Chapter 999: Tools for Mastering the World (First Update, Please Subscribe)
In a foreign country thousands of miles away, it is definitely a very happy thing to meet a fellow villager. Even if he is just a half-fellow villager, it can be regarded as an acquaintance.
What’s even more rare is that they are on the same journey.
So after all the way, Qiao Zhiyong became familiar with Li Youan, and after learning that Li Youan worked in a bank, he talked to him about the bank with great interest. During the conversation, Qiao Zhiyong told him the reason why he came to Daming.
"…So, in the past two years, I have been thinking about changing Dadetong into a money shop. After all, compared to a tea shop, a money shop is a more sustainable business."
Li Youan flicked the ash off his cigarette seemingly nonchalantly, took another puff of his cigarette and said.
"So, Mr. Qiao is determined to open a bank?"
“That’s about right!”
Run a money house!
That has always been Qiao Zhiyong's wish. There are so many banks and money houses in Shanxi, but none of them makes money like running water. So the idea of opening a money house has been buried in his mind for more than ten years. This time he came to Daming, he also wanted to do some investigation and then return to Shanxi to open a money house.
"Money house."
After a pause, Li Youan took another puff of cigarette, thought for a while and said:
"I don't see any future for this bank!"
"Mr. Li, you don't know that China is different from the Ming Dynasty. The silver in China is not only of varying purity, but even the weight of each ounce is slightly different. If a bank only relies on exchanging silver, its profits will be immeasurable."
In response to Qiao Zhiyong's explanation, Li Youan simply nodded without denying it, and then said.
"I know this. China's currency system is chaotic. There are more than a dozen types of silver, such as Caoping, Guanping, and Fukuping, with a difference of more than 5%. As for the fineness of silver, it ranges from 90% to 98%, and the fineness is chaotic and disorderly. Therefore, domestic business involves the exchange of various silver taels. Money houses make money from this. Someone said that if you bring ten taels of silver and go in and out of the money house in Xuzhou several times, there will be only one tael left. The money houses are making huge profits. But because of this, Mr. Qiao, how long do you think the court will tolerate such a chaotic currency system?"
Li Youan's answer stunned Qiao Zhiyong, and he said.
"Hasn't this been the rule for thousands of years? Silver taels, silver taels, isn't it just silver taels?"
"Rules that are outdated must be changed. At present, the new dynasty of Shenzhou has just been established, and there will definitely be a major new policy. Reforming the currency system is inevitable. After all, the so-called national politics is nothing more than finance. Reforming the currency system is not only conducive to the development of industry, but also to trade. The most important thing is that the court can also profit from it. Therefore, it is urgent for Shenzhou to implement the "abolition of the two yuan and the reform of the yuan". At this time, Mr. Qiao's desire to open a money shop is definitely inappropriate."
As a bank manager, Li Youan knew very well that China's "abolition of the two-yuan system and change to the yuan system" was imminent. It was not a matter of whether they wanted to change it or not, but something they had to change.
"'Abolish the two-year system and change the era name'? How can the imperial court just do something as big as this?"
Qiao Zhiyong couldn't help but feel a little suspicious.
"Some things must be changed, Mr. Qiao. The world is in this trend. Those who follow it will survive, and those who go against it will perish. If China wants to become rich and strong, it must rectify its finances and establish a modern financial industry!"
Modern finance industry!
Li Youan's words stunned Qiao Zhiyong. He was stunned for a while and asked.
"What is modern finance? Is it banks?"
In response to Qiao Zhiyong's question, Li Youan smiled.
"Haha, a bank... is just one of them. So, if Mr. Qiao is interested, when you get to Nanhua, you might as well visit Eighth Street. That is the financial center of the empire!"
The financial center of the empire?
It is not in the empire’s Zhongdu, nor in the former capital Yingtian, but in Nanhua.
In fact, when the Ming Dynasty made Yingtian its capital, it had considered whether to build Yingtian into a "center", which of course also included the financial center of the empire, but this suggestion was vetoed by Emperor Zhu Yuanzhang.
There is no other reason than that - there is no need.
In the eyes of Emperor Zhu, a capital is just a capital and it is enough to be a political center. There is no need to move banks and insurance companies to the capital in order to make it a financial center.
It is for this reason that whether it is Yingtian or Zhongdu, it is government agencies that moved, while financial institutions and commercial enterprises all moved naturally. The fact that Nanhua and Yingtian still maintain their prosperity until now is also directly related to this - the relocation of the administrative center did not have much impact on the local economy.
The most prominent example is Nanhua. Although a large number of government agencies moved to Yingtian more than ten years ago, Nanhua has not declined but is even more prosperous than before. With a population just over three million, Nanhua is the undisputed largest city in the Ming Empire. Even Yingtian cannot compare with it.
Where is the center of this city?
Is it Suzaku Street?
Perhaps that street is the main road of Nanhua and the most prosperous place, but in fact, the center of the city is Eighth Street.
The Eighth Street is the "oldest" street in Nanhua. It appeared on the blueprint as early as 20 years ago. When this street appeared in front of the world 18 years ago, the first building was the Bank of Nanhua. It was from then on that the fate of this street was determined. From then on, various financial enterprises such as banks, insurance companies and stock exchanges of the Ming Dynasty gathered here. Now it is known as the "Financial Center of the Ming Dynasty".
Among these institutions, the most eye-catching one is always the Ming Empire Bank. The Ming Empire Bank, whose predecessor is the Bank of Nanhua, is, to a certain extent, the central bank of the empire.
But this bank is... royal, not imperial.
On this day, in the rooftop office on the 28th floor of the Imperial Bank, the president of the Ming Empire Bank, Hu Guangyong, sat in a leather armchair. He once again glanced at the report in front of him and whispered to himself:
"It's about time..."
This report is a report that the Imperial Bank will fully participate in China's "abolition of the two-yuan system and the reform of the currency system". According to the report, the Imperial Bank will provide a loan of 40 million yuan to support the "abolition of the two-yuan system and the reform of the currency system". Correspondingly, from then on, China's finance will be highly tied to the Ming Empire.
This is also part of "Chinese integration".
Of course, in this process, the Imperial Bank will also gain extremely lucrative profits. After all, an annual interest rate of 7.5% is extremely lucrative. The interest rate of Ming Dynasty's foreign debt financing is only 3.5%, and the domestic debt is only 3%. This is directly related to the country's credit. Countries with good credit have low international bond interest rates, and vice versa. The interest rate of Britain's international bonds is only 3%, but the Roman Empire's is as high as 5%. Sometimes, national credit is really critical. At least in international credit, if there is no good credit, the credit cost will increase significantly.
But the most important thing is not the profit, but the fact that the Imperial Bank will directly participate in China's financial reforms and even control China's finances, thus achieving true integration of the two countries' financial industries.
For the country, perhaps it is the financial integration of the two countries, but for the bank, the most important thing is not the integration, but that in this process, the tentacles of the Imperial Bank will penetrate into every aspect of China.
Thinking of this, Hu Guangyong's mind emerged with the words that His Majesty often said.
“To master finance is to master the world!”
(End of this chapter)
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