The next topic is the issue of currency reform. Thanks to the modern Internet, this group of modern people from all over the world with various professions almost all have some knowledge of economics, and these knowledge are also divided into different economic theories. In the dormitory area, the future economic structure and monetary policy are the fourth most important issues for the passers-by, after official title, inheritance and women's issues. Many people are just like when they were on forums, arguing with all kinds of specious theories about things they don't understand at all, frothing at the mouth until they want to take action.
But for Cheng Dong, these theories are meaningless to the Finance and Finance Committee. Although anyone who has studied some history knows that ancient Chinese society was basically a natural economic society, self-sufficiency was the mainstream, and commodity exchange was very low.
But it wasn't until they came to this time and space, truly came into contact with all kinds of local people and things, and witnessed the social and business environment at that time, that the time travelers realized that they had arrived in an era of "natural economy". Especially in remote agricultural counties like Lingao. Although the late Ming Dynasty is known as the budding era of Chinese capitalism, in Lingao, not to mention capitalism, even the simplest commodity exchange was pitiful.
There are only fourteen cities in the county in total. These fourteen cities are so small that they are not as big as the markets in residential areas in many people's original time and space. Some cities don't even have houses at all, just a piece of dirt and a few houses. A hayloft. In the already pitifully small market circulation, physical exchange is also the mainstay. Whether farmers pay rent to landlords or landowners pay grain to government officials, grain is used. Most farmers and landowners live a life of self-production and sale, and only a few commodities are purchased in the market - even such transactions are often exchanged in kind, such as home-woven homespun cloth, specialties from the mountains, and the like. Even the yamen paid the yamen and petty officials in grain and cloth.
Therefore, not to mention "bank notes" like in movies and TV shows, even silver is rarely seen locally. The limited currency circulation is dominated by various copper coins. According to statistics from the Ministry of Finance, the most circulating copper coins on the market include Tang coins, Song coins and Ming coins, and even five-baht coins as far back as the Han Dynasty are also in circulation.
As a result, an important problem faced by the time traveler regime is the lack of sufficient means of payment. Travelers have enough silver and gold in their hands, whether they brought it from the original time and space, or they got it from selling goods or buying big houses in this time and space. The Finance and Financial Committee alone currently has 975 120 kilograms of silver in stock, as well as various silver ingots. A total of more than 700 kilograms of silver cakes, silver cakes, broken silver, silverware and silver jewelry, totaling more than 20,000 taels of silver in this time and space library. There are also more than 20,000 silver coins from various countries, mainly Spanish reals and silver pesos. The total gold reserves are more than 200 taels. In addition, there are more than 5,000 copper coins.
Such a huge wealth, but it is difficult for time travelers to use it - time travelers spend more on small amounts in the local area: paying wages, purchasing raw materials and food. Silver is rarely used in these business transactions, and copper coins become The currency that consumes the most. The time-travelers regard copper coins as metal raw materials and want to minimize their expenditures in this regard.
As a result, various departments under the Executive Committee came up with various methods when it came to external payments. Wu De first used work-point coupons in the labor brigades and communes, and then the more direct rice stamps and salt appeared. ticket. Work-point coupons are essentially a food-standard currency. Finally, after the opening of the Women's Welfare Society, the practice of using travelers' accounting salary points to purchase goods made this situation even more complicated.
As a result, the financial department felt that it was in a state of chaos. Whether it was budget reports, accounts paid, or reimbursements, each department had different units with "two" and "documents" Yes, "jin" is used, but also "point" and "fen" are used. Coupled with the conversion of different values, Cheng Dong's accountants almost went crazy. Therefore, the financial department is firmly demanding a unified currency. Only with a unified currency can we establish a currency exchange and financial system.
The monetary system first proposed by the Executive Committee was the silver standard system, with each silver dollar equivalent to half a treasury in the Ming Dynasty.
Travelers have enough silver reserves in their hands, and such silver reserves will increase in the future, and the bank silver dollar has sufficient material guarantee.
Secondly, considering the notorious reputation of Ming Dynasty banknotes, I am afraid that neither businessmen nor ordinary people will like banknotes, and it will be very difficult to promote their circulation.
From this point of view, the silver dollar system seems to be more appropriate.
However, some people have put forward different views and believe that the time for the bank dollar is not mature enough.
Lingaolin's own economy is underdeveloped, its market size is small, and its material output is not rich. Even with half a ku of silver dollars, the purchasing power is really too high. After all, the price of rice in Lingao is only one or two or three yuan. With half a ku of silver dollars, you can buy almost 36 kilograms of rice. Still too big for small payments. Crossing the political power will inevitably lead to the continued circulation of auxiliary coins.
