"Is that so?"
Hundreds of officials couldn't help but feel regretful. Many officials felt very regretful. Even Mo Jiazi didn't let go of those poor people who borrowed money. However, those who had ulterior motives felt regretful. If Mo Jiazi could exempt those who couldn't pay off the loan, they would have a chance to destroy the bank of Village Mo again.
"If someone couldn't pay off the loan with an annual interest of 6%, or even lost the principal, how could the Village of Mo Jiazi force him to pay off the loan? Would they force him to sell his son or daughter, pawn his wife, and ruin his family until he paid off the loan?" Yu Zhining sneered.
His intentions were extremely malicious. Everyone knew that once the Mohist family demanded payment, it would inevitably be accompanied by violence. If the Mohist family's bank used violence to demand payment, it would certainly be an enormous scandal, destroying their reputation. To the side, Li Shimin's face immediately sank. Modun had married Princess Changle. This would implicate the reputation of the imperial family. If Modun were to repeatedly leak out rumors that he had caused the destruction of the family, then even Li Shimin would lose face.
Meton shook his head and said, "The School of Mo loves all living beings with impartiality. How could we do such a thing that goes against the School of Mo's philosophy?"
Li Shimin's face relaxed and said, "If the people couldn't pay off the loan, what would the Village of Mo Jiazi do?"
Meton looked around and said seriously, "I have already discussed this situation. First, when the people apply for the loan, the bank will check their ability to pay off the loan and its purpose. If it is a business that is bound to lose money, the School of Mo will naturally refuse the loan."
The officials nodded. The Village of Mo Jiazi was the most successful business in the world. If the Village of Mo Jiazi thought that the business was bound to lose money, they would naturally not waste the money.
"Second, the bank loans are not for exploiting the merchants, but to offset the interest of the deposit. The annual interest of 6% is the lowest loan interest in the world. If the merchants lose money, they can only blame it on their bad luck. It has nothing to do with the School of Mo."
Li Shimin couldn't help but nod. The interest rate of 6% per year was unimaginably low in this era. If they still made a loss like this, then they really couldn't blame anyone else.
"Thirdly, anyone who takes a loan in Village Mo must have a mortgage. If the loan is not repaid on time, the mortgaged properties and land will be auctioned off to repay the loan. In this way, even if the money from the auction is not enough to cover the principal and interest, the borrower will not have to bear too much debt."
Mortgage was the biggest difference between banks and private banks. If you wanted to get a loan, you had to have a mortgage, and the interest was extremely low. Although the money deposited by the bank did not need to be mortgaged, the interest rate was extremely high. In the end, if they could not repay the money, they would be forced to sell their land and houses, losing everything.
"What if the other party loses too much and can never repay the loan?" Suddenly, an old voice spoke.
All the officials looked and saw that it was Wei Zheng questioning Meton in person. Yu Zhining could not help but be overjoyed. Even Wei Zheng was questioning Mo Jiazi in person, Mo Jiazi would definitely be in trouble.
Meton looked into Wei Zheng's eyes confidently and said, "If he really can't repay the loan, then he doesn't have to repay it."
"Doesn't have to repay the loan?" All the officials could not help but be shocked. They did not expect Mo Jiazi to give such an answer.
"Really?" Wei Zheng could not help but ask.
Meton nodded solemnly and said, "Of course. If the borrower can't repay the loan, or can't repay the principal and interest, he can apply for bankruptcy."
"Bankruptcy?" Wei Zheng frowned and said.
Meton explained, "The bankruptcy system is a kind of protection for the Mo family's creditors. When a creditor cannot repay the principal and interest and applies for bankruptcy, the bank will only liquidate the creditor's existing assets. Even if it is not enough to repay the principal and interest, the bank will still forgive the creditor's outstanding debt. The bank will not touch a single cent of the creditor's family, and will even leave them with a certain amount of life insurance so that they will not be driven into a corner and can start a new life."
"Forgive the creditor's outstanding debt!"
"Not touch a single cent of the creditor's family!"
"Leave behind a certain amount of life insurance!"
When the officials heard Meton's promise, they could not help but be dumbfounded. No one expected Meton to be so generous. Compared to the Qian family's ruthless and compounding interest, the Mo family's bankruptcy system was simply a blessing.
Wei Zheng's eyes also lit up and said, "What if the Mo family does not accept bankruptcy?"
Meton smiled proudly and said, "The Mo family will let the school of Legalism handle the bankruptcy of the creditor. As long as the school of Legalism approves it, the Mo family will accept it unconditionally."
Only then did everyone realize that Mo Jiazi was not joking. Although the school of Legalism was currently living in the Mo family village, everyone knew that it would not listen to the Mo family's orders. Under the impartial review of the school of Legalism, it was probably the greatest protection for the bankrupt.
"The great Mo Jiazi indeed did not disappoint the Old Man. If you do as you say, the Old Man will be the first to support you." Wei Zheng smiled and was the first to express his support for Mo Jiazi.
"Ah! That's printed money! " Yu Zhining was shocked and could not help but look at Wei Zheng. Wei Zheng was extremely influential among the civil officials. If he supported Meton, there would probably be many civil officials who would turn against him.
"This old man has never heard of a Stamp Money with an annual interest rate of six percent, nor have I heard of a Stamp Money without bloodshed. The bank collects Stamp Money for the benefit of the common people and loans it to the merchants. The merchants are saved from danger and regained their vitality. No matter who starts such a Stamp Money, this old man will support it." Wei Zheng shook his white head and said firmly.
"Beloved Official Wei is right. I'm afraid bank loans can no longer be considered money." Li Shimin clapped his hands in praise.
"Your Majesty is wise!" Many officials agreed. With such low interest rates and the bankruptcy system's protection for the borrower, bank loans had already broken away from the common understanding of money.
"This Old Man also supports Merton. The world has been suffering for a long time. The emergence of bank loans is the blessing of the people." Dai Zhou said. Money from the Ziqian family would only lead to crazy plundering, causing the merchants to go bankrupt one after another. The bank loans from the Village of Mo helped the merchants to come back to life. The imperial court's business tax collection was also greatly beneficial. Thanks to the rise of the Mo family, the business tax had increased substantially in recent years. Even the imperial court could no longer ignore it.
"This Old Man also supports Merton!" Fang Xuanling also bowed.
"We also support Merton!"
Immediately, the officials in the imperial court expressed their support for Meton. Many officials were unwilling, but they knew that there was nothing they could do. After all, the reputation of the Ziqian family was too bad. Most of the officials in the imperial court cared about their reputation. How could they defend the Ziqian family too much? Moreover, Mo Jiazi was too well-prepared. The bankruptcy system was enough to wash away all the blame.
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