When the Saint comes, she does not collect food

Chapter 968 Central Bank and Pious Banknotes
“Mr. Krandorff, the alcohol itself is not guilty; it is the drinker who is guilty, not the drinker.

If you want everyone in the world to not drink and there to be no alcoholics, then what you should do is not to forbid people to drink.

Instead, we should transform their hearts, correct their thoughts, and replace alcohol with healthy drinks instead of forcing a ban.

This also restricts the freedom that the Holy Father has given to believers.”

Krandorf lowered his head but did not speak. It was unclear whether he heard it or not.

As for Xia An on the other side, Horn also spoke up: "You attacked the "Alcohol Prohibition Order" and tried to open up the grain market, but the problem is, what if the nobles make a comeback after the market is opened up?"

After all, aristocratic bloodline and family continuity are too strong.

The imperial aristocracy ruled for more than a thousand years, and some families had been operating in the local area for seven or eight hundred years.

Their social prestige and traditional loyalty provide too much cultural soil for these invisible aristocrats who bear the title of "gentry".

The purpose of grain monopoly is to separate gentry from farmers in order to prevent the formation of a monopoly that would harm the country.

These gentry are docile now, but if one day they can really restore the "glory of their ancestors", will they still be so docile?
We are not afraid of them coming out to challenge us, but we are afraid that they will hide among their own people and hinder us.

For example, this time, it seemed to be an attack on the "Alcohol Prohibition Order", but it actually hooked into the strategy of grain monopoly.

Maybe someone is playing tricks on us.

It would be nonsense to say that someone had planned this for a long time, but "piecemeal efforts will eventually succeed" is not an uncommon tactic.

"But, Your Majesty." A workshop owner stepped out cautiously, "The grain price is too high, and the cost of survival for the workers is too high. They will all return to the countryside to become farmers."

"It is indeed necessary to maintain a relatively low level of food prices."

Before the farmers' representatives could change their expressions, Horn continued without taking a breath: "But this does not mean that farmers' living standards cannot be improved."

This confused the representatives present. If the grain purchase price is not raised, how can farmers' income be increased?

“First, since the grain production is in excess, we will switch to growing cash crops. The Holy Maiden Bank and the Holy Scythe Monastery will soon build a new inclusive agricultural bank.

This inclusive bank will provide loans to farmers to help them transition to growing cash crops..."

While Horn was explaining the policy, Duke Labang, who was sitting on the observation deck, laughed in silence and pointed at his grandson: "It's a wild idea."

“How come you see?”

"First of all, farmers are so dumb that you can't expect them to do anything. Most of them, most of them are so dumb."

Thinking of the holy grandson below, Duke Labang changed his words to be more precise.

"Secondly, no matter how many of these cash crops he grows, can he grow more than us? Who does he sell them to?"

"Are you sure that the shareholders of the 'Spice Company' will not take action?" Casani asked.

Labang's smile suddenly froze on his face.

“Second, the Central Bank of China will become the only central bank, independent of all banks.

I will grant them the power to issue paper money, and this year we will issue 10 pious notes with a reserve of 10 gold pounds.

The denominations are half dinar, 1 dinar, 5 dinar, 10 dinar and 20 dinar.

As Horn was speaking, the Privy Monks had already handed the representatives original banknotes printed with various denominations.

Touching the rough yet smooth paper surface, the representatives turned the palm-sized pieces of paper in their hands over and over again, but still could not see how this thing could replace the shiny silver and gold coins.

Hold the banknote above your head and point it towards the sun. The extremely complex Gothic pattern will reflect a lush green color in the sunlight.

The face value is printed on the front of the banknote, while the back is printed with laborers, soldiers, farmers, etc., with gears and the sun on the border.

"It's just a piece of paper?" The representatives were still puzzled.

Horn smiled and said, "Yes, it is just a piece of paper, but no one can forge this piece of paper, it is issued completely according to the gold pound.

The amount of paper money printed will be determined by the amount of gold in the Holy Treasury. You can use the paper money to withdraw gold from the bank at any time.

At the same time, you can also take your gold pounds to the bank to exchange for paper money."

