Chapter 44 Forced Loans
The country's reform and reform have gradually been implemented, becoming increasingly obvious to the country. After every major measure is carried out, there are always piles of people coming to the ground, but the social unrest caused by this is insignificant. Taking the salt administration reform as an example, although Changlu salt merchants have lost nine out of ten, ordinary people have nothing to do with it. They only care whether they can eat cheap salt.
When the government promised that the salt price would drop by at least 20%, the only worry and uneasiness among the people also disappeared. For the common people, even if the salt merchants died another 10,000, it would be less important than a 10,000 yuan per kilogram of salt. What's more, this group of rich people in the fish village had long been thorns in the eyes of the crowd?
For international public opinion, although the empire's salt administration reform was booming, they were optimistic. Because the imperial court used large sums of money to foreign countries when borrowing from foreign countries in the past, salt tax was used as collateral. After the salt administration reform, this mortgage was not eliminated due to the change of the collection subject, but instead, the stability was strengthened by the direct jurisdiction of the court, which also disappeared. As the channels for the delivery of salt to Japan were opened, Japan expressed cautious welcome. Although it expressed a certain degree of doubt on the 25% tariff, he also believed that this was a good start.
The bank groups of Britain, France and the United States, which received good news, gathered together like sharks smelling blood, and asked the Ministry of Finance and the Ministry of Foreign Affairs to borrow money from China. The reason for the loan was not forced: after the issuance of the Sino-German double emperor bonds, Germany achieved significant economic benefits in China. Although this is the content of the bilateral relations between China and Germany, countries believe that this large amount of borrowing damages the "obvious fairness" and caused certain damage to the open door policy, and affected the "balance" and "harmony" of the interests of various countries.
The banking group led by Citibank in the United States said with striking remarks: "Although Germany paid a certain price for the issuance of the Double Emperor bond land, Germany has also obtained particularly huge benefits. The joint banking group of various countries does not require reciprocal interests, but at least it achieves equal benefits."
Even Japan, which is deeply trapped in the quagmire of foreign debt, came to join in the fun and asked to participate in providing loans to China.
Facing the loans delivered to his door, Zaize was amused and crying. As the Minister of Finance, he had always been worried about the balance of income and expenditure of the empire and had to borrow a lot of debts almost every year. However, since the first year of the Reform Movement, the emperor has made heavy moves and obtained huge additional finances in an unusual way. Although the country's overall finance still has a deficit of nearly 30 million, he achieved balance of income and expenditure before it was exhausted.
Due to the unpleasant experience of every loan, he was really unwilling to continue to borrow money, but the other party was extremely huge and it was probably not possible to push it hard. He could only ask in a tactful way: "There is no project in the court that needs financial support now."
"No, Duke." Zaize is the Duke of Zhenguo. Foreigners generally call him Duke. The other party blinked his cunning eyes and said. "I heard that the emperor of your country intends to implement currency reform. According to our experience, it is easy to cause turmoil in countries with fiscal deficits, especially when the gold and silver standard is replaced, if the sufficient capital surplus is not qualified for the speculative needs of the market, the funding of the bank group can completely become a huge margin for currency reform."
There is actually someone in the world who insists on lending money to you. Zai Ze shook his head with a wry smile, speechless, and thought for a long time before he finally said: "my country's currency reform has not yet started, and it will not be too late to borrow from other countries."
"Otherwise, the currency reform is the same overall change, and it needs to be prepared long before it was implemented. Now countries are proactive in lending, and there is a very relaxed environment in terms of amounts and conditions. If you wait until the matter is started and then borrow, it will inevitably be possible for countries to wait and see and wait for the price."
Go to yours. I can’t issue bonds again? Zai Zeshen was happy that the Shuanghuang bond issuance was successful. Now he treats bank groups from various countries no longer as humble as before. After thinking about it, he did not say a tough word. Instead, he said: "I don’t want to share the interests of all friendly countries as well? In fact, some countries have spoken out loud, and the conditions are not as good as those in Germany..."
Zai Ze meant something, but was actually accusing the British and French consortiums of their insatiable greed on the issue of loans to China.
"Duke." The other party was obviously prepared and took out a thick stack of documents calmly. "The British, French and American consortiums have experienced several rounds of negotiations in the early stage and have reached the following agreements initially, which is extremely beneficial to your country."
"I would like to hear it carefully."
