The World Online

Chapter 888 – Birth of the Insurance Industry

Within the Imperial Reading Room, Pei Mo left first, leaving Meng Zhida.

Ouyang Shuo started off with the one million gold loan to Morocco Province, “Special things must be handled specially. The processes can be made simpler to try and hand the cash over as that side badly needs it.”

Meng Zhida nodded, “Do not worry king. I’ll personally oversee the matter to try to get the loan approved within a week.”

Ouyang Shuo smiled in satisfaction; he loved the way Meng Zhida did things. Although Pei Mo and the other historical civil servants were good to use, they were still influenced by ancient official methods and were not so straightforward and quick in doing matters.

Unlike players like Meng Zhida, whose professions in real life focused on efficiency.

However, Ouyang Shuo did not ask to meet Meng Zhida for this. Rather, he had an idea he wanted to discuss with Meng Zhida.

This idea was one that he had thought of when he attacked Morocco, and it became clearer after the Friendship City incident.

Ouyang Shuo said, “You know of the Rabat City and Friendship City compensation to merchants?”

“Yes.”

“What are your thoughts about it?”

Meng Zhida froze; this matter was not within the scope of his job. However, since the king asked, he had to answer. He thought about it and said simply, “It’s a loss in the short term but a gain in the long term.”

Meng Zhida analyzed it through an investment point of view.

Ouyang Shuo unveiled his intentions, “I was thinking that if the dynasty pays every time the merchants’ interests are affected, they would rely too heavily on us and become more fearless in doing things.”

A persons’ heart was the most complicated, especially merchants.

In reality, there were so many cases of people cheating government subsidies, much less in the game.

That was the hard part about governing a country. The dynasty gave out some subsidies with good intentions. However, in the long term, the intentions might be misused.

Hence, when they were setting and making policies, they had to consider all areas and not randomly push out policies. Ouyang Shuo did not want such a compensation method to become a habit.

Ouyang Shyo was thinking about making a better solution.

Meng Zhida agreed, “The king’s worries make sense.”

“Since that’s the case, can the Four Seas Bank use this as a chance to develop the Insurance Industry? Start from ocean insurance.”

The concept of insurance was not something that only existed in modern society.

2500 BC, Babylon empire ordered the clergy, village chiefs, and the like to collect tax as funds in case of emergency. The Egyptians and masons started up a burial organization to use member fees to pay for burial fees. All these events were insurance taking shape in ancient times, slowly forming into the insurance system.

Along with trade developments, in 1792 BC, during the reign of the 6th king of Babylon, trade was prosperous. To help the merchants compensate their losses, there was a system where they shared losses.

This situation was really close to the Great Xia Dynasty voyage merchant compensation system.

In 916 BC, on the Mediterranean Rhode Island, to protect ocean trading, the king set up a merchant law that said that if a certain merchant had losses, including the owner of the ship, owners of all the merchant products on the ship will have to share the loss.

The Great Xia Dynasty had the advantage of controlling the trade route, the prosperity of voyage trading, and the huge funds of Four Seas Bank, setting the foundations for starting the Ocean Insurance Industry.

When Meng Zhida heard that, his eyes lit up, and he said excitedly, “The king’s idea is great. Along with the king establishing the country, the Four Seas Bank gold has increased, and the funds are getting more and more. On the contrary, the number of people borrowing has decreased with territories merging together and being occupied.”

“The Four Seas Bank is facing an awkward situation where the money cannot be spent. To start the Insurance Industry will help to resolve the current situation, and it will provide us with another money making avenue.”

Actually, Meng Zhida had missed out on one point. If the industry was successfully started, it meant that the Great Xia Dynasty was closer to modernization, and it was a good improvement to voyage trading.

The protection of insurance would increase the motivation and eagerness of merchants to participate in voyage trading.

On this point, Europe, which was where insurance started, did not have such great conditions. The European countries had limited players, and the banks could not absorb as much savings as the Four Seas Bank.

In terms of voyage trading, they had fallen far behind the Great Xia Dynasty.

Looking out at the entire world, apart from the American Continent Panama River, the Great Xia Dynasty had completed a worldwide crucial trade route. The Europeans and Americans could only follow behind.

