Villager of Daming

Chapter 865: False Mortgage of Gold and Silver Reserves

The Qianzhuang of the Ming Dynasty had a system that it thought was perfect, but in fact it still had loopholes.

The head of the district told Zhu Yuanzhang that what Hanhan had given was not about the system, but that it had been written into a book for people to learn from.

"Integrate the gold and silver shops, integrate the people who were not arrested, and turn it into a county-level bank?"

After Zhu Yuanzhang listened, he summarized.

The head office, branches, and sub-branches that the director just mentioned are all commercial banks.

There is also the central bank, which is preparing for the issuance of credit currency in the future, which is much more formal than the printing of treasure banknotes in the normal history of the Ming Dynasty.

Historically, treasure banknotes were printed indiscriminately, in order to collect people's money, just like the later days of legal currency.

When fiat currency first appeared, it was actually very stable and linked to foreign exchange.

"Your Majesty is right, it is a matter of implementation by specific local hierarchical departments." The head of the district agreed.

"Will our Ming Dynasty start using credit currency?" Zhu Yuanzhang now understands some knowledge about currency, and he is looking forward to seeing how credit currency is issued.

"Your Majesty, we are just preparing to give us the ability and foundation to issue credit currency. For now, we still adopt the gold and silver bimetallic system.

If gold and silver have no purchasing power, then the Ming Dynasty itself has less gold and silver, and the Yi people cannot import gold and silver in the form of currency, which will hinder foreign export trade.

Outside, gold and silver are now returning to their standard. The Japanese and Liuqiu countries, plus Goryeo, are using our copper coins.

Among the Japanese pirates, you can even see the circulation of copper coins from the Tang Dynasty, Song Dynasty and Yuan Dynasty.

This is a good thing in terms of finance, but a bad thing in terms of the country. The former proves that other countries recognize the Ming Dynasty, or China, while the latter means that China has less copper and important resources are flowing out.

Your Majesty has always wanted to issue treasure banknotes. It is precisely because of this that the ministers who came to propose to His Majesty the issuance of treasure banknotes also considered it in the same way. "

The mayor shook his head and denied that it was necessary to issue credit currency immediately. It would be fine for the country, but it would be difficult to deal with the outside world. He had to let other countries have currency to buy things.

Zhu Yuanzhang pondered for a moment: "Is there a lot of gold and silver outside?"

"More!" The head of the village nodded: "With the increase in Ming Dynasty's commodity exports and the gradual convenience of sea and land transportation, the Yi people will be prompted to increase mining volume and improve mining technology.

By then, there may be a situation where the cost of gold and silver mining for the Yi people decreases, especially silver, and naturally copper as well.

Then their cost of purchasing Ming products will naturally drop, then there will be a problem..."

The chief's voice became louder and he told the ministers to listen together.

The external demand for Ming products led to the large-scale planting, breeding, and mining of materials and currencies needed by Ming Dynasty.

The various countries and tribes where the Yi people are located passively research new technologies to obtain more Ming products.

If the outside world does not accept the Ming Dynasty's treasure banknotes, and the technology of planting and breeding has improved a lot, then after exporting to the Ming Dynasty, the Ming Dynasty will not be able to provide enough goods, and the Yi people will exchange gold and silver and take them away.

In order to solve this problem, the most direct way for Ming Dynasty was to ban the export of gold and silver and focus on smuggling. This was a method used when there was no other way.

A better way is to also improve the technology of various industries in Ming Dynasty and increase the added value of export commodities.

Then there will still be an inflow of gold and silver. No matter how much gold and silver the Yi people mine in the future, it will not be as much as the benefits of high value-added commodities.

At the same time, the output of gold and silver has never been able to keep up with the advancement of technology. Only by not giving up the gold and silver bimetallism can we gain the recognition of the barbarians.

