Chapter 1136: The Path to Self-Destruction

The fact is, the banking system was built at the insistence of the aristocratic families and wealthy merchants who strongly wanted to hold onto Chen Xi’s support. However, for a comprehensive coverage across all regions, Chen Xi needed the assistance of these aristocratic families and merchants. After all, they each had a complete network of contacts in their respective territories, which formed the prototype of the aristocratic clans' networks.

Of course, in areas where Chen Xi hadn’t raised the issue of building banks, these families had considered establishing them, but they lacked the capacity. Combining the resources of several families to build a regional bank was possible, but from the perspective of these aristocrats and merchants, the most important aspect of a bank was its broad reach.

What good is it if it only covers one prefecture? Just for a few of them to do business? They all live in the same prefecture—seeing each other every day—so there’s no need for such a system.

Building a nationwide banking network was crucial for those who had already experienced its convenience, but who would take the lead? How would they build it? No one had any idea. In the end, they could only wait for Chen Xi to speak, and eventually, he did.

So, contrary to what Liu Ba and others assumed about Chen Xi establishing the system himself, in reality, it was the aristocratic families and powerful merchants who demanded its creation. During the process, Chen Xi kept hinting that he wanted to abandon it, but he gave the aristocrats and merchants face by going through with it.

Naturally, Chen Xi didn’t build the banking system just to line his pockets. It was more about control. Once the banking system was embedded in every prefecture of the Han Dynasty, the use of credit-based currency for large transactions would become an irreversible trend.

The shortcomings of copper coins were too obvious—just their weight alone was a headache. Once replaced with banknotes, Chen Xi could roughly calculate the tax revenues from Cao Cao’s bank in Yongliang and Sun Ce’s bank in Jingyang.

Chen Xi didn't believe that once Cao Cao and Sun Ce adopted this system, they would refrain from using it just because it wasn’t originally theirs. The benefits were too substantial, and no drawbacks were apparent. Since it was already established, not using it would be a loss.

Moreover, the use of banknotes by the major merchants would allow Chen Xi to estimate the tax evasion of the aristocratic families and wealthy merchants—something that Cao Cao and Sun Ce wouldn’t be able to figure out. While the aristocrats and merchants themselves might not realize that Chen Xi could use these notes to calculate such things, Chen Xi had a general sense of their tax evasion, even if they couldn’t estimate it accurately themselves.

All of these were levers of control. Though not explicitly stated, when the time came to act, there would be plenty of evidence. It wasn’t just Liu Ba who understood the need to crack down on the powerful landlords and monopolistic merchants while supporting small and medium-sized traders; Chen Xi knew this well too.

However, Chen Xi also understood that now wasn’t the time for such actions. On the contrary, large-scale transactions among the powerful families and merchants, when kept within limits, could drive many industries. Therefore, they were still needed. As for the risks, well, the military power was still in his hands.

Besides, Chen Xi knew that for the common people of this era, it was more important that they had enough food to eat and warm clothes to wear. Other matters could be set aside for now. Chen Xi had already stabilized grain prices through official grain purchases. The large merchants’ transactions didn’t affect the common people much.

Thus, from this perspective, Liu Ba taking over the Yongliang Bank only served to give Chen Xi someone to blame if things went wrong. In fact, there was little harm in it, as seventy percent of the money had already been sent to the main bank. Yongliang only held thirty percent.

Of course, thirty percent of the two hundred billion in collateral from aristocratic families and wealthy merchants still amounted to sixty to seventy billion, with about thirty billion remaining in Yongliang. This massive amount would be enough to overwhelm Liu Ba, who had never seen such sums before. But to Chen Xi, it was merely leftovers.

Therefore, when Chen Xi received news of Liu Ba taking over the bank, he only furrowed his brow slightly, not thinking much of it. If Liu Ba wanted to compete with him, he was overestimating himself. Liu Ba hadn’t reached that level yet, and even the biggest asset he had, the Yongliang Bank, was given to him by Chen Xi.

Chen Xi even thought about manipulating the situation to bankrupt the Cao family’s group and then acquiring it, though he knew such a move would ultimately harm the common people.

If Cao Cao’s economy improved, it would make things easier when it came time to take over. In the end, what truly mattered was military strength, not the economy. And even in economic matters, Chen Xi had double the resources Liu Ba had. Losing in the area where he excelled the most would be absurd.

Yet, as Liu Ba began to make Cao Cao’s economy flourish, Chen Xi couldn’t help but feel a slight sense of regret—that Liu Ba never managed to step onto his own path.

At that time, Guan Yu was already quite displeased. Had he known it would come to this, he would have cut down Liu Ba outside the gates of Chang’an back then, even if it meant wielding his blade.

But that’s a story for later. For now, Xu Zi, known for his sharp insights, had started engaging with Cao Cao’s civil officials in Chang’an. Xu Shao, a man of great talent, had no official position, but wherever he went, he was welcomed with open arms. For example, he was currently staying at the residence of the Grand Commandant, Yang Biao.

After learning about the political situation in Chang’an from Liu Yu, a distant relative of the imperial family with limited connections, Xu Shao paid a visit to Yang Biao.

The two were old acquaintances and had a great conversation. Yang Biao’s most outstanding son, Yang Xiu, also came to greet Xu Shao. However, it was precisely because of this meeting with Yang Xiu that Xu Shao felt a sense of pity.

From Yang Xiu’s demeanor, words, and expressions, Xu Shao could tell that Yang Xiu was a genius. He was about the same age as Chen Xi, so Xu Shao observed him carefully.

The conclusion Xu Shao reached left him feeling deeply regretful. Had the Yang family not fallen to such a state, Yang Xiu would likely have become a favored figure like Fa Zheng, basking in the glory. But the Yang family’s days of being a prestigious clan, with five generations holding high office, were already in their twilight.

"Zi Jiang, if you have something to say, just say it. This hesitance is unlike you," Yang Biao, who was well-versed in human nature, noticed Xu Shao’s hesitation and spoke up.

"Your son will one day be burdened by the weight of the Yang family," Xu Shao said quietly, putting down his wine cup. "His ambitions are as high as the heavens, and his wisdom as deep as the sea. But his fate is as fragile as a sheet of gold leaf."

When Xu Shao spoke the first sentence, Yang Biao silently drank his wine, knowing that the Yang family would eventually drag down Yang Xiu. He smiled slightly at the mention of Yang Xiu’s wisdom, but the third statement left him shocked.

"Is there a way to resolve this?" Yang Biao asked after a moment of silence.

"There is none," Xu Shao shook his head.

In Xu Shao’s view, Yang Xiu’s tragedy was already sealed. Yang Xiu’s intelligence was genuine, but he no longer suited the times because the Yang family had already fallen.

Yang Xiu had been raised as the heir to a family that had held high office for five generations or more. Such a position granted the ability to see through people, to command without the need to please anyone.

At that height, one only needed to issue orders and rally people to one’s cause. But now, the Yang family was no longer the supreme aristocratic power it once was. Yang Xiu could no longer afford the luxury of issuing commands without catering to others.

The bold decisions of those in power were lauded as great reforms when successful, but for those beneath them, even successful boldness often led to ruin.

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