Chapter 229 If you want to pay back the money, you have to borrow a new debt from the court!
"Your Majesty, please make it clear!"
"The repayment plan is divided into two batches. The first batch is to resume repayment after the imperial court pacifies the rebellious prefectures and counties. The second batch is to repay as usual according to the agreed time, but according to the repayment method of the second batch.
To repay the loan, the premise is to borrow another sum of money to quell the rebellion. The court is not worried about having no soldiers to quell the rebellion, but it is worried about not having the money to pay the army. As long as there is money, it is not difficult to quell the rebellion!"
What do you mean? Debt collection turned into borrowing money in the end? Your Majesty, what are you thinking of? Fu Shuxun was stunned on the spot after hearing the emperor's whimsical repayment plan, and could not recover for a long time.
After waiting for a long time, he came back to his senses and said, "Your Majesty, I'm afraid we can't borrow money, right? Our old debts haven't been repaid, how can we borrow new ones?"
"If you can borrow it, but you can't, let's try it first. Minister, please tell the creditors my intention first and see what they want. Just say that in order to put an end to the chaos as soon as possible, the imperial court plans to borrow money from the world to put an end to the trouble."
The creditor who borrowed the money from the court this time has the priority to pay off the original debt. The interest on the money for the peace is still 6% per annum, and the principal and interest will be repaid in five years. The Royal Bank, as the main body, issues debt externally.
The Ministry of Accounts only does supervision. The total number of bonds issued is 10 million taels, and the maximum bond issuance period is two years, until all issuance is completed!"
When he walked out of the palace, Fu Shuxun felt that his experience today was a bit unreal. Even though the situation was like this, the emperor still confidently borrowed money from foreign countries. Can such a coquettish operation get a loan?
Sure enough, when he came back and told the plan in private, the real creditors all sneered and shouted that they would be Sunzis if they borrowed money from the court again, and began to discuss how to further collect debts.
Zhu Youjian naturally knew about this situation. When he proposed this plan, he didn't think about borrowing money from these grandchildren. He must borrow money, but this time
The direction and means of money have changed! He is no longer planning to put all his money on large households to borrow money, but is planning to use the Royal Bank as a platform to issue bonds directly to all people.
After the cultivation of the past two years, there are still some working-class people in the capital, and they have more or less some savings. By issuing small bonds, the savings of the working-class people are gathered, which is also a lot of money. In addition to the royal family
In addition to banks, some banks will of course also be attracted to participate in the marketing of treasury bonds. The threshold for these banks to participate in the marketing of treasury bonds is that they must subscribe to underwrite large amounts of treasury bonds and become wholesalers.
"My lord, the mint needs to print a batch of treasury bonds worth five taels of silver dollars. This kind of treasury bonds will be redeemable in real silver after five years, but it needs to indicate that the issuance price is three taels and eight cents. In other words, the people can use three taels of silver dollars.
Eight silver dollars will buy a Treasury bond worth five taels of silver dollars in five years! If the five-year period is less than five years and you want to exchange it, it will be exchanged according to the actual issuance price. Two million copies will be printed first, of which one million will be issued by the Royal Bank.
The remaining one million shares are reserved for private sale. The sale price is one denarius higher than the actual issuance price. This denarius is used as commission for the Royal Bank to underwrite national debt. You keep the money you make for your employees.
Give out bonuses.”
After recruiting Gong Yonggu and Liu Wenbin, Zhu Youjian told them the plan to issue treasury bonds. This method is actually to sell five-year acceptance notes in advance at a discount of 30% to 50% for 40 taels of silver dollars.
At less than a cost, you can earn one or two more silver dollars in five years!
Based on this profit, if there are good investment channels, it is naturally not the first choice. But for ordinary people, buying treasury bonds is a way to maintain and increase the value of their savings. It is always more cost-effective than leaving money at home. Putting five taels of silver
When I get home, I can't do anything important.
