Chapter 408: Bargaining

"The official loans are issued by a separate silver bank, unrelated to our Great River Silver Bank. That way, when it comes time to collect debts and apply pressure, things will be easier. Zhang Pu controls the imperial examinations, so we can fish in troubled waters. Through these official loans, we can place our own people into officialdom."

In the silver bank's meeting room, only Pang Yu and Liu Ruogu remained. Arranging the bank's operational matters did not require Zhou Yueru and Jiang Fan to sit in.

Liu Ruogu nodded and said, "The White Gate Silver Bank handling the official loans has already issued ordinary official loans to eleven people. There are another five prepared for special lending—two Provincial Graduate and three Licentiate. They previously racked up gambling debts at the Baishun Halls in Nanjing and Suzhou. All the paperwork is in order; the longer the time, the more they owe. Once they pass the Metropolitan Exam, they'll have no choice but to obey you, sir."

Pang Yu took the list and glanced at it. No names stood out to him. These people, capable of running up debts at Baishun Hall, were certainly gamblers in the original history, and most likely never passed the exams in the end. But now, that might not be the case.

"The Nanzhili Provincial Examination is controlled by the Restoration Society. The matter of these three Licentiate is easy to handle, but don't go directly to Wu Changshi for help. Make a detour through Ruan Dacheng to reach Zhang Pu. Don't let anyone know we're the ones making the request. Do the same for the two Provincial Graduate."

Liu Ruogu did not ask Pang Yu how he would use these people later. But planting eyes and ears in the imperial court was something that absolutely could not be known to others, so it had to be handled by bypassing Ruan Dacheng.

Pang Yu frowned slightly and thought for a moment before saying, "The silver bank has always done well, but deposit accumulation is still too slow. Now that the Jiangnan Times is distributed as far as the Grand Canal, more people know about us. The bank's operations must also change. From now on, we'll follow new rules. Withdrawals require collateral. When the Anqing Battalion draws silver from the bank, it will be under the name of the Great River Shipping Company, with the collateral being the shipping company's annual revenue. They must also pay annual interest. This way, the bank's accounts will show a profit. Publish this every three months in the Jiangnan Times. Let everyone know the bank can make money, and that depositing silver means sharing in the bank's profits."

Liu Ruogu thought it over and said, "Right now, the annual interest on deposits is set at ten percent. If we then lend it to the Great River Shipping Company, that annual interest rate becomes very high."

"This is paying ourselves. Whether it's fifteen or twenty percent doesn't matter. The accounts must look good. Put the silver from Susong in there as well. Currently, the bank holds four million three hundred thousand taels in deposits, most of which requires interest payments. These are all the bank's liabilities. The annual interest alone is over three hundred thousand taels. If the bank has no clear path to profitability, others will feel uneasy."

"But the shipping company can't earn several hundred thousand taels either..."

Pang Yu waved his hand dismissively. "Few people truly understand matters on the river. With such a long stretch of the Great River, outsiders have even less ability to investigate in detail. You can fabricate some stories. The Anqing Naval Force controls the river surface. You can say the Great River Shipping Company monopolizes business on the river. In the future, we can add shipping insurance. And the Canal Gang's operations at the various docks are also business—all of it can be counted as business. Lump it all under the Great River Shipping Company, as long as it looks profitable. A ten percent annual return is effortless profit. People are generally more optimistic about profits and overlook risks. As long as there's a reason, they will come to deposit silver."

"This humble one understands. But the shipping company truly cannot earn that much silver. In the end, it's still the bank paying the annual interest."

"As long as people keep coming to deposit, the bank can afford the annual interest."

Liu Ruogu hesitated for a long while before finally asking, "But what if one day, deposits dwindle..."

Pang Yu smiled upon hearing this. After a moment, he said, "If that day truly comes, it means we can no longer sustain our debts. That will be the time to settle accounts with all parties. As for what exactly we'll use to settle them, this official has already given the answer earlier."

Liu Ruogu didn't catch on for a moment. Pang Yu looked at him and smiled. "We haven't even done business in the Capital yet. Private deposits are far from exhausted. Right now, the bank only needs to focus on two things: first, increasing deposits; second, increasing collateral. Don't worry for now. Both of these will be delivered to us by others."

