Chapter 489： Currency reform

In addition to strengthening the control of the military, Wu Changqing's most important thing is to develop the economy.

Only by developing the economy can the people live a good life.

To this end, Wu Changqing began to promulgate a currency law.

He is about to start with currency.

Before he started, he couldn't help but feel a little nervous. After all, this matter had a major impact and might even cause social unrest.

The new currency law stipulates that only the imperial court has the power to mint coins. It is illegal for other private institutions to mint coins, and it is a felony of ransacking the head.

Of course, privately minting copper coins was also a felony in the past.

However, in the past, privately minted copper coins were extremely difficult for the court to monitor.

The difficulty of casting copper coins is extremely low, and any bank with a little bit of strength can do imitation.

Moreover, the copper coins they cast will contain less copper than the court's copper coins.

Regardless of the fact that a copper coin can only contain a small amount of copper, the number of coins cast is more, several million, and after tens of millions of coins, the profit will be considerable.

For silver, there was no fixed standard before, and the value was determined by weight.

Many unscrupulous merchants melt the silver nuggets and mix them with other metals.

Eight coins of silver can also be used as one or two.

The demise of Ming Dynasty actually has a lot to do with the currency of silver.

With the influx of silver in large quantities, the Bank clearly established a silver standard system.

However, the Ming court did not have the corresponding means to control the silver.

This led to the fact that the government could not decide on the value and direction of silver, and then there was a ‘money shortage’ in the court.

On the one hand, private merchants have more and more silver in their hands, and prices have risen sharply.

On the other hand, the main tax revenue of the Ming court came from farmers who had little money, and they did not receive much money tax at all.

In addition to the years of war, the imperial court became poorer and poorer. In the end, even the military payment was not issued, and the soldiers were naturally unwilling to sell their lives.

And when those silvers are in the hands of the merchants, they have nowhere to spend, they can only hoard them and hide them in the cellar.

Wealth that does not participate in circulation is actually meaningless and cannot promote economic prosperity.

According to authoritative statistics, there were as much as 250 million taels of silver in private cellars in the late Ming Dynasty.

Had it not been for these animals to hide so much money, Dahua's current economy would not have been able to take off so fast.

In the past, businessmen had money and had no place to spend, and they could invest in unprofitable projects.

Now Dahua has more projects and more luxury goods. Then they dug up the money in the cellar, either for pleasure or for investment.

Silver flowed into the market, creating unprecedented prosperity.

If it weren't for the wealth that these businessmen had hoarded in the past, no matter how high the profits of Dahua's current projects, it would take time to make money, and it would not be possible to skyrocket so much tax overnight.

These money are all the wealth that the landlord lords saved before, but now they are only used out.

From this point of view, Daming was actually quite pitiful and made Wu Changqing a wedding dress.

The money earned has nothing to do with the court, and now it's all cheap by Dahua.

In order to avoid repeating the mistakes of Ming Dynasty, Wu Changqing must control the currency in his hands. Minting is only the first step.

In order to prevent private money from making money and to increase the difficulty of making money, Wu Changqing stipulated the standard of currency in the future.

The government ordered several coin-minting machines for this purpose, and created some very complicated patterns.

The folks have no such ability to create such a complicated touch tool, which means that they cannot imitate and forge. Others can see the authenticity of the coined currency at a glance.

The currency newly minted by the government is round, similar to the later generations of Oceans, but not divided into three specifications.

The largest denomination is ten yuan, which corresponds to the previous ten taels. There is one yuan, five cents, corresponding to the previous one, two, and five dollars.

However, the face value is ten yuan, but its silver content is far less than ten taels, up to nine taels.

The government must also use this wave of money to make a financial income.

This income should not be underestimated, it is equivalent to a 10% profit.

For one hundred million yuan, you can earn ten million yuan.

These are only silver coins. For copper coins, Dahua will also use new molds to increase the difficulty of coining.

Then a unified casting of Yongxing Tongbao, one thousand Yongxing Tongbao, equal to one yuan, set the official exchange rate, no longer like before, the exchange price of copper and silver often fluctuate.

If there is volatility, merchants can take advantage of the exchange rate fluctuations to make money.

