Darkstone Code

Chapter 1085 - 1083: Conditions and Arrangements

"Second... I need support from the state government’s funds, policy incentives, and, when necessary, to negotiate with banks together with me."

Mr. Adelaide looked at Lynch and thought for a while. He bit his thumbnail, nodded after about ten seconds, "No problem, we will show the utmost sincerity!"

What distinguishes a mature capital and an immature capitalist?

First, let’s talk about immature capitalists. These people can only be considered as business people, and when they do something, they often rely on their own capabilities to decide what to do.

For example, if they have a hundred dollars, they will do business worth a hundred dollars.

There’s nothing wrong with that, and it’s very safe, like investment finance, without leveraging; they play with the money they have. Even if they lose it all, they only lose what they had.

This doesn’t mean what they are doing is bad—it’s actually very good—but such practices don’t qualify them as successful capitalists.

This is the difference between them and mature capitalists. For mature capitalists, if they have a hundred dollars, they will find a way to leverage three thousand, five thousand dollars worth of business!

Even a tiny bit can bring them considerable returns.

Their understanding of money, capital, and social relationships is far superior to that of immature capitalists. They can easily create "opportunities" or "disasters."

However, they are only mature and still some distance from success.

Truly mature capitalists never use their own money for investments, whether in finance or industries.

To put it down a notch, a successful capitalist in a financial activity would consider it lucky to contribute five percent of the funds.

They employ methods that turn decay into magic.

It’s like Lynch can build factories without spending a dime and even find ways to start production.

Yes, it doesn’t require a penny, but achieving such a level requires certain prerequisites—that others must recognize you as a successful capitalist or that your methods are astute enough.

There’s an entrepreneurial legend circulating in Bupen, about how the founder of the Federation’s largest beer producer was once an ordinary person.

Relatively speaking, reports ignored his actual family background, claiming he was an ordinary citizen of the Federation.

In reality, his father was a manager of a merchant firm, and his mother worked at a bank. But, removing these inconsequential "settings," the story doesn’t change much.

At the beginning of his venture, he didn’t have enough money. He wanted to borrow and raise funds but failed, so he played a trick.

He submitted a cooperation intention letter to one of the top three beer bottle manufacturers in the Federation, informing them of his plan to build the largest regional beer factory.

But he didn’t know whose beer bottles to use and hoped they could provide some samples for market research to finalize the decision.

He mentioned in the intention that he estimated an annual production of one million bottles without recycling them!

This was unheard of at the time—beer bottles, glass, were considered luxuries a century ago, and even now are not cheap.

Then he showed the beer brewing equipment suppliers a warehouse full of beer bottles from the three major manufacturers.

He told these suppliers everything was ready except for the last machine. He didn’t know which machine was better, and hoped they could rent some machines for a try-out period.

Then he would decide on the machinery to use.

He kept persuading many people, using such methods, to join in. In the end, apart from not being able to "trick" farmers out of raw materials, he had to buy some. Even the workers were free hires!

After a week of trial, they officially joined, with slightly higher wages than others. Some temporarily unemployed people were willing to waste a week there.

Thus, without spending much, beer began rolling out truck after truck.

With products, he could impress banks and investors, and soon he expanded his beer empire, becoming the Federation’s largest beer producer in over a decade.

This is the allure of capital, and the reason people chase it—

Less input, more return!

Of course, most people fall on the journey before understanding what capital really is, but this doesn’t stop future generations from stepping over their bodies to move forward.

It is because of people’s relentless pursuit of profit that the Federation has its current capital environment.

In York State and the Federation, there are subsidies for entrepreneurship because it can promote local economic development and provide more jobs, so both local and the Federation government encourage entrepreneurship.

No matter if they fail eventually, at least along the way they can solve the eating problem for a few to dozens, hundreds, thousands of people.

Even if they go bankrupt in the end, it’s only the trouble of one or two people or a small group, not everyone’s trouble.

