In this era, in order to develop industry and commerce, it is necessary to have several advantages at the same time, on the one hand, the source of raw materials and the sales place of products, on the other hand, the advantages of geography and transportation, in addition to the government-led policy support and finally funds.

In addition to the CP state, which regards the people and all materials as the means of production, the state under other systems includes typical liberal capitalism, state capitalism, and even capitalism under a constitutional monarchy or an absolute monarchy.

If they want to develop industry or anything else, they must not go against the laws of the market, and the greatest manifestation of the laws of the market is money.

The biggest difference between the state-planned economy and the capital model is that one can take advantage of all conditions, regardless of production and marketing or even loss, as long as the state needs it, then it will invest its strength in production, and in this system, the role of money is wirelessly reduced, because although on the surface prices are very low, and the state provides everything, in reality you can't buy anything even if you have money. In the capitalist economic model, if you want to develop industry, you must respect the laws of the market.

The Chinese Empire under the rule of Lin Zhe is now a very typical imperial autocracy, but although the Chinese Empire has maintained the traditional imperial autocracy, its policies towards agriculture, industry and commerce and even many other aspects are completely different from those of the previous countries.

If we had to define a type, it would be classified as an 'imperial absolutist capitalist state'

In such an environment, if Lin Zhe wants to develop industry and commerce. It is not possible to build factories directly with the administrative power of the state, as in those state capitalist countries. Conscription of the people to work for the state for free.

He can only do his best to give policy support, and the other is to use the limited power of the royal industry to guide domestic capital into related industries.

And the Royal Bank. It is an important investment force in the hands of the royal industry.

Although the liquidity of the Royal Bank and the royal property itself is very large for ordinary people or businesses. However, it is very weak for a country to industrialize, and at this time, the huge deposits in the Royal Bank, which have exceeded 500 million yuan, play a very important role.

These deposits, which were pooled from all over the country, were used by the Royal Bank for various loans, which were generally used for the development of industry and commerce.

There are three main aspects of the Royal Bank's loan business, one is for the local government or even the central government, lending to the government for infrastructure construction that requires intensive capital investment, and if a city wants to develop industry and commerce, then it must first build infrastructure and have docks. Roads, water, coal supply, then be able to attract enterprises to settle down and invest in the construction of factories.

The construction of these infrastructures is very difficult for a local government, especially a local government belonging to an ordinary city, and although the local government and the central government can support some of it, in fact, most of it still needs to rely on loans!

By far the central and local governments of the empire are the largest customers of the Royal Bank. It has accumulated loans of more than 100 million yuan for the construction of transportation, urban facilities, rural water conservancy facilities and other projects.

The second is to the main industries in the country. In particular, the empire supported the development of industries to provide financial support, such as heavy industry, to prevent industries.

Take the cotton spinning industry, which has been vigorously supported by the empire in recent years, as an example. The rapid construction of various cotton spinning factories throughout the empire was inseparable from the financial support of the Royal Bank. The Royal Bank not only provides loans to the cotton spinning industry of the Shanghai Textile Company, which belongs to the Imperial Family, but also to other cotton spinning enterprises in the country.

With these loans. These cotton spinning enterprises were able to quickly build factories and recruit workers, but then form mass production.

In addition to the cotton industry, light industries such as the raw silk industry are also the main target industries for the Royal Bank's loans.

As for heavy industry, not to mention, the current domestic heavy industry can be developed, basically relying on the support of loans from the Royal Bank.

At present, the heavy industry in the country mainly relies on the royal industry for investment, and the proportion of private capital is very low, and on the whole it does not even reach 5 percent.

And what kind of industry the royal industry wants to invest in, whether it is light industry or heavy industry, basically it can't come up with much cash to invest, and can only rely on the loan of the royal bank in the royal industry.

Therefore, to sum up, it can be seen how huge the role of the Royal Bank is in the current industrial and commercial economy of the Empire!

To put it bluntly, more than 50 percent of the empire's industrial output and more than 90 percent of the heavy industrial output were developed by relying on loans from the Royal Bank.

Although there is not only a commercial bank such as the Royal Bank in the empire, there are hundreds of various financial institutions in the empire that have been officially registered, most of which are old-fashioned money banks, silver accounts, etc., which are not the same thing as modern banks.

However, the scale of these money banks and ticket numbers may be very large for ordinary enterprises, and they can come up with millions or even tens of millions of funds, but they are not worth mentioning for the Royal Bank.

Fortunately, the Royal Bank did not rely on its own scale advantage to squeeze the survival of other financial institutions in China, and even acted as a guide for other domestic financial institutions to some extent, and its operation model has become a template for other new banks in China.

