Chapter 42 To the Entrepreneurs of the National High School (November 2, 1910)

Today, the whole country suffers from poverty.Knocking on those who seek poverty is all called revitalizing industry.Husband today's China can not revitalize industry, solid also.However, it has been a long time since the people of the whole country have paid attention to those who clamored to revitalize the industry.Above all, the government set up the Ministry of Agriculture, Industry and Commerce, set up the Encouragement Road, and sent personnel to various countries to investigate industries. Special emphasis on industry, the reason why it encourages and encourages it can be described as extreme.The next ones are to hold business associations and joint progress associations. All towns and even overseas Chinese have established chambers of commerce, and newspapers have also vigorously advocated them. There are many places where companies have been established with the purpose of boycotting foreign goods and recovering their rights. There are no less than a thousand families.If the climate of the entire country's industrial circles is appropriate, there must be Zhaosu ahead.In reality, it turns out that not only those who have not yet prospered will not be prospered, but those who have been promoted will be completely abolished, and the disaster of national bankruptcy is imminent.The ancestors said: "Trouble in the heart, weigh in the worry, and then do it." He also said: "Know the difficulty and then be able to strengthen yourself." If the lady can't do what she wants to do, she must think hard about why she can't do it. Therefore, if we eliminate their resistance and open up a smooth path, there will be a day when they will be able to succeed.Today, Chinese people have been ignorant of it before, and they are still indifferent and unmoved after several failures and failures.Not only are the authorities governing, but they don’t want to change their ways; those who have the responsibility to speak out have never heard of the source of their poverty, and they have conspired to save the country by telling the people of the country.There are thousands of suitable Chen, but this is just one or two ears.

Our country is not without industry since the past.Scholars, farmers, businessmen, and stone people of the country have existed for thousands of years.But is it easy to start Changyan Industry today?It is not because our country's inherent industry is not enough to compete with foreign countries, but now it is almost exhausted, and the situation is dwarfed, so I have to think about it.That's why people in the country today are calling for the revitalization of industries in words, but in essence, they are just revitalizing new types of enterprises. (The word “enterprise” is a term in livelihood science. It is translated as Unternehmung in German and Enterprise in French. Although the English are the most proficient in enterprise, the concept is not very clear in terms of knowledge, so there is no correct word.) The new type of enterprise, so it is different There are different ends of the old style, but the most prominent ones are the disparity in scale.Old-style enterprises are operated by one person or a family, or employ only a few people; new-style enterprises employ as few as a few hundred, at most, or even hundreds of thousands.Old-style enterprises, although the capital is very thin, still have ways; new-style enterprises, the capital is constant from tens of thousands to tens of millions.Husband's new-style enterprises are becoming more and more large-scale, why?Due to the sudden development of machines, the industrial revolution, the rapid expansion of transportation, and the competition in Japanese dramas, all small and medium-sized enterprises have no way to survive, so they have been eliminated, and there is only one way for large enterprises.If the scale of the enterprise is large, the power of one person cannot be alone.Therefore, its organization should be in the form of a collegial body of organs, which can be thorough, and is different from the old-fashioned dictatorship by one or two people.Its capital must be widely raised from the public, so it can be collected thickly, which is different from the old-fashioned one-person or a few people.In essence, the so-called new-type enterprises are also with the joint stock company as the backbone.Today, if you want to revitalize the industry, you must first seek the establishment of a joint stock company and develop it.This move can be seen by anyone with a little knowledge in the country, and there is no need to chatter.However, the political and social phenomena in China today are the most incompatible with the nature of the joint stock company.If we don't take the incompatibles and get rid of them, China's industry will never be able to prosper.Please explain why:

First, a joint stock company must survive under a strong rule of law, but China does not know what the rule of law is. Ordinarily, a person's business bears unlimited responsibilities. If there is a loss in his business, all his property will be repaid. Entrepreneurs are always cautious in their affairs, and there are few disadvantages. Even if they fail unfortunately, the creditors will not suffer greatly.The nature of a joint stock company is not the same.Shareholders have no responsibility except for the payment of shares; their employees, etc. are only the company's organs, and they are not fully responsible for the company's debts on their own behalf.To put it bluntly, in ordinary private business, the entrepreneur and the enterprise are integrated; in a joint stock company, the company is a personality, a subject of rights and obligations, and Lifu shareholders and employees Outsiders also.Only the company's property is used to deal with the company's debts, and nothing else is asked.This is a very dangerous way, so the country must have serious laws to prevent it from being idle.The reason why various countries supervise such companies today is that there are laws to regulate the various internal organs so that they can restrain each other; The evasion and undercover sale of its capital should not be a burden to the creditors.His blog is profound and clear.There are also so-called corporate lawyers in China recently, whose legal texts are reckless and worthless, let alone that the legal texts are perfect, but under today's political situation, is the legal fruit enough to protect the people?Chinese laws are enacted upon promulgation, and violated upon violation.Xi Zhe has a constant saying: "The governance of a country depends on whether its citizens are in a state of law or not." Chinese citizens can never be in a state of law for a day.If the husband has the law but does not practice it, it is tantamount to being helpless.Today's China is a lawless country.Ordinary private business has been used for thousands of years to maintain it, although it cannot survive.This type of new type of enterprise relies solely on the supervision and protection of the law for its life, and its discipline is as turbulent as China's, and it has no way to flourish.

Second, a joint stock limited company must be a citizen with a strong sense of responsibility, so that it can do so without harm. The Chinese do not know that they have responsibilities to the public. The effectiveness of joint-stock company management makes private business the more difficult one: private business, if it wins, it will enjoy its own benefits, and if it loses its money, it will suffer its own losses. Therefore, those who operate are always loyal to their jobs.Otherwise, the employees of a joint-stock company only hold a small part of the company's shares, and the profit and loss of the business are all owned by the company. It is not as good as the loyalty of self-conspiracy and human affection.In particular, those who are unworthy will use their positions in the company for their own personal gain.Although in European and American countries, the law is very strict, and the cunning can still escape from the law, let alone in China where there is absolutely no discipline?The employees of this company are those who fulfill their responsibilities, so it is difficult for them.The only ones who question the responsibility of the staff are the shareholders.As for the company's shares, the amount per share is always very small.As a shareholder, it is not always necessary to take all of its property and invest in shares; that is, to invest more, but not necessarily to invest in all companies.And shares are things that can be resold at any time.In the eastern and western countries, those who buy shares do not intend to recover the share capital in the future, but they sell them for profit in the hope that the stock price will rise.It is not easy for the shareholders of this company to fulfill their responsibilities.However, without such a sense of responsibility, a joint-stock company must not be prosperous but not bad.The reason why the British people are the most powerful in the world in business warfare is that they have the strongest sense of responsibility.However, in the education of various countries in this world, those who advocate business ethics spare no effort, and if they do not do this, all industries will be helpless.The corruption of the Chinese people's customs has reached the extreme today, and everyone puts private affairs first before public affairs, which is really incompatible with the nature of this new type of enterprise.Therefore, if you do a small job, you will lose a little, and if you do a big job, you will lose a lot. Even if you do the best business, those who are lucky to be undefeated will not be able to develop in the end.In recent decades, those who have dissipated national capital for the purpose of establishing joint-stock companies, their companies cannot cover thousands of dollars, and their money cannot cover tens of millions.The most prominent ones are the China Merchants Bureau, the Guangdong-Han and Sichuan-Han Railways, and the Qing Dynasty, Communications, Public Welfare, and Xinyi Banks, all of which are precedents.From the perspective of shareholders, it is true that the legal status is uncertain, and it is impossible to exercise a definite supervisory power; and shareholders are too lazy to take responsibility, and even give up the authority they have obtained, so that employees cheat and cheat without any scruples.If the development of the company is hindered, the employees and the shareholders will share the responsibility.In general, a joint-stock company is most similar to a country with a constitutional government: corporate laws are like the constitution, employees are like government officials, and shareholders are like all citizens.Government officials who do not reflect on their status as appointed by the people, do not take public responsibility to heart, and seek selfishness, will not be able to establish a country; and if the people are lazy in supervising the government, even if there is a constitution, it will become a deadlock.Therefore, new-style enterprises cannot grow without a constitutional state.Because the people must live under a constitutional government, then the public concept and sense of responsibility will flourish, and these two are the soul of the joint-stock company.