In order to gain credibility, the time traveler's coinage must be well-made, but another law in the market is that bad coins drive out good coins. It is conceivable that once time travelers put high-quality coins on the market, the Chinese people's traditional habit of hoarding gold, silver and even high-quality copper coins will swallow these coins like a black hole. Not only will it not be able to dominate the market for a while, but it is also very likely that it will be swallowed up by the bad coins coming from the surrounding area - after all, the time traveler only controls a small front.
Taking into account the final decision, the Executive Committee decided to issue grain-based banknotes in the ruling area. This kind of banknotes was named "Lingao Grain Circulation Coupons." The reason why names such as Tongbao were not used was purely to avoid irritating the government. Money coupons Merchants in ancient China have always used these tokens to raise money on their own, with minimal interference from the government.
Formally, it uses "yuan" as the unit to avoid confusion with units such as "wen", "liang" and "money" in the past. The basic unit of Lingao circulation coupons is yuan, and each yuan is equivalent to 500 grams of rice. Below the yuan is "fen", one yuan equals one hundred cents.
As long as the time-traveling regime has enough food in its hands, the credit of this kind of banknotes can be guaranteed - the time-travelers still have full confidence in their agriculture.
In the long run, the food standard is just a measure of rights and interests, but at the current level, this system is still relatively safe and acceptable - after all, the time travelers have established considerable credibility in the local area. It should not be very difficult to implement this kind of "food stamps".
"I still doubt whether banknotes can be used." Li Haiping of the Navy felt that this matter was not serious at the discussion meeting. "Don't tell me that banknotes were circulated in the Song and Yuan Dynasties. That was government behavior. No matter how much the government abuses, it will never be enough. It still has credibility. Why should we let the people believe it?"
Wen Desi explained, "As long as there is a place that can exchange the equivalent amount in full, the common people will accept it. When the pound still had gold content, everyone knew how much gold a gold pound could exchange, but in fact no one would go To exchange it for gold, it is enough for people to know that this banknote can be exchanged for gold when taken to the Bank of England."
"But what do we use to pay for foreign trade?" People in the commercial department questioned, "People don't recognize your banknotes, and they don't want your rice. They all have black eyes and see silver."
"Haha, I'm still thinking about silver. What do we need silver for, to buy things outside Hainan Island? Then why don't we just have the supplies shipped here? We also need to use silver to transfer hands. Isn't it troublesome? We are not Spaniards. If we don’t produce good things, we can only buy them with money. We have attractive goods, and merchants will naturally come here in pursuit of profits. Just barter," said Yanquezhi. Because he graduated with a bachelor's degree in finance and knew accounting business, Cheng Dong had been transferred to the Finance and Finance Committee to serve.
"Actually, I don't think it's very meaningful to increase the local silver reserves in Lingao." Wen Desi said, "In a small place like Lingao, if there is too much silver, the value will depreciate. As for current external procurement, in Guangzhou we have ten Tens of thousands of dollars are available, and Guangzhou Station will continue to replenish it in the future. There is nothing difficult about purchasing and paying."
"If we really need money, we can pay with silver pesos." Cheng Dong said, "This kind of money is very popular along the coast and is easy to circulate."
"Then if outsiders come to our ruling area, what exchange rate will be used?"
Cheng Dong said: "Let me explain monetary policy."
The time-traveling regime has no plans to completely replace all currencies in the local market with circulating vouchers. This is beyond our capabilities based on current capabilities. Travelers only use it as a means of payment and settlement. Silver and copper coins already in circulation will continue to circulate. The exchange rate between them is based on the rice price as a reference. Assuming that the price of rice is 1 kuping liang per metric stone (1oo kilograms), then 1 kuping tael can be exchanged for 200 yuan in Lingao circulation coupons.
"But this is a theoretical statement. Within a few years, there will be no exchange between our circulation coupons and various miscellaneous silver coins."
Cheng Dong explained that the reason why there was no exchange was that the currency system in the Ming Dynasty was extremely chaotic and the phenomenon of private minting was serious. The fineness of both silver and money was unimaginably complicated, making it difficult to estimate its correct value, and the difficulty of exchange was too great.
Someone asked: "I want to know how much ability we have to actually control the rice market in Lingao? Since rice is used as collateral, the fluctuations in rice prices will cause the fluctuations in the actual purchasing power of currency, right?"
"This is indeed a problem." Cheng Dong admitted. Food is no more valuable than precious metals like gold and silver - its value is relatively stable. Grain is affected by many external factors, "but I think that as far as the entire Lingao area is concerned, the Chuan government is fully capable of controlling rice prices."
