sovbooks Chapter 135 The Great Ming Dynasty's Peace Bank
Chapter 135 The Great Ming Dynasty's Peace Bank
Chapter 135 The Great Ming Dynasty's Peace Bank
Chapter 134 The capital city, the Prince Xin's mansion, the study.
Zhu Youjian sat at his desk, a thick account book spread out before him, his brows sometimes relaxed, sometimes furrowed. Cao Huachun stood beside him, carefully grinding ink, barely daring to breathe.
It was thanks to Chen Ying's support that Prince Xin acted as the intermediary for the Shanxi merchants to sacrifice their wealth to ensure their safety. He successfully helped the seven major Shanxi merchant families "safely" weather the crisis. Although each family lost about one-third of their wealth, they avoided being raided by the Embroidered Uniform Guard.
With the joint efforts of Chen Boying and Wei Zhongxian, Prince Xin, Zhu Youjian, not only became a timely help to the capital, but also a vanguard in resisting the eunuch faction.
In reality, Zhu Youjian was still dreaming at this moment.
"Cao Banban,"
Zhu Youjian put down the account book, rubbed his eyes, and asked, "Tell me, what kind of person is Chen Boying?"
Cao Huachun thought for a moment and then smiled, "Your Highness, Lord Chen is skilled in warfare, manufacturing, and business. You won't find another like him in the entire court."
Zhu Youjian nodded, then shook his head: "He is indeed skilled in warfare and manufacturing, but when it comes to business, I invested tens of thousands of taels of silver in him, and he said he wanted to start some kind of bank. Tell me, what is a bank?"
Cao Huachun hesitated and said, "This servant is foolish, but I think—it should be similar to a money exchange, right?"
"A money exchange?"
Zhu Youjian snorted, "Banks charge storage fees, but this one is different; not only does it not charge storage fees, it even pays interest. Isn't that just throwing money down the drain?"
Cao Huachun dared not respond.
Zhu Youjian stood up, paced around the study a few times, then suddenly stopped: "Forget it, I don't understand these things. Since I've already invested, I'll trust him. Anyway, this money was earned with his help. Chen Boying, Chen Boying, don't let me down."
The Forbidden City, the Qianqing Palace, the West Warm Pavilion.
Emperor Tianqi, Zhu Youxiao, was dining with his brother, Zhu Youjian. It was a rare occasion for the two brothers to sit together. The imperial kitchen had laid out a table full of dishes, but Zhu Youjian had little appetite.
"Brother,
Zhu Youjian put down his chopsticks and couldn't help but say, "Your Majesty, there is something I would like to tell you."
The Tianqi Emperor picked up a piece of food and slowly asked, "What is it?"
"It's that Chen Boying."
Zhu Youjian frowned and said, "My brother invested tens of thousands of taels of silver with him, hoping he could help make money. But instead, he says he wants to start some kind of bank," not only waiving depositors' fees but also offering interest. Isn't that foolish? He's also setting extremely low loan interest rates. At this rate, he'll lose all his silver, no matter how much he has."
The Tianqi Emperor put down his chopsticks, looked at Zhu Youjian, and suddenly laughed: "Brother, do you think Chen Boying is a fool?"
Zhu Youjian was taken aback: "No, that's not it. He's so skilled in warfare and so adept at building things, how could he possibly be a fool?"
"That settles it then."
The Tianqi Emperor picked up his teacup, took a sip, and said, "He's not stupid, so there's a reason behind what he does. You only see the surface, not the underlying reasons."
Zhu Youjian asked, puzzled, "What does Your Majesty mean—?"
The Tianqi Emperor set down his teacup, his gaze deep and thoughtful. "I believe Chen Boying is playing a very long game. This game is not simply about making money. My brother, do you know why I trust Chen Boying so much?"
Zhu Youjian thought for a moment: "Because he can fight?"
Not entirely.
The Tianqi Emperor turned around and said, "Because everything he did was to share my burdens and to think of the Ming Dynasty. He made agricultural tools so that the people could have enough to eat; he trained a new army to protect the country; and he had his reasons for setting up a bank."
You don't understand, and neither do I. But I believe he must have his reasons for doing this.
Zhu Youjian nodded thoughtfully.
A few days later, Chen Ying was summoned to the palace.
In the West Warm Pavilion of the Qianqing Palace, the Tianqi Emperor sat behind his desk, with a copy of the "Regulations of the Da Ning Bank" presented by Chen Ying spread out in front of him.
He observed carefully, occasionally looking up to ask a few questions.
"Chen Qing, what's the difference between a bank and a money exchange?"
Chen Ying bowed and said, "Your Majesty, money shops lend out their own money and earn interest spreads. Banks, on the other hand, lend out other people's money and also earn interest spreads. But the biggest difference between banks and money shops is that banks pay depositors interest."
The Tianqi Emperor became interested: "Give interest? Isn't that a loss?"
