Chapter 2653: The Capital (Part 9)

"But if you speak of leaving," Liao Sanniang continued, "where exactly could you go? Defect to the Great Ming? The Senate's ambition to seize the realm is plain for all to see. Only Lord Chongzhen in this Beijing city, along with the various cabinet ministers and grand eunuchs, still pretend to be ignorant. Within a few years, the Great Song's Imperial Guard will sweep across the world. The change of dynasty is imminent."

She paused briefly, her voice turning cold. "If you abandon light to embrace darkness at such a time, do you truly believe the Great Ming can protect you? Or perhaps you intend to abscond with Delong's silver and vanish into the wilderness? You must understand—this sky belongs to the Senate, and this earth belongs to the Senate. When the world is unified, though the heavens are vast, there will be no hiding place for traitors; though the land stretches wide, there will be no hole for villains to crawl into. Though the Senate is merciful and does not practice the calamity of exterminating entire clans, the relatives and families of everyone here reside in Guangzhou Prefecture. When that time comes, your parents, wives, and children will all be classified as rebels' kin. How rebels' families are treated—everyone witnessed it firsthand in Guangzhou. They cannot enter schools. They cannot work in factories. They cannot sit for civil service examinations. As long as the Great Song's national destiny endures, they will bear the status of rebels' families. Your children will be slaves and servants for generations. Your descendants will be bandits and prostitutes for generations. You will shame your ancestors in their graves and leave an infamous legacy for a thousand years."

Having said this, she pursed her lips into a thin smile. "And taking ten thousand steps back—even if the Great Song chose not to pursue you, you are people who came from Delong. Who doesn't know you're a piece of fat meat? Who wouldn't want to take a bite? Setting aside those parasites in the government, even if you have brothers with whom you've shared life and death, I'm afraid that with gleaming silver before their eyes, you won't remain brothers for long."

Liao Sanniang pressed on. "The Beijing Station is not Master Leng's personal Beijing Station. If Master Leng is absent, do we simply stop working? Some people believe that since Master Leng is not here and cannot be rescued, the Beijing Station is on the verge of collapse—that the Great Ming's Factory and Guard are about to burst through our doors, and everyone will immediately be cut into a thousand pieces. Some people are afraid." Her eyes swept the room. "But if you are afraid, will this trouble simply pass? It will not. This is a matter. And since it is a matter, it must be handled."

Her tone sharpened as she added, "Fortune relies upon misfortune; within misfortune hides fortune. When adversity reaches its extreme, prosperity follows. Chairman Wen taught us: Crisis—weiji—means where there is danger, wei, there is also opportunity, ji. Handling any situation depends on nothing more than men and money. We may not have many men, but we have plenty of money. There is still much that can be salvaged. Master Leng's absence is temporary. At this critical moment when people's resolve wavers, we must twist ourselves into a single rope and work together as one. Alive, we are loyal ministers of the Great Song. Dead, we are martyrs of the new dynasty. We stake the peril of our own lives to secure fortune and prosperity for ten thousand generations of descendants."

At this, Li Rufeng also rose to his feet. "Sanniangzi sees matters clearly. Today, to borrow Senator Leng's words, is about unifying thoughts and consolidating strength. Whatever different notions anyone harbored before—consider that page turned. But from now on, if anyone proves half-hearted again, Li One-certain may recognize him, but the knife in my hand may not." His gaze hardened. "Having been dispatched outside for so long, I fear many have forgotten that behind the Beijing Station stands the Senate."

Liao Sanniang took over seamlessly. "Qiwei maintains a secret box for transmitting messages. Do not imagine that by selling out others, you can keep your own hands clean."

Though no one present spoke, their hearts had long gone numb with shock. What they feared most now was disintegration. It was best that someone was willing to step forward and take charge. Everyone felt they had found some backbone, and the panic and unease eased somewhat.

Wu Kaidi spoke up. "The urgent task is to arrange Delong's business properly."

Once Leng Ningyun's case had broken, Shuntian Prefecture would inevitably summon witnesses to the yamen for questioning. Trials of this nature often dragged on for several months. Moreover, the yamen's practice of detaining and summoning witnesses followed the same logic as bandits "inviting the God of Wealth"—the more people they could drag into the detention center, the better. Without advance preparation, Delong's business backbone would almost certainly be swept up in one net. After that, there would be no business left to conduct.

"The bank's business has not been as prosperous as in previous years," Wu Kaidi said, choosing his words carefully, "but there are still many deposits and remittances. If problems arise with these operations, not only will the bank face imminent danger, but the Beijing Station will also lose its foundation. Therefore, our first task must be to maintain the bank's business."

Wu Kaidi had not come from a banking background, but he had followed Leng Ningyun for a long time and knew the bank's situation like the back of his hand.

"Although the bank's business is personally managed by the Master and I haven't seen the account books, I have a general understanding. There are no issues with receipts, payments, and remittances. As long as no one exploits our misfortune, even without the Master present, this portion can maintain the status quo. We will temporarily hold steady and conduct business as usual."

However, Assistant Manager Xiao interjected, "Mister Wu! What you say is correct, but there is one problem: our bank extends credit. Now that there is no news of Master Leng, without anyone needing to exploit our misfortune, word of Delong's instability will spread through the market immediately. When depositors come to withdraw their money and trigger a run, disaster will strike at once! If someone fans the flames and throws stones at us while we're down, the bank will be forced to close within three to five days!"

