Chapter 722: Dual-Track Layout

"Bank? What is this? I have never heard of it."

"Indeed, and this steamship as well; this court session has been completely bewildering."

"..."

As Zhao Xu mentioned banks, the ministers began to discuss it among themselves.

Zhao Xu smiled; core secrets like the steamship were, of course, known only to a few.

It was normal for the other ministers not to have heard of it.

As for banks, this was the first time he had mentioned them, and even Liu Fu and Yang He knew nothing about the matter.

So he said, "If I put it another way, you will understand: this bank is equivalent to a money shop."

"So it is a money shop."

"However, the name 'bank' is quite fitting."

"..."

The ministers whispered to one another.

"But why build four different banks?" Yang He asked at this moment.

Zhao Xu continued to explain, "Naturally, it is because each has its own function. From now on, the Royal Bank will be responsible for regulating and intervening in the industrial and commercial development of Da Song, possessing the right to mint currency. The three major banks and all banks that may be established in the future will be under the jurisdiction of the Royal Bank."

"The Commerce Bank will be responsible for lending money to merchants, supporting them in opening up trade abroad, and establishing trading firms and the like."

"Construction, as the name implies, is to lend money for various construction projects and workshops within Da Song, and the Agriculture Bank will naturally support agriculture." Zhao Xu explained in language they could understand as much as possible.

After the North Territory stabilized, the next step was to carry out comprehensive development.

Regarding the development model of Da Song, he insisted on having Prince's Mansion Industries as the core to lead the Da Song economy, with private industry and commerce as an auxiliary to invigorate the Da Song commercial environment, while simultaneously taking agriculture as the foundation.

The three major banks would provide loans to individuals participating in commerce, industry, and agriculture, supporting them in conducting commercial activities, establishing workshops, running farms, and planting cash crops.

Of course, this money would eventually require interest to be paid.

However, he would require the Royal Bank to set this interest very low to support the economic development of Da Song.

Besides this, he would also open up the production of some commercial goods to the public.

For example, allowing the establishment of private spinning mills, weaving mills, glass workshops, cement workshops, and other light industrial workshops.

However, to prevent the leakage of craftsmanship, when opening these workshops, he would incorporate patent rights into Da Song Law.

Only merchants who pay silver to purchase patents are allowed to use the corresponding craftsmanship to establish workshops; violators will face punishment.

"But if that is the case, won't the profits of Prince's Mansion Industries decrease?" Zhao Xu had explained.

At this time, Yang Feng showed a puzzled expression.

Upon hearing this, Yang He laughed and said, "The Duke of Yi is mistaken here. If a merchant wants to establish a workshop, they must pay silver to buy a patent, pay silver to buy land, build the workshop, and even buy a steam engine. Once they start production, the Imperial Court can also collect taxes from them. It seems the Prince's Mansion is at a disadvantage, but in fact, the Prince's Mansion is profiting."

He paused, then continued, "And with them stirring things up,

it is equivalent to revitalizing many workshops. Building a workshop requires cement, cement requires mining limestone, and one even needs to buy steam engines. One or two such workshops would be fine, but if every prefecture, commandery, and county in Da Song has them, the orders for steam engine workshops will be overwhelming. We will need more steam engine workshops, more cement workshops, and Da Song industry will also be stimulated and develop greatly..."

Yang He spoke with great enthusiasm.

He specialized in commerce and trade at the Government Affairs Division, so he naturally understood the policies Zhao Xu was about to implement very well.

Yang Feng shook his head, still only half-understanding. He said, "Since coming to Yanzhou, this old minister truly feels like I have become a relic."

The ministers who had come from Jinling behind him felt the same way.

Originally, they had been somewhat unconvinced by this group of officials in Yanzhou and by Yan Wang.

But after living in Yanzhou day by day, they finally understood that without Yan Wang and the officials under his command, this Yanzhou could never have achieved what it had today.

Thus, they gradually became yes-men; whatever Yan Wang and his officials said was the truth, and speaking up only exposed their own ignorance.

Even the Emperor, Zhao Heng, had lost his temper toward his ninth son after these days.

When chatting with them, he had once said that in the world today, only Yan Wang could eliminate the powerful clans and unify the world.

"The Duke of Yi need not belittle himself; you can understand a thing or two about these things by going to the Government Academy," Zhao Xu smiled.

Then, he turned to look at Liu Fu and Yang He, and had Xu Lie hand a booklet to the two of them. "This contains the specific duties and organizational structure of the four major banks, as well as the plan for the subsequent industrial and commercial development of Da Song. You just need to strictly execute it according to this."

This was the economic development blueprint he had compiled during his spare time at night.

If executed, various types of workshops would blossom all over Jiangbei.

Relying on the common people to fight wars, developing the economy also requires the active participation of the common people.

Otherwise, with only Prince's Mansion Industries, industry would be like a stagnant pool of water.

Once private industry and commerce become active, the industrial output value of Jiangbei will rise rapidly.

And the increase in industrial output value will bring about an abundance of material goods.

The living standards of the common people will naturally rise with the tide.

At the same time, workshops will also provide a large number of jobs, allowing the common people to have an extra source of income.

Only in this way can a wealthy people and a strong nation be realized.

However, there is one thing: doing it this way can easily lead to overcapacity.

Once commodities are saturated within Da Song, they must be exported to other markets.

The export of commodities, exchanged for huge profits from overseas markets.

These profits will make Da Song increasingly wealthy.

Therefore, while launching the industrial and commercial development plan, he must find a way out for the future commodities of Da Song.

Currently, the vast majority of the world's markets are controlled by Westerners.

If he wants to break into these markets, it will inevitably trigger a bloody storm.

Germany before the First World War, precisely because it rapidly became an industrial power but lacked matching markets, and was even suppressed everywhere, eventually provoked the war.

After all, once workshops have no profits, they will close down in large numbers, industrial development will stagnate, and the lives of the common people will once again become miserable.

And if he wants to take over overseas markets, he must have the guarantee of strong military power.

Therefore, Zhao Xu said to Chang Wei and Yang Feng, "Take advantage of this time to have all soldiers of the Prince's Personal Army change into the New-style Military Uniform."

He paused and said, "Also, for a long time, a Captain in the Prince's Personal Army has commanded five hundred men, while a Commandant has commanded ten thousand; the gap between them is too large, so I believe the military ranks should be reorganized."

"From now on, ten men shall form a squad, led by one Squad Leader; thirty men shall form a flag, led by one Flag Leader; one hundred men shall have one General Flag Leader; five hundred men shall form a Du, led by one Capital Leader; one thousand men shall form a battalion, led by one Battalion Commander; three thousand men shall have one Captain; five thousand men shall form a guard, led by one Guard Commander; a Commandant shall oversee one to three guards; above the Commandant, a Zhenwu General shall be established to oversee two to five Commandants; and the entire army shall be commanded by a General-in-Chief," Zhao Xu said, pondering.

He set these new arrangements by referencing the contemporary military system.

A squad is a squad, a flag is a platoon, a General Flag Leader is a company commander, a Du is a battalion, a battalion is a regiment, a Captain is a brigade commander, a Guard Commander is a division commander, a Commandant is a corps commander, and a Zhenwu General is a field army commander.

The General-in-Chief is the Grand Marshal.

With such precise divisions, the Prince's Personal Army will be more flexible in combat from now on.

At the same time, this is also in preparation for the future upgrade of firearms.