Chapter Fifty: A New Loan

Late September.

Chen Guangliang returned once more to the Changjiang Rickshaw Depot on Yuyuan Road. After more than twenty days of renovation, the site was beginning to take shape.

Under Chen Guangliang’s design, six timber-framed houses would be constructed on this three-and-seven-tenths-acre plot, surrounded by a bamboo and wooden fence. Along the fence, waterproof shelters for the rickshaws would be built—though each rickshaw already had its own canopy for rainy days.

The depot remained quite simple, constrained by limited funds and the possibility that the land might later be sold for profit.

Recently, Chen Guangliang conducted a field survey between the Fangua Lane base, the Yuyuan Road base, and Nanjing East Road.

The Fangua Lane base was two miles (3.2 kilometers) from the Yong’an Department Store on Nanjing East Road, separated by the Suzhou River;

The Yuyuan Road base was three miles (5.4 kilometers) from Yong’an Department Store but accessible by a direct road;

Fangua Lane was two miles (3.2 kilometers) from Yuyuan Road base.

These three locations roughly formed a triangle centered on Jing’an Temple Road (Nanjing West Road), with Fangua Lane at the northern apex and Yuyuan Road to the west.

After this geographical and distance assessment, Chen Guangliang decided to retain the Fangua Lane base.

He planned to split the Changjiang Rickshaw Depot into two, beginning with Project F (20 vehicles) to operate deliveries, rent collection, and other business activities at the new base.

This arrangement would facilitate easier management and benefit the operations of the Changjiang Rickshaw Depot.

Zhou Xinggao approached and reported progress: “Boss, there’s just over a week left until completion!”

The work was extensive due to the vastness of the land.

Chen Guangliang nodded with satisfaction. “Thank you for your hard work.”

Breaking new ground was never easy.

The land here was indeed remote, within the ‘boundary-crossing road construction’ zone of the concession.

Yet, all the more so, the potential for appreciation was greater since the land bordered the concession’s asphalt roads.

Land within the concessions commanded much higher prices than areas outside, thanks to three main factors: security, commerce, and transportation.

First, security: the International Settlement had one policeman per 207 residents, the French Concession one per 256, while the Chinese district had one per 378 people. Of course, military and political factors also played a role.

Second, commerce: no need to elaborate—the most prosperous areas of Shanghai were centered around the Bund and Nanjing East Road.

Lastly, transportation: the foreigners understood the principle that “to get rich, build roads first.” The International Settlement boasted over 280 kilometers of public roads, the French Concession over 90 kilometers, mostly paved with asphalt; whereas the Chinese district had only 230 kilometers of public roads, covering a much larger area but primarily surfaced with coal slag or cobblestones.

For these reasons, Chen Guangliang believed the land around Yuyuan Road and Jing’an Temple Road held exceptional appreciation potential.

After discussing with Zhou Xinggao for a while, Chen Guangliang took a rickshaw toward the Jincheng Bank.

...

The Jincheng Bank building at 200 Jiangxi Middle Road began construction in spring 1925 and was completed in spring 1927. Designed by Zhuang Jun Architectural Firm at a cost of 900,000 yuan, it was one of the earliest Chinese-owned bank buildings in the Bund area.

Jincheng Bank was the leader among the “Northern Four Banks” and possessed considerable strength.

Previously, at Gu Zhuxuan’s residence, the general manager of its Shanghai branch, Cheng Zikang, had handed Chen Guangliang a business card.

Now, Chen Guangliang wanted to see if he could open a new “financial channel.”

Arriving outside the bank building, Chen Guangliang admired it with envy.

A six-story European-style structure with a marble facade—typical of the Bund’s architecture.

The key was the cost: 900,000 yuan to build such a building. When would Chen Guangliang ever have the means to purchase an entire building?

Entering the bank, Chen Guangliang presented the business card and smoothly secured an audience.

Cheng Zikang warmly stood and said, “Mr. Chen, welcome to my office!”

Chen Guangliang extended his right hand and bowed slightly. “Sorry to trouble you, Manager Cheng.”

“No trouble at all, please have a seat!”

They settled onto the office sofas as a secretary poured tea.

Chen Guangliang wasted no time, taking out two land deeds. “Manager Cheng, I’ve purchased two plots. Here are the deeds. I’d like to use these as collateral to secure a loan of 10,000 yuan.”

Cheng Zikang examined the deeds and said, “Mr. Chen, you really are investing in land... Yuyuan Road... altogether six and seven-tenths acres. That land should be worth just under 1,500 silver dollars... Mr. Chen, you want to borrow at face value?”

Chen Guangliang nodded. “I’m not using this money to invest in more land; rather, I want to expand the rickshaw business. Essentially, my repayment capability still rests on the Changjiang Rickshaw Depot.”

If it was a business venture, loans could exceed net assets, provided the business had potential.

Cheng Zikang smiled. “Alright, I’ve thought about your previous remarks and would like to discuss some matters further.”

Chen Guangliang promptly asked, “Manager Cheng, do you mean that Jincheng Bank might get involved?”

The Shanghai International Settlement (British-American Concession) covered over 33,000 acres, the French Concession over 15,000 acres, while the Chinese district spanned 640,000 acres.

During this wave of rapid price rises, land in many parts of the Chinese district—such as Zhabei and Hunan—also surged, not to mention the concessions themselves.

So the market was still quite large.

Cheng Zikang nodded. “It’s quite normal for banks to invest in real estate.”

They then exchanged further views.

Compared to Gu Zhuxuan, Chen Guangliang hoped to cultivate a closer relationship with Cheng Zikang.

He remained wary of Gu Zhuxuan, but genuinely wanted to befriend Cheng Zikang.

“Indeed, Mr. Chen, your insights have opened my mind and been very enlightening.”

“Oh, I’m still young and inexperienced; I may not always be right!”

Cheng Zikang quickly responded, “Well, truth is truth, regardless of who speaks it. You’re optimistic about the Northern Expedition armies, and so am I; you believe in Shanghai’s development, so do I... you think land speculation is most likely to flourish, and I agree.”

Compared to Gu Zhuxuan, Chen Guangliang was more candid with Cheng Zikang, stating plainly that land would be the most promising investment for appreciation; stocks were good too, but less stable than land.

In the end, Cheng Zikang readily approved Chen Guangliang’s loan. After all, a 10,000-yuan loan was a minor sum for Jincheng Bank.

Chen Guangliang was pleased, not only for obtaining the loan but because he and Cheng Zikang had become acquainted.

If Cheng Zikang helped Jincheng Bank gain considerable profits from land speculation, he would likely support Chen Guangliang strongly in the future.

At some point, Chen Guangliang anticipated he would need the bank’s backing, hoping these connections would prove useful.

As for this 10,000-yuan loan, he could have also obtained it from the Shanghai Commercial Savings Bank.

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