Republic of China: Ace Pilot

Chapter 152, Section 151: Investing for the War of Resistance – The Las Vegas Plan

Fang Wen considered the matter of money carefully.

In this chaotic world, you absolutely cannot do without money.

However, we must also consider the impending chaos, currency devaluation, and investment issues.

In peacetime, Fang Wen could invest this money in supermarkets. Each supermarket he opens would generate cash flow, which, combined with the three-month payment period for cigarette sales, would allow him to quickly establish a nationwide chain.

But that won't work. China is in a mess right now. As soon as the money is invested, someone will try to get a share.

As the saying goes, it's easier to see the King of Hell than to deal with his underlings—that's the point.

However, it would be a huge waste to leave this money sitting in the warehouse for three months.

Is depositing money in a bank the only option to earn that meager interest?

Fang Wen certainly didn't want to.

He was considering whether there were other options.

Why not invest the money abroad and then use the profits from abroad to support the domestic economy?

But a few years later, World War II was about to break out, so where would be safe?
Fang Wen looked to the right of the map, at the United States.

But what are some good investments to make in the US these days?
Fang Wen knew nothing about the history of the United States in the 1930s, but he had access to information.

For example, Neil, and the Americans in Shanghai.

Neil has already gone to the United States, so we can't ask him for the time being.

Fang Wen thought of another person, the gangster underling that Al Capone had sent to Shanghai.

These people think it's easy to get rich in Shanghai, but they certainly didn't expect there to be so many gangs in Shanghai.

I wonder how he is doing now, after all the setbacks he's faced.

Fang Wen picked up the phone and called Zhao Jiu.

"Zhao Jiu, how's that American arms dealer you brought with you last time doing?"

Fugui Gambling House in Zhabei, Shanghai.

Zhao Jiu picked up the phone and replied, "General Manager, I almost forgot about that person if you hadn't mentioned it. I'll have someone inquire about it and call you back later."

After hanging up the phone, Zhao Jiu sent one of his underlings out to inquire, and he called back after receiving the information.

"General Manager, we've figured it out. He thought Shanghai was a place he could come and go as he pleased. He tried to sell the weapons without even paying his respects at the docks, but he got shot and his warehouse was robbed."

"Is he still alive?" Fang Wen asked.

"He's still alive, staying at Guangci Hospital in the French Concession. I heard he was shot in the leg, but he survived."

"If he can walk, bring him over. I have something to talk to him about."

"The general manager wants to see him. He has to come, no matter if he can leave or not. A phoenix without feathers is no better than a chicken. Let him go to your place today."

Zhao Jiu took on the job.

Fang Wen hung up the phone.

He's thinking about something else now.

These silver dollars had purchasing power domestically, but were worthless abroad.

How do I convert them to US dollars and British pounds?
This is also a big problem, as HSBC is unwilling to exchange silver dollars for US dollars, and other foreign banks are the same.

Then we can only see if there are any connections with domestic banks.

He dialed the office phone number of his high school classmate, Min Bangren.

The call connected, and Min Bangren's voice came through.

"This is Shanghai Commercial Savings Bank, and I am Min Bangren."

"I am Fang Wen."

"Hey old classmate, you finally thought to call me."

"I've been a bit busy lately. How about I treat you to a meal today? Do you have time?"

"Of course I have time. I know you don't go into the city, so I'll come to your place. I'll be right there."

Forty minutes after the phone call ended, Min Bangren drove over.

In Shanghai, being able to own a car is considered a sign of good living conditions.

It seems he's doing quite well at the Shanghai Commercial Savings Bank.

Fang Wen didn't take him out to eat, but instead had the cook prepare several Cantonese dishes at home.

Once all the dishes were served, Fang Wen poured wine for Min Bangren, ending the small talk and getting straight to the point.

"Min Bangren, I have a small problem, I wonder if you can solve it?"

"What little trouble?" Min Bangren asked casually, picking up a piece of food with his chopsticks.

"Is there any way to exchange silver dollars for US dollars? Or any other currency would be fine too."

Yes, how much?

Fang Wen thought about it and realized that with five major sales cities every day, plus the surrounding areas, a delivery truck could earn 2000 to 3000 yuan a day by making all the trips.

The five cities together had a total income of more than 10,000 silver dollars.

He replied, "I should have a few thousand silver dollars every day. It's not a lot, but I can exchange them every day."

Min Bangren looked at Fang Wen in surprise: "Exchanging several thousand silver dollars a day isn't much? You're my god of wealth!"

"How do you have a way to change it?" Fang Wen was also surprised.

