Dreaming back to 1949, the great powers were there to deceive us
Chapter 179 Developing Rural Enterprises
Hu Zhenhua didn't know how to face Wang Cuicui and An Lan, so he decisively ran away to Chongming.
He cannot participate in the war between women.
Soldier against soldier, against general!
An Lan was indeed beaten, but because it was Wang Cuicui who did it, even if Wang Yu, the old spy, knew about it, he could do nothing.
This is the benefit of the lady route!
As soon as Hu Zhenhua arrived at the Friendship Store, he saw two old acquaintances: the bankrupt businessman Qiu Zhen, and the peddler Xu Youcai!
For some reason, the two of them got together and were whispering about something.
Old Hu came closer to them, listened for a long time, and finally understood something.
Qiu Zhen is studying the localized production of certain commodities, so as to save the trouble of transportation.
Especially making sugar cubes, which requires no technical skills at all.
After a long time, Xu Youcai finally found Hu Zhenhua, came to him respectfully, and said,
"Sir, I lost 4 million yuan on the last transaction!"
Hu Zhenhua frowned and asked,
"How did you compensate me? Tell me in detail."
Xu Youcai rolled up his trouser legs and said,
"It rained heavily yesterday, and I couldn't avoid it, so I fell and a lot of things were washed away. Some of the sugar melted in the rain! Some of the chicken feathers I collected didn't dry out, so they got moldy and had to be thrown away."
Hu Zhenhua looked at his legs. The scratches were shocking, but the wounds had already been treated with medicine.
Hu Zhenhua sighed and said,
"It's my first time doing business, so I'm inevitably unprepared. Next time, I'll just bring a raincoat!"
Xu Youcai shook his head and said with emotion,
"I'm relatively lucky. I heard that a few peddlers had their carrying poles swindled out of them! To pay off their debts, they went back to the construction site!"
People of this era are still very simple and honest. If they owe a debt, they won’t run away.
Hu Zhenhua couldn't bear to criticize him, so he smiled and said,
"Uncle Xu, if you meet them, just tell them that the money you owe is not a big deal. I won't ask them for interest, and you can just pay it back slowly!"
"You are such a good person!"
Qiu Zhen stared at Hu Zhenhua and suddenly shouted,
"Are you Hu Zhenzhong?"
Old Hu nodded!
Qiu Zhen was silent for a moment, then asked,
"Your name is also Hu Zhenhua?"
Old Hu grinned and said,
"still me!"
Qiu Zhen jumped up and shouted,
"You are such a black-hearted and rotten-lung bastard, you have caused me so much trouble!"
Hu Zhenhua didn't argue with him, but just looked at him with a smile.
After a long time, Qiu Zhen waved his hands and said helplessly,
"Forget it, forget it. You don't steal or rob. Apart from being a bit evil, I can't find any other faults with you!"
Hu Zhenhua laughed heartily and said,
"I'm glad you think so! From what I heard from your conversation just now, it seems you have some ideas about exchanging chicken feathers for candy?"
When Qiu Zhen heard this, he quickly adjusted his mood and said with a smile,
"One penny can make a person die. Although the cargo is small, it connects thousands of households. This business has great potential!"
Hu Zhenhua didn't expect this person to be so knowledgeable, and immediately felt a sense of appreciation for his talent.
"Mr. Qiu, can you tell me about your plan?"
Qiu Zhen did not hide his shortcomings. After all, the business of exchanging chicken feathers for sugar was thought up by Hu Zhenhua.
Qiu Zhen sorted out his thoughts and said,
"I just talked to Uncle Xu and found that some of their items sell out quickly, while others sell out slowly. Because it's too far from Chongming, it's very difficult to restock."
"A few peddlers have agreed to take turns buying goods to save time. This is just a small-scale operation, after all. I think if we want to expand this business, we must organize the peddlers and set up a replenishment station!"
"Also, we should organize people on site to make the chicken feathers we receive into feather dusters and shuttlecocks to avoid transporting them back and forth."
Hu Zhenhua nodded.
Qiu Zhen’s idea was the wholesale market of later generations.
This method is good, but Lao Hu is worried that it will not adapt to the local environment. After all, the red faction regards capital as a scourge.
Hu Zhenhua traded chicken feathers for sugar simply to find a job for Xu Youcai, because old Xu was too frail to withstand the heavy labor on the construction site.
Later, it was to deceive Carter and defraud funds.
Hu Zhenhua looked at Qiu Zhen and smiled.
"Will your idea work in Jiangbei?"
"Of course! I've always misunderstood the Chinese Communist Party. They are open to national industry and commerce!"
Hu Zhenhua showed a look of surprise and asked,
"Really? Tell me now!"
Qiu Zhen calmed down and said,
"I've spoken with merchants from Peking. On April 4rd, the Peking Municipal Administration for Industry and Commerce convened a meeting of 3 trade associations and over 129 private industrialists and businessmen. The person in charge explained the government's business policy: Any business that benefits the national economy and people's livelihood and complies with government policies is free to operate and develop..."
