Prime Minister

Chapter 417
Zhang Yue spoke dryly, but saw Han Qi, Zeng Gongliang, and Ouyang Xiu, the three prime ministers, as if they were listening to a scripture.

On the contrary, Zhang Yue felt a little lost.

Even with the expressions of the three prime ministers, isn't my knowledge too advanced?

In fact, to change the concept, the United States established the Bretton Woods system after World War II, and established a fixed exchange rate of 35 US dollars to an ounce of gold.

This is also known as the gold-backed system known as the gold standard.

In fact, the salt banknote is the salt standard system with salt as the reserve.

The price of a salt banknote officer is six pegs and US$35 to an ounce of gold, both of which are fixed exchange rates.

But the collapse of the salt money is exactly the same as the collapse of the Bretton Woods system.

When the U.S. dollar is used as the national currency, there is no problem with a fixed exchange rate, but when it becomes an international currency, the circulation increases, and the problem arises. The issuance of U.S. dollars increases every year, but the gold reserves decrease every year. Finally, the gold standard with a fixed exchange rate has to be abandoned. The system was changed to bind oil to the U.S. dollar.

Salt in the Song Dynasty was equivalent to oil.

Historically, when Lu Dazhong and Lu Huiqing were in charge of the Northwest, the price of salt bills rose sharply and then plummeted. Both of them took tough measures to restore the six-seat exchange rate.

Lu Dazhong issued a large number of salt bills to curb the skyrocketing salt bills, that is, using money to power money.

Lu Huiqing forcibly stipulates that anyone must buy and sell according to the face value of the salt money, otherwise it will take two years.

Only Qiu Boyu advocates competing for profits with merchants, the market price increases and decreases everywhere, and the transportation company raises and lowers the denomination of salt bills, so that you are not allowed to speculate in buying and selling.

However, these reforms were all unsuccessful, because these methods were all insignificant, and the method of circulation, including Qiu Boyu's method of increasing and decreasing prices, also failed, because the government was naturally insensitive to market prices.

Therefore, the only way out is to work hard on monetary policy and currency liquidity, but only a floating exchange rate is the only way out.

Han Qi waited for a long time to listen, and he knew immediately if the officials below had something to say.Although he couldn't understand Zhang Yue's words, there were indeed rules in them.

So Han Qi looked at Zeng Gongliang.

Zeng Gongliang is not only good at Confucianism and official affairs, but also superior to Han Qi and Ouyang Xiu in economic security.

But he did not expect that Zeng Gongliang also had an expression of ignorance. He pondered for a moment and said: "The words of Judge Zhang, I think about it, the most important thing is one sentence, money can be money!"

Banknotes can be coins!

Zhang Yue immediately said: "This is exactly what the next official wants."

Zeng Gongliang asked: "If salt banknotes are used as currency, so that prices go up and down, if the banknotes are expensive, the merchants will not be profitable, and if the banknotes are cheap, the court will have no salt to exchange, what should I do?"

Ouyang Xiudao: "If salt banknotes cannot be used as currency, it is only necessary to allow traders to only buy from the public, not to sell privately... According to the method prescribed by the judge, the private circulation is not allowed."

Zeng Gongliang frowned and said: "This benefit has already been exploited, so it cannot be blocked. But return to the method of leveling. In the future, the price of banknotes will be more expensive than ten guan, and the salt banknotes will be sold by the Capital Salt Institute. If it is lower than six guan, the capital will be ordered Salt Court repurchases."

"But who will issue the banknotes? Who will issue the money?"

Zhang Yue nodded his head, which was his intention.

Although the equalization method is a floating exchange rate, it still maintains a price range, which requires the imperial court to have strong economic regulation capabilities.

Ouyang Xiudao: "If the method of equalization is used, the price of banknotes is more expensive than ten guan, and the imperial court has enough salt banknotes to lower the price of banknotes, or if the price of salt banknotes is lower than six guan, the imperial court has enough money to buy back. Impossible?"

"But the Third Division and Shaanxi Yunsi..."

Cai Xiangdao: "The court's expenses are already stretched. If such a large sum of money is not used on a daily basis, is it possible to put it in the Capital Salt Court?"

