Chapter 1035: Establishing the Banks

The next day, when Chen Xi attended the alliance meeting again, Zhen Yan was the one greeting him at the door on behalf of the Zhen family. It was clear that the Zhen family had prepared to rise above the competition, no longer caring about whether the successor was from the legitimate line or not. At least in terms of bloodline, Zhen Yan was the closest to Zhen Yi.

"Greetings, Lord Chen!" Zhen Yan bowed politely, neither humble nor overbearing, and his demeanor was composed, as if the Zhen family had long anticipated such a day.

"Congratulations, Bo Yao," Chen Xi said with a smile, cupping his hands in salute. Zhen Yan was slightly older than him, and if he were to become the head of the family, he would inherit the title of marquis and the official position of two thousand shi that the Zhen family had held temporarily.

"Lord Chen is joking," Zhen Yan responded with a slight shake of his head, though his expression showed no concern. The slight droop in his eyelids indicated that he was at peace with the situation.

"Do your best. As long as you proceed steadily and don't touch any taboos, the Zhen family will rise to another peak under your leadership. Don't worry about short-term gains and losses; time will prove your achievements," Chen Xi said with a smile.

To be honest, even without Liu Bei and Chen Xi, the Zhen family would still be one of the wealthiest and most powerful families in the empire, and certainly among the top five merchants in the land. Not to mention, now the Zhen family had an unshakable support behind them.

"Lord Chen is too kind. I am merely an unremarkable figure with no great ambitions. My goal is simply to maintain the current foundation and allow future generations to strengthen the Zhen family," Zhen Yan replied with a smile.

Chen Xi glanced at Zhen Yan. Although the Zhen family had its flaws, their foresight was undeniable. Zhen Yan was not suited for great endeavors, as he lacked boldness, but his self-awareness was exceptional.

And for the Zhen family at this stage, nothing was more important than having a leader with self-awareness. After all, the Zhen family was no longer in the pioneering stage—they just needed to preserve their legacy.

"I believe I am the last to arrive," Chen Xi said, shifting the conversation away from the Zhen family as he slowly made his way toward the inner hall, with Zhen Yan following closely behind.

Before even entering the hall, Chen Xi noticed Zhen Mi sitting in the main seat with her eyes closed, seemingly resting. He said nothing, having developed a thick skin over time. At least among the heads of these noble families, none could see through his true thoughts.

Zhen Yan followed Chen Xi into the hall and took the second seat on the left. He would have liked to sit in the first seat, but Yuan Shu refused to move, so as the host, he had no choice but to settle for the second position.

When Chen Xi entered, Zhen Mi briefly stood to greet him, then returned to her seat without any further action. After all, she no longer needed to represent the Zhen family.

"Regarding yesterday’s discussions, we won’t deliberate on them today. Major decisions require time to consider, so today we will address a few specific matters. First, we plan to mint new coins. This issue doesn't directly concern those present, as we will be minting the traditional five-zhu coins," Chen Xi said calmly after taking his seat, informing everyone as a matter of protocol.

The room filled with murmurs. If the minting of five-zhu coins was legitimate, there was no need for prior notification. In fact, in the Han dynasty, minting coins of the proper weight was not only permitted but encouraged, given the shortage of quality currency in the empire.

Chen Xi paid little attention to the murmurs, as the real focus was the second matter.

"The second matter concerns the establishment of banking networks. By now, I believe everyone here understands the convenience of banks. Large-scale transactions, whether conducted through direct payment or barter, pose a significant security risk. Not to mention the challenges of transportation," Chen Xi said, his expression cold.

"In regions like Qing, Xu, Yu, and Ji provinces, we have resolved this issue ourselves. However, when trading with your territories, transactions cannot proceed because there are no banks for withdrawals on your side," Chen Xi continued, his face showing displeasure.

This had been a long-standing issue. The Wu family, for example, primarily conducted business in Yizhou and Liangzhou, making it difficult to transport money back after settling accounts. Without banks, conducting large-scale transactions was highly inconvenient.

"Lord Chen’s point is valid, but it’s not that we’re unwilling to set up banks. Rather, even for families as wealthy as ours, building a complete banking system is beyond our capacity," Wu Yuan said softly. For the Wu family, the most important matter at this alliance was establishing banking networks.

"More precisely, it’s not that we can’t build them, but that we can’t guarantee we will have enough liquidity to meet large withdrawal demands," Wu Yuan continued, clearly having considered the matter. "Additionally, I am curious, Lord Chen—given the vast sums you’ve already spent on other projects, how do you still have the funds to create a comprehensive banking system?"

"You don’t need to know how I managed it," Chen Xi replied with a smile. "All you need to understand is that a million coins in my hands are more effective than a billion in your dowry."

Money only generates economic value when it flows. The more industries a million coins touch as they circulate, the greater the value they generate. In essence, currency is merely a tool to keep industries connected and active. Real value comes from the industries themselves and the people who contribute to them. The currency itself, especially credit-based money, is just paper.

Of course, physical currency like the five-zhu coins isn’t quite as abstract, but the principle is the same. The money flows through the hands of various people, revitalizing industries, and eventually returns to Chen Xi’s hands. In essence, it’s just a means to facilitate the process, allowing Chen Xi to collect value over time.

"Frankly, I would love to teach others how this works, but it seems that neither my apprentice nor my close friend has much talent in this area," Chen Xi remarked, steering the conversation in a different direction.

Lu Xun, Chen Xi’s apprentice, was proficient in both governance and military affairs but lacked a natural affinity for economics. As for Zhuge Liang, while a polymath and generalist, his understanding of money was somewhat flawed, making him unsuited for this field. Zhuge Liang excelled more in overall strategy.

Historically speaking, Liu Ba would have been the ideal candidate to learn these economic principles from Chen Xi. Liu Ba had the best understanding of economics and finance in the Three Kingdoms period, approaching it from within the commercial system rather than using policies to forcibly regulate the economy, as Zhuge Liang or Xun Yu did.

Unfortunately, Liu Ba was also the most anti-Liu Bei talent in history, despite greatly admiring Cao Cao. Though he repeatedly evaded Liu Bei, in the end, he couldn’t escape being cornered by Zhuge Liang, who eventually forced him to solve Liu Bei’s greatest economic challenges.

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