.

After having an in-depth conversation with Mo Ming and others, Qiang Quansheng has basically understood the essence of this trade, and at the same time estimated the profits in it, so he is now happy to see this plan come to fruition. In fact, it was not possible to agree, and in late October, the Southern Railway Company had already negotiated the details with the Spaniards, and then Mo Ming personally arrived in Valparaiso by boat. A secret trade treaty was formalized with the Spaniards. Other words. Regardless of whether the central government agrees or not. The Southern Rail Company had to do business with the Spaniards in Peru because they were going crazy for money. And this also made Qiang Quansheng secretly slandered, and it was really the style of the army's gang of horse dung, who did things simply and rudely, regardless of it.

However, in any case, in this matter, the interests of the Southern Railway Company and domestic industry and commerce are the same. Therefore, the strong total victory is at the end of the investigation. When he was about to return to his homeland, he was also invited by the Southern Railway Company to give lectures to the management cadres of the company's economic department (only the middle and senior cadres who have been inspected and trusted). The content of the lesson is closely related to the recent hot topic, and it is about the semi-open smuggling trade between the Southern Railway Company and the Spaniards.

"But industrial capital is not here to do good deeds for the colonies......" Qiang Quansheng continued to wave his arms and said, "The concern of industrial capital is nothing more than to inhibit the development of colonial capitalism. For example, the Spanish Viceroyalty of Peru, according to the trade agreement signed by the two sides, and the difference in the level of productivity between the two sides, can basically consider the vast area of Peru as our economic colony. What we need to do now is to continue to expand the volume of bilateral trade. The development of Spanish capitalism in Peru was suppressed as much as possible, so that the capital in the hands of the locals could not be converted into industrial capital - and of course the Kingdom of Spain did not allow Peru to deposit industrial capital. This is in our favour - to block the way for the Spaniards to develop towards capitalism, to make them only able to produce the specific goods that our country needs, so that they can form an economic system that is completely subordinate to our country. ”

"Wouldn't it be better to let the Spaniards in Peru produce only some agricultural and mineral products?" Some cadres raised their hands to ask questions.

"Yes." "Ideally, Peru will only export to us commodities such as sugar, leather, animal fat, guano, wool, tropical high-quality timber, cinchona bark, lead, tin and sulfur, which account for more than 90% of its economic content, and then be completely integrated into our economic system." In this system, our domestic manufacturers are in the most upstream; The Spanish officials of the Southern Railctrade Company and the Viceroyalty of Peru were middlemen, in the middle; The most downstream and exploited are naturally Peruvian farmers, mine owners and ordinary farmers. They are at the bottom of the chain, they must be willing to risk price changes, let the middlemen exploit them, and the poorer they are, the more they have to produce more. As a result, more agricultural and mineral products are exported, and the import trade is expanded, so that the middlemen and upstream manufacturers involved can suck in excess profits, while the local people toil all day long, but the income is limited, and even the poverty is increasing. This process repeats itself, and after a long time, it will be difficult for the Viceroyalty of Peru to turn around. ”

"In our country, the widespread use of steam engines, the large-scale construction of railways, roads, canals, and wharves, and the prosperity of basic industries such as iron and steel, chemicals, and coal have all effectively increased the level of productivity. With the improvement of production efficiency, people's living standards have also been improved, and the improvement of living standards has in turn promoted the improvement of production efficiency. In the case of the Spaniards, I can boldly assert that the development of their economy does not depend on the increase in productivity, but in fact depends more on the increase in the intensity of labor and the extension of working hours. And this often means simply increasing the product, but the level of productivity is not effectively increased, and thus the improvement of the standard of living of the Spaniards is also unthinkable. Because the way for the transformation of commercial capital and agricultural assets into industrial capital, which has been accumulated with great difficulty, has been blocked by us, which has effectively prevented the overall increase in the level of productivity of Peruvian society, which is one of our most important objectives. Qiang Quansheng finally concluded.

