Chapter 191: Lending

A few days later, Fang Li, through Huang Bin's introduction, met Cheng Lin, who had come to Chang'an Town.

After Gong Fanwu discussed matters with Cheng Lin, he finalized the lending regulations he had gathered information on, then returned to the capital. Before leaving, he instructed Cheng Lin to act boldly—with the Embroidered Uniform Guard's Hangzhou Chiliarch's office backing them, no trouble would be a problem. What mattered was that after the first loan was issued, they should seize the opportunity to spread the word, making more people aware of the Four Seas Exchange's existence and that its lending interest rates were far lower than others'.

Gong Fanwu had told Cheng Lin that the interest rate was secondary; what truly mattered was getting capital-starved merchants and workshops moving again, producing more goods—that was the ultimate goal.

Of course, all goods produced by these borrowers would be given first-purchase rights to the Four Seas Trading Company—this clause had to be written into every loan agreement.

The workshop had no place to receive guests, so the group conversed at Huang Bin's home, not far from the workshop.

Huang Bin refilled the teacups of Cheng Lin and Fang Li with his teapot, then sat down and said with a smile: "The master hasn't come to the workshop for several days—you must be quite at ease. I'll bring over the account books from these past days shortly for your review, master. The silver you left before departing last time hasn't been used up yet, and several hundred bolts of various silks have already been woven. I wanted to ask, master—should we ship them all at once this time, or stock up a bit more?"

Cheng Lin waved his hand and laughed: "A-Bin, you're the expert here. If this old man, an outsider, were to meddle, mistakes would be inevitable—just do your best and that's enough. Since several hundred finished bolts are ready, I'll take them back to the Hangzhou warehouse when I return. No rush on that—find time to hire a cart when you can. This old man will be staying in town a few more days!"

Huang Bin nodded in agreement. Fang Li, sitting nearby, watched the two conversing with envy, thinking to himself: A-Bin is truly fortunate to have such a kind master. I just wonder whether the matter I'm hoping for will be settled today.

Cheng Lin turned to look at Fang Li and said with a smile: "Young Master Fang is about the same age as A-Bin, isn't he? A-Bin has briefly told me of your situation. How many years have you been in the trade, young master? What's the state of your family workshop? Have you borrowed before?"

Fang Li hastily clasped his hands and bowed: "To answer Master Cheng, I'm two years older than A-Bin and have been in silk weaving for five years. My family currently has six looms and employs ten workers; my wife and I also work the looms ourselves on ordinary days. I've never borrowed before. When I heard that your firm had silver to lend out at extremely low interest, I asked A-Bin to act as intermediary and make inquiries!"

Huang Bin nodded: "Master, A-Li's situation was originally similar to mine—we've been playmates since childhood. A-Li's character needs no praise: honest and diligent. Over these years he's accumulated some property. A few days ago, while chatting with my brother-in-law, I learned that A-Li wanted to expand. Since you happened to be here today, master, I took the liberty of introducing him!"

Cheng Lin smiled: "Since he's someone familiar to A-Bin, then this old man will speak frankly!"

Fang Li quickly nodded, then sat upright to listen attentively.

Cheng Lin spoke: "This old man knows you wish to borrow to expand your workshop, young master Fang, but I don't yet know how much silver you need, what you have as collateral, and whether you're confident in managing the workshop well?"

Fang Li pondered a moment, then replied: "I'd like to ask Master Cheng—what is your firm's lending interest rate? If it's usury like that of Hangzhou Prefecture, I truly cannot afford it. I hope Master Cheng will tell me the exact figure!"

Cheng Lin leaned back in his chair with a smile: "Though this old man is the manager of the Four Seas Trading Company's Hangzhou branch, my vision and experience fall a thousand li short of the head master at the capital headquarters! When I first heard the interest rate the head master had set, I too was taken aback! Can you guess—what exactly is the rate?"

After speaking, Cheng Lin looked at Huang Bin and Fang Li with an amused expression.

Huang Bin clasped his hands and admitted frankly: "I've never been involved in lending matters, so I truly don't know the market rates, but I do know of many families ruined by debt!"

Fang Li clasped his hands and replied: "Because I had the intention of borrowing, I made extensive inquiries about such matters. The most expensive is forty percent annual interest; even the cheapest runs twenty percent! Surely your firm's rate can't be only twenty percent?"

That is to say, if someone borrowed a hundred taels of silver from a lender, after one year they'd have to repay one hundred twenty to one hundred forty taels—compared to the few percent annual rates of later ages, this was indeed far too high.

Cheng Lin smiled and shook his head repeatedly: "Twenty percent already counts as usury—my head master's heart isn't that black! No need to guess further; this old man will tell you: our firm's lending rate is ten percent, and it goes even lower for larger borrowings!"

Fang Li and Huang Bin wore expressions of utter disbelief.

"Master Cheng, surely you're not deceiving me? Can your firm's rate truly be that low? I have a blunt word to say, and I beg Master Cheng's pardon!" Fang Li's expression mixed joy and worry.

Cheng Lin smiled at Fang Li and said: "Could Young Master Fang be worried that the Four Seas Exchange daring to set interest so low will invite unnecessary trouble, and that you might be caught up in it?"

Fang Li nodded repeatedly: "Yes, yes—that's exactly what I fear! As far as I know, the lenders in Hangzhou Prefecture and throughout Jiangnan are not people ordinary folk can afford to offend. Your firm's approach is tantamount to snatching the food from their mouths, and I fear..."

