Without money, what is the point of being a traitor?

Chapter 626 A consistent exchange of one article, merely the starting point.
Aside from the initial excitement when they opened, Pei Yuan's thirteen money shops seemed to be doing much the same.

However, those who closely monitored the market price of the banknotes in the past few days quickly discovered the special features of these banks.

In places like "Baoquan Money Shop", "Yunquan Money Shop", "Wanquan Money Shop", "Ruiquan Money Shop", and "Fengquan Money Shop", the purchase price of Baochao (precious paper money) was as high as forty guan (a unit of currency) to exchange for one wen (another unit of currency).

This means that the banknotes acquired at low prices by the internal transport warehouse can be immediately exchanged for profits.

Zhu Houzhao burst into laughter upon hearing this.

Lu Yin and Zhang Rui were capable, but they were still ripped off by the price of "fifteen strings of cash for one coin".

Zhu Houzhao, with a little trickery, managed to buy a banknote that was worth "forty-five strings of cash for one coin".

Moreover, the fact that the "Quan" brand is offering "forty strings of cash for one coin" today shows that his move was indeed brilliant.

Even cunning businesses are willing to pay extra to buy back their products.

However, Zhu Houzhao didn't care about such a small profit.

Once he has fully consumed the remaining 50,000 taels of silver, he should personally step in and announce the resumption of the collection of paper money by the imperial court.

Next, Zhu Houzhao deliberately did not buy up the paper money, but instead tried to do the same thing again in the evening, buying up a large amount of it.

Unexpectedly, after a quiet day, the money exchange rates suddenly started to rise as the banks were about to close.

The exchange rate went directly from "25 strings of cash for one coin" to "15 strings of cash for one coin".

This price is about the same as the price Lu Yin and Zhang Rui paid when they were ripped off in the early days.

Unable to make up their minds, the two quickly consulted Zhu Houzhao.

Zhu Houzhao was also a little surprised, but he quickly guessed what those unscrupulous merchants were thinking.

Are they waiting for me here?
Zhu Houzhao was naturally unwilling to suffer this loss in silence, so he chose to remain inactive and stop making purchases.

As a result, that very night, rumors began to spread throughout the capital that someone had submitted a memorial to the court requesting the resumption of the collection of paper money.

The next morning, when Zhu Houzhao heard the news from the Jinyiwei spies, he flew into a rage and demanded an investigation.

But after his rage subsided, Zhu Houzhao finally realized what had happened.

How to check?
This memorial was just an ordinary one, submitted through the normal procedure.

Not only was it copied by the Office of Transmission, but the Ministry of Revenue also proposed a plan, the Cabinet drafted a proposal, and then the Directorate of Ceremonial Affairs submitted it.

This process involved so many steps, and each step was witnessed by more than one or two people.

Moreover, after Zhu Houzhao was placed in the capital, he carelessly failed to ask his subordinates to keep it a secret.

So even if an investigation is conducted, it will only uncover a messy account that cannot be punished.

Upon thinking of this, Zhu Houzhao quickly sent someone to inquire about the market value of the paper money.

Unexpectedly, the price of the paper money surged to "five strings of cash for one coin" as soon as the market opened this morning.

Zhu Houzhao gritted his teeth in anger.

He was determined not to agree to the memorial and was about to overturn the table, but he had already invested a full 50,000 taels of silver.

The selling price of the banknotes has increased, but the purchase price has not kept up.

If the memorial is not allowed to pass, the 30,000 taels of silver exchanged for 45 strings of cash might yield a small profit, but the 20,000 taels of silver exchanged for 15 strings of cash would result in a huge loss.

Moreover, if we start shipping goods on our side, those money houses might notice something amiss.

It would probably crash the current price of silver notes in an instant. At that time, how many of his 50,000 taels of silver notes would he be able to sell?

Moreover, if he leaves in such a disheveled state, wouldn't he be laughed at by everyone?
The best way to solve this problem now is to act decisively and buy as many banknotes as possible before the price rises too quickly.

Zhu Houzhao was always a decisive man, and he immediately ordered his men to disperse and eat the food.

However, as the acquisitions progressed, Lu Yin and Zhang Rui, who were directly in charge, discovered that the price of the precious paper money was fluctuating too rapidly.

Influenced by yesterday's rumors, a large amount of new funds have entered the market, hoping to take advantage of the opportunity to relaunch the Treasure Note and get a share of the profits.

As a result, by noon, the exchange rate of the paper money had reached the point where "three strings of cash could be exchanged for one coin".

Although Lu Yin knew that there weren't many people participating in this game yet, and that trying to sell off his stock would easily disrupt the market, he still felt very comfortable just looking at the wealth growing on paper.

Meanwhile, Zhang Rui was in a much worse mood.

He and his brother Zhang Xiong entered the market at a price of 800 taels of silver, and then sold the goods to the emperor at a price of 15 strings of cash to one coin.

In total, I earned more than 2,600 taels of silver.

Although the amount of money was not much, it relieved the two brothers' immediate crisis, and they were quite satisfied with it.