Zhang Yue nodded. Indeed, history has proved that neither court could do it!
The Duyanyuan established by Fan Xiang cannot be suppressed when the price of banknotes is high, and cannot be raised when the price of banknotes is low.I have never heard of such a thing, even if there are more foreign exchange reserves, I dare not do it.

Zhang Yuedao: "The Exchange is short of money and salt banknotes, so the price of salt banknotes is determined based on the relationship between supply and demand. When there are many people buying banknotes, the Exchange will raise the price and continue to sell salt banknotes to stabilize the banknotes." The price is fixed, and the price difference is set, and each seat of salt banknotes sold can get [-] coins. When there are many people selling banknotes, the stock exchange will lower the price and continue to buy back salt banknotes to raise the price of banknotes, which can also earn handling fees. "

Zeng Gongliang's eyes brightened and he said: "Firstly, the circulation of salt banknotes is limited with a price difference of [-] Wen, and then the supply and demand are met at a floating price. In this way, no matter whether the price of banknotes is high or low, the imperial court will have a steady stream of money. It’s really the way to make money without losing money!”

"Great! Really smart!"

Among the three prime ministers, Zeng Gongliang, who is the most economical, nods in praise as if drinking wine.

Han Qi, Ouyang Xiu, Cai Xiang, etc. also nodded frequently. Not only did they understand, but they also realized the wonderfulness of this intersection.

"I have been in the Zhengshitang for many years, and the old and young people in the Zengtang have such praises." Han Qi said.

Zeng Gongliang smiled.

Ouyang Xiu looked smug, but suppressed his joy and said indifferently: "But as it happens, it's thanks to Cai Gong and Deputy Envoy Fan for his guidance."

When Zhang Yue heard what Ouyang Xiu said, he immediately understood that he was teaching you to be an official.

Cai Xiang and Fan Shidao smiled slightly, but said nothing.

Han Qi pondered for a while, then pinched his beard and said, "At first, I thought this exchange office was a way to collect money and make huge profits. Even if I got money, it would arouse public resentment and harm people's hearts. But now, it seems that It is beneficial to the people's livelihood of the country."

After a pause, Han Qi asked: "Duzhi, I don't understand. Salt is the foundation of the country. Once the imperial court loosens the price of banknotes, what should we do if the salt banknotes skyrocket in the future?"

"No need to say that, the old man is not asking questions, but asking you for advice?"

After Han Qi finished speaking, he laughed to himself, and all the chief executives also laughed. Although Han Qi seemed to be joking, it was already a first-class compliment.

Zhang Yuedun felt like drinking honey water in his heart, and his whole body was healthy.He didn't expect that Han Qi, who was always domineering, would put down his airs and use the word "ask for advice" in front of him today.

Now with the unanimous approval of Han Qi and all the ministers, Zhang Yue became more cautious, fearing that he would not be able to control himself for a while and get carried away.

Zhang Yue said: "Han Xianggong speaks seriously, and I will never dare to be an official."

Han Qi waved his hand, and said leisurely: "I have been an official for many years, and I have traveled to many places. I have seen many people suffering from famine. When rice prices are cheap, they usually pay twenty or thirty Wen a bucket, but in times of disaster, people from poor families have to sell their rice. If you sell your sons and daughters for a bucket of rice, it is worth a life."

"It's the same with the price of salt nowadays. A small family can't save enough to store a bucket, and the price of salt is so high that even the Queen Mother was alarmed and asked about it in person."

Han Qi said: "You said that the imperial court let go of the salt banknotes, so that the salt price skyrocketed and plummeted?"

Zhang Yue was going to come up with the classic saying "There is an invisible hand", but he felt that history has proved that this hand is really unreliable and often moves around.

Therefore, Zhang Yue finally had no choice but to say honestly: "Report to Mr. Xianggong, I'm afraid I can only do my best!"

Zhang Yue thought, did he fail in the end?

However, Han Qi nodded, got up and paced for a while, and said to several ministers and Cai Xiang: "Well, there is no perfect method in the world, let this young man try for a few more days, what do you think?"

(End of this chapter)