The Flourishing Tang Dynasty: Beginning with Marrying Yang Yuhuan

Chapter 214 Rejecting Financial Shock
Merchants would hand over their coins to wealthy merchants who had branches in various places, who would issue half of the certificate and mail the other half back to the corresponding units in various places. When the merchants returned to their regions, they could withdraw the money after verification.

These lease certificates are called flying money.

In the beginning, flying money was only set up by wealthy businessmen. During the reign of Emperor Xianzong of Tang, the imperial court intervened in its management and established the Jinzouyuan.

Seeing that Li Heng knew, Liu Yan did not explain further and said, "Flying money is a kind of leasing certificate. Your Highness has collected luxury goods from the soldiers and people of Xizhou. He can use these luxury goods as the basis to issue another kind of leasing certificate. Users can use the leasing certificate to exchange for luxury goods. In this way, they will use this kind of leasing certificate to circulate."

To sum up, Liu Yan's idea is to issue paper money based on luxury goods.

It has to be said that his idea was very "avant-garde". If it were someone else, they would probably have been fooled by him, but Li Heng was very familiar with this matter.

As a modern man, he did not bring a small financial shock to the Tang Dynasty, but Liu Yan wanted to give him a financial shock.

Li Heng couldn't help but smile and said, "But the price of luxury goods is not value-preserving. People probably won't believe it if it's based on luxury goods."

In modern society, the reason why gold has become the standard is because it preserves value.

In other words, not all items can become the standard.

"That's not difficult." Liu Yan had already thought of a solution. "Silk, Kaiyuan Tongbao, and Lithuanian silver coins all maintain their value. Your Highness can stockpile these three things as a foundation."

When Li Heng heard this, he realized that Liu Yan was testing him.

Because the problem of the Tang Dynasty was not only the poor circulation of currency, but the bigger problem was the serious shortage of currency.

The imperial court now has clear regulations that Tang Dynasty’s copper coins cannot flow out of the country.

This is just one point. Another point is that copper and silk are not only currency, but also commodities.

If Li Heng hoarded copper coins and silk now, it would be equivalent to storing the currency that was in circulation but in short supply in the Tang Dynasty into the warehouse, and instead issuing "credit banknotes" that required a long time to verify. This would cause a further shortage of the currency in circulation, and the prices of copper and silk would soar.

Copper and silk are in short supply, and prices are rising. Users will certainly be anxious to exchange their products. Not only will their efforts be in vain, but they will also cause price fluctuations and hurt the people.

This is just from an economic perspective. If politics is taken into consideration, he will not only end up losing more than he gains.

Because he was now a Jiedushi, holding great military and political power. If he hoarded money again, he would be in charge of the army, food, and money. For such a blatant behavior, Li Longji would have wanted him executed without Li Heng impeaching him.

Li Ying understood the connection between the two, but he was not in a hurry to refute. Instead, he asked, "What's the next step?"

Liu Yan said: "After the success of the pilot project in Qixi, it can be implemented throughout the country. At that time, the court only needs to print the lease certificate to collect all the wealth of the people. In this way, the saint will definitely favor your highness more."

As for Liu Yan, it is almost time to harvest.

Li Ying couldn't help but laugh and said, "Does Shi An think that the court's sword is not sharp enough, or does he think that the people can be fooled at will?"

"This..." Liu Yan was startled, he stood up and saluted, saying: "Your Highness, please enlighten me."

Li Ying said: "Copper and cloth are not only currencies, but also important commodities. They cannot be hoarded. Even if they are hoarded by force, it will be suspected of conspiracy to rebel. Even if my father trusts me and Qixi is initially successful, if it is applied to the whole country, it will also create the scene of reaping the people, which is equivalent to pushing the Tang Dynasty into the abyss."

Li Heng spoke very roughly, omitting all the details in between, but Liu Yan understood what Li Heng meant.

Liu Yan understood these principles from the beginning.

Liu Yan's proposal was rejected by Li Heng, but he was very happy in his heart.

Liu Yan said seriously: "Thank you for your teachings, Your Highness."

Li Heng shook his head and smiled, saying, "Industry makes a country prosperous. If we want to make Datang better, we can only encourage agriculture and sericulture and develop...handicrafts. When Datang prospers to a certain extent, it will not be too late to do what you said." "Yes."

Liu Yan bowed to Li Heng again and admired him even more.

Li Heng's previous performance was to accept advice readily and act decisively. Although this sounds like a good word, if one cannot grasp the degree, it can easily turn into believing in slander, being ambitious, and being impulsive and brainless.

But now it seems that Li Heng obviously has a very strong ability to distinguish, he is meticulous in his decisiveness, and underneath his ruthlessness lies compassion for all living beings.

Mencius said: "If the ruler regards his subjects as his own hands and feet, then the subjects will regard the ruler as their own heart and soul; if the ruler regards his subjects as dogs and horses, then the subjects will regard the ruler as their fellow countrymen; if the ruler regards his subjects as dirt, then the subjects will regard the ruler as an enemy..."

This sentence is equally applicable if you replace "min" with "min".

Only someone like Li Ying is the leader that the Tang Dynasty needs.

Zhang Guangsheng and Cen Shen, who were standing by, had no knowledge of finance, so they were both confused by what was said.

He Jin had been studying business since she was young, and she could probably understand the conversation between Li Ying and Liu Yan, so she knew that Li Ying had given up a good opportunity to make quick money.

This made her re-examine Li Ying's recent behavior.

During this period, because of the assassination, she had to stay with Li Heng. She began to think that although Li Heng was not so extravagant as to indulge in sensual pleasures, he should also have the extravagant style of a prince or nobleman.

However, Li Heng did not have an extravagant lifestyle from beginning to end. Apart from official business, he spent the whole day accompanying Yang Yuhuan and Zhang Mujin.

She didn't understand, since Li Heng's life was so simple, why did Li Heng work so hard?

He Jin was still thinking to himself that Li Ying had already arranged other things, so he asked He Jin casually, "Miss He, I heard that the He family's caravan just returned from Jiannan. How is the situation in Jiannan?"

"I don't know the details, but I heard that they are stepping up military training, and I think they will attack Nanzhao soon." He Jin replied truthfully, and after thinking for a while, she added, "By the way, I also heard that Prince Yong and Li Mi, the military commander, are not getting along."

"Not suitable?" Li Yan was stunned. "Why not?"

"I don't know about this." He Jin shook her head.

Li Ying asked, "Did your caravan meet the princess' uncle, Governor Yang?

"We met with Governor Yang when our caravan left, but Governor Yang did not mention His Highness and the Princess." He Jin was a little confused.

"Yeah." Li Heng responded and said nothing more.

Logically speaking, Yang Xuanlu should have written a letter to him and Yang Yuhuan. Even if he was too busy and forgot about it for a moment, he should have asked He's caravan to help carry the letters when he saw them.

But Yang Xuanlu had none of them.

In this situation, it is highly likely that Li Lin and Yang Guozhong are keeping a close eye on Yang Xuanlu. And now is a special time in Jiannan, so Yang Xuanlu is temporarily refraining from exchanging letters with them for the sake of caution.

Li Heng could guess Yang Xuanlu's intentions, and at the same time he became worried about the war in Jiannan.

The virtuous Zhang Jiuling has passed away, how long can the loyal and brave Li Mi live?

Li Heng's gaze couldn't help but turn towards Jiannan's direction.

(End of this chapter)