Chapter 110: Circulation
The City Government Meeting requested by Gu Yansheng.
Gu Yansheng had his secretary distribute the signed documents to all the directors.
“Consider it a mission accomplished. I’ve negotiated with all the various forces, and Mr. Hase has also signed. Three to four tenths of all of Shanghai’s drug revenue—this amount shouldn’t be small.
All drugs will go through the Anti-Drug General Bureau, all with records, so the flow of this money will definitely be clear. I’ve completed the mission, and they’ve also promised not to cause trouble anymore. Gentlemen can rest assured and develop the economy.”
Several directors looked at the documents. Someone took the lead and laughed, “Director Gu’s ability is beyond doubt, but this is the Anti-Drug General Bureau’s matter. Calling us here today shouldn’t just be to notify us and have us praise you, right? Our praise doesn’t come with a bonus, hahahaha.”
“Now Director Gu is also concurrently the director of the Anti-Drug General Bureau. Why would he need us to give bonuses? There must be plenty of people treating Director Gu to meals.”
“Yo yo yo, sour grapes. When the Japanese told us to take this job, you were there too. If you wanted meat, why didn’t you speak up then? Director Gu handling this bunch is his real skill.”
“I’m not saying I’m jealous, just envious.”
Indeed envious. They’re all officials—how could they not know how much oil and water there is in this?
Gu Yansheng smiled and said, “Don’t envy anymore. I called everyone here today mainly because I have an idea.
The City Government’s finances have always been tight. Applying for funding for anything requires layer upon layer of approval from the Japanese. Issuing a bit of welfare to the people below is even harder.
Behind closed doors, I’ll say something for our own convenience.
Open sources and cut expenditures. I’ve opened the source. Mayor Fu or gentlemen, can you think of a way to have the Japanese leave us a little? After all, these hardscrabble days are truly miserable.
I also want to give more subsidies to the people below. Prices in Shanghai now aren’t cheap.”
As soon as these words came out, all the directors’ minds stirred. So this was the matter today—then there was something to say.
The Tax Bureau can collect taxes, Finance can have more money, with money they can do construction, the Construction Bureau gets oil and water, and all the miscellaneous departments can get a share of the soup.
Even a little less, issuing allowances to subordinates is still good.
“I think what Director Gu said is very reasonable.”
The Director of Finance spoke first, glanced at everyone, and said earnestly, “Our new government’s main income at present is taxation, but everyone knows that the situation in Shanghai has only been good for a few months, and now Sheng Wenyi has messed it up completely. The income for the next few months is predictable.
Why do we need layer upon layer of approval from the Japanese for anything we do? Isn’t it because we have no money ourselves, and if we really need to do something, we still have to beg them for funding?
Now with such a good taxation opportunity from drugs, if it really falls into our hands, how much pressure can it relieve for us?
At least we won’t have to beg grandfather and tell grandmother every time, right?
Mayor Fu, I think this matter is worth fighting for.
This drug business is inherently one of Shanghai’s businesses, and the income should rightfully go to our new government.”
“The Japanese collect drug profits to compensate for their own military expenses. Do you think they’ll let us have this portion of the profits?” Fu Xiao’an rolled his eyes in retort.
The Tax Bureau Chief said, “If we don’t fight for it, we definitely won’t get it. What if we fight and get it? The new government is under the Gendarmerie Headquarters’ jurisdiction, but the Japanese governing Shanghai also rely on us departments, right? With so many departments here, how could there be any reason not to let the horses eat their fill?”
“Yes, it’s worth fighting for. Mayor, this can be tried. We can think of ways and jointly report it.” Several directors chimed in agreement. No one would refuse a money-making matter.
With public opinion swelling, Fu Xiao’an also became interested. As mayor, more funding meant more power for him—this was definitely beneficial.
Looking at Gu Yansheng: “Director Gu, you’ve accomplished this matter for the Japanese, so you definitely have merit. Why don’t you find time to report it and conveniently make the proposal? You’re the most convenient.”
The other directors looked at Gu Yansheng. It was best if someone else took the lead.
But Gu Yansheng sneered, “Mayor, I’m too busy avoiding suspicion to go. How could I? Don’t forget, my relationship with Commander Iwasa isn’t good. If I make the proposal, aren’t you afraid this matter will have no room for maneuver at all?
It’s not that I won’t. If you all don’t care about the result, then neither do I. I’ll say it if I go.”
“Then it’s still something we care about. Director Gu can’t be the one to say it.”
“Yes, yes, Director Gu can’t go.”
The other directors, upon hearing this, absolutely could not let Gu Yansheng go.
