Zheng Zhilong's "10 departures and 14 returns" is acceptable to pirates (maritime merchants). This is a high-risk, high-yield profiteering industry. As long as the people and the ship are safe, the 40% interest is not a problem. But for a manual workshop, it is really a bit high.
In most cases, manual workshops cannot afford such high capital costs. But for Zheng Zhilong, a creditor who lends money, the annual interest rate of 40% does not actually bring much profit.
Because what they released was real money! The boxes of silver really had to be inspected, weighed, and handed over to the debtor... After the debtor moved the money away, the money in Zheng Zhilong's hands really decreased.
In other words, Zheng Zhilong's loan sharking business did not amplify at all, that is, there was no multiplier effect greater than one.
Under normal circumstances, in order to ensure that Zheng Zhilong can lend money at any time (this is the golden sign of an honest loan shark), his usury fund utilization rate is usually only 60 to 70%, and sometimes it is even lower than 50%. A 40% discount for ten out or fourteen in, which is a gross profit of more than 20%. After deducting bad debts, debt collection and management costs (the funds are transferred in and out not by bills, but by real money, so the cost is high), it is not easy to achieve two goals in net profit. If the interest rate is lowered to less than 20%, what percentage of Zheng Zhilong’s actual income will be left, and he still lends money at gross usury? Just buy some land and collect rent.
In fact, many businessmen who do not have the ability to collect accounts (it is not easy to cut people off) and do not have any profitable projects to work on (if they do, they may not be too busy), they often invest their spare money in land. This will be the case for future generations. It is said that Chinese businessmen like to buy land and so on, so there is no such thing as capitalism.
In fact, this is caused by the insufficient development level of China's financial industry and the lack of a banking industry.
The reason for the insufficient development level of the financial industry in ancient China... is probably related to the Tianqing of the Song and Ming dynasties. After all, China before the Song Dynasty was mainly a society of wealthy families, and industry and commerce were not very developed. It was only in the Song Dynasty, after China's civilian society became fully prosperous, that a relatively developed financial industry emerged. However, the collapse of the Song Dynasty had a huge impact on the entire social economy. The Ming Dynasty in history also encountered a similar situation... The progress of this financial industry also requires time to accumulate, so it took a lot of time to start from scratch after two heavenly collapses.
For example, notes or banknotes such as Huizi, Yinqiao, Jiaozi, Huizi, etc. had already appeared in the Song Dynasty, and they were quite advanced. But by the early Ming Dynasty, they were all gone, leaving only treasure notes that no one wanted...
"Old Taishan, look at this..." As Zhu Cixiang spoke, he had already taken out a stack of colorfully printed paper and handed it to Zheng Zhilong who was sitting next to him.
Zheng Zhilong borrowed the stack of paper, looked at it, and asked, "Is this...a meeting vote?"
Meeting notes are bills used for remittances. They have appeared now. The Zheng family's business also has this business, but this business is simply remittance from another place.
Zhu Cixiang said: "These are banknotes, checks, banknotes, banknotes and deposit certificates... a total of five kinds of bills."
It turns out there are five kinds of bills! Zheng Zhilong thought to himself, no wonder the pieces of paper looked a little different.
"I know the banknote, I have it at home..." Zheng Zhilong said, "Is this banknote the same as a treasure banknote? Also, what do banknotes, checks, and deposit certificates mean?"
"This banknote is not a treasure banknote," Zhu Cihong said. "This is a banknote issued by the bank, not a treasure banknote issued by the Ministry of Accounts. Bank banknotes are payable on demand!"
"Shall I pay in silver immediately?" Zheng Zhilong asked again.
"It's a silver coin, just one or two silver coins like this!" Zhu Cihong took out another silver coin cast in the shape of a round cake and gently placed it on the table between himself and Zheng Zhilong.
Minting silver coins is also an important part of developing the financial industry!
The Ming Dynasty did not have silver coins, and it did not even establish a set of fineness and weights and measures standards for silver. So the scene of using silver in the Ming Dynasty was like this-shoppers carried steel shears with them and cut the silver ingots into pieces of different sizes according to the price of the goods they purchased. Each broken piece needs to be weighed using a jizi (small scale), and both buyers and sellers often carry jizi with them. And the silver shavings that fall down during the process of refining the silver cannot be thrown away. They must be collected carefully, and then use the wax block you carry with you to ignite and heat the silver shavings to melt them into larger silver nuggets...
