Chongzhen Daming: Starting from Coal Mountain

Chapter 183 Cooking Oil on Fire
At the same time, in Xuzhou.

The civil servants, military generals, and Prince Qin's scholars have already left in a sensible way. Even if they want to report on their work, they will have to wait until tomorrow, because His Royal Highness and Princess must have something to report to the Holy Majesty today.

In fact, Zhu Cihong and Kang Xi did have important matters to report.

"Tell me." Chongzhen straightened his legs comfortably and asked, "Is the business of the Royal Bank good?"

"Father, the business of the Royal Bank is not only good, it's so good that it's frightening." Zhu Cihong said with a trace of bitterness on his face, "It makes people panic."

"No prospect." Chongzhen said angrily, "Why should you panic if business is good?"

Kang Xi said: "Although the bank's business is good, it doesn't make money, but instead loses money."

Chongzhen said: "You are saying that there are many deposits and few borrowings, and the exchange does not make money, and the profits earned are not enough to cover expenses, right?"

"That's right." Kang Xi said, "My daughter-in-law has reduced the interest on depositing silver to the minimum, but there are still more and more people coming to the Royal Bank to deposit silver, and there is no way to stop them."

"Is there such a thing?" Chongzhen was a little surprised.

Kang Xidao: "The main reason is that bond trading on the stock exchange is becoming more and more popular now, and if you want to trade on the stock exchange, you must open an account at the Royal Bank and deposit silver, which leads to people coming to the Royal Bank to deposit money." More and more people are depositing money. When my daughter-in-law went to Xuzhou Branch for inspection yesterday, Xuzhou Branch had just received a notice from the main account. Ten thousand!"

"What, that's more than one hundred thousand?" Chongzhen was even more satisfied.

In my impression, the development of another time-space Jinshang bank seems to be quite strenuous.

But in that time and space, the business of Xiaoming Royal Bank was developing at the speed of light.

The Royal Bank actually started its business in late April last year, and it has only been seven months since it was fully booked. It took half a year to expand its business to Hangzhou, Suzhou and Xuzhou, and the number of depositors has exceeded [-]. Now, do you know that the total savings amount has not yet been reached?

When Shang Chongzhen asked: "Isn't there too much money in the total number plus a semicolon?"

It was Kang Xi who replied: "It hasn't exceeded [-] million taels of silver, and the total amount is still increasing rapidly. It is very unlikely that it will exceed [-] million taels last month!"

"Ah that?!" Chongzhen didn't care about it, but was surprised.

Has the Royal Bank's deposits not exceeded [-] million taels?
Although it is just a deposit of silver, in essence it still belongs to the depositor who deposited the silver.

But even if it is based on the minimum standard of [-]% reserve, it also means that Chongzhen cannot mobilize at most [-] million taels of color silver, which is simply unimaginable after a year.

Just a year later, Chongzhen even got together 20 taels of payment.

After a sloppy analysis, Chongzhen understood what was going on?
The reason why the Royal Bank's storage business is so hot is not because Xiao Ming's Royal Bank is not so attractive, but because the stock exchange has weakly tied the bond transaction with the Royal Bank.

There must be no bond transactions. I am afraid that Kang Wanwan's related households will often come to take care of the business of the Royal Bank. Besides, my gentry merchant Jia would rather deposit the silver in the Royal Bank if he hid his silver outside the cellar to accumulate dust.

The reason for this is also very old. The Chinese have always paid attention to the fact that wealth is exposed, especially to let the emperor's family know that they are depositing their own family wealth into the royal bank in the hope that the emperor will ransack the house and destroy it?

However, the weak bondage of the stock exchange has changed the logic of that behavior. First, salt merchants, Huizhou merchants, Zhejiang merchants, Fujian merchants, and Cantonese merchants deposited small sums of money in the Royal Bank in order to enjoy the first soup of bond transactions. Zushi silver.

However, the actions of those giant businessmen had a demonstration effect, inducing the rich and powerful to retreat.

Wealthy nobles like the Duke of Wei’s Xu family, the Duke of Bao’s Zhu’s family, and the Kong’s family of Rima had no worries at first, but when we saw these giant businessmen depositing millions of taels into the Royal Bank at every turn, we sat down too. Yes, because even the blind can see the benefits of bond trading, and the cheapness can be taken advantage of by merchants!
As a result, those wealthy nobles also retreated one after another.

With the active participation of the wealthy businessman Xiao Jia and the rich nobles,

It also had a demonstration effect on the middle-class gentry and merchants with a net worth of tens of thousands of taels.

