Zhu Yunzhen frowned slightly.
Of course he had heard about the problem of Ming Dynasty treasure banknotes.
In the early years of Hongwu, Ming Dynasty used copper coins as legal tender.
However, the war with the Yuan Dynasty was still ongoing at that time. A large amount of copper was used in war and other aspects, and there was a serious shortage of raw materials for making copper coins.
On the other hand, the weight of copper coins also limits its circulation.
Small monetary transactions are fine.
Large quantities of copper coins are quite inconvenient.
So, in the seventh year of Hongwu, the Ming Dynasty set up a treasure bank collection department.
In the eighth year of Hongwu's reign, the printing of Ming Dynasty currency notes officially began, replacing copper coins.
The Ming Dynasty treasure banknotes played a vital role in the consolidation of the political power and the recovery of the economy after the founding of the Ming Dynasty.
Financial difficulties were alleviated and huge military expenditures were financed.
By printing treasure banknotes, the power of currency casting and circulation in society is also controlled by the government.
Control the country's economic lifeline accordingly.
But although Lao Zhu was a ruthless man who conquered the world as a beggar, his ability was unparalleled in ancient and modern times.
But an inch is longer and a ruler is shorter.
Lao Zhu has no knowledge of modern financial knowledge.
The Ming Dynasty banknotes did not have any gold or silver goods as collateral, nor did they have reserves. They were printed out of thin air.
Lao Zhu directly and domineeringly stipulated that treasure banknotes can only be issued, not withdrawn, and must be used by the public.
There is no strict limit on the number of prints.
When the court needs money, it starts printing money and prints it like crazy.
At its peak, the number of treasure banknotes printed in a year was much greater than the taxes collected nationwide.
It is equivalent to collecting several times more taxes out of thin air by printing money.
At this time, the Ming Dynasty was still in an agricultural society and did not need so many banknotes in circulation.
The imperial court's financial difficulties were temporarily solved, but the people didn't buy it anymore.
The value of treasure banknotes depreciated rapidly, and people refused to use them.
In this regard, Lao Zhu not only did not reflect on the issue of the currency issuance system, but instead ordered local governments to use state violence to force people to use it.
This has led to many cases and many people have been convicted, but the results are still very little.
The laws of economics are difficult to fight.
The depreciation rate of treasure banknotes is getting faster and faster, and the people are becoming more and more resistant to using them.
Before that, Zhu Yunzhen had actually thought about this issue more than once.
But he didn't think of a good solution for a while.
That's why I didn't write to Lao Zhu to give any suggestions.
It's easy to see the problem.
Many officials in the Ming Dynasty pointed out that this was due to the excessive issuance of treasure banknotes, and the court should significantly reduce the printing of treasure banknotes.
But, how to reduce it?
The annual income and expenses of the Household Department are all listed there.
The income from printing treasure banknotes accounts for half of the total income of the Ministry of Household Affairs.
After the reduction, what did the court use?
Do all officials still need a salary?
Does the army still need military pay?
Should all construction projects still be carried out?
Therefore, even though it was watching the depreciation of treasure banknotes, the imperial court was still unable to stop printing banknotes.
Instead, more and more were printed.
Because after devaluation, only by printing more can we achieve the same value as before.
So a vicious cycle is formed.
Everyone knows that continuing like this is not the answer, but no one has a solution.
In fact, it’s not just the Ming Dynasty.
In history, the Song Dynasty, the Yuan Dynasty, and even the famous gold yuan coupons and the famous Zimbabwean coins in later generations... weren't they all like this?
No wonder some people say that printing money is like taking drugs.
We all know that if we smoke it again we will die, but we can't help but take another puff.
If Suzhou wants to develop commerce and trade, it cannot do without currency.
But the current situation of the Ming Dynasty Baochao can no longer bear the role of a general equivalent of currency.
Naturally, it will greatly hinder the development of Suzhou's commercial economy.
Zhu Yunzhen, who had some financial knowledge from later generations, saw deeper than them.
When the currency becomes like this, it affects more than just the country's finances.
The entire financial system of Ming Dynasty was actually on the verge of collapse.
However, because the Ming Dynasty is still an agricultural society, its impact does not appear to be that great.
But he wanted to lead Ming Dynasty into a new era, where industry needed to develop and commerce needed to take off.
He knew that currency reform was necessary.
But how easy is it?
