Chapter 389: Republic of China: Starting from the First Class of Whampoa Chapter 399 Save National Public Debt

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Protagonist:

Lv Muzhi

Xinyang West, Communications Bank Building.

This concrete building was the most imposing structure in Xinyang City; the bronze lions at the entrance were polished to a shine, and two guards from the Ministry of Finance stood ramrod straight at the door.

For gentry like Wang Baiwan and Maode Tang, this place was a fine refuge and a spot frequented by the wealthy.

No matter how fierce Chen Minren's gendarmerie was, they dared not casually barge into the Communications Bank's turf to arrest people.

The reason was simple: the backer of the Communications Bank was none other than Minister of Finance Kong Xiangxi.

Almost all wartime fiscal and financial affairs were controlled by him.

And Kong Xiangxi's wife was Lady Song's elder sister.

Thus, Kong Xiangxi and the old man were brothers-in-law, with an in-law relationship between the two sides.

At this moment, in the VIP conference room on the third floor of the bank, smoke hung thick in the air.

Wang Baiwan sat on a leather sofa, turning two walnuts in his hand.

"Gentlemen, Lv Wei Yue comes with ill intent; if we don't do something soon, there will be no livelihood for us in Xinyang anymore."

Maode Tang took a puff from his pipe and said with a worried expression:

"Boss Wang, what do you suggest? With three hundred thousand Youth Army soldiers, judging from their performance at that banquet, I don't think even Chairman Chiang can suppress Lv Wei Yue; our handful of household guards and hired thugs aren't even enough to fill the gaps between their teeth."

Wang Baiwan slapped the walnut onto the table.

"Of course we can't clash head-on; we push those commoners below to the front, and we watch the show from behind, seeing what Lv Wei Yue will do!"

"I have already contacted the neighborhood security chief of eighteen townships below, as well as those wealthy households."

"In a while, let them stage a 'jiao nong'!"

The surrounding landlords' eyes lit up at the sound.

The so-called jiao nong meant piling farm tools at the county government's entrance, with farmers collectively striking, refusing to plant their land, and seeing what you could eat.

"Lv Wei Yue and Chen Minren want to collect grain? We'll incite the farmers to leave their fields fallow, or simply lie at home."

"The law does not punish the masses; I don't believe Chen Minren dares to arrest and execute several thousand or tens of thousands of mud legs!"

"By then, no one will plant grain, no one will pay taxes; I'd like to see how your Lv Muzhi launches a counteroffensive in North China, and how he explains himself to the old man!"

The gentry listened with beaming faces, all giving thumbs up and praising Wang Baiwan's brilliance.

Maode Tang thought the plan was feasible: "Those farmers below, as long as I offer them some benefits, they will listen to me; I think, using jiao nong to pressure Chen Minren is indeed feasible!"

Just then, the conference room door was pushed open.

A middle-aged man in a suit with a pompadour walked in, followed by two waiters carrying trays.

This man was Kong Lingda, manager of the Bank of Communications Xinyang Branch, a member of the Kong family who managed this branch.

"Manager Kong!"

"Mr. Kong is here!"

Wang Baiwan and the others hurriedly stood up, smiling obsequiously.

Kong Lingda waved his hand, gesturing for everyone to sit, and he himself took the main seat.

"What, driven desperate by that Chen lunatic?"

Wang Baiwan sighed: "Mr. Kong, you don't know; that Chen Minren is nothing but a bandit; our days are bitter."

Kong Lingda pushed his gold-rimmed glasses, not wanting to get involved in this mess.

The people before him were actually his clients and partners.

"Enough, I can't manage your affairs; I called everyone here today because our deal has come again, as usual, I'll look after you old friends first."

Hearing there was a deal, the gentry present all pricked up their ears.

Kong Lingda took a sip of coffee and said slowly:

"The first item is this year's farmer loan."

"The Japanese Army was driven back, and the upper level allocated five million legal tender to Henan South as agricultural assistance loans; allocated to our Xinyang, this time there is one million."

The farmer loan Kong Lingda spoke of was allocated by the central government, loaned to farmers to buy seeds and farm tools, with monthly interest of eight li, not considered high, belonging to a financial policy to aid wartime production.

Compared to private high-interest loans, it was already a welfare policy.

But in concrete implementation, it was not so.

Wang Baiwan understood immediately and immediately took up the thread: "Mr. Kong, what do those mud legs know? Loan to them, better to loan directly to us."

Kong Lingda laughed: "Boss Wang is a discerning man."

"So, still the old rule."

"This one million allocated to Xinyang, our branch will loan directly to those present, with the nominal interest still at eight li."

"As for whether you loan it back to tenants to buy seeds, or loan it to them to buy grain, that's your business; I don't participate."

"How much interest, you decide yourselves; but when you pay me back, I want to see two fen of interest handed over to me."

Maode Tang was so excited his beard trembled: "Mr. Kong is wise! Those mud legs have no money; we look down on them, lend to them, collect four, five, six fen interest, and they'll thank us!"

"Great! With this money, I can buy several hundred more mu of land!"

"Liu San's family has financial difficulties this year; those twenty mu of fertile land at his home will probably end up in my hands! Heh heh heh!"

"Right, Liu Seriously ill, not enough medicine money; you lend him another high-interest loan to 'help' him!"

In the whole conference room, the landlords and wealthy households laughed until they couldn't close their mouths.

The central government's agricultural assistance loan, after going in and out like this, by the time it reached the farmers who urgently needed money, became a high-interest loan.

The Kong Family's bank profits from both ends, with no risk whatsoever.

The landlords charge usury, helping the bank ruthlessly exploit those miserable farmers.

Kong Lingda saw that everyone's appetite had been whetted, so he waved his hand.

The waiter lifted the red cloth from the tray, revealing stacks of beautifully printed bonds.

The bonds bore a simple sketch of a Youth Army soldier charging with a rifle, stamped below with the great seals of the Central Bank and the Ministry of Finance.

"There is another deal here, a truly great deal!"

"This is the latest 'War of Resistance Bonds,' issued on the strength of the Youth Army's great victory at Huangchuan to raise war funds for the Central Government."

"This thing is a hot commodity; only those above can get first dibs."

Kong Lingda picked up a bond, flicked the paper, and it made a crisp sound.

Kong Lingda's War of Resistance Bonds came in face values of five yuan, ten yuan, fifty, and hundreds or thousands.

Some buy these bonds out of patriotism, spending money to save the nation.

Some buy these bonds for investment purposes; when the bonds mature, they can collect principal plus interest, a bit higher than bank interest.

Others are utterly inhuman, speculating wildly on the National Salvation Bonds and making a killing from the nation's calamity.

The Kong Family and the Song Family, enjoying priority access, used their power and influence to get first dibs on bonds at original or even low prices, then after some speculation sold them off at high prices, pocketing the difference—another huge sum of income.

"The price I'm giving you old friends may not be low, but it is a preferential price."

"Take them back, then resell them to the people around you; how much you sell for is up to your own ability."

"As long as the Youth Army keeps winning battles, investors will feel there is hope, and this thing will be worth as much as gold!"

This isn't making money—it's outright robbery!

"Mr. Kong, I'll subscribe for five thousand!"

"I'll take three thousand!"

The other landlords were not to be outdone, speaking up one after another to subscribe.

"Give me ten thousand!"

"I'll take fifty thousand!"

A room full of people who had just been conspiring to strike and resist taxes were now discussing usury to drain the farmers' blood, and were preparing to profit from the nation's calamity by speculating on bonds.

Each one of them could rightly be called a national parasite.

Even if evil ghosts from hell were holding a meeting, I fear it would be no more than this.