However, the current exchange rate for the precious paper money has reached the point where "three strings of cash can be exchanged for one coin".

If those precious notes were given to the emperor now, wouldn't it be worth more than ten thousand taels of silver?

Based on Zhang Rui's understanding of Zhu Houzhao, his current obsessive love of food is definitely because he wants to enjoy this food all to himself before other profit-seekers can get on board.

Once the purchase of 100,000 taels of silver is completed, Zhu Houzhao will likely announce his decision immediately.

So Zhang Rui had a bold idea.

Although the good news of the reintroduction of paper money has begun to circulate, it has not been officially announced yet, so it is still an opportunity to enter the market.

Even if it doesn't reach the level of "one string of paper money for two coins" in the fifth year of Zhengde, even if it reaches half of that, "one string of paper money for one coin", it will still be at least double the income.

Judging from Zhu Houzhao's impatient manner, this window of opportunity must be quite precious.

Now is the time to increase investment.

If you're lucky, you might be able to make a profit in a day or two.

Zhang Rui shared his idea with his younger brother Zhang Xiong, who also agreed with it.

The two of them had a principal of 800 taels and subsequently earned more than 2,600 taels. Even if they invested all of it, their optimistic estimate would be that they would only earn another 3,000 to 4,000 taels.

Thinking about it this way, if they had held on firmly from the beginning, they could have made more than 10,000 taels of silver by now, so it still feels like a huge loss.

So Zhang Xiong also had a bold idea.

You can borrow money from someone you know to invest in the project, and once the emperor announces the news, immediately sell the goods and take your profits.

In this way, they can earn more profits.

Compared to the enormous profits that can be made from it, the interest on the loan is almost negligible.

Neither of them had considered defaulting on their debts, since those who dared to open money shops and lend money in the capital were all powerful figures with real influence.

Many of them were even the most difficult members of the royal family and nobility.

Zhang Rui was unfamiliar with other places, but he knew the money exchange near his home inside and out.

That shop was run by the steward of Zhang Heling, the Marquis of Shouning.

A few days ago, Zhang Heling tried to win over the two brothers by giving them a pair of jade vases. Now that they've come to him for help, he might even waive the interest.

Just as the Zhang brothers were rushing to Zhang Heling for a loan, more and more people noticed the shift in the wind and began to enter the fray.

Some money changers even suspended shipments, waiting for further clarification of the price.

When the Zhang brothers borrowed 20,000 taels of silver from Zhang Heling's bank and were about to enter the market, they were shocked to find that the exchange rate of the paper money had reached "two strings of paper money for one coin." This meant that the profit expectation was only one-fold.

Moreover, as more and more money poured in, these money shops also began to buy up banknotes, contrary to their usual practice.

Although there was some difference between the selling price and the purchase price, the price had generally reached "ten strings of cash for one coin".

Zhang Rui also paid special attention to those "Quan" brand stores with good prices.

The prices offered by the dozen or so "Quan" brand stores were still very good. The selling price of the paper money followed the current market trend, which was "two strings of paper money for one coin". However, the price offered for buying the paper money was "five strings of paper money for one coin".

In other words, with the leak of inside information and Zhu Houzhao's reckless buying, market sentiment was quickly boosted, and Zhu Houzhao's existing holdings have already yielded substantial profits.

After careful consideration, Zhang Rui chose to purchase from the "Quan" brand, since these money shops seemed to have considerable strength.

As for shipping the goods, Zhang Rui wasn't worried; he didn't even plan to use money exchange channels.

Money changers charge a discount when buying goods, so even if the exchange rate increases, their profits will be significantly squeezed.

If the Emperor hasn't collected enough by the time the price reaches the expected level of "one Guanbaochao for one Wen", Zhang Rui plans to give it directly to the Emperor.

Even if that doesn't work, he can just sell it to a merchant.

After all, it is the business owners who need to pay taxes who have a real need.

Most of the tax supervisors who oversee the collection of commercial taxes in various regions are sent by the Eastern Depot. Zhang Rui can profit from the merchants without the middlemen taking a cut.

At the end of this day.

Zhu Houzhao only received goods worth a little over 20,000 taels.

One reason is that the price increase has exceeded Zhu Houzhao's expectations, and he wants to wait and see.

Another reason is that many money shops began to hoard their goods and intensified their efforts to collect cheap banknotes.

Zhu Houzhao was very upset about this.

He was already getting impatient with this and was also very annoyed by those who came up to him seeking profit.

Zhu Houzhao had made up his mind that as soon as the remaining silver was acquired, he would immediately announce the decision to resume collecting paper money.

Moreover, Zhu Houzhao had also laid another hidden move.

Some time ago, the censor Zhang Jingyang submitted a memorial stating that because of rampant banditry in Bazhou, trade was disrupted and the people in the capital were suffering greatly. Therefore, he proposed to reduce or waive the entrance fees at the nine gates, including Zhengyang.

The Ministry of Revenue's opinion at the time was to reduce the rent of the seven gates, including Zhengyang, by 20%, and the rent of the two gates, Chaoyang and Dongzhi, by 30%.

