Chapter 53: The Bank

The Chongzhen Emperor felt thoroughly miserable.

Everyone's an emperor, but just look at those Manchu Qing emperors.

Kangxi, that pockmarked guy whose face was a crater-field from smallpox, was always sneaking off on incognito inspection tours, and no one ever saw him do a damn bit of real work — the whole way he'd be inspecting and picking up girls.

Qianlong, that guy who supposedly had Han blood but couldn't possibly have, was also out gallivanting like an idiot all the time, forever heading down to Jiangnan.

First there was Xia Yuhe by Daming Lake, and later some nine-year-old son — and on the pretext that the boy could match couplets, he made him a County Magistrate.

Of course, they were Manchu Qing emperors — no matter how wildly they misbehaved, they were still hailed as enlightened rulers of their age. Our Chongzhen Emperor can't compare with them, but surely he could at least compare with the Zhengde Emperor, another Great Ming emperor?

And it turns out he can't fucking compare with him either. The Zhengde Emperor's dad was a powerhouse — left behind a fat inheritance, and his ministers were powerhouses too. So Zhengde could also head down to Jiangnan and have his fun.

Now look at Chongzhen. His dad was useless — dropped dead after a month. His elder brother the emperor also let him down — only seven years, hadn't even figured things out yet, and he dropped dead too. Dumped this whole mess onto Chongzhen.

Between Chongzhen's dad and Chongzhen's brother, the state treasury had all of a few million taels of silver left, and as for the ministers they left behind — apart from calling them trash, Chongzhen couldn't find a better word. They weren't even as reliable as eunuchs.

How does that saying go? If Great Ming civil officials could be trusted, sows would climb trees?

Right now, Chongzhen's heart was brimming with resentment. Other guys get to be emperor and live it up; when it's his turn to be emperor, just to avoid hanging himself from that old crooked-neck tree, he has to grind away at governance! He can't just cut loose however he pleases!

And so here he was — Chongzhen stared at Shi Fenglai and Guo Yunhou before him, and another wave of headaches hit.

These two had come to ask about the Great Ming Imperial Bank and the Great Ming Livelihood Bank.

The problem was, before he transmigrated, the Chongzhen Emperor had been nothing but a feral code monkey — he had no clue how a bank actually worked. Even a bank's business systems weren't something a feral code monkey like him could get near; they were supposedly high-end cross-platform stuff.

Still, not too bad — though he'd never seen a pig run, the Chongzhen Emperor had eaten pork. Before transmigrating, the mortgage he'd taken out with the bank still wasn't paid off.

Chongzhen spoke: "This bank matter — first, it absorbs silver from the common people; second, it issues loans.

What is meant by absorbing silver from the common people is attracting them to deposit their silver in the bank. Not only must the bank not charge safekeeping fees, it must also pay monthly interest to the people.

If the people do not withdraw it, the interest is added to the deposited silver, becoming principal, and continues to accrue interest."

Guo Yunhou, however, asked curiously: "Your Majesty, if that is so, should the people all refrain from withdrawing their silver, the interest will pile up more and more, and the principal it turns into will also grow larger and larger — how could the bank ever afford to pay it?

Even with lending, how could it recover so much interest? And if someone takes a loan and does not repay, what then?"

Chongzhen laughed inwardly with contempt — who the hell would dare owe Us money and not pay it back? Did they think Our Embroidered Uniform Guard was just for show?

He immediately said to Guo Yunhou: "The common people deposit one tael of silver; suppose the monthly interest is one wen.

Lending it to those who urgently need money — for instance, merchants wanting to undertake large business ventures or urgently needing silver for turnover — for each tael of silver, we can charge them monthly interest ranging from three wen to five wen.

In this way, there is both the silver to pay the people's interest, and in between, there is profit for the bank.

As for those who take loans and do not repay — first, borrowing requires a guarantor or collateral, such as shopfronts, farmland, antiques, and other valuables.

Second, is there not still the Embroidered Uniform Guard? In any case, commoners will not lightly borrow from the bank, and even if they do, they will not borrow much.

Should a merchant take a loan and be unable to repay it when it falls due, then the collateral they put up shall be taken into the bank's possession, so the account does not go bad.

If they are able to repay but do not, then no matter who stands behind them, have the Embroidered Uniform Guard go after them to collect."

