Chapter 531: Conversion

"What fortune for Dong Mou, to meet the general who fought the Bandit Slaves in formation battle — a blessing of three lifetimes, a blessing of three lifetimes!"

In a residence south of Tongzhou city, a middle-aged man in a yellow-green cotton robe stood before Pang Yu. His face was utterly vulgar, tinged with a rustic air, yet the look in his eyes as he regarded people was utterly sincere. This was Dong Xinkui, the famed fixer who moved through the official circles of the Capital. Not an official himself, he was supremely skilled at handling all manner of wealth and assets for Capital Officials, and was quite adept at navigating human affairs. Over the years, he had earned considerable renown in Capital officialdom.

Pang Yu gave a hearty laugh. "Mr. Dong flatters me. My men in the Capital have troubled Mr. Dong greatly. I should have visited to offer thanks in person, but the Ministry of War would not permit me entry into the Capital. We military men find it inconvenient to move about freely, so I could only trouble Mr. Dong to make the trip to Tongzhou."

"How dare you speak of trouble! To have the good fortune of meeting the General — never mind one trip to Tongzhou, I would go even to Nantongzhou. Besides, Dong Mou has long had some doubts and wishes to consult the General."

Pang Yu said politely, "Mr. Dong, please speak."

"The General must realize that I have many friends in the Capital. In truth, they all inquire with me about the Silver Bank. These Capital Officials are all Circulating Officials, hailing from every region. But with turmoil everywhere these days, only the South Side remains relatively peaceful. Many Capital Officials wish to head south after retiring from office, and not a few have come asking about the Silver Bank. On behalf of certain Excellencies in the Capital, Dong Mou asks the General: for sums as vast as hundreds of thousands or even a million, how can one guarantee that when the Silver Note reaches the south, it can still be exchanged for its full value in silver?" Dong Xinkui looked at Pang Yu with deference. "Dong Mou certainly trusts Your Excellency, but the hundred officials of the Capital will always have some misgivings. After all, even the smallest deposit is ten thousand taels. Dong Mou first aligns his words with the General's, so as to set their minds at ease."

Pang Yu smiled, utterly unconcerned. "The silver of these Excellencies was not blown in by the Wind. It was earned through ten years of bitter study by the cold window, passing every hurdle and defeating every rival. To deposit that silver and receive in return a Silver Note — which, in the end, is just a sheet of paper, and for no small sum at that — it is only human nature to want things made clear. Mr. Dong's forthrightness is most convenient."

Dong Xinkui hurriedly bowed with courtesy. Pang Yu studied the man carefully once more. Dong Xinkui was somewhat portly, and the cotton robe made him appear rather stout, though it looked exceedingly warm.

"The Excellencies' chief worry is likely that the Silver Bank will abscond, leaving the paper in their hands worthless, with no place to exchange it for silver."

Dong Xinkui's mouth repeatedly uttered that he would not dare think so. Pang Yu waved a hand. "The plainer the words, the better. I opened this Silver Bank not to swallow anyone's silver, but to use silver to earn silver, and then share the profit with the Excellencies in the form of interest. It is absolutely not a scheme to bundle it up and flee. As you, sir, have said: if it were ten million taels of silver, the weight alone would be seven hundred thousand jin. If I were to embezzle it, every honored guest who deposited silver would be either rich or noble — not one easy to deal with. If I seized their silver like that, they would never let the matter rest. Where could Pang Mou flee, dragging seven hundred thousand jin of silver? I would not dare stop to buy houses and beautiful women. Would I spend my life fleeing to the ends of the earth with a pile of silver I could never spend?"

Dong Xinkui shook his head repeatedly and said with earnest tone, "Absolutely not. Yet this humble one still has one question. Whether it is the Shanxi draft banks, the Jiangnan silver banks, or the Capital silver benches, Silver Notes and Flying Tickets have always required the customer to pay silver to the house. Official Loans, when extended, also pay interest to the house. Never has there been a case of depositing silver and receiving interest. The Capital is a place that consumes gold; it is never short of silver. If the Excellencies truly do deposit, the sum gathered could well be no less than ten million. If the General were to accept this silver, the annual interest would be at least five hundred thousand. Over five years, that is two and a half million taels. On behalf of those Excellencies, Dong Mou asks the General to clarify: from what business can one earn so much silver? Dong Mou trusts Your Excellency, it is only those in the Capital…"

