different warring states of japan

Chapter 1913: Associations about the Spurs Fed

Yiyin was speechless and laughed.

During the Wenjing period of the Han Dynasty, many years of rest and recuperation resulted in a treasury that was so full that it could only be accessed and left. The ropes on which the copper coins were strung were rotten, and the coins were scattered all over the ground.

What seems to be a beautiful scene of peace and prosperity is actually an economic state that is extremely troublesome for those in power.

Money is only money when it circulates. If it is piled up in a warehouse and becomes rusty, it is just a pile of junk. Not only can it not create value, but it will passively create deflation due to the reduction of currency in circulation.

Just because of the lack of more investment channels in ancient times, the Han Dynasty, as the first unified dynasty, had never experienced such a mess and was helpless about it.

In the end, the Han Dynasty solved this problem, and the method was very simple, that is, to launch a war. As long as the war started, all the gold and silver would be spent on you.

Emperor Wu of the Han Dynasty had been on war for decades. The treasury of the Han Dynasty was empty, the people were taxed heavily, and the economy almost collapsed.

But from an economic perspective, the deflationary trend during the Wenjing period was also broken, and the Han Dynasty entered a new period of prosperity.

The current situation in Kanto is exactly the opposite of the rule of Wenjing.

Generally speaking, the initial period of peace when production is restored after a war should be the most active emerging period for capital.

Opportunities are everywhere and funds are needed everywhere. This is a golden age where as long as you work hard, you will be rewarded.

After peace, developing new land and expanding reproduction will require a lot of investment, and capital should be in short supply for production and reinvestment.

But the dilemma of the capital of the Guandong Wu family is that they just have some money and food in their hands, but they can't find effective investment channels to spend it.

The Kanto Warriors fought a hundred years of war and were completely destitute, but the Kanto Buddhist sects also accumulated hundreds of years of capital. The Poor Warriors did not mean that the nuns were poor.

Because of the emergence of the Samurai Giri Promotion Association, a charitable financing institution, the capital of the Kanto Buddhist sect, headed by Kamakura Gozan, has long occupied high-quality investment channels such as water conservancy, relief, and study abroad.

The powerful sect capital can accept an annual interest of 5%, lend a large amount of capital, help Guan Bazhou resume production, and then sell the saint as a favor.

As for the Kanto Warrior Capital, which just had some extra money in their hands, they were eager for higher returns, but they couldn't find an opportunity to invest their money and food.

The traditional nine-out and thirteen-out return is equivalent to a monthly compound interest of 13%, and the annual interest is astonishing. There are low-interest loans with an annual interest rate of 5%, so you would be a fool to borrow a high-interest loan with an annual interest rate of 5%.

This created a ridiculous situation in the Kanto economy where sectarian capital was active and Wu family capital was stagnant.

As the head of the Wu Family Giri Promotion Association, Ozo Changan is very aware of all the changes. No one understands the capital operations of Kanto better than her.

So when the sage asked about the source of new funds, he happened to enter Dazang Changan's comfort zone, making her extremely confident and able to talk freely.

“Sage, although the corruption case has had a negative impact on the image of the Wu Family Giri Promotion Association, there is actually no shortage of new capital in the land of Kanto.

The Buddhist sect has accumulated a mountain of wealth and is willing to provide low-interest loans to the Wu Jiayi Principle Promotion Association to increase the value of the Wu Jiayi Principle Promotion Association, benefiting themselves and others.

The Daimyos of the Wu family have struggled out of the quagmire of war in the past few years. The Wu family's moral promotion association has assisted in restoring production in each territory, and the fiscal revenue has continued to reach new highs.

A powerful vassal like Uesugi Takeda Hojo with a mobilization power of millions of stones, once the war stopped and recuperated, it only took a few years to start worrying about the moldy food in the warehouse.

The poor suddenly became rich, and they only stared at Brother Kong Fang, looking down on the small profits from low-interest loans.

With the rich material volume of the land of Kanto, as long as the saint raises the capital in the hands of the Kanto samurai and transports it to Sakai Port, the market confidence in Sakai Port will be restored immediately before the materials arrive. "Behind the currency is physical supply, and the pressure for depreciation comes from the imbalance of supply and demand. As long as it is certain that food stamps can be exchanged for enough supplies, everyone will still make a profit.

It is easier to go out with a few fluffy food stamps than carrying a sack of rice and dozens of kilograms of copper coins.

As long as everyone dares to hold food stamps with peace of mind, the food stamp crisis will naturally pass. This is called confidence being more important than gold.

From Dazang Changan's explanation, Yiyin finally understood the current situation of Kanto Capital.

The war in Guandong has lasted for hundreds of years, and all industries have withered. But in terms of foundation, there are still three pounds of nails to break a ship, let alone the land of Guandong with its vast plains.

The Buddhist sect has strong capital and financial resources. What they consider is stable appreciation. It doesn't matter if the interest rate is lower, since their base is high anyway.

If you invest one million stone, with an annual interest of 5%, you will get a return of 50,000 stone a year.

Therefore, they are willing to invest in the Wujia Yili Promotion Association, which is guaranteed by the sage's credit, just like a low-risk investment such as buying a national debt deposit in modern society, which emphasizes capital preservation and appreciation.

The mentality of the Guandong Wu family capital is exactly the opposite. Because of the years of war, everyone has little money in their hands. After several years of peace, they have saved tens of thousands of dan.

If you ask them to invest with an interest rate of five years, earning 500 shi from 10,000 shi is not enough to fill the gap between their teeth. Of course they are not willing to do so. There are only a few chances in life, and what they want is high risk and high return.

It was because Ozo Changan was keenly aware of this that he suggested to the sage to raise capital from the Kanto samurai family to invest in Hokurikudo trading route stocks.

The stock appreciates, Guandong Wujia Capital makes huge profits, and food stamps continue to flow into the stock market, which is a reservoir, reducing the risk of runs. This is a win-win situation.

Yiyin nodded.

No wonder Ozo Changan wants to wait until the stock price drops even lower before entering the market. Only when the stock price is low enough and affordable can it rise high in the future and satisfy the Kanto Samurai capital's desire for rapid appreciation.

Now that he was interested in Daizang Changan's proposal, Yoshihiro began to wonder which Kanto samurai lords should raise funds to speculate in stocks in Sakai Port.

While he was thinking about it, a thought suddenly popped into Yiyin's mind, making his heart beat suddenly faster.

He remembered a famous existence in his previous life, the Federal Reserve, and then came up with a beautiful idea.

The ins and outs of the birth of the Federal Reserve are somewhat similar to the current situation of the Spoel family.

In the 18th and 19th centuries, with the westward expansion movement, the gold rush and other economic activities, the railway industry in the New World flourished.

Investors who participated in railway construction in the early stages made a lot of money, attracting countless followers to join in, and raising railway stocks to the sky.

But everything has its limit, and the rate of return from railway development became increasingly lower as development became saturated, eventually leading to an economic crisis.

A large number of banks went bankrupt and panic caused social unrest. Finally, the leaders of the New World began to think about improving the financial system. This is how the federal savings system was born.

But now, Yi Bank is facing the situation that after years of development on the Hokuriku Dou trade route, the logistics market demand is saturated, and the stock price is high. Eventually, the bubble burst, leading to chaos in Sakai Port and a food stamps run crisis.

From this point of view, it is really similar to the situation before the establishment of the Federal Reserve. So, do you want to establish a joint savings system belonging to the Sparr family, the Sparr Federal Reserve?

(End of this chapter)