Outside a small building by the riverbank at Yu Cotton Lou along the Qinhuai River, Pang Yu stood at the door. Watching the two men enter, he cupped his hands in greeting. "Greetings, Mr. Fang."

The one in front was precisely Fang Kongzhao, with Fang Yizhi following behind. Pang Yu sized them up. Fang Yizhi was dressed in a short outfit, a sword at his waist, exuding a spirited and heroic air.

He first exchanged formal greetings with Pang Yu. Pang Yu smiled at him and said, "Mizhi, did you come on horseback?"

"I rode here together with my father. My riding skills were also taught by my father." Fang Yizhi's face was full of excitement. "This time, I will lead the Fang family's sons to accompany my father to his post in Huguang. Quelling the bandit menace has been my long-cherished wish for many years. When we are on the battlefield thereafter, I ask General Pang not to be stingy with your guidance."

During the Tongcheng civil unrest, Pang Yu had already learned that many of the Fang family's sons practiced martial arts. He glanced at Fang Kongzhao. This old acquaintance did not express much, merely smiling and nodding in confirmation. Only then did Pang Yu politely say to Fang Yizhi, "Mr. Fang's family learning runs deep. Mizhi is already well-versed in both civil and military affairs. I absolutely dare not claim to offer guidance. But since we will both be campaigning in Huguang, mutual support is certainly assured."

Pang Yu turned sideways and extended a hand inward. Wine and dishes had already been laid out in the main hall. Fang Kongzhao slowly spoke, "Zhi'er, wait outside."

With that, he strode directly into the main hall. Liu Shenzhi, whom Pang Yu had called to keep company, saw this and quickly walked out as well, standing together with Fang Yizhi.

Pang Yu followed behind Fang Kongzhao into the room, casually pulling the door leaf closed behind him. Today, Pang Yu had ostensibly invited Fang Yizhi to a banquet, but Fang Kongzhao's appearance was not unexpected. In truth, both men knew that Pang Yu had invited Fang Kongzhao.

After Pang Yu took his seat, Fang Kongzhao said, "General Pang is a fellow townsman of this official and an old acquaintance of many years. There is no need for excessive words between us. This official will soon take up his post in Huguang and will certainly rely heavily on General Pang. I have come specifically to discuss matters with the General in detail."

Pang Yu carefully observed him. Fang Kongzhao was assuming the post of Grand Coordinator of an entire province, and an important one in the Central Plains' heartland at that. Fang Kongzhao's bearing and speech carried greater authority. But Pang Yu currently dealt frequently with officials of the Grand Coordinator rank. He was especially familiar with Yu Yinggui, who had previously held this position, and knew the many difficulties a Grand Coordinator faced. So he would not be cowed by Fang Kongzhao's presence.

When he spoke now, he was not as polite as he had been in front of Fang Yizhi. "Sir Fang, as you leave to take up your post in Huguang, this fellow townsman also shares in the reflected glory. It is I, your subordinate, who truly wishes to rely on you, sir. Whatever assistance I can provide, I will certainly provide. But Huguang is a core region; currently, there are many troops and many bandits. A lone guest army like mine going there—I imagine you, sir, have heard something of the circumstances. My returning to Anqing at this time to marry is not without reason."

Fang Kongzhao smiled faintly. He clearly had no interest in Pang Yu's wedding.

Pang Yu continued, "This reason is, in fact, somewhat connected to the previous Huguang Grand Coordinator. A guest army like mine faces too many constraints. Any talk of assistance is likely limited to maneuvering within a very small space. It is not that your subordinate is unwilling. Moreover, at present, Sir Xiong's pacification strategy is showing considerable results. Huguang is a land of peace. A military man like your subordinate is probably of little use."

The polite refusal in his words was obvious. But Fang Kongzhao already understood Pang Yu quite well. He naturally would not think this was Pang Yu's true meaning. He paused in thought for a moment, then said, "Then what is General Pang's assessment of Zhang Xianzhong and Liu Guoneng's two camps?"

Pang Yu did not answer. He merely stared at the stone floor in front of him and said, "Might I first hear Sir Fang's esteemed opinion?"

"Zhang Xianzhong will certainly rebel." Fang Kongzhao said without the slightest hesitation. "The day the troops guarding him leave for elsewhere will be the day that Eighth Bandit rebels again."