When the middle-class gentry and merchants followed suit one after another, and the special gentry and merchants with a net worth of a few thousand taels developed a herd mentality, those gentry and merchants would think in their hearts that even those small merchants with a net worth of a million taels and those with a net worth of hundreds of thousands of taels Wealthy nobles and gentry who are worth tens of thousands of taels are all afraid, what are you afraid of?
It's just that the emperor dared to give away all the young man's silver!
What's more, the current Holy Majesty also seems to be a person who talks about credibility.

If so, I will also return the tax money recovered from Yangzhou and Nanjing to the little guy with a total of more than [-] million yuan, so there is really nothing to worry about.

……

Chongzhen was very slow to sort out the logic.

Not so few gentry and merchants will follow suit, if it is still because of bonds.

Financial speculation has always been sought after by the world, and it has never been possible in ancient and modern times.

Tulips, Ponzi schemes...the real estate craze that hasn't had a big day is simply a list of successes.

But even without those painful lessons, the world is still flocking to financial speculation. There are other reasons. It is really that the ability of financial speculation to create wealth is too disappointing.

Even those who are vaguely aware of the dangers of financial speculation will fly to the flames,
What's more, those gentlemen and merchants in the Ming Dynasty who were exposed to financial speculation for the first time?Carry is live.

When Chongzhen asked Zeng Yu again: "Is the bond trading on the stock exchange very hot? How many times has the bond price increased?"

"Father, the bond trading is really hot, it's crazy." Zhu Cihong, "The first time the trading started, it hit the line and closed for eleven days in a row. Although the price didn't fall back, it rose back very slowly. And the overall trend is downward. The news I just got yesterday is that the first issue of one-year, eight-year and seven-year bonds have all increased sevenfold. It has risen ten times! The seventh bond generally has risen by less than eight times."

Chongzhen made a rough calculation out of his mind, the first issue of bonds was [-] million, a general increase of seven to ten times, the current total market value difference is at least [-] million, and the seventh issue of bonds is [-] million, an increase of eight times or less It's not [-] million or less. The difference between the two is just not the total amount of silver deposits in the Royal Bank.

Because Chongzhen has not launched financial title products, that is to say, there is a virtual economy.

So how much the market value of the bond is, it means that there will be no less money.

If the total market value of bonds wants to continue to expand, there will be no less money to return to fill the hole.

Once there is no less money to return to fill the hole, it means that the liquidity of the entire financial market has not been exhausted, so the game of drumming and passing flowers will continue to be played, and then the entire bond market will suddenly collapse.

Of course, the sudden collapse of the bond market does not mean that the market's silver will also disappear.

The [-] million silver that was attracted back into the bond market will not disappear out of thin air, but will just be transferred from the account of the gentleman A to the account of the merchant B. This is the essential difference between the real bond market and the virtual economy. "Assets" will really disappear out of thin air, but the physical trading market will.

Chongzhen didn't think it was a bit funny. Before that, I also thought about hyping up the bad news of Jiannu's southward journey, hitting the confidence of the bond market, artificially inducing a bond crisis, causing bond prices to plummet, and taking the opportunity to buy back low-interest first-term bonds.

But now it seems that the entire bond market is about to collapse due to speculation that Jiannu went south, because the liquidity is slowly exhausted, and there are no new leeks to come back to take orders.

Because according to estimates, the private deposits of silver deposited in the south of the Yangtze River are at least [-] million taels.

The [-] million taels of silver deposits, at most not [-] million taels, may flow into the bond trading market, some of which will be used for abnormal commercial and trade activities such as maritime trade, some will be used for industrial operations, and some will be used for circulation. It will be buried forever in the ground by the stingy and bold local rich man.

Therefore, the estimated total market value of Chongzhen was only [-] million.

Now there are no [-] million taels, probably because no money from Fujian, Jiangxi, or even Guangdong and Guangxi has flowed into the exchange, but if there is no limit to the amount of that part of silver, [-] million taels will reach the peak.

That's not to say the bond market hasn't hit rock bottom yet.

It is not an inevitable result that the overall upward trend will follow.

In that era, if the bond market goes up, it will cause a stampede and lead to tragedy!

At that time, it is known that there will be many wealthy gentry and big merchants who will go bankrupt, and Qinhuaihe probably will die a lot of people.

Fortunately, Chongzhen has not yet set up a firewall of [-] taels of net worth for the bond market, so Shengdou Damin, who is the cornerstone, will not be affected. It is estimated that small gentry and small businessmen with rich net worth can still make a lot of money. Those who are cut off will always be the big bourgeoisie or the middle class who have lost their wealth.