The matter was reviewed by the cabinet, and in order to reduce the burden on merchants, the Shuntian Prefecture Tongzhou Beiguan Patrol Inspectorate was abolished.

But Zhu Houzhao had a better idea.

Anyway, since the tax reduction is going to happen, it's just a sum of money that the imperial court can't get.

He could have easily converted all the city entry fees into paper money. Since paper money had a low value, it would have been equivalent to a reduction or exemption, and it would have also promoted the circulation of paper money.

The removal of the Shuntian Prefecture Tongzhou Beiguan Patrol Inspectorate, which was originally intended to be abolished, can also be postponed.

Commercial taxes collected in Beiguan can also be paid entirely in paper money.

Zhu Houzhao believed that when the court resumed collecting paper money on the Grand Canal, coupled with the double benefits of using paper money for city entry taxes and land ports, the price of paper money would definitely exceed expectations.

Although this policy only affects the nine gates of Beijing and the Tongzhou North Gate of Shuntian Prefecture, the potential implications are enormous.

Just as Zhu Houzhao was racking his brains to plan, news of the unusual developments regarding the paper money quickly spread throughout the capital.

There are hardly any secrets in the officialdom of the capital, let alone this hype about the precious paper money, which is almost open to the public.

Some nobles and relatives of the emperor not only knew about the emperor's arrival, but also knew clearly that the emperor had already purchased more than 70,000 taels of paper money.

There was also a money shop owner who wished to remain anonymous, who confidently stated that Zhang Rui, the director of the Eastern Depot, still borrowed 20,000 taels of silver to decisively enter the market when the exchange rate was "two strings of paper money for one coin".

The news that the price of the paper currency was about to skyrocket was spreading like wildfire, and even many ordinary people were excited about it.

Even the Emperor himself has entered the market, and even the Director of the Eastern Depot has borrowed money to buy in. This is practically a sign that the price is about to rise openly.

As a result of this, when the money exchange reopened, many merchants, gentry, commoners, and even prostitutes rushed to exchange some of the banknotes.

Many people, when chatting or discussing politics, seem to be out of touch with the times if they don't unfold a Ming Dynasty banknote in their hand and shout "One string of cash for one coin" as a starting point.

The entire capital was enveloped in the fervor of rising paper money prices.

Finally, when the day ended, the price of the paper money exceeded everyone's expectations, reaching the same level as the exchange rate of "one string of cash for two coins" in the fifth year of the Zhengde reign.

For many ordinary people, price is not that important.

They just felt the price was going to rise, so they bought in following the trend.

Moreover, they didn't buy much, so they could afford to lose money, and they were more relaxed about it.

Even if you don't make any money, you can still get a thrill.

Some money shops tentatively raised their prices slightly higher than the "one string of cash for two coins" exchange rate in the fifth year of the Zhengde reign, and surprisingly, they were still able to sell a few coins.

Although not many were sold, the symbolic meaning is terrifying.

This means that for the first time in over a century since the founding of the Ming Dynasty, the exchange rate of paper money for silver and copper coins has reversed.

Pei Yuan felt this false prosperity more directly.

Because the large amount of banknotes he had previously hoarded had been almost completely wiped out in the past two days.

Moreover, in terms of exchange rates, the selling price and the buying price offered by the money shops have become increasingly close, and with a large number of transactions, they are almost in close to the free circulation of the real price.

Pei Yuan's sales prices were mostly between "two strings of paper money for one coin" and "one string of paper money for one coin".

The amount of silver they had collected had reached a huge sum.

Urged by Pei Yuan, Lu Yin, Xiao Ying, and others also took the opportunity to sell large sums of banknotes, which greatly reduced Pei Yuan's burden of guaranteeing the sale.

It could even be said that if Pei Yuan had simply left it alone and allowed the remaining banknotes to fall freely, he could have easily made a grand exit with a huge reward.

Although he had already cashed out all the banknotes in his possession at a rate of "five strings of banknotes for one coin," theoretically, the huge profits that followed belonged to the Great Monk's fund.

However, it's not difficult to take away the fund's profits and give them back.

But... who can blame him when Pei Yuan is destined to deal with the Ming Dynasty?

He can't afford to leave a mess for the future just for the sake of short-term gains.

If we don't save Baochao now, what will we use to promote the Single Whip Law later?

We can't let the people, already burdened with heavy taxes, have to add the blood, sweat, and profits of silver on top of that.

The low transaction costs provided by the Ming Dynasty's paper money will strengthen the country in many ways.

At least, the Spanish, who would arrive immediately, wouldn't exchange the silver they easily mined for the wealth that the Ming Dynasty had painstakingly accumulated.

The clear figures provided by the "Single Whip Law" can help the people avoid being exploited at every level.

Pei Yuan was confident that as long as he revived the Ming Dynasty's paper money and vigorously promoted the "Single Whip Law," he could put the rotten Ming Dynasty back on the path of growth.

(End of this chapter)