Chapter 1274: Tiandihui's Ambition

The entire island of Hainan now fell under Senate jurisdiction, and the volume of land infrastructure construction required for agricultural development was staggering. Although various forms of free labor were widely deployed—from Southeast Asian slaves and prisoners to immigrants, "compulsory workers" under conscription, and even military personnel mobilized for labor—these people still required tools, food, drink, and clothing. Beyond labor costs, material inputs were massive.

Development of the Agricultural Committee's directly managed enterprises was also booming, requiring immense working capital. The launch of the Engine Plan had added another burden: the Committee had also undertaken settlement work for a large influx of immigrants.

Though the Planning Commission's agricultural investment was increasing, it remained disproportionate compared to the surging capital needs of industrial construction, enormous military expenses, immigration fees, and administrative costs claimed by other sectors. Many departments felt the funding squeeze.

When money ran short, increasing income and reducing expenditure was the standard prescription. But under the Planning Commission's direction, expenditure cuts had reached their practical limits—voids existed everywhere, and there were no areas where resources could truly be saved. Ultimately, income had to grow.

Beyond trade and wartime plunder, many Senators turned their eyes inward, toward the ruled territory itself.

Resources obtained through "fighting bandits and raiding local tyrants" during bandit suppression and land measurement had been nearly exhausted, and such methods could not be repeated. As for taxation, the tax system remained incomplete and no economic census had been conducted, making new levies premature.

The only avenue left was to work with private capital within the ruled area. Lingao—indeed, all of Qiongzhou—had experienced rapid private capital development in recent years, driven by Senate policies stimulating agriculture, industry, and commerce. Not only had a class of "nouveaux riches" emerged, but a considerable "middle class" had also appeared. Combined, these two groups held substantial capital. They had both investment needs and demands for value preservation. Yet the investment channels the financial sector could currently provide were extremely limited—essentially just savings accounts.

Naturalized citizens and indigenous commoners alike knew that the "Australian Chiefs" possessed the ability to "turn stone into gold" and could profit handsomely from whatever they undertook. Many wealthy households harbored ambitions of buying shares in Senate enterprises, but so far, only the Grand World project in Guangzhou had created such an exception. In Lingao proper, only a few privileged households enjoyed such benefits.

Wu Nanhai believed that since society had such demand and Planning Commission investment fell short, there was no reason to rely solely on state funding. Absorbing and utilizing private capital would kill multiple birds with one stone.

Under the current national policy of overall planned economy with state ownership as the dominant force, completely opening private equity investment seemed unlikely. Moreover, many Senators in the assembly detested stock markets as "deceptive ghostly things" and could not tolerate state-owned enterprises being "tainted" by "private capital." Any proposal to open equity investment in state-owned enterprises would be denounced as a "feast for carving up Senate property," met immediately with declarations that "The Senate is doomed."

So Wu Nanhai focused only on plans for absorbing private capital through bonds and placing small amounts of equity capital without affecting enterprise management rights or ownership. This could significantly reduce antagonistic sentiment from the "Doomed Party" while still mobilizing private capital.

To increase the proposal's chances of passing in the Senate, Wu Nanhai had been negotiating with finance sector Senators at the Farm Teahouse for a week, gradually refining the plan. According to Senate rules of procedure, a proposal submitted by a Senator required at least five percent of Senators to co-sign before entering the procedural process. Through his efforts, he had already assembled sufficient co-signing Senators from both the Agricultural Committee and the finance sector. The primary task now was winning over additional Senators to vote in support.

The previous week, the Flying Cloud Club had held a party in the café space rented in the teahouse's podium. Wu Nanhai had specifically engaged the Qian brothers, conducted private conversations with Ministry of Forestry personnel, and corresponded frequently with county office directors stationed throughout Hainan. He was now confident the proposal would pass by simple majority when put to a Senate vote.

The finance and economics sector showed the keenest interest in this plan. After all, the current financial industry had practically no business to speak of beyond insurance and bank deposits and loans. If issuing bonds and raising shares for state-owned enterprises became established as "national policy," financial sector opportunities would multiply dramatically. Both sides found immediate common ground.

The draft plan proposed by the finance and economics sector designated the Agricultural Committee as pilot; Delong Bank would handle the issuance of government agricultural bonds for specific uses. Proceeds from bond issuance would serve as supplementary appropriation for the Agricultural Committee's designated purposes—specific project audits would remain the Planning Commission's responsibility. As for stock issuance, Wu Nanhai had originally intended to restructure several subordinate enterprises into limited liability companies. However, the finance sector advised against using Agricultural Committee enterprises for restructuring—this would face great resistance in the Senate. It would be more appropriate for the Agricultural Committee to fund the establishment of a limited liability company specifically for fundraising purposes.

