Chapter 298 Installment Payment

Vienna, Schönbrunn Palace.

Watching beautiful women play billiards is also a kind of enjoyment. Ajani picked up the cue elegantly and hit the ball at the desk. The series of movements were smooth and flowing. The graceful figure flashed by like a phantom, leaving only two large white semicircular balls lingering in Franz's mind.

"Archduke Franz, what do you think of Solomon Rothschild's proposal?"

Franz shook his head and said.

"Not very good, a dog can't change its eating habits. Can't they make money honestly? They have to make some financial innovations. 25% interest per year, isn't it usury?"

In fact, Franz's sewing machine business was extremely hot during this period. The foot-operated sewing machine not only took away the market of the hand-cranked sewing machine, but also detonated the entire household machinery industry in one fell swoop.

It became the second mechanical product to enter thousands of households after clocks and watches.

In history, it was precisely because the foot-operated sewing machine quickly became popular in various countries that it directly changed the history of the financial industry in later generations. But at this time, the ambitious Solomon Rothschild was trying to change his fate.

A sewing machine priced at 350-400 florins was not something that an ordinary Austrian with an annual income of only 100-150 florins could afford.

This was the actual national situation at the time. Many ordinary families had to save money for several years to have a little purchasing power.

Solomon, who had a shark-like nose, keenly sensed the business opportunity. He found Adjani and said that he was willing to provide loans to those poor buyers, and promised to share 40% of the interest income with the royal family.

Franz's industry was naturally under the banner of the royal family, but almost no one thought that he was the real boss behind the scenes, and on the surface, Archduke Franz Karl did not seem to be someone who could do such a thing.

So people believed that Mrs. Sophie was the mastermind behind the scenes, but on the surface, Adjani was responsible for the contact and coordination work, which made people very confused.

Back to the point, Franz, who has a certain understanding of the financial capital operation, does not want to be a lackey of these parasites at all, not to mention that the 40% profit is simply a death warrant for the court.

The rule of the Habsburg family is largely due to the support of the grassroots people. This kind of conspiracy with usurers to harm the people is tantamount to suicide for the country.

Ajani was not surprised by Franz's words. After all, the latter always seems to be able to come up with amazing and wonderful ways.

But if Solomon Rothschild's opinion is adopted, more people will benefit from the convenient sewing machine, which will be more conducive to its promotion and popularization, and the profit income will also increase rapidly.

As an intelligence chief, she knows everything about the various classes in Austria. The current sales growth rate of sewing machines is already exaggerated, but it has not yet reached its potential limit.

Many people give up because they cannot come up with a very high amount of funds to cross this high threshold. And the emergence of sewing machines has caused the income of women who rely on hand sewing at home to plummet.

There are only two choices before them, either consider joining the factory immediately to make a living, or upgrade their own equipment by purchasing sewing machines to improve efficiency.

She believes that under the stimulation of the surrounding environment and life pressure, many people will choose to borrow usury as long as someone is willing to lend them.

Since ancient times, usurers have been attached to the powerful, and the Rothschild family is no exception. It's just that before meeting Franz, Solomon had a smooth life, which made him think that he was the king.

To be honest, even Ajani felt sad for him at this moment. A former "king" was still only willing to share a small part of the profits after being hit hard many times. It was really a bit ignorant of life and death.

"Archduke Franz, you must have some strange ideas again, right? After all, I am in charge of the business of the department store now. I believe your method must be applicable to other products."

Ajani smiled and jumped back and sat sideways on the pool table.

"I think you should use your brain, after all, the brain will rust if it is not used for a long time." Franz deliberately reprimanded.

"Oh, really? But experts in Vienna say that women shouldn't be too smart, otherwise they will easily follow the path of Satan."

It was a consensus in Europe in the 19th century that women shouldn't be too smart.

"You are bad enough. Satan's path is not suitable for you." Franz teased.

"Isn't it good to be a bad woman?" Ajani took off her shoes and put her feet on the billiard table, tilted her head and looked at Franz, and blinked.

"You should talk to the archbishop about this, maybe he can exorcise the demon for you.

Okay, let's get back to the topic just now. Solomon's proposal is fine in a prosperous year, but once an economic crisis like the one in 1837 comes back or a food crisis breaks out again, a large number of bad debts will be inevitable.

By then, what will be presented to us will be a broken society with a large number of people going bankrupt, consumption capacity being greatly weakened, factories shut down and a large number of workers unemployed.

Of course, the crisis will not stop its spread, from cities to villages, and finally the entire empire will fall into a semi-paralyzed state. If there are some sparks at such a critical moment, it will trigger a disaster."

The above analysis made Ajani's eyes light up. Although she also spent a lot of time doing homework, she still had a long way to go to the height of the former's ability to draw inferences from one example.

She was not sure if Franz was exaggerating when he linked usury stimulating consumption, the international situation, and revolution, three seemingly independent events, but she knew that the current financial problems were much more serious than she had imagined.

"Then the solution is to let everyone buy goods within their consumption range and income capacity?"

"Not entirely. Economic problems have always been complex and multifaceted. They cannot be solved once and for all by a suitable or universal antidote. Moreover, austerity is not conducive to economic development. Perhaps we can adopt the installment payment model."

"Installment payment?" Ajani asked.

"Yes, for example, a sewing machine priced at 350 florins can be purchased by the other party with a term of 18 months and a monthly repayment of 20 florins. The extra 10 florins will be regarded as interest."

Franz's explanation made Ajani's eyes light up, and then she asked another question.

"Only 10 florins, isn't this interest rate too low? And there are many risks involved. What if the buyer dies or disappears?"

"Miss Ajani, I just proposed a concept. The specific operation will of course be done by you or your people. I only have one requirement that the total interest collected should not exceed 10% of the value of the goods, and it is best to keep it below 5%.

As for how to eliminate risks, whether it is mortgage or pre-loan investigation, it is up to you. Some things will not know the results if you don't do them."

Ajani jumped off the pool table and walked to Franz and said.

"Archduke Franz, there are some things that you can't figure out just by looking at them."