Chapter 122 Exchange of Treasure Banknotes
Liaodong, where He Xi was in charge, also maintained this loose policy. The only problem is that Liu Jing has no share in the control of the factory's profits. Now that Liu Jing has money, due to policy inertia, there are no regulations on how Liu Jing spends this money.
Of course, as Liu Jing's second son sincerely, he is not short of money, so there will be no corruption. But he saw how He Xi spent money aggressively, and if he wanted to make money aggressively, he adopted a series of new fiscal policies. How could Liu Jing not feel it?
I had no money before, but now that I have money, I naturally want to do something big.
After careful consideration, Liu Jing decided to open up land on both sides of the Yalu River. Add more farmland to the Ming Dynasty, place more people recruited from Japan and Korea, and let them become the people of the Ming Dynasty. Pay taxes for the Ming Dynasty.
Liu Jing was very supportive of the idea left by He Xi to build Liaodong into the granary of the Ming Dynasty.
has been implemented.
With this money, I will only work harder. And adhere to the consistent policy set by He Xi and Lan Yu to draw the blood of Korea and Japan to build Liaodong.
He Xi said: "The second thing is to carry out a systematic reform of banknotes."
Yang Shiqi said: "Is it really possible now? Is it too fast?"
Yang Shiqi was extremely surprised by many of He Xi's practices. He Xi did things in a big way. In the past, the court spent hundreds of thousands of taels, which was a lot of money, but now in He Xi's hands, it cost tens of millions of taels. It's simply not an order of magnitude.
That’s all.
It stands to reason that with so much money in hand, it should be stable for at least a period of time. He never expected that He Xi would not wait for all the money to be realized. Let’s start the next big move.
Even if Yang Shiqi could keep up with He Xi's thoughts, he felt it was too fast.
He Xi said: "Money is just paper. Even if it is mortgaged with gold and silver, it is just a piece of paper with a mortgage. What you spend is money, and what you hold in your hand is just paper."
To be honest, He Xi's overall feeling about Ming currency is that it is out of control.
Yes, out of control.
He Xi only knew that he issued a total of more than 50 million taels of silver notes. Already have bank deposits and loans. It's just He Xi's request, but most companies are actually not willing to transact in banks. Unless it is for corporate purposes, that is, when undertaking government projects, everything must be reflected in the bank.
But with these data and the price summary in hand, how can we judge whether monetary policy is correct? He Xi just felt that this question was out of line.
Therefore, He Xi's approach has been very conservative. I dare not compare it with the Federal Reserve.
But his simplest currency experiment told him that there would be problems if he recycled such a huge amount of currency.
Of course, there will be problems if we don’t recycle it. If Beijing and Liaodong, a small piece of land, undertake such a large amount of currency, problems will naturally arise.
It's not that He Xi wants to make big moves in and out. Now there are times when he has to make adjustments.
What kind of adjustment, that is the plan I have been preparing to exchange for treasure banknotes. The total amount of treasure money has been calculated before. Today, fifteen million taels of silver notes are enough to exchange for all treasure banknotes. More importantly, the treasure banknotes are circulated throughout the Ming Dynasty.
Although mostly in big cities. But overall the circulation is much wider.
After banknotes replaced treasure banknotes, the banknotes issued by He Xi were not only circulated in Beijing and Liaodong, but also in some places overseas. They will be circulated in most places in the Ming Dynasty, including Jiangnan. In this way, He Xi's cost of building an industrial system in Liaodong, Beijing, was passed on to Ming Dynasty.
It can be said that the process of exchanging treasure banknotes is a process of extending banknotes to the entire Ming Dynasty. This is also the first time that He Xi has promoted a policy to all parts of the country.
He Xi even felt that he could actually print more banknotes at his discretion.
Anyway, there is no law in the Ming Dynasty that can restrict He Xi's right. All it takes is He Xi to submit Zhu Yuanzhang's annotations.
This is why He Xi feels that the money in her hand is paper.
