Rise of the 1630s South America

Chapter 907 Money Travel ([-])

"This month (February 1652), the lowest discount rate in the West Lake bond trading market has climbed to 2%. The 'Jining Gang' in the big family room is counting money and getting cramp." Ventura, the manager of the liner company, held a handful of bank acceptance bills in his hand, and said with a sense of indifference: "We industrialists work hard, but in the end our profits will be plucked by these despicable rentiers. Think about it." It's really uncomfortable."

The place where Ventura is located is a restaurant outside the trading market. The restaurant specializes in Ottoman-style food, such as grilled lamb chops, mutton pilaf, etc. Because of the good location and the large flow of people, the business is pretty good.Sitting with Ventura was Gao Jinzhong, who went to Mucaoling Township to harvest wheat a while ago. He temporarily returned to Xihu County because he ran out of funds, waiting for Agnelli to send the money he had agreed in advance.At this moment, he echoed and said: "Yes, these rentiers are getting rich at an unparalleled speed, but they have not created any social wealth, they have only successfully robbed public wealth..."

It is obvious that these two small and big business owners or managers have a gnashing attitude towards the "worms" in the West Lake bond market, because every time they go to this market to process bills because of the urgent need for funds for business development When doing discount business, they will always be slaughtered by these "big households". After a long time, it is certain that they will feel uncomfortable-why do we work so hard to earn money by doing business outside, but we have to send part of the profits to these people? Is it because they are naturally richer (bringing a lot of silver when they immigrated from the Ming Dynasty)?

But these two people are just complaining. If someone tells them that the market is going to be closed, they are probably the first to jump up and object.Nothing else, just because the usefulness of this market is still quite large: not only many people with good money provide discount services for various undue commercial papers, but also some investors with strong capital provide short-term discount services. Or long-term loans (but the conditions are quite harsh), and some corporate bonds can be issued here to attract funds from a large number of small and medium investors-of course, if the conditions are right, some large investors do not mind buying shares in some companies with development prospects. It is equivalent to an alternative stock investment market.

All in all, the function of this market is still quite powerful. If necessary, the large and small investors who are often active here can mobilize tens of millions of dollars in a short period of time. After 20 years of accumulation, the accumulation of private capital on the east coast has reached a considerable level.

The industrial development on the east coast is now very different from what it was 20 years ago.In some handicraft workshops at that time, the tools needed were so simple and cheap that people could manufacture goods in farmhouses-just like the industry in Europe today, even the larger handicraft workshops are just a lot of small ones. A collection of farmhouse-style workshops.This kind of workshop-style enterprise with extremely low threshold has provided great convenience for handicraftsmen with little capital to start a business. Low-threshold workshop-style enterprises founded by entrepreneurs are still common, and the situation is almost exactly the same as it was 20 years ago.

However, in those industries with a long history of development, with the increasingly fierce competition, industrial machine production has become commonplace.Newly designed production lines, heavily ordered machines, and industrial workers trained over the years all make the appearance of modern factories more and more different from traditional workshops.There is no doubt that the development of these enterprises requires a lot of funds, otherwise they will not be able to produce smoothly, but what many entrepreneurs lack is funds.In the past, when there was no bond trading market in West Lake, business owners in the South and North Yazihu ​​areas where private enterprises were concentrated either relied on long-term accumulation to grow their enterprises—but they often lost their opportunities in the fierce market competition—or they went to It is always difficult to borrow funds from acquainted large households, and the conditions are often relatively harsh.

With this market now, business owners who are in urgent need of development funds can seek guarantors in the market and then issue bonds publicly, which often greatly reduces their financing costs and enables companies to achieve better development—of course, The common people on the shore have also benefited from the increase in productivity, the increase in commodity output, and the reduction in prices; and for some entrepreneurs who do not pursue absolute control of the company, they can divide the company's equity into fixed shares. Number, and then publicly issued in the market at a certain price to attract foreign capital injection, so as to make the enterprise bigger and stronger as soon as possible.

In this regard, Gao Jinzhong's deadly rival Linhu Flour Mill is a good example.The original entrepreneurs of the factory have repeatedly issued additional shares to new investors in the West Lake bond market to obtain funds to order the latest high-standard milling production line, and quickly seized the market in this way, providing the company with a short period of time. It has created good conditions for rapid development and expansion.On the other hand, Gao Jinzhong and Agnelli, because they adhere to the traditional and conservative management style, Rabbit Hole Flour Mill is only willing to publicly issue bonds in the West Lake bond exchange market instead of diluting their own equity, so the development of the company has always been slow.

