The Soldier of the Red Mansion

Chapter 375 Exceptional Skill
Wang Xin was completely taken aback when Xue Baochai appeared before him. He was somewhat confused, but he quickly realized that it was probably because of Zhang Dehui's matter and his appointment.

There's no need to make things difficult for the other party; even if a deal falls through, goodwill should remain.

Wang Xin invited Qingwen to entertain them. The two were familiar with each other, and there were no outsiders present. Seeing Wang Xin's gentle demeanor as she remembered, Xue Baochai glanced gratefully at Qingwen, then took out a pawn ticket.

"If Uncle Xin doesn't mind, please accept this pawn ticket from our Xue family pawnshop."

Xue Baochai tried to curry favor with Lin Daiyu, forcing herself to speak, fearing that Wang Xin would refuse and she wouldn't be able to hold on any longer. Her heart was pounding.

Wang Xin took it and looked at it.

One hundred thousand taels!
I couldn't help but take another look at Xue Baochai; what a grand gesture!

"Are you in control?"

“I have convinced my mother that the affairs of the counter will be handled by the head manager from now on. For now, it is still Zhang Dehui. If Zhang Dehui gets too old and can no longer run around, we will select another person from the other head managers of the counter. Only the hiring and retention of the accountant and other managers will be the responsibility of the owner himself.”

"The idea of ​​spending 100,000 taels of silver wasn't just mine," Xue Baochai said, lowering her head slightly and blushing. "It was also the Grand Manager's idea."

Wang Xin suddenly realized.

Aunt Xue has completely given up on Xue Pan.

It's not that she didn't want this son, but that she no longer expected him to take over the family business. There must have been more than just her own reasons for this; Xue Baochai probably played a significant role.

That's why they say only women can handle women.

In the past, no matter how bad Xue Pan was, Aunt Xue still relied on her son. But ever since Xue Pan got married, she has been more and more disappointed in him, and has completely given up on him.

Before the Jia family fell into decline, Aunt Xue was always in charge of the Xue family's main branch. Similarly, she nodded behind the scenes, while the shopkeepers in front of the house offered advice and suggestions. After a direction or decision was made, they would then discuss it with Aunt Xue, who would agree or disagree.

Xue Pan was mostly absent, and even when he was present, he wouldn't listen patiently.

Xue Baochai was present most of the time.

By staying by her mother's side and listening to the shopkeepers' analyses in the courtyard, and occasionally whispering advice to her mother, Aunt Xue developed the habit of listening to her daughter.

Later, the Jia family fell into ruin, and the Xue family's main branch business declined day by day. Without any support, Aunt Xue could only rely on her son, hoping that he would take over the family business.

The Jia family has not fallen into ruin, and thanks to their own efforts, the Xue family's eldest branch is doing quite well.

Aunt Xue naturally felt more confident.

But.

Wang Xin looked at the pawn ticket for 100,000 taels of silver. The significance behind this was not simple. "If I want to withdraw this 100,000 taels of silver, I have to do it in the capital?"

"You can withdraw it in the capital, or you can wait a while and withdraw it from Datong." Xue Baochai felt a slight sense of relief. Wang Xin agreed to accept the silver, but he didn't dare to relax completely. He actually saw the key point at a glance.

Xue Baochai smiled first, her eyes sparkling and dazzling, "The shopkeepers at the counter want to open a pawnshop in Datong. However, the pawnshop also provides acceptance, so the money pawned or deposited in the capital can be withdrawn in Datong, and vice versa. This will make it more convenient for everyone to do business and reduce the risks along the way. With Uncle Xin's discerning eye, he must know that this is a good thing."

Of course it's a good thing.

Money is always money; the difference lies in whether it applies to an individual or to the market.

For an individual, hiding money is their personal wealth, but for the market, it's like having its energy drained.

"The coffin seller owed the silk seller ten taels of silver, the silk seller owed the cook ten taels of silver, the cook owed the butcher ten taels of silver, and the butcher owed the coffin seller ten taels of silver. Because the butcher had no money, he owed him, and he owed him, and everyone's business was in trouble."

This set of financial anecdotes has been around for many years.

It's very simplistic, and looks like a childish joke.

In fact, the greatest truths are the simplest.

Wang Xin saw Xue Baochai's difficulties and her efforts. He always supported those who worked hard for meaningful things; it just depended on how much Xue Baochai could understand.

“I appeared, and I lent ten taels of silver to the coffin seller. The coffin seller returned it to the silk seller, the silk seller returned it to the cook, the cook returned it to the butcher, the butcher returned it to the coffin seller, and the coffin seller returned it to me. Everyone benefited.”

Wang Xin did not answer Xue Baochai's question directly, but instead told her a story first.

If Xue Baochai could understand the pawn ticket issue, then she could understand this story; otherwise, the pawn ticket issue should have been the shopkeepers' idea, not Xue Baochai's.

