I know that your Majesty is worried, but the emergence of Yanhuang Bank and Tang Yuan will definitely bring more benefits than harm to the Tang Dynasty. Please consider it carefully! "
In the Ganlu Hall, Li Zexuan bowed.
Qianzhuang and Tang Yuan, which have been on the market for more than half a month, finally ushered in the super "big test" that they had to go through!
If you pass the exam, you will live; if you fail the exam, you will die!
Li Er asked calmly: "Oh? Then tell me, what benefits can this bank and Tang Yuan bring to Datang~?"
Li Zexuan organized some words in his mind and said slowly:
"Your Majesty, first of all, Tang Yuan is lighter than copper coins, which is more conducive to transactions between merchants and people, especially large-scale transactions! For example, buying a carriage, the price of a carriage nowadays is mostly several hundred guan, and a few hundred guan copper coins , weighing over a thousand kilograms, and must be loaded on at least two or three ox carts! And if you pay in Tang Yuan, you only need a few such banknotes with a face value of 100 Tang Yuan to complete such a transaction easily. Transactions are a huge time saver for both buyers and sellers!”
While talking, Li Zexuan took out a banknote with a face value of one hundred Tang Yuan. Li Er asked Zhao Song to present Tang Yuan, looked at it carefully, and said:
"As Xuan Ling said, your Tang Yuan printing is very exquisite! I have already understood what you just said, but I can't abandon copper coins and use Tang Yuan just because Tang Yuan is more convenient than copper coins! If it causes turmoil in the country, you cannot bear this responsibility, and neither can I!"
Li Zexuan cupped his hands and said: "Your Majesty is absolutely right! Tang Yuan may indeed cause turmoil in the country, so it is absolutely right to be cautious!"
Li Er frowned and said angrily: "You guys were saying that Tang Yuan was so good just now, why are you saying that now?"
"Your Majesty, the reason why Tang Yuan may cause turmoil in the country is entirely because it is too easy to use and has too many advantages! To talk about the disadvantages of Tang Yuan, we must start with the advantages of Tang Yuan!"
Li Zexuan smiled and continued: "In addition to what I just said, the second advantage of Tang Yuan is that it is extremely safe to carry, and it can also make up for the "money shortage"! Our Datang currently produces about three hundred coppers per year. There are more than 10,000 kilograms. Even if all of them are used to cast copper coins, they can only cast more than 600,000 guan of copper coins!
Since His Majesty came to the throne, he has cooperated with the civil and military forces of the Manchu Dynasty to vigorously develop people's livelihood. The 600,000 copper coins each year may have been enough in the past few years, but since last year, the private copper coins have been stretched. With the development of production and the acceleration of commodity circulation in various states and counties within the Tang Dynasty, the speed of casting copper coins will increasingly fail to keep up with the needs of the people for copper coins!
At that time, a large-scale money shortage will break out. How should the court deal with it? Should we restrict private production? Of course not, this is hindering the progress of my Datang! And if there are Qianzhuang and Tang Yuan, and if the imperial court enforces it, Tang Yuan can completely replace copper coins, then there will be no problem of money shortage at all! "
Li Er's heart moved. What Li Zexuan said really touched the sore spot in his heart. His family knew about his family affairs. The annual amount of coins minted by the Tang Dynasty was actually less than the 600,000 coins Li Zexuan said. And it was undeniable that since the world was peaceful, From then on, folk agricultural production recovered very quickly, and the increase rate of copper coins in the entire Tang Dynasty was almost unable to keep up with the people's demand for copper coins. If this continues, the court really has nothing to do!
Will it then be up to the imperial court to suppress the value of all commodities? For example, if the price of three cents per dou of rice is reduced to two cents, the demand for copper coins among the people will naturally decrease, but how is that possible? Prices at this time are already very, very cheap and must not be suppressed any further!
"You mean, after Tang Yuan replaces copper coins, I can alleviate the money shortage by issuing Tang Yuan on a large scale?"
Li Er asked with a frown.
There are indeed problems with Datang's current currency system, but he always feels that Tang Yuan will also have hidden dangers, making it "unreliable" to use!
Li Zexuan quickly shook his head and said: "Your Majesty, this is one of Tang Yuan's disadvantages and hidden dangers! Tang Yuan can solve the money shortage and quickly generate a large amount of wealth for the court, but there is a huge risk hidden behind it! Your Majesty, you You are wise, mighty, and have extraordinary self-control, but how can you guarantee that all future emperors will be like you?
If there is an emperor in the future who is greedy for temporary gains and prints Tang Yuan indiscriminately to cope with the financial difficulties of the court, causing the Tang Yuan flowing to the people to be much higher than what the people need, the people will feel that the Tang Yuan is not valuable, and they will frantically want to go to the bank to sell the Tang Yuan. If converted into copper coins, at that time, the new monetary system established with Tang Yuan will quickly collapse, and if it is not done well, the country will collapse as a result. "
Li Er suddenly realized that he finally understood what he had been worrying about. He asked: "Then what do you base Tang Yuan's circulation on?"
Li Zexuan replied: "At present, of course, it depends on how many copper coins are prepared in the bank! In the early stages of the operation of the bank and Tang Yuan, the bank must provide 10% or at least 80% of the reserve for the Tang Yuan issued! In other words, if the bank wants to To issue 100,000 Tang Yuan, you must have at least 80,000 Guan in reserve for ordinary exchange by common people and merchants!
To put it bluntly, Tang Yuan is just a credit certificate. Only if everyone believes that Tang Yuan can be exchanged for copper coins at any time, will they feel safe to use Tang Yuan! Moreover, as the people and businessmen have more and more trust in Tang Yuan, the number of exchanges for copper coins will be significantly reduced. At that time, the reserves required by the bank can be reduced to about 40 to 60%! At that time, although the Tang Dynasty could only mint 600,000 copper coins every year, it could issue at least one million Tang yuan! "
Li Er's eyes lit up and he finally smiled and said: "This is also a good idea, but I listen to your opinion. Isn't the future issuance of Tang Yuan based on how many copper coins are prepared in the bank?"
Li Zexuan replied: "Of course not! This method of issuing Tang Yuan with copper coins as a guarantee is just the most basic method of banks! When Tang Yuan is accepted by most people later, there will be no need for a corresponding proportion. At that time, the court’s reputation was being used as a guarantee, and the number of Tang Yuan coins to be issued was determined based on the value created by everyone in the Tang Dynasty every year! Therefore, this bank must be in the hands of the court! "
Currency issuance in modern society has basically gone through three stages:
The first is the gold and silver reserve system: Under the metal currency system, it was stipulated that the central bank must have 100% reserves when issuing bank notes, because bank notes at that time could be freely exchanged for gold and silver.
The second is the guaranteed reserve system: after replacing the metal currency system with the non-honorable credit currency system, the central bank's currency issuance is allowed to be guaranteed by securities, foreign exchange and even other assets. (This is also one of the reasons why the country attaches great importance to foreign exchange reserves)
The third is the managed currency system: In order to prevent the central bank from issuing banknotes indiscriminately, many countries have implemented a maximum limit system for banknote issuance.
In Li Zexuan's plan, the Tang Yuan must develop from an initial exchange currency to a credit currency, and eventually develop into an official currency issued under the leadership of the state, completely replacing copper coins!
After all, in his opinion, besides being used to make money, copper is also very useful in other aspects!
.............
Reading URL: m.
