Kai Fu Han

Chapter 488 Central Bank
"This is credit currency." Liu Xinqi patiently continued to explain: "As the Xinghan League continues to develop, the gross social product will increase by leaps and bounds. By then, the value of goods produced in a year will exceed more than one billion taels of silver. But the private sector does not Without so much silver, what would happen?”

"Money shortage?"

"Yes, the total social output value in the future may exceed tens or hundreds of billions. Where can we find so much gold and silver to make 'real' coins?" Liu Xinqi asked rhetorically.

"..." Liu Zhimu was silent.

"Money shortage will also cause big troubles. And what I just said may come true soon, ten years, 20 years?"

"So, it is imperative to issue credit currency." Liu Xinqi concluded.

"You have no experience working in the Ministry of Finance, so you don't know. In fact, there are already signs of money shortage in the Xinghan League market. If it weren't for the copper from the Japanese country and the paper food stamps issued by our Xinghan League, I guess there’s trouble now.”

"Really?" Liu Zhimu couldn't believe it.

"It's absolutely true." Liu Xinqi nodded seriously.

"I am being narrow-minded. I will do the work you have arranged and make all preparations for the issuance of new currency as soon as possible."

It finally made sense.

Liu Xinqi breathed a sigh of relief.

"Arrange for Jia Shangren to come see me as soon as possible. The central bank needs to prepare in advance." Liu Xinqi arranged.

"Okay, I'll send someone to inform him and I'll go find you tomorrow." Liu Zhimu responded.

"Okay, I'm leaving."

"I won't send you off, there are too many things to do."

Liu Xinqi waved his hand, picked up the two sets of "abandoned" banknotes and silver coins, and left the office.

……

On November [-], Jia Shangren came to Liu Xinqi's office as invited.

The first time he saw Jia Shangren, Liu Xinqi knew that he was an absolutely shrewd person.He was chubby, probably weighing more than two hundred pounds, and the fat on his face squeezed out his eyes, leaving only a thin slit.

"Have you sworn to join the Xinghan League?" Liu Xinqi asked.

"Already sworn," Jia Shangren replied.

"I think someone has talked to you before. If you want to do this position, you must receive immortal magic. Can you accept it?"

"Thank you, Alliance Leader. I am honored to serve you." Jia Shangren bowed and saluted.

Liu Xinqi took out the four-star military general card and attached it, it went smoothly without any mistakes.

After the enhancement of the four-star general card, Jia Shangren's height increased to 1.8 meters, and the fat on his body was converted into muscles.Although he still looks a little fat, he can already be described as "strong".

"What do you understand by 'central bank'?" After asking him to sit down, Liu Xin started to take the school test.

"In my understanding, the central bank is a tool to intervene and regulate the development of the national economy. If it is used well, the economy will develop upwards; if it is not used well, the economy will retreat or even collapse." Jia Shangren replied.

This insight is quite unique.

There are no tacky explanations such as "money bag", "money tree", "cornucopia", etc. The word "tool" is used to hit the nail on the head. "Yes, it is indeed a 'tool'." Liu Xinqi recognized Jia Shangren's understanding.

With this sentence alone, Jia Shangren is enough to hold the position of president of the Xinghan League Central Bank.

According to Liu Xinqi's plan, the central bank to be built will not only have the right to issue banknotes, but also carry out credit business for agriculture, industry, commerce and other industries and individuals, and can accept savings from urban and rural people.

Not only that, the Central Bank also separated part of the previous efforts of the Ministry of Finance and was responsible for managing the financial administration within the Xinghan League and acting as an agent for the national financial treasury.

It can be called a "unified" central bank.

A unit with so much power and such a huge power is called a "tool" by Jia Shangren, which shows that it has not been blinded by this huge power and has a clear positioning of itself and the central bank.

"In the future, some businesses of the central bank will gradually be separated, and corresponding professional banks and commercial banks will be established, which will only retain the responsibilities of issuing currency and managing financial administration." Liu Xinqi said: "But now, and even for a long time in the future, This separation will not be carried out. The power of the central bank is very powerful. As the president, your most important job is not to lose your mind."

"Yes."

"The original intention of the central bank was to stabilize and prosper the economy, not for someone's personal gain, including me, do you understand?" Liu Xinqi reminded.

"Understood, Alliance Leader." Jia Shangren looked focused.

"Remember this original intention, do not do anything that goes against this original intention, and do your best to do anything that is conducive to this original intention. Although you will need to be careful in your high-power position in the future, the central bank is a new thing, and you cannot be afraid of the exploratory stage. You can’t make mistakes just to avoid making mistakes. To put it bluntly, as long as you don’t print banknotes indiscriminately, you won’t cause a big mess, so you can just go ahead and do it.”

"Thank you, Alliance Leader, for your support." Jia Shangren looked much more relaxed.

"Do you have any other questions?"

It has been arranged before that Jia Shangren will select the manpower to prepare the central bank himself, and he can take it away if he likes it, so there will be no problem in this regard.

During the preparation for construction, he can withdraw money from the Treasury of the Ministry of Finance at will. He only needs to use it under the supervision of the Supervision Department and does not abuse it. He can have as much money as he wants and there will be no problems with money.

There are people with money who have solved most of the possible problems.

"According to the plan you left behind, there will only be one currency in the market in the future, and that is the currency issued by the Xinghan League." Jia Shangren said.

"Yes!"

"Then, can I enforce it?" Jia Shangren asked.

"It's not possible in the early stage. Once the new currency is fully circulated and enters every aspect and corner of people's lives, it can be implemented at that time." Liu Xinqi replied.

Jia Shangren means to prohibit the circulation of pure gold and pure silver as "money".

A direct ban now will definitely not work.

"Understood. Also, the planning book says that for private banks, they are required to deposit margins at the central bank, and they are also required to cooperate in the issuance of new currencies." Jia Shangren continued to ask: "When implementing this, you will definitely encounter How can I suppress resistance?"

"I didn't consider this before." Liu Xinqi lowered his head and pondered.

Each county has a garrison, but the garrison belongs to the military system. The separation of military and political affairs is an iron policy that Liu Xinqi has demanded since he established the Xinghan League and cannot be touched.

The garrison in each county is responsible for suppressing bandits, maintaining stability and defending the city, and will not deal with minor security issues.Catching thieves and thieves is the responsibility of the Public Security Department of Daliyuan.Even if the county magistrate needs to use the garrison, he must first apply to the Military Aircraft Academy, and only after approval can he get cooperation.This cooperation does not mean that the county magistrate directly commands the garrison, but the person in charge of the garrison directs the troops to cooperate with the county magistrate.

(End of this chapter)