Chapter 111: The strategy of the bank!

Upon hearing this, Ying Zheng frowned and sighed, "I thought the money I had extorted from the clans would be enough to deal with the temporary needs, but I didn't expect it to be a drop in the bucket now."

"This naval construction is really expensive!"

Prince Fusu's heart moved, and he hurriedly said: "Father, don't worry. Since Mr. Ye has proposed such a plan, he must have a plan in mind."

"We might as well summon him to the palace and listen to his opinions."

Upon hearing this, Ying Zheng nodded seriously and ordered anxiously: "Quick! Send Ye Chi to the palace!!"

Half an incense stick later, the palace gate opened with a rumble and Ye Chi walked in steadily. His figure was stretched out in the afterglow of the setting sun, as if he was carrying a heavy burden.

He walked through the palace corridors, his footsteps echoing in the quiet palace, with a certain calmness and determination.

Ying Zheng sat high on the jade steps. When he saw Ye Chi coming, a hint of expectation flashed across his brows.

He waved his hand to dismiss the attendants, leaving Ye Chi alone in front of the emperor, and said anxiously, "Ye Chi, the treasury is empty, and the navy needs a huge amount of warships. I thought the money I collected from the clans could solve the urgent problem, but it turned out to be a drop in the bucket. Fusu said that you must have a good plan, tell me quickly!"

Ye Chi smiled slightly, looking calm.

He slowly pulled out a piece of bamboo slips from his sleeve and presented it with both hands: "Your Majesty, this is my humble plan, which may help alleviate the treasury's difficulties."

Ying Zheng took the bamboo slips with doubt and looked down at them carefully.

The handwriting on the letter was neat and clear, and many brilliant ideas were clearly written on it.

The more he watched, the more frightened he became. A trace of shock flashed across his eyes. Finally, he couldn't help but clap his hands and exclaim: "Excellent! Excellent! Excellent! Ye Chi, you really lived up to my expectations!"

Ye Chi still maintained that faint smile, as if everything was under control.

He bowed slightly and said, "Your Majesty, you are too kind. I have only done my humble part. I hope these strategies can bring a little help to the country of Daqin."

Ying Zheng was so happy at the moment that he couldn't express it in words. He looked at Ye Chi deeply and said, "Ye Chi, I have you by my side, so why should I worry about the unrest in the world!"

There was a gleam of shock in Ying Zheng's eyes, which made Li Si and Fusu beside him feel confused.

The two looked at each other, and Fusu couldn't help but ask, "Father, does Mr. Ye have any clever ideas that shocked you so much?"

Ying Zheng smiled slightly, put his hands behind his back, and looked calm and composed.

He turned to Ye Chi, with a tone of praise: "Ye Qing, you come and explain to them!!"

Ye Chi accepted the order with a bow, and calmly began to explain: "The strategy I proposed to Your Majesty is to establish a bank to fill the national treasury!"

When Li Si and Fusu heard the word "money house", they both showed extremely puzzled expressions on their faces.

Li Si frowned and thought for a moment, then asked in confusion: "Money shop? What is this?"

Ye Chi smiled slightly and began to explain in detail: "A bank, as the name suggests, is a place where money is gathered."

"We can set up an official bank to attract people to deposit their idle money into it and give them a certain amount of interest in return."

"In this way, the banks will be able to gather a large amount of money for various national expenditures, thus alleviating the pressure on the national treasury!"

After Fusu heard this, a glimmer of enlightenment flashed in his eyes: "In that case, this money house is really a good idea, but will the people be willing to deposit their money in the money house?!"

Ye Chi nodded and said, "This is indeed the key point. We need to formulate a set of appropriate deposit and withdrawal rules so that the people can trust the bank and be willing to deposit their money in it." "Furthermore, the money collected by the bank can also be loaned to farming and commerce to encourage it, and then promote the prosperity of the court!"

Li Si frowned, obviously quite puzzled by what Ye Chi said.

He asked in a deep voice: "Lord Ye said that the loan is for farming, commerce, etc., I am quite confused... What does this loan mean?"

Fusu also looked at Ye Chi with burning eyes, obviously he was also very curious about this.

Ye Chi smiled slightly, knowing that they didn't know much about lending, and patiently explained:

"Lending means lending the money and goods collected by the bank to people in need to support their farming, trading, etc. Borrowers must repay the principal and corresponding interest within the agreed period!"

He paused, and seeing that Li Si and Fusu were listening attentively, he continued to explain in detail: "This move has many benefits."

“Firstly, it can help farmers and traders solve the problem of insufficient funds, thereby promoting the development of the national economy.”

"Secondly, the money houses can increase the revenue of the national treasury by collecting interest from loans!"

"Thirdly, this move can encourage the common people to work hard to get rich and bring vitality to the world!"

After hearing this, Li Si's brows gradually relaxed, and he clapped his hands in admiration: "Wonderful! Lord Ye is indeed very wise! This lending method can not only solve the problem of my Great Qin's shortage of funds, but also promote economic development. It is really a brilliant plan to kill two birds with one stone!"

Fusu also nodded in agreement: "Mr. Ye is right. If this method works, our Great Qin will surely become more prosperous."

Ye Chi cupped his hands and said modestly: "However... this method still needs to be carefully considered and properly implemented before it can be effective!"

After hearing Ye Chi's detailed explanation of lending, Ying Zheng could not help but nod repeatedly, with a gleam of sudden enlightenment in his eyes.

The obscure words in Ye Chi's bamboo slips became clear after his explanation, allowing Ying Zheng to have a deeper understanding of the operation of the money house!

However, at this moment, Fusu raised another key question:
"However, Mr. Ye, if people deposit money in a bank and have to pay interest, then won't the bank lose more money? How can it make money?"

As soon as Fusu asked the question, Ying Zheng and Li Si both looked thoughtful.

This is indeed a key issue. If the money houses simply give people interest and have no other way to make profits, then wouldn’t the existence of the money houses become a bottomless pit? !
Ye Chi smiled slightly and explained calmly: "Mr. What you said is very true, but the bank is not only outgoing but also incoming."

"It is true that paying interest to the people will incur some expenses, but the interest collected by the money houses from lending is enough to make up for this shortfall and even make a profit."

"Furthermore, money houses can also charge commissions by exchanging currency and providing inter-regional exchange services, which is also an important way for money houses to make money."

He paused and continued, "Needless to say, the establishment of a money house can also help promote the prosperity of the market. When the market is prosperous, the tax revenue of the state will increase. This is also a special contribution of the money house to the court. Therefore, considering all factors, the money house will not only not lose money, but can bring rich profits to our Great Qin!"

Ye Chi’s explanation made Ying Zheng, Li Si and Fusu all look relieved!
Ying Zheng even exclaimed in admiration: "Ye Chi, Ye Chi, you are indeed a genius! You have analyzed the operation of this bank so thoroughly!!"

After hearing Ye Chi's explanation, Li Si had some understanding of the concept of the money shop.

Hedge deposit interest through lending interest?
It is indeed possible...

However, he still had doubts about other things.

He immediately bowed to Ye Chi and asked, "Master Ye, I still don't understand the operation of 'exchanging currency and providing foreign exchange'. I wonder if you can explain it in detail?"

"How do banks collect commissions through such operations?"

(End of this chapter)