Cutting 1719

Chapter 385 Gold and Silver Standard System
Although a large amount of silver flowed into China after Longqing, causing silver to become a currency in circulation instead of copper coins, its own transactions became more cumbersome and even had many disadvantages.

Before that, copper coins were used in people's daily transactions. Although there were various problems in casting, copper coins were a standard currency after all, and the unit was small enough to circulate relatively conveniently.

On the contrary, the later silver trading itself was divided into official silver and private silver. The standard unit of official silver is one tael of silver, but its purchasing power is quite large, so it will be troublesome to find change when buying a small amount of things, so it appeared The so-called broken silver means that after shopping, you need to use scissors to cut silver corners, and then weigh them.

This transaction method itself is quite cumbersome, and private silver is even more troublesome, because in private silver, lead with a similar color is often cast to increase the weight in order to make a profit, which will also make many people cut it open to check before using silver. , It also caused the weight of the silver to become smaller and smaller, and the whole process needed to be re-weighed, and the cumbersomeness increased a lot.

As a person who has used the currency of the later generations, Ning Yu naturally scoffed at this transaction mode, so he had the idea of ​​changing it very early - but before Ernst came, he could not act rashly.

"Ernst, if I let you lead the matter of financial reform, what are you going to do?"

Ernst had a bit of excitement on his face. In his opinion, this belonged to the emperor's great trust in him, so he bent down and saluted: "Thank you for your trust in me. In fact, before making a decision, I need to tell your majesty something. The thing is that the current British Empire has completely abandoned silver coins, which is a very important signal, and I believe that if the empire insists on using the silver standard system, it will suffer a lot in future overseas trade!"

Before Ning Yu could react from the news, Ernst took out a golden gold coin and a shining silver coin from his pocket, and presented them to Ning Yu.

After Ning Yu took the gold and silver coins, he found that the workmanship of these two coins was very good, and the appearance was neat and beautiful.

On the gold coin is a head portrait of a woman. According to Ernst’s introduction, this gold coin is a Guinea coin minted and issued in 1703. 8.35 grams, gold content 0.917.The silver coin is a Krona silver coin minted in 1696. On the front is the right laurel image of William III, and on the back is also the cross emblem and the year.

While looking at the gold and silver coins, Ning Yu thought about what Ernst said. He knew that even though the gold and silver standards were abolished in later generations, in this era, gold and silver are still a kind of natural currency—it’s just that the experience in this Ning Yu didn't know about the history of it.

As for Ning Zhongjing and Dong Lin at the side, they were even more confused.

"Ernst, you said that the British gave up the silver standard system. What is the reason?" Ning Yu gently played with the delicate silver coin, with deep doubts on his face.

Ernst did not answer directly, but took out another gold coin from his pocket, handed it over, and whispered: "Your Majesty, all the secrets are in this gold coin."

Ning Yu took the gold coin and found that it was no different from the previous Guinea gold coin. The doubts in his heart deepened, "Ernst, just tell me directly, what is the mystery here."

Ernst said respectfully: "The reason why Britain abandoned the silver standard is related to a great scientist, that is, Sir Isaac Newton, who proposed the gold standard system when he was the Director of the British Mint."

Naturally, Ning Yu would not feel unfamiliar with such a great man like Newton, but his past knowledge of Newton was all reflected in physics, but he didn't know that this great man had such an experience.

"In fact, in the last century, the currency in circulation in Britain was mainly silver coins, and gold coins were rarely used. At that time, a gold coin was equal to a pound of silver. However, during the War of the League of Augsburg, the British In order to pay for the huge military expenditure, the people lowered the fineness of silver, and then re-issued new coins."

Hearing this, even Ning Zhongjing and Dong Lin understood it. They were no strangers to the operation of adding other things to the silver.

Ernst continued: "After the British minted this batch of low-quality silver coins, they used them to pay their military debts. In essence, they plundered the wealth of the people. Of course, this practice did not hide the truth from the people. These silver coins were replaced by gold coins, which caused the value of the krone silver coins at that time to plummet."

