Daming: Old Zhu, we agreed not to rush!

Chapter 358 Reserve System

"Mr. Su, isn't this bank crucial to the issuance of banknotes?"

Zhu Xi asked Su Jing.

Su Jing nodded and said: "That's right, money houses, or should be called banks, are important institutions that unify and balance paper money, silver ingots, and copper coins."

"Issuing banknotes is not a simple act. There are too many things that need to be paid attention to behind it."

bank?

Zhu Xi frowned and asked, "Mr. Su, why do you call the bank a bank? Isn't a bank a business of making silverware?"

This time it was Su Jing's turn to be stunned. He really didn't expect that banks still had this meaning in ancient times.

"Um... Well, this is just a title. Although gold and silver can be used as currency, silver is obviously used more. It can refer to money. Bank is an industry. The meaning of bank is the money industry."

Su Jing quickly made up for herself, feeling a little embarrassed.

Fortunately, Zhu Xi didn't bother with Su Jingduo about this matter. It was just a title, not that important.

"Mr. Su, according to your statement, the bank is very important, so the bank must be managed by the government, and only the government can make people trust like this."

Zhu Xi said to Su Jing.

Su Jing smiled and said: "That's not necessarily true. In the last years of the Yuan Dynasty, would there still be people who would trust the government and the court?"

"In the end of the Yuan Dynasty, private banks were much more reputable than those of the imperial court. After all, the silver stored in the imperial bank could be requisitioned at any time."

Zhu Xi nodded and said: "Sir, what you said is true, but now that the Ming Dynasty is prosperous and the people live and work in peace and contentment, the imperial court is still very reputable."

For Daming, Zhu Xi has strong confidence.

In most dynasties, the early stage is often a period when the people live peacefully. Maybe the living standard is not very high, but the policy of cultivating health and rest can always inspire people's hearts.

At this time, the government and the court were often the most loved by the people.

"You're right. I don't know how much King Qin knows about the West, that is, the affairs of Daqin?"

Su Jing changed the subject and went directly to the West.

Zhu Xi shook his head and said: "Students don't know much. Kaos would tell us some things before, but now he works in the Imperial Academy, so I see less. The third brother is more familiar with him."

After Lao Zhu lost interest in Kaos, a Roman, he sent him to the Imperial Academy.

Only King Zhu Fan of Jin had contacts with Kaos.

Su Jing said lightly: "Actually, this bank, or bank, also has its origin in the West."

"First of all, the emperor in the West is called a king, the king of a country. Their political system is somewhat different from ours. Generally speaking, the king is still the head of a country and the collection of power."

"As for the Western monetary system, the basic development process is similar to what I said before."

"Some civilians have become rich by doing business and have money, but the money is not safe in their own hands. Robbery and theft are still very common in the West. In order to ensure the safety of their money, rich businessmen store their money in In the king’s treasury.”

Having said this, Su Jing took a sip of tea and moistened her throat.

Zhu Xi wondered, "Will the king still store gold for merchants? It's unlikely, right?"

The king's treasury, that is the inner treasury.

Anyway, Zhu Xi couldn't imagine that an emperor's internal treasury would help store merchants' money.

Su Jing explained with a smile: "The king's treasury, to put it bluntly, is the mint. The West has implemented a policy of free coinage, that is, anyone can take gold nuggets into the mint and cast them into gold coins. Therefore, the mint allows Customers deposit gold."

"The merchants thought they were storing the mint, but it was actually the king's treasury, and the king couldn't be stopped from using their gold."

"Wars in the West are also very frequent. Gold is very useful in wars. Naturally, some merchants' gold has been embezzled without permission."

"Then these merchants realized that their gold was not safe in the mint and had to be relocated."

"King Qin, guess where is the new place chosen by these merchants?"

Zhu Xi was fascinated by what he heard, and immediately replied: "Could it be the bank?"

Su Jing shook her head and said: "We haven't gone to the bank yet. They chose goldsmiths, because in addition to the mint, there are goldsmiths who can cast gold coins, but the merchants will not directly make them and take them away, but let the goldsmiths A voucher is issued for the person who deposits the gold, and with this voucher in the future, the gold can be withdrawn.”

