“This question may be said to be simple, but it may also be said to be complicated!”
"The key to all of this is to first understand why countries mix silver and copper internally, but only copper is recognized externally?"
There are many smart people in Kyushu, a different world.
Even the New Year coins given by the Song Dynasty people were mostly based on silver. They did not give actual silver, but mainly used spices, silk, cloth, wine and other physical objects. This is why the New Year coin envoys were followed by The reason for the caravan.
"Because silver and copper are not equivalent!"
The empress said naturally.
Copper is recognized, but silver is really not. The gold and silver mines in the north have been mined out long ago, and the gold and silver mines in the south are reaching their peak.
Shu, which occupied Jingzhou, and the Ming Dynasty, which established maritime trade, had the former invade the northern part of Jiaozhi, while the latter entered the northeastern part of Jiaozhi. Large amounts of gold and silver were dug out of the mountains by the Jiaozhi natives. The two countries did not need to do anything. They could pull gold and silver from Jiaozhi every year. He returned three to forty thousand taels of gold and several hundred thousand taels of silver.
This is a single year, year after year, dozens or hundreds of years, the gold and silver reserves in the hands of the two countries account for almost 30 to 40% of Kyushu's amount.
Besides, I'm not stupid. Why should I use gold and silver when I can buy something with copper?
"No one in this world is a fool. On the surface, silver and copper are not equivalent. Countries pay different costs to obtain silver and copper. In fact, there is a set of economic theories hidden in it. My sister asked me last time. Facing the economy of the Song Dynasty, How does Wu Chaodang flip the table?"
“I said at that time that we were going to change the anchor of the currency, and the first step was to increase our country’s gold and silver reserves!”
The empress nodded, "What happened? You seemed to have given the answer that time, but you didn't say anything. Why did you plan to say it today?"
"We can talk about theory first. After all, the bank's problems are right in front of us, but it's too difficult to overturn the table based on theory alone!"
Fang Fang pulled the empress into the study, "First of all, we have to make one thing clear, that is, everything must follow the principle of large quantities but cheap, scarcity but expensive!"
"Isn't it the truth that cheap grain hurts farmers?" the empress agreed.
"That's right!"
The equation nodded.
"That's the truth. Broadly speaking, the specific value of anything, including gold and silver, fluctuates. The value of copper coins tends to be similar. If the quantity of one copper coin is large enough and the circulation time is long enough, the common people will have a negative impact on it. Approved!”
"Secondly, even if the copper coins minted by various countries throughout the dynasties vary in size and copper content, even if the value of a copper coin is reduced, how much is the loss?"
"A few damages can be ignored completely!"
"But gold and silver are different. A little bit of color loss will result in a loss of more than ten kilograms or dozens of kilograms of rations. No matter how big your heart is, it hurts! Even if it doesn't lose color, the gold and silver dug out in the north will be the same as the gold and silver dug out in the south. Are the costs really equal?”
"Faced with this kind of loss, I don't think no matter how generous a person is, he can't be generous!"
There is no concept of exchange rate in Kyushu, but people have a strong balance in their hearts. They want to do anything to make money, but they don't want to do anything to lose money.
Within a small range, the exchange ratio of gold, silver, and copper can tend to be balanced. When the range is enlarged, this approach will no longer exist.
"That's right!"
"Then here's the problem!" Fang Fang spread his hands, "If the bank is open to the outside world, the biggest attraction should be that it earns interest on storage!"
"It doesn't matter how high the interest is. As long as we don't want to ruin the overall situation, we will pay the interest no matter how low it is!"
"Given this interest rate, sister, how many people do you think will come to save money?"
The empress thought for a while, "It won't be too much in the beginning, but it won't be too little either. Merchants are more cautious in pursuit of profit. Money orders are the big deal. It will take some time for the people on the border to accept it, but there may be more in the future!"
The long border cannot be managed at all, okay?
Many people living on the border either don't have household registration in one country, or they have household registration in both countries. They just take advantage of them if they can, and don't look for them if they don't.
"No matter how much it is, domestic storage will definitely increase!"
The empress nodded slightly. The border was not easy to regulate. There was seven-cent interest within the territory. With the help of county officials and county bosses, the savings would definitely increase.
"Store together, and once the loan is issued, there will be more copper coins on the market. When there are more copper coins, the existing value system will be affected. Without any calculation, the value of a single copper plate will continue to fall. Then if you buy the same thing, Just need more copper plates!”
Fang Fang stared at his sister's expression. He was a little worried about whether her sister could understand this.
"Keep talking!"
"When this happens, the people who suffer the most are the people. If they are left unchecked, trouble will inevitably occur. The rich and powerful will not watch the proliferation of copper coins and devaluation, because this is not only about copper coins, but also about gold and silver. In order to keep copper coins from depreciating, , they will only pass all this on to the people!"
"However, we can now spend a lot of money through the work-for-relief program, thereby stabilizing prices overall. Even if there is still a slight increase, this part of the increase has been smoothed out after the work-for-relief program and the bank's interest payment!"
"Not only that, after the project is completed, it will continue to produce wealth, a water canal will be connected, and a middle field will be transformed into upper field. This impact will not be temporary, but will last for several years or even more than ten years. With the continuous output, the extra copper coins will be It will be offset by various outputs, and the final price will naturally return to a more appropriate level!"
The market is complex and there cannot be a single line, but what we are talking about now is theory, and the answer will naturally be given based on theory.
"I need to think!"
It was a bit chaotic, rising and falling for a while, with wealth on one side and copper coins on the other. I had a vague feeling that I had caught something, but the empress was not sure after all.
"Sister, think slowly, I'll get some food!"
Seeing his sister who was deep in thought, Fang Fang handed over the study room to him.
Entering the courtyard, a sweet smell of food hit your face. Half of the lamb was hanging above the charcoal fire, and the three people beside the charcoal fire were already enjoying it.
"How fast?"
Looking at the half-cooked lamb, the equation cannot be ended.
"The finished products in Zuixianlou are just added samples now. It's a habit after the winter hunting!" Lao Puya didn't touch the barbecue and explained, holding a bowl of hot mutton soup in his hand.
"Do you still have this habit?"
Some of the food was good, no matter how good it was in the mountains, it would be better to go to the city. Compared to this bite of meat, Fang Fang would rather have two bites of vegetarian food.
"Bullshit habits, in my opinion, just looking for trouble!" Li Yanting touched his mouth, "If nothing happens, in three or four days, the city will be in chaos!"
A group of energetic young people went into the mountains to work hard for twenty days and then came out to recuperate for a few days. They wanted money in their hands and were bored in their hearts, so they couldn't find something to vent about!
"What do you mean, am I not going to get rich?"
It’s good to vent, and drinking is the best way to vent. When he first returned to the city, Fang Fang was still wondering why so many shops were open. He thought they were for receiving goods, but he didn’t expect that they were for harvesting!
"Get rich? I advise you to close the store to avoid being ruined in the end!" Lao Pu said with a playful smile.