Cheng Lin burst into hearty laughter: "Haha! Young Master Fang thinks so carefully—this old man thinks all the more of you! As for the matter you worry about, it's not worth mentioning at all. This old man can tell you plainly: within the borders of the Great Ming, there is no one who dares covet our firm! Whether it's the Hangzhou Prefect or the Zhejiang Governor, neither would dare interfere in the Four Seas Trading Company's affairs!"

Fang Li still wore a skeptical expression upon hearing this. He was an ordinary man—though he wanted to expand his family business, he dared not touch any trouble, fearing he might suffer collateral damage from the lending affair.

Seeing his expression, Cheng Lin understood inwardly but was still somewhat displeased. Had this not been the exchange's very first transaction, he would have long since risen and left in a huff.

Huang Bin, reading the mood, sensed Cheng Lin's displeasure and hurriedly spoke up: "A-Li, the master is not one to boast. When the master first spoke to me about building the workshop, I too was full of doubt—and now you can see for yourself, isn't it built? A-Li, you're overthinking things. Where else can you find such low interest? Don't miss this golden opportunity!"

Fang Li deliberated repeatedly, then steeled himself, stood up, and clasped his hands to Cheng Lin: "I've decided! I'll borrow one thousand taels of silver from your firm, buy fifty looms to establish a workshop, and use the remainder as operating capital! I have ten mu of mulberry fields at home as collateral!"

Seeing his first transaction about to be concluded, Cheng Lin was overjoyed inwardly. He rose with a smile: "Good! Though ten mu of mulberry fields aren't worth a great deal of silver, by this old man's judgment, Young Master Fang is someone who can accomplish things! Then it's settled—let's draw up the agreement and deed right now!"

In the Qianqing Palace, Zhu Youjian was in council with several Grand Secretaries, the Left and Right Chief Censors of the Surveillance Court, and various Ministers and Vice Ministers of the ministries—the topic being matters concerning the metropolitan examination in early February.

The New Year had passed, all government offices had resumed normal operations, and the upcoming metropolitan examination had been placed on the agenda.

The metropolitan examination was presided over by the Ministry of Rites, hence also called the Rites Examination, held at the Ministry of Rites' examination hall in the capital. Since the metropolitan examination took place in the year following the provincial examination, it was also known as the "Spring Examination," "Spring Session," "Spring List," or "Apricot List." The examination dates were the ninth, twelfth, and fifteenth of the second month, with each session lasting three days.

Wen Tiren stepped forward, bowed, and memorialized: "I report to Your Majesty: provincial graduates from all provinces have now arrived in the capital one after another, and there are fewer than twenty days until the metropolitan examination. I beg Your Majesty to confirm the list of examiners for this session at the earliest opportunity, so that the relevant offices may begin work immediately!"

Zhu Youjian picked up the roster submitted by the Ministry of Rites and leafed through it. The name of Zhang Guowei, Minister of Rites and Chief Examiner, headed the list. Following were the names of the fourteen examining officials, eight assistant examiners, two supervising examiners, eleven coordinating officials, thirteen paper-sealing officials, two answer-sheet custodians, and other principal officers, along with a vast supporting staff of sealing clerks, proofreaders, patrol guards, and supply officers.

Zhu Youjian set down the roster and spoke: "Since this roster represents the careful decision of all my ministers, I approve it. In these extraordinary times, the great examination for selecting talent is all the more important. I stated previously that this selection should emphasize practical statecraft—I wonder what gains the provincial graduates who arrived early have made over these past months? I do not wish to see pages filled with empty words and hollow platitudes again. Have any of my ministers heard anything regarding the graduates?"

Li Banghua stepped forward and memorialized: "Since Your Majesty set forth the key points for this examination, I have made special trips during my leisure to investigate. Through casual conversations with several provincial graduates, I learned that most have gained a preliminary understanding of practical learning—no longer do they invoke the sages in every sentence or quote classics in every phrase. Some graduates have even set aside their dignity and personally gone to the fields to converse with farmers, hoping to gain a deeper understanding of the hardships of Your Majesty's people. In my view, the talent selected this time will surely differ greatly from the past—this truly stems from Your Majesty's far-sighted wisdom, and I am deeply admiring of Your Majesty's actions!"

Right Chief Censor Shi Bangyao memorialized: "I too have gone out several times like Censor Li, and what I observed was largely similar. In the taverns and teahouses where graduates gather, there are few who engage in lofty talk or quote classics; instead, most discuss matters of daily livelihood. As the old saying goes: what the superior favors, inferiors will exceed. That saying is normally pejorative, but what Your Majesty favors is truly what the realm needs. If this continues, it will surely lead the age from empty theorizing to practical substance! I too am full of admiration!"

Wang Yingxiong memorialized with a smile: "What the two censors have said is indeed the truth—Your Majesty's practical approach truly carries the style of the Founding Ancestor. If the talent selected in this examination is placed in the prefectures and counties, the people under their governance will surely benefit greatly, and the great prosperity of our Ming will surely come!"

Wen Tiren memorialized: "Though Your Majesty's approach is excellent, with so little time its effects may be hard to manifest. I fear many graduates may have adopted a last-minute attitude, treating it as mere formality. Therefore, I believe the court should establish long-term measures, persistently carrying through this practical ethos, lest it appear to start strong and end weak—which would damage Your Majesty's prestige!"