Chapter 10 Controlling Money
The purpose of Zhu Cijiu convening everyone for a meeting was to let everyone communicate with each other, cooperate with each other, work together to develop together. Now Xu Erjue has a good start, so he naturally has to praise him and encourage him.
He praised: "Erjue said very well. This spirit of mutual cooperation is exactly what I want, and everyone should learn from him."
You can win the emperor's favor in just one sentence! How can you miss this opportunity? What is the most important thing in this day? It is not about how capable you are, how good your family background is, nor how much money you have. The most important thing is how the emperor views you.
If the emperor likes you, no matter how capable you are, no matter how poor you are, no matter how rich you are, you will be able to be brilliant and prosperous; if the emperor doesn’t like you, no matter how powerful you are, no matter how rich you are, no matter how rich you are, you will be finished immediately!
Just as Zhu Cijiu finished speaking, Sun Zhibing immediately responded: "Emperor, why not give all the gold and silver income from the Ming Dynasty Royal Machinery Industry Group to the Ming Dynasty Royal Rixing Bank and exchange it for Chongzheng Tongbao. In the future, the Ming Dynasty Royal Machinery Industry Group will try its best to use Chongzheng Tongbao!"
Zhu Cijing nodded with relief and said, "Yeah, okay, okay."
Zheng Chenggong was confused at this moment. He was just a report on behalf of his father Zheng Zhilong. He really didn't understand business matters very much. What should he do?
He gritted his teeth and learned from Sun Zhibing's tone: "Emperor, why not give all the gold and silver income from the Ming Dynasty Royal Western Trade to the Ming Dynasty Royal Rixing Bank and exchange it for Chongzheng Tongbao. In the future, the Ming Dynasty Royal Western Trade will try to use Chongzheng Tongbao as much as possible!"
Zhu Cijing nodded with relief and said, "Well, it's great, so everyone is a little troublesome, but the business of the Royal Rixing Bank of the Ming Dynasty can double the rise, which is the benefit of cooperation. However, you must also distinguish the occasion. You can try to use Chongzheng Tongbao in the vassal states of the Ming Dynasty and the Ming Dynasty, but in other places, especially in the continent, you can only recommend customers to use Chongzheng Tongbao, otherwise the impact on business will be great. You must grasp this standard."
Everyone nodded and expressed their understanding. Zhu Cijiu continued: "The performance report and work discussion of the Royal Rixing Bank of the Ming Dynasty have been completed. The next step is the future development issue. Do you have any plans for Taihe?"
Luo Yangxing nodded and said, "Returning to the emperor, Weichen felt that the focus should be on the development of the Nanyang direction in the future. Now the Royal Bank of the Ming Dynasty is selecting locations in Rinan, Jiaozhi, Annan, Siam, Donghu, Chameng and other places, and is preparing to build about twenty new semicolons to develop the exchange and lending business there."
Zhu Cijiu nodded and said, "Yeah, it's not bad, but this can only be considered a short-term goal. When it comes to development, it's long-term. It's not enough to have short-term goals alone, but also medium-term goals and long-term goals and even final goals. For example, the development of the Ming Dynasty Royal Rixing Bank, I think the medium-term goal should be to improve outlets. The current semicolon is far from enough. We need to expand vigorously. There are more than one thousand county governments in the Ming Dynasty, and the number of semicolons of the Ming Dynasty Royal Rixing Bank must reach at least one thousand! "
This is not an amazing move, because the Daming Xinglong Business Company expanded like this, but the Daming Royal Rixing Bank has not yet developed yet. Luo Yangxing nodded in understanding when he heard this. This goal is not difficult to achieve, it is nothing more than spending more money and recruiting more people.
Zhu Cijiu stopped and took a sip of tea, and continued to guide: "As for the long-term goal, I have mentioned before, that is, to control the circulation of currency in various countries and let them all use Chongzheng Tongbao. This goal is not difficult to achieve in the vassal states of the Ming Dynasty and the Ming Dynasty, but it is difficult for other countries. This requires everyone to think carefully about it, and I will not discuss it today. Speaking of the final goal, I will first ask you a question, what is the use of controlling the circulation of currency in various countries? You all say it."
The role of controlling the circulation of currency can actually be seen on the surface, so everyone soon had the answer.
Xu Erjue answered first: "It will be convenient to do business in this way. We use our Ming Dynasty Chongzheng Tongbao everywhere. If we do business with others, we don't have to spend all our time discussing the price of goods. We just need to follow the price of the Ming Dynasty."
