Beiyang 1917

Zhang Jiaao also knew in his heart that Bank of China's right to mint coins was a double-edged sword. The problem was that last year's Beijing banknote boom was caused by this mint right. The government's Ministry of Finance forced Bank of China and Bank of Communications to issue banknotes to advance military expenses, and there was no situation Guarantees and constraints have turned into two banks constantly advancing money for the government.

You must know that every time you issue one more yuan of banknotes, in theory, there must be a reserve fund in the treasury for redemption at any time. The Ministry of Finance does not have so many silver dollars as a reserve fund, and even the mortgage tax is not enough. So many banknotes issued must be guaranteed to be redeemed. , only the Bank of China and the Bank of Communications advance money on their own, isn't that a bottomless pit?

This is the starting point for Song Hanzhang, Zhang Jiaao and others to turn Bank of China into a private commercial bank. In 1917, there was no modern banking system in China. It took five years to completely resolve the "Beijing banknote trend".

In Zhang Jia'ao's new "Regulations of the Bank of China" in the future, the Ministry of Finance of the government can only issue public bonds in exchange for banknotes from the Bank of China and the Bank of Communications in a market-oriented manner.The fact is that public bonds are used as collateral for currency issuance.

For example, the Federal Reserve Act of 1913 stipulated that the right to issue U.S. dollars belongs to the Federal Reserve.The U.S. government does not have the power to issue currency, only the power to issue treasury bonds.However, the U.S. government can use treasury bonds as collateral to the private central bank, the Federal Reserve, to obtain dollar currency through the Federal Reserve and the commercial banking system. The Federal Reserve cannot refuse this.

Therefore, the U.S. government actually issues currency indirectly by issuing treasury bonds, and the source of U.S. dollars is on U.S. treasury bonds.The general process is as follows: first, the U.S. Congress approves the issuance scale of national debt, then the Ministry of Finance will take the designed different types of national debt bonds to the market for auction, and finally the Ministry of Finance will send all the national debt that has not been sold in the auction transaction to the Federal Reserve , the Federal Reserve took all the orders and handed over the corresponding US dollar cash to the Ministry of Finance.

To put it simply, the U.S. Treasury Department is responsible for printing treasury bonds, the Federal Reserve is responsible for printing dollar bills, and then the Treasury Department sells treasury bonds to the Federal Reserve to obtain cash, and the Fed obtains interest by buying treasury bonds.

Seeing that Zhang Jiaao's face was reddish and he was gasping for breath, while Lu Ding and Song Hanzhang had complicated expressions, Wang Geng patted the armrest of the chair with a smile and said,

"Do you want to establish a currency issuance system in China similar to the "Federal Reserve Act" promulgated by the United States in 1913?"

"That's right! That's the one! Like the United States, the government's Ministry of Finance can only issue public bonds and sell them in the inter-bank market first. The balance that cannot be sold is underwritten by the Bank of China and the Bank of Communications issuing currency, so that banknotes can be issued. Collateral, so that hyperinflation will not lead to a run and bank credit collapse! We just have that idea!" Song Hanzhang nodded hurriedly.

"In addition, after the bank's IPO of 1000 million yuan, the general meeting of shareholders will be established. Directors and supervisors must be elected by the general meeting of shareholders. The government can appoint the president and vice president from among the five executive directors. The term of office is four years, but only the general meeting of shareholders can remove them. In this way, the government and the bank are both separated and related, and it can be regarded as a structure that checks and balances each other but can develop smoothly!" Zhang Jiaao also expressed his long-planned plan.

Wang Geng nodded lightly, turned around and said to Lu Ding with a smile,

"Old Lu, if the thing that you two buddies think about is done, the Ministry of Finance will have a hard time in the future. If you change the money, you have to follow the rules of the market. Is this okay?"

"Hey! Brother Wang! I, Lu Ding, am not an ignorant person, so don't make fun of me. There are no rules, and we are in finance or finance. We all know that money must not be printed indiscriminately, otherwise Sooner or later, Tiancheng will be broken, and the unlucky ones are the ordinary people. I, Lu Ding, support their idea of ​​setting up a bank with both hands, and I am not prejudiced just because I am in charge of the Ministry of Finance!" Lu Ding blushed, and went straight Shaking his watch, he said.

