Chapter 509

"Then, Mr. commentator, first of all, please tell me what the revolving door is?"

Lorraine looked at the bank's plan page by page, but her mind was always echoing a string of beautiful flowers as clear as printing on the first line of the home page.

Revolving door

Although it is likely that this name is Hamilton's whim to use the bank's gate to refer to the national bank plan, Lorraine cares, and even he doesn't know the reason.

Hamilton laughed contentedly.

"If another person asks me, I will tell him, because the gate of the first bank is a three meter high glass revolving door."

"But you are Lorraine Drake and Edward KENWAY, so I can't perfunctory you with the first meaning."

"So you prepared two layers of perfunctory?"

"Who knows? Maybe I'm telling the truth. Maybe I've prepared three or four layers of perfunctory. Anyway, it doesn't cost anything, does it?"

"That makes sense." Lorraine put down the page and sat straight. "I'm all ears."

"Do you know the financial situation of America?" Hamilton asked suddenly.

"Financial situation..." Lorraine pondered for a moment, "heavily in debt?"

"That's just one aspect." Hamilton cocked his legs. "How to say? Because of the sensitivity of wealth, after the victory of the war, the states have always refused to hand over their financial rights, and the interim Ministry of finance is only responsible for a small part of the state government operation funds."

"This kind of operation fund looks like the national tax paid by various states, but in fact it is only a high membership fee. Like the fees paid by your associated press members to the headquarters in Havana every year, we can only decide where to spend the money and can't dictate the source of income."

"Because of this, the debts left over by the war are also in the hands of the state finance." Hamilton disdainfully pulled up his mouth. "Do you know how much debt we owed in that war?"

Lorraine sipped the wine: "4 million? Or 6 million?"

"4 million is our population. The total number of bonds issued by the thirteen states of the United States... Exceeds 10 million pounds."

"That's too..."

Lorraine was shocked by the number.

Tax is the main income model of the country, but it is difficult to implement the high tax rate at the colonial level.

Simply based on 40% of the employed population, an annual per capita income of 20 pounds and a 25% tax rate, the annual tax revenue of the 13 states in the United States is only 8 million pounds. Excluding state expenditure, the amount that can be used to pay off debts will not exceed 500000.

This data is not rigorous, but the magic is that after removing all kinds of advantages and disadvantages, there is often no big gap with the actual results, and the calculation results are of great reference value.

In other words, Americans have to pay off their current debt for 20 years

Hamilton looked at Lorraine playfully: "did you calculate it?"

"Raise taxes? Cut spending?" Lorraine asked.

Hamilton shrugged: "with Congress behind their backs, they can't do anything."

He clapped his hands cheerfully.

"The financial power is not in the hands of the government for the time being, but it will eventually return to the government. We have defined several time nodes. The fastest is the first debt peak in 1787 and the slowest is the second debt peak in 1790."

"But no matter when they give in and when we establish a real U.S. Treasury Department, there must be a condition attached, that is, properly solve the debt crisis in the shortest time and maintain the national credit of the United States."

"The essence of the revolving door plan is the American debt restructuring plan."

Hamilton raised his finger and touched the table with a gentle stroke.

"I put forward this plan to establish a privatized central bank, the first bank of America, following the British model."

"The first task of the first bank is to issue the national currency of the United States of America. The value and form of the dollar have not been determined yet, but we will issue it."

"We will recover old currency and issue new currency through branches in various states, and issue new treasury bonds with limited use of new currency to buy back old debt."

"Issue new currency, buy back old currency, issue new bonds, recover new currency, buy back old bonds, free up credit space and continue to issue new currency."

He circled the table.

"In this way, gold and national credit will continue to flow, and the country will be freed from the debt crisis by replacing the old with the new. It will no longer rely solely on fiscal revenue. This is the revolving door plan."

the tune lingered in the room.

Hamilton finished his plan excitedly, waiting calmly for Lorraine's shocked feedback.

Who knows, Lorraine looked down to read again, as if she hadn't heard it. The only difference is that the speed of turning pages is much faster.

"Er..." after waiting for a long time, Hamilton finally collapsed. "Don't you have any feelings about such a great plan?"