"So that's the case. It seems that even if the king loses his reputation once, it will be very difficult to get it back."

Zhu Xi said with deep emotion.

The king is equivalent to the emperor, and just using it once is enough to destroy trust.

Su Jing asked: "King Qin, what do you think the certificate issued by the goldsmith looks like?"

Goldsmith's credentials?
Zhu Xi was taken aback for a moment, he hadn't thought about it just now, but now that Su Jing mentioned it, he suddenly felt something was wrong.

"Is the goldsmith's certificate just a banknote?"

Zhu Ming said to Su Jing, with a bit of excitement in his eyes.

"That's right. Since the gold is placed with the goldsmith for safety, wouldn't it be too troublesome to have to get the gold every time you make a transaction? Why don't you just trade the certificate directly? Anyway, you can get the gold with the certificate!"

The more Zhu Xi talked, the more excited he became, as if he had discovered a new continent.

Su Jing smiled and nodded: "Yes, the merchant quickly discovered what you said. There is no need to get the gold when making a transaction, just use the voucher, but this was also discovered by the goldsmith. "

"They realized that the certificates they issued have the effect of currency! This is incredible, the temptation of wealth is unlimited, and fake certificates will appear soon."

"It's just that this fake certificate is different from counterfeit money. From the production point of view, the real and fake certificates are all made by goldsmiths. There is no difference at all. It's just that the fake certificate does not correspond to real gold, and it is just conjured out of thin air."

Zhu Xi immediately said: "If this is the case, then there will be problems soon, and the reputation of the goldsmith will soon collapse, just like the king."

"Then, how will these merchants choose? Will they continue to replace the place where gold is stored?"

Zhu Xiang's thoughts began to wander, heading in a further direction.

"King Qin, don't worry."

Su Jing's words brought him back from his thoughts. He looked at Zhu Xi and said, "King Qin, in fact, the goldsmith's fake certificate was fine at first, and no one noticed it. Do you know why?"

Fake voucher?How could anyone not notice it?

Zhu Xi was confused by Su Jing's words, and he couldn't understand. He shook his head and said, "Mr. Su, the students don't understand very well."

Su Jing explained: "First of all, the goldsmith's certificate has become the actual currency in daily transactions, so the frequency of taking gold will become much lower, right? Secondly, the gold is in the hands of the goldsmith, as long as it is not If you withdraw all at once, there will always be something left, and then someone will come to deposit it, and this cycle will repeat, this fake certificate will be the same as the real certificate, and no one will notice at all, unless all depositors come to withdraw gold."

After listening to Su Jing's explanation, Zhu Xi suddenly realized: "It turned out to be like this. In this way, the authentic and fake certificates have the same effect. Isn't the goldsmith's wealth endless?"

"It's not that simple."

Su Jing shook his head lightly and said: "King Qin, although it is unlikely that all depositors will come to withdraw money together, the possibility of goldsmiths constantly forging false certificates is very high."

"For example, if a goldsmith has 100 taels of gold saved by someone else, if he just forges a fake certificate of 110 taels of gold, then the total amount of gold that can be exchanged for a total of [-] taels of gold is [-] taels of gold. Such an inflated amount, goldsmith I can still bear it."

"But if the goldsmith continues to forge, and the number of fake vouchers increases, reaching 100 taels, then the gold corresponding to the external vouchers is 200 taels. Even if the goldsmith can still pocket it, what about the 300 taels of vouchers? Four hundred What about five hundred or even six hundred? There will always be a day when it collapses."

"At that time, the loss will not only be the reputation of the goldsmiths, but also the customers who can't get the gold despite having the certificates may do something extraordinary."

After saying this, Su Jing took another cup of tea.

If you talk too much, you will get thirsty easily.

As for Zhu Xi at this moment, he was already a little confused.

After a while, he said to Su Jing: "Mr. Su, since this voucher is equivalent to banknotes, what if Daming issued banknotes? With the continuous issuance of banknotes, the people no longer trust banknotes to be exchanged for gold and silver, and Daming's If the national treasury doesn’t have so much gold and silver, and the banknotes are no longer valuable, wouldn’t countless people go bankrupt?”

At this moment, Zhu Xi truly understood the terrible consequences that excessive currency issuance might bring.

