As long as the country exists, the tax system will last forever. Using taxes to endorse the credit of banknotes was really at the forefront of the times in the 19th century.
In fact, it is very simple to establish the credit of banknotes. As long as the country wants to promote the credit of banknotes, there are too many methods available.
For example, five years ago, Lotte Foreign Company purchased a lot of land near important commercial ports and docks when the land prices in Jiangnan had just subsided and land prices were cheap. At that time, Xiao Letian had already prepared for the later economic recovery.
These lands belong to Lotte Bank and Lotte Bank. There are so many that no one can count. If businessmen want to lease or buy these lands, Xiao Letian can make rules and only accept Nan Piao banknotes instead of cash. In this way, banknotes will be accepted. Wouldn’t the credit score be higher?
By the same token, many important asset transactions require guidance whether to use cash or banknotes. As long as the method is clever, it is easy to improve the credit of banknotes.
What is the core of national credit? It boils down to two words, that is safety. Whether a country can provide a safe living environment for its people and a safe trading environment for commercial transactions and large amounts of funds are all important components of credit.
And what provides security? Of course it is the army. Without a strong military force, no matter how much wealth you create, you are just a fat sheep in the eyes of foreign invaders.
The Song Dynasty is a good example, and the perennial battles with Japanese pirates in the mid-Ming Dynasty also prove this point, not to mention the late Qing Dynasty and the Republic of China.
And the current money crisis in Jiangnan is still a war crisis in the final analysis.
Since Xiao Letian was born, he has been invincible in all battles, including the liberation of Ryukyu, three Tanggu offensives and defenses, the capture of Beijing once, and an expedition to Fuso Japan... not to mention a series of victories in Europe.
It is the series of victories that create an illusion of invincibility and give people a strong sense of security. People will definitely have a future with you. It is safe to conduct business transactions in Ryukyu, so people will pay taxes. for you.
In the final analysis, the biggest thing about money is hedging, which even outweighs the profit-seeking nature. If you can't protect us, why should we pay you taxes?
Funds have no national boundaries. Once they think the region is dangerous, they will immediately flee. This is the same as the global strategy of the United States in later generations.
That area has become rich enough to become a fat sheep. Don't worry, he will definitely create conflicts, turmoil and war in that area. He has only one purpose, forcing safe-haven funds to fly to the United States.
The U.S. strategy is extremely clear, but it is also extremely royal. Who has the best military in the world?
The current Xiao Letian is not at the top of the food chain. Although on the surface, his light is very dazzling, in fact, he knows his own affairs. It is okay for these lights to fool the people. For real politicians and giant businessmen, Xiao Letian is different from the European powers. The difference between them is still obvious.
Bullying the Qing Dynasty and Fuso is not a skill. The ability to win a battle in Europe was only due to Prussia's strategic momentum, including the destruction of the French Expeditionary Force... In fact, the so-called expeditionary force of ten warships was seen by Europeans as That's not even a fart.
The appearance of the Far East Volunteer Army completely angered the Tsar. The main force of the Baltic Fleet dispatched more than 30,000 troops across half of the world to support the Russian army in Vladivostok. Even the British did not dare to underestimate such a generosity.
Can Xiao Letian still pass the test smoothly? Can this war be won?
The market gave the clearest answer. When the Russian fleet had just left the Baltic Sea, news of the expedition was only passed among some foreign merchants in the south of the Yangtze River. The people of the Qing Dynasty did not know the news at all.
Top bankers such as Citibank, Banque de France, HSBC, and Standard Chartered Bank in the Shanghai Concession had already begun secret meetings in secret. From that day on, foreign banks in the Concession began to consciously hoard physical silver coins and gradually reduced the storage capacity of Xiao's banknotes.
At that time, the market did not respond much. It was not until the expeditionary fleet sailed in the Atlantic Ocean and entered the offshore waters of Africa that the merchants of the Qing Dynasty also knew the news. Many people began to wait and see. The most obvious thing is that some big merchants stopped. Those big investment projects.
For example, large-scale projects such as the purchase and sale of land, the purchase and sale of factories and shops, and the investment and construction of workshops, tea mountains, and silk reeling lines have all been temporarily suspended. Smart businessmen may choose to earn less rather than take risks.
But at that time, more people didn't know, so the credit of banknotes did not change. People still used banknotes for daily transactions, unaware of the coming economic crisis.
The Russian fleet continued south, rounding the Cape of Good Hope in South Africa and entering the Indian Ocean. At this time, rumors had begun to spread in the Jiangnan area. The small shopkeepers selling needles, thread, oil, salt, sauce and vinegar would chat with regular customers about the upcoming war. Teahouses, restaurants, There were also many whispers in brothels and theaters.
But at that time, people still didn't think that the war in the Far East would have any impact on Jiangnan. After all, it was too far away. People didn't know where Vladivostok was, or even who the land belonged to before and who it belongs to now.
Life still has to go on day by day, but the prices on the market have inadvertently risen a little bit.
The Russian fleet headed straight for India. At this time, the foreign bankers in Shanghai finally started to take action. Almost at the same time, rumors spread all over the south of the Yangtze River. The foreign banks actually suspended the transaction of Xiao's money notes at the same time.
The fuse of the economic crisis was finally lit.
The foreigners' statements made the big businessmen in Jiangnan have a premonition of the approaching storm. Could it be that the worst result is about to happen? Everyone chooses to hold on to cash and spend all their money on banknotes.
Fortunately, there was no promise of cash exchange when the banknotes were issued. If it had been, I am afraid that all branches of Lotte Bank in Gangnam would have been overwhelmed by the crowd of exchangers.
But just like this, there are still some people who are lucky enough to go to the bank to inquire. As the number of people increases, the order becomes more and more chaotic.
When there are many people, there will be conflicts. People driven by greed and fear will quickly lose their minds. Some people even resort to asking Lotte Bank to exchange cash for the banknotes in their hands. If they don't give it, they will lie on the ground and refuse to leave.
One scoundrel will bring endless scoundrels, and in the end they can only ask for government suppression. Once suppression occurs, it will intensify the credit collapse, and the purchasing power of banknotes will suddenly begin to disappear again.