He had known this theory before. But a theory is just a theory. Only after he practiced it once did he have a deeper understanding. As long as the currency value can be maintained, in theory, an unlimited amount of currency can be provided.
Of course, this is theoretical.
Even He Xi had to admit that Ming Dynasty was actually much stronger internationally than China in later generations. At least, the banknotes printed by He Xi circulated throughout Southeast Asia with almost no obstacles. Everyone's only feeling is that banknotes are not suitable for the climate in Nanyang and are prone to moisture and rot.
Other than that, there are no problems.
It was also at the beginning that Nanyang took over He Xi's printing of a large number of banknotes, which allowed the monetary system to survive the most dangerous period. Now it is much better.
Yang Shiqi said: "The matter of exchanging treasure banknotes is almost ready. There are branches in Nanyang, Suzhou, Songjiang, Fuzhou, and Guangzhou. But there is not much business yet. But other currency reforms still need your attention." "
He Xi paid attention to three aspects of the reform of other aspects of currency. The first was to increase auxiliary coins and mint copper coins.
Zhu Yuanzhang was actually doing this. After all, the copper transported from Sulu also had to be used.
This is also a problem He Xi discovered. As far as currency is concerned, the minimum denomination of a bank note is one tael, and even one tael is not too much. But for people's daily lives, one or two is too much. In the past, the auxiliary currency market was filled with a large amount of copper coins, treasure banknotes, and broken silver.
In fact, banknotes are not suitable for daily use in many situations.
Just like many people in Nanyang think that banknotes are easy to rot.
This is also true.
Even the banknotes of later generations will rot easily after being used for a long time. Not to mention that the printing technology and papermaking technology of this era are not as good as those of later generations. Of course, this does not mean that very high-quality paper cannot be produced.
Please do not underestimate the capabilities of China's top craftsmen.
If you use silk as the material to make paper, you will definitely be able to make very high quality paper. But that would be too costly.
Banknotes were printed on a large scale.
After thinking about it, He Xi could only respect reality and the usage habits of customers in this era, that is, let the people use more coins, that is, copper coins, and small silver dollars. Only use banknotes when using it on a large scale.
Of course, this large amount is one yuan, or one tael.
All the money above one tael was paid with banknotes.
The second is the reform of bank notes. He Xi decided to change the bank notes into silver dollars. From now on, there will be no one-tael banknotes, only one-yuan banknotes.
The reason for this is also because of quality issues. Although silk cannot be used to make paper, He Xi is also preparing to improve the banknote paper by adding cotton, linen, and a small amount of silkworm cocoons. Used to make better paper. Make a balance between quality and price.
In addition, it is to unify the currency. Let the broken silver withdraw from circulation and make the world's currency unified. It is more convenient for commercial exchanges inside and outside the Ming Dynasty.
He Xi said: "Is there no plan below?"
Yang Shiqi said: "There are several plans prepared below. I met with Tie Xuan and I think they are all good."
He Xi said: "I won't look at it and will send it directly to the capital. Just let His Majesty take a look. This matter will ultimately need to be decided by Your Majesty."
He Xi felt a little worried in her heart, wondering what Zhu Yuanzhang was thinking.
Will you continue to support him?
After all, Nanjing is the political center. No matter how big a business He Xi does in Beijing, it still depends on Nanjing's face.
And He Xi clearly realized that this incident was not without damage. He Xi just introduced banks and the modern financial system, which does not mean that there was no financial system in ancient China.
Almost all pawn shops and gold and silver shops all over the country do this.
A pawn shop is for pawning things, which can be said to be mortgage loans, while a gold and silver shop is for currency exchange. This is all very profitable. It can be said that most of the power that non-local gangsters cannot do is in the hands of the local gentry.
You must know the methods used by the Chinese landlord class to exploit the people. It is never a single one, there is not only direct exploitation, but also indirect exploitation, that is, financial exploitation, that is, usury.
Some people died, but not completely...