Su Jing nodded and said: "That's right, once the money is worthless, countless people must bear the consequences. The current Ming Dynasty has a strong military force, and if such a thing really happens, it can still be suppressed by force, but if other Problems also arise and erupt, and subjugation of the country is not impossible.”

"When ordinary people can't live on, they have no choice but to rebel."

Subjugation!

This was the first time that Zhu Chong heard the word "national subjugation" from Su Jing. Even though he had heard Su Jing's theory of the destruction of the country by weather before, it was still not as shocking as hearing Su Jing say it in person.

"Mr. Su, is what you said true?"

Zhu Xi couldn't believe it, and asked Su Jing again.

Su Jing said lightly: "Although there are some alarmist words, it is not impossible."

Charles I could be beheaded by Cromwell, and the demise of the country is not impossible.

"So what in the end? How did the West solve this problem?"

Zhu Xi hurriedly asked Su Jing.

Since Su Jing is talking about what has happened in the West, there must be a solution.

Zhu Xi desperately wanted to know how to solve this matter.

Su Jing said lightly: "How else can we solve it? The banks that will appear later, that is, money banks, will have an additional reserve system."

"Reserve system?"

Zhu Xiang frowned and said, "What kind of system is this?"

Su Jing explained: "It's very simple. In a bank, someone deposits money in it, and someone withdraws money. At the same time, the bank will also lend money. But in this case, if too many people withdraw money, there will be riots."

"So, in order to deal with this problem, it is necessary to always have some money in the bank to guarantee the bottom line, and this money is the reserve fund."

"Any banking institution that wants to open needs a corresponding margin according to the scale of the business."

"Of course, the ratio of this reserve to business scale varies. This ratio is also called the reserve ratio."

As a student of economics in her previous life, Su Jing knew that the reserve fund system is an extremely important system in the modern banking system, and it is also a guarantee for the safety and stability of the bank.

It's a pity that in the Ming Dynasty, or in other words, under the feudal dynasty system, this reserve system was useless.

"Who will guarantee that the reserves are real?"

Zhu Xi asked directly, expressing the most critical question in one sentence.

The reserve system is indeed a very good system, but the reserves are owned by the bank. Without the supervision of a third party, people will not have their own underpants exposed directly.

Under the feudal dynasty, imperial power was supreme.

In the final analysis, everything is decided by a word from above, and the reserve fund may or may not be available.

It can even be said that there is no, and it is completely unregulated.

"Nobody can guarantee that."

Su Jing spread her hands, looking helpless.

Zhu Xi was dumbfounded, what is this?
He didn't realize that Su Jing's words actually contained some subversive things.

"The situation in the West is different from ours. We still need to find a way to solve this problem ourselves. It depends on human beings. Maybe King Qin will be able to think of a good solution in the future."

Su Jing encouraged Zhu Ping.

The improvement of the Western banking system was accompanied by the bourgeois revolution.

Su Jing didn't want to mention the revolution with Zhu Xi. This thing didn't have the slightest soil in Daming, at least the current Daming.

Lao Zhu had just established the Ming Dynasty, and his personal prestige and power were at their peak.

revolution?

Just kidding, that would be death!

The open-mindedness I mentioned with Zhu Xi before is already the limit.

"Mr. Su said that I must study hard and try to solve this problem one day!"

Zhu Xi said confidently, and the source of his confidence was Su Jing.

In addition, Zhu Xi also firmly remembered what Su Jing said about the development of Western banks.

After you go back, you can find out more about Kaos.

Su Jing patted Zhu Xi's shoulder and said: "It's a good thing to have ambitions. That's it for today's class. Dinner will be eaten soon. Get ready to eat!"

"Yes, Mr. Su."

Zhu Xiang nodded, immediately returned to his room, took out a pen and paper and started recording.

He really remembered Professor Zhu Biao's learning method.

It is best to listen and take note of the content of Su Jing's lecture. If not, then record it as soon as possible after listening.

Try to record the original words spoken by Su Jing. It doesn’t matter if you don’t understand. You can think about it carefully later.

On Su Jing's side, regarding Zhu Xi's behavior, he just smiled lightly.

It's not clear how much of what I said will be useful.

(End of this chapter)