"Because of this operation, the price of gold in the market rose rapidly relative to silver coins in the short term, and the amount of silver in circulation was further reduced, so that the British government had to mint and issue new silver coins again in order to ensure the stability of silver coins. value."

When Ning Yu heard this, he probably had some understanding in his heart, and asked in a low voice: "When a large number of gold coins and silver coins appear in the British market at the same time, will there be a big change in the price ratio?"

"Your Majesty is indeed a genius!"

Ernst showed admiration on his face. He squeezed the gold coin and said softly: "Sir Newton made a big mistake at the time. When formulating the gold-silver ratio, he set the price of gold too high. And silver was set so low that there was a very serious phenomenon."

"A large amount of silver coins were cashed out?" This time it was Dong Lin, Minister of the Ministry of Finance who spoke, and he had fully understood Ernst's meaning, and his face was a little dignified.

"Master Dong, you are indeed extremely intelligent!"

After touting it again, Ernst explained with a bit of emotion: "The gold-silver exchange ratio in Britain at that time was not in line with other European countries, so many people exchanged gold coins from other European countries and then went to the UK to exchange gold coins. Silver coins, seeking the difference in the middle, and a large amount of silver was lost to China at that time, so that Britain fell into a situation where there was no silver to mint, and Sir Newton’s silver coin recasting plan was declared bankrupt.”

After hearing this, Ning Yu had already fully understood, and sighed, "So, in this case, Britain completely gave up the silver coins, and instead made every effort to protect the gold coins, right?"

Ernst nodded, "That's right, after this matter was over, Sir Newton proposed to the Parliament to completely abandon the gold and silver bistandard system, adopt the gold standard system in an all-round way, and set the price of gold at £3, 17 shillings and 10 pence per ounce."

"However, today's Great Chu adopts the silver standard system, but does not have a large amount of silver mines. If large-scale maritime trade with the West is carried out, this is a very dangerous thing in itself! Not only can Great Chu not control the currency, but it has It may be controlled by European countries and lose a lot of seigniorage!"

Ning Yu has completely understood what Ernst meant, that is, when China has a large amount of silver and implements the silver standard, but does not have sufficient silver mining rights, it will force people to exchange a large amount of physical wealth for silver, which will make A large amount of physical wealth created by the Chinese people gradually flowed into Europe.

The more dangerous point is that under such circumstances, the European countries that control a large number of silver mines and the American silver mines they control have essentially become China's central bank, which not only makes China lose control over the currency, but also loses A huge amount of seigniorage, that is, the difference between the face value of the coin and the cost, was paid.

On the surface, China today has a huge surplus in trade with the West, but what it actually gets is the so-called silver. This seemingly scarce silver mine is not so precious in the world, and almost all of it is used by the West. People were transported to China to earn benefits in kind, that is, a large amount of porcelain, silk, tea and other real objects.

Especially in later generations, with the establishment of the European gold standard system, China suffered a lot because of the silver standard system.Because China implements the silver standard system, the demand for silver is almost endless, while Europe adopts the gold standard system, resulting in a large difference in the ratio of gold to silver between the two sides.

With the rapid increase of the silver output controlled by Europe, the depreciation of silver is getting faster and faster, which also makes gold more and more expensive. Therefore, Europeans transport a large amount of silver to China in exchange for gold, which makes China's gold continue to flow to China. Europe has caused severe inflation in China.

Ning Yu, who had figured everything out, could only sigh softly at this moment, and said in a low voice: "Ernst, I understand what you mean, but Da Chu doesn't have many choices today."

Although Ning Yu also knows that most countries in later generations have adopted the gold standard, Ning Chu does not have sufficient gold reserves to complete this plan, so the silver standard is actually very difficult to shake, at least in East Asia. of.Financial reform can only be based on the silver standard.

Ernst had a smile on his face, "Your Majesty, there is a saying in China that you can't become a fat man in one breath, and you can't do financial reform in one go. In fact, Da Chu can implement the gold and silver bimetallization system, casting standard Gold coins and silver coins, to anchor the current currency, can also earn a certain amount of seigniorage."

