A century-old wealthy family that rose from Shanghai

Chapter 258 Loaning a Huge Sum of Money
At this time, Li Guojie was waiting for Chen Fumu to pay back the money.

This is what happened:

In early 1932, he became the general manager of the China Merchants Steam Navigation Company. He felt safe and secure, and he quickly exploited his position to take bribes and kickbacks, sell jobs and ships, and indulge in a life of luxury. In just six months, he had brought the entire China Merchants Steam Navigation Company to a state of disarray and heavy debt.

China Merchants Steam Navigation Company borrowed a lot of money from major banks in Shanghai, and one of the creditors was the British-run HSBC.

The British learned that Li Guojie was not very capable and were afraid that they would not be able to recover the debt in the end, so they asked the China Merchants Group to pay off the debt within two months, otherwise they would sue him in court.

Li Guojie was now anxious. If this matter went to court, he would definitely be held responsible. However, China Merchants Group was already heavily in debt, so how could it afford to pay it back?

Li Guojie was so anxious that he was running around in circles. He was angry at his subordinates all day long and asked them to find a way to make money as soon as possible.

At this moment, a confidant came up with a good idea.

This confidant, named Yang, was quite intelligent. He said to Li Guojie, "Sir" (Li Guojie's business card still bore his Qing dynasty title), how many docks does the China Merchants Steam Navigation Company, which you manage, have? There are over a dozen docks, large and small, in Shanghai alone. Which one wouldn't be a treasure? Which foreigner wouldn't be drooling over? My suggestion is, why not mortgage one of your small docks to the foreigners? That would bring in at least a million or eight hundred thousand."

Li Guojie's eyes lit up when he heard this idea; it was indeed a great way to make money. However, he knew full well that the so-called "mortgage" was essentially selling it to someone else, something the government would absolutely not approve. If such a thing were to become a public issue, it would be considered the unauthorized sale of state-owned docks, a serious crime.

However, Yang's confidant explained that the matter should be referred to as a "temporary mortgage" and would be reclaimed soon. Furthermore, a petition must be submitted to the Ministry of Transportation so that if an investigation were to occur, the responsibility could be shifted to the Ministry.

As luck would have it, just as Li Guojie was thinking about this, an American businessman came to visit, hoping to "lease" a few dock warehouses. Li Guojie heard the word "lease" sounded much more comfortable than "mortgage", not bad, I can borrow it.

Li Guojie immediately arranged for his staff to handle the matter. A few days later, the negotiations were concluded, and the China Merchants Steam Navigation Company mortgaged several warehouses, including the Shanghai Jinliyuan South Warehouse, the Sichuan Road North Warehouse, and the Pudong Hua Warehouse, to Bank of America. The company received 3000 million yuan in mortgage payments, and Li Guojie personally received a 100 million yuan kickback.

The deal was done, but Li Guojie knew he had to get approval from his superiors as soon as possible to be safe. To this end, he immediately contacted Huang Jusu, a senator at the Ministry of Communications, and Cai Pei, director of the Navigation Administration, both living in Shanghai. He gave each of them tens of thousands of yuan and asked them to help coordinate with the Ministry of Communications to quickly approve the documents.

Huang Jusu brought the petition to Nanjing and delivered it to the Ministry of Communications. Coincidentally, Chen Mingshu, then Minister of Communications of the Nationalist government, was busy preparing for an overseas inspection tour, leaving all specific matters to be handled by Huang Shaohong, Minister of the Interior. Huang Shaohong, who was serving as a temporary assistant at the Ministry of the Interior, felt it would be inappropriate to interfere in the affairs of the Ministry of Communications, so he handed all matters over to Chen Fumu, Deputy Minister of Communications.

When Chen Fumu saw Li Guojie's petition, he was stunned. What did "temporary mortgage" mean? It was clearly theft and sale of land! However, Chen Fumu did not make any public announcement or issue any instructions. He simply took the petition out and put it in his briefcase.

A few days later, Cai Pei, the Director of the Navigation Administration, who had been wooed by Li Guojie, arrived and immediately asked about the petition. Chen Fumu's face changed, and he said, "This is reckless! This is reckless! If things go wrong, you might end up in jail!"

