Chongzhen revived the Ming Dynasty

"You said they don't trust the court and are unwilling to pay a reserve to the Ministry of Revenue Bank?"

Listening to Tu Wenfu's reply, Zhu Youjian asked with a frown.

The purpose of his proposal for a deposit reserve was to prepare a sum of money for the court. In order to prevent the war in Liaodong from expanding, a temporary allocation was needed.

But he really didn't expect that the businessmen engaged in the financial industry in the Ming Dynasty would not even be willing to do this.

Do they think they can withstand the might of the imperial court?
When Zhu Youjian thought of this, he began to have a murderous intent in his heart.

Since these businessmen won't give him face in peaceful negotiations, don't blame him for resorting to violence.

Taizu's regulations on usury were just the right way to punish these people.

However, Tu Wenfu's subsequent explanation made him understand that those merchants were not unwilling to pay, but simply worried about the court:
"Those merchants said that if the reserve funds were paid to the Ministry of Revenue Bank, they would have no way to stop the Ministry of Revenue from misappropriating them at will."

"So they want to hand it over to the Inner Court Bank and let the Ming Financial Association take care of it."

This explanation left Zhu Youjian speechless, but he could understand it.

It was simply because the Ming Dynasty's reputation was too poor, no wonder merchants were reluctant to give their money to them.

What if the officials in the court are replaced and the policies also change?

The money they paid might be embezzled by the imperial court.

Zhu Youjian was very familiar with the ethics of civil servants and did not dare to guarantee this matter.

And he was very happy that the merchants trusted the Inner Court Bank.

This means that the series of actions he has taken since ascending the throne have gradually convinced merchants of his sincerity as an emperor.

Whether it was the incorporation of industries such as copying newspapers, or the explicit statement that "legal private property is sacred and inviolable", and the inclusion of merchants in parliament, it showed that he, as an emperor, did not discriminate against merchants and wanted to include them in the ruling class.

Because of this, he was supported by many businessmen. The increase in the number of people donating to the government during this period clearly illustrates this point.

On this basis, the reputation of the Inner Court Bank was initially established. Many merchants were willing to deposit their money in the Inner Court Bank and conduct transactions through the bank.

Comparing the Imperial Bank with the Ministry of Revenue Bank, merchants naturally vote with their feet and are more willing to keep their reserves in the Imperial Bank.

After all, the money was embezzled in the inner court bank, and they could find a clear person responsible. If the emperor had any dignity, he would have to give an explanation.

On the contrary, the imperial court might disappear at any time.

No one dares to pin their hopes on the ethics of civil servants!
However, these businessmen are not without conditions. What they hope to do is to establish the Ming Financial Association and participate in the management of reserves.

This approach reminded Zhu Youjian of a famous institution in later generations——

The Federal Reserve System of the United States, abbreviated as the Fed.

If the reserves are managed by the Ming Financial Association, the Financial Association will actually gain some of the power of a central bank.

Maybe in a few years, it will be the Federal Reserve and become the actual controller of the Ming Dynasty.

Zhu Youjian, who was very wary of this, was naturally unwilling at first.

But after careful consideration, he found that this organization was indeed necessary.

Because he was as unsure about the Imperial Bank as he was about the Ministry of Revenue Bank.

He had a deep understanding of how greedy the eunuchs in the palace were. If they relaxed a little, a very wealthy and powerful eunuch might emerge.

It doesn't matter if these people embezzle money from the inner court bank, at most it will affect the inner court's income.

However, if one interferes in the financial industry, it may affect the stability of the entire Ming Dynasty.

Zhu Youjian, who did not trust the eunuchs in the inner court, certainly could not completely hand over this matter concerning the national economy and people's livelihood to them.

So after thinking about it, he said to Tu Wenfu:
"The reserve fund will be placed in the inner court bank. I can agree to this."

"It's best to keep it in the Royal Bank as a reserve fund."

"I think a special committee should be set up to manage it."

"The Inner Court, the Outer Court, and the National Assembly will send people together, and the businessmen in the Financial Association will also be able to elect representatives to supervise."

"This organization is called the Ming Gold and Silver Reserve Committee, or Ming Gold Reserve Committee for short."

“Three commissioners each from the Inner Court, the Outer Court, and the National Assembly will be responsible for its operation.”

"When the imperial court is short of money, it can also borrow from the Gold Reserve Association."

In this way, the power of the Financial Reserve Committee still belongs to the imperial court, but is divided into three parts: the inner court, the outer court, and the National Congress.

Although businessmen can only elect representatives to supervise, they should be satisfied with this given their current status.

Moreover, it is not impossible for businessmen to be among the members sent by Congress. If they are really capable, they can be selected by Congress.

As for the power of the Financial Reserve Committee, it will also be limited. It will form a complete central bank when combined with the Inner Court Bank and the Ministry of Revenue Bank.

Their actual powers in the future will need to be fine-tuned and improved.

After the idea of ​​the Financial Reserves Association was proposed, Tu Wenfu naturally agreed.

