Great name!

Chapter 290 Teaching the Three Sons
This chapter is watery.

Tsuda Naganobu asked quickly: "Father, please help us solve this puzzle."

Xinhu had never intended to keep his wealth to himself, and he knew only a little more about banks than his sons.

He smiled and said, “I only know a little bit about banks, but what I am telling you is just a starting point. The development of this new thing still depends on young people like you.

Now let me talk about the basics of banking, which will help you understand.

First of all, the bank I am talking about is a new institution that includes the function of a money house.

Money houses are just one type of banks. There are several types of banks that I am considering, such as central banks, policy banks, commercial banks, investment banks, etc.

Our current money houses are a type of commercial banks.

As for the bank established by our Tsuda family, it is a policy bank.

If Nobunaga-dono opened a bank in the name of the Oda family, it would be a central bank.

Let’s first talk about our policy banks. They are not for-profit and are specifically designed to implement and cooperate with government economic policies or intentions.

In specific business areas, financial institutions that directly or indirectly engage in policy financing activities and serve as tools for the government to develop the economy, promote social progress, and conduct macroeconomic management.

Tsuda Naganobu raised his hand and asked, "Father, what is macroeconomic management?"

When Tsuda Naganobu asked this question, Nobutora naturally understood, after all, these were new terms to them.

He explained: “Macroeconomic management is the government, as the main body of the market economy, using administrative, economic and legal means to achieve economic behavior with economic subjects as the leading factor, the symmetrical relationship between economic subjects and economic objects as the core, and the balance of economic structure and sustainable economic development.

It is the government's intervention and regulation of macroeconomic operations in order to achieve the goals of promoting economic growth, increasing employment, stabilizing prices, and maintaining a balance between national revenue and expenditure.

The main means of macro-control include fiscal policy and monetary policy, which aim to adjust the relationship between total supply and total demand, ensure the normal operation of the macro-economy, and achieve the country's long-term development strategic goals. "

Tsuda Naganobu became even more confused after listening to this. In fact, Nobutora was just subconsciously reciting what he remembered.

Seeing his three sons looking confused, he continued to explain, "Then I'll put it simply. From a macro perspective, it means looking at the whole. The government is basically the only one who can look at the macro perspective.

Macroeconomic control means that the government guides the development of things.

Changxin, why do you think this is the case? "

Tsuda Naganobu thought for a moment and replied, "If we take Settsu as an example, my Tsuda family represents the entire Settsu. Father came up with the new currency policy to facilitate the people's trade and reduce the harm caused by bad money to the people.

If people live a good life, we in Settsu will be stable.

However, my father's new currency policy caused those big merchants to lose a lot of gold and silver. They did not need to consider the people of Settsu, they only needed to make money for themselves, so they ignored the wishes of the people and undermined the new currency policy.

That’s why my father had to take action to suppress these big businessmen, and that’s why there’s the concept of macroeconomic regulation.”

After listening to what Tsuda Naganobu said, Tsuda Nobuyasu and Tsuda Nobukatsu understood a lot more about what Nobutora had said before.

Xin Hu nodded with satisfaction. He was worthy of being the eldest son he raised. His vision surpassed many people. Even after his death, the new policies he founded would not be forgotten. At least Chang Xin would inherit them.

He said: "Chang Xin is right, this is exactly the meaning of macroeconomic regulation.

Businessmen are profit-driven and will do whatever it takes to achieve their goals. Their behavior will harm the interests of ordinary people.

For us in the Tsuda family, the people are our foundation. Although we are above them, we have to treat them better.

If things get too bad, the people will rise up and overthrow us.

You must remember this.

All I am doing now is to stabilize the foundation.

This is also the most important significance of macroeconomic regulation.”

The three sons nodded quickly, and Tsuda Naganobu said, "I will definitely keep it in mind."

Xin Hu then continued: “Having said this, you have already understood the significance of macroeconomic regulation and the central bank.

Next, I will tell you about commercial banks, which are similar to money houses. Commercial banks are financial institutions that act as credit intermediaries through deposit, loan, foreign exchange, savings and other businesses.