"First, the joint measures agreed by various consortiums shall not be lower than those agreed by Germany
The discount is 5 cents of the annual interest rate and one percent of the handling fee; second, use your country's salt tax and Guanyu that have not yet been mortgaged as credit guarantee. If you agree to send salt tax inspectors from various countries, we would rather reduce the annual interest rate by 4.5 cents; third, the loans from banks in the UK, France and the United States are all lower than the loan location, and the conditions for the loan are still unchanged. If the conditions are higher than this loan, the loan balance and the years can be converted into a new loan, and the mortgage and repayment method will not change..."
The other party said a long list in one breath, and Zaize secretly thought that some conditions were very favorable, while some conditions were a little bad, such as the dispatch of a salt tax inspector had the intention of interfering in the salt administration affairs. He calmed down, thought about the pros and cons, and said: "It is of great importance. I cannot agree to you with these conditions rashly. I have to report to the emperor and the prime minister of the country before I can decide."
“Natural, natural.”
"So are these conditions formally reported?" Although I couldn't understand the text on the report, Zaize still pretended to turn it down one by one, as if he could see some problems between the lines.
"Of course not, at least not all conditions for the Duke." The American smiled and whispered, "If this matter can be achieved, the consortiums of various countries are willing to use part of the handling fee as commission."
"commission?"
"Yes, this is a routine." The other party lowered his voice, "Depending on the situation and conditions, we can use up to 50% of the handling fee as a commission."
Then it's the income of 0.5% of the total loan. Zaize couldn't help but think secretly, if I borrowed 100 million taels, wouldn't I be able to make 500,000 taels? This is much faster than doing anything, no wonder I'm flattering to the loan.
But when Zai Ze thought of Yi Li's fate, he felt a little sad, and his mind that had just become active was suppressed again - Cen Chunxuan is not a good-for-nothing lamp.
—
He smiled embarrassedly: "This section may be clearly written, so I can report it to the emperor."
Is it necessary to share the commission to the emperor? The other party was a little puzzled, but it was inconvenient to ask directly. Didn’t these nobles like to bribe? Why can’t they do this today?
After hearing Zaize's report, Lin Guangyu fell into deep thought, stood up, and paced back and forth in the hall three times. Zaize and Xu Shichang stood aside and waited patiently - they knew that this was the emperor's expression that he often had when thinking about problems.
"What do you think of the two dear friends?"
"The emperor, I think that since Britain, France and the United States have submitted a formal note, the Ministry of Foreign Affairs and the Ministry of Finance may wish to reply. There is no need to hurry up, so as not to think that the court's decision hastily made."
"This is good, you really need to pay attention." Lin Guangyu looked at Xu Shichang, "However, I asked, how do I answer the question about this loan?"
The implication is that Xu Shichang blames him for being unrighteous and not being right. Xu Shichang didn't know how much Lin Guangyu and Zai Ze thought, so he originally planned to play Tai Chi first, but he didn't expect the emperor to go straight in, which made him feel embarrassed. Seeing this, Zai Ze stepped forward and rescued: "Your Majesty, I think it's okay to borrow, but it's okay to borrow..."
"What a good way to do it, you said."
"It is okay to say that, but the slaves think it is three. First, the court issued a large amount of bonds to Germany, and all countries were inevitably jealous. In order to calm their dissatisfaction, borrowing a sum of money from them is considered as a means of mercy; second, the British, French and American bank groups agreed to revise the past Old Testament. Anyone who had been too harsh in the past can be included in a package of transactions this time and can be considered as compensation; third, the salt administration reform has just begun. Although it has achieved great success in the provinces, its performance in other provinces is still unknown. If countries are promised to use the salt tax revenue after the reform as collateral, it means that the major powers support the reform of the court and agree with the effect..." Zai Ze used a rather obscure meaning in the third article - because the major powers recognized the measures of China's reform, the court could order local governments to obey. Otherwise, once foreigners and you cause trouble, the court would suffer.
In the coming years, there have been too many things about tying foreigners to respect themselves. Some officials are like this, some places, and sometimes, but the court can even come up with such tricks of tying foreigners to respect themselves, which makes Xu Shichang look at Zai Ze's ability with admiration.
"What if you can't say it?"
"The same three." Zai Ze secretly glanced at the emperor's color, and after seeing Lin Guangyu's thoughtful face, he continued to speak boldly... Third Opportunity Volume 3 Chapter 44 Forced Loan
Chapter completed!