Ming Dynasty: Domination of the World from the Imperial Examination

Chapter 365 Anchor of Paper Money!

Zhu Biao's tone was calm, with a hint of helplessness.

Others might be able to ignore it, but he can't. He is the crown prince of the Ming Dynasty and he must face it.

He looked at Xia Zhibai and said in a serious tone: "I think you are not telling the truth."

"You must have a way!"

"I know you. You are a proud person and never do anything without confidence. Since you dare to say those words to me, you must have thought it over carefully and considered the current situation of Ming Dynasty. Moreover, you have traveled to many places in the world and have a deep understanding of the actual situation of Ming Dynasty. It is impossible that you don't know the current situation of Ming Dynasty."

"I want to hear your true feelings."

"I can assure you that if your suggestion is feasible, I will definitely urge Your Majesty to make some corrections to the Ming Dynasty's system."

Zhu Biao looked at Xia Zhibai hopefully.

Li Jinglong also looked at Xia Zhibai, with deep disbelief in his eyes.

No one in the world doubts Xia Zhibai's ability, but some things cannot be done just by thinking or talking about them. Xia Zhibai is not a god, he cannot conjure up so much money. If he cannot come up with the money, then naturally everything he said before is out of the question.

But he still had a glimmer of expectation in his heart.

What if?
Xia Zhibai stood with his hands behind his back.

He didn't speak in a hurry, as if hesitating.

half an hour.

Xia Zhibai sighed and said, "The money problem can indeed be solved, because since the Song Dynasty, money has slowly shifted from substantial gold, silver and copper to credit currency. It's just that the Ming Dynasty destroyed this monetary path over the years."

"If the Ming Dynasty is willing to rebuild, it may be possible to make some improvements."

"Credit currency?" Zhu Biao frowned.

He didn't quite understand these four words. Currency is currency, but what is credit currency?
Xia Zhibai said: "Your Highness, do you know about Jiaozi and Huizi in the Song Dynasty?"

Zhu Biao nodded and said, "Of course I know."

“Paper money.”

Xia Zhibai nodded and asked, "But Your Majesty, do you know why paper money could be circulated at that time?"

Zhu Biao frowned and said uncertainly, "Because the actual money and grain are too much to carry, and paper money is equivalent to a mortgage deed. With paper money, you can go to some shops to exchange it. As more people use it, it will gradually circulate."

Xia Zhibai nodded, then shook his head and said, "Your Highness is right, but it is incomplete."

"The reason why paper money such as Huizi and Jiaozi can be circulated is mainly because the merchants who issue the paper money are trustworthy. You can exchange these paper money for real money at their business. If you can't exchange the paper money for real money, then the so-called Jiaozi and Huizi are just a piece of waste paper, and naturally no one will use it."

Zhu Biao nodded, as if thinking about something.

Xia Zhibai added: "Credit is the basis for the circulation of paper money."

"Paper money was in circulation for a while in the Song Dynasty, but it eventually collapsed because the government took over and issued paper money without restriction, and people started using silver and copper coins again."

“It follows from this.”

"If it is backed by credit, paper money can circulate throughout the world."

"That is to say, paper money can be used as money!"

"But looking at the Song and Yuan dynasties, paper currency transactions eventually collapsed. What was the reason? It was because the government issued paper currency without limit. They just regarded paper currency as the unlimited treasury of the court. But if the court's paper currency was not issued without limit, and was even controlled, Your Highness, can paper currency continue to circulate in the world?"

Zhu Biao nodded: "Of course it is possible."

"But right now," Zhu Biao said with a wry smile, looking somewhat helpless, "I'm afraid the people of the world are avoiding paper money like a tiger."

As for the reason, everyone knows it. Because the Ming Dynasty only issues paper money but does not collect it.

Naturally, the people don't want it.

Xia Zhibai didn't care, and continued: "The people don't want to use it, not only because the court only issues it but doesn't collect it, but also because the paper money can't be circulated, and the court itself doesn't recognize it. Whether it's paying taxes or other things, the court doesn't want paper money. The court only wants copper coins, silver and grain."

"And the Ming Dynasty is currently short of money."

"It's not just the court that's in need, the whole world is in need."

"So it makes sense to issue paper money to alleviate the shortage of money."

"But the court currently needs to solve a problem."

“It’s the people’s trust.”

“Only when the people recognize this currency can this paper currency be used as money.”

"So the best way at present is to set an anchor, using gold, silver, or copper coins as anchors to determine the exchange rate between paper money and these traditional currencies. And this is not just talk, but a real exchange."

“Governments should set an example by not only using their own money but also taking it back.”

Hearing Xia Zhibai's words, Zhu Biao quickly shook his head.

He said hurriedly: "This is impossible."

"You want the imperial court to exchange real gold and silver for a pile of waste paper. This is absolutely not possible."

Xia Zhibai said seriously: "That is not waste paper, that is the credibility of the Ming Dynasty in the hearts of the people!"

"That's not possible." Zhu Biao continued to shake his head.

Xia Zhibai's idea was too absurd. The court already had little gold and silver, and it couldn't even use it all, but it had to exchange it for waste paper in the hands of the people. Was the court crazy?
Xia Zhibai said firmly: "There is nothing wrong with it, because it represents the credit of the Ming Dynasty. As long as the people are used to using paper money, the paper money issued by the Ming Dynasty in the future will be real money. Your Highness should not lose the big picture for the small, and don't care too much about the immediate benefits."

“When the time is right, things like gold and silver will only be used as an anchor and will no longer be used as currency.”

"The only currencies after the Ming Dynasty are paper money and copper coins."

"The court may have paid a million taels of gold and silver, but received hundreds of millions, or even tens or hundreds of billions in return."

"But after all, this is anchored by the credit of the Ming Dynasty, so it must not collapse. Therefore, strict control must be implemented. The issuance of currency and the printing of currency must be two separate organizations. The amount of currency issued must be anchored by a clear value, otherwise it cannot be easily increased."

"It is to ensure the value of the currency!"

"All this will only make people all over the world accept and use paper money."

"Then the goal of replacing gold and silver will be achieved."

"Since the Ming Dynasty is short of silver, then we should just not use it."

"Isn't this better?"

"You can't make money out of thin air. If you want to make money out of thin air, you have to make people believe that the paper in their hands is money. It can be used to buy and sell goods, pay taxes, and do business."

"Using paper money to replace traditional currency should have been the path that the Ming Dynasty should have taken."

"Because there is no money, you have to find a way to make money."

"The best way is to print money, but printing money alone is not enough. The people must recognize that it is money, so there must be an anchor. Because of the court's chaotic behavior over the years, the people obviously do not trust paper money, so drastic measures must be taken, even if the court pays a huge price for it."

"Because this is the court's own fault."

"You should be held responsible for this!"

(End of this chapter)