my wonderful zoo

Chapter 249 Gold Standard

December [-]th is another month’s salary payment day.

What is difficult for all public officials to accept is that last month’s new money was still made of copper, but this month’s new money has turned directly into banknotes.

After working hard for a month, the military government only gives you a small stack of palm-sized pieces of paper.

I really want to curse! !
But compared with the last time, this new money issuance seems calm.

"These banknotes are the same as copper coins and silver coins. You can buy things in the stores opened by the military government. They will not depreciate just because they are banknotes." The accountants themselves couldn't help but explain to everyone: "The most important thing is , if someone feels that paper money is not practical to hold in their hands, they can go to the military government bank to exchange for copper coins or silver coins without any handling fees."

"Really? One penny of banknotes can be exchanged for one penny of copper coins?" someone couldn't help but ask.

"It's absolutely true, the military government will not lie." The accountant explained.

"Then why not just issue copper coins?" someone else asked.

"For the convenience of carrying and distributing, you see that your monthly salary is [-] Wen. If it is exchanged for copper coins, it would weigh more than ten catties. How inconvenient is it for you to carry it?" The accountant replied: "Even if you can carry it , the salaries of hundreds of people here weigh several thousand kilograms together, and we can’t even lift it.”

"That makes sense!" "That's true..."

"You can give out silver coins. One silver coin is worth a thousand copper coins and only weighs five cents." Someone retorted.

People are so ridiculous. Last month, they felt that silver coins were too light and not as valuable as silver coins, but now they feel that silver coins are more affordable.

"The military government will become even more powerful. In the future, more and more people will receive salaries every month. The entire Guangnan East Road now has tens of thousands of public employees, tens of thousands of workers, and more than [-] soldiers. These people's Salaries are paid out once a month. How many people do you think are needed to transport so much money, all in copper and silver coins? How many people are required to escort it?" the accountant asked.

"Now copper coins and silver coins are stored in the bank, and the banknotes given to you can also be used to buy things. Even if you are not at ease, you can go to the bank and exchange them for copper coins and silver coins. Wouldn't it be much more convenient?"

"Who has any questions?" the accountant finally asked.

"No more...", "Continue to send money quickly, we are still waiting to go home for dinner."...

No one dared to continue stabbing. The ending of those mine owners in Zengcheng County was too unforgettable.

People say that you kill chickens to scare monkeys, but the military government directly killed monkeys to scare chickens, and the effect was terrible.

If the accountant had not taken the initiative to explain just now, it is estimated that no one would have asked questions at the salary distribution site today.

……

Compared with the coldness of the previous few days, on the day when the salaries were paid, there were long queues at the gates of the banks in various states and counties.

These were all public officials who exchanged paper money for metal currency.

"Want silver coins or copper coins?"

"It's all copper coins." Some people don't really believe in the military government.

...

"I want two silver coins, and the rest will be exchanged for copper coins." Some people believed in the military government, even if the silver coins were much lighter than silver of the same value.

..."Why do you have so many banknotes? We also have gold coins. One gold coin is equivalent to ten thousand coins. Let's see if you want to exchange it for gold coins, which is easier to carry." Someone came to exchange 10,000+ banknotes, probably from a big family people.

"Let me see...it's so beautiful, but it's so light. How heavy it is."

"Five dollars."

"Isn't this similar to silver coins?" The visitor thought about it and realized that it was impossible to exchange copper coins for they were too heavy. If exchanged for silver coins, the discount would be 1%. In comparison, gold is more valuable than silver. The ratio of gold to silver in the private sector exceeds 15:[-].

Obviously, gold coins are more cost-effective.

"I want gold coins."

...

These people don't know that the military government has started to develop the gold mines in Daliuqiu Island and Ye County, and mined a large amount of gold, but in order to avoid impacting the private gold and silver market and causing gold to be compiled, it has not been directly released.

Gold in troubled times, in today's world, the value of gold and silver will only increase. The military government can release the mined gold bit by bit by minting gold coins, thereby earning a huge price difference.

"Look, as long as our metal currency exchange business ensures supply, there will be fewer and fewer people exchanging banknotes for metal currency. When everyone gets used to banknotes, the credibility of our military government bank will be established. Then you don’t have to worry about no one coming to save your money.” Chen Xun felt very relieved.

Now, none of this has exceeded his expectations, and no serious or unplanned emergencies have occurred.

Everything is going smooth.

"Can the mint's output keep up?" Lu Hui asked from the side.

"No problem, all the new steam engines produced this month were given to the mint, and all the smelters also put the needs of the mint as the top priority. As soon as the machine was turned on, the coins were forged like flowing water. The speed is very fast, and it is estimated that the goal set by the governor will be completed in another half month." Liu Yu replied.

There are 1000 million copper coins, 100 million silver coins, and [-] gold coins, which is enough for the military government for half a year.

"The casting of metal currency does not need to stop. All the copper coins, silver, and gold seized in Kaifeng Prefecture can be melted and cast into new coins. Copper coins and silver coins can be openly issued, and gold coins can be minted. Only a small amount should be released, as long as it is enough, so that it can be put on the market. It's best if you feel a little tight." Chen Xun arranged, and then continued to remind the two of them:
"Although it is good to feel that money comes out of thin air, you must not be greedy. So when printing banknotes, you must follow what I said. How much gold reserves do we have? We can only print five times as many banknotes at most. Without me, Before the order, it is absolutely impossible to overprint and overissue. Otherwise, once the reputation of banknotes is damaged, it will never be possible to re-establish it.”

"I sincerely follow the instructions of the Governor." Liu Yu replied seriously.

The issuance of purely credit-based currency is based on the premise that statistics have developed to a certain extent and social productivity is highly developed. Otherwise, it is impossible for politicians to know whether they are underissuing or overissuing.

Therefore, Chen Xun can only link the currency issued by the military government to gold and implement the gold standard system.

Chen Xun remembers that it was already in the 70s or 80s when the US dollar was decoupled from gold.At that time, technology was already very advanced, and the world's first currency was decoupled from gold.

It can be seen that in order to issue a purely credit-based currency, social productivity must be developed to a very high level, and the total social wealth must far exceed the value of gold reserves.

"In a few days, when the situation stabilizes, I will go north." Chen Xun said helplessly.

"Why are you so anxious and don't wait until the New Year is over before leaving?" Lu Hui asked.

"The latest information is that we suddenly started a war with the Kingdom of Koryo, which stimulated the neighboring countries of Japan and Jin. The Kingdom of Japan is already gathering troops to support the Kingdom of Koryo, and the Kingdom of Jin is also ready to make a move. It is estimated that it may support the Kingdom of Koryo from overland." Chen Xun replied.

(End of this chapter)