1928: The Rise of Giants

After receiving the urgent news, Ye Luo said goodbye to Xu Zhimo and immediately found Zhang Hanqing who was still dancing at the Paramount Ballroom.

After listening to Ye Luo's words, Zhang Hanqing was confused. He couldn't figure out why the introduction of the Silver and Gold Act in the United States would affect the currency system of the Republic of China. He also didn't understand why Japan's currency system collapsed like this.

"Brother Six, it's an emergency. Let's talk on the way. I think it won't be long before the principal and Brother Song's phone calls arrive." Ye Luo pulled him and walked out of the ballroom, explaining the problem as he walked.

Ye Luo knew about the Silver and Gold Act, and also knew that it would indirectly cause the price of gold in Japan and the price of silver in the Republic of China to skyrocket, which would lead to the collapse of the monetary system. This is why he went to Japan to collect gold.

But he didn't know exactly when it would break out or how much impact it would have.

But judging from the fact that Japan's gold standard system collapsed as soon as the bill came out, the Republic of China was not much better. The principal must have been anxious.

That night, Ye Luoben and Zhang Hanqing took the train to Jinling and arrived at Qilu around early morning. The principal had also rushed back from the front line. At this time, a group of core figures of the Kuomintang gathered in the hall.

"The party seat is just an economic bill introduced by the United States. Does it really have such a big impact?" Chen Guofu, who looks gentle and has a strong bookish atmosphere, asked.

Chen Guofu served as deputy minister of the Organization Department of the National Government last year, and assisted the principal in establishing the Central Political Cadre School, and was in charge of the party affairs organization of the Jinling National Government. Therefore, there is a saying that "the Jiang family is under the Chen family party."

This was also the first time Ye Luo saw Chen Guofu up close.

Next to him is his 1922-year-old younger brother Chen Lifu, who graduated from the Mining Department of Peiyang University in .

In 1925, he obtained a master's degree in mining from the University of Pittsburgh in the United States. In September, he returned to China and served as the confidential secretary of the principal's office of Huangpu Army Military Academy, accompanying the principal.

In 1928, he served as director of the Investigation Section of the Organization Department of the National Government in Jinling.

In 1929, he was appointed Secretary-General of the Party Headquarters, making him the youngest Secretary-General in the history of the Kuomintang.

If Ye Luo hadn't been born out of nowhere, Chen Lifu would have been the youngest and most promising young man at the moment.

He and his brother had the same view. He also believed that the Silver and Gold Act would not have such a terrible impact. Has the United States issued few policy bills in recent years?

I have never seen anyone plunge the Republic of China into a pit of fire.

"Minister Chen, you don't understand economics and finance. As soon as this bill comes out, we will be in danger!" Song Ziwen is a top student in economics and is highly alert to this matter, but he is too lazy to explain to a few people.

The relationship between these people is actually very bad, and their struggle is also the source of the endless infighting among various factions within the Kuomintang.

Kong Xiangxi's eyes were directly on Ye Luo, who had just arrived.

"What do you think of A Luo?" The principal welcomed the two people in and asked directly.

"If we don't respond in time, Japan today will be the Republic of China in the future." Ye Luo also got straight to the point.

Everyone was horrified.

This is serious.

The collapse of the Japanese monetary system is an established fact. Although they are far away on the other side, everyone present has studied in Tokyo and is well aware of the situation in Japan.

If the Republic of China had reached this point, then the "precarious situation" mentioned by Song Ziwen would be considered an understatement.

"What on earth is going on?" Kong Xiangxi couldn't help but ask. Ye Luo had no choice but to use simple sentences to educate several big bosses about the gold and silver standard currency system, the contents of the Silver and Gold Act, and the benefits of the United States.

After talking about these preconditions and seeing that they had almost accepted them, Ye Luocai continued: "Our country is one of the few countries in the world with a silver standard system. Japan has just forcibly restored the gold standard system. In other words, for our two countries, From a personal perspective, gold and silver are the most important things in the entire currency circulation chain and are the blood of our finance.”

"In our Republic of China, from the small people to the large corporate governments, they all need to use silver when operating. This is like gold to Japan. Now the United States is crazy about purchasing silver in the entire international market, and the price of silver is rising rapidly."

"Isn't this a good thing?" Chen Guofu couldn't help interrupting him, "We are on the silver standard, the price of silver is rising, and our money is more valuable, which is a good thing."

"It is a good thing in the short term, but it is actually a big bad thing, and it makes Americans cheaper. Now the United States is in a financial crisis, and our silver prices are rising. As Minister Chen said, our money is more valuable and the people are richer. Then we will buy things in large quantities, and where do the products on our market come from?" Ye Luo looked at him.

Chen Lifu responded: "Basically dependent on imports. Although the tariff autonomy agreement has just been passed, domestic products have not yet risen, and imported goods still dominate the market."

"That's right. At the same time, as the price of silver rises and the price of domestic products rises, then the goods produced by our national industry will be subject to export boycotts. Once they come and go, we can't get out, and their inventory is dumped on us, which will inevitably lead to deflation. "Ye Luo nodded.

Inflation means that money becomes less valuable and goods become more expensive, but in fact, moderate inflation is conducive to economic and social development and is benign.

Deflation, in turn, means prices fall and currency becomes valuable. Then ordinary people will develop the consciousness of spending less and saving more so that they can buy more goods later.

That is to say, no one will go to the market to buy anything anymore, because everyone thinks that my money will appreciate in value tomorrow, and it is not worthwhile for me to spend it today. As a result, the transaction behavior in the entire market has shrunk, which is equivalent to the arrival of the epidemic, and all factories have stopped. Close, all the hotels close, all the restaurants close, the economy will decline rapidly.

The United States has driven up the price of silver, causing deflation and a rapid economic decline in our country. At the same time, many people have discovered that they can make a fortune by bringing domestic silver to the United States, which pays high prices for silver.

In the original history, in just a few years, more than half of the silver stock of the Republic of China was shipped to the United States. Later statistics, this was more than the amount of silver that was outflowed from my country during the Great Smoking War.

Silver is the blood of the Republic of China. If more than half of your blood is taken away, can you survive?
"Why did Japan end immediately? Because they were in a state of deflation before, and Hamaguchi Yuyuki forcibly restored the gold standard system in order to restore the economy, which led to aggravation of deflation. But as long as this period of time passes, Japan will slow down and become normal. So even if As deflation intensifies, they will also want to circulate their gold and force the use of the gold standard system. If the United States does this, Japan's gold will directly flow out like our silver, deflation will explode instantly, and the economic winter will come directly. "

Ye Luo explained the situation in Japan.

This is exactly like history.

The financial crisis and tsunami in the United States swept the world. Japan first committed suicide and restored the gold standard, and then was severely stabbed by the Silver and Gold Act. It completely collapsed and was led into the Great Depression.

There is only one way to get out of the predicament - war, to transfer the contradiction to the outside.

At this time, Chen Guofu and others finally realized the seriousness of the problem.

"What if we take a serious step and impose a 100% tax on silver exports?" Chen Lifu asked.

Later, it was he who proposed this suggestion and implemented this policy in an attempt to use heavy taxes to combat silver exports, but unfortunately it was completely useless.

Ye Luo rolled his eyes at him: "What's the use of that? Can you rely on this to combat silver smuggling?"

Chen Lifu was speechless.

With huge profits, the smuggling group can even risk their lives. Why do they still care about your policy?

"What should we do?" The principal frowned.

Ye Luo glanced at them and said with a smile: "Spend a lot of money to save the market. The United States bids high, and our price is higher!" (End of Chapter)