“That’s right. Cats have their ways, and mice have theirs. How can you work in a bank without these skills?” Min Bangren replied smugly. The best thing about classmate reunions is being able to show off your achievements.

He told Fang Wen that there were two main ways to obtain a large amount of foreign exchange.

One type involved foreign exchange transactions between banks controlled by the Nationalist government and foreign banks.

However, the people do not benefit from that method, and the foreign exchange earned does not flow to the people.

Small banks like the Shanghai Commercial Savings Bank shouldn't expect to benefit from this.

Then there's only one other way: money changers or private money changers.

In the private sector, money shops and private exchange brokers also offered exchange services between silver dollars and foreign currencies. The exchange rates offered through these channels may fluctuate depending on market supply and demand, and therefore may differ from the official exchange rates.

Besides the fact that the exchange rate is higher than the official rate and the exchange makes a profit from the difference, the reputation and reliability of the exchange broker are also very important. If you encounter a scammer, you can easily suffer fraudulent losses.

Therefore, a trustworthy foreign exchange broker became an important resource for Shanghai Commercial & Savings Bank to attract customers.

After listening to Min Bangren's explanation, Fang Wen nodded.

Min Bangren's route can be used for exchanging silver dollars, but we cannot rely on him entirely.

My father-in-law in Guangzhou has the same currency exchange system, so I can ask him to help me exchange some money.

In this way, the silver dollars can be exchanged for US dollars.

This would also help prevent the collapse of the Republic of China's monetary system a few years later.

And you can use the dollars you get to invest in the US – it's killing two birds with one stone.

No, we can also purchase machinery and military supplies from the United States, achieving multiple benefits in one fell swoop.

Afterwards, Fang Wen and Min Bangren finalized the exchange of silver dollars and Fang Wen saw him out.

No sooner had Min Bangren left than Zhao Jiu's men brought the American gangster arms dealer over.

Zhao Jiu's underling helped the man down from the shuttle bus. Upon seeing Fang Wen, who was seeing the person off, he respectfully said, "General Manager, the person has been brought."

Fang Wen sized up the gangster arms dealer.

After a period of absence, he had become listless and had long lost the high spirits he had when he first came to Shanghai.

Because he had been shot in the thigh and was using crutches, he looked quite pitiful. Fang Wen nodded: "Go back now, and give my regards to Zhao Jiu."

"Yes, General Manager." Zhao Jiu's Green Gang underlings got on the shuttle bus and left with a sense of honor.

Fang Wen spoke to the gangster arms dealer in English.

"I've heard about your situation. You've lost everything. Should I send you back?"

The man showed a hint of gratitude, but then forced himself to say something harsh: "When I get back, I'll tell Al Capone that he'll definitely send men to take revenge."

Fang Wen chuckled inwardly. This kind of thinking applies to both the East and the West; gangsters are always associated with revenge.

He had no interest in getting involved in the feud between the Shanghai and Chicago gangs, and went straight to the point.

"I can take you back, but there are some things I'd like to discuss with you about the situation in the United States."

The person quickly nodded in agreement.

Afterwards, he leaned on his cane and sat down with Fang Wen at a nearby tavern.

Fang Wen asked, "What businesses are profitable in the US right now?"

The other party has a very insightful perspective on this issue.

"During the Great Depression, our gang would get involved in any business that could make money. For example, tobacco. Many workers couldn't afford branded cigarettes, so we could supply them with cigarettes. It's very simple; a cigarette rolling machine can handle the job. And whiskey. Since Prohibition was enacted in 1920, bootlegging has been our gang's biggest source of business."

Fang Wen showed an interested expression and interrupted, "Can I invest in your wine business? For example, to expand operations?"

The gangster arms dealer shook his head: "It's a pity that the Prohibition was repealed in February this year. If it weren't for the absence of Prohibition, I wouldn't have been sent to the Far East to look for new business."

So that's how it is. Fang Wen finally understood why the Chicago gang had come to Shanghai.

Selling bootlegging is the biggest source of income for gangs. With the lifting of the prohibition, everyone can open a brewery and brew alcohol. No matter how ruthless the gangs are, they can't stop everyone.

He replied, "Fine, everyone's having a tough time, so what kind of business do you guys have that makes money?"

"We are preparing to enter the gambling industry, as well as film production and the beauty and hairdressing industry."

A gangster arms dealer revealed the recent transformation path of American gangs.

Aside from the beauty and hairdressing industry, Fang Wen felt that the other party had chosen the right industry, as the legal gambling industry and the Hollywood film industry would definitely be very profitable in the future.

He poured wine into the other person's glass; it was a very mild Shaoxing rice wine, but with a strong aftereffect.