As the ruling class, Chongzhen only needs to win over the top dignitaries and feed the bottom. As for the big bourgeoisie and middle class in the middle, there are only so few. Anyway, even if a large group of people rebel, it will be a climate. , that class will spring up slowly and continuously.

The reality is not so cruel, the past and the present are probably capable.

So now, the Royal Bank has to delay and make preparations.

That's because, apart from the 6000 million taels of the Ministry of Internal Affairs, the rest of the Royal Bank's silver is basically the positions of these stockholders in the stock exchange. The real silver deposited in the Royal Bank may be several million taels.

Thinking of that, Chongzhen asked Kang Xi again: "The total amount of money borrowed is probably not too much?"

"A lot." Kang Xi said without any shame, "In total, I only borrowed seven million taels of silver."

"That's good." Chongzhen breathed a sigh of relief, and said again, "He hurriedly asked the Nanjing main office to prepare enough money for the Hangzhou, Suzhou and Xuzhou sub-colons. If there is an accident, the run will slow down."

Before the avalanche of the bond market, the gentry and merchants who made money would withdraw their money.

"A run on the tide?" Kang Xi said in amazement, "There should be no one to run on the silver, right? After all, the bond trading on the stock exchange is so hot now, who would give up and take the silver away?"

Chongzhen said: "The bond market is slowly collapsing."

"Yes?" Even Kang Xidao was skeptical, and said, "Father, I'm sure he will go back to Nanjing to have a look, and he will think so. After nearly eight months of continuous decline, with the profit from the exchange There are fewer and fewer gentry and merchants in the south of the Yangtze River, and the indifference of the gentry and merchants in the entire south of the Yangtze River has been completely mobilized."

"Now in the four prefectures and one prefecture in the south of the Yangtze River alone, even the gentry and businessmen from Jiangxi, Fujian, Guangdong and even Huguang have come here with their wealth and actively participated in bond transactions."

Having said this, Kang Xidao said again: "So, the bond market will only become more and more popular."

"Lang'er is not yet Xi'er, you all remember." Chongzhen's expression became serious, "Any bond market, when everyone in the industry can't make money, is far away from collapse Now, the bond industry is currently in such a stage of burning oil. Almost all the gentry and merchants entering the market have made money from it, but there is no limit to the money we have in the Ming Dynasty. It is possible that we have never had such a small amount of money for Xiaojia. earn."

The so-called economic principle of liquidity.

Zeng Yuyou was dumbfounded when she heard this, but Kang Xi immediately understood that the eldest girl's business talent is really outstanding. There was no such princess in the Ming Dynasty, and it is estimated that she will be short of money in the next few decades.

Zeng Yu said: "My daughter-in-law understands, and I will prepare money later."

"What did he understand?" Kang Xidao looked at his wife in astonishment.

"Turn around and explain to him." Kang Xi smiled, and then said to Chongzhen, "Father, you should report this first."

"Well, let's go back." Chongzhen nodded heavily, and then ordered Wang Chengen, "Little friend, immediately send a delayed delivery to the Ministry of Internal Affairs, and prepare to buy back the first tranche of bonds."

"Yes." Wang Chengen.

……

Except for Chongzhen, does anyone realize that the bond market is on the surface like a raging fire, and a catastrophe is coming, even Kang Wanwan and our small shareholders of the stock exchange are not aware of it.

Just when Chongzhen issued the warning, Kang Wanwan and we were taking stock of the general ledger for one year at the stock exchange.

On the eighth floor of the Exchange, there is not a box with the smallest decoration and the simplest, which is usually used to entertain VIPs like Wei Guogong Xu Hongji, and it becomes the meeting room of the Exchange when it comes to checking accounts.

Kang Wanwan asked the buddy to distribute the accounts to every shareholder who attended the meeting.

"That meeting should have been held a long time ago, but it just happened to be the seventh expansion of the Exchange after the year. There were too few things, so it was delayed until now. Let me take a look, it was the profit made last year .”

Fang Wenzhen and more than a dozen small shareholders opened their accounts one after another, only to see the total profit on the first page.

Again, Arabic numerals have not been officially promoted in the Royal Bank and the Exchange, and small merchants such as Fang Wenzhen have not yet accepted Arabic numerals and bookkeeping from the horizontal to the right.

"A profit of 1800 million?!" A shareholder exclaimed.

Didn't say anything, did you expect that profit figure to be true?

(End of this chapter)