Some rich gentry with huge sums of money rushed to invest when they saw that the interest rate of the bank was stable and thick. The business of private banks has also expanded with the prosperity of business. In addition to exchanging currencies, deposits and loans were increased and bank notes were developed. At that time, there were many money houses in Heather and Beishi, especially in Heather.
In order to solve the conversion of domestic merchants' silver coins and the valuation of foreign merchants' silver coins, Shanghai Qianzhuang once adopted a virtual accounting unit called Guiyuan. This invention greatly facilitates the business bookkeeping of businessmen all over the world. The types of banks in Shanghai are very complicated. Generally speaking, there are three types: remittance villages, pick-and-hit villages and zero-exchange villages.
Huihuazhuang is a member of the Money Industry Association, the most powerful bank in Shanghai, with more capital and wider business scope. The banknotes issued are very credible and widely circulated. Such banks join the remittance association, and all bills can be offset and remitted by public bills in the remittance association. The so-called Shanghai money house generally refers to the remittance village.
Banks whose business is similar to remittance and transfer banks but with less capital are not eligible to join remittance and transfer associations, which are called selection and operation banks. The collection and settlement of bills payable in the pick-up and release village need to be entrusted to the remittance village. Retail bank, also known as retail bank, mainly deals in sporadic exchange, which is the smallest of all kinds of banks. Due to the different backgrounds of investors and managers, Shanghai banks have formed regional gangs. There are nine gangs in Shanghai, Shaoxing Gang, Ningbo Gang, Suzhou Gang, Songjiang Gang, Zhejiang Nanxun Gang and Zhenyang Gang. Among them, Ningbo Gang and Shaoxing Gang are the most powerful, referred to as Ningshao Gang.
According to the inscription on the mCCBAin hCCBAll of Zhejiang Shaoccba Yongxitang, in the early years of Qianlong, the merchants of money industry, carbon industry and bean industry in Shanghai jointly established Zhejiang Shaoccba, which was a large-scale bank. Most of the directors of Zhejiang Shaogong Office are bank bosses or famous money managers, and they are omnipotent leaders in the monetary field. This reflects the strong strength of Shaoxing businessmen in Shanghai.
In addition to the basic business of currency exchange, Ningshaobang Bank also made full use of the advantages of Shanghai International and Domestic Trade Center to creatively develop a commercial bill system with China characteristics, and integrated foreign financial capital and China trade market into a flexible and effective domestic and foreign trade exchange platform.
At the beginning of the five-port trade, foreign companies entered Shanghai to buy local products from China and sell foreign industrial products. The first big problem they encounter is the lack of commercial trust in suppliers and buyers in China. Buying China goods is afraid of not receiving the goods after payment, and selling foreign goods is afraid of not receiving the money after delivery.
Ningshao Qianzhuang seized this huge business opportunity and created "Zhuangpiao", which promoted the rapid expansion of domestic and foreign trade.
Zhuang Piao, invented by Ning Shaobang, is a draft cashed by China businessmen within 5 to 20 days after they apply to the bank for "trade-oriented". When buying foreign goods, they will pay with Zhuang tickets.
Foreign companies generally don't trust Chinese businessmen, but banks still recognize them, especially those with strength. The reason lies in the comprador system generally adopted by foreign firms.
Compradors are not only very familiar with the strength of local banks, but also must bear the responsibility in case of accidents. If the Chinese businessman can't pay the due payment, the bank is responsible for making an advance payment to the foreign firm, and then the bank goes to settle accounts with the Chinese businessman, or the bank directly pays the foreign firm and then collects money from the Chinese businessman.
In this way, the foreign firm's goods sell well, and the bank charges interest on the coupons issued by the bank, which expands the bank's profits and increases new business. Chinese businessmen have obtained short-term financing and expanded their business volume.
This is a financial innovation with the best of both worlds. Moreover, the holders of these coupons can get discounts at many banks or foreign banks and get cash at any time.