The deposits the bank attracted could not "make money from money" on their own. The bank relied entirely on lending them out to earn the interest spread. This was the oldest and most fundamental business of the banking industry, and Delong was no exception. The hundreds of thousands of taels in silver deposits it had absorbed in the capital also depended on lending to generate interest.

In the seventeenth century, industry and commerce in Beijing and its surrounding areas were actually quite backward, with no commercial activities requiring massive flows of capital. The accumulation of vast sums in the capital stemmed purely from its status as the seat of power. But this also meant that funds absorbed from across the country had no local investment channels.

In the capital, there were "Beijing Loans"—loans extended to officials assuming posts in the provinces—which claimed enormous profits from small outlays. But the volume was limited. The truly large-scale commercial loans were found only in the Mongolian trade beyond the passes. Not only did this trade require substantial capital, but the profits were incomparably rich.

The Mongolian trade was customarily dominated by Shanxi merchants, though much of the capital originated in the capital city, and it had long been monopolized by the "Shanxi Houses." As a latecomer, Delong, under Leng Ningyun's direction, had made many attempts to break in but could never gain a foothold. The solidarity of regional merchant groups was far too formidable for an outsider like him to crack.

Therefore, Delong's funds flowed primarily to three destinations: first, the Korean trade in Tianjin, which also encompassed transactions with the Manchus; second, the Shanghai Merchant Bureau's trade with Japan and the silk business in Zhejiang; and third, direct remittance back to Guangzhou for use in the Planning Agency's various investment and trade projects.

The profits from all three channels were handsome, allowing Delong to offer interest rates comparable to the Shanxi Houses. Leng Ningyun deliberately avoided using excessively high rates to attract deposits—first because he considered it unwise, and second to avoid provoking existing financial powers and making too many enemies.

Because all investment channels lay elsewhere, the reserves in Delong's hands remained thin. Leng Ningyun maintained only a 12.5% deposit reserve at Delong. When the currency reform commenced in Guangzhou, Delong had mobilized large amounts of silver from various locations, and its reserves had once dropped to a mere seven or eight percent.

"Just the interest, acceptances, and remittances due this month amount to nearly thirty thousand Kuping taels." Assistant Manager Xiao's expression was troubled. "The ready silver in the vault is less than eighty thousand taels. If a run occurs, we cannot hold out for even three days!"

Wu Kaidi said, "This is precisely why we must work together in harmony! I don't understand the intricacies of banking, but since the Master is absent, we must exhaust every possible means to preserve this enterprise! As long as Delong can be maintained, it will at least count as atoning for our failures."

Liao Sanniang nodded. "Mister Wu speaks sense. We are here to discuss solutions, not to pour out our grievances. If there are difficulties, bring them forward for discussion—but we must also propose solutions. We do what can be done."

Delong's Head Accountant gave a light cough. He was a middle-aged man, a veteran from the Guangzhou Station era who had served as chief accountant of the Purple Brand Account Room. He was well-versed in both the Australian accounting system and the Great Ming's commercial bookkeeping. In a low voice, he said, "Assistant Manager Xiao is right. Once a run begins, Delong is as good as dead. Delong is not well-regarded here. Given the chance to strike while we're vulnerable, the Shanxi Houses will pile on without hesitation. They will refuse to honor the notes we have issued while delaying payment on the debts they owe us..."

"Then what should we do?" Wu Kaidi asked anxiously.

"Simply expanding our reserves won't allow us to compete with the Shanxi Houses. Moreover, at this point, there is nowhere to transfer silver from. We are far from the Senate here, and transferring silver is not something that can be accomplished in a day or two..."

Assistant Manager Xiao spread his hands. "Given the current situation, it looks grim! I think we should close the shop first and have everyone scatter to lie low for a while. As long as the doors stay shut and no one can be found, no one can demand a run, can they...?" As he spoke, he caught Liao Sanniang's fierce gaze and felt his heart quail, not daring to continue.

Another manager, Manager Wei, could no longer hold back. "Master Xiao! This plan of yours isn't necessarily wrong, but if we go into hiding, what if it incites a mob to storm the premises? There have been repeated precedents for this. Setting aside the silver, there are also..."

Delong contained not only a large store of silver but also numerous Australian precious goods, various account books, and intelligence collected over many years. None of these items could bear exposure. If a mob attack were triggered, leading the yamen to seal and search the premises, everything would be laid bare in an instant. Regardless of whether Leng Ningyun could return safely, the stronghold of Delong would be utterly finished.

The Head Accountant spoke again. "Hiding won't work; continuing business won't work either. This matter must depend on Old Wu."

Wu Kaidi understood his meaning. "You mean... have the government seal the premises..."

"It would be best for Shuntian Prefecture to come forward," the accountant said. "That way, Delong's business would naturally cease as a matter of course. However, there is a crucial distinction—it can only be 'sealed,' not 'confiscated.' The key to this hinges entirely on you, Master Wu."

Everyone present showed hesitation. If the shop was sealed, a bank run could indeed be averted in the short term. But once sealed, they would become fish on the chopping block. If someone harbored ulterior motives, they could easily use the seal as pretext to conduct a "raid and inspection." Moreover, even a brief sealing would deal a severe blow to their commercial reputation.

None among them could make such a decision. Wu Kaidi finally said, "I had better go to the yamen first and see what can be done. Perhaps there is some way to reach a compromise—to have Delong suspend operations without invoking the formal seal."

(End of Chapter)