I want to get into ticketing.

It's not that it's impossible, but you have to overcome your own hurdles and gain the trust of someone you trust.

Commerce outside Datong Pass is booming, but it still can't withstand any setbacks. If a crisis occurs and it falls into decline, although it may recover in ten or twenty years, can we afford to wait that long?
Twenty years.

The cucumber dish is all cold.

How many twenty-year periods do I have?
"Uncle Xin, do you mean that money only counts as money when it circulates?" Before long, Xue Baochai spoke with increasing confidence, and the way she looked at Wang Xin changed.

As expected of Xue Baochai.

“For an individual, saving money is his personal wealth, but for the market economy, it is a destructive act that drains its energy. So the richer people are, the more money they save, and the market economy will be completely paralyzed, and ordinary people will become poorer and poorer.”

"On the contrary, silver only circulates in the market, and the faster it circulates, the more energy it acquires."

"Like those people just now, the same ten taels of silver circulates within their circle. The faster it spins, the more money they earn. Everyone can eat more meat, wear more beautiful clothes, and buy more coffins."

Wang Xin deliberately said this at the end.

"Pfft."

Xue Baochai was indeed amused. Her family owned a coffin shop, and she laughed, "Uncle Xin is really funny. Why would a perfectly good family need so many coffins?"

Wang Xin smiled.

He understood that Xue Baochai understood the true meaning behind his words, but Xue Baochai pretended not to understand. She also knew that she understood what she was pretending not to understand, and he also knew that she knew what she was pretending not to understand.

She's a clever woman; she knows how to create the right atmosphere.

Even though everyone knows it, they still enjoy it; in short, they are very good at providing emotional value.

“You’re using pawnbroking as a pretext to get silver bills accepted. This is good for the market.” Wang Xin got back to the point and said seriously, “Although the Great Zhou is beset by internal and external troubles, it has a vast territory. The Jiangnan region is still prosperous. For example, Datong, a city of 100,000 prefectures, is a poor border prefecture, but it is unparalleled in the world. Many countries’ capitals are not as good as it. Therefore, the Great Zhou has an immeasurable market potential.”

Xue Baochai's smile faded, and she leaned slightly forward, her fair face smooth as jade, resembling an obedient female student.

If it were just for show, how could Wang Xin have the patience? But Xue Baochai could indeed understand, which satisfied Wang Xin. "Therefore, the Great Zhou lacks silver and does not have the Jiaozi of the Song Dynasty. As a result, the market has always lacked a substitute with similar monetary attributes, which has greatly affected the development of the market. Therefore, the method you came up with is not only correct, but also an inevitable trend in the future development of things, unless there is no development or regression."

Why did the paper money of the Song Dynasty become so popular, and why did even overseas countries like Japan widely store it as currency? It was not only the world's earliest paper money, but also the most widely circulated credit currency in ancient times.

Because Jiaozi was invented by merchants.

As commerce flourished, the drawbacks of traditional currency became increasingly inadequate to keep up with economic development. As a result, merchants began to trade based on trust, and paper money was introduced, with agreements made to redeem each other upon maturity. This led to the widespread use of paper money, known as Jiaozi.

This is a correct economic development approach that meets market demands.

Therefore, Jiaozi (paper money) circulated more and more widely, eventually becoming the legal tender of the Song Dynasty.

Later, the Song Dynasty court saw the potential profits and established the Yizhou Paper Money Office, with a capital of 360,000 strings of cash as reserves. The first issuance of "official paper money" amounted to 1.26 million strings of cash, with reserves accounting for nearly 30%.

At the same time, private exchanges of money were still preserved among the people.

The people are free to choose; they will choose whoever has the highest credibility.

What can the government accomplish?
The Song Dynasty government was equally ineffective; the official paper money was quickly over-issued, leading to its rejection by the common people and its collapse within a few years. Later, the Song Dynasty tried several times with various methods, but all the official paper money it produced failed.

And it's always for the same reason—excessive issuance.

The private connections among merchants, however, have always been recognized by the market. The achievements of Song Dynasty merchants predate those of Sweden, the first Western country to issue paper money, by more than six hundred years.

What is history?
History is a mirror.

No one should think they are better than history; Wang Xin never believed that.

Even someone as powerful as Zhu Yuanzhang only believed in the historical events that were favorable to him, and disregarded those he considered unfavorable. As a result, the Ming Dynasty's paper money was even worse than the Song Dynasty's official paper money.

The Song Dynasty court at least did not prohibit the common people from doing it; if the court itself couldn't do it, the common people certainly couldn't either.

Finally the Ming Dynasty.

The Ming Dynasty's paper money was the most ruthless means by which the imperial court extracted wealth from the people.

This is also the fundamental reason why the Ming Dynasty lost its monetary power. No matter how much silver flowed in, the total amount of these traditional currencies could not meet the development needs of the Ming Dynasty's market.