Commercial banks are one of the financial institutions and the most important one. The main business scope of commercial banks includes accepting public deposits, issuing loans and handling bill discounts.

Our current money-lending business is much less than that of commercial banks.

As for investment banking, I won’t go into detail. You will understand when I talk about its main business later.

Now let me tell you why I say that we can still make money even if we give money to depositors.

The main trading partners of traditional money houses are officials and businessmen, and their main connection with the public is lending.

It is easy for merchants. When merchants conduct large-scale trade, it is inconvenient to carry gold and silver on them. But they can deposit the money in a money shop. They only need to bring the bills and can exchange them for money in another place to successfully complete the transaction. This process saves time and effort.

Therefore, merchants would rather spend some handling fees to maintain this method.

At the same time, the money house earns interest through lending, and when the other party cannot repay the money and is forced to sell the collateral, the money house makes a lot of money by buying low and selling high.

If we set up a bank in this way, it will only make the people resent our Tsuda family.

Although we have established a bank and some of its businesses are the same as those of a money house, our approaches are completely different.

First of all, we can quickly attract a large number of depositors by having users deposit money in the bank and the bank paying interest.

With this large sum of money, we can invest it to make money, so that the interest paid to depositors is just a small amount of money. "

Tsuda Naganobu widened his eyes and said in surprise: "Is it too risky for us to use this money to do business? What if we lose money?"

Xin Hu smiled and said, "You have considered it well. If it were someone else, it might not work, but for me, Xin Hu, there will be no problem."

Tsuda Naganobu really had no way to refute it. After all, his father's reputation was known throughout the world, and now he had thought of something that no one had expected. He must have a way to deal with it.

Xinhu’s main investment business is maritime trade, and maritime trade now has absolutely huge profits!
However, this can only be implemented if he has a fleet capable of long-distance sailing.

Xinhu talked about the most basic business and then went on to talk about other businesses.

"Although the bank we founded has a lending business, the interest we charge is low and will not put too much burden on the borrower, unlike the money houses that exhaust all resources." Upon hearing this, Tsuda Naganobu said excitedly, "Father has started from these aspects, and the money house has no power to fight back. The most important thing is to guard against his shady tricks in secret."

Xinhu smiled and said, "I'll leave the banking matters to you. Xinyi will take care of the shipbuilding matters. Xinsheng, you should stay by my side and learn from me during this time."

After Xinhu gave his three sons specific instructions, he let them leave. A lot of things were said today, enough for them to digest for some time. It would be much faster to teach them after the bank was established.

A few days later, the bank was almost ready, and Tsuda Naganobu and Yamazaki Haramori reported the matter to Nobutora together.

Nobutora took Nobukatsu Tsuda to the bank to check it out. He looked at the interior environment of the bank. From the reception desk to the bank vault, everything was designed according to what he said.

He looked around and nodded, "Not bad, we can open now. The training for the female receptionists has been completed."

Yamazaki Haramori replied: "It has been arranged. They are all from samurai families, well-educated and well-mannered. There will be absolutely no problem."

Although Xinhu has determined the date for the bank's opening, he still has to build momentum for the bank before it opens.

After all, banking is a new thing. If he doesn't use some tricks and no one comes to support him, then it will be embarrassing for him as the leader.

Nobutora immediately called Ishimaru Hachiro and instructed him, "Hachiro, I have something for you to do. This matter is very important. You must personally monitor it and report the specific situation to me every three hours."

Ishimaru Hachiro was overjoyed and immediately accepted Nobutora's task, stepping forward and listening closely.

……

On the street in the castle town of Arioka Castle, in an izakaya, it is dusk and the nightlife is about to begin.

Inside the pub, the drunk diners began to talk loudly, talking about the interesting things they had heard.

One of the diners shouted, "Have you heard? The Jingzhao Yindian is going to open a new thing called a bank. I heard it's similar to a money house."

When others heard this, they said disdainfully: "Isn't it just a bank with a new name? What's so special about it?"

The diner seemed to be annoyed by what he said, his ears turned red and his neck became thick as he said, "Hey, you don't understand this, I have a relative who works for a patriarch of the Tsuda family.