"It's worth it."
Chen Ying smiled and said, "Your Majesty, think about it. Money shops charge depositors a safekeeping fee, so depositors are naturally unwilling to deposit their money there. But banks offer interest, so depositors are willing to deposit. The more money deposited, the more money the bank can lend. Although the interest on each loan is low, the total profit is not small when the amount is large."
The Tianqi Emperor seemed thoughtful: "You mean, low interest rates and frequent lending?"
"Your Majesty is wise."
Chen Ying continued, "Furthermore, banks do more than just lend money. They can exchange currency, transfer funds, and settle payments for merchants. Merchants no longer need to carry boxes of silver around to do business; they can simply use a bank draft to withdraw money at branches in various locations. It's convenient, safe, and it also promotes commercial circulation."
The Tianqi Emperor's eyes grew brighter and brighter: "You mean, this bank can boost business across the land?"
"Exactly."
Chen Yingdao said, "Your Majesty, think about it. If all the silver in the world could circulate freely, it would be easier for merchants to do business, cheaper for ordinary people to buy goods, and easier for the court to collect taxes. This is not just a benefit for one family, but a benefit for all people in the world."
The Tianqi Emperor exclaimed in delight, "Excellent! What a wonderful way to benefit the people of the world!"
He stood up, paced a few steps in the warm pavilion, and suddenly stopped: "Minister Chen, how much capital do you need for this bank?"
Chen Yingdao said, "Your Majesty, my preliminary estimate is that at least five million taels of silver in reserves are needed. I have already raised more than three million taels, but I am still short."
The Tianqi Emperor pondered for a moment and said, "I will contribute two million taels."
Chen Ying was taken aback: "Your Majesty—"
"I'm not contributing for nothing," the Tianqi Emperor laughed. "I want a stake. Tell me, how much can I get with two million taels?"
Chen Ying thought for a moment and said, "If Your Majesty contributes two million taels, I will give Your Majesty a 30% share."
"Thirty percent?"
The Tianqi Emperor nodded. "Alright. Also, regarding Wei Banban, I've told him to contribute two million taels, which is 25%. You contribute the technology, personnel, and management, which is 40%. The remaining 0.5%—"
He looked at Zhu Youjian: "Youjian, didn't you invest tens of thousands of taels? I'll give you half a percent."
Zhu Youjian opened his mouth, wanting to say that he only had tens of thousands of taels, not hundreds of thousands of taels, but was stopped by the Tianqi Emperor raising his hand.
"It's settled then," the Tianqi Emperor declared. "This bank will be called the Great Ming Great Ning Peace Bank. Chen Qing, you'll be in charge of the preparations; open it as soon as possible."
Chen Ying bowed and said, "Your subject obeys the decree."
That night, in the Chen residence, in the study.
The candlelight flickered, casting shifting shadows across the wall. Chen Ying lay hunched over his desk, his pen scratching across the paper, producing lines of tiny characters that read "Detailed Rules for Loans from Da Ning Ping An Bank." He had been writing for two whole hours; his wrist was aching, but he showed no sign of stopping.
Song Yanniang carried in a bowl of white fungus and lotus seed soup, gently placed it on the table, peeked at the densely written characters on the paper, and couldn't help but say, "Husband, your bank hasn't even opened yet, and you've already written so many rules. Aren't you tired?"
Chen Ying put down his pen, rubbed his wrist, and laughed, "Without rules, there can be no order. Banks deal with money, so we can't be careless."
Song Yanniang picked up the bowl of lotus seed soup and handed it to him, then picked up the stack of manuscript papers and began to read. She was a daughter of the Song family, and had been learning accounting since she was seven. What kind of accounts hadn't she seen? But as she read, her brows furrowed.
"Husband," Song Yanniang put down her manuscript and said earnestly, "your bank is pretty much the same as a money exchange. You lend money and collect interest, you deposit money and give interest. But do you know that although the money exchange business looks very profitable, the actual profit margin is actually quite thin?"
Chen Ying took a sip of lotus seed soup and asked with interest, "Oh? How so?"
Song Yanniang sighed and said, "The biggest problem with money shops is bad debts. When they borrow money, they all pat their chests and promise everything, but when it comes to repaying, they make all sorts of excuses. Some say their business has failed, some say their family has suffered a disaster, and some simply disappear. You can't possibly chase after them all over the world for a little bit of money, can you? Even if some money shops are ruthless enough to seize the borrowers' children to settle the debts, how many taels of silver can a young virgin be sold for? It's not even enough to fill a tooth gap. So, although money shops look glamorous, in reality, more than half of their debts are bad debts. Those that manage to survive rely on other businesses to cover the losses."
Chen Ying put down his bowl and smiled: "Yan Niang, you're right. But do you know why those money shops have so many bad debts?"
""
Song Yanniang thought for a moment: "Because the person who borrowed the money didn't keep their word?"