Pang Yu waved a hand. "It is only right to explain clearly to Mr. Dong. The destination of this silver is business on the Great River. I have established Great River Shipping Companies at every harbor along the river. From Gucheng to Wuchang, and from Wuchang downstream — Jiujiang, Leigang, Anqing, Zongyang, Hezhou, Chaohu, Wuhu, Digang, Pukou — at the harbors and on the river in all these places, my word carries weight. To speak frankly with you, sir, the business on the Great River far surpasses that on the Grand Canal. The silver that passes through each year is in the millions. The silver from the grain trade alone exceeds ten million taels. In the past, without sufficient silver on hand, we could only watch others conduct certain business. If the principal is sufficient, naturally one earns more. This river business I conduct, no other house can do. It is because I can earn this money on the river that I can offer such interest. No other house can offer it."

Pang Yu broke the Anqing river section into three parts, rattling off a string of place names. Dong Xinkui, a northerner, suffered a momentary system crash. In truth, Pang Yu had not mentioned any specific business, but Dong Xinkui knew the business on the Grand Canal was vast, so it stood to reason that the Great River business could make money.

Before he could sort out his thoughts, Pang Yu gave him no time to scrutinize and continued, "I will also be direct with Mr. Dong. If one issues a Flying Ticket south through another money shop, not only is there no interest, but for every hundred taels, one must pay the Silver Bank a fee ranging from five to ten taels. To deposit silver and receive interest — only the Great River Silver Bank alone does this. To accept interest-bearing deposits and handle such vast sums as ten million taels — again, only the Great River Silver Bank alone can do this. As for the VIP treatment mentioned earlier, other silver banks would not even dare to imagine it."

Dong Xinkui clapped his hands. "That is exactly what this humble one told them. It was some Capital Officials who insisted I ask once more. It is all the same, really."

Pang Yu did not mind. Feng Quan had asked these same questions; it was just that Dong Xinkui asked more directly.

Feng Quan and Dong Xinkui were both old hands who moved with ease through Capital officialdom. One's circle was the inner court eunuchs, the other's was the Capital Officials. What these two cultivated was their credit within official circles. At present, the Great River Silver Bank had a name in Nanjing and, relying on the Jiangnan Times, was gradually gaining renown along the Great River, but it had little recognition in the Capital. These elder eunuchs and Capital Officials might know Pang Yu's reputation, but to entrust such vast family fortunes required far more than just Pang Yu and the Silver Bank. At this moment, they had to rely on the credit Feng Quan and Dong Xinkui had built over decades.

The commission Pang Yu gave Feng Quan and Dong Xinkui was payment for their credit, a temporary loan of that credit for Pang Yu's use. For two men who had meticulously built their reputations, no amount of caution was excessive.

Thinking of this, Pang Yu said to Dong Xinkui with sincerity, "My opinion is to invite Mr. Dong to return to Nanjing with me on this trip, or perhaps travel along the river to see the Shipping Companies and Silver Banks in each place, and see for yourself whether my Flag Orders carry weight on the river. If we move quickly, the round trip can be done in two or three months. Seeing with one's own eyes is most reliable."

"I trust the General." Dong Xinkui nodded repeatedly, though it was impossible to tell whether he actually intended to go or not.

The terms Pang Yu offered Dong Xinkui were the same as those for Feng Quan. Because costs in the Capital were high, the initial focus was on high-net-worth clients. The Silver Bank mainly promoted Silver Notes. Three-year and five-year deposits each carried a commission for Dong Xinkui. Although these were one-time payments, given the potential total sum from the Capital, it was still an enormous amount. In the past, handling silver had been inconvenient for Dong Xinkui; each time he had to dispatch guards to escort it. Now, it was effectively outsourced to Pang Yu. He reduced his own risk and toil, and could also earn a generous commission. Thus, for him, the only concern was the safety of the deposits. So even if he asked a few more questions, Pang Yu remained extremely patient.

Dong Xinkui lowered his head in thought for a moment, then said, "In General Pang's VIP Service, might one more item be added?"

"Mr. Dong, please speak."

"The hundred officials of the Capital differ somewhat from the elder eunuchs of the palace. The hundred officials come from all over the country, and their journeys home are far more distant. Silver is only one aspect; there are also quite a few household goods…"

Pang Yu understood immediately. He meant those officials' antiques, woodwork, Porcelain, and the like — many of them large pieces, very difficult to transport.