Setting a fixed exchange rate now can solve this problem.

Of course, fixed exchange rates also have risks, that is, as the amount of silver on the market increases, the value of silver itself will decrease.

At that time, there may be a very funny scene, a commodity worth one yuan, it costs one yuan to buy with silver coins, but only 900 pieces with copper coins.

The official exchange rate is one to one thousand, which will cause the people to deliberately collect copper coins, and they are unwilling to receive silver coins and spend copper coins in transactions.

This situation will inevitably affect the economy.

After all, a large number of commercial activities require change.

The issuance of currency often affects the whole body, and it is easy for things to happen if not.

Therefore, Wu Changqing must firmly control the coinage right in the hands of the government.

Only when the government can control the number of silver and copper coins on the market can it control prices.

Then increase or decrease the amount of currency to control inflation and deflation. Appropriate inflation can stimulate the economy, and appropriate deflation can improve the quality of life of the people.

These are all very complicated and macroscopic methods, and Dahua is not able to use them for the time being, and lacks the corresponding economic talents.

If we rush into regulation, problems might arise.

However, after firmly controlling the coinage right in their hands, they have the means to regulate and control at any time.

In addition to silver and copper coins, Wu Changqing also introduced an official unified silver ticket.

Wu Changqing defined the bank note as a bill, not a currency. But in fact, this is a paper currency, it's just a different statement.

This is to pave the way for a full-scale banknote in the future. First, let a small amount of banknotes circulate on the market and re-establish the confidence of the people in banknotes.

When the time is right in the future, full paper currency will be implemented.

Wu Changqing stipulated that in the future, private banks shall not issue silver notes privately.

All bank notes can only be issued by the Royal Bank.

The bank notes issued by the Royal Bank are beautiful and have strong anti-counterfeiting capabilities. They use the latest inkjet printing technology, which is a high-tech that no one has mastered in the private sector.

At the same time, the Royal Bank promised that the silver bills can be cashed in the same amount of silver coins at any time.

With royal credit as a guarantee, as soon as this banknote is released, there will be no room for the banknotes of other banks.

After all, how does the credibility of a private bank compare with that of the emperor Wu Changqing?

The silver bills are temporarily set at three denominations, ten yuan, one hundred yuan, and one thousand yuan.

One thousand yuan is quite a lot of money, and only the super rich can use this face value.

As for the face value of 10,000 yuan, there is no need at all.

Businesses of more than one hundred thousand yuan at a time are very rare, and one hundred thousand yuan is only one hundred thousand yuan face-value silver bills, which is very convenient.

The issuance of silver bills can bring a huge amount of income to the court.

After all, as long as the holders of the silver bills do not run at the same time, the Royal Bank does not have to hoard the same amount of silver coins.

Generally speaking, one-fifth, or even one-tenth of the amount of silver coins is sufficient.

The extra silver coins can be spent.

This is equivalent to the fact that as long as the government issues one hundred million silver notes, one hundred and eighty million yuan can be used, and a full 80 million yuan will be made in vain.

Of course, Dahua needs to ensure sustained economic growth and abundant investment opportunities to play this way.

If economic development stagnates, investment opportunities diminish, and businessmen have nowhere to spend their money, they will continue to hoard silver as before.

At that time, there will be a large number of runs, which will exaggerate the Royal Bank, lead to bankruptcy of the Royal Bank, and trigger social unrest.

The current economic situation of Dahua is very good, but there is no need to worry about this issue.

Increasing the mining of private capital is what they should do now. The address of the latest chapter of the aircraft carrier I built in Daming: https://www.novelhall.com/book/149212.htmlI built the full text of the aircraft carrier in Daming to read the address: https://www.novelhall.com/read/149212/I built the aircraft carrier txt download address in Daming: https://www.novelhall.com/down/149212.htmlI read it on the mobile phone built by Daming: https://m.novelhall.com/read/149212/In order to facilitate the next reading, you can click \"Favorites\" below to record this (Chapter 489 Currency Reform) reading record and open it next time You can see it on the bookshelf! If you like "I Build an Aircraft Carrier in Daming", please recommend this book to your friends (QQ, blog, WeChat, etc.) ,Thank you for your support! ! (www.novelhall.com)