Section 22 Companies and Banks (II)
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As trade to and from the Free City grew, more and more currency was needed, and merchants traded commodities in large quantities, even to the point where they had to use horse-drawn wagons to load coins. Therefore, gold is more suitable for large transactions and can reduce the amount of currency carried. However, the passage of large amounts of wealth, whether gold or silver, was extremely unsafe and vulnerable to attack, and the merchants did not want to be treated like fat sheep, so they had to pay extra money to hire guards. Wang Qinian's method was definitely enough to impress the merchants, he used the credibility of the city lord's mansion as a guarantee, and the merchants and merchants in the city, including ordinary citizens, could deposit their money and property into the organization they had created and earn interest, and the merchants who had been trading in the Free City for many years could also deposit a sum of money in advance, and then bring only a small amount of money to the Free City, and then take out the deposited money from the Free City, which reduced the danger, and even the guards could be reduced when they came, and they would hire guards according to the situation after the trade. If there is no negotiation, the merchants can keep the money in store and take interest, but the premise of this is that Franklin has a way to use the money consistently, and after using it, he can generate a lot of profit to pay the interest, otherwise he will give money to the merchants. But in the current situation, the city lord's mansion can use the trade goods of the orc tribe after obtaining a large amount of money, and the profits generated by the trade are still amazing after paying the interest on the deposit. "In order to avoid mischief and boredom, and also for the convenience of merchants, I believe that the minimum threshold for each deposit should be ten units of silver currency, so I call this organization a bank, and call it Franklin Bank. Wang Qinian said. "It's a good way to solve the problem of merchants carrying coins. The treasurer also praised. "But what if the merchants want to withdraw their money, we use the money saved by the merchants to buy goods and trade with the orcs?" said one of the interior officials, a little worried. "It's definitely a little risky, but in practice it doesn't matter as long as everyone doesn't withdraw at the same time, because there are people who keep withdrawing money, and there are people who keep saving money, and even people like the apprentices of craftsmen in the city, their money is saved for that little interest, and there is no interest at all when they are kept at home. Most of the time they save it will become long-term, and they will only take it out when they encounter a major event. We can divide the deposit period into more than one year, half a year, three months and anytime access and withdrawal, pay different levels of interest, the longer the deposit can be a little higher, and the interest rate of anytime access and withdrawal is the lowest to encourage people to save for a long time, so as to give us a longer turnover period. Wang Qinian said. Franklin looked at Bernhard, who said, "I think it's a good idea." In fact, in the big cities of Asturias and Saxon, I have long heard of goldsmiths doing similar things. As you all know, in addition to the mint, goldsmiths can also mint coins, and when people entrust gold and silver to goldsmiths for coinage or safekeeping, goldsmiths will issue a receipt, and when the coinage is completed, they will use the receipt to get the money, and they will not recognize the person. This kind of receipt will always be regarded by the merchant
Currency is used against each other and not cashed, because it is easy to carry, some goldsmiths will take advantage of this situation, in addition to taking out their own money to lend, they will also forge receipts to take out loans, and when the principal and interest are recovered, and then collect the receipts from the merchant to destroy, so that they will get a sum of interest in vain. "The discussion lasted all day and did not end until the evening. The whole plan of the "bank" took shape, including the opening of the bank's accounts, which were to be kept in the latest double-entry accounting method, and the receipts and expenditures of the deposits were prescribed in the form of books, called passbooks, and each income and expenditure had to be accompanied by a special signature, which was made by Christi Yì with his secret imprint, as a means of distinguishing the true from the fake. After the House Council, Franklin was very happy because it solved one of his big troubles. So he announced that Owen Solomon would be promoted to the rank of Interior Officer, which made the two Interior Ministers and the Finance Officer and the Tax Officer a little jealous, knowing that they were able to achieve this position but they had worked under Franklin for at least five years to gain trust, and Wang Qinian only took a few months. The attendees were also left for a family dinner, during which Franklin agreed to notarize Wang Qinian's Salomon Company, but at the same time put forward a condition that he did not expect. A bank was set up in the name of the city lord's mansion, but Franklin didn't want to be accused by the merchants of collecting money, so he planned to use Solomon & Co. as a shell. That is, the Franklin Bank lent the deposit to the Solomon Company, and then the Solomon Company was responsible for purchasing goods and trading with the orcs, and then sold them to the outside world to repay the bank loans and interest. Wang Qinian didn't expect it to be like this, he originally just turned Solomon Company into the film industry, but he didn't expect to get involved in trade. Fortunately, there are not so many restrictions in the world of Keos, and there is no strict division of what a business can do, and Shadow Animation is also an emerging industry. Wang Qinian thought about it for