Pang Yu's gaze returned to Fang Kongzhao's face. "Sir Fang's insight is keen. But Sir Xiong oversees five provinces, and he does not think so. With the lesson of Yu Yinggui's precedent, I ask you, sir, to take heed."

Fang Kongzhao nodded. He stood up and slowly took two steps, looking out the window at the Qinhuai River scenery. "What Sir Xiong wants is not the Pacification Company itself, but peace in the Central Plains. For this official to take precautions and guard against trouble before it happens, in order to maintain this state of peace—that is precisely what we subordinates ought to do. It does not run counter to Sir Xiong's intentions."

Pang Yu smiled and cupped his hands. "Sir Fang's talent and insight put your subordinate to shame."

"Regarding this situation of inevitable rebellion, does General Pang have a plan?"

Pang Yu heaved a deep sigh, putting on a look of utter disheartenment. "I have grown completely disheartened with the matter of bandit suppression. Once I return to Gucheng, I intend to petition the Ministry of War to lead my battalion back to Anqing. If I can just defend our homeland, that will suffice. I no longer wish to concern myself with Huguang affairs."

This was naturally not the outcome Fang Kongzhao wanted. He had come today precisely in the hope of negotiating terms with Pang Yu, to secure a strong, usable military force in Huguang. Fang Kongzhao was not dealing with Pang Yu for the first time. He did not even entertain a shred of doubt about Pang Yu's performance.

Fang Kongzhao said calmly, "The General rose from humble beginnings, quelled the Tongcheng unrest to rescue Jiangpu, fought at Chuzhou and triumphed at Susong. You possess the chivalrous spirit of a youth determined to save the realm. It is not for any particular superior officer. But for civil and military officials, some twists and turns are unavoidable; there is no need to take them to heart. Now that this official is appointed to Huguang, should any difficult matters arise, I can also help mediate."

Pang Yu stole a glance at Fang Kongzhao. He suddenly slammed the table and stood up, his face full of righteous indignation. "I was single-mindedly devoted to suppressing the bandits! I led thousands of Anqing sons seventeen hundred li in pursuit of the Western Camp. Over three hundred warhorses died of illness. Nearly a thousand officers and men were lost to wounds and sickness. And look at the treatment we received in return! I have utterly failed my soldiers."

Fang Kongzhao looked up at Pang Yu. He did indeed appear furious. Although Fang Kongzhao had not dealt extensively with Pang Yu, their interactions had involved the most intense conflicts, so he understood Pang Yu's true nature thoroughly.

He did not play along with Pang Yu's theatrics. He merely said impassively, "What does the General need this official's assistance with in Huguang?"

Pang Yu gave a dry cough. The anger on his face instantly dissipated. He moved two steps and personally poured tea for Fang Kongzhao. "The Anqing Battalion has always coordinated between land and water. Previously, Military Commander Yu permitted us to anchor at Wuchang, but we have no stationing rights on other rivers and waterways. Coordination is therefore not so smooth. Your subordinate is wholeheartedly devoted to killing bandits for the people of Huguang, yet must supply himself, which is extremely taxing. That is the source of my disheartenment."

Fang Kongzhao did not hesitate for a moment. "Along the Great River docks from Anqing to Wuchang, the Anqing Water Camp is permitted to select three locations for stationing. On the Han River, two locations are permitted."

The corner of Pang Yu's mouth twitched upward. He immediately put on a trace of worry again and said while pouring water, "There is also the matter of the Water Camp's provisions. If they must travel upstream from Anqing, it is time-consuming and laborious. Your subordinate's finances cannot support it."

Previously, Xiong Wencan had only mobilized Pang Yu's Land Battalion, with Huguang supplying its provisions. Although Yu Yinggui had permitted temporary anchorage at Wuchang, the Water Camp was still an unregistered entity and had always had to spend its own silver to buy provisions.

"I will give you provisions based on a troop strength of one thousand."

"Two thousand."

Fang Kongzhao frowned and paused for a moment. "Then you must have actual troops."

Pang Yu set down the ceramic teapot and looked at Fang Kongzhao with utter sincerity. "Sir Fang knows this humble one best. From the days of the Tongcheng Zhuang Squad, I have never eaten empty payrolls. One could say my sleeves are clean and my person upright. You may rest assured, sir. The Water Camp's troops will only be more, not less. They will certainly be actual troops with actual pay. Sir Fang can confidently provide provisions for two thousand."

