Volume 3: Confrontation! The Run of Civilization Chapter 474 Apocalypse Mining Reform
The Ming Dynasty had a tax called "metallurgy tax". From this tax, we can see that the Ming Dynasty did not have a one-size-fits-all approach to mining, requiring it to be run by the government.
In fact, except for gold and silver mines, which were strictly prohibited from private mining (there were also many cases of illegal mining and collusion between officials and businessmen), and before Zhu Youdong, salt mines could only be officially operated in name (private salt was extremely rampant), private funds were allowed to enter iron mines and coal mines. By the Wanli period, the Mentougou coal mine in Beijing was already entirely privately owned, and its production was more than enough to supply all households in the Beijing-Tianjin area with coal for daily use. The famous Pu Wanye Steel Works in Nanzhili even defeated several state-owned steel mills in the Ming Dynasty.
However, after allowing private capital to enter coal and iron mines, there are also big problems. The first is that the tax rate is too low. For example, when Zhu Yuanzhang founded the country, he said that ordinary people need coal to make fire and cook every day, so he set the tax rate at 30% tax. Even for iron mines, Zhu Yuanzhang said that farmers need farm tools, so he set a tax rate of 15% tax - this is also a tax rate based on pig iron production. In the 21st century, the resource tax for iron ore is about 15% tax. Calculated in this way, if the Ming Dynasty collected taxes based on the output of iron ore, the tax rate would probably be 50% tax or even lower!
In the 14th century, when the country had far fewer revenue items than in the 21st century, it was still possible to set such a low mining tax. It can only be said that while Zhu Yuanzhang cared about the people, he really didn't understand economics. Not to mention the 21st century, in the 11th century, the iron mines of the Northern Song Dynasty also allowed private capital to enter. How was the tax levied? The tax was levied according to the output of pig iron, with a five-tax one.
Such a low tax rate meant that the country gained very little benefit from the mining industry and indirectly led to the closure of state-owned iron mills - the profits of private steel mills were too lucrative, and even the craftsmen and managers of the state-owned factories were poached.
However, after the state-owned factories closed down or the quality of their products declined due to the loss of talent, the products of private factories could not replace the previous state-owned products and provide them to the military - the Ming Dynasty had a huge demand for steel, and the money earned from the private demand alone was already full, so why invest huge amounts of money in military products?
Therefore, in the early years of the Ming Dynasty, when the government was strict and the household registration was complete, the craftsmen in the state-owned factories were still working honestly for the state, and the quality of the Ming army's firearms was quite good at that time. In the Wanli and Tianqi years of the historical plane, the state-owned factories either closed down or the quality of their products seriously declined, and they could no longer produce qualified military products.
The disorderly involvement of private capital in the mining industry not only made the state earn very little profit, but also accelerated the closure of state-owned factories or the decline of quality. In addition, the Ming Dynasty adopted a "tacit approval" system for private capital to enter the mining industry. In other words, the state did not clarify the property rights, and the law did not protect these private mine owners. This naturally led to collusion between officials and businessmen and the breeding of evil forces...
Zhu Youdong's reform of the salt administration was due to the extreme lack of money and the fact that the salt administration, as the most strictly controlled department of the state, had to be changed. After the privatization of the salt fields, the state salt tax increased by dozens of times, the quality of salt improved, the price of salt dropped, and private salt was basically eliminated.
Now, it's time for a radical reform of the mining industry.
How to change it? Just as Yang Yanming said, all existing mines, except for a few core large mines that are kept in the hands of the state, will be auctioned off - clarifying property rights is the first step to eliminate collusion between officials and businessmen and eliminate evil forces.
As for those mine owners who have been operating some mines for many years? Can you show me the ownership certificate? If not, it is not yours! Speaking of which, how many officials have you dragged into this business over the years? How many hooligans have you brought in to oppress the local people in order to keep the mines? You have made so much money under such a low tax rate over the years, can't you afford to participate in the auction?
What? You said you just won't participate in the auction. If anyone buys your mine, you will make the buyer pay the price. Haha, those who can win the mine through the auction are probably not easy to deal with. Not to mention, after the property rights are clarified, the court will clearly support and protect the interests of the buyer.
In this era, although it was slightly strengthened by the time travelers, Zhu Youdong did not really get involved in the coal and iron industries in the early days. Therefore, the pig iron production of Daming at that time was about 230,000 tons. As for coal? Daming had already mastered the underground coal mining technology at this time, and the output in the second year of Tianqi was 9 million tons.
