Chapter 156: Tricking For Money
As soon as Ma Shiqi left, He Yun settled accounts with Gu Yansheng.
“The cotton mills are really cheap now, and negotiations are very easy. Given the situation in West Shanghai, I estimate Zhabei is about the same. Buying ten cotton mills could be settled for two or three hundred thousand silver dollars.
Automobile repair shops don’t cost much at all. You provide the site, we hire a few workers, buy some tools, and it can open. At most, stock some parts. I estimate a few thousand silver dollars would suffice.
But flour mills are still quite expensive. Starting two flour mills would cost at least 300,000 silver dollars. Does this have to be done?
Won’t you have too much financial pressure?”
Although the flour mill in He Yun’s hands makes money, it hasn’t been open long, with only a few tens of thousands of silver dollars in profit.
Gu Yansheng nodded affirmatively. “The new factories must be opened. I have to give the Japanese an accounting.”
The acquired factories are all stock; only newly opened factories are incremental. The money that should be spent still has to be spent.
As for flour mills being expensive, that’s because flour sells well, never lacking sales. And under forced requisition, although flour mill bosses suffer losses, the remaining flour is getting more and more expensive.
Clothes can go without new ones, but meals cannot be skipped.
“As for the money, 600,000 silver dollars is quite a lot, but I still have enough. You don’t need to worry.”
He Yun smiled. “Rich and powerful. But I have an idea that might mean we don’t need to spend our own money.”
Gu Yansheng was surprised. “Such a good thing exists? What idea?”
He Yun leaned in closer and said, “I heard you say the Wang Faction is now establishing the Central Bank?”
“Yeah.”
“Times are tough. So many factories falling into our hands, and they’re cotton mills controlling supplies. I’m thinking, what if the Japanese go crazy and those Japanese enterprises take a liking to our industries, wanting to confiscate or sabotage them?
I think we need to guard against that.
Now the Wang Faction is establishing the Central Bank. Perfect timing. We act as supporters, borrow some money from the Central Bank, repay interest monthly, and pledge the factories to the Central Bank.
Cash out the money, hold the cash in our hands—that’s definitely safe. We can advance or retreat. If something really goes wrong, we lose nothing. Let the factories go to the Central Bank and let the Wang Faction fight the Japanese like dogs biting dogs.”
Gu Yansheng’s eyes lit up. “Great idea! This idea is brilliant.”
As expected from an accountant background—this accounting is ingenious.
Gu Yansheng was already calculating how to borrow bank money to merge Shanghai’s factories, using the Wang Puppet Regime’s money to make profit. Interesting.
He Yun smiled shyly at the praise. “I mainly thought those Japanese enterprises have too much capability. If they suppress us later, that’s why I thought of borrow a chicken to lay an egg.
This matter needs you to help operate it. We definitely couldn’t negotiate it. And if it works, I think not just these new factories in West Shanghai—our flour mill in Zhabei could also borrow some money, cashing out all the 300,000 silver dollars in costs.”
Gu Yansheng raised his hand. “Piece of cake. The bank side is on me. You go acquire those cotton mills now. After acquiring, tally the machinery value in those factories and assess at new values.”
Gu Yansheng was now thinking how to inflate the factories’ value, then cash out the money.
A factory bought for 10,000 silver dollars—saying it’s worth 200,000 isn’t excessive, right?
Back in the day, it was worth 200,000!
If you opened a new factory yourself now, 200,000 might not even suffice.
“This idea is brilliant!” Gu Yansheng had to praise again.
And this idea directly gave him a chance to bring up the matter with Minister Zhou, hanging the smuggling cotton yarn pit on Minister Zhou’s forehead.
Precisely, sharing dry shares with him.
After eating some small dishes with He Yun, Gu Yansheng drove to the Hongkou hotel to find Minister Zhou.
“Minister.”
“Yansheng, perfect timing. I have something to ask your help with.” Minister Zhou invited Gu Yansheng to sit and said, “Luo Junqiang was sent to Pudong, so the China Daily matter is pending.
He told me about opening the newspaper company in Pudong. I think Pudong is a bit far from the urban area. Better to open in West Shanghai.
You’re in West Shanghai now. Can you help find a place to open the newspaper company?”
“Sure.” Gu Yansheng agreed readily. “Does the Minister have any requirements for the location?”
“Not too remote, convenient for communicating with the concession. After all, it’s a newspaper company. Many information sources rely on public opinion from various countries in the concession.”
Gu Yansheng nodded. “Got it. I think the location of Jisiweier Road where the police station is located is good. It’s separated from the concession by just one street. And opening there, if there are any troublemakers, the police station and Agent Headquarters can step in.”
