Chapter Thirty-Three: Reducing Inventory and Boosting Domestic Demand

The previous night marked the third Liaozhai meeting.

Participants: Xu Wenshan, Lu Ze, Ah Fa, and Xiao Cui.

“The agenda for this meeting has three points,” Xu Wenshan began. “First, to establish the Lu-Crane Archery Club. Second, to found the Lu-Crane Grain and Oil Firm. Third, to open the Mountain Trade Route.”

Lu Ze raised her hand. Xu Wenshan nodded to her, saying, “If you have a question, please speak.”

“Xu Wenshan, I wasn’t present at the last meeting. What exactly are these three things?”

Xu Wenshan smiled. “It’s quite simple. First, the Lu-Crane Archery Club is a hunting mutual-aid organization. We offer archery guidance to hunters, and in return they give us game—”

Lu Ze interrupted, “Wait, why would they give us their game?”

“We buy it,” Xu Wenshan replied. “We purchase their game at market price, then use it to produce leather, meat, and oil.”

Ah Fa raised his hand. “Young master, perhaps you don’t know, but common folk rarely accept money. They trust millet more.”

“That’s precisely why I want to establish the Lu-Crane Grain and Oil Firm,” Xu Wenshan explained. “Our firm will specialize in selling millet, oil, meat, and similar goods, but only for cash. The reason hunters refuse money is because farmers are unwilling to exchange their stored grain for cash. Now, with a reliable place to trade money for grain, they’ll start accepting money.”

Ah Fa pondered. Hunters sell their game to our household, we process it into meat and oil, then sell it back to them… Something feels off.

Suddenly, Ah Fa spoke up, “But they already have places to trade meat for millet. Why would they trade with us?”

Xu Wenshan replied, “I know. Most of them exchange meat for millet with the Guo family, but the Guo family exploits them heavily. Our prices are more favorable, and we spare them the trouble of skinning and boning the game themselves.”

Ah Fa nodded, then asked, “Who’s going to skin and bone the game for them?”

“Old Zhang,” Xu Wenshan said. “He’s the best butcher we have, and he can handle it easily.”

“But why would Old Zhang do it for us?”

“We’ll pay him a wage,” Xu Wenshan answered. “Every animal he butchers, he gets a cut. There’s no shortage of work here; he’ll make a good living in a month. Why wouldn’t he agree?”

Ah Fa lowered his head, unable to think of any further objections.

Xiao Cui suddenly raised her hand. “I have another question.”

“Speak.”

“We pay wages here, buy game there—where does our money come from?”

“That’s exactly why I want to open the Mountain Trade Route,” Xu Wenshan replied.

“But, but…” Xiao Cui felt something was amiss, yet couldn’t articulate it.

Ah Fa voiced what Xiao Cui was thinking: “What’s the point of all this? Hunters used to trade meat with the Guo family, Old Zhang kept to himself, everyone lived just fine. Why must you pay them? Isn’t this… isn’t this… wasteful?”

Ah Fa had intended to say “extravagant,” but as a servant, he dared not describe his master so.

Xu Wenshan said, “It’s precisely because the old way is too backward that I must intervene and establish a new order.”

“A new order?”

“Yes, a new order, so villagers can adapt to a new normal,” Xu Wenshan declared. “The survival mode in Lu-Crane Ravine has always been small-scale, natural economy. Hunters have a backlog of pelts at home, farmers hoard their money and refuse to spend it. What I’m doing is stimulating domestic demand, reducing surplus, and clearing inventory… In short, our goal is to ensure rational distribution of social resources.”

His words left Lu Ze and the others bewildered—in truth, they understood none of it.

To put it plainly, Xu Wenshan’s plan was to use hunters as the breakthrough point, modernizing the primary industry structure of Lu-Crane Ravine.

Many phenomena in traditional society are incomprehensible to modern people. For instance, Old Zhang the butcher holds a high status in Lu-Crane Ravine. When Xu Wenshan’s father sought a wife for him, Old Zhang was the first to come to mind.

In traditional society, butchers wielded great influence—like Zhang Fei or the infamous Zhen Guanxi, indisputable local tyrants.

Nowadays, if your match is a butcher, most would scoff.

But it’s easier to accept when you realize: ancient butchers were equivalent to slaughterhouse owners, skilled technicians, and meat distributors all in one. Today’s butchers are just the last link in the chain.

Simply put, there was no division of labor in the past. What Xu Wenshan is doing now is making meat production in Lu-Crane Ravine more specialized.

Hunters hunt, butchers butcher. As for sales channels, I’ll handle them all!

In Lu-Crane Ravine, hunters and Old Zhang would probably think Xu Wenshan is a naïve fool, the sort to laugh about in their dreams. But today, everyone knows that running the sales channel makes you the real boss.

…

“Free use of thumb rings, discounted range fees, and guidance from master archers—these privileges are just bonuses,” said Xu Wenshan. “Join the club, and you’ll enjoy a five percent premium when selling your game. That is, if your game is worth 100 coins, you’ll get an extra 5 coins.”

The hunters were stunned by Xu Wenshan’s offer; what he promised was beyond their wildest dreams. They pondered it deeply, when suddenly, Lei Tiger spoke up.

“What if you deliberately lower the price?”

Xu Wenshan replied, “Then you can trade with the Guo family.”

Lei Tiger was speechless.

Xu Wenshan continued, “I’m doing business with you. Prices will fluctuate, but mine won’t be too low—certainly not lower than Guo’s.”

Seeing the hunters still hesitant, Xu Wenshan added, “Think carefully. When Lu-Crane Grain and Oil Firm opens, I guarantee millet prices won’t exceed the market rate. Consider this: the Guo family only trades a fixed amount of meat for millet, and you’ve often been turned away. But with me, I’ll buy whatever you have, no need to skin or cut it yourself—just bring it over and get paid on the spot. Take your money and buy millet. Isn’t life wonderful?”

Hearing this, the hunters were all tempted.

“I want to join.”

“So do I!”

“Count me in!”

Wu Yi glanced at Lei Tiger, the two nodded, and both said, “We’re in too.”

A hint of a smile appeared on Xu Wenshan’s lips as he continued, “Membership fee is three and a half pounds of pelts per person. If you want archery instruction, the master’s gift is at least ten pounds. If you have surplus pelts at home, bring them all—I’ll buy as many as you have, at two coins per pound.”

The hunters were overjoyed. Who doesn’t have twenty or thirty pounds of pelts at home? That’s fifty or sixty coins, enough to eat for a month!

“I’ll fetch them right away!”

“Master Xu is truly a great benefactor!”

…

“A benefactor?” On the way home, Wu Yi frowned, deep in thought.

“Is he truly a benefactor, or just another landlord’s son, ignorant and manipulative?”