At that time, there was no international currency, and it was very troublesome for merchants from different countries to do business, because the price of goods was not easy to set. Even if gold and silver were used, the value of gold and silver in each country was different. For example, a country that produced gold and silver might not be worth half a liter of rice. For example, a country that produced rice might be worth two or three stones of rice. The pricing standards were different. It is conceivable how troublesome it was to trade goods.
Convenient business is just an appearance. Zhu Cijiu couldn't help but remind: "Erjue said it well, but convenient business is not the focus. The following sentence is based on the price of the Ming Dynasty. Think about how many goods are in the world every moment, how amazing the total value of each goods is added up. If the price of the transaction is determined by the Ming Dynasty, the profit in the middle is amazing!"
In this era, the profits of doing business come from buying low and selling high. If you set a price, you can generate profits. So everyone looked at the emperor with a confused look on his face, not knowing what he meant.
In fact, this is very popular in later generations, that is, futures trading. For a while, the whole world went crazy, such as stir-frying gold, oil, rice, wheat, and even garlic, and pork. What we mean here is not to eat when stir-frying, but this stir-frying means the price of stir-frying.
Seeing that everyone was stupid and unable to understand, Zhu Cijing had to give an example: "For example, rice, the prices of your purchase and sales are relatively fixed, right?"
Xu Erjue knew the most. He nodded and said, "The price of purchasing rice from various provinces in Jiangnan and Liaodong is about eight cents per stone, and it is only one or two cents per stone when sold to other places."
Zhu Cijing asked: "What is the profit?"
Xu Erjue said embarrassedly: "In fact, there is no profit. If one stone of rice is used to eliminate freight and other expenses, it would be good to make half a piece of money. If it weren't for the fact that there were basically trains everywhere in the Ming Dynasty, this business would be impossible. However, it was because there were trains everywhere. The price of rice would be so low. It turned out that when there were no trains, the price of rice in the northwest and other places was about one and a half. The price doubled when it encountered drought. It was rumored that in the sixth year of the Tianqi period, some places had risen to five taels and one stone."
Zhu Cijing nodded and said, "Yes, the transportation is convenient, and the prices of various commodities will be more stable, but the total sales will also increase accordingly."
Xu Erjue bowed: "The emperor is wise, it is true. It turns out that rice is transported in trouble and the price is unstable. Except for rice production areas such as Jiangnan and Liaodong, there are not many people in other places who regard rice as staple food. For example, when the Rixinglong Business was first established, the sales volume of rice was only about 5 million stones a year. However, now the rice sold by the Royal Xinglong Business in the Ming Dynasty reached 30 million stones a year. Although the profit is not high, you can still make more than one million taels a year."
Zhu Cijing asked: "Where are there any other businesses that do rice business?"
Xu Erjue thought for a while and replied: "Return to the emperor, there must be some, but they are not large in quantity. It would be good if they can have ten million stones in total."
Zhu Cijing guided again: "The Ming Dynasty Royal Xinglong Business Book will book all the rice that merchants from various rice producing areas such as Jiangnan and Liaodong will be able to sell in the next year. Can you make it?"
Xu Erjue nodded and said, "This is no problem."
Zhu Cijiong smiled and said, "In this way, will only the Ming Dynasty Royal Xinglong Store have new rice sold in the next year? If you raise the price of new rice to one or two, one qian and one stone have a great impact on sales?"
Xu Erjue thought about it and said with certainty: "The impact should not be big. People who are used to treating rice as a staple food will not stop eating rice just because of such a little money."
Zhu Cijiu said proudly: "The profit of this rice has tripled, can you make nearly three million taels more by selling rice in a year?"
When everyone heard this, they suddenly realized and praised the emperor for his wiseness and tended to be flattering for a moment.
Zhu Cijiu quickly raised his hand and said seriously: "In fact, this is monopoly and malicious hype. I do not advocate such behavior. At least in the territory of the Ming Dynasty, I don't want you to do this. I just give an example to let you understand the profits brought by pricing power. If the Ming Dynasty controlled the circulation of currency, you just need to operate it a little bit, and it is not difficult for a single commodity to rise by one to two percent. This to two percent is pure profit. Think about it, how many kinds of goods are there in the world, and how many can make profits in this way, and how much profit is there?"
When everyone heard this, they fell into deep thought, and everyone's eyes were glittering from time to time. A group of big speculators who turned their hands to make clouds and rain in the world market were born!
Chapter completed!