Dong Xinkui considered his phrasing. "Perhaps they are not particularly valuable items, just things one is accustomed to using daily. To simply abandon them is unbearable. If, upon retiring, one takes them along when leaving the Capital, a great train of carts and wagons is too conspicuous and unseemly. Those who know understand they are household goods; those who don't will spread wild rumors of dozens of cartloads of wealth. Not only is it an eyesore, it also harms the Excellencies' reputations. It would be best if they could be transported away first."

Pang Yu gave an "Oh." It seemed Dong Xinkui intended to bundle the transport business together and hand it to Pang Yu, content to be a pure intermediary himself.

"I can take responsibility for arranging the Carriages and manpower. However, for those valuable and fragile items, my subordinates lack experience. It would be best if the Excellencies dispatched their own household members to escort them; we will be responsible for Protection."

Dong Xinkui agreed repeatedly. He then discussed some further details with Pang Yu, and the cooperative relationship between the two sides was essentially settled.

This residence was arranged by Dong Xinkui for Pang Yu's temporary use. Pang Yu was very patient with Dong Xinkui and his manner was very cordial. Meeting in Tongzhou was also far more convenient than meeting Feng Quan. On this trip, Dong Xinkui was not only meeting Pang Yu; he also had to see people from the Liao Garrison and Xuan-Da, presumably also commissioned to handle matters for them in the Capital.

With the broad strokes largely settled, Dong Xinkui rose to take his leave. Pang Yu did not detain him. The king-rallying army was stationed in Tongzhou, and Gao Qiqian also had quite a few Camp Heads nearby. Now that the Qing army had withdrawn beyond the border, the court was about to investigate culpability for the military operations. There were certainly many seeking Dong Xinkui to pull strings. Pang Yu possessed first-class Military Merits and had absolutely no worries on this front, so he had ample time to handle his own affairs.

As several people saw him to the gate, Dong Xinkui suddenly stopped and said, "I have just thought of another matter. Previously, Brother Zhang mentioned that the Nanjing Great River Silver Bank is magnificent, so much so that idlers from nearby prefectures and counties make special trips just to admire it. I would advise the General: this branch in the Capital… must be ordinary. It is best not to be ostentatious."

Pang Yu hesitated for a moment, then nodded. Dong Xinkui bowed to each person in farewell and hurried off in the direction of City East.

Pang Ding, standing nearby, said in a low voice, "Young Master, setting the Capital's Silver Notes at five percent interest is far less than in Jiangnan."

"The Capital is where power gathers, and naturally where money gathers. What they trade is the highest level of power, so the sums of capital involved are naturally enormous. What they need most urgently is not interest, but the safety of their persons and wealth. Whether the interest is five percent or ten percent makes little difference to them. If they want higher interest, they can exchange for Banknotes. In the future, deposit interest rates everywhere must not exceed those of Banknotes; otherwise, the Banknotes cannot be issued."

"Young Master, if the elder eunuchs and Capital Officials all deposit their silver in our Silver Bank, then in the future, no one will dare meddle with the Silver Bank's affairs."

"I can also maintain a modest force near the Capital, nominally for escort and transport duties. At the very least, the depositing elder eunuchs and Capital Officials will grant us this convenience. Another key point here is Tianjin. The water route must pass through Tianjin. Once the deposits reach a certain scale, they will naturally help me secure the Tianjin Naval Camp. Then our footing in the north will be firm."

Pang Ding shook his head. "In the past, when the Young Master spoke of credit, I never understood what use it had. Now, the Young Master's reputation for winning battles is the credit that draws them to deposit silver. They believe the Anqing Army can fight, and unlike Zuo Liangyu, is not savage. The place you provide is the safest. The silver is truly coming."

Pang Yu said with certainty, "So the two battles at Tongcheng Post and Yongding River have brought us at least three million taels. This money will not be touched for three to five years. Using this silver as a guarantee, I can easily issue ten million taels in Banknotes. You figure out how many troops that can support."

Pang Ding turned his head to stare at Pang Yu, stunned. "Calculated this way, will the Jurchen Slaves ultimately be defeated at the hands of the palace eunuchs and the hundred officials?"

Pang Yu burst into loud laughter and clapped Pang Ding on the shoulder. "That Yoto alone will bring us three million taels, and I can then issue ten million in Banknotes. So perhaps the Eastern Invaders will be defeated at Yoto's hands. Credit truly can be converted into money."