Beiyang 1917

"The first step is to take advantage of the opportunity of the Ministry of Finance to issue 3.8 million national bonds. Bank of China will underwrite 1.8 million of the national bonds, and the remaining [-] million will be underwritten by the Bank of Communications. The two banks will issue new banknotes together!" Wang Geng said and A long-planned plan by Lu Ding, Song Hanzhang and Zhang Jiaao.

"You are crazy, Wang Geng. The recycling of old Beijing banknotes has not been finished yet, and you are thinking of reissuing new banknotes? What's the difference between issuing old Beijing banknotes? Then why are you still sorting out and recycling old Beijing banknotes?" Xu Shuzheng jumped up instinctively to object.

"Wang Geng, what did you plan? You Zheng is right. The old banknotes issued by the two banks have not been withdrawn, so you issue new banknotes indiscriminately? What kind of medicine are you selling in this gourd?" The Prime Minister asked puzzled. Dao, he knew that Wang Geng must have a plan in his mind, but he couldn't figure it out for a while.

"The problem with the old Beijing banknotes was that the banknotes were printed indiscriminately, which led to the collapse of credit. Now, with the Bank of China's share capital increase and the new "Bank of China Regulations", the disadvantages of issuing banknotes to the Ministry of Finance by banks out of thin air are prohibited. In order to issue new banknotes in this way, the Ministry of Finance must issue treasury bonds as collateral in exchange for banknotes issued by banks, and there will be no credit problems, this is one of them!"

Wang Geng took his time and clapped his fingers to explain to Duan Qirui and Xu Shuzheng,

"Secondly, the mainstream developed countries in the world all adopt the gold standard. Of course, with the outbreak and extension of World War I, the gold standard of various countries is now a gold standard that suspends redemption, but after all, gold is the reserve of currencies issued by banks of major powers!" Wang Geng broke Down the second finger!

"Wang Geng, everyone mentioned your idea a few years ago, but China has almost no gold reserves, and its gold production is also low. Now that the war in Europe has been fought, even the gold in the treasury of the British Empire has gone into the basement of the Federal Reserve. It’s hard for a smart woman to live without rice, and for hundreds of years in the Ming and Qing Dynasties, China’s currency was mainly copper coins and silver, so it had no choice but to adopt the silver standard! Why, you want to issue new banknotes to establish the gold standard? That’s absolutely impossible!”

Xu Shuzheng has both military and political excellence. He is also the Secretary-General of the State Council in front of the Army's undersecretary. His understanding of modern finance and economics is not bad at all.

"China's silver standard will drag down China's finance and economy. First, silver is a currency in China but a commodity outside of China. Second, China itself is not a silver-producing country, so giving up the silver standard is the general trend!" Wang Geng He insisted unmoved.

"Wang Geng, Beijing banknotes are an attempt by the government to change the currency from silver dollars to banknotes. You have seen the result. What's more, China is a situation where each province is in its own way. You just issue new banknotes at the central bank. Other places other than Jinjin and other places cannot be promoted, and finally become the next Beijing banknote!" Duan Qirui's words are more pertinent, obviously everyone knows the shortcomings of the silver standard, but without the premise of gold reserves How to push the gold standard?

"The recycling of the old Beijing banknotes happened to be the best time to launch the new national currency. Of course, given that China has not yet been truly unified, the new national currency issued by the central government will have huge resistance and difficulties in local implementation. However, if China participates in the war, With the influx of foreign aid from Japan and the United States, the central government’s financial resources and industrial and agricultural production strength must far exceed that of the local governments, especially industrial products. As long as we seize this opportunity to establish and improve the light and heavy industry system, then our future Wherever the goods go, our new national currency can go there!"

Wang Geng’s words can’t help but arouse the deep thinking of the Prime Minister and the Undersecretary of the Army. If only the central bank can issue banknotes in the whole country, all localities will have to use new banknotes just to pay taxes, not to mention the education, medical administration, etc. that are allocated by the central government. Branch of the industry!

It's just that it is feasible to issue new banknotes again now, even directly from silver dollars on the silver standard to banknotes on the gold standard, taking such a big step.

"Adopting the silver dollar currency under the silver standard is like drinking poison to quench thirst. Our wealth is continuously lost with the violent fluctuation of the international silver price. When the international silver price is higher than the domestic one, our silver is lost in large quantities. When the international silver price is lower than At home, our silver dollars have been devalued to nothing, so it is best to issue new banknotes once and for all by taking advantage of China's participation in the war, the ten-year postponement of boxer indemnity payments, the issuance of public bonds, and the rolling in of US aid to Japan. opportunity!"

