Rise of the 1630s South America

Chapter 798 Financial Market ([-])

"Since the war ended more than a year ago, this market has become more and more prosperous." On February 1650, 2, Shao Yuanyi sat in the living room of the state-owned guest house in Xihu County, sipping tea with his eyes closed, while still listening to the people's arguments.The tea is not a rare and expensive tea, but a popular local barley tea, but Shao Yuanyi is not a person who pays attention to enjoyment, so he has always tasted it with peace of mind.

"Two counties, eleven townships, sixty-five thousand households, and dozens of workshops in the Nanyazihu ​​area. Isn't that the only trading market? Can it not be prosperous?" Putonghua said, "So many workshops need money, but Naluoshizi United Industrial Credit Bank can't lend enough money. I heard that most of them have been used by railway companies and shipyards to expand their operations. Some small rural workshops, they I wouldn't even pay attention to it - and I really don't have any money - so it's normal that this bond market, which is designed to solve capital problems for small workshops, is booming day by day. After all, the economic situation looks okay now Well, it’s a thriving group, and everyone is busy expanding production.”

These two people are right, although the government has been trying its best to curb the degree of inflation in the east coast, and strictly approves projects with huge investments.However, with the deepening of domestic construction and a series of impacts caused by the government's decision to expand the proportion of immigrants, the United Industrial Credit Bank, which mainly undertakes financial services for domestic industries on the east coast, still released a large amount of money. , For example, loans to large enterprises such as the three major shipyards, the Central Railway Company, the Southern Railway Company, the Tieling Special Steel Plant, the First Heavy Machinery Plant, and the Western Forging Plant.

After these funds were released, the credit line of the United Industrial Credit Bank was completely used up, so there was nothing they could do to help many private small businesses in the country who were also desperate for funds.However, most of these enterprises are supporting enterprises of major state-owned factories, or emerging enterprises that have emerged in recent years (such as soybean oil, soybean cake, flour, etc. production enterprises), and their influence is not very small, so they cannot be ignored casually. , still have to manage it.

However, once it is decided to manage them, it is necessary to solve the crucial problem of lack of funds for them, but what the government lacks most now is money!Printing money is not advisable, because it will push the level of inflation that has already started to rise again to a new level. In this case, it is the best choice for the government to maximize the extraction and use of the massive funds deposited in the private sector.And this, in fact, is also the original intention of this bond trading market, which was established in Xihu Town, Xihu County, to solve capital problems for private small enterprises.

Of course, this bond trading market is more than it seems.In addition to undertaking business such as bond issuance of public and private enterprises, it also undertakes functions such as bill discount market and securities trading market.Let’s talk about the bill discount market first, which is especially important for some merchants who purchase agricultural and animal husbandry products in the countryside all the year round, because rural farmers—especially those from Daming—out of deep-rooted concepts, are not interested in various denominations. Bank acceptance bills and other commercial bills that can be used as currency in Europe are very unpopular. Perhaps the notorious Daming Treasure Banknotes have given everyone a psychological shadow, so they are only interested in hard currencies such as copper coins and silver coins. The acceptance of commercial bills is not high, which requires hawkers who go to the countryside to harvest a large amount of cash with them.

Gao Jinzhong and Agnelli from Rabbit Hole Flour Workshop in Hekou Township, Zhenhai County are such businessmen.The conversation Shao Yuanyi heard just now came from Gao Jinzhong, and now he said to the eloquent man on the opposite side: "Old Zhai, it's useless not to talk about it, I'm not interested in this market. I came here today because I heard that undue bonds and bills of exchange can be discounted here. I have a lot of these bills in my hand, which are all made by exporting flour to the national grain reserve. Seeing that the summer grain is on the market Now, I have to raise a sum of cash to go to the countryside to collect grain, I heard that you know a lot of people here, so you have to help me find a way."

"Now that the economic situation is improving, the market is short of funds, and everyone is making every effort to expand production. Therefore, the discount rate has been rising steadily in the past year or so. Forget it, you must understand the basic situation, I won't say much. Come with me. Those businessmen from the "Jining Gang" are sitting in the middle. Let me introduce you. Whoever wants to issue bonds to raise funds can also find a way with them. They also provide loan guarantees for others. In short, they will do whatever business makes money. Alright, don’t be dazed, come with me.” With the middle-aged The voice of the person faded away, and Gao Jinzhong and others followed into the room.

