The Qing Dynasty

Chapter 536 Currency Binding and Getting Something for Nothing
The mint made silver dollars, which was a lucrative business. According to the ratio given by Teng Yuzhao, for every hundred taels of silver produced, the mint would earn more than six silver dollars after deducting the cost. Even if it handed over three silver dollars to the Zhili Governor-General's Office, the mint would still have a net profit of three silver dollars.

If this mint can produce silver dollars worth 100 million taels of silver, it will make a net profit of 3 million silver dollars.

The more coins are made, the greater the profit will be. As silver dollars become more and more popular, their exchange rate with one or two taels of silver will gradually approach that of silver, and the profit will be obvious.

"Also, in order to get our silver dollars widely circulated in the market as soon as possible, all large transactions in Zhili will be priced in Zhili silver dollars."

Teng Yuzao looked at Zhou Xuexi and said, "Not only will taxes and expenses in Zhili be collected in our silver dollars, but all the foreign-owned factories and companies in Zhili will also price their products in our silver dollars, and only accept our silver dollars and banknotes."

"Including the construction of our Tianjin New City and all railway construction expenses, we must use our silver dollars."

"If merchants who don't have silver dollars want to buy goods from major companies and factories in Zhili, they have to go to the Aurora Investment and Development Bank to exchange their silver for our silver dollars or banknotes before they can buy. Even silver notes will be specially marked."

"In addition, after producing enough silver dollars, the Aurora Investment and Development Bank will try to start issuing banknotes."

"In the early stage, we can issue banknotes in small batches. We must ensure that anyone with our banknotes can exchange them for silver dollars at the designated institutions of the Aurora Investment and Development Bank. The banknotes issued must also be taxable like silver dollars. The salaries of officials in all government offices and institutions in Zhili must be paid in paper money as much as possible. Merchants can also give priority to purchasing goods from industries in Zhili."

Teng Yuzhao applied the method of pegging the dollar to oil in later generations to his silver dollars and paper money. Although he is not as domineering as Americans in later generations in China now, the products of his new Western-style factories are definitely in short supply and in great demand. With the guarantee of these products, silver dollars and paper money will eventually circulate in the country.

The reason why Teng Yuzao wanted to issue silver dollars to completely replace the circulation of silver and also issue paper money at the same time was because it would take some time for the Chinese people, especially those in remote towns and villages, to accept paper money. He could only promote a dual-track currency system of cinemas and paper money.

Although it can only be implemented in Zhili now, and perhaps Shandong in the near future, with these two provinces as demonstrations, I believe the speed at which paper money is accepted by the Chinese people will be greatly accelerated.

After a little thought, Xi Ligong quickly understood the intention of Teng Yuzhao's move, and was amazed by Teng Yuzhao's ingenious move.

What is an official businessman? This is an official businessman. The Zhili Governor's Office endorses the issuance of banknotes by the Aurora Investment and Development Bank. If the silver dollar and paper money cannot be smoothly promoted, then he, the general manager, should pack up and leave.

Xi Ligong even thought that if the operation continued in this way, the silver dollars and banknotes issued by his bank would force the whole country to speed up the use of Zhili's silver dollars and banknotes, and the silver in circulation in the country would be more than 1 billion! This would greatly increase the issuance of silver dollars.

As for paper money, there is no need to say more. When a bank issues paper money, it generally only needs a deposit of 20 to 30 percent of the issued amount to meet the redemption needs. In other words, as long as he has 30 million silver dollars in reserves, he can issue 100 million paper dollars.

In that case, not only will the construction in Zhili be greatly accelerated, but the investments and loans in which banks participate will also increase substantially, and the banks' benefits will naturally increase greatly. His income is linked to the bank's income.

With Teng Yuzao's strong support, "Aurora Investment and Development Bank" will soon develop into the largest bank in the country. Even if Zhili's development goes smoothly and he does not make serious operational mistakes, it is not impossible for "Aurora Investment and Development Bank" to become the largest bank in Asia.

When he thought of this, Xi Ligong was so excited that his whole body began to tremble.

However, it seemed that only Xi Ligong realized the intention of Teng Yuzhao's move and the huge impact it might produce. The others did not react.

Teng Yuzao did not explain much, but just exchanged a knowing look with Xi Ligong, and then continued to speak.