In this case, it is difficult to develop financial instruments - the instruments must have a standard subject matter!
Therefore, Zhu Cixiang had to issue silver coins first and then promote bills. Of course, casting silver coins is a craft and cannot be popularized all at once. Therefore, the silver coins that Zhu Cihong showed Zheng Zhilong now were only the standard objects corresponding to the bills.
For example, if you take a "pay by check" banknote to a branch of the Salt Bank, you can exchange it for a silver coin that contains about 90% silver (and 10% is brass) and weighs one tael.
With this subject, instruments such as banknotes, checks, banknotes, banknotes and deposit certificates can be processed without disputes.
"Then what is this bank note?" Zheng Zhilong asked again.
Zhu Youjian explained: "It can be regarded as a large-denomination banknote... It can also be paid on demand and can be used to make large transactions."
"What's that check?"
Zhu Youjian said: "This is a payment bill from an individual or a commercial bank... The bank does not undertake 'pay on demand', but depends on whether the drawer has a check account in the bank." Deposit money for redemption or transfer. With this, Lao Taishan, you don’t have to haul several boats or carts of money when doing business, you just need to bring a checkbook and check stamp."
"Oh..." Zheng Zhilong said in his heart: Who am I? I don’t need to bring several boatloads of money to do business, I just say a word! As long as I, Zheng Yiguan, personally agree to something, as long as it is related to money, I will not fail to honor it!
"Is the deposit certificate proof of depositing money in the bank?" Zheng Zhilong had already guessed the role of the deposit certificate.
"That's right," Zhu Cihong said, "Currently, the certificates of deposit issued by the Salt Industry Bank are registered and non-transferable."
"What are the benefits of depositing silver in Salt Bank?" Zheng Zhilong asked, "Can I get interest?"
"You can get interest, or you can get land coupons." Zhu Youjian said and took out another printed land coupon and handed it to Zheng Zhilong, "The interest is not high, you get 5 points on a regular basis, and only 1 point on a current payment... ....They all have annual interest. If you get land coupons, you can get one acre of land coupons by depositing two taels. With the land coupons, you can go to Liaodong to get one acre of arable land. But after you get the land coupons, you want to withdraw the deposit. Silver, you have to return the land coupons.”
"Isn't that just spending two taels of silver to buy an acre of land?"
"This is different." Zhu Cixiang smiled. "The purchase is non-refundable, but the land coupons exchanged for deposits are refundable. And... you can also take the land coupons and not exchange them for land."
"What's the use of land coupons if you don't redeem them?" Zheng Zhilong asked.
"You can leave it to your descendants..." Zhu Cixi said with a smile, "Such good things don't always happen! Where can I find two taels of silver in exchange for an acre of land?
In addition, land coupons will increase! "
"Up?" Zheng Zhilong was stunned.
Zhu Cixiang nodded and said with a smile: "Yes, now you are depositing two taels in exchange for one. If you don't return it, it will be equivalent to buying one with two taels of silver... waiting for the 50 million acres of land coupons in your hands." After the exchange is completed, maybe it will go up? This land coupon is anonymous and can be transferred! Lao Taishan, this is a rare opportunity, do you want to exchange for more? How about leaving you 10 million acres of land coupons? "
Zheng Zhilong thought for a while, "10 million acres would cost 20 million taels...but I still have to lend money!"
Zhu Cixiang smiled: "Old Taishan, I can lend you... 7 cents annual interest. I will give you a loan limit. You can borrow as much as you need, and the amount you borrow will be calculated as interest. The money I give you will be counted as 7 cents. If you take the profit and put it in for 40 cents, it will be 33 cents if you change hands. How great!"
"This..." Zheng Zhilong pondered for a moment, "Master Qiantose, do you still have some money to make?"
"Yes!" Zhu Cixiang said with a smile, "I just need to make less money... I have a peaceful mind and don't compete with the people for profit!"