Hu Zhenhua originally had only a vague memory of this period of history, as there was only a brief paragraph in the history book. Now, through Qiu Zhen's reminder, he suddenly recalled: Before and after the founding of the People's Republic of China, the people's government encouraged and developed national industry and commerce.
The real turning point occurred in 1953, because from this year, land reform was completed and the country began to implement the first five-year plan, which marked the official entry of China into the planned economy era.
It was also from this year that the state began to carry out socialist transformation of private industry, commerce, handicrafts, etc.
You cannot simply describe the planned economy and the market economy as right or wrong. The key is to see whether its economic model has enhanced the national strength!
At least before 1958, China's national strength had been increasing significantly.
Hu Zhenhua's mind suddenly became active.
The advantage of a planned economy is that it allows us to concentrate our resources to accomplish major tasks.
The advantage of a market economy is that it can mobilize people’s enthusiasm!
Is it possible to combine these two economic strangers?
The answer is: yes!
Hu Zhenhua has no way to plan at the national level, but he can start from small things.
Hu Zhenhua grabbed Qiu Zhen's hand and said with a smile,
"Mr. Qiu, do you want to set up a factory in Jiangbei?"
Qiu Zhen swallowed his saliva and said in a low voice,
"I don't have much capital, so I plan to ship some sugar over there and boil it locally..."
Hu Zhenhua interrupted him before he finished speaking and said,
"Mr. Qiu, there's a new bank in the industrial zone called Chongming Development Bank. You know, you can get loans there!"
Qiu Zhen looked embarrassed and said,
"I don't have a mortgage!"
"No need for collateral. I'll approve any amount you want, but I have one requirement: each of your factories must include local grassroots organizations as shareholders! And they have to own the lion's share!"
Hu Zhenhua paused and continued,
"Let me give you an example. For example, if you want to build your sugar factory in Xiaowangzhuang, then Xiaowangzhuang will provide the land, and you will provide all the factory buildings and equipment. Xiaowangzhuang will hold 80% of the shares, and you will hold 20%."
Xu Youcai listened with great interest because Xiaowangzhuang is his hometown.
Qiu Zhen frowned and said dissatisfiedly,
"I'm taking too much risk, and I only own 20% of the shares?"
Hu Zhenhua knew he would ask this question, and said with a smile,
"You take no risk, I'm the one who provided the loan!"
"What do you mean?"
"What this means is that the profits ahead of me must be used to pay off my loan first! Once the loan is paid off, you can split the remaining profits!"
Qiu Zhen understood Hu Zhenhua's meaning a little bit, then smiled and said,
"I understand now. If the project loses money, it's the bank's money that's lost!"
Hu Zhenhua nodded.
"That's what it means!"
Qiu Zhen thought for a long time and said,
"It's not appropriate to build a sugar factory in the countryside. Transportation is inconvenient there! Can I cooperate with the county?"
Hu Zhenhua decisively refused and shouted,
"No, you can only cooperate with grassroots organizations, otherwise, I will not approve the loan for you!"
"why?"
“Because the people who suffer the most and are most tired are at the grassroots level, and they are the ones who need work the most!”
In fact, the real reason is that there are too many leaders in a county. They will cram people into the enterprises one by one, and slowly the enterprises become bloated.
In later generations, factories went bankrupt one after another, and the lessons were bloody.
In a village or a street, there are only a few hundred or a thousand people at most. The sugar factory is their own industry, and the people will keep a close eye on it and will not allow any corruption or waste!
With fewer people, we can avoid eating from the same pot!
Moreover, workers for the sugar factory can be recruited locally to provide employment for farmers.
Qiu Zhen obviously couldn't understand Hu Zhenhua's good intentions and argued,
"Mr. Hu, we are running a business. The first thing we need to do is to keep the business alive! Once we are profitable, we can do more for the people."
This idea is not wrong, but what Qiu Zhen does not know is that the risks of enterprises do not come from the market, but from policies.
Hu Zhenhua waved his hand and said,
“Labor costs are lower in rural areas!”
"But towns are the distribution centers of people and goods!"
Hu Zhenhua didn't want to say anything more, because words could not convince others, and there were some things that Qiu Zhen could not understand.
"Mr. Qiu, if your factory is built in the countryside, I can provide you with unlimited credit. If you insist on your own opinion, I can only provide you with a credit of 10 yuan."
After thinking for a moment, Qiu Zhen made a decision.
"Mr. Hu, I want to follow my own ideas! After all, only I can be responsible for myself!"
Hu Zhenhua took out his notebook, signed a guarantee letter to Qiu Zhen, and said with a smile,
"Mr. Qiu, I wish you a prosperous business! Take this note and apply for a loan from Chongming Development Bank!"
"Thank you!"
Hu Zhenhua turned his gaze to Xu Youcai and asked,
"Uncle, are you interested in building a sugar factory in Xiaowangzhuang? I can lend you money!"
Xu Youcai was already moved, he jumped up and said,
"Sir, I don't want money. Just lend me a few thousand kilograms of sugar. We have a pot and can make it ourselves!"
Hu Zhenhua burst into laughter.
"no problem!"
The first rural enterprise developed by Lao Hu started in Xiaowangzhuang.
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