Cai Pei quickly said, "Deputy Minister, if the China Merchants Steam Navigation Company goes bankrupt, we won't be able to survive either. Let them temporarily mortgage a few docks and secretly redeem them in two years."

After that, Cai Pei took out a check for 5 yuan and placed it on the table, saying, "Deputy Minister, as long as you say yes, I will do it right away, even without approval!"

Chen Fumu was waiting for this sentence. He nodded and put the check in his pocket.

The next evening, Chen Fumu called Li Guojie directly. After a brief conversation, Chen Fumu asked Li Guojie how much money he had received. Li Guojie was stunned by the question and stammered that he had received a total of 100 million yuan, but he had already distributed some of it, and now had more than 70 yuan left.

Chen Fumu said directly, "The situation is this: our department recently purchased some necessary equipment in Shanghai. Could you please advance 70 yuan for three days? We'll return the money immediately after three days. What do you think?"

Li Guojie was stunned when he heard this. He hadn't even had the bribe in his hands for long! But since Chen Fumu had asked, how could he refuse? He just wanted to lend it to him. It would be back in three days anyway.

The next morning, Chen Fumu rushed to Shanghai by bus and received a Citibank check for 70 yuan from Li Guojie. Without delay, he immediately transferred the money to a foreign bank in Macau.

Next, Chen Fumu was preparing to arrange for his family to leave China on a foreign cruise ship within two days.

Here
Li Guojie was still waiting for Chen Fumu to pay back the money, and Chen Fumu was still making careful arrangements for the escape of his entire family, but neither group knew that Du Yuesheng and Zhang Xiaolin were eager to make a contribution, so they arrived in Nanjing that afternoon to meet the commander-in-chief.

These two people are also well-known figures in Shanghai. When they came together to "report", the commander-in-chief naturally took it very seriously.

So Du Yuesheng told the commander-in-chief everything that had happened to Li Guojie over the years. This was the first time he knew that Li Guojie had nearly bankrupted the China Merchants Steam Navigation Company, had Wang Yaqiao assassinate his confidant Zhao Tieqiao, and had stolen and sold the dock warehouse...

There was still room for maneuver in other matters, but as soon as the name "Wang Yaqiao" was mentioned, the commander-in-chief was completely furious.

Because Wang Yaqiao, the legendary killer, had sent people to assassinate the commander-in-chief many times - a year ago, on Mount Lushan, the killer sent by Wang Yaqiao fired several shots at the commander-in-chief, but fortunately, the distance was too far and the killer missed, so the commander-in-chief escaped.

How could Li Guojie actually collaborate with Wang Yaqiao?

The commander-in-chief immediately ordered T.V. Soong to rush to Shanghai to investigate the matter. At the same time, he called Wu Tiecheng (Chief Executive and Commander of the Garrison District) and asked him to arrest Chen Fumu, the Deputy Minister of Communications who was about to flee.

Two days later, this corruption case that shocked the whole country was reported by the Oriental Daily, causing a huge sensation.

To fill the hole, Li Guojie, the general manager of China Merchants Steam Navigation Company, actually "transferred" the state-owned dock to a foreign bank and received a bribe of 100 million yuan. He has now been arrested. Chen Fumu, the deputy minister of the Ministry of Transportation, transferred the bribe money to a bank in Macau and tried to flee abroad with his family. He was intercepted by the Shanghai Municipal Security Bureau at the dock. Cai Pei, the director of the Navigation Administration, and Huang Jusu, a senator of the Ministry of Transportation, were also involved.
For a time, the already shaky China Merchants Group was on the verge of bankruptcy.

Of course, the Nationalist government also took this opportunity to completely nationalize the China Merchants Steam Navigation Company, eliminate the private capital within it, and reorganize it.

Naturally, for a long time, China Merchants Group had no time to take care of the first and second routes of global shipping.

the other side.

Citibank finally completed the review in mid-September and stated that the four major companies mortgaged by Chen Guangliang could obtain a loan of US$9 million for a period of two years.

Chen Guangliang also readily agreed. After all, foreign banks are very cautious about lending, and credit loans do not exist.

