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Not to mention Lu Jian's curiosity, even Tian Yu couldn't help but feel confused. After all, in his opinion, even if there were any problems with this draft, it shouldn't be about the transaction. Lu Jian's consideration on this matter was still quite thorough.
In short, he planned to rely on the bank to open a trading place for bulk goods, with the Red Flag Gang as the middleman to serve as a witness for the buyer and seller.
This should have been under the jurisdiction of the government, but in a large seaport like Panyu, countless merchants evaded taxes, so how could they report it to the authorities? Without a guarantor, many unscrupulous individuals, such as those who cheated and deceived others, inevitably emerged, and every year there were many conflicts caused by transactions.
Now that the Red Flag Gang dominates the South China Sea, if they are willing to take the lead, as long as the money they charge is not excessive, I wonder how many people will applaud.
This is not a big deal. What is rare is that Lu Jian also thought of the method of hanging water signs, that is, buyers and sellers can hang up the goods they urgently need to buy or sell according to their needs and trade according to demand.
In this way, earning a commission is secondary. They can easily know what goods are circulating in the market and how much they are worth. This is equivalent to controlling the market in Panyu. As long as it is operated properly, the profits are endless.
It's all covered, what else can be changed?
Facing their questions, Cheng Xi didn't hold back and threw out everything he knew: "Although your method is good, it's not much different from the ordinary market, and it has nothing to do with bank loans. The most important thing for our bank is to absorb the floating wealth of the people for our own use. For example, if a fleet is about to set sail and needs money to purchase goods, they can open an account in our bank, borrow money from the people, and then repay them with interest when they return. Or for bulk goods such as grain, raw silk, and tea, the buyer and seller can reach an agreement several months in advance, place a deposit in the bank, and use the deed as proof of delivery..."
Cheng Xi's words were plain and not too detailed, but they seemed to open a door. Lu Jian only listened for a moment before suddenly saying, "If that's the case, then the money deposited into the household can rise or fall, right?"
Market conditions change, and a contract agreed upon months in advance might not always be at the same price at the end of the contract. If someone were smart, they could use that certificate to trade, turning one shipment of goods into two transactions.
Seeing his quick reaction, Cheng Xi also laughed: "That's probably what it means, using money to make money."
She had never invested before. In her previous life, she'd only ever saved money in a bank account, and she knew nothing about stocks or futures. However, as a naval officer, Cheng Xi knew that stocks, futures, and insurance were all deeply connected to the Age of Discovery. If the East India Company had been successful, why couldn't they create a similar venture?
The phrase "money makes money" was incredibly precise. Without physical objects, just a bunch of deeds and IOUs to trade—wasn't that just money making money out of thin air? This was completely different from what he'd imagined, but the implications were even more astonishing. If this were done well, not only would the goods of the merchants, but all the money in Panyu would flow into this bank.
Tian Yu frowned. "If you can buy and sell goods that are going to be sold months from now, isn't that just buying and selling without any action, like gambling? If you don't manage it well, you might end up suffering the consequences."
He had been an official before, so he'd seen how easily fools could be persuaded, and the wickedness of profiteers. This method was so novel, if someone took advantage of it, the commotion it would cause would be far more terrifying than opening a bank or managing a market.
Cheng Xi smiled slightly. "Since it's a new thing, there are bound to be many loopholes and hidden dangers. However, we can't throw the baby out with the bathwater. As long as we carefully consider and plan, and remedy the loopholes in time, this method is worth a try. However, we must ensure that the foundation of the Red Flag Gang is not damaged, and we can't let money get to our heads."
As a modern person, Cheng Xi certainly knows the horror of the financial industry, but she also knows how astonishing the impact will be if such huge wealth flows in the market.
When the money of a feudal society is no longer buried in the ground and is no longer confined to the small surplus of agricultural products, it will inevitably be diverted to create countless workshops, allowing countless farmers to leave the land and become slaves of emerging capital. At the same time, it will also prompt thousands of ships to go to sea and seek greater profits in the raging waves and distant countries.
This is the power of capital. Money never sleeps, greedy and maddening. It can leverage not just productivity but also the production relations that correspond to it. Controlling this world-shaking power is not easy. Fortunately, she has a weapon at her disposal; she can try to pull the reins.
Tian Yu fell silent for a moment. Even though he knew that Cheng Xi had great ambitions, he never thought she could pull off such a trick. If this could be accomplished, it might really be worth a large army.
Looking at the determined expression on the other person's face, Lu Jian suddenly felt annoyed. He also discovered the terrible profits that this matter could bring. If it could be operated for a long time, it might be possible to build a foundation that far surpassed Lu's. However, he only wanted 10% of the shares!
As if sensing Lu Jian's thoughts, Cheng Xi said nonchalantly, "If you follow my idea, it will definitely be more time-consuming and labor-intensive. I am willing to give up another five shares as a reward for Brother Lu to manage the bank. However, this matter is of great importance, and I hope you can do your best."