Thus, with policy inclinations, starting businesses, setting up factories, will have government fund cooperation. This money isn’t much, and it’s not very valuable for Lynch’s scale of factories.

But it has some significance—at least some tens of thousands of subsidies can solve his initial problems, then he can get bank loans!

This is key.

Banks never lend money to poor people because they know that poor people can’t make money with borrowed money, leading to uncollected bad debts.

But they lend money to those with industries, who are rich, as when sensing danger, they quickly detach and make a hefty profit.

Lynch, backed by the state government, with support from the Ministry of Defense and foreign military equipment trade, the bank would be insane not to lend to Lynch!

If they are at all rational, they know the right thing to do is to lend as much as possible at this time.

As for Lynch not repaying... doesn’t the state government guarantee it? Maybe they can help!

Plus, now companies are allowed to issue bonds, one needs to pay upfront before working, Lynch can entirely fund the factory without spending a penny.

As for why Mr. Adelaide trusts Lynch, perhaps he thinks Lynch won’t play tricks on these matters.

Doing such a thing once might retain trust, but repeating it, even if it’s legitimate, will leave no one trusting.

After all, the Federation is a country that values contractual spirit. Going too far may leave no place for one there.

Lynch proposed many conditions, and Mr. Adelaide agreed to them, but he also had his own thoughts.

"Lynch, I can agree on your behalf of Mr. Governor, but we have one condition."

Lynch nodded slightly, "Please say."

"Can the factory be built near the capital, Sabin City is ultimately a small city, with its three to four hundred thousand population unable to meet such a factory’s construction demands."

"Our place is different, with a population of millions, more complete, and better facilities, we can contact at any time, and quickly solve any problems!"

When Mr. Adelaide expressed these words, Lynch realized his core demand—the governor’s re-election.

But Lynch also has his demands, he has to provide Catherine with suitable support.

Improving living conditions and strengthening people’s sense of security, besides giving people a job, is there anything more suitable for the ordinary folks?

No, nothing, so the factory must be in Sabin City.

"The location cannot change, but our recruitment can be entrusted to City Hall and the state government."

"Moreover, I can build some supporting factories here."

Mr. Adelaide pressed his lips pondering for a while, "Is it because of Catherine?"

Lynch nodded, admitting, making Mr. Adelaide sigh, "I really envy you all, so this matter is basically confirmed, then we will contact the bank, do you have any bank in mind?"

"Golden Exchange Bank, I’m familiar with their people."

Mr. Adelaide confirmed again he would arrange soon for Golden Exchange Bank’s people to negotiate the possibly large loan together.

The bank would also be happy, with the state government guaranteeing this, even if Lynch goes bankrupt and doesn’t repay, they can turn to the state government—it’s a sure-win deal, they would want to make!

Seeing this conversation coming to an end, Mr. Adelaide suddenly asked, "By the way, someone asked me to inquire about what you plan to do with those homeless people?"

Some things can be concealed from people, like couples pulling the curtains at night, lying in bed covered up, who knows if their luminous watch really glows green.

But some things are hard to hide, like Lynch’s gathering with the Green brothers, leading to the sudden drop of homeless numbers in Sabin City’s streets.

Someone worried Lynch chose a wrong direction with a misstep, prompting Mr. Adelaide’s question.

Lynch couldn’t help but laugh, "I plan to help them fulfill any wishes they might have had, you know, I’m very kind and willing to help others achieve their dreams."

"We are pushing an economic crop planting plan in Mariluo, but they lack some... you know, we’ve learned from Nagariel."

"When foreigners are involved, it can better stimulate locals’ desire to work."

"They might think, ’Even foreigners are scrambling for it, apparently, we didn’t choose wrongly.’ No need to worry about their safety; when they return, they will contribute to the Federation’s economy!"

Isn’t that right?

After some years in that barren place accumulating money, not spending indulgently would be unfair to one’s hard work?