The Rabbit Hole Flour Factory has sprung up in recent years. It has killed many flour processing workshops and almost monopolized the business of the entire Zhenhai County. In addition, they also provide flour for the construction team under the Ministry of Communications who built the No. [-] highway. It can be said that their business is booming.Therefore, it is not so surprising that they have accumulated a large pile of commercial paper, and such a large amount can only be taken by the "Jining Gang" businessmen sitting in the inner room (commonly known as the "big household room") Well, for retail bill discount merchants outside, those who can only undertake business below [-] yuan are not qualified to be honest.

Most of the commercial papers Shao Yuanyi had in hand were bonds, occasionally mixed with a few unregistered stock subscription certificates, all of which were in his hands for people who needed money urgently.Fortunately for the bonds, the shares of the Southern Railway Company totaling several hundred yuan were like hot potatoes in his hands, and he urgently needed to sell them for cash.Because many people are saying that Southern Railway Company cannot make profits in recent years, and it will continue to suffer huge losses and is on the verge of bankruptcy. to the point.

Shao Yuanyi was very worried about these stocks at hand. At the beginning, he accepted these deadly stock subscription certificates of Southern Railway Company in a moment of resignation, and went to the relevant department to file a change of ownership (South Railway Company stock is a registered stock). It was a poor job, and it was completely smashed in the hand.Today, he came to the West Lake Market with a total of several hundred yuan of stocks, just to see if there was a chance to cash in, and he would not hesitate to lose even a small sum of money for this.

But before selling the stock, let's cash out some of the commercial paper on hand.This is not difficult, Shao Yuanyi only ran for about half an hour, met some familiar bill discount service providers, and quickly sold a few St. Where did the drunken sailor who gave it to him get those bills).

After eating a delicious Ottoman-style mutton pilaf, at one o'clock in the afternoon, Shao Yuanyi once again stepped into the gate of the West Lake Bond Exchange, ready to try his luck to see if he could get the long-standing stockpile of the Southern Railway Company The stock is transferred.Unexpectedly, at this time, a piece of news from unknown sources suddenly spread among the crowd at the entrance of the trading market: "The Southern Railway Company came forward a few days ago and negotiated with the Spaniards about smuggling to the Peruvian market. Among them, the Southern Railway Company will act as a monopoly agent for goods on the East Coast, and will surely reap huge profits."

This unknown news made Shao Yuanyi dizzy all of a sudden. After a long time, he suddenly realized that the stock price of Nantie Company might be going up sharply!Sure enough, in just a short while, the businessmen who didn't want to buy the stocks they had in the morning gathered around like sharks smelling fishy, ​​and asked Shao Yuanyi whether he was still willing to sell the shares of the Southern Railway Company. .If they are willing, they will now go to the fair share holders in the West Lake Trading Market to conduct justice and officially transfer this part of the stock. For this reason, they will give Shao Yuanyi a "more sincere" consideration.

However, now Shao Yuanyi has recovered from the depression in the morning. After careful consideration, he decisively declined these people's request to buy stocks, and made it clear that he would not sell them!Then, I hurriedly packed up my things, bought a boat ticket back to Mucaoling, and went home.He now has a vague feeling that the future prospects of a giant Concern company with a deep background and a commitment to the country's grand strategy may be limitless. At that time, the stock price will definitely skyrocket. Investors who bought the company's stock at this stage , will definitely get rich rewards in the future.There is no doubt that it is only a matter of time!Therefore, Shao Yuanyi decided not to sell stocks now, didn't he put hundreds of dollars of funds on hand?I don't care, I have a lot of money, so I can afford it!

After Shao Yuanyi left, this increasingly prosperous trading market was still carrying out various businesses at a leisurely pace, providing sufficient nutrients for the development of the private economy on the east coast.Recently, there have been rumors from the upper-level Ministry of Finance, saying that with the typical successful operation of the West Lake bond trading market, the government is preparing to give greater support to this market.For example, they will allow the West Lake bond exchange market entity (the national financial institution) to carry out short-term peer-to-peer lending business with other financial institutions (such as companies under the Ministry of Finance that undertake stock and bond sales, and some banks).

The introduction of this policy is bound to greatly improve the capital situation of the domestic bill discount market on the east coast, and at the same time enable the West Lake bond trading market to achieve better and faster development.And as long as the government's supervision is in place, I believe that the development of this financial market will in turn promote the development of domestic industry and agriculture on the east coast, which can be said to be mutually beneficial.

(End of this chapter)