For example, the United Bank, which was united by more than 10 money banks in Jiangsu and Zhejiang, imitated the Royal Bank in all aspects of the bank's internal systems, and even many of the bank's current executives are former executives of the Royal Bank.

The Union Bank was formally established in 1858 with the name Shanghai Union Bank, and in 1860 it was renamed the Shanghai Union Bank after the reform of the modern banking system in accordance with the Imperial Financial Law.

With Shanghai as the main business base, and radiating to Zhejiang and Jiangsu provinces, it has more than 80 branches. The deposit amounted to more than 50 million yuan.

Shanghai Union Bank is also the largest purely private bank in China. Its shareholding composition is very dispersed, and it is very similar to the traditional Shanxi ticket number of funds. There are also local money banks in Jiangsu and Zhejiang, and the shares held by major shareholders are relatively balanced, basically ranging from 1% to 10%, after all, such a huge bank is difficult to be controlled by a simple family.

In addition to Shanghai Union Bank, there are several Shanghai Finance and Trade Bank, Songjiang Industrial and Commercial Bank, and Tianjin Union Bank in China. Kyoshi Longsheng Bank, Nanyang Bank, etc.

Most of the funds that these banks can use are about 10 million to 30 million yuan, and all of them are private capital, some of which are combined from the old-fashioned money bank reform, like the Shanghai Union Bank, and some are simply newly invested and established, such as the Shanghai Finance and Trade Bank, and the major shareholders behind them are all large enterprises and big families in the domestic raw silk industry.

In addition, it is worth noting that in addition to the Royal Bank, which belongs to the royal family, and the Shanghai Union Bank, which is privately owned, in the empire. In addition to Shanghai Finance and Trade Bank, there are also foreign banks, but the number is small, mainly British-funded banks.

The most important of these is not the well-known HSBC. It was the first Oriental Bank, also known as Liru Bank, which was the first foreign-funded bank in Shanghai.

Most of Shanghai's banknotes in the fifties were issued by the bank. The bank later developed quite rapidly after the establishment of the business zone, through the provision of funds to a large number of foreign banks and the exchange of bills of exchange. The bank pooled a lot of money, and at one point it was even in direct business conflict with the Shanghai branch of the Royal Bank. In order to compete for a large number of high-quality customers in the raw silk industry, a relatively tragic confrontation was carried out.

However, in the past two years, due to some reasons of the management, the bank's development has been slow, and even the development prospects are not as good as those of Xinde Bank.

Shun Tak Bank is also a British bank, a wholly-owned subsidiary of Shun Tak & Co., headquartered in London, but its main business is in Hong Kong and Shanghai.

In the past many years, Xingde foreign firm because of the early Lin firm, now the royal industry of the excellent cooperative relationship, in the Chinese market to obtain huge profits, if before 1858, Jardine Matheson and Sassoon foreign companies can still rely on opium, textile export trade to obtain huge profits, then after 1858, after the outbreak of the second opium war, after the Chinese army in Shanghai defeated the British and French forces, the opium trade was completely banned, and at the same time greatly increased the tariffs of foreign cloth, As a result, Jardine Matheson, Sassoon and other companies suffered heavy losses, and their annual revenue continued to shrink, and later they had to expand in other areas.

However, at this time, Shun Tak made a lot of profits by exporting machinery and equipment, coal, cotton, raw silk and porcelain to China.

Today, in 1864, Shun Tak & Co., and its replacement for Jardine Matheson, became the largest foreign-funded enterprise in China, and even developed to the point where it could support and develop a foreign firm on its own!

The three types of banks, the imperial capital, the private capital, and the foreign capital, constitute the main financial system in contemporary China.

However, the gap between the above three is too great.

The Royal Bank has an absolute advantage, and neither private nor foreign capital can shake the advantage of the Royal Bank.

If other banks want to challenge Royal Bank, it will have to open branches in every corner of China.

Compared with foreign banks, although the management model of private banks may not be as mature as that of foreign banks, the number of private banks is much more than that of foreign banks, and there are now 28 new-style banks officially registered in China.

As for the famous HSBC Bank in history, there is no shadow at this time, and the bank was not established until 1865, and the condition for the establishment of the bank was that the main sponsor of the bank, that is, Sassoon & Co., made a lot of profits in the opium business.

However, the current Sassoon Bank is far from being as good as it has developed in history, so it is still unknown whether this HSBC bank can be established as scheduled.

However, whether it is imperial capital, private capital or foreign capital, in fact, it has provided a great boost to the industrialization process of the empire, without the funds of these banks, the empire's industry would not have been able to take shape in just a few years. (To be continued.) )