His remarks clearly and thoroughly explained the nature of capitalism - whether state capitalism or liberal capitalism - society, as well as the oppression and exploitation of backward countries. Many of the senior cadres of the Southern Railway Company present had a deafening feeling when they heard it, and many things that they had vaguely realized in the past but had not yet thought through were suddenly enlightened at this moment. It turns out that robbing and plundering other people's wealth can also be done in this way.

While outright looting may be more efficient in the short term, in terms of numbers, it is clearly more cost-effective to colonize the economy in the long run. Of course, for a country like the East Coast, which is poor and white, and urgently needs a lot of start-up capital for development, it seems more cost-effective to rob directly. At the very least, more than half of the livestock needed to promote the three-crop rotation system in the East Coast has been solved, and agricultural production has increased considerably, which is undoubtedly a huge asset.

At the end of November, five fishing boats, including the "Nantie Yu 001" under the Southern Railway Company, arrived at the agreed trading place on the bank of the Maolin River with a large number of commodities. This is an area that has only been developed by the Spaniards in recent years, with dense forests, fertile land, and trout in rivers that almost overflow, and a wild and rich virgin land. After some of the Spaniards had destroyed some of their villages during the war, they were unable to restore them and abandoned them altogether, returning them to the wilderness.

However, after a secret smuggling agreement was reached with the East Bankers, the two sides invariably chose the place where the trade was placed, and in a short time it was possible to gather a large number of people again, mainly commercial compradors and their servants. They cut down wood, built warehouses, raised pack animals, and even some shrewd Italians opened hotels and restaurants here to do their business.

Immediately upon the arrival of the four East Coast ships, a number of Indian servants came forward to unload their cargo: aspirin, which was popular in the humid and sweltering heat of Peru, 108 medicinal liquor for malaria prevention (in fact, more people thought of it as a good alcoholic beverage), steel bars, various textiles, dyed leather goods, building materials, refined flour, soybean oil, and other goods. These were all in high demand in the Viceroyalty of Peru, so they were bought out by these Spanish compradors in just half a day. At this time, no one mentioned the war between the two countries that had just ended, which was not to make themselves happy, and everyone's attention was more focused on these goods that could bring cute silver coins.

As we all know, the Spanish treasure fleet only sends a fraction of the supplies to the New World every year, so it is a boon for local consumers that cheap and high-quality East Coast industrial goods enter the Peruvian and even New Spain markets. After all, at this time, they had not yet realized the disadvantages of cheap foreign industrial goods for the development of their industry, and they only knew that they no longer had to spend high prices on daily necessities, which were always in short supply.

Although the people on the east coast are economically colonizing the Spaniards in Peru, the amazing thing is that the Peruvians think that they have made money, not to mention the comprador businessmen, they must have made a lot of money, and the manufacturers on the east coast of course also made money, so who has suffered in the process? The Genoese who had trade concessions may have lost some, but not much, for their supplies were so limited; In this way, the largest losses should be those European smugglers, and to be more specific, the Dutch, British, and French, these three are the main losers, and there are also smuggling ships from Sweden, Denmark, Portugal and other countries, but the number is very small.

It should not be a big problem for the people on the east coast who are engaged in large-scale industrial production to drive these European smugglers from afar into the South American market. Leaving aside the issue of production costs on both sides, the people on the east coast have a huge advantage when it comes to logistics and transportation -- smuggling ships usually dock in the Caribbean Sea and have to be transshipped by land, which is very expensive, while people on the east coast directly transport goods to Hong Kong.

On November 1, several ships of goods transported by the Southern Railway Company were snapped up, and according to rough accounting, this batch of goods brought more than 180,000 yuan of net profit to the Southern Railway Company. As for the profits obtained by domestic production enterprises, they are probably not far from this number. There is no doubt that the gradual boom in the South American smuggling market has a fairly positive impact on stimulating the development of manufacturing on the East Coast and moving away from the traditional European market. (To be continued......)