diymy Chapter 137 Trust is more valuable than money
Chapter 137 Trust is more valuable than money
Chapter 137 Trust is more valuable than money
In Chapter 136, Chen Ying didn't know whether to call the Huizhou merchants stupid or shrewd. They had deposited over three million taels of silver in the Da Ning Ping An Bank, and this amount only required paying two to three hundred thousand taels of silver in interest annually. This interest rate was extremely low. In later generations, if any bank dared to offer him such a low interest rate, he would practically kowtow to them.
Do you really think Chen Ying needs to rely on banks to make money? Actually, he can still make money, but the problem is, with this low-interest loan of three to four million taels of silver, why would he need other loans? He could easily borrow it himself, at an annual interest rate of five percent, and make money in any business he does.
For over a year, the biggest problem hindering Chen Ying's development was a lack of money. Despite the considerable profits from his workshops, the expenses were enormous – building schools, improving the welfare of craftsmen and soldiers – making the profits insufficient. Now, things were different. He had money. Based on the expertise of his craftsmen, Chen Ying established research departments for breech-loading rifles, cannons, howitzers, bullets, exploding shells, rocket artillery, landmines, sulfuric acid, nitric acid, fertilizers, and more.
Chen Ying established twenty-nine research project departments in one go. If there was no research technology, he could provide research directions; if there was no equipment, he could manufacture it; if there were no skilled craftsmen, he could poach them with money. The first batch of research and development funds amounted to a full 100,000 taels, especially for the gunpowder research project, which received a full 150,000 taels.
The twenty-nine project teams were all staffed with officials of the sixth rank, who were also appointed by the imperial court. These craftsmen were so excited that they wanted to cry when they suddenly realized that they had become officials of the imperial court. Many of them held ancestral worship ceremonies overnight. They could finally bring glory to their ancestors. Indeed, the sixth rank was not low. A county magistrate was only a seventh rank. In later times, although the sixth rank could not be considered a deputy director-general level, it was slightly lower than the standard deputy director-general level. Typical positions such as Tongpan (deputy mayor of a prefecture-level city) and Zhushi (internal staff officer of a ministry) had some overlap with the modern deputy director-general or county-level positions, but were closer to the deputy director-general level.
In the council hall of the Shahewei Commander's Office, the newly appointed twenty-nine project managers, fifty-eight officials of the seventh rank or lower, and more than one hundred assistant managers, totaling more than two hundred officials, gathered in the council hall.
These newly appointed officials, all of whom came from artisan backgrounds, hurriedly knelt down and kowtowed as Chen Ying entered.
"Greetings, Commander!"
"Get up. From now on, you are not allowed to kneel before me. Anyone who disobeys will be dismissed on the spot!"
"Yes, sir!"
Looking at the research projects below, Chen Ying said, "Please divide up the research and development parameters and standards for each project, take a look, and then we'll discuss it further!"
With the research and development requirements of various printing projects, such as the cannon research and development project, cannons are a field that the Ming Dynasty has not yet come into contact with. In fact, there is no real cannon in the world so far, and of course no country can cast cannons with a barrel diameter of more than forty times.
Especially after receiving the cannon's specifications, Chen Ying was instantly dumbfounded. His requirements were that the cannon's caliber must be large, either three or four inches; the weight couldn't be too great, it had to be under 100 jin (approximately 50 kg), otherwise it was pointless; and it had to be able to withstand high temperatures, enduring the intense heat of continuous firing.
Looking at the requirements, the artillery researcher lowered his voice and said, "Old He, how about you take on this role? The caliber is three or four inches, but the weight must be kept under 100 pounds. This—how are we supposed to manage this?"
He Chunyang, the magistrate, said with a wry smile, "This humble official doesn't know either?"
Chen Ying began speaking: "I don't care what you do, you can do whatever you want. I know this isn't a task that can be completed in a short time. I will provide you with ample funding and transfer some outstanding craftsmen to assist you in your research. You can try different methods one by one, whatever is the easiest and most durable. Just get it done within ten years!"
If Chen Ying didn't intervene more forcefully, it might take ten years to develop the technology. But the problem was, Chen Ying continued, "My money isn't so easy to take. If the money is spent and the task isn't accomplished, I'll hang you and your entire family on a tree!"
Chen Ying's words sent a shiver down the spines of all the project team members present. They were instantly energized, brimming with confidence, as if injected with adrenaline: "If we cannot accomplish this, we'll offer our heads!"
