Qing Yao

Chapter 370 This is how debts are collected.

Is it okay to borrow from loan sharks?

Definitely can't lend it!
But if we don't lend money, how will the government operate, how will the scholars' subsidies be paid, and how will a large group of people eat?

Anhui has just suffered a major disaster, and the provincial treasury is indeed insufficient. The provincial education commissioner is well aware of this.

Therefore, even though he knew Zhao An was still making things difficult for him, he couldn't report it to his superiors due to procedural issues.

So all levels of government in Anhui are tightening their belts, but can't your education administration set an example?
The difficulties are objective, but what difficulties cannot be overcome?
Can we grit our teeth and figure out a way to make it through two or three months?

Besides, the accounts of your educational administration office may not be without problems.

Being clean oneself does not mean that those below are clean. If Zhao An really uses the pretext of auditing accounts to create a case of embezzlement in the education department, can the education official, as the "leader," escape responsibility?

Thinking of those poor students who had to sell their calligraphy to make a living, the Education Commissioner felt even worse. He had heard about the dangers of high profits in the capital, and perhaps his old friends from the same year were buried in those "official graves" outside the city.

Even though he was a renowned scholar of the province, he dared not touch such high profits.

Zhao An understood this, which is why he offered a suggestion that could dispel the academician's suspicions: you lend, I'll guarantee it.

With the provincial governor acting as guarantor, things became much simpler.

The Education Bureau did not have the power to collect taxes, but the Provincial Governor's Office did.

Even if you, the Education Commissioner, can't repay the debt, as long as the Provincial Governor guarantees it, the bank will only seek repayment from the Provincial Governor, not from you, the impoverished Education Commissioner.

"Tell the people at the money shop that Lord Xu is a literary master of the province, and this loan is for the benefit of all the scholars in the province, not for his own use. Tell them to lower the interest rate and not to offer any discounts or rebates. Consider it a favor to my provincial governor's office."

Zhao An was speaking to Lao Song. To make the Education Commissioner willingly fall into the trap, he added, "By the way, have the provincial treasury issue a document stating that the provincial treasury will cover Lord Xu's loan."

What does that mean?

In later generations, this would mean encouraging officials to borrow money from entrepreneurs, with the government covering the losses or local government financing vehicles providing land to settle the debts.

In any case, public trust is there for all to see.

Anyone can close a door, but the government can't!
Old Song naturally cooperated by asking the still hesitant Education Commissioner how much he intended to borrow, and gave a rather considerate amount: at least 50,000 taels.

The 50,000 taels, besides covering the basic expenses of the education administration office, also includes subsidies for the prefectural and county schools below, so it should be sufficient.

Of course, this also includes the food, clothing, and daily necessities of the academician himself, his family, and his entourage.

We can't really let the students be so poor that they can't even afford meat.

"Rest assured, Lord Xu, one month! I will definitely resolve your yamen's expenses in one month. At that time, you can use the money to repay the bank."

Zhao An reassured the hesitant academic official that the loan wouldn't take too long, just a month would suffice.

All problems can be solved after a month.

Upon hearing that the loan was for only one month, and that Zhao An had even issued a document from the provincial treasury to cover the shortfall, and that he himself was acting as guarantor in his capacity as provincial governor, the provincial education commissioner was immediately tempted. However, still somewhat uneasy, he stood up and asked, "Does Your Excellency keep your word?"

"If I go back on my word, I will be letting down the Emperor, Lord Xu, the millions of students in Anhui, and my official hat!"

Zhao An took off his official hat and slowly placed it on the table. He didn't say anything else, but just gave the double-eyed peacock feather a meaningful look.

This move was undoubtedly a clear message to the Provincial Education Commissioner: "With this double-eyed peacock feather, you have no right to doubt me. With this double-eyed peacock feather, I, Zhao Youlu, would never lie to you!"

How can a mere fifty thousand taels compare to my future career prospects in officialdom?
Beset by internal and external troubles, the student leader of the university ultimately chose to believe, because he had no other choice.

They slunk back like this, with no solution to the problems in the government office. Were they really going to paralyze the education administration of the entire province and let those students cause a ruckus to go to the capital?

If this gets out of hand, regardless of whether he's in the right or not, the court will think you're incompetent.

The specific loan matters were handled by Lao Song, and the money shop he introduced was none other than Zhao An's own Xianfeng Bank.

Old Song later expressed his bewilderment at this, saying that if Xu Zongshi was truly burdened with a huge debt and forced to join the loan shark gang, then he could have simply borrowed from other money shops instead of his own.

Furthermore, if it's a trap, why guarantee the other party that the funds will be disbursed in a month?

Then all this setup was for nothing.

"I said I would resolve his funding issue in a month, but I said I wouldn't give him the money in a month."

Zhao An chuckled, "Tomorrow, take Lord Xu to Xiaolou to complete the formalities. Deposit 50,000 taels of silver into his account, with interest calculated at one percent, for a one-month loan period."

Old Song nodded: "And what about a month from now?"

Zhao An chuckled: "A month from now, have Xiao Lou come to collect the debt."

Old Song shook his head and said, "Master Xu will definitely come to make trouble for you, sir."

"I'm going to Huaibei for an inspection tour in a month. I won't be in the provincial capital. Where will he come to make trouble for me?"

Zhao An looked like a rogue, "We'll have Xiao Lou collect the debt from Master Xu every day. The interest will double for every day he's late, plus his late payment fees, we'll make it as high as possible."

"Sir, what is a late payment fee?"

Old Song expressed his confusion about this.

Zhao An gave a brief explanation, saying it was equivalent to a fine.

Old Song said "Oh," then asked doubtfully, "Sir, if we do it this way, Xu still won't have the money to pay back. If he can't pay back our 50,000 taels, won't that be a complete waste?"

"How could it be a waste? We can always use new money to pay off old debts later."

Zhao An picked up the now-cold teacup, took a sip, and instructed Old Song: "When the time comes, have Xiao Lou bring Manager Shi from Hengli Money Exchange in Yangzhou with him. Ask Lord Xu to borrow money from Hengli Money Exchange to repay our Xianfeng Bank. That way, we'll be successfully out of trouble."
"Manager Shi, please process this 50,000 taels loan, including interest and penalties, into 70,000 or 80,000 taels. If Master Xu cannot repay it by the due date, have Manager Shi transfer Master Xu's debt to other banks within the Imperial Household Department for restructuring, so that Master Xu will never be able to repay it in his lifetime."

That's a really insidious method.

Old Song felt uneasy and frowned slightly, saying, "Sir, what if the man surnamed Xu refuses to repay this money?"

"He won't pay? I'll expose his contact list!"

Zhao An snorted, "Have people make a scene in front of his education office every day, throw paint and paint big characters, won't you? Make a scene so that everyone in Anqing, no, in the whole of Anhui, whether they are officials or ordinary people, knows that Master Xu owes money and won't pay it back!"

After saying that, he said, "I will inform the provincial judicial authorities about this matter. Those who cause trouble need not worry. At most, they will just go through the motions. They will be arrested one day and released the next to continue causing trouble until this old master obediently boards our ship."

(End of this chapter)