After drinking a few cups together, and waiting for the other person to feel the effects of the alcohol, Fang Wen asked.

Where are you planning to open a casino?

“Nevada. Last year, Nevada legalized gambling, and the construction of the Hoover Dam brought in a large number of workers. We are optimistic about the emerging city of Las Vegas and are preparing to build a casino there.”

Las Vegas?
Fang Wen certainly knew this place.

The future world's largest gambling city.

But what is Las Vegas like now?

Fang Wen continued to ask, "How many casinos are there in Las Vegas?"

"It's not a big place, but there are a lot of dam workers. All those workers do is drink and gamble. The casino can satisfy them and take every penny out of their pockets," the gangster arms dealer said smugly while drunk.

He then lay down on the seat and fell fast asleep.

Fang Wen summarized the information he had obtained from this person.

The United States is currently experiencing a severe economic depression, and many industries are struggling.

This situation, however, created an environment conducive to the growth of gangs, and coupled with Prohibition, allowed them to make a fortune.

But now that Prohibition is over, gangs are preparing to transform.

Casinos are just one option for them; these days, a gambling city built in the desert seems to have no future other than serving the workers who built the Hoover Dam.

But in reality, this desert gambling city will become America's largest money pit.

Gambling has only been legal in Nevada for two years; land in Las Vegas must be very cheap.

Fang Wen couldn't help but smile as he looked at the gangster arms dealer who was fast asleep in front of him.

He remembered the V-1710 engine he had asked Neil to get, but a month had passed and there was still no news.

It seems we won't be able to get Neil.

Since that's the case, I have to go to the United States, not only for the V-1710 engine, but also for the land in Las Vegas, and even to build a luxurious casino there to raise funds for the war effort.

Also, after finishing up in the US, I'll go to Europe to finalize the purchase of D.332 aircraft.

No, the order is reversed.

Didn't the manufacturer of the d.332 want to conduct a long-haul flight themselves to prove the performance of their aircraft?
It would be more appropriate for me to go to Europe first and then drive the D.332 to the United States.

After making the plan, Fang Wen began to implement it.

The first thing I did was naturally to tell my wife.

Upon hearing that her husband was going abroad again, Kuang Mingzhu did not stop him. Instead, she took the initiative to take on the work of company operations and management.

Fang Wen was very pleased with his wife's attitude and immediately began making arrangements.

Communication with the French manufacturer of d.332, Devatina, went smoothly.

The main advantage is that Fang Wen, the test pilot, was able to purchase the aircraft directly after completing the test flight.

This is very tempting for a research-oriented aircraft manufacturer.

Not to mention the allure of Fang Wen's offer to purchase more D.332 series aircraft in the future.

After receiving a flight invitation from the French company Devatina, Fang Wen prepared to travel to Europe.

But this time when he goes to Europe, he will bring one more person with him.

This person was not on a trip to Europe, but was crucial to the opening of casinos in the United States.

If he was willing, Fang Wen felt that the plan to go to the United States was a sure thing.

He is Zhao Jiu.

On June 5th, Zhao Jiu got up early as usual.

After glancing at his new lover on the bed, Zhao Jiu got up without a second thought.

After practicing a set of boxing moves, he went out for a stroll and had breakfast before returning to the Fugui Casino.

The gambling den is closed during the day; he mainly deals with matters on the street.

Although the street brawls among his men didn't bring him much profit, they were a matter of face for him as the head of the Green Gang.

But today, a very important guest arrived outside the casino, forcing him to stop what he was doing.

He strode out of the gambling den, got into a black car, closed the door, and asked with concern, "Why are you here? It's Zhabei again. There are a lot of Japanese people here."

"It seems they've forgotten about me, and they haven't sent anyone from the airport. Don't worry, I've disguised myself perfectly, and I'm driving a very special car. The Japanese can't catch me," Fang Wen replied, very confident in the bulletproof armored car that he and Howard had meticulously modified.

This is a deadly weapon modified with an aviation piston engine and equipped with two rotary aircraft machine guns at the front and rear.

Fang Wen was confident that if he encountered Japanese agents again, he would teach them a bloody lesson.

But his main purpose in coming here was for Zhao Jiu.

So the car slowly started moving, and he talked with Zhao Jiu inside the car.

“Zhao Jiu, I can see that you are an ambitious person. Shanghai is not suitable for you.”

"What do you mean, General Manager? I don't understand."

"The Green Gang has strict rules. You can work your whole life here and still not become the leader of the Green Gang. Have you ever thought about going somewhere else?"

"Where?"

“Go to a new city, and do the casino business you like,” Fang Wen replied.

(End of this chapter)