[P.S.] In China's joint-stock companies, there are several special reasons why the shareholders cannot rely on the fact of supervision and let the staff be domineering: First, the money received per share is too small.For example, in recent years, all the railway companies with a capital of more than 10 million yuan have a rate of five yuan per share.Although this has the benefits of wide-ranging fund raising, most shareholders, not only regard the shares as less important than themselves, but also regard themselves as less important than the company, and it is easy to lead them to give up their rights.When a husband renounces his rights, he also renounces his obligations.In the dark, there are few people who damage the morals of the industrial world.Second, the establishment of a company is often not motivated by the corporate concept.Such as various railway companies and mining companies in recent years.It was initiated with the idea of ​​restoring national power at a large rate.Those who attach shares regard it as an obligation to the country, and whether they will make profits in the future is not a question for the time being.Such a pure ideal, why not respect it?Although the livelihood behavior must follow the principle of livelihood, the matter is obviously a kind of enterprise, and it is unreasonable to wait for capital to rent and tax.Therefore, the employees also entrust themselves to fulfill their duties for the country, and the shareholders reward them for their righteousness and bravery.Such ambiguous ideals, which are mixed between public and private, seem to be patriotic, but are actually sick to the country.Third, every company must have official profits. This is a unique habit of Chinese companies, which is unheard of in other countries.The profit and loss of the husband's business varies from year to year, and it is difficult to predict the situation.If even in the face of poor business conditions, the fixed amount of official profits must be distributed, will the company's business be able to expand and its foundation to be stable?Therefore, the nature of the shares of our company is different from the so-called shares in foreign countries, but the same as the so-called social bonds in the basics. Those who hold social bonds only have the principal and interest, and are irrelevant to the company. This is also a general rule.Shareholders of various companies in our country are in general categories, but they only seek the integrity of official interests.Employees take advantage of this mentality, or increase their official profits to attract people, and they actually cut out the distribution from the capital, or even eighty-nine. (The most famous railway companies, such as Aohan, Chuanhan, Jiangxi, etc., have consolidated their share capital for several years, and have not built a mile of roads, but they pay dividends to their share capital every year. Have you ever heard of such a corporate law in China and abroad?) Shareholders initially used their If you have the official profit, you can get used to it and settle down. I don’t know if it will be a few years and the capital will be exhausted.These numbers are enough to hinder the development of stock companies.The gentleman in the future should take it as a warning.

The lack of public awareness and sense of responsibility is the same as the resistance of joint-stock companies, and it is especially true for government-run businesses.Countries in today's world, either because of the powerlessness of the people, or to prevent the disadvantages of free competition, often refer special enterprises to the government, which nourishes the livelihood of the people of the whole country, and the shortcomings of joint-stock companies are often corrected by the government. .Why?Officials have clear responsibilities and severe punishments. It is not as easy for them to engage in private affairs and cheat as company employees, and the organs of people's supervision of politics are perfect and secret, and it is beneficial not to let them get their own way.Our country is different.Officials specialize in dancing and enriching themselves, but the people never dared to resist, even if they resisted, it was ineffective. Therefore, the filthiness of government-run business is even worse than that of companies.In recent years, there has been no capital left in the country. Could it be that the government-run industries have lost eight or nine of them?Therefore, the people of our country sincerely do not want the current government to revitalize industry on our behalf. If it is more revitalized, the whole country will be barren in the ditch!