"Printing bills indiscriminately is drinking poison to quench your thirst. Not to mention gentlemen, even the Ministry of Communications and the Bank of Communications can see it. How can Xu Youzheng and the Prime Minister not see it? It's nothing more than a matter of haste. Everyone needs to be more considerate." , Old Song, Fourth Brother Zhang, what is the total share capital of your Bank of China?" Wang Geng said in an old-fashioned but reasonable way.

"Currently, the Ministry of Finance holds 428 million official shares, and the remaining commercial shares are 236 million, totaling 664 million yuan!" Zhang Jiaao rushed.

"Is there any specific plan to expand business shares?" Wang Geng asked casually.

Lu Ding, Song Hanzhang, and Zhang Jiaao looked at each other for a few moments, and they had to follow the previous practice. Since everyone is trying to develop by following Wang Geng, the celebrity in front of the Prime Minister, it should be everyone's private service or donation of shares. This is the best time for Wang Geng.

Don't tell me, these guys are still meticulous in their work. Before Wang Geng came to the banquet, plus Feng Gengguang, the president who went to another room to have a good time with the girl in Yixiangyuan, the four of them worked together to make up a lot of money. The shares were given to Wang Geng as a meeting gift, and the door was closed to discuss for a long time.

The Bank of China is the foundation of Chen Jintao's fortune, but because of his relationship with Duan Qirui's thick legs after investing in the south, coupled with his corrupt nature, his official career is coming to an end, so Feng Gengguang, Song Hanzhang, Zhang Jiaao and Lu The four of them were determined to leave Chen Jintao's wrecked ship and find another captain for themselves and the Bank of China. Wang Geng's appearance made them choose their target!

"Old Song, it's up to you!" Lu Ding kicked the ball to Song Hanzhang. Originally, the focus of recruiting business shares was also in the Jiangsu and Zhejiang areas. In the end, it was Song Hanzhang and Zhang Jiaao who took the lead.

"Public power, it's you who said, anyway, you are the one who is planning to raise commercial shares, so just follow what we discussed, and my brother will take care of it for you!" Song Hanzhang handed over the baton to Zhang Jiaao, after all The Zhang family is a large family engaged in finance and industry, and it seems to have developed into a prestigious family consortium in Shanghai.

"Supervisor Wang, to tell you the truth, when you came just now, we discussed it. As the saying goes, there is no respect when meeting for the first time. Everyone pooled up 500 dry shares to give you a gift of introduction, and it counts as a few of us." This is for you personally, and it has nothing to do with our future business expenses. We will collect the money we need to spend on the up and down management! As for how many business shares you said you plan to recruit, our idea is to raise at least [-] million !"

Zhang Jiaao gritted his teeth and presented a [-] yuan dry stock of the Bank of China as a meeting gift. It is estimated that Lao Song and his family will share more than [-] yuan, and the remaining [-] yuan will be borne by Lu Ding and Feng Gengguang. As the saying goes, gift giving This thing has to be done in a proper manner. Xu Shuzheng bought Wang Geng a palace in the name of the Ministry of Army with one hand. The market price is about [-] yuan. Of course, it is still listed as a property of the Ministry of Army in name.

According to the current business model of the Bank of China, 10 yuan of shares is almost 1% of the shares. The problem is that if you always advance money to the government’s Ministry of Finance, the shares will not earn any dividends. A bit unable to make a move, so Zhang Jiaao gritted his teeth and mentioned 0.75.But after the share expansion, it will only be [-]% of the shares.

"Hehe, Fourth Brother Zhang, you only plan to increase your shares by 500 million yuan, and you gave me 2% with just one hand, which is too generous? My monthly salary is only 2000 yuan, [-] yuan. Enough for me to save for four or five years without eating or drinking. By the way, can you cash out your dry stocks at any time? What if I have to use the money urgently? Is there anyone to take over the offer?" Wang Geng said haha A series, people a little confused.

"Last year, the Beijing banknote craze came together, which dealt a severe blow to the reputation of Bank of China and Bank of Communications. Gongquan said that he would raise 500 million commercial shares, which is already an astronomical figure. You may not know Wang Geng. In the United States, 5 You can set up an investment bank with 5 U.S. dollars. In China, you can set up a commercial savings bank with 7 U.S. dollars. The Shanghai Commercial Savings Bank run by Chen Guangfu in Nansan Bank has a rated capital of [-] U.S. dollars and an actual capital of only [-] U.S. dollars. More"

Song Hanzhang saw that Wang Geng felt a little too small for the capital increase of 500 million shares, so he hurriedly stood up and explained.