"Coin minting is feasible"

Ning Yu looked at the gold and silver coins in his hand, and he had some thoughts in his heart. In fact, after the establishment of the new dynasty, the issuance of new coins was originally what should be done, but there are still many problems that need to be solved, so he looked at En ster.

"Ernst, if I appoint you as the director of the Great Chu Minting Committee to fully lead the minting, would you be willing?"

"Thank you, Your Majesty, for your trust! I will definitely not disappoint Your Majesty's expectations!"

Ernst was somewhat delighted. Although he was a bachelor and an earl in name, these were more of an honor. He was only an advisor to the emperor and had no actual errands. Therefore, the Mint Committee was a A true ministry, like Sir Isaac Newton, has great power.

Hearing Ning Yu's words, although Ning Zhongjing and Dong Lin had some differences in their expressions, they were not too surprised. After all, this Westerner was the only one who could explain this well. up.

Besides, a director of the minting committee is nothing more than a conspicuous person.

Although Ernst did not expect that Ning Yu would let him lead this matter, the relevant preparation materials have been prepared, and he said softly: "Your Majesty, among the Westerners who came to Dachu this time, There are several people who are experts in this field, so please allow me to include these people in the Minting Committee."

"Sure, all the people included in the minting committee will be given the position of fifth-rank officials." Naturally, Ning Yu will not get stuck in this regard, as long as he can do things, he will give them all to the official position.

Ernst said softly again: "Your Majesty, to issue new coins, you need a mint, supporting machines, and a lot of manpower—but most importantly, you need a bank that issues currency."

"bank?"

Ning Yu's brows stretched a little. He had actually started to operate this set before, "The bank is not a problem. The Dachu Central Bank is already in the preparation stage. It just needs Ernst you to assist in coordinating, so that it can be completed in the shortest possible time. Of course, it will also become a central bank with the right to mint coins under the supervision of the Dachu Banking Regulatory Commission.”

"Your Majesty, this is the Central Bank of Dachu."

Ning Zhongjing frowned slightly. This was something he didn't know very well, and he didn't know when the so-called bank and what committee were established. Obviously, the emperor bypassed the cabinet again and did it alone. These things.

Ning Yu smiled awkwardly, and then changed the topic, "The chief assistant is diligent in political affairs every day, and I didn't mention Ernst about these trivial matters. In my plan, in the future, in addition to the Central Bank of Dachu, there will be more There will be some other types of banks, such as commercial banks and investment banks, to complete the financial restructuring together, and they will all be under the supervision of the China Banking Regulatory Commission.”

"Your Majesty's move is very appropriate. In the follow-up related plans, I will come up with a more detailed plan." Ernst had a smile on his face.

"good."

Ning Yu nodded lightly, then looked at the krone silver coins in his hand, and said with a smile: "Just casting gold and silver coins is not enough, at least for the common people, it is destined to be difficult to use in daily life, so it needs to be In addition to gold and silver coins, copper coins were minted to completely replace copper coins."

In essence, casting copper coins is similar to copper coins, but Ningyu aims to unify the currency system, so the messy copper coins on the market now cannot meet the demand, and more uniform and exquisite copper coins are needed to replace the role of copper coins in the market.

"Your Majesty, the relevant sample coins will be minted as soon as possible and presented to His Majesty at that time." Ernst said humbly and respectfully.

"However, you have to remember one thing. Minting coins must not only control the manufacturing cost, but also ensure their exquisite appearance and be able to circulate in the market. This step is very difficult. I am looking forward to your results."

Ning Yu clasped the gold and silver coins in his hand, with a look of anticipation on his face. He understood the role of financial hegemony quite well. If these coins could be circulated to the whole country, and even the whole of Asia, through coinage, what he could bring The benefits to come are quite exciting.

　The author's main business is e-commerce - so these days there will be one update, and after the end of 618, the double update will be resumed, please understand.

　　
　
(End of this chapter)