European Emperor Cultivation System

Chapter 172 Preparations for the Harfleur Bank

"You mean a bank? Do you mean the kind of business that handles currency exchange? We have a lot of foreign trade now, and it's time to set up such an institution."

Paissant also very much recognized the significance of this measure. With banks that can freely convert currencies, businessmen don’t have to worry about having nowhere to place foreign currency. However, the related exchange rate issue needs to be considered as appropriate to avoid arbitrage. Space.

Li Peijun is calm. It seems that the ideas of the people under him are also advancing with the times, and the future technology tree will be much better.

"Not only currency exchange, but also savings and loan business, trust services, and most importantly, we need to issue a large amount of bonds, and this must be done through banks." Li Peijun began to instill the concept of modern banks in the nobles present, so that Let them better understand this amazing institution.

The prototype of banks appeared on the Mediterranean coast as early as the 6th century BC. At that time, in order to ensure the smooth flow of trade, local temples and chambers of commerce spontaneously formed businesses, and their functions were limited to currency exchange.The world's first bank was also born in Venice in 1171.

"Lending? Do you mean the usury pawns of the Jews? Isn't this contrary to the teachings of the church?" A nobleman in the audience raised an objection. Improper behavior will be spurned by the world, which can be reflected in "The Merchant of Venice".

"We don't call it interest. You can probably understand it as remuneration for labor services. Just imagine, you have tried your best to get one person to deposit money in your bank, and you have spent a lot of time to lend the money to another person. , These all require cost, and someone has to pay for it, doesn’t it?”

Li Peijun did not bite the bullet and let the traditional aristocrats accept his point of view, but secretly changed the concept so that the behavior that was originally not allowed in the doctrine cleverly put on a legal cloak.

"Could it be that you work for others for nothing? Of course you have to charge some handling fees." Li Peijun emphasized again.

The voices of opposition and questioning in the audience gradually subsided, and Li Peijun continued to discuss the details of the bank's establishment one by one.

"The location of the bank should be located in a densely populated area as much as possible, so that merchants from other places can easily find it. In addition, the distance between the bank and nearby buildings should be slightly opened, because this is where wealth is stored."

"About the question of government bonds, does the lord mean that taxes will be raised?" Oulen has been trying to figure out the meaning of the previous few words, but he still doesn't understand.

"In the past, the tax increase was just that the lord apportioned all kinds of exorbitant taxes to everyone for no reason, and took away the wealth of others but did not give corresponding returns. The government bonds issued by the bank are also a way to raise funds. But not such a barbaric move as tax increases, I respect your willingness to buy, and at the same time these bonds will be repaid with interest when they mature."

Li Peijun explained that he himself knew that issuing bonds was actually just thinking about today's blessings with future taxes. If finances were tight by then, he would probably return to tax issues. But now, with his own prestige, he has raised The first war supplies should be no problem.

"For the establishment of Hafleur Bank, I plan to invest 3 soles in advance, and I will account for 51% of the shares, and the remaining shares will be determined according to the proportion of your investment." Li Peijun tapped the desktop to signal everyone to respond enthusiastically. "After the results of your internal discussions among the representatives of all parties, the person in charge will give me a unified reply. I will announce the specific ratio when the results come out."

"Locking wealth in a safe will not play its role after all. Only by reusing resources can greater wealth be created. I believe everyone here knows better than me that the days of counting money with candlesticks at night are over. Everyone's wealth is just a number."

Li Peijun made another vivid analogy. Compared with the era of metal currency, it is impossible to create a large amount of banknotes out of thin air like in the era of credit currency. We can only encourage the nobles to make full use of their idle funds.

"Also, regarding the training of the standing army, I hope that you will not relax. Although we already have a corps of 2500 people, we must always be alert to potential dangers around us. Now there are post stations in various places, and the corresponding horses are also in place. , Remember to report in time if there is any emergency.”

Li Peijun talked about the management issues in various places. The knights responsible for training would be transferred to another area every once in a while to prevent them from forming gangs.

"Understood, my lord, I am happy to serve you." A unanimous response resounded from the venue.

"Okay, let's adjourn the meeting. After the internal discussion comes out, send a representative to inform me." Seeing that the things that should be done have been completed, Li Peijun declared the adjournment and left the venue.

On the aisle, Possang stopped Li Peijun again, "My lord, did you forget to order something?"

Li Peijun put on a puzzled face, "Oh? What else is there?"

"Isn't there two tasks? The preparations for the establishment of Hafleur Bank have been implemented. Why haven't you mentioned the large-scale procurement plan for the autumn harvest." Possang listened very carefully and did not miss a single question.

Li Peijun couldn't deny it, "I plan to hand over the purchase of grain directly to your chamber of commerce. At that time, the specific purchase scale will be determined according to the financial situation. I ordered you to collect information along the Thames River. How is the progress now?"

"We can only speculate based on the current situation. We can't get detailed economic and demographic data. After all, it is someone else's place. If there is any movement, trouble will come." Posang said helplessly, spreading his hands.

"Well, talk about your existing data and the inferences you have made."

After listening to Possant's long speech, Li Peijun also had a better understanding of the situation in Britain. This time, he planned to send diplomats to test the situation and find a suitable place to stay.

"The chamber of commerce has suitable candidates to carry out this mission. Please rest assured, my lord, the subordinates will be able to complete the mission satisfactorily." Before Li Peijun could speak, Possant began to recommend candidates.

"No, I already have a suitable candidate. You summon Nathan from Caen. I plan to appoint him as a diplomat for this mission."

"Nathan? Is that the ignorant and flattering Sir from before? There are many smart and capable people in the chamber of commerce. Why did the lord choose him?" Passant was a little puzzled by this.

Li Peijun explained earnestly: "This time the task is not just as simple as doing business. People from the Chamber of Commerce among the nobles may not be able to handle it. Nathan is well versed in this area. For him, such verbal things It really couldn't be more appropriate."

(End of this chapter)