Fu Xiao’an truly felt Gu Yansheng was like a mudfish—ask him to exert a little effort and he’d deflect it righteously.
Gu Yansheng kicked the ball back with one foot: “If I may say, you’re the mayor, so this matter still has to be you. You can call Nanjing. Nanjing isn’t satisfied with the Gendarmerie Headquarters acting arbitrarily this time, nearly collapsing Shanghai’s economy.
Keeping some funds in your hands is also for emergencies. At critical moments, it can be very useful, like a stock market crash where the government steps in to stabilize the market, right?”
“Yes, Mayor, this matter still needs you to step up. Your words carry weight.” A bunch of directors began to egg on Fu Xiao’an and praised him one after another.
Fu Xiao’an, cornered, said impatiently, “Stop flattering. Is flattery useful? I need a good excuse to talk to the Japanese too. One by one, your minds perk up at the mention of money, but usually when I ask for suggestions, you all play deaf and dumb.
Fine, everyone wants money, right? Then come up with ideas. Everyone think of ways. Whoever comes up with one, I’ll go negotiate.”
And just like that, it was settled.
“I have a pile of things on my end now, so you all discuss it. I’ll go handle mine first.”
Gu Yansheng took his leave. Anyway, how much money they could deduct was their own skill. For something that could make money, they would surely be very diligent.
Just wait to share a bit of the soup.
Back at the office, Liu Xiaolou reported that Liu San had come.
“Where is he?”
“I didn’t let him into your office. I had him wait in the meeting room.”
“Mm, call him over.”
A moment later, with the door closed, Liu San brought over the counterfeit currency he’d just received.
“Director Gu, the goods are ready. Take a look.”
Gu Yansheng picked up a one-yuan denomination military scrip, felt it first, and was greatly surprised: “Not bad, your texture is no different from Japanese yen. Military Statistics Bureau has plenty of talent in Shanghai.”
Liu San chuckled, “The paper isn’t our merit. It came from Chongqing. We don’t have time to make paper.”
“No wonder the texture is so good.” Gu Yansheng held up the military scrip and examined the details again, fairly satisfied.
“Good, though there are flaws, even I couldn’t tell it was fake at first glance. It’s good enough. Ordinary people in Shanghai won’t spot it easily.”
Gu Yansheng thought for a moment, handed back the money, and said, “Hurry up and print. Print as much as you can. A little fake money lets us take small advantage, but massive fake money will cause market panic. With fifty million, we can play a big one. With three hundred million, five hundred million, I can completely destroy the Japanese military scrip’s credit. Up to you.”
Liu San nodded to show understanding, “Alright, if you think it’s usable, I’ll go arrange it.”
Liu San sent word back.
The underground printing factory printed with full effort.
Gu Yansheng required at least fifty million. The printing factory worked themselves to death; with their capacity, working flat out one day could only produce three hundred thousand sheets. Spread across denominations, printing would take twenty days or so.
This matter couldn’t involve too many hands. Chen Mo, the dignified Iron Blood Assassination Group team leader, transformed into a printing worker, taking shifts with the original printers, working twenty-four hours nonstop.
Three hundred thousand sheets a day sounds like a small amount, but piled up, it fills several large suitcases.
Military scrip piled like waste paper in the corner. Liu San fed back the printing factory’s progress to Gu Yansheng.
“Slow printing doesn’t matter. You can spend while printing.”
Gu Yansheng gave them an idea, “With twenty million, you can start spending. Military Statistics Bureau definitely has others in Shanghai. You can contact Chongqing, divide the money you’ve prepared, and deliver it to them in appropriate ways without meeting. Set a location for them to pick up.
Fifty thousand to one million per person.
As for the retrieved money, don’t spend it in daily consumption—that’s too slow and easy to get caught over time.
Go to casinos. West Shanghai concession has plenty of casinos. The stimulating casino environment makes people lose their heads easily, good for passing fake currency. Once money enters the casino, it will naturally circulate throughout Shanghai with the gamblers.
Speed must be fast—within one or two days, dump all twenty million in dozens of casinos. By the time the casinos react, you’re gone.
The money you win back is real military scrip. Find underground merchants to exchange for yellow croakers and make a profit.
Of course, if there’s extra money, you can also exchange with underground merchants. Military scrip is new; they might not recognize it yet.”
“Got it, I know what to do.”
As Liu San went back, Military Statistics Bureau began acting per Gu Yansheng’s method, and quite cleverly designed.
Chongqing sent sixty new people to Shanghai, three per group. Each group picked up a suitcase at the designated spot—not just fifty thousand, but with a note revealing the mission to Shanghai.