Wang Geng's tone was full of self-confidence and delusion, and the Prime Minister couldn't help but be moved. If the central government had enough silver to mint silver dollars, then the trend of Beijing banknotes caused by the excessive issuance of banknotes would never happen. If Wang Geng In other words, the newly issued banknotes can maintain a strong national credit, so the benefits brought to the central government by this currency reform alone are more far-reaching than the value of US aid to Japan!

"Youzheng, do you think what Wang Geng said is feasible? Use the new banknotes issued to recycle the old Beijing banknotes, and gradually promote them to gradually replace silver dollars and silver taels!" Duan Qirui turned to ask his confidant and beloved general!

"It is of course good to use gold as the currency reserve to issue banknotes using the gold standard. The question is, where does China get so much gold? How can banknotes be issued without gold as a reserve? Isn't it going back to the old road of old Beijing banknotes to issue out of thin air?" Of course Xu Shuzheng knew Paper money under the gold standard is good for the country and the economy, but how to solve the problem of not having enough gold reserves?Without the treasury's precious metal reserves, the issuance of banknotes is a source of nothing!

"We don't reserve gold, we reserve US dollars, and let Americans store gold! We adopt a fixed exchange rate pegged to the US dollar. With the support of the United States and the comprehensive economic, trade and military cooperation that the two sides will further expand as they enter the war, the US dollar is the Our gold! Of course, the yen can also be used as part of our reserves!" Wang Geng sacrificed his long-planned killer, and when he told Lu Ding and the others about his plan, the whole room was stunned. Wang Geng's put the brothers.

"As long as the Americans don't print U.S. dollars indiscriminately, we don't have the problem of printing new banknotes indiscriminately. For example, if we want to put 1 million new national currency on the market in the future, we will issue [-] million government bonds and use the U.S. dollars in the treasury as currency issuance reserves. !” Wang Geng said with a smile.

"That's okay? Where do the US dollars used as reserves in the treasury come from? Our exports to the United States are far smaller than the US's imports to China!" Xu Shuzheng's mind was quick, and he couldn't wait to point out the problem.

"Where does the dollar come from? Export trade, investment in China, mortgage loans, and even directly buy from the United States with the new national currency. Of course, we put the recycled silver taels and silver dollars on the international market to take advantage of the rebound in silver prices and exchange them for dollars! The U.S. dollar reserve is only used as a reserve for currency issuance, and the reserve means that we can issue up to 5 to 10 billion dollars of currency with 10 million U.S. dollars, corresponding to a reserve ratio of 20% to [-]%!"

Wang Geng's unhurried answer made the eyes of both the Prime Minister and the Army Deputy Minister light up.

"Taking advantage of the rising silver price, exchange banknotes for silver dollars and then cash them out in the international market and exchange them for US dollar reserves! If it works out, this is really a good deal! It's a shame you can figure it out!" Duan Qirui laughed Getting up, Xu Shuzheng beside him also nodded slightly, no matter whether the matter Wang Geng planned is really as easy as he said now, but if it is really done, this guy has made a great contribution to the nation!

The premise is that the newly issued banknotes must be very strong!Credit must be very high very good!

"Prime Minister, Brother Youzheng, heavy codes are used in troubled times. If you miss the opportunity, you will never come again. The local warlords believe that power grows out of the barrel of a gun. I believe that as long as we don't print money randomly, we will rely on the United States, the most powerful industrial country in the world, Then hold Japan, the self-proclaimed No. [-] power in Asia, and don’t make trouble. Waiting for the model army to participate in the war to form ten divisions, with cannon planes in the left hand and new national currency in the right hand, it will be easy to unify the Beiyang and the whole country! Building a new republic will be easy !"

Wang Geng confessed his confession swearingly, with incomparable confidence and firmness in his eyes.

"Wang Geng, if you are really confident that you can issue new banknotes without causing credit problems and financial collapse, the Bank of Communications can be restructured and managed in a unified manner according to Feng Gengguang's Bank of China's rules!" Xu Shuzheng was shocked by Wang Geng's tone Infected, finally stood up and made a statement!

"Okay! Youzheng, Wang Geng, as long as the two of you can unite with sincerity, I don't have to worry about it! This matter is settled like this. Wang Geng, you, the Beijing banknote sorting supervisor, will be fully responsible. The Ministry of Finance will lead the Bank of China and the Bank of Communications." , solve the recycling of old Beijing banknotes and the issuance of new banknotes in one piece!" The Prime Minister happily made a decision in front of the two confidantes and generals.

"What's the name of the new banknotes issued uniformly?" Duan Qirui didn't forget to ask this.

"The U.S. is called the U.S. dollar, Japan is called the Japanese yen, and China can be called Zhongyuan or Huayuan. Prime Minister, Brother Youzheng, which one do you think is better?" Wang Geng said with a smile, obviously this name has been planned for a long time!

"Zhongyuan!" The Prime Minister and the Undersecretary of the Army said in unison!