180万美金，目前相当于沪市的约800万两白银（1两白银为31.5克，16两制），差不多是1200万大洋。

目前海外的白银在0.25美元/盎司，已经到了历史最低价。相当于180万美金可以购入720万盎司的白银（1盎司为28.35克）。

Of course, agency fees, etc. need to be deducted from this.

As for the specific operation method, Chen Guangliang first deposited the US$180 million loan into Ping An Bank; and then delivered it after Citibank purchased a batch of silver.

In fact, the cost is probably only slightly lower than exchanging silver in the Shanghai Stock Exchange. However, the nature is different, as silver flows into China from overseas.

Friday, September 9st.

On this day, Ping An Bank Building was put into use, and Ping An Bank's reputation became even more famous.

The fact that this building was completed and put into use in just ten months is a miracle.

This building has been widely reported by the media in the past few days:
"Shen Bao": The exterior facade of the Ping An Bank Building presents a typical modernist style. It is seven stories high and has a tower at the central corner, making it even more imposing.

Oriental Daily News: "The towering tower at the gate, reaching high into the clouds and dominating the north-south thoroughfare, adds to its grandeur. The main gate, majestic as a crouching tiger, and the latticework, graceful as brocade, are both dazzling and practical within."

The total investment of this building is 85, and it is announced to the public that the investment is 100 million oceans.

Since Ping An Bank's original capital of 100 million yuan was already spent on preparing for the bank's founding and constructing the bank building, its current assets are still around 100 million yuan. However, with the backing of Chen Guangliang, a "tycoon" and "industrialist," Ping An Bank has naturally enjoyed smooth development. Its deposits currently exceed 1200 million yuan, it has invested 400 million yuan in government bonds, and has issued nearly 300 million yuan in loans.

Among the deposits here, about 500 million are from friends in the business community, and about 200 million are deposits of Chen Guangliang personally and related companies. The actual deposits are actually only 500 million.

But even if it is 500 million, it is still quite high. Liu Hongsheng's Huaxia Enterprise Bank now has only 300 million in deposits, and this is because of the reputation of Huaxia Enterprise Building.

It is conceivable that the subsequent commissioning of the Ping An Bank Building will also bring millions of deposits to Ping An Bank, and the deposits may exceed 1500 million this year.

Ping An Bank, which was established only a year ago, has already firmly established itself as a leader among medium-sized banks.

"Everyone please"

"please"

After the ribbon-cutting ceremony, Chen Guangliang invited friends from the business community to visit the first floor of the building. Those who came today included big savers Guo Linshuang, Wang Yunwu, Xie Hengchuang, Fang Jiaobo, Yan Zhiduo and others.

Although he and Guo Linshuang had briefly conflicted before, this time, Yong'an Cotton Mill avoided a loss of over two million yuan, and Guo Linshuang had taken the initiative to become a major depositor at Ping An Bank, depositing over three hundred thousand yuan. In fact, Yong'an Company had its own bank, and he was doing this simply to express his gratitude to Chen Guangliang, and the deposit was not given away for free.

Entering the lobby, everyone was amazed to see bank staff using state-of-the-art Burroughs bookkeeping machines for bookkeeping and registration. Ping An Bank also insisted on its employees wearing suits, rather than the traditional long gowns (as was the uniform worn by employees at banks like the Shanghai Commercial and Savings Bank).

What is even more surprising is that there are female staff in the lobby, and they are also wearing women's suits, which makes people secretly amazed.

There is nothing wrong with complete Westernization. If you know that HSBC has more than 9 million oceans in deposits, you will understand the mentality of Chinese people in this era.

Afterwards, Chen Guangliang took everyone to visit the unused vault. The steel door weighing more than three tons was like the best door god protecting the safety of this place. Then there were more than 1300 top-quality safes inside.

This is also a guarantee of credibility.

Finally, there is the administrative office on the second floor, which is also full of talented people. This year, Zhang Yuanji’s son, who holds a master’s degree from the American University of Economics, was brought into the project department (loan department) and is being cultivated as a key talent.

"Mr. Chen's work is indeed developing rapidly, which makes us who have been working in the business world for decades feel ashamed!" Guo Linshuang said sincerely at this time.

Now everyone knows that Ping An Bank has become a leader among medium-sized banks.

