The great hero of the Silk Road, starting from a farm farmer

Chapter 272: A good middleman made a profit from the price difference, but he actually ran out of money!

After receiving the remuneration, Liang Suhua felt much better and no longer stayed in the post house waiting for news of the incident.

He plans to visit the craftsmen's workshops in Luoyang soon. Taking advantage of his free time, he will see if he can write another miscellaneous work examination report about the workshops in Luoyang. Maybe he can publish it in exchange for money and generate income. .

The previous book was a miscellany he wrote after he was interested in investigating the customs and craftsmanship production in and around the place where he was working and had nothing serious to do.As the capital of Dazheng, Luoyang has more prosperous scenery and industries than the place where he worked before. It doesn't seem difficult to save another book?

People!No matter what position you are in, you can't get around the relationship with money. The monarch of a country will worry about money, and ordinary people will also worry about money, although the amount they worry about is not of the same magnitude.

When Liang Suhua was an official, most of the effort he spent on money was not for his own personal wealth. At that time, it seemed that his family's livelihood did not require money at all.But now, every effort he puts into money is for his family's livelihood, so he is more motivated and values ​​it more.

Speaking of Qian and Liang Suhua, they took another high look at Yungu, a small separatist force in the northwest border.Because he discovered that the money printed by this remote force can be seen here in Luoyang.Especially the silver coins they minted are as popular as normal silver.

Liang Suhua, who knew something about fortifications, knew that the silver coins minted by Yungu were mixed with a lot of copper and lead and were not pure silver. This was why he specifically asked for solid silver when receiving royalties.He felt that real silver was more valuable than Yungu's silver coins.

But on the streets of Luoyang, the value of Yungu silver coins is indistinguishable from real silver. One silver dollar can be exchanged for half a tael of real silver. Could it be that merchants really can't tell that Yungu's silver coins are not pure silver?The coin thing is really a bit confusing.

……

Regarding money, Song Yingkui, who was far away in Yungu, couldn't figure it out. This thing was really complicated and dangerous, and most people really couldn't figure out the rules.Originally, Song Yingkui didn't want to figure out the rules, but the situation was pressing and if he didn't understand the rules of currency, something would happen.

For example, Yungu is inexplicably short of money at the moment.

It can print money, exports of goods are growing steadily, and the interest rate spread is not small. Although the investment in infrastructure is not small, it is far from over-investment. How can there be a shortage of money?

Judging from the accounts, the Yungu military government is not short of money. It is obvious that the revenue is more than the expenditure, but the reserve silver in the treasury is getting less and less.

The currency exchange houses began to panic. The minted silver coins and iron coins were easily exchanged. People were queuing up to exchange money at the entrances of several currency exchange houses.

"Director Guo, what happened recently? There was a drought, so why did prices fall instead of rising? And why are more and more people running on money at Tonghui Bank, and all the silver deposits at Daku are Bottomed out! Moreover, there are more and more iron coins that need to be minted. Logically speaking, if more coins are minted, prices should rise!" It was a big deal that the reserve bank was in danger. Song Yingkui quickly came to Guo Kaifeng to ask the reason. Anyway, he himself I didn't understand what the problem was.

"The reason for the run on minted coins at the Tonghui Bank is probably because there are too many copper coins coming from Dazheng and other places! I have checked with Daku. Although our silver reserves are less, there are more copper reserves in the treasury. Quite a lot. The iron coins made in Yungu are exchanged for one with the coins made in Dazheng. The iron coins can be exchanged for silver coins. Therefore, the merchants from other areas exchange all the copper coins for silver coins. If we go back, our savings here will be wiped out!" "That's not right! Although the exchange rate between our iron money and silver dollars is dead, our silver dollars are sandwiched with copper and lead. Compared with real silver, it is If there is a premium, it will be unprofitable for the merchants to bring it back to Dazheng?" Guo Kaifeng's explanation did not dispel Song Yingkui's doubts. One tael of silver in Dazheng can be exchanged for more than 200 copper coins. The ones here in Yungu are According to the fact that [-]% of a silver dollar is copper and lead, how come there is a run on silver dollars by copper coins?

"Commander, although we know that the minted silver coins are filled with copper and lead, in Dazheng, our two silver coins can indeed be worth one tael of silver. In the eyes of the merchants, if you hold a copper coin, you can exchange it for more in Yungu. Why don’t you make such a huge profit if you pay two hundred coins?”

What's going on?It was obviously a matter of profit, but how did it turn into a shady operation that was arbitraged by others!The silver dollar obviously does not have such a high value, but in the market, people just think it is worth this price.

If the size of Yungu is large enough and the reserves are large enough, it will definitely be Yungu that is so run on and ultimately benefits.The problem now is that the bottom is too small and it can easily be blown away.

"It makes sense that the silver dollar was being run on, but why is the supply of iron money also in short supply? There can't be anyone who thinks that the iron coins we cast are worth more than copper coins, right?" There is a barely reasonable explanation for the run on the silver dollar. But that’s not the case with iron coins, right?Although tin-plated iron coins do look much more beautiful, don’t you know that iron is cheaper than copper?

Although the run on the iron coins did not affect the reserves, Song Yingkui felt that the hidden dangers were not small if the issuance continued like this, and that there might be a big economic crisis.

"In terms of iron money, the problem may lie with Beixiang and Xifan. If they don't make money themselves, they use the money we make. If the money we make is only for their own people, it will be enough, but these two If a big country uses it, it won’t be enough.”

This is nonsense again. The two countries of Beixiang and Xifan used Yungu as a minting institution. With the size of these two countries, how could the currency minted by Yungu be used?But there seems to be some logical error in this?

"Xi Fan and Beixiang won't get our money out of thin air? They all exchange it for things. Why is the demand for iron money so great?"

"My subordinates can't figure this out. Anyway, most of the money we normally mint will flow to Xifan and Beixiang, causing our people to be short of money." Guo Kaifeng's understanding of finance and currency is not as good as Song Yingkui's. How can he The reasons may be explained thoroughly.

"If the money has gone away, we can always get the goods, right? The problem is that I haven't seen that there are many goods in the warehouse?" Seeing what went out but not what came in, Song Yingkui felt that his brain was a little weak.

"Didn't we sell the goods we got to Dazheng? How could they be kept in the warehouse!" Wherever the goods went, Guo Kaifeng really knew that he was the one who handled most of them.

One word awakens the dreamer!After the iron coins were drained out, the exchanged goods flowed back to Dazheng.Due to the interest rate difference, merchants in Dazheng liked to use copper to make profits. In the end, didn't they go back to arbitrage by running on silver coins?
The whole thing was speechless, a good middleman made money from the price difference, but he actually ran out of money!

(End of this chapter)