C737 Bond and tax (1/2)
Xiao Letian shook his head as he broke the crumbs and explained to Zai Chun, ”Look, you already own 25% of the shares in Fu Sang Bank. You can use the proceeds from these shares to borrow from the Letian Bank.
”What can be used in exchange for borrowing and interest? ”Of course it's profits created from your shares. From now on, I can leave you a portion of the dividends from your shares as pocket money and use the rest to pay off your debts …”
”Then, send 4 million silver coins back to the capital. Other than gaining the prestige of the imperial government, you will also receive 4 million bank bonds. Those are all money owed to the imperial government by the provinces. He can't possibly refuse to pay his debt …”
”Following that, you entrusted these accounts to the Letian Bank for sale. After charging a certain amount of fees and trust fees, the debt of 4 million was broken down and divided into small bonds …”
Saying that, Xiao Letian took out a few pieces of hard paper from his bosom, attracting Zai Chun's attention with just a glance, he had never seen such exquisite paper being printed before.
He had no idea what kind of material this paper was made of, but his fingers made crisp 'ka ka' sounds as they bounced off it. Even if he used all his strength, he wouldn't be able to break it.
There were a total of three types of bonds in front of him. The first one was written with the denomination of one hundred circles, accepting votes at once without recognizing anyone. To the north, there were nine dragons coiling around, imitating the Nine Dragons Wall.
The second denomination was ten circles, still unrecognizable, with the Great Wall painted on the back. The third is a circle with a picture of Tarzan on the back.
Xiao Letian received a piece of security paper and pointed out to Zai Chun, ”Look, there is a dragon's mark on the left side of the security paper. This is a very good anti-fake mark, ordinary people can't fake it …”
”This kind of small bond is in fact the dismantling of the Treasury bonds of the Ministry of Revenue. The small denomination is for the convenience of the citizens and merchants!”
”But why do the people and merchants want these debts? That's not right, it's like you owe someone else money. Why should I rush up to buy the debt in your hands and pay it back for you? ” Zai Chun asked in confusion.
”Good question, what a good question, my family owes me money and a promissory note, why would your family use cash to buy the white sticks in my hands?” The reason is very simple, interest! ”
”This kind of bond has a year on it. According to the agreement, the citizens will be able to receive 30% interest on this bond after ten years. If you can't wait, we'll give you 15% interest in five years. If you only hold it for more than three years, then we can only give you 50% interest …”
”Below three years, Letian Firm will only pay a principal and will not pay any interest …”
”Then what if Letian Bank doesn't have the money? Everyone has already gone to fight for it. Since you guys don't have that much money to pay me back, isn't that just waste paper? ” Zai Chun was smart enough to think of the key point in an instant.
Xiao Letian laughed and said, ”That's right, there will be such worries, but don't forget, the provider of the white note is not a normal person, but a country! The local daoyin owes the country money, the country owes the bank money, and the bank owes the people money. Since this circular chain contains all the links of economic activity, we can use the bonds as the thread of the necklace … ”
”There is another thing that everyone is very familiar with, which is the taxes! ”So, don't be afraid that the bond line will break. As long as the tax line continues, the necklace will not break …”