"Yucheng, you also need to establish a stock exchange through the Aurora Investment and Development Bank to trade stocks."

Teng Yuzhao's words made Xi Ligong so excited that he almost fainted. Stock trading requires commissions, which is another huge income.

However, Xi Ligong quickly calmed down because he suddenly remembered that apart from the Shanghai Stock Exchange, which was owned by a foreign company, there was no second stock exchange in the country, let alone large enterprises that issued stocks.

Although there are companies and enterprises with several or even dozens or hundreds of people as shareholders, ordinary people cannot buy and sell shares at will. If they want to trade, they have to transfer large amounts privately.

As if knowing what Xi Ligong was thinking, Teng Yuzao then spoke to Zhou Xuexi, Huang Chujiu, Ning Xingpu and others.

"All of your companies must be listed on our exchange. Not only can listing help companies raise the necessary development funds, but we can also sell smaller companies through the exchange, retaining only appropriate shares and collecting dividends."

Teng Yuzao looked at Huang Chujiu and said, "Even the Zhili Construction Company can also publicly offer shares at a premium. For example, your company can issue 2 million shares with the sole planning and construction of Tianjin New City as its capital. You can offer 1 million shares at a premium and sell each share at 50 taels. You will get 50 million taels of silver. Do you still need to borrow money from Yucheng?"

Teng Yuzao's words made everyone open their mouths speechless. Xi Ligong and Huang Chujiu were excited, while the others were shocked.

Without a single cent, you want people to shell out a large amount of money to buy the stock of this company which has no capital at all. Isn't this wishful thinking?
To put it more bluntly, this is a pure act of getting something for nothing.

After a long time, Huang Chujiu stood up with trembling lips, bowed deeply to Teng Yuzhao, and spoke excitedly.

"You are the Guan Zhong and Fan Li of our time, the living God of Wealth. Your brilliant ideas and strategies make me, a businessman with more than 20 years of experience, ashamed!"

"Marshal, as long as you issue a notice in the name of the Governor-General of Zhili to plan and build the new city of Tianjin, sign your name, and publish it in the newspaper, I can guarantee that the new city of Tianjin will be built according to your requirements without you having to pay a penny."

Teng Yuzao smiled and said, "That's no problem, but you have to build the new city as soon as possible. I'm also waiting to buy a dozen villas with gardens in it."

Although Zhou Xuexi was still frowning in thought, Xu Shichang could not help but asked Huang Chujiu in confusion, "Mr. Chujiu, do you think this method will work?" Yang Shixiang also asked in surprise, "Is there anyone willing to pay money to buy the stock of your company that has no capital at all, so that you can use their 50 million taels of silver to make money for nothing, and then give them dividends? Don't they worry about their capital?"

Huang Chujiu said with excitement, his face flushed, "Mr. Kikuto, it can be done! It can definitely be done!"

Then someone danced with joy and said to Yang Shixiang, "Mr. Lianfu, you are wrong. My company is not without capital. The big project of this new city is my capital. Only my company can decide who can participate in this new city. Even after it is built, anyone who buys real estate must buy it from my company. This is my capital."

"As for them worrying about their principal, that is even more impossible. Not to mention that there will be a large number of buildings and houses in the new city, even the foreign-style villas that the Marshal mentioned will require them to return their capital."

Huang Chujiu continued excitedly, "Mr. Lianfu, it's clean and beautiful. There are rickshaws when you go out. If you want to buy new and fashionable things, you can find them in department stores. All the roads are cement, and there are green trees and green grass everywhere. In such a city, a beautiful western-style villa with a garden, heating, and a toilet is priced at 100,000. Do you think the sons of princes and ministers in the capital will buy it? Will those doing business in Tianjin buy it?"

"Even those wealthy nobles and businessmen who buy cars will want to live here. If they operate well, it is not difficult to buy a villa for 100,000 or 200,000 yuan. Especially if the Marshal also buys a house here, it will definitely attract more wealthy people to rush to buy it."

"Don't even mention 50 million taels of silver. After this new city is built, not only will it not cost any money, it will also make the Marshal 100 million or 200 million, or even more, which is not a problem!"

Seeing that his words had made Xu Shichang and Yang Shixiang open their mouths in surprise, Huang Chujiu did not bother to explain to him anymore and said to Teng Yuzhao.