Thirdly, a joint stock limited company must rely on various agencies to complement it, and China lacks such agencies at all. The benefits of a joint stock limited company are different for people living in today's society. However, its biggest feature is that its stock becomes a kind of negotiable securities, which are circulated in the market, making finance active without stagnation.For ordinary enterprises, they must wait until their business is over before they can recover their original capital. (For example, if you open a shop with a thousand dollars, no matter how much profit you earn each year, you should pay attention to the children of the daughter. If you want to get back the original money, you must do so after the store closes.) This is not the case for stocks of joint-stock companies.If I buy it today, if I need cash tomorrow, or see it is beneficial, I can resell it immediately; even if I don’t resell it, but mortgage it in the bank, I can also get cash.Although the resale mortgage of stocks changes rapidly, the capital of the company's business is not affected by it at all.It is extremely flexible and flexible, which is not only convenient for the company, but also convenient for shareholders, and especially convenient for the finance of the whole society.Therefore, it directly and indirectly develops industries and is effective to Bo.The reason why this effect can be achieved depends on the support of two major institutions: one is the stock transfer company, and the other is the bank.Share Maoqian Company is the hub for repurchase and resale, and the bank is the tail end of the mortgage.The only thing that is disturbing is that at the beginning of the IPO, the reason why the stock can be distributed in the market is to use the stock to move the company and the bank as the medium.Today's China lacks these two kinds of institutions, so anyone who wants to start a company can only ask relatives and friends to carry out the campaign.More progress is to publish an advertisement in the newspaper, so that those who want to invest in the company can directly negotiate with the company.In this way, it is difficult to imagine that it is necessary to attract a large number of capital.As for the shareholders who hold stocks, they can only hide the bottom line. In addition to receiving a small amount of interest every year, they will not get back their old roots until the company is closed.If you want to resell the mortgage, you have to transfer it to your relatives and friends in order to ask people to communicate directly with me. Not only is it inconvenient, but you will suffer losses because of it.The reason why Fufu Co., Ltd. is a sharp weapon in today's production world is that it uses stocks as a commodity to make the capital of the whole society circulate like a wheel. (The things produced by the company are commodities, and the capital of the company is converted into commodities in the form of securities. Therefore, the land, houses, machines, etc. of the company have already made the capital fixed. In addition, at the same time, no one can take advantage of it. However, if its value is placed in the stock, it can suddenly become liquid and can be transferred to the mortgage. At the same time, most people can use a part of the company's fixed capital as new capital. Therefore, the effectiveness of social capital can be increased by hundreds of times. All securities have the effect of increasing the effectiveness of capital. Not only stocks, but also national bonds, local bonds, social bonds, etc., all have the same effect. Banks Exchange certificates, promissory notes, bills of exchange, checks, account books, etc. all have the same function. European and American countries have all kinds of sharp tools, and they can often use one capital for hundreds of capitals. This is why they get rich. Chinese people should know its reason and learn from its meaning.) Our joint-stock companies cannot play this role at all. This is the characteristic of joint-stock companies, and half of their strength is lost.It is the old people who hold capital, they would rather use it to run their own small business, or lend it to others to earn interest, rather than attaching shares of the company. This is also a major reason why joint-stock companies cannot develop.

[P.S.] Shareholding companies and banks are mostly founded in the form of limited shares in modern countries.Therefore, if the concept of non-share limited companies is a little popular, it is almost impossible for these two institutions to occur.Moreover, stock transfer companies are originally engaged in the trading medium of securities. If the company is underdeveloped, there are few stocks above the market. What is the purpose of the transfer?That is to say, in the banking industry, if you have to obtain all kinds of securities for safekeeping and collateral, you will not be able to use them well.However, if the joint-stock company is not developed, business will not prosper, and the banking business will not be able to expand.Therefore, the joint stock company and these two kinds of institutions are the cause of each other, and the effect of each other. (Actually, these two kinds of institutions are mostly organized in the form of limited shares, which are just one type of joint stock company. This feature has a unique role and is different from each other.) When talking about business, it is advisable to think about why it is built at the same time. .