Ouyang Shuo did not expect Meng Zhida to be so excited, smiling, “I only have a suggestion. As for the rationality and feasibility, it would depend on you professionals.”

Meng Zhida bowed and said emotionally, “Do not worry my king. We will assess it in the shortest amount of time and come up with a suitable plan.”

Ouyang Shuo nodded, “That’s great; I’ll wait for your good news.”

In this room, after the entertainment industry, another huge glow was being released with Ouyang Shuo’s lead, shocking the entire world. …… After Meng Zhida left, Ouyang Shuo asked Tsing Yi, “How’s the discussions with Stone City?” The matter of Ouyang Shuo going to Friendship City was too sudden, and 10 days had passed since the discussion started.

Before leaving, Ouyang Shuo had instructed Tsing Yi and the Secret Documents Pavilion to follow up on the matter.

Tsing Yi raised her head and passed over a document from her table, “It has basically been settled two days ago. Wufu has no objections and is just waiting for you.”

Ouyang Shuo took the document and smiled, “The efficiency is pretty high.”

Tsing Yi explained, “Wufu is anxious, so the negotiations went smoother than expected.” Ouyang Shuo flipped the document while asking, “We did not rip him off, right?” He did not want to make Wufu unhappy just for small benefits.

Tsing Yi smiled, “You instructed before you left, so how would we dare?”

“That’s great.”

Looking at the document, the terms were just as Ouyang Shuo had wanted.

For Wufu to become a vassal state of the Great Xia Dynasty, he needed to do a few things.

First, become an official.

Wufu accepted the appointment, becoming the Governor of Fengtian Prefecture. Within his region, under the framework of the Great Xia Dynasty law structure, he would enjoy a high degree of freedom.

Secondly, hand over diplomatic powers.

Stone City and the Great Xia Dynasty’s diplomatic policies and views were the same at all times. When needed, the Honglu Temple would step in.

Thirdly, hand over payments.

Stone City would hand over 300 thousand gold per month, and they could use coal to pay too.

The Great Xia Dynasty would also agree to the few points below.

First, the giving of titles.

The Great Xia Dynasty must give Wufu the title of 3rd class Marquis and give him Fengtian Prefecture as his land.

Secondly, military protection.

Apart from helping him build the Binhai Squadron, the Great Xia Dynasty needed to house a War Fighting Legion in Stone City. Of course, the daily expenses would be paid by Stone City.

Thirdly, tax free.

Any merchant items entering the border would be exempt from border tax. Of course, the Great Xia Dynasty items entering Stone City would be tax free too.

Fourthly, other help.

The Great Xia Dynasty needed to develop 100 officials, 50 general, 100 doctors, 50 shipbuilders, and 100 ironsmiths for Stone City a year.

Apart from that, the dynasty would invest to build steelmaking factories, military works factories, and cannon making factories to help the industrialization of Stone City.

The above were only the big terms, and the agreement contained many other small details.

Overall, this was a win-win situation. Stone City sacrificed some honor and autonomy in exchange for support and protection.

Looking at the document, Ouyang Shuo felt complicated. He thought back to how bustling it was when the Shanhai Alliance was formed. A few years had passed, and the allies disappeared one by one.

The one that truly remained was Fallen Phoenix City.

Times had changed. The Shanhai City that needed allies to go against Yanhuang Alliance had grown into a colossal giant in China. They had become something the Yanhuang Alliance needed to fear.

Ouyang Shuo had also turned his eyes to the rest of the world. His opponent was not Yanhuang Alliance but Silver Hand.

Ouyang Shuo’s personal thoughts were something that outsiders could no longer see through. From a passionate young man, he became a lonely king sitting on his ice cold throne. He did not have any close friends he could talk to anymore.

The winners survive and the losers were eliminated. The wilderness was just so cruel.

“My king?” Tsing Yi broke Ouyang Shuo out of his daze.

Ouyang Shuo jolted, instantly waking up. He placed down the document and said calmly, “I’ve seen it, let’s follow this. When the time comes, hold a signing ceremony and invite the media over.”

Since it was done, Ouyang Shuo was not going to hide it.

“Great!”

Tsing Yi nodded in agreement; this was not a tough task to complete.