Because the reserves were placed in the Royal Bank under the Royal Capital Commission, his power was significantly enhanced.

The fact that Inner Court holds three seats in the Financial Reserve Committee undoubtedly increases his voice in the financial industry.

He hopes to gain control of the financial industry and increase his influence.

So he quickly found Dong Yingju and representatives of the financial industry to discuss the establishment of a financial reserves association.

Dong Yingju was naturally dissatisfied with the emperor's establishment of an inexplicable Financial Savings Association to divide the power of the Ministry of Revenue and Bank.

After the negotiations ended in a bad mood, he filed a complaint before the emperor and requested the abolition of the Financial Reserve Committee.

Zhu Youjian considered the resistance of civil servants, especially Dong Yingju, who realized the role of banks earlier than other officials of the Ministry of Revenue, and therefore proposed the establishment of the Ministry of Revenue Bank.

So he was satisfied with Dong Yingju's financial acumen, but he was also dissatisfied in some aspects.

Because this person has not yet made the silver coins he needs.

So after Dong Yingju complained, he frowned and asked:
"I previously arranged for the Ministry of Revenue to be responsible for currency minting, and the silver dollar is the top priority."

"I wonder how Dong Qing is handling this matter?"

Dong Yingju also felt a little aggrieved about this and responded:

"I have already made gold and silver coins according to your majesty's request."

"But your majesty said that I am not qualified, and I can't do anything about it."

As an official who had been punished years ago, he took the emperor's request very seriously.

Following the example of the gold and silver coins minted during the Wanli and Tianqi periods, the Ministry of Revenue Bank quickly produced the Chongzhen Tongbao gold and silver coins.

But the emperor said that what he made did not meet the requirements, which made him feel really wronged.

(Tianqi Tongbao, five-cent gold coin)
Zhu Youjian knew what he was talking about, but he was very dissatisfied with the fact that gold and silver coins were minted in the style of copper coins with a round outer surface and a square inner surface.

So he naturally rejected this style and asked Dong Yingju to arrange people to make it using other methods.

Facing Dong Yingju's grievances, Zhu Youjian asked him:
"Can gold and silver coins be minted with square holes to prevent counterfeiting?"

Dong Yingju of course said no, and responded:

"Although it is more difficult to mint gold and silver coins than copper coins, there are many different folk minting techniques, so it should be possible to imitate them." Zhu Youjian asked again after hearing him say this:
"In this case, how can we prevent someone from forging inferior money and using illegal means to arbitrage?"

"Could it be like copper coins, driven out of circulation by some inferior coins privately made by the people?"

Dong Yingju was speechless now, because the problem of bad money driving out good money is an unsolvable problem.

So many dynasties have failed to solve this problem, and he doesn't think he has any way to solve it.

So he now understood why the emperor rejected the gold and silver coin styles he minted.

“The manufacturing of gold and silver coins must change from casting to striking.”

"Just like the Spanish silver dollar, it was printed with a pattern and made into currency."

“They even built special machines to make silver dollars.”

"The goal of the Ministry of Finance Bank is to issue minted and machine-made coins."

"Using this manufacturing method that is unfamiliar to the public, we try to avoid counterfeit money."

As Zhu Youjian said this, he thought of Sun Yuanhua, whom he had sent as an envoy to the West.

One of the tasks he gave Sun Yuanhua was to collect coin-making machinery from the West.

In the future, these machines will be modified using Ming Dynasty methods to create coin-making machines specifically for the Ming Dynasty.

This is the only way to avoid the appearance of counterfeit currency in a short period of time and increase the cost of counterfeiting.

Unlike casting copper coins, which can be cast by knowing the sand casting method, just finding a few people can make counterfeit coins.

(Spanish Ben Yang, Mexican Cross Shield COB, these are minted coins, circulated in Ming Dynasty by weighing silver bars)
(Spanish Yuan, Earth Double Pillar, this is a machine-made coin made in Mexico, which was widely circulated in coastal areas during the Qianlong period. Later, after Mexico's independence, it became the Mexican Eagle Yuan, which was widely circulated in the late Qing Dynasty and became the object of imitation of silver dollars in the late Qing Dynasty. One silver dollar, Kuping 7.2 cents, came from the Eagle Yuan)

After listening to the emperor's words, Dong Yingju still didn't understand why the emperor wanted to set up the Gold Reserve Association. He asked:

"The Ministry of Revenue Bank can make silver coins based on the Spanish silver dollar."

"Why did your majesty set up the Gold Reserve Association?"

Zhu Youjian spoke earnestly and told him his greatest plan:

"The purpose of establishing the Gold Reserve is to issue silver dollar exchange certificates in the name of the Gold Reserve after the silver dollar is issued, referred to as silver dollar certificates."

"For example, the Ministry of Finance Bank minted 100 million coins, of which 30 million were deposited in the bank, and another 30%, or 9 million, was deposited in the Gold Reserve Association as a reserve."

"Then the Gold Reserve will be able to issue 9 million silver dollar notes based on the 9 million silver dollars it has."