Fourth, a joint stock limited company must have sound corporate capabilities in order to be able to handle it effectively, and there are too few people in China. Any enterprise that needs to be established in the form of a joint stock company must be a large-scale enterprise, and it cannot be carried out by the strength of one or two people.And since it is a large-scale enterprise, it is not a wife who can be in charge.Because the company's internal organs are complex, the larger the scale, the more arduous the affairs will be.It is not an exaggeration to say that it is easy to be the prime minister of a small country, but difficult to be the prime minister of a large company.To the outside world, the husband said that the competition in the world of survival in this world is more intense than the military. He does not have the common sense of survival and is rich in practical experience. Lost.Bai Gui said: "I ruled production because of Yi Yin's and Lu Shang's schemes, Sun Wu's use of troops, and Shang Yang's practice of law. Therefore, his wisdom is not enough to make changes, his courage is not enough to make decisions, benevolence cannot be given, and his strength cannot be guarded." Even if you want to learn my technique, you will never tell me about it." This was true in the era of Fu Baigui, but the phenomenon of today's livelihood is a thousand times more complicated than it was in the past, is it unprecedented?Therefore, most of the heroes in ancient times came from politicians and soldiers; today's heroes are mostly from the industrial world.Today, the towering industrial and commercial towns of various countries are all the top figures in the country.Our country has been lowly merchants since the past, and merchants have no other thoughts except sticking to their old businesses and caring about pennies.The scholar-bureaucrats despised the industry even more.There are only a handful of people in the country who can understand the outline of livelihood science and understand the nature of enterprises; if the husband has both knowledge and experience, and can apply it practically, there are almost no such people.Whenever a company is set up, there are about four types of people who are responsible for its management. The bottom line is that the promoters have no sincerity in the enterprise, and if they try to deceive others for self-interest, they will be responsible for the success of the company. The prime minister is also a fraudster.Those who are a little more advanced will appoint a big gentry, regardless of their sexuality and talents, but only use their name to suppress them (this has been the case in all provincial railway companies in recent years). The person who guards it will fill it up, and whether his talent and knowledge can be used for this career is too late to ask.The best one is to give someone who has a lot of knowledge and experience in the technology of this business to fill it in. It is too late to ask about his management skills and ordinary behavior. (If you want to run a railway, you should choose a railway engineer as the president; if you want to run a mine, you should choose a miner as the president; if you want to run an industrial company, you should choose a doctor of engineering as the president. When you are a prime minister, how can you see him? For example, the prime minister of a country does not need to use troops to punish Qiangu, and a person who leads troops to punish Qiangu, although he can be an official, does not dare to be a prime minister.) He is not no Desiring suitable talents, it is impossible to find them all over the country.In essence, the capacity of national enterprises is lacking.Husbands talk about industry as citizens who have no business ability, which is like a lame speech race, and a deaf speech.Therefore, companies established in recent years with meager capital and narrow scope may succeed, while those with slightly larger capital and wider scope rarely fail.Those who run China's inherent old businesses may be successful, but those who run new businesses in the world are rarely undefeated.Those whose careers cannot be competed by outsiders may be successful, while those with more intense competition are rarely undefeated.If the national enterprise's ability does not make progress in the long run, I dare to assert that: the more industry is promoted, the more the country's capital will be consumed, and the people of the whole country will be starved.