"So this is equivalent to a fixed-denomination bearer bank check?" A banker representative quickly responded, "It's just that the denomination is too small." While the banker was still smiling, some of his astute colleagues were already sweating profusely.

The banks that Horn mentioned "you can go to the bank to exchange banknotes at any time" would not also include their small banks, right?

It was over. The Holy Grandson still took action against these wealthy people, just like he hanged those wealthy businessmen in Jeanne d'Arc.

Seeing the bankers trembling and about to leave, Horn couldn't help laughing: "Do I look like a robber?
Don't worry, you small banks can also use banknotes to exchange precious metal currencies at our Central Saint Lady Bank."

After hearing Horn's promise, the businessmen and bankers all breathed a sigh of relief.

Horn nodded to Sissi beside him, and Sissi, as the head of the Holy Treasury, stood up again: "Pious notes are equivalent to bearer checks with fixed denominations. Every 1 dinar face value corresponds to 1 dinar silver coin, and can be exchanged for the corresponding silver coins.

If farmers are willing to accept this pious note, then we will buy it at a higher price.”

"In dinars?"

"Use Pious Notes." Xixi shook her head. "These Pious Notes can be purchased at the Grace Market or at the state-owned workshop. Any Chamber of Commerce or workshop funded by the Holy Alliance cannot refuse Pious Notes."

While the other representatives were pondering the meaning behind it, a farmer representative couldn't help himself after all.

He stood up, bowed and asked the question that all farmers wanted to ask: "Can I exchange the banknotes for money?"

"Paper money is money. Of course you can exchange it into precious metal currencies. There is an exchange office in the Enqing Market." Sissi said to him with a smile.

The farmer representative retreated back to the crowd timidly, but a smile appeared on his face.

Since it can be exchanged for money in the Favor Market, you must choose to receive paper money.

It just takes a little effort, and once you get the banknotes, you can go to the Enqing Market to exchange them for money, which is equivalent to getting dozens of dinars for free.

Now, many representatives were completely confused.

Isn't this taking off your pants to fart?
If you have gold pounds, use them. What's the point in getting a piece of paper and wrapping it around?

Many merchants and vendors were quick to discover the key point - the banknotes were much lighter than the gold pounds.

Every time they went out to sell goods, they had to bring a big box of money.

It’s not that they don’t want to carry gold pounds, but who can change the gold pounds?
So they could only carry a lot of coppers and dinars around, and the money alone took up a lot of transport weight.

But what if this metal, which takes up both space and weight, could be turned into light paper money?

This requires a lot of space and weight, so even if you encounter bandits, it is not easy for them to steal too much.

Moreover, the exchange rates of different types of dinars are different. For example, the exchange rates of Dogecoin and Winter Coin privately minted by some dukes are also different.

Every time I quarrel with those currency exchangers, it is very frustrating. In the end, when the money is counted, all the money has been taken away by the exchangers via the exchange rate.

Now, the banknotes are always the same, right?
As for a small number of bankers, they thought of even more.

As commodities circulated in large quantities, people were already experiencing a shortage of money, but this incident greatly reduced the deflation caused by the shortage of money.

The most important thing is that the Holy Union government can collect enough precious metal currencies from the public to engage in international trade!

If there is a severe turbulence in the international precious metal currency, it will not even affect the Holy Union!

The most important thing is, does a hundred thousand gold pounds in banknotes really require a hundred thousand gold pounds in reserves?

What if it was 70,000 pounds in reserve? Or even 50,000 pounds in reserve?
With a reserve of 50,000 gold pounds, issuing 100,000 gold pounds is equivalent to doubling the wealth!
Damn, it’s still the Saint Sun who knows how to make money.

Jihad bonds, industrial bonds, joint companies, stocks, favor markets…

If you think about it carefully, His Majesty the Saint Sun has almost never lacked money from the beginning to now. He spends money like water and earns money like water as well.

But of course, it is impossible to say this kind of thing openly.

They looked at each other and were ready to invite Her Royal Highness Catherine to dinner.

The only bank that has the power to issue currency independently, but I haven’t heard of who the president of this bank is!

(End of this chapter)