"Marshal, leave the issue of the share offering to me. We don't need to start with 2 million shares. 10,000 shares will be enough in the early stage. We can take out 5,000 shares for external offering at 20,000 per share. In three years at most, I can build the entire new city. Just wait and see!"

"Twenty thousand! I'll mortgage all my former properties, and I should be able to raise one million. I'll pre-order fifty shares myself."

Huang Chujiu's words surprised everyone, including Teng Yuzao. 20,000 per share, that's 100 million! Moreover, Huang Chujiu actually took out 1 million to subscribe for shares.

Zhou Xuexi, who had been frowning in thought, suddenly said, "I'll order thirty shares first!"

Zhou Xuexi's words surprised Xu Shichang and Yang Shixiang, and even Teng Yuzao secretly admired Zhou Xuexi's courage.

According to the dividend distribution standards set by Teng Yuzhao, Xi Ligong, Zhou Xuexi, Ning Xingpu and Huang Chujiu, Zhou Xuexi received the most last year, mainly due to the fact that several products were selling well and foreigners were buying them in large quantities. This allowed Zhou Xuexi to receive nearly 400,000 taels of silver, which he took out all at once. If it was not enough, he would probably go back to his family to get more.

Xi Ligong also said hurriedly, "My father and I have agreed on 200 shares, and Aurora Investment and Development Bank has agreed on 2,000 shares."

Ning Xingpu, who had come to his senses, also said hurriedly, "I'll order forty shares."

Seeing these people rushing to reserve shares, Teng Yuzao couldn't help but feel moved. He said to Xi Ligong, "Yucheng, I will use the factories in Shanghai as collateral. You can see how much money the Aurora Investment and Development Bank can lend me. Please help me reserve shares in Cuojiu."

Xu Shichang and Yang Shixiang, who were already stunned, were shocked again. According to Teng Yuzhao, although the "Aurora Investment and Development Bank" was under his name, he had just said that he would not take a single tael of silver from the "Aurora Investment and Development Bank". It seemed that this was true.

In particular, Teng Yuzao actually wanted to use those factories that made a lot of money as collateral to buy the stocks of the "Zhili Construction Company" which had not yet appeared. How could this not surprise them?

Xi Ligong thought for a moment and said, "I dare to lend you 2 million yuan for any of your factories as collateral. It depends on how many shares you want to reserve."

"Let's set it at 200. Afterwards, you and Jizhi can go through the mortgage procedures."

Teng Yuzao then said to Huang Chujiu, "Take out 20 shares from my 200 shares and register them in the names of Lianfu and Juren respectively, with 10 shares each. However, their shares must be kept confidential, and the shares I have reserved must also be kept confidential to avoid unnecessary suspicion."

"However, to give you a boost, I'll just tell everyone that I bought ten shares."

Then, Teng Yuzao smiled and said to the shocked Yang Shixiang and Xu Shichang, "Don't refuse. I'm not trying to bribe you. I can't afford to bribe you with this little money. This is just a little reward for your hard work."

The two wanted to decline, but then they thought that if they did, it might make Teng Yuzhao suspicious.

Moreover, they also thought that Teng Yuzao was not short of money, and these shares would definitely be given to other people besides the two of them, such as some of his trusted core generals. When Yang Shixiang and Xu Shichang thought of this, they looked at each other and hurriedly stood up to thank Teng Yuzao.

In just a short while, 2,520 shares were determined, which is 50 million!
This made Xu Shichang and Yang Shixiang, who didn't know the truth about the "Aurora Investment and Development Bank", secretly shocked. Xi Ligong easily took out 40 million taels, which made them believe that Teng Yuzao's words just now were a little obscure. Teng Yuzao intercepted a lot of money from the Boxer Rebellion looting the capital.

However, since Teng Yuzao has already stated that he will not take money from the Aurora Investment and Development Bank, and the Aurora Investment and Development Bank belongs to the Vanguard Army, this makes the two feel a little relieved.

Although it was getting late, the high-spirited Teng Yuzao continued his conversation.

"Mr. Lian, I estimate that due to our concessions, the peace talks will soon be concluded. Please tell your brother that if he is willing to come, I will temporarily appoint him as the general manager of the Beiyang Railway Supervisory Office, and all the planned railways will be managed by him."

"Related preparation and construction methods can refer to the model of Zhili Construction Company"

(End of this chapter)