Legend of the Magnate Episode 7 Recap
> Legend of the Magnate Recap
Gu Pingyuan formally began his work at Wang Tiangui's Taiyufeng Pawnshop. The Head Manager and Second Manager immediately questioned if he had any prior experience in the pawn business, to which Gu Pingyuan honestly replied that he had none. They mockingly proclaimed him a "genius" and introduced him as the new Fourth Manager, giving him no specific duties and intentionally making him feel unwelcome. Despite being openly ridiculed by the other staff, Gu Pingyuan remained calm and quietly observed everyone.
Meanwhile, Li Qin and Su Zixuan arrived in Pingyao. Su Zixuan felt it was necessary to present a gift to the county magistrate, but Li Qin dismissed the idea, confident that with the Li family's influence, their new draft bank and pawnshop would be established in Pingyao within three months.
He boasted about placing a huge silver gourd in front of their shop to attract wealth and planned to acquire nearby properties for a large draft bank, believing his family's full support would easily outdo the local businesses. Su Zixuan, however, reminded him that Pingyao, though not a large city, was the financial hub of the Qing Empire, and challenging the 200-year-old local "Eight Families" might prove more difficult than he imagined.
After finishing work, Gu Pingyuan went to visit Chang Si in jail, bringing him a meal prepared by Chang Yu'er. Chang Si was surprised to see the improvements in his cell, which now had new cabinets and a portable stove. Gu Pingyuan revealed he had traded his own freedom for these comforts, explaining that Wang Tiangui had given him 30 days to reorganize the pawnshop in exchange for Chang Si's and Chang Yu'er's safety.
Chang Si worried, knowing that Wang Tiangui himself, despite being the owner, had been unable to assert control over the long-serving appraisers his father had trained. Gu Pingyuan, however, was resolute, declaring that while "different trades share the same principles," he would crack open the pawnshop's "iron walnut" no matter the cost. One day, a grave robber brought an ancient-looking jade to the pawnshop, claiming it was a Shang and Zhou dynasty family heirloom and demanding 500 taels of silver.
The Head Manager, a veteran appraiser, instantly recognized it as a recently crafted fake that had been artificially aged by being placed inside the abdomens of animals. He publicly exposed the man's deceit, smashed the jade, and drove him away, citing the Great Qing Legal Code's severe punishment for grave robbery. When Gu Pingyuan arrived, the Second Manager taunted him for being late.
Gu Pingyuan ignored the hostility and asked a junior staff member about the Fourth Manager's typical duties before requesting to see the previous years' ledgers, only to be told they were kept upstairs. Later, General Bao Qingde, under the Marshal's command, arrived at the pawnshop to pawn his waist sword and an Imperial Yellow Jacket for 500 taels to pay his soldiers, who hadn't received their military funds for six months.
The Second Manager initially dismissed him as a fraud and tried to have him thrown out, angering Bao Qingde. The Second Manager then pushed Gu Pingyuan forward to handle the irate general. Gu Pingyuan recognized Bao Qingde and, understanding the dire situation, not only agreed to pawn the items but insisted on giving him 1,000 taels of silver, confirming they were banknotes from the Four Major Banks, accepted nationwide. The other managers were furious at Gu Pingyuan's generosity.
The enraged Second Manager ordered Gu Pingyuan to be confined to a room to "cool down," and the Head Manager later announced that the pawnshop would close for business the next day. Confined upstairs, Gu Pingyuan diligently reviewed the past account ledgers. A sympathetic junior staff member named Jin secretly brought him a meal, revealing that the Head, Second, and Third Managers had closed the shop and gone to resign to Wang Tiangui.
Wang Tiangui, who had married several wives but still had no children, was frustrated by gossip about his inability to produce an heir. Gu Pingyuan went to see him, acknowledging he had been "kicked out" by the appraisers. He suggested Wang Tiangui accept their resignations. Wang Tiangui explained that the managers were influential figures in the pawn industry, and their departure would be a significant loss.
He predicted that the managers would take 20 to 30 days to fully transition, and during that time, Gu Pingyuan would find it even harder to gain a foothold. Gu Pingyuan confidently countered that he would sort out the pawnshop in much less than 30 days and ensured the Head, Second, and Third Managers wouldn't be able to leave even if they resigned.
Gu Pingyuan then sought out Li Qin at his Wanyuan Pawnshop, admitting he had been "kicked out" of Taiyufeng. Despite Li Qin's father's warnings against associating with Gu Pingyuan, Li Qin, captivated by the idea of "beating experienced masters with amateur tactics," agreed to collaborate. The two set up a "city gate pawn stall" in Pingyao. Li Qin dramatically displayed large chests of silver from his draft bank, inviting people to pawn their belongings and promising the highest prices.
He also offered high-interest savings accounts with rates 1. 5 points higher than other local draft banks. This initiative quickly drew a large crowd, with many redeeming their items from Taiyufeng and pawning them at Wanyuan for a higher profit, then depositing the money into Li Qin's draft bank. The Taiyufeng managers were initially dismissive, finding Li Qin and Gu Pingyuan's "overpaying" strategy laughable.
However, the Head Manager soon realized the gravity of the situation as Taiyufeng's shelves emptied and funds were withdrawn from their associated draft bank. The Head Manager ordered his staff to transfer large amounts of silver every two hours to their own draft bank to counter the drain, defiantly stating that he would not let "amateurs" outcompete professionals.
As their city gate stall became overwhelmed with goods, Gu Pingyuan proposed extending their services to the surrounding villages, calling it "door-to-door pawning." In the capital, Li Qin's father, Li Wantang, expressed concern upon hearing about his son's collaboration with Gu Pingyuan, fearing that the two "amateurs" would eventually turn against each other, even as he acknowledged their surprisingly inventive methods. The managers of Taiyufeng, seeing their pawnshop shelves and draft bank vaults empty, summoned Wang Tiangui.
They retracted their resignations, admitting they would have no prospects if they left now. They blamed Gu Pingyuan, calling him a "black sheep" who had stirred up public outrage by overpaying for goods and offering exorbitant interest rates, emptying all the pawnshops and draft banks in Pingyao. They urged Wang Tiangui to use his influence with the county magistrate to stop him. Wang Tiangui, however, rebuked them for their outdated business practices, comparing their methods to "waiting for death."
He pointed out that Gu Pingyuan was profitable despite offering better terms, while they, with their "blood-sucking" business model, were failing. During their meeting, a staff member announced that General Bao Qingde had returned to redeem his sword and Imperial Yellow Jacket but refused to do so unless Gu Pingyuan was present. Wang Tiangui sent the staff to find Gu Pingyuan at his Wanyuan operation. He then looked at his managers, reflecting that they, who had "hunted eagles all their lives," were now being "pecked in the eyes by an eagle."
