Chapter 300: Where’s the Money?

Minister of Industry Fell is a gold mine owner himself, and his speech also represents the thoughts of the vast majority of gold mine owners.

Liang Yao also agrees with Fell's point of view. It is indeed a poison to quench thirst to impose heavy taxes on the gold mining industry.

Gold is the golden signboard of California to quickly attract foreign immigrants. If this signboard is smashed, California will be no different from other new states.

"It is indeed not appropriate to continue to increase taxes on the gold mining industry."

Seeing that everyone was still arguing, Liang Yao expressed his position and motioned everyone to continue sitting down and think about other ways.

Liang Yao's statement made California politicians who run gold mines breathe a sigh of relief.

"How about reducing the original three-year tax exemption policy for industrial and mining enterprises to two years?" Minister of Agriculture Chen Baoliang suggested.

In the end, no matter which department it is, they all hope to solve this crisis by increasing taxes on other departments.

California's tax exemption policy for industrial and mining enterprises has been implemented since 1851. Now this policy has been implemented for two years. After this year, the state government can levy taxes on industrial and mining enterprises that have enjoyed the tax exemption policy since 1851.

Liang Yao has also considered levying consumption tax, but the consumer market in California has not yet been developed, so it is not the right time to levy consumption tax.

"Credit is the most important asset of a government. If the California government changes its policies every day, I am worried that the people of California will lose confidence in us in the future. We cannot overdraw the credibility of the state government." This time it was Robinson who stood up to oppose.

Robinson's words also touched Liang Yao's heart.

In order to make achievements in the civil war eight years later, the California government must maintain a relatively high prestige among the people of California, so that the people of California can trust and even obey the state government.

Based on this alone, Liang Yao cannot make such a decision that trusts the wisdom of future generations and let the next California leadership team clean up their butts.

Besides, the next California government team is likely to be his own team, and doing so will also cause trouble for himself in the future.

"Without the trust of the people, a state cannot stand; without the trust of the state, a state cannot be strong. Since the tax exemption policy promised to industrial and mining enterprises was written in black and white for three years, it must be three years, and it cannot be discounted for a day." Liang Yao supported Robinson, then took a sip of water from the cup on the table to calm his throat, and continued.

"As long as we survive this year and hold on to next year, the first batch of industrial enterprises, agricultural reclamation companies, farmers, and farmers who enjoy the tax exemption policy will be able to pay taxes next year, providing a new source of tax revenue for California, and then California's financial situation will improve."

California's financial difficulties are not desperate, but only temporary.

As long as we hold on until 1854, the first batch of industrial and mining enterprises, agricultural units, and individuals who enjoy California's policy support will start to pay taxes, and the state government can reduce its dependence on gold mining taxes, and then the state government will have a much better life.

Of course, all this is based on getting through this year.

1853 will be the most difficult year since California was founded.

"In this case, this year's financial situation will naturally be very difficult." Deng Wenyu looked embarrassed.

"A good cook cannot cook without rice. If the Ministry of Finance has no money, the state government will not be able to survive this year. Since there is no way to increase revenue, we can only cut costs. The expenditures of various departments should also be reduced. Everyone should tighten their belts and grit their teeth to live together."

"The expenditures of various departments remain the same, and no policy can be discounted." Liang Yao did not have the idea of ​​tightening his belt to live.

Once these preferential policies are discounted, California's economic growth rate will also be discounted. If California's economic growth rate is discounted, California's industrialization speed will also be discounted.

There are only 8 years left before the outbreak of the civil war. California has little time left, and it must race against time to develop.

"Where is the money?"

Deng Wenyu hesitated again and again, and plucked up the courage to ask back.

"How much is the fiscal deficit expected for California this year?" Liang Yao asked.

Deng Wenyu buried his head in the paper and wrote some calculations, and then gave the answer: "According to a relatively optimistic and rough estimate, California's fiscal deficit this year will be 3.6 million US dollars. Of course, this does not include the fiscal deficit of 1.9 million US dollars last year."

"What is the more pessimistic estimate?" Liang Yao asked.

"Then there will be at least 4.5 million US dollars in fiscal deficit this year. As for the specific amount, it depends on the number and quality of immigrants this year." Deng Wenyu pinched his chin and said after a long pause.

"Okay, I will find a way to raise 6.4 million US dollars for the Ministry of Finance to tide over this year's difficulties." Liang Yao gritted his teeth and said.

"What do you have in mind?" Strauss, who had been silent all the time, asked.

"Borrow money." Liang Yao said, "And this time, I will also strive for a part of the Japanese reparations for California. In the military operation of the expedition to Japan, we California contributed the most, and it is reasonable to ask for some reparations as compensation."

Since there is no way to increase revenue for the time being, Liang Yao does not want to cut costs, so he can only borrow money first.

After making up his mind, Liang Yao asked Robinson about the situation of Bank of Boston. Robinson told Liang Yao that the Boston Group has been expanding rapidly in the past two years, and a lot of the bank's money has been lent out, and the remaining reserves are not much.

Robinson said that he could persuade the shareholders of Bank of Boston to borrow some money from the California government for emergency, but the amount would not be too much, estimated to be around 800,000 US dollars.

The situation of Liang Yao's Bank of America is similar to that of Bank of Boston. Under the rapid economic development of California, all industries are increasing leverage, especially the banking industry.

Although the reserve of Bank of America is considerable, Liang Yao himself still has a cash flow of 9 million US dollars on hand, but this money is reserved for the petrochemical industry and the construction of the Pacific Railway.

Although the cash flow of 9 million US dollars seems to be a lot, it will only make a fuss if it is used to invest in the petrochemical industry and the construction of the Pacific Railway.

However, since Boston Bank is willing to take out 800,000 US dollars, Bank of America should also give some money.

After some thinking, Liang Yao decided to let Bank of America take out 1 million US dollars.

After discussion, the Ministry of Finance finally decided to issue 1.5 million US dollars of state bonds in the state.

With this calculation, there is a gap of 3.1 million US dollars left.

For the remaining gap of 3.1 million US dollars, Liang Yao decided to first find Gypsy and Le Goff, two British and French bankers in California, to see if he could borrow some money from them to fill this hole.

If they are unwilling to lend, or the requirements for providing loans are too harsh, he can also go to Wall Street to raise money.

Can a multi-millionaire be choked to death by a mere 3.1 million US dollars?

With his current wealth and reputation, let alone borrowing, it is not impossible for him to go to Wall Street and swindle millions of dollars as long as he wants. There is no shortage of elites, liars, or fools in the financial market.

After the meeting, Liang Yao stood under the towering Huabiao and said to everyone: "The Sacramento State Government Office Building is not completed yet. If it is not completed, the progress of the project should be slowed down. We should save the money that should be saved."