The better the Ming Dynasty developed, the greater the difficulties it faced, eventually leading to a vicious cycle.

Wang Xin certainly knew the benefits of grain coupons, but he didn't dare to promote them, not because he didn't trust himself, but because he didn't trust power.

Paper tickets.

Changes can only be made based on market demand, not driven by power; otherwise, there will only be one outcome: complete failure, bringing disaster to the country and its people.

to date.

Wang Xincai attempted to create a grain coupon system, specifically for the military, which was essentially a form of de facto rationing and had little market economic value.

Therefore, Wang Xin did not refuse, but hoped that Xue Baochai could understand how important this matter was.

Because it is so important, I will absolutely not allow myself to act recklessly.

Of course.

I'm not afraid to do whatever I want.

If the Xue family had no reputation, no one would use their banknotes. The Xue family could only gain trust through their business reputation. So, people who dared to entrust money to the Xue family did so because they trusted them implicitly and were confident in their ability to do so.

As for the future.

There will likely be more and more banks issuing bank drafts, and inevitably some of them will run into problems.

But the market is like water.

It will always adjust itself and return to calm.

On the contrary, arbitrarily prohibiting various leaks often creates high pressure, eventually leading to a cataclysmic disaster, followed by turbulent upheaval and then a return to calm in the midst of annihilation.

This is the market, and also the natural world of economics.

The so-called conquest of nature is such an ignorant and ridiculous declaration.

"Uncle Xin's vision and insights are truly eye-opening." Xue Baochai was completely convinced, her eyes filled with admiration as she looked at Wang Xin.

Wang Xin smiled and said, "The appearance of grain coupons is a great benefit to commerce outside Datong Pass. However, whether it can be promoted depends on your Xue family. If people don't trust it, no matter how hard you try, it will be useless."

Xue Baochai nodded, "The shopkeepers at the counter have been doing business all their lives, and their pursuit of integrity is something even their employers dare not violate."

After a pause, Xue Baochai continued, "This is also why our main branch has been struggling all these years, but the Grand Manager and his team have still been able to maintain their reputation outside, because the reputation of our Xue family has been accumulated by several generations over nearly a hundred years."

Yes.

The reputation accumulated over nearly a century is the most likely reason why the Xue family was able to successfully issue silver notes.

Even if it's just myself.

Establishing a bank draft bank in Datong would not be successful for more than a decade unless it was promoted with strong power.

A century of reputation and extraordinary strength.

This is the largest amount of capital.

well.

Wang Xin no longer hesitated.

Xue Yan, that old rascal, has miscalculated. Instead of bringing down the main branch of the family, he has paved the way for Xue Baochai. This girl is clever, resourceful, and cunning. With the two families fighting each other, he can finally relax.

Business is different from politics.

The more competitive a business is, the more prosperous it will become.

Companies that truly grow through the market possess formidable and visibly powerful fighting capabilities.

On the contrary, those companies that grow up in a closed environment by relying on power, besides being ruthless in exploiting the people, are like slaves to the outside world, extremely incompetent.

Of course.

The business grew bigger and bigger, eventually leading to a monopoly in the industry.

It can also become a malignant tumor.

Just like the powerful and wealthy.

The powerful elites were a progressive force for the feudal slave owners at the time. However, after the feudal slave owners disappeared, the powerful elites gradually became a cancer, so the power of the powerful elites was restricted, leading to the birth of the imperial examination system.

The same is true.

What's the difference between businessmen and the powerful? Both should be restricted.

The powerful and wealthy must have their power restricted.

What should be restricted in business?

Looking at Xue Baochai, Wang Xin couldn't help but fall into deep thought, considering how to make his move in advance.

Qingwen was completely bewildered, as if she were listening to a foreign language. Finally, she realized that Wang Xin had been staring at Xue Baochai, making Xue Baochai's face turn as red as if dripping blood, and she lowered her head, at a loss for what to do.

"Lord Xin."

Qingwen cried out unhappily.

Wang Xin then came to his senses and laughed, "I'll accept the 100,000 taels of silver. Let Zhang Dehui go back to Datong. I won't interfere with your Xue family's banknote business. Let them earn the recognition of other merchants through their own abilities."

Ordinary people don't have much money, let alone need banknotes.

Merchants are the ones who truly need banknotes.

In business, it's a purely commercial matter, and I don't need to get involved at all. It's just that the Great Zhou inherited the Great Ming's rule and strictly controlled the common people. Which merchant would dare to create something as new as banknotes? Even if nothing goes wrong for the time being, what if one day some official slaps his forehead and thinks you've made a mistake? Then you've made a mistake.

Therefore, the eldest branch of the Xue family saw an opportunity and dared not mend the rift between the two sides, yet still managed to reap great benefits.

The Xue family's resources are indeed not to be underestimated.

Our greatest asset is the group of business talents we have cultivated.

(End of this chapter)