C1185 Credit Crash

As long as the state exists, the tax system will never end, and the use of taxes as endorsement for paper money and credit was really at the forefront of the era in the 19th century.

Actually, it is very easy to build up the credit of paper money. As long as the country wants to push forward the credit of paper money, there are too many methods that can be used.

For example, five years ago, when Letian Firm took advantage of the war in Jiang-Nan to purchase a lot of land near the port area. At that time, Xiao Letian would have already prepared for a later economic recovery.

The amount of land here was so large that no one could count it. If a merchant wanted to rent or purchase the land, Xiao Letian could make a rule that he would only accept notes from the south side and not cash. This way, the credit level of the notes would be even higher.

Similarly, the choice of cash or paper money for many important assets required a guide. As long as the method was ingenious, it would be easy to raise the paper money's credit rating.

What is the core of national credit? In the end, the only word that mattered was safety. The ability of a country to provide a secure living environment for its people, as well as a secure trading environment for commercial transactions and massive amounts of money, are all important components of credit.

And what provides security? Without a strong military force, no matter how much wealth you create, you are just a fat sheep in the eyes of outsiders.

The Song Dynasty was a very good example, and the long campaign against the pirates in the middle of tomorrow proved this point. As for the Republic of late Qing, there was no need to even mention that.

And the current crisis in Jiangnan was still a war crisis.

Ever since Xiao Letian had appeared in the world, he had been invincible. He had liberated the Ryukyu, attacked and defended three times, once attacked and captured the Beijing, and once went on an expedition to Fu Sang Japan … Not to mention a series of victories in Europe.

It was precisely a series of victories that gave people an undefeatable illusion, and also gave people a strong sense of security. People definitely had a future ahead of them, it was very safe to do business with them in the Ryukyu, that was why people would hand over taxes to you.

When all is said and done, money has the greatest desire to avoid danger. This desire to do so even surpasses the tendency. If you can't even protect us, why should we give you a tax?

Money has no borders, and once they think the region is dangerous, they run away, just as America's global strategy is for generations to come.

That area is rich enough to be a fat sheep, so you can rest assured that he will create conflict, unrest, and war in that area, with the sole purpose of forcing the safe funds to fly to the United States.

America's strategy was very clear, but it was also very domineering. Who asked them to be the number one military force in the entire world?

Xiao Letian was currently not at the top of the food chain, although on the surface he looked very dazzling, but he knew his own business, these rays of light could trick the citizens, but towards the real politicians and mega-merchant, the difference between Xiao Letian and the strong in Europe was still obvious.

To be able to win a battle in Europe was only based on Prussian strategy, including the destruction of the French Expeditionary Force. Actually, the so-called Expeditionary forces s of the ten battleships, in the eyes of the Europeans, were not even worth a fart.

The appearance of the Far Eastern Volunteer Army had completely infuriated the Tsar. The Baltic Sea Fleet had sent over 30,000 troops to support the Russian Army, even the British did not dare underestimate them.

Could Xiao Letian successfully pass? Would he win this war or not?

The market gave a clear answer. When Russian fleet had just left the Baltic Sea, news of the Expeditionary forces had only spread among the foreign merchants in the south of the river. The citizens of the Great Qing Empire did not know about this news.

The top Bankers s such as Citibank, France Bank, HSBC, and Standard Chartered Bank had already started their secret meeting. From that day onwards, the foreign banks in the leasing world began to hoard physical silver coins, gradually reducing the amount of storage space of Shaw's Notes.

At that time, the market did not have much of a reaction, only until the Expeditionary forces fleet sailed into the Atlantic Ocean and entered the coastal waters of Africa did the merchants of Great Qing find out about this news. Many people began to wait and see, what was most obvious was that a few Big Merchant s stopped their large investment projects one after another.

For example, the transaction of land, the transaction of factories and shops, the investment in the construction workshop, the tea hill, the reeling shop, and other major projects had all been temporarily called off.

However, at that time, even more people didn't know about it, so the credit of the paper money hadn't changed at all. The citizens were still using paper money to trade in their lives, completely unaware of the impending economic crisis.

The Russian fleet continued to head south, circling around South Africa's Cape of Good Hope to enter the Indian Ocean. At this time, there were rumors circulating in Jiangnan already, and all the small shopkeepers who were selling acupuncture points and making small talk would chat with their frequent customers about the upcoming war. The teahouses, restaurants, brothels and opera gardens would also be buzzing with whispers.

However, at that time, the people did not think that the war in the Far East would have any effect on Jiangnan. After all, it was too far away and people did not even know where the Haishenwai was.

Life still had to be going on day by day, but the price on the market had unwittingly risen a little.

The Russian fleet headed straight for India. At this time, the foreign Bankers s in Shanghai finally started to take action, and at the same time, rumors flew all over the south of the river, and the foreign banks simultaneously stopped trading in the Shaw's's Notes.

The fuse of the economic crisis was finally lit.

The westerners' opinions made the Jiangnan Big Merchant feel that the storm was approaching. Could it be that the worst was about to happen? Everyone chose to hold on to their cash tightly as they desperately tried to spend their money.

Fortunately, when the paper money was released, they did not promise to exchange their money. If they had promised, all of Letian Bank's branch names in Jiangnan would probably be crushed by the tide of people exchanging money.

But even so, there were still some citizens who wanted to ask around at the bank. The more people there were, the more chaotic the order became.

There would always be conflicts with more people, the people who were in a state of love and fear would soon lose their minds, there were even people who shamelessly asked the Letian Bank to exchange their money for their money, then laid on the ground and did not leave.

A shameless person would bring in endless rascals. In the end, the only thing they could do was ask the government to suppress them. Once the suppression appeared, it would worsen the credit collapse and the purchasing power of the paper money would begin to fall again.