Chapter 134 The financial tsunami is coming
To issue new banknotes.
Ding Xian established the Nanjing Central Bank, of course. They claim that there is no such thing as Nanjing.
In order to maintain the value of the currency, the Nanjing Central Bank has maintained the exchange of new Nanjing banknotes for gold, silver, copper coins, and old Beijing banknotes. In particular, the exchange rate for old Beijing banknotes is one-to-one.
It's just that people here feel a problem. Recently, more and more people come to exchange Beijing banknotes.
Because many people don't know.
The first wave of attacks has already started in Beijing.
That is, Beijing has restricted the exchange of old Beijing banknotes and new Nanjing banknotes.
From the moment the new Nanjing banknotes appeared, Beijing has not recognized the new Nanjing banknotes. It is impossible to use it on the Beijing market. But Nanjing's new banknotes also have practical needs. Don't say anything else.
In the Nanjing market, new banknotes must be used most of the time.
Moreover, there is compulsory foreign exchange settlement at the customs, that is, the money earned from Beijing must be exchanged for new banknotes.
When a currency has value. Even if it is said that circulation is not allowed, it cannot stop private circulation.
Anyway, Nanjing announced that the exchange of new Nanjing banknotes and old Beijing banknotes is one-to-one. And between the north and the south, the banking system is broken. It is impossible to directly deposit and withdraw money from a bank in Nanjing to Beijing.
There are also some banks that privately exchange currencies from the north and the south, located in various ports in the north.
Flip the North and South banknotes back and forth to earn a handling fee.
Beijing has always turned a blind eye to these matters. Otherwise, He Xi needs the market in Nanjing, otherwise where would so many goods from Beijing be sold? Although this sales method is smuggling. But overall it is still beneficial to Beijing.
He Xi naturally turned a blind eye.
But things are different now.
He Xi slashed the banknotes and imposed strict sanctions on new banknotes. All new banknotes found within Beijing would be confiscated. Because the legality of such banknotes has never been recognized in imperial law. It is treated as counterfeit banknotes.
Even those who possess a large number of counterfeit banknotes will be charged with unpredictable motives.
In an instant, the trade between Beijing and Nanjing was completely severed.
This also has implications for Beijing.
After all, Nanjing is Beijing’s product dumping ground.
In this way, the 300 million banknotes that Yao Guangxiao brought to the south would be put to use. With the support of Wei Guogong and Cao Guogong, he immediately took over the banknote exchange between goods from the north and the south. Without further ado, the price of the new Nanjing banknotes to the old Beijing banknotes was reduced by 100%, that is, two yuan of the new Nanjing banknotes was exchanged for one yuan of the old Beijing banknotes.
Naturally, many businessmen are unwilling to pay such a price.
However, if they want to buy goods from Beijing, the new banknotes in their hands are just waste paper. Some businessmen even sell raw materials and other goods to Beijing, but Beijing gives them new banknotes. Without him, the imperial court seized a lot of new banknotes and had no place to spend them.
In addition, the number of new banknotes issued by Ding Xian is very large.
All aspects of commerce require old Beijing banknotes.
The Nanjing Central Bank still maintains a one-to-one exchange of new banknotes and old banknotes.
So, countless people came to exchange. There was even a long queue, blocking the streets of Nanjing.
Ding Xian's reaction to this matter was very slow.
This is not to blame for Ding Xian. This matter is a new thing for him, and He Xi has long established a complete system in Beijing to monitor the prices of all bulk commodities on the market. He Xi himself still maintains influence over state-owned enterprises, the Liaodong Group, and even all big businessmen.
In addition, the imperial court has the power to formulate financial policies and enforce law enforcement.
He Xi will soon know what's going on in the market.
Even banks have a dedicated economic agency. Although there is no result so far. But at least he's not deaf or blind.
And Ding Xian also has his own intelligence agency. But there is no such specialized economic survey agency. Many things happened
Only later did he understand.
But by that time, the Nanjing Central Bank had already exchanged more than half of the old Beijing banknotes. This still gives a lot of restrictions. For example, daily limit redemption, etc. This is also a way to learn from Beijing.
There is another thing that scares Ding Xian even more.