"Apart from the cost, most of this money will be allocated to the Ministry of Revenue and allocated by the court."

"Dong Qing, do you understand my purpose?"

When Dong Yingju first heard about the silver dollar coupons, he was still a little confused.

But he was one of the most knowledgeable people in finance in the Ming Dynasty, and he quickly figured it out.

The emperor's intention was to print silver dollar certificates that could be exchanged for silver dollars in addition to producing silver dollars.

The printed money is the court’s income.

After thinking this through, Dong Yingju's heart suddenly began to beat fast.

Because this income can greatly enhance the financial strength of the court.

Therefore, he was even more unwilling to let the Gold Reserve Board control the issuance of silver dollar notes, saying:

"I think the Ministry of Revenue Bank can issue silver yuan notes without bothering the Gold Reserve Association."

"And the number of silver dollar certificates printed can be increased. If the Ministry of Revenue Bank mints 100 million silver dollars, it will issue 100 million silver dollar certificates."

Wow, this is more radical than Zhu Youjian had imagined.

But this was also the reason why Zhu Youjian did not dare to entrust the issuance of silver dollar notes to the Ministry of Revenue Bank.

It is hard to say whether the silver dollar notes would be accepted by the public for a radical like Dong Yingju. Even if they are accepted temporarily, they may fail in the future like the Baochao.

So he asked Dong Yingju:
"Will ordinary people recognize the silver dollar notes issued by the Ministry of Revenue?"

"How many people use Ming Dynasty's treasure notes as money now?"

"Do you have the confidence to pay the officials' salaries in the form of silver yuan notes?"

Dong Yingju was speechless now, because no one was willing to use the Ming Dynasty's treasure notes to wipe their butts.

The banknotes issued by the Ministry of Revenue Bank were mostly boycotted like the Baochao.

But no matter what, he wanted to get the right to issue silver yuan notes. Whether it is feasible or not, let's give it a try first.

However, Zhu Youjian did not dare to let the court try it. If the issuance of silver yuan notes failed, the court's little credibility would be completely consumed. It would be almost impossible to issue them again in the future.

Therefore, the court only had one chance and had to be extremely cautious. He threatened Dong Yingju:

"If Mr. Dong insists on opposing the Gold Reserve Association, I will let the Royal Bank issue silver notes on its own and exchange them for silver at the Inner Court Bank."

"Other banks and silver shops may also issue silver notes at that time."

"The Ministry of Revenue should formulate corresponding policies to standardize silver bills."

Dong Yingju was anxious because the issuance of silver bills was obviously controlled by banks and money houses. The Ministry of Revenue did not make any profit from it.

In comparison, the Outer Court of the Gold Reserve Association can control one-third of the seats, and the printed silver dollar notes will also be handed over to the Ministry of Revenue, which is a huge profit.

So he immediately said:
"Money houses and banks cannot be allowed to issue silver bills privately. They must issue unified silver dollar notes."

"I think the Gold Reserve Association can be set up, but the three seats in the outer court must all be handed over to the Ministry of Revenue."

Zhu Youjian had no objection to this because he had originally planned to hand it over to the Ministry of Revenue.

After persuading Dong Yingju, the Financial Reserve Committee officially shared some of the central bank's powers.

In order to prevent this institution from expanding and becoming corrupt, Zhu Youjian imposed restrictions, such as establishing a Financial Committee in Congress and stipulating that the amount of banknotes issued each year must be approved by Congress.

Before the establishment of Congress, corresponding silver dollar certificates were issued according to the gold and silver reserves of the Gold Reserve.

It can be said that he was very cautious about the issuance of paper money. He did not even adopt Dong Yingju's proposal of a one-to-one ratio between silver dollars and silver yuan coupons. He only issued silver yuan coupons that corresponded to the court's gold and silver reserves, ensuring that every silver yuan coupon could be exchanged for silver dollars so that its credit could stand up.

After receiving the emperor's reply and negotiating the terms with him, Dong Yingju left the palace contentedly. He also ordered the craftsmen of the Ministry of Revenue to study the minting of coins and machine-made coins.

He wanted to make silver dollars as quickly as possible and have the Gold Reserve Association issue silver dollar certificates.

Because of this, when Tu Wenfu convened him and the businessmen for the third meeting, everyone finally reached a consensus on the establishment of the Ming Financial Association and the Gold and Silver Reserve Committee.

This institution, which became famous in later generations, finally took shape.

The royal family also began to control the financial industry through this institution.

It can be said that, except for the Ministry of Revenue, the Emperor of the Ming Dynasty and the merchants were very satisfied with this matter.

The emperor held financial power, and merchants also shared some of it by relying on the emperor.

Moreover, those who were the first to join the financial association and participate in the establishment of the gold reserve association also had advantages over later comers.

They also gradually transformed themselves into qualified financial practitioners by learning from the Inner Court Bank.

In the future, their influence will grow and affect every aspect of the Ming Dynasty. (End of this chapter)