A Good Landlord in the Tang Dynasty: Emperor Yuan Cong

Chapter 1089 The red line drawn by the emperor

"What did you just talk to King Wei? I saw that he looked happy when he left you?"

Li Shimin carried Princess Jinyang to the green money willow tree. Little Sizi asked her father to lift her up high so that she could pick off the strings of green money.

After little Sizi picked a bunch of green coins as he wished, he smiled and went to show off to his friends from the Wu family.

Li Shimin sat in front of Huaiyu and asked.

"I just gave your Highness the King of Wei 10,000 yuan. Of course the King of Wei is happy."

Li Shimin was stunned for a moment.

"You gave King Wei 10,000 guan of money? What do you mean?"

Wu Huaiyu gave the emperor a cup of green willow tea, and then briefly explained the matter.

Li Shimin was relieved when he heard that this was the money gift.

Unexpectedly, it was Wu Huaiyu who really made a lot of money.

Of course, he didn't mention his relationship with the imperial government.
These geographical records will definitely have to go through the official route when the time comes, delivering books to the Imperial College, Hongwen Hall, Chongxian Hall, as well as prefectural and county official schools, Fuzhou and county government offices, etc.
Fifty-five guans and five hundred dollars for a complete set of geographical records. If more government and school purchases were made, would they still worry about selling them?
Even if the official channels don't go smoothly, at least with these two thousand sets, the Wu family doesn't have to worry about not being able to sell them. If they can't sell them, they can still rent them. Renting books is more profitable.

The reason why the Wu family dares to say that the price of a volume of geographical records is only a hundred yuan is because the Wu family has a complete industrial chain, from paper making to ink making, as well as the many skilled industrial workers in Fanchuan, plus the terminal bookstore, etc. It can be guaranteed that these books will be sold when printed.

Emperor Li Shimin did not understand these things.

"You won't lose anything,"

Wu Huaiyu said that it took so many people to build the Kuo Di Zhi, but now there are only two sets, and both of them still have secret pavilions, which is a pity.

I only heard that a volume of geographical records was sold for only a hundred yuan, and they directly gave Li Tai ten yuan, thinking that Wu Huaiyu was taking care of his son Xiaopang.

He even worried about the possibility that it would be lost in the future.

"I feel that His Highness the King of Wei is very talented and very eager to learn. His Highness just said that he wants to revise ten more volumes of geographical records and cover Lusong, Liuqiu, Qinghai, Xishan and other places. I will give you this Wan Guan Qian can be regarded as supporting His Highness the King of Wei’s idea,”

In ancient Chinese history, many books that took countless efforts to compile were eventually lost, such as the Yongle Dadian, and the Sikuquanshu compiled in the Qing Dynasty, which destroyed countless ancient books. Only three and a half volumes have been passed down to later generations.

Engraving and printing books is very profitable, and with its cost and efficiency advantages, it is extremely competitive.

And there are newspapers,

Wu Huaiyu has not yet told the emperor that in fact, the most profitable things for the Wu family to print are door gods, New Year pictures, kitchen gods, Buddha statues, etc., as well as some short Buddhist scriptures, Taoist scriptures, etc.

Wu Huaiyu did not hide anything from the emperor. He revealed the advanced nature of woodblock printing technology to the emperor. The more he printed, the more money he would make.
The cost of light boards, writing boards, and engraving plates is a one-time cost. The more you print, the more you print, the more this cost can be diluted.

Historically, the geographical records were lost due to wars, and by the Ming and Qing Dynasties, only tens of thousands and hundreds of thousands of words remained, which was a pity.

"Aren't you afraid of losing money? There are 550 volumes of geographical records with more than 10 million words. How many plates will be printed? If you print 2,000 sets, that means millions of volumes, can they all be sold? If you sell a roll for a hundred dollars, won’t you lose money?”

Li Shimin had many questions.

Li Shimin looked at Wu Huaiyu,
"Thousands of years later, although the King of Wei is long gone, his book of geographical records will definitely still be passed down."

Printing newspapers can also make money. The Wu family has its own ten-day periodical. There are several types, each with its own emphasis. Not only does it contain a lot of exquisite content, but it also invites investment to print some advertisements. The advertising fee alone makes money, not to mention that there is a fortune in the ten-day periodical. Make money.