The current financial situation of Ming Dynasty is such that they don’t even know how to raise reserves.
This is no small sum of money.
Zhu Yunxuan looked at Liu Hanmo and asked, "Do you have any good ideas?"
Liu Hanmo took a deep breath, bent down and cupped his hands and said: "My official suggested that the Ming Dynasty treasure banknotes should be abolished in Suzhou and that silver coins and copper coins should be used as currency."
Zhu Yunzhen was silent.
This is indeed a way to draw money from under the cauldron.
Historically, the Ming Dynasty Baochao completely collapsed within a few years.
In the later Ming Dynasty, silver became the main currency.
But this has brought about a series of serious problems.
There were very few silver mines in the Ming Dynasty, and silver mainly came from overseas trade.
As a result, the country lost the right to issue and control currency.
This has a profound impact on future generations.
He has been thinking about how to save the Ming Dynasty Baochao instead of abolishing it.
Although gold and silver are natural currencies, the power of coinage is a vital power that must be firmly controlled by the state.
Zhu Yunxuan sighed softly: "The imperial court has insufficient expenditures and needs to print money to maintain it."
Liu Hanmo said: "Your Highness Taisun, I have an idea. After the Ming Dynasty treasure banknotes are abolished, the court can borrow money and food from wealthy businessmen to raise expenses."
These words were like a flash of light in the darkness, making Zhu Yunzhen's eyes suddenly light up.
One word immediately flashed in his mind - national debt!
"Tell me about it!" he said quickly.
"This is actually a method used by Suzhou Prefecture over the years." Liu Hanmo said: "Suzhou has excessive taxes, making collection extremely difficult."
"Every year when the final date comes, there is still a large amount of money, grain, taxes and taxes that have not been collected, but the deadline set by the imperial court has arrived, and the money and grain must be escorted to Beijing."
"The prefect's Yamen will borrow a sum of money and food from wealthy businessmen in Suzhou, temporarily advance it, and send it to the court first."
"Then, we will continue to collect taxes and grain from those who have not paid them, and return the money and grain collected later to the wealthy businessmen in Suzhou."
"It's just that now many taxes, money and food cannot be paid, and wealthy businessmen are no longer willing to lend money and food to the yamen."
"According to my official opinion, the situation of borrowing money from the imperial court is very different from that of Suzhou Prefecture."
"Since His Highness Taisun is determined to revitalize commerce and use commercial taxes to cover the court's expenses, then he will definitely be able to repay the money."
After he finished speaking, he found that His Highness Taisun had fallen into deep thought.
Suddenly, Zhu Yunzhen suddenly retreated and said: "Hahaha, yes, yes!"
He looked up at Liu Hanmo and said, "Prefect Liu, your suggestions today have given me a great inspiration."
"The Ming Dynasty treasure banknotes must continue to be implemented. The imperial court cannot lose the right to issue and control currency."
Liu Hanmo was stunned for a moment, confused.
His Highness Taisun said that he had inspired him, but he still insisted on issuing Ming Dynasty treasure banknotes. What did he mean?
Zhu Yunxuan did not explain to him, but asked: "How much is the actual value of the Ming Dynasty treasure banknotes currently on the market in Suzhou?"
Liu Hanmo thought for a while and said: "To be honest, the current value of treasure banknotes is extremely confusing."
"Although the court stipulates that new banknotes are of equal value to old banknotes, it is not allowed to raise prices for buyers of old banknotes."
"But among the old banknotes, there are countless counterfeit banknotes, and it is difficult for the court to stop them."
"Therefore, private merchants are unwilling to accept old banknotes. The actual value of old banknotes is often only one-fifth, one-tenth, or even lower than new banknotes."
"As for new banknotes, they are usually only worth about two hundred or so."
Not too bad.
It's not too disparaging.
The new banknotes are equivalent to one-fifth of the face value, which is considered to be a good performance compared to the gold yuan notes.
In this way, the difficulty of his reforms will be reduced a lot.
At least there is the problem of counterfeit money in old banknotes.
He has now set up a technical research and manufacturing bureau. The craftsmen are very enthusiastic about researching technology, so I believe it will not be difficult to solve the problem.
Zhu Yunzhen was thinking in his mind.
I already have a plan for what to do next.
Currency reform is imperative.
Ahhhh, I wrote it a long time ago and forgot to update it!
Please give me a monthly ticket at the beginning of the month!
(End of chapter)