Chen Guangliang said modestly: "Ping An Bank's situation is entirely due to the support of all of you friends. Otherwise, we wouldn't be where we are today."

Guo Lin smiled and said, "It's Mr. Chen's reputation that makes us feel safe depositing money with him. Don't you agree?"

"Yes, this is Mr. Chen's reputation in the Shanghai Stock Exchange!"

Someone gave a thumbs-up in praise.

After today's inspection, many people are relieved that Chen Guangliang is a boss who knows how to run a bank, not a boss who regards the bank as his own private bank.

After everyone left, Chen Guangliang also came to the conference room on the second floor to prepare for a meeting with his subordinates.

Ping An Bank only used three floors (including the underground vault), and the top five floors (3+2 floors, the top two floors have a much smaller building area) were used by Chen Guangliang's other companies.

Chen Guangliang moved companies such as Changjiang Real Estate, Global Shipping, Vitasoy, and Changjiang Taxi to the Ping An Bank Building.

As for the vacant floors in the Oriental Press Building, they can be used as dormitories, printing plants, etc. for the employees of the Oriental Press. In short, the newspaper is not short of money and should increase the benefits for its employees.

As a result, the companies that moved into the Ping An Bank Building were all related companies of Chen Guangliang, so it was not rented out to others.

In the conference room.

Chen Guangliang said calmly, "The opening of the Ping An Bank Building is our first small step forward. Next, we must ensure the success of every aspect of the bank. Remember, banking may seem glamorous, but bank runs only happen within a year. HSBC has thrived so well, perhaps because, in addition to strong government support, its reputation is also a major advantage."

Everyone nodded as they listened.

HSBC was definitely founded by opium traffickers, but their credibility is truly beyond reproach. Chen Guangliang only knows one thing. When Hong Kong fell in the previous life, HSBC was forced by Japan to issue a currency of 2 million Hong Kong dollars. At that time, many people thought that HSBC would not recognize this currency after the war, so some people who knew the inside story took the opportunity to buy it. In the end, HSBC still recognized the 2 million Hong Kong dollars.

It seems like a disadvantage, but in fact you gain credibility.

For Chinese banks, customers' biggest distrust lies in the government behind them, followed by the banks themselves. Therefore, even the Shanghai Commercial and Savings Bank almost suffered a bank run and bankruptcy last year.

Although Ping An Bank has invested 400 million in government bonds, it is actually backed by Chen Guangliang's personal strength, so it is not considered risky.

Xia Gaoxiang then said, "For stable development, I believe that loans should not exceed one-third. In other words, based on the current loan-to-deposit ratio, loans cannot exceed 400 million yuan. We recently issued a number of loans to support factory resumptions, so we should be more cautious in selecting loan recipients going forward."

One third, or 33% of the loan-to-deposit ratio.

If it were a normal bank, this amount of loan would not even be enough to cover the interest and salary expenses, let alone make a profit.

But it is obvious that Ping An Bank still has 400 million in government bonds, which is equivalent to a loan-to-deposit ratio of about 67%.

Ye Ximing suggested, "Banks now have diversified investments, and they hold a significant portion of real estate. Should we consider this issue?"

Government bonds, loans, currency exchange, etc. are Ping An Bank's current businesses, and it has not yet entered the real estate sector.

"Let's not consider real estate for now. This wave of decline may not be a bargain hunting opportunity. Besides, real estate should not be a major investment channel for banks."

"Ok"

What Chen Guangliang was worried about was the outflow of silver from 1934 to 1935, which would cause the decline of China's economy. The real estate in Shanghai would also plummet, and the concessions would be greatly affected.

He finally continued, "Invest another million in government bonds. Since May, the price of these bonds has remained strong, and there is a very high possibility that they will rise by the end of this year or next year."

The loan-to-deposit ratio of 67% is obviously too low. After all, with his 508 million silver as collateral, he should be able to increase the public debt to 500 million.

This time, no one objected, but instead seemed very confident.

As a result, Ping An Bank already holds 500 million in government bonds and is preparing to increase the loan amount to 400 million, for a total investment of 900 million.

Almost the same configuration!
In fact, government bonds also generate interest during the investment period, and the same is true for loans.

(End of this chapter)