"Right now, the junior high school has to import tens of thousands of mouths every year. The business will get better and better in the future. Let's look at it a little bit. These people rob public wealth to get rich, but at least it doesn't seem too big for now. It's too much, and we urgently need a large sum of money for development, so let's bear with it." The two sighed for a long time, and finally Ventura took out a bag of premium Virginia shredded tobacco from his pocket, and asked Gao Jinzhong to smoke together.

After thinking about it for a while, Gao Jinzhong also agreed with Ventura's statement: "Now the first to seize the market, the future is bound to be limitless. Similarly, if you are eliminated in the competition now, it will not be so easy to stand up in the future. Yes. Damn Linhu Flour Mill, this time they issued additional shares to the group of "Qingzhou Gang" in Luocha County, and obtained more than 5000 yuan in new funds. I heard that they also obtained the new Authorization for the use of the six-roller milling machine, and has officially ordered a set, and the momentum of development will be very strong..."

The capital increase and share expansion of the Linhu Flour Mill mentioned by Gao Jinzhong just happened a while ago. At present, the application has been submitted to the management department of the West Lake Bond Exchange Market, and has entered the final approval stage. After the Ministry of Industry and the Ministry of Industry and Commerce issue approval documents, the West Lake bond market can be officially approved-this is one of the benefits that this market brings to private entrepreneurs, and it is convenient for financing.

Of course, the West Lake Bond Exchange Market has received far more than just one application at this stage. Gao Jinzhong and Ventura have already seen it in the notice posted at the gate of the market in the morning. The items that are waiting in line for approval include: Grass Ridge Meat The product factory privately issued 5000 shares (the funds raised were used to build a new ham processing line project), and the Luocha Seafood Processing Factory issued 5.5 yuan of ten-year corporate bonds (coupon rate 2000%) for 1 tons of whale meat processing line), Luoqia Textile Factory obtained a one-year loan of 5000 yuan from seven creditors (for the expansion of the second workshop of Persian silk production), Nanhai Fishery Company issued a seven-year corporate bond of [-] yuan (for Purchased several new-type ether refrigerated ships), Ma’s fruit industry loan of [-] yuan (used for the barren mountain fruit forest project), Xuji Dairy (newly established) publicly issued [-] shares to Xuji Oil Press (the proceeds were used for Tahebao Dairy Farm and Butter Cheese Production Line), etc., there are nearly ten large and small projects, which have effectively mobilized the huge amount of funds in the hands of rich private households and even ordinary investors in the East Coast Republic, promoted the rational allocation of resources, and thoroughly prospered The positive significance of opening up the domestic commodity market cannot be underestimated.

After all, if money is kept at home and cannot be eaten by the hungry or clothed by the cold, it is a dead thing and is of no use at all.Italians who are good at doing business know that "starting the next trip with the recovered money as soon as possible" is the best way to effectively allocate resources, and it is also the best way to increase the value of their assets.The Italians all know this truth. The time-traveling people come from modern times, and there is no reason not to be ignorant of the importance of the financial market known as "industrial lubricant". There were several major banks in the past, and the Qingdao financial market (with large amounts of funds) in the future. , foreign trade), and now there is the West Lake bond trading market (private funds), all of which are aimed at effectively mobilizing limited domestic resources, prospering industry and commerce as soon as possible, and making the country's productivity level develop faster.

The West Lake Bond Exchange Market has been well received by private workshop owners and small business owners in the past two or three years, because they can obtain public financing from the market more conveniently and quickly, without needing to resort to those vicious private lenders, which is effective. It reduces the cost of financing and promotes the development of industry.

If there is any improvement suggestion for this outstanding financial market, it is basically to hope that the government can recruit more professionals as soon as possible, increase the number of officials and clerks in this market, so that the financing applications of various projects can be approved as soon as possible, and the financing process can be accelerated. The velocity of funds.After all, in many cases, time waits for no one. The sooner the funds are in place, the sooner the project can start, the sooner the factory can see benefits, and the common people can enjoy a richer and cheaper consumer goods market. Of course, the government can also benefit from it. More taxes, this is obviously a win-win thing for everyone.

(End of this chapter)