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From that day on, the city of Liberty completed its transformation from a rally to an exchange, with a fixed place for commodities to be traded.

In the beginning, the commodity exchange was quite limited, as initially each seat had to be equipped with a sizable warehouse to accommodate the merchant's commodities for physical delivery.

But with the development of trade, this method made profit-hungry merchants impatient, and the preservation of goods was quite cumbersome.

Of course, merchants have learned to use money for many things, such as solving the problem of preserving salted fish in warehouses.

This was thanks to the chairman of the Free City Solomon Company, well, a very novel name, but the merchants admitted that it did sound much more high-end, atmospheric, and high-end than that of such and such a businessman.

A very large number of businessmen are now secretly learning from the chairman, the young Irving Solomon, his own ways and the miraculous operation of Salomon & Co.

For example, in the case of the preservation of salted fish in the warehouse, Solomon's method was to design a magic array at the Wizards' Guild in Modo at a high price to keep the temperature constant and keep out the dust, and this bounty spread to the Wizards' Guild in all directions, and was resolved in Saxon three months later.

When this kind of magic circle first appeared, the price was high, but the merchants after Solomon Company got this magic circle from the Wizards' Guild, and the price was much cheaper.

The point is that after that, businessmen have learned a way of thinking about solving problems, using money to seek help from others, and not being afraid to spend money, as long as the premise is to bring you more profits.

Moreover, after studying the model of Salomon Company, the businessmen quickly realized that the new trading company model of Salomon Company was far more competitive than the traditional trading company.

The traditional business model is sole proprietorship or family operation, but the Salomon company model created by Wang Qinian can unite a number of businessmen or trading companies of different forces to carry out joint operations, and the risks and profits are also shared in the form of shares.

The city of Liberty is changing every day, and a lot of new things are coming from here and then being imitated by many places.

In other countries, in other cities, trading companies like Salomon Company have also appeared, and places like commodity exchanges have appeared in Aurora, Saxon, and Titania.

The proud merchant will call this era the best of times, while the frustrated merchants will curse this era as the worst of times.

Peter was undoubtedly the proud one today, as he had secured a seat on the commodity exchange.

With the increase in the number of merchants, everyone wants to get a fixed seat on the exchange, and soon the seats are not enough.

It was only a year ago that the Free City separated the trading rules of the exchange from the commercial law and set up a separate governing body and related laws for the exchange.

It was the genius Mr. Solomon again, who came up with a way to increase the number of seats on the exchange.

Peter praised him and kept in mind his name, Mr. Owen Solomon.

He introduced the forward trading contract that merchants made privately into the exchange, and the so-called forward transaction contract refers to the fact that when the merchant cannot get the spot because the demand for a certain commodity is very large, he will privately ask a supplier to sign a contract to supply the goods at a certain point in the future. Or some goods are stored in the distance or obstacles in the production cycle, such as the monthly orc trade group of goods are first traded to the Solomon Company, and then sold by the Solomon Company to other merchants, and the share of the goods is limited, and if you do not win a share in this period, you will want to get the next share.

However, this kind of private contract is very risky and basically relies entirely on personal credit. Solomon's position in the Free City is very unique, and the merchants know that he is basically equivalent to the agent of the city lord's government in trade, that is, with the official endorsement of the Free City, but for the overall situation of this forward transaction, the Solomon Company is only an individual, and the merchants cannot only do business with them, so the risk is still very high.

After the exchange has absorbed this trading model, it stipulates that when any forward transaction contract is reached, it must first pay 10% to 20% of the margin to the exchange, and if the party to the transaction cannot achieve physical delivery after expiration, this margin will be gone, and the exchange member who cannot perform the contract will lose its membership seat.

The latter is particularly fatal to the trader, who will undoubtedly lose a lot of business in the future if any member is revoked by the exchange on the grounds that it is unable to complete the contract

It is also a kind of discrediting blow.

In addition to the risk issue, another advantage of this method is also very obvious, because of the implementation of forward trading, so there is no need for so many warehouses, and only physical delivery is achieved at maturity.

This means that the number of members of the exchange can be greatly increased to meet the trading needs of traders as much as possible, but this poses a huge challenge to other aspects.

And clever merchants, such as Peter, have seen a great opportunity to quietly resell such forward transactions among merchants before they expire because of the deposit of forward contracts recognized by the exchange.

In fact, the purchase and sale of forward contracts is also necessary, because sometimes merchants do not deliberately want to breach the contract, after all, there are always commercially unknowable risks.

Moreover, the punishment of the exchange is too heavy, sometimes the loss of part of the margin traders can be accepted, but the loss of exchange membership not only means that they cannot trade on the exchange, but also the loss of reputation will make their future business collapse, who would dare to do business with the merchants who have been disqualified by the exchange?

Therefore, shrewd businessmen have also worked out a way to deal with it under the rules of the exchange, that is, to reverse the generation of a new contract in the opposite direction of the original forward transaction, with an equal amount to offset it, which they call liquidation.

It is said that such resale or offsetting has begun to be formally recognized by the exchange, and strict rules and procedures are in place.