"Your Majesty, after the bond is sold, does the bank have to pay the issue price at any time?"
"This is natural. If someone wants to sell on the day of purchase, the bank will have to repurchase it at the issue price. At the same time, your Royal Bank also has to provide government bond guaranteed lending services. Anyone who holds a government bond can use the bond as collateral to lend the same amount.
of cash silver or military notes. The minimum loan limit must be more than one hundred taels, and the annual interest is eighty cents per tael. I forgot to mention that when the mint prints bonds, it must combine the notes issued by the Royal Bank and other banks.
Notes are distinguished! These two types of notes are identical in other aspects. The only difference is that the treasury bonds issued by the Royal Bank can obtain a full loan from the Royal Bank, while those issued by other banks can only obtain a loan from the Royal Bank up to the issuance price.
Eighty percent of the price."
The complex operation Zhu Youjian described made Gong Yonggu unable to keep up with his thinking. It always felt like the Royal Bank was wasting its efforts in vain. After five years of interest, it was very likely that in the end
The bonds sold today will be loaned out again tomorrow. And would anyone be that stupid? First lend the money to you at a low price, and then loan it out from the bank at a high price?
There are always many fools in this world that Gong Yonggu can't figure out. When the mint started printing bonds according to the emperor's orders, and the Royal Bank announced the plan to issue national bonds in advance, before the plan was actually implemented, there was
Many people from banks came over to inquire about the situation. After they came over, they asked Gong Yonggu whether the Royal Bank could actually guarantee that the policy would be fulfilled as promised in the plan.
In this regard, Gong Yonggu made a guarantee on the spot, and the policy will naturally be fulfilled. Even if you subscribe for a large amount of national bonds on the first day, it will be no problem if you come to get a loan the next day.
After hearing this promise, many bank managers went to Fu Shuxun to discuss borrowing national debt from the imperial court.
Strictly speaking, the national debt this time was not borrowed by the imperial court, but by Zhu Youjian. From the right of issuance to the right of underwriting, it has nothing to do with the Ministry of Revenue. The only connection between the two is that the bank wants to obtain a large amount of money.
To have the right to underwrite the amount of treasury bonds, first of all, they must be creditors of the imperial court, and secondly, they must subscribe for an amount of treasury bonds at least equal to the amount of debt owed to them by the imperial court in order to become underwriters of treasury bonds.
Fu Shuxun suddenly changed his attitude when he looked at these guys who just a few days ago had a nose that was neither nose nor face but threatened that if they lent money to the court, they would be their grandsons. He felt that the world was changing too fast and he might not be able to keep up with the situation.
That night, Fu Shuxun found many actual controllers of the bank and wanted to hear why they suddenly changed their attitudes.
"Shang Shu, let me tell you the truth. This national debt is worth borrowing! The first is to subscribe to the national debt, and the money we borrowed before can be recovered on time. This is to stop the loss. The second is to subscribe this time
The capital of national debt is small. If you think about it, almost 80% of the money we borrow can be loaned out on the spot! In other words, we only use 20% of the original capital to earn 10% of the profit. Is this kind of transaction cost-effective? The third is subscription.
The bank can still sell a lot of national debt, and we can earn one penny per bond." A colleague of Fu Shuxun revealed to him the reason why people like him changed their attitude!
"The interest rate on the national debt is only 6% per year, but the loan amount is 80%! Where does the interest come from?" Fu Shuxun's thinking still hasn't changed.
"That's not how the accounts are calculated! We lend out the money at eight interest rates and give it to businessmen at ten interest rates, so the money comes out? To put it bluntly, the money is passed from hand to hand, and then the interest on the national debt is made out of thin air. Not many good things happen!"
After listening to the analysis of his colleagues, Fu Shuxun finally understood why they suddenly changed their attitude. But now he had another question! Why did the emperor go back and forth like this? He borrowed a lot of debts with great fanfare, but the money he got in his hands was not much! They also want to give people five years of interest for free.