That thing can be reprinted in one edition, with tens of thousands, hundreds of thousands, or millions of copies printed. The cost is very low, but the sales volume is huge.

A volume of one hundred articles cannot be copied by anyone, but the book printed by the Wu family can be purchased, and it is very beautiful and accurate.

Kuo Di Zhi is a good set of books.
But if it cannot be circulated and is merely a royal secret, then the book will be lost sooner or later.

Wu Huaiyu now agrees to Li Tai to print two thousand sets of this book. It is not just about making money. This kind of good thing is a part of the rich Chinese culture.

The ancients believed that the mountains, rivers and ditches on the earth were organized in order, so they were called "geography". There was a tradition of compiling topography in ancient my country. The earliest ones were "Yu Gong" and "The Classic of Mountains and Seas". During the Han and Jin Dynasties, special books such as "Jifu Zhi" appeared. Official histories following "Hanshu" often have special chapters such as "Geography".

Starting from the Sui Dynasty, it became a rule for local governments to submit maps of customs and products. By the Tang Dynasty, a system of compiling geographical general records was established. On the one hand, it provided reference for the emperor to govern the country, and on the other hand, it highlighted the political characteristics of a unified nation.

Wu Huaiyu was the Prime Minister and the Minister of the Ministry of Civil Affairs. He valued the geographical books of Kuo Di Zhi very much. He believed that it was not only an important reference for the imperial government to govern local areas, but also made a great contribution to the inheritance of Chinese historical civilization.

"I think it is good for His Highness the King of Wei to concentrate on compiling books and writing books,"

Li Shimin thought about it and felt that it was right. It was better for Li Tai to compile books and cultivate journals than to fight for heir apparents.

But this time Li Shimin doesn't plan to let Li Tai open a literary museum to recruit celebrities and ministers from all over the world. He will just let him calm down and do something practical.
But three years later, Li Tai should still go to Liuqiu Changtaizhou.

Speaking of Li Tai,

Li Shimin was a little silent,
Li Shimin had always felt a little owed to this fat son. When he was young, he was forced to adopt his brother. Although he wanted to come back later, he always felt that he owed a lot.

Later, when Prince Chengqian let him down,
Li Shimin couldn't help but have the idea that the Tang Dynasty could not place all its hopes on the unsatisfactory Cheng Qian, so he thought about it and thought that maybe he could try to train his second son Li Tai.

Eggs cannot be put in one basket, he must be prepared.

If Cheng Qian really has no hope in the future, he must have a replacement.
Although he could not change the crown prince unless it was absolutely necessary, if it really came to that, he could not hand over the court to a crown prince who was incapable of doing anything.

Looking back on those days now,

It's quite painful,

I was a little too impatient myself.

Mistakes made before cannot be made again. Li Shimin used his own internal funds to order more than 300 sets of Zhenguan Kuo Di Zhi from Shidetang Bookstore of the Wu family, with a set of more than 50 guan, for a total price of 19,869 guan.

"I will ask Mrs. Peng Chengguo to send you 20,000 yuan when I get back."

"After these more than three hundred sets of geographical records are printed, you can send one set to the state schools in each of our states, so that not only the professors and students of the state schools can borrow this book, but also the state sergeants can borrow this book."

The emperor also gave more than a hundred strings, rounding up the sum.

You even have to pay in full in advance.

Where can I find such customers?

Wu Huaiyu smiled and agreed, the Wu family could make a lot of money from this deal.

The emperor drank green willow tea and tapped his fingers on the table.

"As for the bank, I have thought about it and thought that I should give it a try, but this matter must be handled with caution. It is best to try it out in the two capitals first. Don't make it too big at once. Try it out first, summarize some experience issues, and check for leaks. Fill in the gaps and promote them after experience matures.”

The emperor said that since it was a trial, one should be both cautious and bold.

Therefore, he said that Hubu Bank, Sinong Bank, and Shaofu Bank, each of the three official banks, would set up trial operations in Chang'an and Luoyang, and would only do storage and lending businesses at first.

"I plan to use some private funds from the inner government to establish an inner government bank,"

Wu Huaiyu suggested, “It’s better to call it Datang Royal Bank.”

The government-run ones are called banks, and the private ones are called banks. In order to standardize operations and management, the court must strictly supervise these industries.
First, an industry license must be issued, and only those who obtain the license can participate in this business operation.