"...Actually, restructuring the Tiandihui association organization under the Agricultural Committee into a joint-stock company would be most suitable." Wu Di suggested. "First, this organization already engages in commercial activities—service industry counts as commerce. Second, Tiandihui's reputation is very prominent in Lingao; using it to raise share capital would be highly attractive."

"Exactly. I've always intended to make Tiandihui significant. It's too limiting to treat it merely as a social organization similar to agricultural cooperatives."

"No—Tiandihui's nature as an agricultural cooperative social group cannot change," Wu Di cautioned. "Simply establish a limited liability company under Tiandihui, with Tiandihui as the majority shareholder."

"Then what about setting up a Tiandihui Foundation?"

"Too far-sighted." Wu Di smiled. "Take it step by step."

Wu Nanhai and the finance sector Senators had already discussed detailed issues multiple times. What concerned him now was roughly when implementation could begin to secure sufficient funding.

"It won't be early, I'm afraid." Chen Ce, Director of the Planning Division at Delong Bank, explained. "You know that the financial sector's most important task in 1633 is currency reform. Without completing that first, major financial initiatives are unlikely—when currency units change, how will previous bonds and stocks be calculated?"

"Didn't Guangzhou already issue bonds and stocks for Grand World?"

"Those were calculated in silver. Any securities issued now must be denominated in circulation coupons—and the final form of the new circulation coupons hasn't even been formally proposed yet."

"I see." Wu Nanhai was somewhat disappointed. "I was counting on expanding production after securing the funds."

The finance sector group ate and drank their fill, then rose and departed one by one—Wu Nanhai picked up the bill, of course. He asked the duty attendant to tidy the private room, set up a Gongfu tea set, brewed "Limushan Oolong Tea," and drank alone while awaiting Ye Yuming.

After Ye Yuming arrived, Wu Nanhai immediately raised the Tiandihui share-raising issue. The first step was naturally Tiandihui opening commercial enterprises—something he had intended to pursue even without fundraising. Prime business opportunities shouldn't all go to the Ministry of Commerce while his side sat empty-handed.

In Wu Nanhai's vision, Tiandihui would become the Agricultural Committee's "tertiary industry" arm in the future. Sideline enterprises currently under Agricultural Committee control would gradually be consolidated into this system. Simultaneously, the department would operate new tertiary industry projects independently.

Specifically, Tiandihui would establish Tiandihui Holdings Limited Liability Company and raise funds publicly.

As Chief Helmsman of Tiandihui, Ye Yuming had long been restless with ambition. He embraced Wu Nanhai's proposal enthusiastically and also suggested attempting to recover all fishing rights.

"We've already organized fishing cooperatives and control a significant portion of fishing rights. As for the Fishery General Brigade, the Navy won't release it yet—but we can start building public support. The Navy's operations are growing larger; they're gradually losing interest in those broken boats." Ye Yuming observed.

"True. It's just a shame the Fishery Administration Fleet is beyond reach." Wu Nanhai wrung his hands.

The two sat in silence for a moment. Then Ye Yuming produced a memorandum from his pocket:

"This is my organizational summary for Tiandihui's next phase of development."

The document outlined Tiandihui's proposed structure. Beyond the General Association Heaven Department, existing operations would all be divided into separate halls for management. Five halls were most important:

Heyi Hall: Organizing agricultural cooperative affairs for small and medium owner-peasants;

Jujing Hall: Responsible for fishery cooperative affairs;

Mengshan Hall: All agricultural technology and agricultural science service affairs;

Fengze Hall: Management of land contracted by Tiandihui;

Xingwang Hall: Micro-loan promotion services for livestock and poultry breeding.

"These halls—except for Heyi Hall and Jujing Hall—can all establish professional companies," Ye Yuming said excitedly. "If the Senate loosens restrictions a bit more, we could even start an agricultural bank of sorts, or at least an agricultural credit union. The Japanese agricultural cooperatives all have credit unions..."

"That discussion is for later. Don't mention the Agricultural Bank outside either—the Wudaokou crowd is very shrewd..." Wu Nanhai whispered.

Ye Yuming grew alert: "You're right." He shook his head with some regret. "It's just a pity we can't recover the Fishery General Brigade. Otherwise we could establish a fishery company directly!"

"I have no objection to your Tiandihui reorganization plan—it's just that we can't assemble enough people to build the framework quickly. Make do for now." Wu Nanhai continued, "I want to discuss micro-commerce with you first. I plan to operate it under Tiandihui's commercial company framework as well—set up a specialized company."

"Micro-commerce?"

"Yes. Breakfast stalls, cold drink stalls, that sort of thing."

"Isn't that individual household business?" Ye Yuming didn't grasp the point. "We don't need to hire people specifically for this..."

(End of Chapter)