a while, and directly stated that he was not good at trade, but he would discuss this matter with the other shareholder, Mr. Obier, and if Mr. Obier was willing, he could cooperate with the City Lord's Mansion. Franklin was satisfied, because it was almost the same as promised, and it was almost impossible for Obiel to refuse the trade agency. Although the interest rate lent by the Franklin Bank to Solomon Company at that time must be surprisingly high, theoretically more than 95% of Solomon's profits from trading with orcs will be taken away by the City Lord's Mansion with agency fees and frighteningly high interest, but even 5% of the profit is cost-effective for Solomon, because Solomon Company only needs to borrow a name, and people from capital to actual trade will be sent by Franklin. If this kind of agency was known by other businessmen, it would definitely break the head, but Wang Qinian got this opportunity lightly. "This is a reward for you, you have been Agatha's teacher for a few months, and I have not paid you the corresponding salary. Franklin laughed. Franklin's words suddenly made those internal affairs officials feel strong jealousy in their hearts, but this jealousy only dared to be put in their hearts, they had already seen that Franklin attached great importance to Wang Qinian, and even heard that Chriss and Bernhard admired this young man very much. "But I have one more request. Wang Qinian took the opportunity to make another request. He hoped that when the second film, Alexander and the Forty Thieves, was released, Franklin would come to Obier's Grand Theater to see it himself. Before Franklin could say anything, Agatha agreed, causing everyone at the table to laugh. Agatha agreed, and there was no reason why Franklin would refuse. Therefore, Wang Qinian's goal has also been achieved, the Shadow Animation should replace the drama with the fastest degree in the Free City, and the middle and low-level routes will not have much problem, and Obier will reduce the ticket price appropriately, so that it can be promoted, but because it can be screened all the time, the income will increase more than the drama, and what we have to worry about in this regard is the number of films. But the easiest way to get the elite in the city to accept the Shadow animation is his current method, as long as he can invite Franklin to watch the movie publicly, it will be much easier for the powerful and rich in the Free City to accept it. After leaving the City Lord's Mansion, Wang Qinian met with Lizibao and Obier overnight for a meeting. Lizi Bao first reported to the two of them the results of the integration of the Daffodil Troupe, and more than 90% of the people were willing to stay, join this Solomon Company, and continue to stay in the Daffodil Troupe, and only a very small number of people did not have the confidence to leave, which can be said to be quite smooth. And Obiel was crazy happy to know that Solomon's Company, once established, would be able to act as an agent for trade between the City Lord's Mansion and the orc tribes. Orc goods are either exclusive or rare, or they are of the highest quality in their kind, but they are often more expensive than similar goods, and the prices are low when purchased in bulk from orc tribes, so they are at least 100 percent profitable, or even hundreds of percent profits. The goal of the trade between the City Lord's Mansion and the Orc tribes is to control the direction of trade, so that most of the Orc goods cannot be exchanged for fine weapons and other items, but it is not intended to occupy 100% of the transaction volume, which will also cause dissatisfaction among other merchants and reduce the status of the Free City among merchants. But assuming that the Lord's Mansion is aiming for 80 or 90 percent of the transaction quota, then 20 percent of the goods can be eaten by other merchants. Half of the 20 percent can be given to the businessman who knows the news first, and what Obiel cares about is that this means that he is already one of them, and he also has shares to distribute in the last profit of Solomon's company, and the last 10% will go directly to the bazaar. Originally, he was just running the Shadow Animation, but he unexpectedly got this opportunity, and Mr. Obier finally woke up from his ecstatic state, and from this moment on, he had decided to hug Wang Qinian's thigh. Lizi Bao has some gains and losses, because she is bent on showing the Daffodil Troupe, whether it is on the way to the drama or the new Shadow animation in front of her, she thinks that one day the name of Daffodil can become synonymous with first-class in it. From this point of view, Lizi Bao is actually against the agency trade of Salomon Company, which has nothing to do with Shadow animation and drama, in case something goes wrong, it will have to affect everyone's original career. And from the operational point of view, because the Salomon Company had to accept a large loan from the Franklin Bank for each transaction, and was burdened with a huge amount of principal and interest, this made the woman instinctively feel frightened, according to the company's contract, even if the Daffodil Troupe only had to bear 20% of the responsibility, it was a staggering amount. But Mr. Obier was overwhelmed by the benefits and insisted on agreeing, while Wang Qinian told Sù Lizihua that if she also agreed, the Solomon Company would have a relationship with the City Lord's Mansion, and the biggest advantage at the moment was that when Alexander and the Forty Thieves were released, Franklin would personally come to cheer for it. Lizzie was defeated by this news, and after thinking about it, according to the contract of the establishment of the company, even if it fails, at least she will not become a slave, because the limited liability clause in the contract The City Lord's Mansion will be notarized, which means that Franklin is approved, so she also gritted her teeth and agreed.
The next day, Wang Qinian took Obier and Lizibao into the City Lord's Mansion and notarized the establishment of Solomon's company.