Because of the time traveler, this world has entered the steam age, at least in Spain, the Ottoman Empire and the Ming Dynasty. The demand for steel has risen sharply. Coal is the main raw material for smelting steel now and for a long time. Therefore, coal and steel reforms must be carried out at the same time. Most of the existing coal and iron mines in the Ming Dynasty were also auctioned at the same time in the third year of Tianqi.
Of course, Zhu Youdong knew that China was rich in coal and iron reserves. The existing production capacity still had a lot of room for improvement. Therefore, he also sold the right to explore for resources. Of course, he would not auction off several large coal and iron producing areas in the future. He planned to send people to explore for this himself.
After clarifying the property rights, he will reform the tax rate of the mining industry: thanks to the business tax reform that started at the end of the previous year, the State Administration for Industry and Commerce not only collected business taxes, but also effectively protected the legitimate rights and interests of tax payers and dealt with many officials. Therefore, this time, merchants will have less resistance to paying mining taxes in the future.
In comparison, the tax rate for iron ore is easier to calculate: I will use pig iron as the tax base. But coal mines are more troublesome: different coal mines produce very different coal after washing. Therefore, after repeated consultations with ministers, the court decided: the tax rate for iron ore should be unified as pig iron, with a tax rate of 50% for 100%. Coal mines are divided into five grades according to the quality of coal. The best coal has the highest tax rate, 10% for 100%, and the worst is 50% for 100%.
…
"My dear uncles and brothers, the relevant laws of the court regarding the auction of coal mines basically stipulate this. Because my Yang family has invested a lot in salt mines, the funds that can be withdrawn are limited. Fortunately, my third uncle reminded me. Now I have estimated that even if I ask for a bank loan, I can probably only get the exploration rights of a large coal mine and a county. Therefore, I really need the full support of my uncles and brothers!"
After Yang Yanming finished speaking, he bowed in a circle in the center of the ancestral hall. At this moment, the relatives in the ancestral hall stopped making noise, but it was obvious that they still had doubts.
"Well, Yanming, after listening to what you and Uncle San said just now, we are not really stubborn. So, I have no objection to the family's focus shifting from purchasing and sales to industry. But, can investing in coal mines really make money?"
"Don't worry, Uncle Six." Yang Yanming smiled slightly. "If it's running a silk mill, a cotton mill, or something like that, I've never managed the specific production, so I really don't know. But coal mines? There are coal mines everywhere in Shanxi. Although I'm not very proficient in coal mine production, at least I know the general idea, right? Wouldn't it be nice to hire one or two people who are good at coal mine management? As for such talents, with the ability of my Yang family in Shanxi, I think it shouldn't be difficult to find them, right?"
"Well... I think it shouldn't be hard to find someone who can work as long as the money is enough. But, now that the coal is produced, how can we sell it?"
"Uncle Sixth, don't worry about this. The country has been working hard to build roads these years. Cement plants that burn limestone need coal, and steelmaking needs coal. It is said that the court launched a new ironclad ship two months ago. There are no sails on the ship, and it is all powered by steam. And the steam that boils water is still coal. As the Chang'an Daily said a few days ago, the country has entered the steam age. What is the most basic source of power? Coal! Therefore, in the next few decades, there will be no worries about the sale of coal. My nephew estimates that if we can really take over a coal mine with an annual output of one million catties, the annual net profit will be no less than 500,000!"
"Hiss~ Nephew Yanming, if this is true, if the coal mine is profitable, then add the profit from the salt mine, after a year, our family..."
"Yes, Uncle Six, the annual profit is no less than 700,000. Moreover, although we have reduced the number of shops and caravans, we will not give up the most valuable shops and routes. Therefore, the annual profit is about 800,000. It is much more than the 400,000 profits that the whole family is sharing now."
As a result, the atmosphere in the entire ancestral hall became lively.
"Let's do it! Isn't it just pledging the land? We are not moving right away. This risk is much safer than the time when Duke Xiangyi moved among Yan Song, Xu Jie, Gao Gong, Zhang Juzheng and others!"
Later, the group of people who reached a consensus set up an incense table in the ancestral hall and prayed to Yang Bo's tablet: "I only hope that the spirit of Lord Xiang Yi in heaven will bless our Yang family to have a smooth transformation and prosper again!"