Then in the future, the gold and silver will be placed in the central bank and no exchange is allowed. They will be used as national reserves and cannot be drained out even if they want to. At that time, the Yi people can sell their gold and silver in exchange for Ming Dynasty treasure notes to buy Ming Dynasty goods, instead of using gold and silver directly as currency.

Is gold and silver money? Look at the amount of gold and silver reserves in the entire world. Unlike farming, where you plant one crop after another, there is a limit to mining.

The gold mines will be dug out one after another, and the same will be true for the silver mines, and the land will be dug out year after year.

Therefore, tea and silk are indeed good things for normal export, so... they should be used by the people of the Ming Dynasty as much as possible, rather than sold to the Yi people at low prices.

As long as the stock of gold and silver is small, it will inevitably be used as currency by outside countries, especially gold. It can not only be stored for a long time, but is also an important material for making jewelry.

Saving too much is the strength of the Ming Dynasty. Based on this, it issues treasure banknotes to the outside world and allows free exchange in the early stage. When other countries get used to the treasure banknotes and have a lot of them, the exchange will be prohibited.

They can only use Baoqian to buy goods from the Ming Dynasty, and they will also use Baoqian to buy and sell goods among themselves.

Then the Ming Dynasty's treasure banknotes will become the world's currency, and it will be easy to handle in the future. As long as the military strength is strong enough and the technology is good enough, the people of the Ming Dynasty will be able to eat cheap meals and use cheap utensils.

We’ll talk about this later, it hasn’t reached that level yet.

Zhu Yuanzhang and the ministers "study" together, and the more they listen to major national events, the more addicted they become.

"Yichang! According to you, without issuing credit currency, will the Ming Dynasty have enough money?"

Zhu Yuanzhang was thinking about the gold and silver he had obtained, and was worried about insufficient circulation.

The Northern Yuan Dynasty was defeated, and the Ming Dynasty was internally stable and had strong military power. It could appropriately liberalize exchanges with various places, especially the emigration of migrant workers.

Coupled with more grain, livestock and poultry, the price of salt has also dropped, seafood has increased, the people are rich, and things are bought and sold frequently.

Treasure money will inevitably start to concentrate, and businessmen will have more and more money. Is there enough money outside?

The mayor looked at the untouched breakfast and said: "Your Majesty, you can issue credit currency, but you don't tell the people, and the people don't know.

As long as the amount of gold and silver used as collateral reaches a certain proportion, it can be exchanged by the people.

In fact, as long as the Ming Dynasty has a stable military and can deal with natural disasters and no man-made disasters, people will not think about exchanging gold and silver.

Afterwards, a 10% handling fee will be deducted for exchanging the treasure banknotes. The collateral of this central bank is equivalent to the reserve fund of the bank after it is opened.

It is stable if there is 20%. Under normal circumstances, you cannot withdraw that amount unless there are too many bad debts in the loan.

The reason why some people keep gold and silver shops is to prepare for loans, including dental shops and pawn shops.

They know the value of the collateral for the loan, including property, real estate, jewelry, etc.

In addition, people in Japan are familiar with the situation and know what kind of people have high credit. This is a credit loan.

Therefore, the supervision mechanism must be perfected, with multiple people cross-checking, and only with the final signature can the money be released, and any problems can be dealt with.

Your Majesty, why don't we continue talking after dinner? It's all cold. "

The village chief finally advised everyone to eat quickly. If you don’t eat now, you will eat later. Do you want to eat at noon?

"Ah!" Zhu Yuanzhang suddenly realized that he was eating!

"Eat up, gentlemen. Let's eat the pie and dip it in...is this dogwood sauce? The one with minced garlic."

Zhu Yuanzhang wanted to dip it in soy sauce when letting others eat it. Xiaqiu Village never put a lot of salt in the stuffed food. If someone couldn't eat it too salty, he would not be able to eat it if he added too much salt.

If you feel it's bland, you can dip it in sauce or eat it as a side dish.

(End of this chapter)