The rear hall of the Huizhou Merchants' Association.
Jiang Chun held his wine glass, his face beaming with joy. Chen Ying, seeing that the bank had no loan customers, spent the money himself. Actually, there was no need to inquire too much about this matter; two or three million taels of silver were used to establish twenty-nine project departments. These twenty-nine project departments were recruiting people and acquiring equipment everywhere, and also building workshops. The money was spent like water.
"The head of the meeting,"
Jiang Chun put down his wine glass, a smug gleam in his eyes. "Chen Boying really is a reckless fool. He's poured all the money we deposited into those unreliable project departments. Bulk-loading rifles, cannons, rocket launchers—it all sounds so impractical. Over three million taels of silver gone, and not a single note has been received."
Wang Wende stroked his beard and said with a smile, "If he knew how to do business, he wouldn't have gone to Liaodong to risk his life. He's good at fighting, but as for managing money—" He shook his head and smiled meaningfully.
Someone nearby chimed in, "Chief, in my opinion, we should add fuel to the fire and deposit some more silver. When he can't pay it back, won't his saltworks, ironworks, and shipyards all be ours?"
Jiang Chun's eyes lit up: "Brilliant! Chen Boying's snow salt technology, the salt fields on Dalu Island, the blast furnaces at Yongning Port—aren't they all incredibly lucrative? If we could get our hands on them, let alone three million taels, thirty million taels would be worth it!"
"And there's the Shahe Academy, that's a really good thing!"
"We can also use Shahe Academy to establish another Shahe Party, ruining the reputation of the Donglin Party—"
Wang Wende pondered for a moment, then slowly nodded: "Then deposit another two million taels. But be careful not to let Chen Boying see through our scheme."
Everyone agreed and raised their glasses in celebration. In their eyes, Chen Boying had already stepped into the trap, and they were just waiting for the net to be pulled in.
Meanwhile, at Wei Zhongxian's residence.
Wei Zhongxian leaned back on the couch, his face so dark it seemed like it could be wrung out of water. He held a summary of Ping An Bank's accounts in his hand, his fingers trembling slightly. Chen Ying sat below him, his expression calm, slowly sipping his tea.
"Boying," Wei Zhongxian slammed the account books on the table, his voice deep, "I'm asking you, can this bank actually make money?"
Chen Ying put down his teacup and smiled, "Why do you say that, sir?"
"What makes you say that?" Wei Zhongxian stood up abruptly. "Look at this for yourself! Our savings are almost eight million taels, but we've only lent out less than fifty thousand taels. The interest alone is four hundred thousand taels a year! Our two million taels of silver is practically our life savings!"
Chen Ying stood up, walked to Wei Zhongxian, and said calmly, "Father-in-law, do you believe me? When have I ever done a losing business deal?"
Wei Zhongxian was taken aback.
"I've said it before, if banks can make money, they definitely can. The reason there are so many deposits and so few loans now is because money shops have ruined the reputation of lending!"
Chen Ying was actually very clear that the current situation was just like the more than ten years of the insurance industry's unbridled development. In order to expand their business, various insurance companies relied on deception, using things like rice, flour, and oil to fool rural people who knew nothing. As a result, many people were deceived. It was easy to buy insurance, but very difficult to make a claim. Even now, many people still have prejudices against insurance, believing that buying insurance is a scam.
The same applies to money shops today. The basic operation is "nine out and thirteen back". In addition, many people do not even understand mathematics and cannot figure out this account. Whether they are ordinary people or merchants, they all know one thing: if they borrow money from a money shop, they are basically going to their doom. It is the same as drinking poison to quench thirst.
"Father-in-law, we need a catalyst to change this prejudice! Besides, my research projects aren't just spending money without making any. Cannons, breech-loading rifles, exploding shells—if we could build these, not only the Jurchens, but even the British barbarians would have to kneel before us. Then, would we still worry about money?"
Wei Zhongxian remained silent for a moment, then finally sighed: "Boying, I trust you. But you have to hurry, I'm not at ease."
Chen Ying bowed and said, "Don't worry, Father-in-law, the bank will definitely turn things around within three months!"
However, the three months Chen Ying mentioned was actually a conservative estimate. Ping An Bank had its first commercial loan customer. So far, Ping An Bank in Daning had issued more than 50,000 taels of silver in loans, which were mostly emergency or life-saving loans. The amounts were not large and the number of customers was small.