"Two thousand it is." Fang Kongzhao clearly did not wish to quibble over such a minor matter. Huguang was a grain-producing region, and the Water Camp's station would be along the river, so transport losses were minimal. While provisions for two thousand men were not a small amount, they were not particularly difficult either.

Dealing with Fang Kongzhao was as smooth as ever. Pang Yu's expression began to soften.

Fang Kongzhao turned his head to look at Pang Yu. "Is that all?"

Pang Yu stared impassively at the tabletop. "Naturally, there is more. I want the post of Garrison Commander of Digang."

The room instantly fell silent. The current Garrison Commander of Digang was still Fang Heavy Armor—that old enemy from Yunji Temple. Digang controlled a long stretch of the river in the middle section. Pang Yu's naval forces had previously only operated on the Anqing section of the river. Most of the grain transport ships were engaged in shipping, and so-called river patrols were just a slogan. Now that they had begun patrolling in earnest, multiple clashes had already occurred.

The stretch of the Great River from Wuchang to Nanjing completely outside Pang Yu's control was precisely this section. Although Pang Yu had Wuhu as a supplement, Wuhu only had a Land Battalion. Even if he established a fleet on his own, patrolling the river would not be legitimate. This section of the river was very close to Nanjing and could easily attract the attention of the River Patrol Admiral, which would then become no small trouble.

Fang Kongzhao stared at Pang Yu for a long while, as if trying to guess Pang Yu's true intentions. But he wore a smile on his face. This kind of bargaining was the true face of Pang Squad Leader.

"Is the General merely seeking revenge against Heavy Armor?"

Pang Yu shook his head. "With my level of self-cultivation, I naturally would not pursue personal vendettas. I am always doing business. Otherwise, relying on that bit of military stipend silver from the court, I could never have raised these strong troops. Let alone aiding the campaign in Huguang, I couldn't even defend Anqing."

As long as Fang Heavy Armor recommends the top replacement, the subsequent steps are not difficult to manage, thus completely controlling the river surface of the middle reaches.

Fang Kongzhao did not agree at once. He looked at Pang Yu and said, "Then what can General Pang offer this official?"

"Four thousand foot and horse troops of the Huguang Land Battalion, two thousand of the Water Camp, thirty training officers for Lord Fang's Standard Battalion, and at every Water Camp mooring along the North Bank of the river, help Your Excellency drill six hundred Local Militia at each county seat. For other County Seats that require militia drilling, I can also dispatch personnel to assist. In this way, the localities will have the strength to defend, and with Your Excellency's Standard Battalion and the Anqing Battalion pursuing and exterminating in every direction, the Roving Bandits will have no place to shelter."

Fang Kongzhao sat steadily in the seat of honor, his eyes fixed straight ahead like a Buddha statue. Having had experience from the last transaction, Pang Yu also understood Fang Kongzhao very well: this new Grand Coordinator was by no means held back by brotherly affection for Fang Heavy Armor; he was merely weighing gains and losses.

"It goes beyond that. Maintaining an army comes down to nothing but Rations and Pay. So-called assistance can be mere polite words, costing not the slightest effort. But since I acknowledge Your Excellency as a fellow provincial, let us speak only plain truth." Pang Yu paused, then said, "My silver bank can lend Your Excellency's Standard Battalion 200,000 taels, with no annual interest required."

Fang Kongzhao looked up at Pang Yu with some surprise. Training officers and such were mere trifles, but even for a Grand Coordinator, two hundred thousand taels of silver was still an enormous sum, far exceeding the cost of raising a single strong battalion.

"Your Excellency can use this silver to purchase Armor and Weapons and Cannons from Anqing. Lord Fang is not one who practices Chi Vacancy Salary. With full rations, full pay, and fine troops and equipment, plus the training officers I send, Your Excellency's Standard Battalion will surely be the strongest army in Huguang."

A flicker passed through Fang Kongzhao's eyes. Pang Yu knew what he was about to ask, so he said directly, "On the Huguang section of the Great River, the Anqing Water Camp shall be permitted to clear the river, suppress bandits, and guard against the Roving Bandits."