And some of the smartest merchants, such as Peter, present the contract not from the actual physical delivery, but from the fact that the process of resale itself contains huge profits and, of course, risks.

This is the germ of primitive futures trading, the result of the inevitable production of trade, and the merchants cannot wait for the delivery of commodities to generate profits, they desire to be able to generate transactions at all times, to generate profits.

The birth and reform of the exchange are in their interest.

Of course, the trade exhibition cannot be without obstacles, for example, the birth of futures trading has solved the trade needs of businessmen, but there are many problems arising from it.

The most intuitive problem is the currency problem.

Under the futures trading model, the forward trading contract can be resold multiple times before expiration, and if it is difficult to achieve physical delivery, it is necessary to generate an additional reverse contract to offset it, so as not to go bankrupt.

Physical delivery of commodities can only be achieved at the end of the delivery period, but what about the currency needed for each transaction?

The amount of money that supports commodity trading has also increased dramatically as trade patterns have changed, and in the current situation, there is already a staggering amount of money converging on the exchanges of the Free City.

But in the future, with trade shows elsewhere, it is conceivable that the demand for money will not decrease, but will increase.

Gold and silver have never been so scarce as they are now, and even gold coins have left merchants unsatisfied, and for forward transactions, the quantity and amount are constantly expanding, and with the resale of futures contracts, the amount has sometimes reached a point where it is extremely inconvenient for merchants to pay with gold coins.

Merchants were hungry for a better currency, one that was worth more than gold and could be used in the payment of commodities, which was meant to be portable but was stretched thin when it came to the payment of commodities.

If there is a currency that is ten times or even a hundred times more valuable than gold, combined with the currency that already exists, it can meet the needs of the merchants.

At this stage, people rack their brains and can only come up with ways to remedy it.

For example, a bank, such as a money order.

Banks, born out of the city of Liberty three years ago, are becoming more and more important in this world, and everywhere is quickly embracing this new thing.

In Tugenhaben, in St. Quentin, in Titania, in Aurora and Saxon, banks were constantly being created.

In terms of size, Liberty City is lagging behind, and although the original banks were born here, it is still a new city.

Franklin and Wang Qinian: They don't have enough manpower and connections to expand Franklin Bank to cities of all sizes, and even the capital is difficult to maintain.

Now, three years later, the Franklin Bank has only one branch each in Tugenhaben and Saint-Quentin, and these two branches are already the limit of what the Free City can sustain.

However, Franklin Bank still has a very unique position in this emerging industry, as something new is always coming from here.

It is like the bill of exchange, which was a substitute for money that could not be ten or a hundred times the value of a gold coin.

Bills of exchange are divided into merchant drafts and bank drafts, the drawer of the merchant draft is a businessman, and the payer can be himself, or he can be someone who owes money to the merchant or the name of a bank filled in by the businessman, from this point it can be seen that the risk of the merchant draft is quite large, and it is completely endorsed by personal credit, even if he writes the payer as a certain bank, but if he does not have a little deposit in the bank, then the person who finally gets the bill of exchange will not get the money.

The bank draft is different, to issue a bank draft, the first drawer must have enough money in the bank to ensure that there is enough money when the draft is cashed.

There is also a kind of bank draft, called a bank acceptance draft, which is somewhat similar to a forward transaction contract, that is, the drawer and payer of the bill of exchange are still banks, but the bank will not immediately redeem the money to the merchant who gets the bill, but will be guaranteed to be cashed by the bank when the time specified in the bill of exchange arrives.

Banker's acceptance is usually issued along with the forward transaction of the commodity exchange, which is equivalent to the bank's credit guarantee will be paid, and the bank is willing to issue and pay the acceptance bill for the merchant, usually the merchant has to pay 30% of the cash to the bank, and the balance is secured by valuable items such as real estate or precious jewelry.

But more and more businessmen like to issue acceptance bills, which saves them too much trouble.

For example, if they issue a bank draft or a bank acceptance at the Franklin branch in St. Quentin, they can take it to the Commodity Exchange in Liberty City to do business, provided they have a membership in the exchange.

When it comes time to pay for the deed, they pay with a bank draft, which of course cannot be done with a merchant draft.

In the early days, merchants had to carry several pockets of gold coins in horse-drawn carts, and they had to hire guards to come from distant cities, and if they didn't make a business, they had to find a way to transport them back.

Three years ago, when the Franklin Bank was born, merchants could save money and deposit money in the Franklin Bank, and when the transaction was realized, the merchant would come to the bank with the transaction object, submit the certificate of deposit called the passbook to the bank, take out the required gold coins from the bank, give it to the transaction partner, and complete the transaction. But this is still very troublesome, and the money has to be withdrawn from the bank and handed over to the other merchant, and the merchant will most likely deposit the money into the Franklin Bank as soon as he gets it.

The advent of the money order made this easier, and merchants only had to make a money order at the Franklin branch in St. Quentin, fill in the payee as themselves, and when they arrived in Liberty City, they could withdraw the money from the Flinklin Bank in Liberty City.

Praise be to you, Mr. Owen Solomon, that you are a lucky star for the merchants.