"Not entirely." Chen Ying stood up, walked to the window, and turned his back to her. "It's because they never even considered whether the borrower had the ability to repay. Or rather, they didn't even bother to check. My bank wouldn't do that."
Song Yanniang was taken aback.
Chen Ying walked back to the desk, picked up the stack of manuscript papers, turned to a page, and pointed to the items on it: "Look, the first rule is that all loans must first verify assets. How much land, how many shops, how much silver in savings the borrower has must all be clearly verified. If someone has no assets and wants to borrow money? Sure, but they need a guarantor, and the guarantor's assets must also be verified."
He turned to another page: "The second requirement is collateral. To borrow one hundred taels of silver, you need collateral worth at least one hundred and fifty taels. Land deeds, house deeds, deposit certificates are all acceptable. If you can't repay, the bank has the right to dispose of the collateral. The third requirement is credit. The first loan is small; if you repay on time, the loan amount will be larger; if you repay again, it will be even larger. People with good credit can borrow money without collateral. People with bad credit won't be lent to even with collateral."
Song Yanniang listened intently, then couldn't help but ask, "What if someone borrows the money and runs away?"
Chen Ying laughed: "Run? Where can we run to? The bank has branches all over the country, connections with the Imperial Guard, and support from the Da Ning Army. We can run, but we can't hide. Besides, we have collateral in hand, what's there to be afraid of?"
He put down his manuscript, his gaze deep and thoughtful: "Yan Niang, remember this: a bank isn't a charity; it's a business. Business has rules. Whoever breaks the rules will pay the price."
Song Yanniang nodded thoughtfully, then suddenly asked, "What is the biggest difference between your bank and a money shop?"
""
Chen Ying thought for a moment and said, "Money shops treat people differently based on their skill level, relying on the manager's judgment. Banks operate according to rules, relying on written contracts. Skill can be mistaken, but contracts cannot. Of course, the most important difference is that money shops only recognize silver, while banks recognize credit. People with good credit can borrow silver even without it. People without credit won't be lent even if they have silver."
Song Yanniang sighed, "Husband, your idea is good, but how many people in the world are truly trustworthy?"
Chen Ying shook his head: "It's not about whether people in the world are trustworthy or not, but whether we have a way to make them trustworthy. Banks give them the benefits of being trustworthy, but also the consequences of not being trustworthy. Weighing the pros and cons, most people will choose to be trustworthy."
He sat down again, picked up his pen, and continued writing the detailed rules. The biggest difference between banks and money shops wasn't just their business models; there was another crucial point: for distributing military pay to the soldiers of the Shahe and Daning New Armies, banks bypassed officers and paid the soldiers directly, reducing officers' opportunities to handle the pay. Without direct access to the silver, even if officers wanted to embezzle it, they had no chance.
More importantly, Chen Ying currently commands hundreds of thousands of artisans, and paying their wages is a substantial sum. Moreover, with so many people involved, problems are prone to arise, and the more people overseeing the business, the higher the costs. Furthermore, this money is essentially Chen Ying using borrowed resources to generate more wealth. He leverages the imperial court's authority to extract profits from the Huizhou and Shanxi merchants.
Chen Ying submitted the bank's detailed rules, which were directly approved by the Tianqi Emperor. With the help of Wei Zhongxian, the Daning Ping'an Bank was rapidly expanded. The Embroidered Uniform Guard sent more than 260 family members of convicted officials to Chen Ying. They were all well-read scholars.
A few days later, the Daming Yong'an Bank of the Ming Dynasty was officially established in the capital. The bank was located in a three-courtyard house in the eastern part of the city, with a golden signboard hanging in front of the gate and a couplet written by the Tianqi Emperor on both sides: "Connecting the wealth of the four seas, benefiting the people of the world."
On the opening day, firecrackers crackled and drums resounded. The Tianqi Emperor sent Wang Tiqian with a congratulatory gift—a pair of jade ruyi scepters, symbolizing "all things going well." Wei Zhongxian also personally attended, smiling and exchanging pleasantries with Chen Ying.
Zhu Youjian stood in the crowd, looking at the golden signboard, his heart filled with mixed emotions. He recalled his earlier criticism of Chen Ying for "not knowing how to do business," and his face flushed slightly.
"Your Highness," Cao Huachun said in a low voice, "do you think this bank can make money?"
Zhu Youjian was silent for a moment, then slowly said, "I don't know. But I do know that Chen Boying never does anything he's not sure of."
He turned and got into the carriage.
The carriage slowly drove away. Zhu Youjian lifted the curtain, glanced back at the signboard that gleamed in the sunlight, and murmured, "Chen Boying, don't disappoint me."
News of the bank's opening quickly spread throughout the capital. Merchants discussed it animatedly, some saying it was a good thing, others calling it a joke. But regardless, the first bank of the Ming Dynasty was born amidst controversy.
Chen Ying knew that this was just the beginning.
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