The above four ends are the direct reasons why China's joint stock companies cannot develop.If the indirect cause is even more difficult to count.And there is one reason in particular, which is the general obstacle of joint stock companies and private businesses, and the country's capital is exhausted.Everyone who is one year old must use it to provide food, clothing and housing for the whole body, as well as the needs of living and raising animals, and there is still a surplus, which can be stored as capital.And the amount of storage is the division between the rich and the poor in a country.Among the thousands of people in China today, not one can have this surplus.Those who exist, their numbers are extremely thin.And those who have capital may not necessarily be those who want to start a business.Those who have capital and want to start a business may not necessarily be able to start a business.And there is no financial institution that acts as an intermediary between capitalists and entrepreneurs, so even the thinnest capital cannot be used to support society.Therefore, no matter what form of enterprise, it cannot be established.The people of the whole country just wait for the starvation with tied hands.This is the reality of China's livelihood today.

Or say: Borrowing foreign debt can cure the disease of exhaustion of capital.This is the happiest way to say what is known today as the hero who understands current affairs.The impact of foreign debts on politics is not something I would like to comment on (see the article "Equilibrium on Foreign Debts"). If it affects the livelihood of the people, the matter is extremely complicated, and it is not possible to stick to a righteousness and lightly make arbitrary judgments. .Mostly in a country with good politics and well-developed education, all the direct and indirect organs for people’s livelihood are already in place, and the capacity of national enterprises is slightly enriched. The only thing that is lacking is capital. Here, foreign debts can often be obtained by means of irrigation. Receive miraculous effects (the United States, Japan is also.).Otherwise, foreign debts only benefit from their harm, not their benefits.If the financial institutions are not prepared, even though foreign capital is widely imported, this capital has no way to enter the hands of entrepreneurs for their use, and it will only be used for the consumption of a few people, directly and indirectly leading to a country's luxury. The country has been trapped in poverty.If the people do not have a sense of public responsibility and focus on the lack of corporate capacity, all businesses they operate will fail, throwing capital in a place where it cannot be restored, and the country will be trapped in poverty.Therefore, those who say that foreign debt can be used as a guide to revitalize industries still do not think about the root and pay attention to the end, which is not clear. But what is the reason for China's desire to revitalize industry?Said: Firstly, it is necessary to establish a constitutional system of government, to govern the country by law, so that the people can get used to the state of law; secondly, to establish an educational policy, to cultivate public morality, and to make the sense of responsibility develop day by day; secondly, to establish the necessary organs of the enterprise,—— There is no shortage of preparations; secondly, various methods are used to embed the capabilities of national enterprises at any time.One of the four is not mentioned, and the words of revitalizing the industry are all talking in dreams.However, the three things of raising public morality, organizing institutions, and rewarding ability cannot be achieved without good politics, so the former thing is also the mother of the latter three things.In the past, someone asked Napoleon about the technique of victory, and Napoleon replied: one is called gold, the second is called gold, and the third is also called gold.Some people ask me where to start with the first principle of revitalizing China's industry?I must answer: Improve the political organization.But where does the second meaning come from?I also replied: improve the political organization.But where does the third righteousness come from?I can only answer: improve the political organization.If the political organization can be improved, then all those who should be promoted will be listed accordingly; if the political organization cannot be improved, one more thing will be more harmful, and it is better to abolish it than to promote it.But what about the so-called reform political organizers?Said: That's all for the Congress, and that's all for the responsible cabinet. In today's China, if the industry is not revitalized, within three years, the whole country will go bankrupt, and more than half of the 400 million people will starve to death.I have said it repeatedly, and many people in the country have seen it.Considering the competition for business now, but for the chronic disease that hinders business, we do not go deep into the source but think about how to get rid of it. The so-called revitalization of business is a suitable means of speeding up the bankruptcy of the country.If the people of our country hadn't read the news so thoroughly, discerned it clearly, worried deeply, and rescued it bravely, I would have seen my father, brothers, nephews and uncles, who were not as good as Wu Min, and they all died in the ravine.Alas!My mouth is full, my tears are exhausted, my father, brother, nephew and uncle, have they heard about it and moved their hearts?