"Yes." Lorraine didn't look up. "It's a terrible thing."

"Ha?"

Lorraine quickly finished reading all the plans and snapped the documents.

"When are you going to set up the Preparatory Committee of the first bank?"

"The Preparatory Committee..." Hamilton showed an embarrassed expression on his face. "Although the revolving door plan has been affirmed by most members of Congress and the president, and strongly supported by Mr. Adams, its name is not right. Before it is officially authorized by Congress..."

"At the latest next year, a preparatory committee will be established. At the same time, it will perform the duties of the mint Committee and begin to demonstrate the issuance mode and other details of new coins."

Hamilton slapped on the table: "are you crazy? The mint committee is beyond the authority of the interim finance department!"

"The new currency is the core of your revolving door plan, and the first bank is just the carrier."

Lorraine pressed the plan with great momentum.

"In my opinion, as long as there are new coins and institutions to implement circulation, your plan can rotate smoothly."

"This is certainly a good thing for the United States, but the first bank is a private bank. How can the interests of shareholders, or my interests, be guaranteed?"

"Savings, loans, national loans and tax deposits, are these national bank businesses not enough to fill your greed?"

"It's not enough!" Lorraine said loudly. "The total share capital of the first bank is 10 million pounds. The American consortium... Oh, can it support 50%?"

"... No."

"How long can a national bank dominated by foreign consortia exist? After losing the national business of the United States, even if the Bank continues to exist, how can you cash in your profits?"

"The risk is not proportional to the output, which is the biggest problem of the revolving door plan."

"Fortunately, you found me first. I happened to have done research on bonds." Lorraine smiled like a fox. "Last year, Drake chamber of Commerce issued development bonds in London with 10% shares as collateral, with a share capital value of 300000, and finally raised 1.14 million pounds at a premium of 280%."

"This proves that bonds can increase in value. As long as the bond investors have been showing the development vitality expected by the transferor, people's expectations for bonds will far exceed its original value, which is the greatest benefit that the Arc de Triomphe plan can bring to shareholders."

Lorraine sat down and sipped his wine to calm his excitement.

"Let's go back to your plan. New currency needs time to circulate and time to accumulate credibility, which all takes time."

"Therefore, the first bank should be established, and the new currency must be issued before the establishment of the first bank. But this will hurt the interests of the bank's shareholders and deprive the shareholders of the benefits of the seigniorage."

"How to balance? Naturally, it is to unify the banking Preparatory Committee and the coinage Committee, so that the original shareholders can preside over the coinage business of xincoin from the beginning, and then smoothly integrate it into the banking business."

"In this way, by the time the bank was established, the new currency had been flowing through for some time. The bank can immediately open the currency bond circulation of the Arc de Triomphe plan, issue a large number of new bonds and replace a large number of old bonds."

"The bank itself will become the largest creditor of the United States, because the national business is in the hands of the bank, and most of the new government debt will flow to the bank."

"Then there is the business behavior of shareholders. Hype bonds, increase the value of bonds, and banks release treasury bonds at the right time to cash in the bank's core profits from the premium. The United States does not need to sacrifice for shareholders. On the contrary, as long as the bond market is strong enough, the United States can gain a lot of national credit from it, and then cast more money to put everything into a virtuous circle."

"The foundation of all this is before the mint Committee of the bank!" Lorraine looked at Hamilton. "Since you can't provide us with long-term interests, create self-profit conditions for us. This is your unshirkable obligation and the future U.S. Treasury Department."

Hamilton frowned and became silent.

"How much can you invest?"

"In 1787, 500000 pounds, in 1790, 1 million pounds. In addition, I can persuade the hundred business association to eat at least 3 million pounds."

"What about the guarantee?"

"At the latest tomorrow evening, Drake chamber of commerce can sign a memorandum of investment intention with the interim finance department. If you need a memorandum of association, give me a month."

"A month later, the two memoranda were signed at the same time. I want to use them to persuade the president and Congress to provide me with secret authorization."

"Yes."

Lorraine held out his hand to Hamilton, who held it tightly with a snap.

"Deal."