I heard him say that this bank is different from the old money houses. I heard that when you deposit money in the bank, it doesn’t charge a handling fee and even gives you money!”

This statement quickly caught everyone's attention.

Some people were a little skeptical: "Give money? I have never heard of a bank doing this."

The guest said disdainfully: "How can those money houses be compared with the bank opened by Jingzhao Yin Palace? The names are different, and the operations must be different."

Other diners immediately retorted: "I think you must be bragging. If we deposit money, how can the bank make money by giving us money? We will definitely lose a lot of money if we do this!"

Everyone listened and thought that this matter was indeed outrageous, but the diner who brought up the topic was still debating with everyone, but most people still felt that this matter was not very reliable.

The comments discussing the bank were quickly reported to Nobuhiro, who read them for a while, handed them to Nagashino, and asked, "What do you think?"

Tsuda Naganobu frowned and said, "I see that some people from the bank are deliberately trying to discredit us. I'm afraid that this bank matter will be a long wait."

Xin Hu laughed and said, "Haha, you don't have to worry. I was the one who started this matter. It was just a bait. These people are really impatient and they took the bait as soon as I threw it.

I think it’s not enough for them to make such a fuss, and they need to continue to make a fuss about this matter.”

For a moment, Tsuda Naganobu did not understand why his father did the opposite. He was afraid that the people in the money house were also thinking of making a big deal out of this and letting everyone laugh at the Tsuda family. After all, the money house did not charge any handling fees but gave interest, so how could they make money?
Yes, they are wrong. Father has a solution!
Tsuda Naganobu reacted, and he said excitedly: "Father, I understand, those people think we can't do it, so they want to make a big fuss.

But my father can do it, and by making such a fuss, they are actually helping my father."

Xin Hu was very happy to see Chang Xin realize this. He smiled and said, "Okay, Chang Xin, you are very quick to react. I can let you do many things."

Tsuda Naganobu was very happy. In the past, he always followed his father and only did what his father told him to do.

Now, he can act independently after receiving the task from his father.

Tsuda Shintora ordered: "Go find Hachiro. He has the arrangements for the second phase of the plan. Go take over."

Tsuda Naganobu immediately got up and went to find Ishimaru Hachiro, while Tsuda Nobukatsu, who was standing beside him, looked at Naganobu's back with envy as he left.

Nobutora saw Tsuda Nobukatsu's expression and taught him, "Shinjiro, study hard. Your brother has worked hard for seven or eight years to have such ability. You need to work twice as hard."

Tsuda Nobukatsu nodded solemnly and said, "I will keep it in mind. Don't worry, father. I will work harder."

……

Tsuda Naganobu found Ishimaru Hachiro and said directly: "Hachiro, my father asked me to come to you to take over the second phase."

Although Ishimaru Hachiro felt a little regretful, he still decisively handed over the specific matters to Nagatobu.

Tsuda Naganobu smiled and said, "Hachiro, I am just in charge of the process. You still have to arrange some things."

Ishimaru Hachiro quickly bowed and said, "I understand."

……

Time passed quickly, and the day for the bank to open arrived. Tsuda Naganobu came forward on behalf of Nobutora and announced the opening of the bank.

On this day, the bank's gate was decorated with lights and firecrackers, and there were also some acrobatic performances on both sides, which attracted a lot of people.

Most people are not just attracted by the excitement. They have heard about bank matters in the past few days. What they are most concerned about is that they can earn interest by depositing money.

At the same time, some people with ulterior motives are also paying attention to this matter.

They sat on the second floor of a tavern opposite the bank and looked at the bustling bank with cold eyes.

"Humph, a warrior like Tsuda Shintora dares to open a bank."

"He is clearly courting death by doing this!"

"Let's see today and make him look bad!"

However, the middle-aged businessman in the lead was from Tennojiya. He had a vague feeling that something was wrong. But he also felt that although Tsuda Shingen was good at fighting, running a money house was not something that could be done by just fighting.

He smiled and said, "Don't take it lightly, we still have to watch and see what good things will happen today."

(End of this chapter)