Each note specified three casinos. The three cooperated, posing as Shanghai-bound businessmen or second-generation heirs: one gambles, one attendant collects winnings, one outside provides new money and keeps watch.
Never exceed fifty thousand per time to avoid attention from too much money. Cycle through several casinos. Must separate real and fake military scrip. For twenty million, even Boss Dai is tempted, aiming to recoup at least half here.
Half is ten million. Legal tender and military scrip are still one-to-one—that’s ten million legal tender, no small sum.
Things progressed smoother than expected. In fact, many groups finished gambling on the first day and, per remaining orders, went to the designated underground merchants on the list to exchange for gold US dollars and take back to Chongqing.
But as expected, an accident still happened.
Shanghai has many experts. At the end of the first day, casinos inventorying funds, a veteran spotted the issue with the military scrip, feeling it differed from the past few days.
Upon close inspection, indeed there were two kinds of military scrip, both with excellent texture and appearance—unnoticeable without scrutiny.
And more ridiculously, both kinds had substantial quantities.
Previously, fake currency was one or two sheets, at most a few. Like this, thousands or tens of thousands—this wasn’t fake currency; it was like the Japanese issuing it themselves.
“Damn, which is real?”
“Could both be real? Military scrip is new, issued by Japanese. Even if there’s fake, it couldn’t be this fast. Maybe Japanese printing batches differ, different machines, hence the difference?”
“Kid, what you say makes sense.”
But since it involved money, they had to get it identified.
Behind the casinos is the Green Gang. The news went up the chain straight to Zhang Xiaolin’s ears.
Only by the time he knew, it was already the afternoon of the second day.
Casinos finished inventorying at dawn on the first day; reaching him by afternoon meant serious escalation and rapid reporting.
Zhang Xiaolin didn’t understand money, but this could be judged by Sha Shun.
Sha Shun directly brought in people from the British bank to judge, and the result was accurate.
“Counterfeit banknotes! Military scrip is a modified version of Japanese yen printing technology. Though called military scrip, it’s essentially Japanese yen. This new style is impossible, and no different machine batches exist, so it’s definitely fake.”
The expert’s words made Sha Shun’s face sink.
Counterfeit banknotes appearing so fast was practically his doom.
“You go back first. Remember confidentiality—don’t tell anyone.”
“Got it.”
Sha Shun sent off the British bank person and looked at Zhang Xiaolin, “How much?”
Zhang Xiaolin nodded, “A lot. Though currently only one casino has this batch, pulling off such a big move means they’re capable. I’m afraid other casinos have it too; already sent people to check.”
“Don’t check!” Sha Shun suddenly raised his hand to stop, “Absolutely cannot check. Checking means too many know. Call immediately—have all in the know shut up.”
“But what about the fakes?”
“Call first.” Sha Shun urged while saying, “Have them send all the money here. We can’t keep counterfeit currency ourselves. Exchange everything back with the Japanese—must finish before news leaks, or we lose big!”
Zhang Xiaolin understood and immediately called to instruct subordinates to collect and send all military scrip.
Time was of the essence. Sha Shun waited while contacting his business firms to prepare. Money arrived, immediately go to the Economic Department to exchange.
The two waited anxiously. Good news: an hour and a half later, word came that City Government Economic Department staff exchanged everything for them—didn’t recognize it as fake at all.
“Hahahaha.”
Sha Shun laughed after the tension.
After laughing, he was stunned. What next? Continue collecting?
Not collecting means no profit; collecting risks it stuck in hand anytime.
The two discussed and felt the business could continue—as long as exchanged daily without overnight hold, the daily amount wouldn’t lose much at worst. No reason to not make money.
And if trouble really came, Sha Shun could still argue with the Japanese.
But Sha Shun thought of another way.
“These people might come again. Send people to watch. Spot their traces and bring them. We might negotiate a deal to receive goods directly from them.”
Zhang Xiaolin got it instantly: “Buy at discount, sell directly to Economic Department?”
“Exactly.” Sha Shun smiled: “This way, always cash out, zero risk, and discount can be pressed very low.”
Per counterfeit currency market trend, even top quality, fifty percent discount is max—and only if the other side has clout for this sum. If small fry, twenty percent is polite.
The profit here rivals robbing a bank, faster than drug trafficking.
Zhang Xiaolin nodded and immediately instructed subordinates to watch for who was passing such military scrip.
Good news: they did spot some. Two groups came gambling today. Bad news: when subordinates approached, hand on shoulder, cockily saying “Our boss wants to chat with you.”
Military Statistics Bureau people thought exposed and bolted.