Minister Zhou thought for a moment and nodded with a smile. “Good, very thoughtful. Then Jisiweier Road it is. Still need to trouble you with site selection and recruiting. Mainly the staff’s thought. China Daily may become our government’s number one newspaper later. The newspaper company’s employees’ thought must be controlled, resolutely supporting Mr. Wang’s peaceful nation-building ideology.”
“This is somewhat difficult, mainly hard to judge well.” Gu Yansheng frowned in thought and said, “But I think the impact isn’t big. We can do preliminary screening, recruit the personnel, then firmly grasp the newspaper issuance rights with the editor-in-chief.
As long as the issued newspaper content supports Mr. Wang, for the rest of their thought, we can supervise during work. This way, the newspaper company can start up at the fastest speed.”
Minister Zhou nodded. “Fine, do as you say. As for salary, I’ve thought about it—follow government establishment later. For now, pay higher, aligned with Japan. Money we’ll cover ourselves first.”
“Understood.”
“You came to see me for something?”
“Yes.” Gu Yansheng said, “Issuing bonds is still continuing. Businessmen are quite enthusiastic. Mr. Wang really has many supporters. From Shanghai, Nanjing, Jiangsu—everywhere. Just other places too remote; otherwise, I estimate even Guangzhou would have people coming to subscribe.
And during issuance, some businessmen also mentioned opinions to me, hoping I pass them to you, Minister Zhou.”
For businessmen eagerly giving money, Minister Zhou was naturally happy, with a broad smile. For opinions, he listened in a cheerful mood.
“Go ahead.”
“It’s like this. With the current situation, they feel the Japanese are too harsh. Some hope after Mr. Wang’s government is established, it can speak for them with the Japanese, making their lives easier.
They say Japanese enterprises’ suppression is really too much. Many businessmen can’t take it and fled—to Hong Kong, to Chongqing. Now those staying in Shanghai have some connections, relations in various aspects.
But even these people are just scraping by. Far from expanding business or driving the economy—that’s exceedingly difficult, even impossible, because of uncertainty.
They gave me an example: a cotton mill invested with 300,000 silver dollars could break even in a year pre-war. Now? Barely breaking even monthly, and that’s with their connections.
Situation turbulent, payback distant, so no willingness to open new factories.
Losing business no one does. I thought after hearing they have a point. How bad Shanghai’s economy is under Japanese rule—you must have seen these days.
Our new government established, we need to improve the economy, get taxation, right?
So, telling you this situation. I think we can’t drive them all to Hong Kong or Chongqing. What do you think?”
Minister Zhou smiled after listening. “Don’t worry about this. In fact, Mr. Wang and I have considered this. In subsequent negotiations, we’ll discuss with the Japanese, taking all factories’ management and taxation power into our hands.
The Japanese actually have this willingness too.
Government operations and army military expenses need spending money. Japanese enterprises now withholding Chinese-owned enterprises’ money—if under Japanese rule themselves, it’s just left pocket to right pocket, meat rotting in their own pot.
Nothing more than money that should go to Japan’s treasury ending up in some Japanese enterprises’ hands.
But after we build the nation, if this money still goes to Japanese enterprises and we don’t get it, Japan’s treasury has to allocate another sum to us for military expenses.
This their cabinet absolutely cannot bear, especially the Ministry of Finance, which won’t sit idly by.
So in later negotiations, this problem will definitely be resolved.
Control of Chinese-owned enterprises and supplies circulation will return to our hands. This is determined by Japan’s domestic situation; Japanese enterprises can’t obstruct it.”
Gu Yansheng smiled modestly. “One sentence awakens the dreamer. Mr. Wang and Minister Zhou have considered thoroughly. Businessmen are fortunate.”
Minister Zhou waved indifferently with a smile. “Their suggestion is good. Any more suggestions?”
“Yes.” Gu Yansheng nodded. “When they mentioned this, they also said if this problem is solved, they’re willing to expand production. Expanding production needs funds. Rather than loan from Japanese banks, better give the interest to the upcoming Central Bank.
Their meaning is, they’re willing to support the Central Bank, just hoping for preferential interest rates from the Central Bank.”
This touched Minister Zhou’s private turf. Coming to Shanghai for negotiations, the top priority was grabbing financial power. The Central Bank had to be in his hands.
After thinking, he said, “Tell them, opening factories benefits country and people. For their support, I on behalf of Mr. Wang warmly welcome it. The Central Bank will definitely give them preferential loan rates.”
