Chapter 553 Explanation

Lu Huiqing disagreed again: "Mingrun's words are extremely unbenevolent. If the people have to relieve their suffering, then we should work hard."

Of course Su You would not give him a chance to slander him: "The temple magistrate still didn't understand what I meant. It would be good if the fourth and fifth class households had some relief, but what we are discussing now is the national economy."

"What I mean is that when the bad harvest years come and these people encounter disasters and repay their debts, the three points owed and the four points owed will be pursued at the same time. They will sell their houses and sell their daughters and run away.

Hanging, is there a big difference?"

"Also, the four cents owed before were owed to the rich. The landless customers had no wealth and depended on the principal for everything. Regardless of whether the principal was willing or not, they could only extend the loan and could not let them live.

Well, we can't let them die now. Otherwise, who will help them farm the land next year?"

"Then I would like to ask Mr. Shen: Changping, Guanghui Ercang, is the national grain depot. Based on this, if the Qingmiao Loan is extended once, is it enough? If not, how many installments should it be? The outstanding debts are not yet settled.

Can we continue to borrow money before? If not, will farmers still have to borrow money from wealthy households at higher interest rates? Will it encourage mergers? "

"Today's Young Crops Law actually deprives first- and second-class households of the benefits of lending, protects third- and fourth-class households from the risk of being merged when the economy is in recession, and targets the lowest, fourth- and fifth-class households with the largest base and landless customers.

There is no real benefit."

"Even if the third and fourth class households can indeed benefit from the new law in suppressing mergers during good years and peace years, what will be the consequences once disaster years come and they are dragged down by the joint guarantee between the fourth and fifth class households and their customers?

"

"Don't forget, everyone, the intensity of land annexation in disaster years is not the same as in ordinary years!"

"This approach only allows mergers to be postponed for a while during Fengping years. In disaster years, it will greatly reduce the ability of third- and fourth-class households to resist risks. It is equivalent to transferring mergers that occur in normal years to disaster years, and the disaster will be more severe.

, which is completely opposite to the original intention of the merger!"

Su You was really speechless about the temper of the Song people today. The military is like this, and the civil affairs are still like this. He only saw my hundreds of thousands of troops killing them and quelling Xiao Xiao, but he didn't think about what would happen if he failed.

Woolen cloth?

Su You breathed a sigh of relief and said: "The original intention of establishing the Qingmiao Law was good. It wanted to solve the problem of 'gathering and dispersing', but it was not suitable. Therefore, the benefits of loving others were not enough, and even the provincial warehouses were sent out to provide relief."

It’s not just about being able to survive the disaster.”

"But if we really want to use it like this, if the government participates in forcing restrictions, the disaster will be greater than the rich households. The small households will inevitably beg the rich families again. Su You is afraid that this is called suppressing annexation, and that is why it is supporting annexation."

"So the clause that the official capital is not allowed to be lost cannot appear in the statutes. What is the legal basis for the joint guarantee? If there is no legal basis, can it not appear in the statutes?"

"As for the discussions between the government and the opposition, they have not reached the point, so you can still refute it at this time. But if Su You can think of it so deeply, others will definitely not think of it?"

"Mr. Jiefu, you initiated the Qingmiao Loan in Ningguo. I would like to ask whether Ningguo had good years, good years, or bad years during those years?"

“In addition to the green crop loan, are there any supporting measures such as arranging cattle and farm tools, organizing cooperative production, etc.?”

Wang Anshi and Lu Huiqing looked at each other, and Zhang Dun grabbed Su You's wrist: "Mingrun, have you told anyone else about these discussions?!"

Su You said: "This is the reason why I asked for a consultation with Duke Jiefu. The only people in the world who know what I said today are the four people in the room. Even if we are as close as sons and see each other, I have not told them."

Wang Anshi nodded to express his belief. If this were not the case, the two children would have had a quarrel in the court, and they would not have been shouting at the corner all day long.

Lu Huiqing could not see any dissatisfaction now. Instead, he bowed and saluted: "The ability to be bright and moist is beyond Huiqing's reach. Is there any way to improve it?"

