Chapter 287: Unimaginable Exorbitant Profit

Er...

Is that not okay?

Du Gou said weakly.

No one spoke; Chen Yan found it a bit amusing, feeling that Du Gou was sometimes adorably silly.

Li Chengqian cupped his fists and said, "Zi Anxiong, you've only covered the second point; there should be more, right?"

"Of course." Chen Yan took a sip of tea, "The third point certainly exists, but what I just mentioned was only a general direction, with far too many details left unsaid."

For example, the first point is to expand the pastry business.

Exactly how to expand the pastry business can't be explained in a sentence or two.

So, I need to let you know first.

Li Shimin's eyes lit up. "Zi An, setting aside the rest, could you explain in a little more detail how to implement this pilot of labor-to-land redistribution?"

As for how to expand the pastry business, he didn't really understand, but guessed it had to do with trade; this could later be left entirely to Chen Yan and Li Chengqian.

Compared to the first point, Li Shimin was clearly more interested in implementing the pilot of labor-to-land redistribution.

His Majesty requests it, so naturally there's no problem.

Chen Yan readily agreed, then said: "The pilot of labor-to-land redistribution can first push for monetizing tax revenue, converting more of the corvée labor and in-kind tax into monetary collection, no longer limited to grain."

This would reduce opportunities for officials to embezzle during in-kind tax collection, lessen harassment of farmers during taxation, and, more importantly, promote commodity economy development, letting farmers participate more in market activities, increase cash income, and boost risk resistance ability.

Economic development, risk resistance ability!

Hearing these two familiar terms, Li Shimin and Li Chengqian suddenly understood.

Secondly, using the government or Cheng Qianxiong's status as crown prince, we could establish a money shop to provide farmers with low-interest grain seeds, tools, and monetary loans, so they would no longer suffer from the landlords' exploitative nine-out-of-thirteen usury.

Implement 'certificate-based land transactions' along with a progressive land tax.

The specific procedure is: all land transactions must be registered at the government, obtain a 'red contract', and pay the transaction fee. Private deals without a deed are illegal; the court may reclaim the land. This greatly raises the difficulty and cost of annexation.

As for the progressive tax system, it stipulates that each person's quota of permanent fields and allocated fields is the 'tax-exempt amount'.

Land exceeding this quota is taxed at a graduated rate: the more land one owns, the higher the rate.

With this combination of measures, everyone will have to consider whether annexing farmers' land is worthwhile.

Du Gou carefully calculated and said, "This would greatly increase the cost of annexing farmers' land, and even possibly lead to losses as the annexed land grows."

This...

How exactly did you come up with this idea?

No! Yuan Tiangang suddenly said, "It's not that simple; setting aside the difficulty of implementing this system, just consider what if local magnates hide their land and underreport acreage, or fail to register large holdings under their own names?"

You should know that money can be spent someday, but land can be passed down to descendants forever; people on this land have an innate attachment to land that is not ordinary.

Hearing this, everyone nodded in agreement, clearly in accord.

Chen Yan patiently explained, "So hasn't the first point already taken effect?"

We need to divert everyone's attention away from that bit of land.

I see. Yuan Tiangang didn't ask further.

Because Chen Yan hadn't elaborated on the first point, he wasn't particularly familiar with it.

Next, Li Chengqian curiously asked, "Zi Anxiong, you just said we could establish a money shop using the government or my status as crown prince; how exactly would we do that?"

Well. Chen Yan clicked his tongue, "There's plenty to say about that. If backed by the government or your crown prince status, not only could we prevent the populace from being exploited by usury, but more importantly, the money shop could gather wealth from all under heaven and reap enormous profits!"

Note, it's enormous profit—profit you cannot imagine!

Ah?

Hearing Chen Yan speak so seriously, Li Chengqian felt a bit dazed.

Isn't it just a money shop to help the people avoid usury?

Where would the enormous profit come from?

After hearing this, Li Shimin's interest piqued: "How does it compare to your future library selling books, or to white wax?"

Your Majesty, you greatly underestimate a money shop backed by the crown prince. Chen Yan chuckled helplessly, "Even if white wax trade expanded tenfold, before the money shop it would be like a frog in a well gazing at the moon."

The two cannot be placed together for comparison.

So it makes money that way? Li Shimin's eyes widened; he has always been keen on making money.

After all, he used to be extremely poor.

But he soon calmed down, asking puzzledly, "Didn't you just say this money shop is to help the people?"

Since it's meant to help the people, it still does low-interest lending.

How then to make money?

Li Chengqian sat upright; Li Shimin's question was exactly what he also wanted to ask.

Chen Yan spoke slowly and deliberately: "The money shop I speak of differs from traditional ones."

For example, Cheng Qianxiong, as crown prince, could set up a money shop in Weinan County offering loan services with very low interest, not exceeding ten percent per year.

And right now, Du Gou, you happen to be short of funds and need a loan; would you be willing to borrow from Cheng Qianxiong's money shop?

Willing. Du Gou mused.

Why would you be willing?

Naturally because the money shop has the crown prince's backing. Du Gou immediately replied, "Besides, the interest is still low; why wouldn't I go?"

Surely better than borrowing from landlords?

Excellent! Chen Yan turned to Yuan Tiangang, "National Teacher, it's the same money shop; you have a lot of idle cash gathering dust in your home's basement. If Cheng Qianxiong's money shop offered deposit services—for instance, you deposit a string of cash there and the shop gives you half a percent interest—"

That is, depositing one string of cash yields fifty cash coins per year for free; depositing ten thousand strings yields five hundred strings per year for free. Moreover, this money can be withdrawn 'anytime', anywhere.

Would you be willing to deposit your money in Cheng Qianxiong's money shop?

By this point, everyone had vaguely come to understand Chen Yan's meaning.

Yuan Tiangang pondered and said: "You just emphasized 'at any time' and 'anywhere'; this 'anytime, anywhere', may I understand it as, I deposited money this morning at the Money Shop in Weinan County."

The next day, I went to the South of the River, and the South of the River also has such a Money Shop.

Can I withdraw money immediately from the Money Shop in the South of the River?

Chen Yan chuckled, his tone rather light, and said: "It seems the National Teacher understood my meaning."

"......"