Shi Fenglai, however, said: "Your Majesty, after all, within this Great Ming, there are many princely fiefs and ennobled houses — what if it is they?"

Chongzhen said: "Let them borrow. We shall see who dares owe the imperial house silver and not repay. Anyone who dares repudiate a debt — princely fiefs shall have their princedoms reduced; ennobled houses shall be stripped of their titles!"

Guo Yunhou continued: "Your Majesty, that resolves these two problems. Yet there remain two even thornier problems, and I beg Your Majesty's guidance."

Chongzhen was quite curious — these two problems were solved, so what other problems could there be? He said to Guo Yunhou: "Speak, beloved minister, and We shall listen."

Guo Yunhou said: "The first is, how to attract the common people to deposit silver into the bank? After all, this has never existed before in the Great Ming — even piaohao money shops were only created by merchants for their own convenience. As for the second, if no one borrows, what is to be done?"

Chongzhen pondered briefly, then said: "On the matter of attracting the common people to deposit silver — We shall take the lead. Once the bank is established, We shall order the palace to deposit silver into it. Presumably, among the common people, some will follow suit.

Just one point: no matter what, the first priority is to ensure that the common people can withdraw their deposits at any time. Whether it is treasure notes or silver, reserves must be properly maintained.

Under no circumstances must a situation arise where the people wish to withdraw, but there is no silver at the counter.

As for no one borrowing — a separate office may be established within the bank, dedicated to seeking out profit-generating ventures in which to invest.

Additionally, We intend to expand the Changlu salt fields, and also order Dengzhou and Laizhou to increase their sea-salt production, bringing salt under official monopoly.

The capital needs of these two salt fields alone shall be invested by the bank, and the salt fields shall share one part of their profits with the bank. How does that sound?"

Guo Yunhou was overjoyed at these words and said hurriedly: "Many thanks for Your Majesty's guidance. And what of the old-age pensions? How should those be handled? Do the princely fiefs and ennobled houses also receive them?"

Chongzhen said: "What would they get? What more do they want? Dignified princely fiefs and ennobled houses, all hereditary and irreplaceable, all with their own enfeoffed lands — these old-age pensions and the probity-nurturing stipends are not for them."

Shi Fenglai, however, suddenly recalled a matter and asked further: "Your Majesty previously said that the Great Ming Imperial Bank would be solely responsible for printing treasure notes, and the Great Ming Livelihood Bank would handle operations exclusively — why not merge the two into one?

Would that not be easier to manage?"

Chongzhen thought to himself: in later ages, there were indeed banks that could both issue notes and handle financial business, but the moral integrity of these Great Ming officials had long since been scattered all over the ground — would We dare trust you to be both referee and athlete?

Thinking this, Chongzhen said to Shi Fenglai: "In Our conception, the Great Ming Imperial Bank is the foundation. First, it prints treasure notes.

Second, in the future, more banks will appear — for example, the Great Ming Construction Bank, which would specialize in construction investments for bridges, roads, and city walls throughout the Great Ming, while also being able to absorb silver from the common people and issue loans.

There would also be the Great Ming Industrial and Commercial Bank, which, beyond lending to artisan workshops, merchant firms, and shops, would also absorb deposits from the common people and issue loans.

In short, in the future there will not be only one bank. The various banks will both cooperate and compete with one another. The Great Ming Imperial Bank will be the superior authority over these banks, providing them with guidance.

Did the Embroidered Uniform Guard not arrest many people from the piaohao money shops earlier? Have them brought out of the Imperial Prison and study how to handle this matter together with them."

Having wasted half a day's breath, Chongzhen had finally emptied out every last scrap he had in his head about the banks of later ages.

After Shi Fenglai and Guo Yunhou had left, Chongzhen said to Wang Cheng'en, who was attending at his side: "Go, send word: suspend court for one day tomorrow.

Order all civil and military officials to go to the the the Caishikou execution ground execution ground execution ground to observe punishment. Also, have someone find Us a decent spot at the the Caishikou execution ground execution ground — one with a view of the officials.

Tomorrow We shall go incognito to watch."

First update of the day. How about the next update around 2 p. m.? Got a site message saying that from this Sunday to next Sunday, this book is on the history channel's new-book recommendation.

(End of chapter)