Knowing Su You's attitude and unwillingness to openly oppose it, of course we must continue to seize the initiative.

You, my child, are only qualified to improve.

Su You didn't look annoyed at all: "Gong Jiefu, Zhongyun, and Brother Zihou, I see that in their recent writings, they all mentioned loans and relief, so we will discuss separately today, what is a loan, and what is a loan?"

Call for relief.”

"Unlike collecting loan sharks, the purpose of Stone Bank and Huangsong Bank is to invest the pooled funds through loans to meet the needs of Bianjing merchants' workshops to expand production and supplement funds."

"In the process, it promotes the prosperity of all industries and at the same time increases the accumulation of the bank itself through the interest rate difference between lending and borrowing."

"Knowing the purpose, the Sitong business name is established in Bashu Hangzhou and the Huangsong Bank is located in Bianjing. The meaning of these measures is clear at a glance."

"First of all, bank loans are issued for production, and the profits from production are greater than the interest on the loans. Both the borrower and the lender benefit. This is a good loan."

"Therefore, the target of loan disbursement must undergo pre-loan review. Detailed statements must be prepared on its production capacity, profitability, asset scale, required amount, investment period, and recovery risk. Only after the audit is qualified can it be granted."

"So loans from Shuzhong are mainly used for workshops, because Shuzhong is now technologically advanced and its products are very popular. Banks investing in workshops can ensure the recovery of funds."

"As for Hangyang, it mainly invests in merchants and workshops that produce transportation tools. Because these two places have developed commerce and busy water transportation, these are the best businesses."

"In Hebei and Shaanxi, it mainly invests in land development, animal husbandry, and military-related crossbow, iron-making, weapons and other workshops. It also undertakes the distribution of military expenditures and city repairs, including the Yellow River river engineering in Hebei and

The need for capital exchanges such as road expansion in Shaanxi."

"In Bianjing, he is responsible for the payment of official salaries, and also invests in consumer industries such as catering, books, spices, jewelry, clothing, travel, and residence decoration."

“These are all focused on based on the characteristics of each place, but in the end they all have the same purpose to benefit both borrowers and lenders, to prosper the local area while cultivating capital.”

"In turn, the bank gradually gained extremely high credibility and influence, and began to establish a virtuous cycle."

"So in a word, you have to make money from a loan, and you have to make other people make money by borrowing money."

"As long as it is a loan, there is bound to be a risk that the loan cannot be recovered, and the non-performing loan rate will directly affect the profitability of the bank. Therefore, every loan must be issued with great caution. The support for each type of industry must also be

You need to be very cautious. If you don’t have a good prospect, you would rather not borrow than lose the loan.”

"This creates a huge contradiction. Banks want to lend to the industries and groups with the highest profitability. However, these industries and groups, because they have sufficient capabilities, often have sufficient capital and do not need loans."

"On the other hand, those who need the most funds are often those with poor profitability. Banks lending to them carry huge risks, and of course they are not willing to do so."

"So the responsibility of the Loan Department of Huangsong Bank is to find those who have the ability and technology to become bigger and stronger, and can improve their own profitability, but are currently limited by their own capital and unable to realize their intention to expand production. These targets are banks

Best quality lender.”

"There is also a second category, that is, the well-off families or officials in Bianjing City. They have urgent needs, such as weddings and funerals, purchasing houses, adding valuable furniture, carriages... They may also need loans, but because their families

They have enough assets to mortgage and their monthly salary can be deducted in installments, so the risk of becoming a non-performing loan is very small, and loan repayment will not affect their lives, so they are also very popular lenders with banks."

"Because the purpose of Huangsong Bank is not to plunder wealth from society, but to increase wealth for society, so in addition to being cautious, we must also try our best to support it."

"This is the reason why Sitong Bank was ridiculed by various banks in Beijing in the past few years, saying that Sitong Bank made the people who owed money become uncles."

"This is a difference in business philosophy. But it is also the reason why Sitong can quickly establish credibility, win reputation, maintain good relationships with superiors and subordinates, and develop quickly."
Chapter completed!