The second is to supervise these industries, and even stipulate the interest rates for their deposits and loans. For example, the maximum loan interest rate cannot be too high, and the minimum and maximum deposit interest rate must be set.
Even some detailed specifications such as compound interest and so on.

"I suggest that for all loans, whether they are public or private, or loans made by ordinary people, the profit from the pledge shall not exceed five cents of the interest, and the debt shall not exceed twice that."

The interest red line proposed by Wu Huaiyu is five cents per month and 60% per year. The loan interest can reach up to the principal and cannot exceed it.

The previous annual interest rate on public money was 100%, far exceeding this amount.

Folks go out nine times and return thirteen times. There are many lambs resting and donkeys wallowing.

This aspect is very chaotic, mainly because of the lack of supervision. Those who lend money are aristocrats and powerful people, and those who lend money are common people. They have no say and can only be exploited.

Li Shimin does not agree with the rule that the interest-bearing debt shall not exceed five times its value.

But he added, "It is not allowed to return profits as the basis, or double the profits."

This is a prohibition on compound interest. Interest cannot be returned to the principal and accrue interest again. At the same time, whether the loan is repaid with property or with corn, even if the loan expires, the accumulated interest cannot exceed the principal, that is, it cannot exceed double the amount.

The most feared thing about borrowing is not the high interest rate, but the compound interest rate. It is commonly known as the donkey rolling. After a few rolls, the family will be ruined and the family will be destroyed, and it cannot be repaid at all.

Therefore, it is necessary to add this article, not to return the profit as the basis, and not to double the amount.

That is to prohibit compound interest and stipulate that the interest cannot exceed twice the principal.

The imperial court's attitude toward private lending is that it will not participate or interfere, but there are prerequisites, that is, the borrowing by both parties must fall within two basic conditions.
First, the monthly profit cannot exceed five cents. The second is to control the total amount of interest. Even if the accumulated days are large, they must not be doubled.

At the same time, it is required that all loans must be deeded, and any disputes shall be based on the contract.

If the borrower cannot repay the debt, he or she must bring the contract to the government, and the government will decide what to do. If the debtor takes possession of property that exceeds the debt stipulated in the contract without going through the government, it will be considered as stolen property.

No false contracts shall be made and no profit-taking shall be made as the basis.

If the monthly interest exceeds 5 cents, it is called usury and is not protected by court law.

Each bank that operates a lending business is not allowed to exceed this amount.

As for the three major government-run banks, as well as the Royal Bank that Li Shimin wanted to establish with internal funds, the monthly interest rates for borrowing money were more than one cent to more than three cents, and no more than five cents.

The annual interest rate for loans that assist farmers and businesses is generally around 20, and the annual interest for general commercial loans is around 40 years old.

Compared to the upper limit of 60 annual profits, there is still some room.

This space is only for general private loans.

After Ma Zhou came over, he felt that the standard drawn up by the monarch and his ministers was a bit strict.
After all, private loans are now generally double interest, with at least 100% interest a year, and more often it is like this nine out of ten. Even private loans borrow one bushel of grain in the spring and pay two or even three bushels in the autumn, half a year. The interest rate has doubled.

"We might as well relax a little more. The monthly profit cannot exceed six points, and the profit cannot be returned to the capital. The profit cannot exceed the capital."

Adding one point to the monthly interest rate increases the annual interest rate by 12%.

However, when the imperial court formulates standards, it must consider the actual situation, otherwise it will not be implemented.

If the loan debt is overdue and cannot be repaid, it is allowed to use livestock, grain, etc. as a trade-off, but it cannot exceed the debt in the contract. At the same time, it is strictly prohibited to use good men and women as slaves, but it is allowed to use one's life as a reward.

If a debt is difficult to repay, one can use his family's property to pay off the debt, or bring people to work to pay off the debt, but he cannot directly sell the person into a slave or use him as a slave to pay off the debt.

Although Wu Huaiyu felt that even if the court explicitly stipulated that the monthly interest should not exceed six months and the interest should not exceed the principal, in actual operation, it would certainly not be strictly adhered to.

But the red line drawn by the court still has a very positive effect.

The Wu family's bank and pawnshop will definitely strictly abide by the imperial court's new red lines.

(End of this chapter)