This was a woman in her forties, surnamed He, known as Widow He. She wore a faded blue cloth dress, her hair was neatly combed, and the wrinkles on her face bore the marks of time, but her eyes were exceptionally bright. She stood in front of the bank counter, her hands tightly clutching a cloth bag, her knuckles turning white.
"Shopkeeper, I—I want to borrow money."
Her voice trembled slightly, yet it conveyed a stubborn confidence.
The shop assistant behind the counter hesitated for a moment, then quickly ushered Su Mei out. Su Mei led her to the back room, poured her a cup of tea, and said gently, "Sister He, how much do you need to borrow? What is it for?"
Widow He held her teacup but didn't drink. Her voice was urgent and sincere: "I want to borrow one hundred and fifty taels. I run a steamed bun shop in Shahewei. It's just two small rooms, and business is very good. I can earn three or four taels of silver a month just from selling steamed buns. But the place is too small, and there aren't enough seats for all the customers. I want to buy a piece of land and build a bigger shop."
She paused, then took a stack of papers from her cloth bag and carefully unfolded them: "This is the land deed for my steamed bun shop, and this is the deed for the land I've got my eye on. I know the rules; I use things as collateral. This steamed bun shop can earn forty or fifty taels of silver a year, is it worth one hundred and fifty taels? And that land, it's in a good location, it'll definitely appreciate in value in the future. I'll use these two things as collateral, is that alright?"
Su Mei took the land deed, examined it, and inquired about the location and business of the steamed bun shop. She already had a good idea of what was going on. She thought to herself, "This Widow He is quite shrewd. The steamed bun shop earns forty or fifty taels a year; using it as collateral is worthwhile. The land is in a good location; with the future expansion of Shahewei, its value will at least double. Together, it's a hundred and fifty taels—a good deal."
Su Mei picked up the pen and signed the loan approval form: "Loan disbursed. Annual interest rate of 2%, term of 12 per year, timely repayment, and you can borrow more next time."
Widow He's palms were sweating with nervousness. When Su Mei told her that it was "approved," she was stunned for a long time, and her eyes suddenly reddened.
"Really? You're really lending it to me?"
Su Mei smiled and said, "Really, Sister-in-law He, you can take it and use it, just return it on time."
Widow He held the loan slip, her hands trembling. She stood up, bowed deeply towards Chen Ying's study, and murmured, "Lord Chen, you are a living bodhisattva—"
The news of Widow He spread quickly, and the craftsmen and merchants of Shahewei were all talking about it: "Widow He has borrowed money!"
"Two percent annual interest, just use the shop and land as collateral!"
"Really?"
"It's true! The bank has already disbursed the loan, it's in black and white!"
Those small vendors and artisans who were initially hesitant began to take notice.
Immediately afterwards, the second and third loan customers came to the door one after another. Some borrowed 100 taels to open a general store, some borrowed 200 taels to start a woodworking workshop, and some borrowed 300 taels to buy screws and start a transportation business.
These loans were not large, but each one was secured by collateral, and each one was repaid on time. This is how Ping An Bank's loan business gradually started.
Chen Ying stood by the window of his study, gazing at the old locust tree in the courtyard that had just sprouted new buds, a smile playing on his lips.
Song Yanniang walked behind him and whispered, "Husband, regarding Widow He's loan, according to the bank's mortgage standards, her shop has a temperature, so she can only get eighty taels. But can we really get back this one hundred and fifty taels?"
Chen Ying turned around and looked at her: "Yan Niang, do you know why I dared to lend it to her?"
Song Yanniang shook her head.
"Because she was the first."
Chen Ying's gaze was deep. "The first person to dare to borrow money is either desperate or truly capable. Widow He has a steamed bun shop, she has business acumen, and she's intelligent. All she lacks is an opportunity. If I give her that opportunity, she will repay me with her trust."
He paused for a moment, then smiled and said, "Trust is more valuable than money."
Song Yanniang added, "The silver deposited by those officials is of dubious origin. What if—"
"There's no 'what if'," Chen Ying interrupted her calmly. "They deposit money, the bank collects it—it's all aboveboard, legal and compliant. As for where their money comes from, that's their business, not the bank's."
Song Yanniang was taken aback: "But isn't this helping them bribe officials?"
Chen Ying laughed: "Helping them bribe? The bank is just providing a tool. Like a knife, some people use it to cut vegetables, some use it to kill. Is the knife wrong?"