sultan's crescent

Chapter 23 Mine or Yours?

"Dear Abraham, you mean to mint a new coin, no problem, I will leave it to the Mint."

Selim said casually, Selim is really not afraid of anyone who is more anxious.

Anyway, in the original time and space, the Ottoman Empire has survived for more than 100 years relying on such a waste financial system, so why is he in a hurry.

What's more, with the Jewish nature of pissing, it is intolerable to have money but not make money. Selim does not believe that Abraham, who is also a Jew, can bear it.

Sure enough, as soon as Selim finished speaking, Abraham hurriedly said: "Your Majesty, the reason why the empire has fallen into this situation today cannot be solved by the mint casting a new coin."

"Then dear Abraham, what do you think is a good way to solve this problem?"

Looking at Sultan's smile, for some reason, Abraham felt that the other party seemed to have understood his thoughts, so he decided not to hide it anymore.

"Your Majesty, I think that if the empire wants to rebuild its financial system, it must rely on the help of the Royal Bank of the Ottoman Empire. Only when the Royal Bank has the right to issue currency can it repel foreign currencies and create circulation space for domestic currency.

But a single mint cannot do this. Only with the help of banks can good coins be used to drive out bad coins. Otherwise, the opposite result will only occur, just like Emperor Diocletian in Rome. "

After listening to Abraham's words, Selim felt a little fooled.

"No, even if you want to convince me, don't give me random examples." Selim complained in his heart while thinking about Rome's economic collapse.

In fact, in the era of Diocletian, the production, transportation, and sales systems of the entire Roman Empire were completely paralyzed.

Therefore, the new currency issued by Diocletian ended up being expelled by bad currency, which led to the failure of his efforts to save the currency.

And in this case, in 301, Diocletian instituted the law of limiting the maximum price (Price Edict 301).

This statute, which limited prices to fixed locations, applied to thousands of goods and wages, and punished merchants who violated them with the death penalty.However, the official price set by it was far below the cost of products and services, unable to stop the deterioration of inflation, and finally became a dead letter

With the failure of price control, Diocletian could only rely on the rationing system to completely isolate the military and government's supplies from the market, and to ensure the needs of the military and the government by collecting taxes in kind, while leaving ordinary people to fend for themselves in inflation .

So, fortunately, Ottoman's broken financial system is rotten, but its resilience is not bad, and the current Ottoman Empire has not yet reached the point of hyperinflation.

"It can be saved, it can be saved." Selim comforted himself while asking: "In this case, Abraham must have a complete plan, let's hear it."

Hearing what the sultan said, Abraham was very excited, and he said quickly: "Your Majesty, I have designed a perfect plan for you and your empire by referring to the currencies of the British, Spanish, French and ancient Rome.

The first is the selection of currency raw materials. According to the tradition of the empire for hundreds of years, I think the combination of gold coins, silver coins, and copper coins is the most appropriate way.

But considering that there are not enough mineral deposits in the empire, I suggest that in the future, Your Majesty, you may have to switch to banknotes, just like the Bank of England notes issued by the British. On the surface, they seem to be just receipts, but they can actually be used as a small-scale currency in circulation up. "

Good guy, Selim said in his heart, good guy, what's wrong with this, this old guy has already put his mind on banknotes.

The complaints are the complaints, and the next reforms have to be listened to. After all, Selim is not really the almighty sultan.

In terms of finances, we still have to rely on these Jews until we cultivate excellent financial talents of our own nation.

"Then there is currency value. Considering that the currencies of France and Germany have been in a state of chaos for a long time, the quality of coins minted by kings, monarchs, and states of various generations is not stable, and the exchange rates in different countries and cities are also different. phenomenon, and is greatly affected by the price ratio of gold, silver and copper.

Therefore I think that England is the most worthy of reference in this respect, please see, Your Majesty.

The first is gold coins: royal roses, 1 royal rose = 2 pounds = 40 shillings, monarchs, 1 monarch = 1.5 pounds = 30 shillings, guineas, 1 guinea = 1.05 pounds = 21 shillings, originally gold from Guinea cast, hence the name.

The second is silver coins: British pound, 1 pound = 20 shillings. At first, one pound was equal to one pound of silver, hence the name. currency.Gold coins were minted later.

Other silver coins have half a pound, that is, 0.5 pounds or 10 shillings, crowns, 1 crown = 5 shillings florins, 1 florin = 2 shillings, shillings, 1 shillings = 20 pence, four pence, dwarfs equals 2 pennies
And finally copper coins: pennies, halfpenny, quarterpenny.

I don't know what His Majesty thinks. "

Listening to Abraham's report, Selim became more and more confused, what the hell, why is a country's currency so complicated.

"Dear Abraham, if the empire does the same, will it be too complicated?" Selim asked puzzled.

"Your Majesty, I think it is very important to set up these currencies, because different regions of the empire have different levels of development, so the requirements for currencies are naturally different. For example, in Constantiniya, merchants prefer gold coins because they are suitable for Portable, convenient for bulk trade.

But in the Caucasus, Arab, and Bosnian regions, gold coins are not suitable for their needs, so the issuance of secondary coins is necessary.

Of course, what I said may not fully explain the doubts in your Majesty's heart. Perhaps you can go to various parts of the empire to see the local requirements for currency. "

Selim was numb at this time. To be honest, it was not because he could not understand the complexity of currency in this era. His rejection was more derived from the habits of his previous life.

"Well, Abraham, you figure it out."

"Your Majesty, there is one more thing. You haven't named the future currency of the empire yet." Abraham said forcefully. He never thought that it would be so easy to get the right to issue currency from the Sultan.

"The gold coin is called Ottoman, the silver coin is called Akche, and the copper coin is called lira." After saying this, Selim added: "But, Abraham, you have to remember that every coin minting plan must It has to be submitted to the imperial government and me for approval, without permission, you are not allowed to mint coins privately, and I think you should know the fate of violations."

"Also, this is your second son." Selim asked casually, pointing to Jacob who had been neglected for a long time.

"This is indeed my child. I don't know where Jacob offended His Majesty. I will definitely punish him severely."

Abraham hadn't recovered from the disappointment caused by the sultan's warning, and when he heard his son being named by the sultan, he trembled in fright.

"A very smart young man, he should be given more opportunities to hone his skills."

Leaving this sentence behind, Selim left without looking back. As for what the two people in the room thought, he didn't bother to care.

The seed has been planted, only to germinate later.

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(End of this chapter)