She clearly knew the importance of the shares, yet she was still willing to give some away, which showed her generosity. However, this would tie her wealth to hers, and the larger the bank's assets grew, the harder it would be to separate them. Lu Jian breathed a sigh of relief, casting his concerns aside. He simply said, "Since you trust me, I will naturally do my duty. However, in this case, the bank must no longer offer low-interest loans, otherwise it will affect other arrangements."
Tian Yu immediately objected: "Green seedling loans are also the foundation of the bank. If they only care about the rich and ignore the people, what will become of the Red Flag Gang?"
Lu Jian refused to budge. "This Qingmiao loan is fine in the countryside, but it will inevitably cause trouble in Panyu. If we become the target of public criticism, how can we resolve the situation? Besides, with a low-interest loan, it won't provoke many people to have bad intentions. What if the debt is not repaid and becomes a bad debt?"
He had always disliked the Qingmiao Loan, and now that he was in Panyu, he naturally couldn't go along with it anymore.
Tian Yu was about to retort, but Cheng Xi waved his hand gently, "It doesn't matter. Since we can't coexist, just change the name. The bank in Dongning will be called 'Minsheng', and the one in Panyu will be called 'China Merchants'."
"China Merchants Bank?" Lu Jian couldn't help but frown. "Isn't this name too straightforward?"
Although it is easy to understand, it is not elegant enough.
Cheng Xi smiled: "What's wrong with that? Attracting merchants will bring in more money."
Although it is not as good as the Big Four banks, it is also very impressive and appropriate, so why not use it?
This little thing wasn't worth arguing about, so Lu Jian nodded and said, "That's fine, but with the changed transaction method, there are more things to consider. I'm afraid we'll have to plan it out more carefully."
Cheng Xi didn't care. "It's okay. It doesn't matter if it's slow. But there's one thing I must say up front. This newly established bank also needs an accountant sent by the Red Flag Gang to audit the accounts. The accounting method used must also be changed to double-entry bookkeeping."
"Double-entry bookkeeping?" Lu Jian had never heard of this thing before and was completely confused.
He Ling, who had been listening for a long time without being able to get a word in, suddenly perked up and answered for him, "This accounting method was invented by the gang leader. It's more sophisticated than ordinary accounting methods. The debits and credits are extremely detailed, and it's not easy to falsify."
In reality, this wasn't her idea. Cheng Xi was quite self-aware of her financial knowledge; she simply knew some concepts like "every debit must have a credit, and credits and debits must be equal." She gave some random instructions and had her staff copycat the system. This system was based on suggestions from experienced accountants, as well as careful refinements from Tian Yu and the other accountants.
But no matter how it came from, as long as it can be used, Cheng Xi simply said: "These accounting methods will also be taught to the accountants below, and more women will be selected to teach mathematics to increase the number of accountants."
This was a rare case of using public office for personal gain, yet Lu Jian could find no fault with it. As a woman, she must have cultivated a group of trusted aides, and placing these female accountants, deeply embedded in the banking system and in charge of the accounts, would have been the equivalent of eunuchs or even inspectors in the imperial court. It was indeed a brilliant move.
Lu Jian smiled slightly: "That's fine."
Cheng Xi nodded in satisfaction and stood up: "The preparation for the bank is a big deal, you should discuss it carefully and tell me the results when you have them."
Lu Jian was startled and couldn't help but look at Tian Yu. Tian Yu's face was not too good either. This Lu was not bad in ability, but he was too cunning, which was the type of person he disliked the most. However, such a big thing, he couldn't refuse it.
Seeing the other person's face darken again, Lu Jian suddenly laughed, gentle and elegant, "Since it is the arrangement of Gang Leader Cheng, I will obey your orders. I also ask Mr. Tian for your guidance."
He definitely did it on purpose! Tian Yu's scalp went numb and he almost cursed out loud.
Cheng Xi ignored the undercurrent between the two of them and waved his hand with a smile: "Then I'll have to trouble you two."
After saying that, she left the hall without even looking back. He Ling rolled her eyes and followed him. She hadn't been called on anyway, so why bother joining in the fun?
But after walking a long way, she couldn't help but whisper, "Miss, it seems that Mr. Tian and Mr. Lu don't get along. Will it cause any delays?"
When Cheng Xi revealed her identity and changed into women's clothing, He Ling was depressed for a while, feeling that she could no longer call her "Young Master". But after thinking about it, calling her "Miss" didn't seem to be a big deal. After all, she was the personal maid, and no one could take her place.
Hearing He Ling say this, Cheng Xi smiled: "It's better that they don't get along. One is in charge of finance and the other is in charge of commerce. If they were in love, how could I still sit still?"
The term "loving each other" was too strange. He Ling curled her lips and quickly reacted: "Then what about us accountants? Do we just have to listen to the lady?"
Cheng Xi smiled even deeper: "You are my spies, no need to stand in line, just do your job well."
He Ling understood and nodded excitedly: "I'll listen to you, Miss!"
This matter was settled, but there were still a lot of other things to do, which made him too busy to spare any time. He only regretted that there were too few talented people. Fortunately, he was only worried for a few days before a "talented person" with Fang Tianxi's letter of introduction came to him.
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