That is, many merchants on the market no longer accept new banknotes, but instead use old banknotes.
After all, the old banknotes themselves had been circulating throughout the Ming Dynasty for a long time. Ordinary people don't know the problem behind it. All they know is that their new banknotes always depreciate in value. Old banknotes do not depreciate in value.
In fact, the old banknotes have also devalued, just because Beijing's industry exploits Nanjing's agricultural society, and Beijing's currency has a premium here in Nanjing. In addition, everyone can see the depreciation of Nanjing's new banknotes.
On the contrary, the people feel that Beijing's old banknotes have not depreciated in value.
In this situation, Yao Guangxiao didn't know where to start.
He Xi usually forcibly arrests those who use old banknotes.
But Yao Guangxiao was opportunistic when issuing new banknotes. The foundation of the new banknotes is inherently deficient.
The issuance of old banknotes in Beijing is based on gold and silver. Although most of the gold in the world today is in the central bank, the ratio to the total amount of money issued is already a secret. At least it is rarely announced to the public. Many people think it should be less than one to ten. In other words, one tael previously corresponded to one yuan, but now one tael corresponds to ten yuan.
Some people even suggested adjusting it. Previously, one tael corresponded to one yuan, which was equivalent to one thousand copper coins. Now many people suggest that it corresponds to one hundred copper coins. Anyway, many people are already melting copper coins into copperware.
Because copper coins are already lower than copper prices.
Others suggested that iron money could return to the world. From now on, one dollar corresponds to a thousand coins which will be exchanged for iron money.
etc.
Beijing’s old banknotes will all face this problem. Not to mention that the amount of new banknotes issued by Ding Xian is also quite large. Otherwise, how could it be possible to support the cost of Nanjing's war against Beijing?
When the new banknotes were issued, the Nanjing court did not have much gold, silver, and copper coins because they had spent them all before. The gold and silver that have been handed over from various places over the years has been retained, but only one to twenty million taels. This is what was retained from the income of gold and silver and the expenditure of new banknotes.
But compared to the hundreds of millions of new banknotes issued. It's impossible to hold up this plate.
Therefore, when Ding Xian issued them, he also included old Beijing banknotes as one of his reserves. However, in this way, the depreciation of Beijing's old banknotes also affects Nanjing's new banknotes. More importantly, Yao Guangxiao cannot deny the value of old Beijing banknotes, because that would be denying himself.
Since the value of old Beijing banknotes cannot be denied, Ding Xian cannot block the circulation of old Beijing banknotes. Although Ding Xian mandates that new banknotes must be used when paying taxes and other dealings with the government. But the problem is that the Nanjing court's intervention in business was really limited. There are a large number of commercial circulation links that are beyond the control of the imperial court.
These merchants used old banknotes, and Ding Xian had no choice.
He can't let Yingtianfu Yamen go door to door to search.
It's not that he doesn't want to do this, but he knows that doing so will cause greater trouble. Not to mention that Nanjing is a land of hidden dragons and crouching tigers. I don’t know who has a big boss behind him. Let’s just talk about the virtues of Nanjing’s government officials. If they do such things, they will not stop until they cause complaints both inside and outside Nanjing.
By then, Ding Xian will still have to clean up the mess.
More importantly, does it work?
Zhu Yuanzhang couldn't even force people to use a certain kind of banknotes. If Zhu Yuanzhang could do it, Zhu Yuanzhang's treasure banknotes would fall into waste paper. It’s strange that Ding Xian can do it.
Only then did Ding Xian understand what financial suicide was.
What worries him more is what lies behind.
In fact, on the black market, the price of new banknotes and old banknotes is not always one-to-one. But the ratios are not much different. So the current situation can still be maintained. But Cao Guogong and Wei Guogong jointly brought the ratio to one to two.
Prices on the black market have also fallen in response. Of course. Not even one to two. Just look at Nan
The Central Bank of Beijing cannot hold on. If the Nanjing Central Bank stopped the one-to-one exchange of new Nanjing banknotes and old Beijing banknotes. So it's hard to say how far the price of new banknotes will fall.
But if he doesn't stop, Ding Xian will no longer have any old banknote reserves.
This made Ding Xian anxious.
