The cost of a loan cannot be explained clearly in just a few words. Even if you list each item in detail and put it in front of you, many people still don’t believe it at all. Or some people believe that the cost is so high, but think that it is not good. If it is what it is, if it is me, the result will never be like this.

Agricultural income is inherently unstable, small farmers' income is even more unstable, and the capital turnover period for harvesting one quarter a year is too long, almost excluded from the target of commercial loans. Local landlords and powerful people can use usury to exploit farmers because they have the means to avoid risks. If necessary, they can swallow the farmers who borrowed the loan and their belts into their stomachs. How could the state regime do this?

For small farmers who are scattered, the human and material costs when recovering loan interest is unbearable, not to mention that small farmers are unable to repay the loan every year and must share the costs with other lenders. Qingmiao Loan, once a disaster occurs, will face large-scale losses. To reduce the losses, it will be even worse for the disaster.

Historically, the Song Dynasty used the power of the regime to forcibly share loan costs. For example, the government officials did not need to pay extra costs. But in fact, the officials did not bear the extra costs, and the public officials who did things would try to pass the costs to the people, and they would not pay extra labor in vain without any profit.

To say a thousand words, ten thousand is the final saying. For small farmers who want to use financial means to reduce their burdens or help their development, it is far less cost-effective than tax exemption or direct payment of money, considering the cost.

Xu Ping remembered that his regime had such a strict organization in the countryside in his previous life, and micro-loans were not implemented smoothly. A town in his county once promoted greenhouse planting vegetables, and the preferential measures included small and low-interest loans. The final result was that the government would rather pay all the loans from the finances than to chase them from the farmers. For grassroots organizations, they went to farmers' homes to pursue loans again and again, and the manpower and material resources they paid had already exceeded the amount of unpaid loans. If they continued to pursue them, it was purely a loss-making business. Since then, small loans for farmers have never been heard of in his place.

If you have a wealth of wealth, the ones with fur are not counted. If you don’t have fur, the ones with leaves are not counted. If you use this kind of property as a mortgage loan, where will you collect it? If you go to the farmer’s home to collect it with kind words, someone will always tell you that there is no harvest in the field and it will not be paid back now. If you agree, more people will do this in the future. If you disagree, force the steak house with one size fits all, which will become a bad policy that disrupts agriculture.

In the commercial society, if the loan issuing institutions want to avoid risks without causing social unrest, they can only seek help from loan insurance, which is equivalent to increasing the cost of loans, but still have to pass it on to the loan recipients. In this era, if the government wants to avoid loan risks, they force several households to cover the insurance and pass the risks on to the insurance owners.

Li Shen's way to avoid risks in Heyin County was to let Jiang Dayou, the only big company, protect it. In fact, transfer the risk of the loan to him. Jiang Dayou is not a good man and a woman, so how could he suffer such a loss? It would be strange if he didn't organize his own people to chase and flee. Xu Ping felt that he had no other way.

Seeing that Li Shen was at a loss in front of him, Xu Ping's unpredictable attitude made him even more anxious.

After thinking for a while, Xu Ping said to Li Shen: "You have issued a Qingmiao Loan in Heyin County. Now the summer grain here has been collected. As the loan repayment season is coming, can you understand the situation of the loan repayment here?"

Li Shen sighed and shook his head: "This year, the Heyin drought is severe, and the wheat in the fields is basically not harvested. What can the people use to repay the loan? Xiaguan thought that taking advantage of the day and it is still early, and another loan will be borrowed so that the people in the county can have the capital to replant the autumn grain and collect it together after the autumn. So I beg to wait for the grace period and wait for the autumn to talk about everything!"

"What if autumn grains are hit by another disaster? Have you ever thought about how to make up for the holes that save money?"

Li Shen was silent for a while and said in a deep voice: "The way of heaven is normal, and it won't be like this. If something happens, I will bear it alone! I don't believe it after all, I can have a drought here for a year!"

After hearing this, Xu Ping couldn't help laughing: "If you don't have a drought for a year, are you not afraid of drought for half a year? You'd better listen to me that natural disasters are not the case. You don't have to swallow your money and grain by yourself. There is no need to be like a gambler. If you lose, you have to be able to get it back. In the end, you can't handle it. But now, calm down and put the place where you put Qingmiao loan first. What is the disaster situation and how much you will lose. The three departments will not be unkind. If it really doesn't work, I will talk to you. At worst, you can only give up on your misappropriated money and goods for a year or two.

Li Shen didn't say anything. This was not only a question about his political future, but also a question about whether his own political measures were reasonable. According to Xu Ping, it was almost acknowledging that Qingmiao Loan failed, which he could not accept for a while. Since the middle Tang Dynasty, the prototype of Qingmiao Loan was established, and Li Shen has developed and matured. How could he give up halfway?

The Qingmiao Law sounds beautiful, and can help small farmers overcome difficulties, and can also crack down on large rural households using usury mergers and exploitation. The government has income and kills multiple kills. But the reality is cruel. It is difficult to tell how many benefits small farmers can get. Large rural households will always try their best to pass on the losses. If the government wants to have income, it must be at the cost of exploiting farmers. The difference between this is that loans are not cost-free.

To calculate economic accounts according to business behavior, costs must be calculated. If the government believes that there is no cost, then costs will inevitably be transferred to the public. This is an economic reality and is not transferred by human will.

Xu Ping was very opposed to Qingmiao loans and any financial measures against the small peasant economy. Unless it was to turn small farmers into large farms and increase the ability to resist risks, it would rather use tax reduction and direct or indirect payment of money to support agriculture. Farmers can benefit directly, and the government's policy costs are also the lowest.

Seeing Li Shen's appearance, Xu Ping knew that he could not convince him for a moment, so he sighed and said, "Don't think too much. During these days in Heyin County, don't think about Qingmiao loans, and you can't pay more. As for how much you will lose this season, the statistics are clear, even if the disaster relief funds allocated by the three departments."

Speaking of this, Xu Ping remembered the letter he wrote to Li Wei, picked it up and said seriously: "The following things you need to do in Heyin County. Find out how many customers and main households there are in Heyin County, how many people can maintain their lives in normal years, how many people can maintain their lives in normal years, how many people can maintain their lives in normal years, but once they are in disaster, they cannot support them. If they cannot live, how do they overcome the temporary difficulties they encounter? Should they borrow from large households or sell their assets? Where do these main households and customers come from, how many people born and raised in the countryside, how do they become main households or customers."

Speaking of this, Xu Ping took a sip of tea: "You can figure out these things first, and then talk about other things. In the past half month, I will inspect the river along the Yellow River. In half a year, you can write a letter to me!"

Note: In history, the Qingmiao Law was implemented by Li Shenxian and Wang Anshi followed, and finally it was an important part of the reform. To be continued.

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Chapter completed!