I am Emperor Wanli

Chapter 346 How can you make money in industry than in finance!

Entering the Qinzheng Hall of Ziguang Pavilion, Zhu Yijun pointed casually and said, "Sit down. We have some free time today. Let's sit down and have a good chat."

"Thank you, Your Highness." Yang Jinshui sat halfway down on the chair.

"There are so many people in the court. Jinshui, you understand my economics the best. So I'll let you handle the silver dollar matter to rest assured."

Yang Jinshui leaned forward and replied, "I have pondered over what Your Highness said about currency. The primary function of currency is to serve as a benchmark for the circulation of wealth. For example, Your Highness asked the Imperial Observatory to carefully cast one meter, one decimeter, and one centimeter platinum benchmarks, as well as one kilogram, one hundred grams, and ten grams of platinum weights. With currency as a benchmark, wealth can be accurately measured, thereby promoting the circulation of wealth.

The currency currently circulating in the Ming Dynasty's market is silver, which is of varying quality and cannot accurately measure wealth, thus causing many problems in circulation.

Your Highness asked me to make silver coins, which means to unify the currency, the benchmark of wealth. "

Zhu Yijun nodded with satisfaction: "That's insightful. I am completely relieved that you can realize this step."

"It's all because of your good teachings."

"Haha, I said so many things everyday, but some people still ignored me. You listened to the same words and kept them in mind.

Since you are eager to learn, I might as well give you some more guidance."

"Thank you, Your Highness. I am listening carefully."

"Minting money is still a very lucrative way to make money."

"A way to make money?"

"If it's not a good thing, why would I hand it over to the Shaofujian? The Ministry of Revenue is the national treasury, and you are the inner treasury. Of course, I will give it to my own people first when it comes to making money, haha!"

Yang Jinshui knew Zhu Yijun was joking.

He knew that in the eyes of His Royal Highness the Crown Prince, the whole world belonged to him, so what was the distinction between inside and outside? It was just to divide the national treasury and the internal treasury, so that the accounts would be clearer, so as to avoid a pile of messy accounts at the end of the year like before!
"I would like to ask Your Highness, how do you make the money to mint coins?"

"Why did the imperial court produce copper coins every year, but the market was becoming more and more short of coins?"

Yang Jinshui thought for a moment and replied, "The imperial court used to make copper coins, which were too honest."

"Yes! It's too honest. A copper coin contains 80% to 90% copper. When it is circulated in the local area, the common people and merchants melt the copper coins, make them into copperware, and then sell them. A copperware made of 1,000 copper coins can be sold for 1,500 copper coins.

Huge profits! Everyone is willing to do this.

So the imperial court mixed lead into copper coins, with 70% copper and 30% lead, 60% copper and 40% lead, or even 50% copper and 50% lead. But the people did not accept it and thought it was bad money, which caused prices to soar and the market to be turbulent.

Yang Jinshui nodded in agreement: "Your Highness is wise, and you have revealed the mystery in one sentence. Therefore, the copper coins minted during the Hongwu and Yongle periods are the most recognized by the people on the market. The copper coins minted during the Second Ancestor have the highest copper content.

However, these two types of coins are the most counterfeited on the market. It is strange that there are still many brand new copper coins from the Hongwu and Yongle periods on the market after two hundred years. "

"Haha, that's right. Yang Jinshui, you have realized another important feature of currency, which is credit. If credit fails, the currency will depreciate."

Yang Jinshui blinked and said, "Your Highness, is it just like a treasure note?"

"Yes, just like Baochao. In fact, the bills of exchange issued by Huijin Bank and Wells Fargo Bank are similar to Baochao in essence. But the bills of exchange are backed by the credit of the two major banks, so they are strong and are called silver bills.

Baochao? The imperial court is unwilling to endorse it and only wants to take it, so of course it is just like waste paper."

The more Yang Jinshui listened, the more he understood. "Your Highness, when I made the silver coins, I mixed other things into the silver to prevent the people from taking the silver coins home and melting them to spend them directly.

But in order to prevent the silver dollar from becoming bad money, it still needs credit endorsement. "

"Yes, credit endorsement! The court and the bank endorsed it. The court's biggest endorsement is that the silver dollars can be used to pay taxes. The bank's endorsement is that the bills of exchange will be redeemed in silver dollars in the future.

When casting silver coins, the Baoquan Bureau also tried not to make the silver too dark, and tried to add impurities into it.

The initial silver coin template is a silver coin with a total weight of 28 grams, 89% silver, 11% copper, and 25 grams of silver. The front is a dragon pattern and the words "Da Ming Tong Bao", the back is the words "One Yuan" and "Longqing Year Three" and flower and leaf patterns, and there are intaglio patterns and words around it. "Zhu Yijun took out a few silver coins from his arms and handed them to Yang Jinshui.

Yang Jinshui carefully took it and looked at it carefully. It was pressed very beautifully and glowed silvery white.

Except for the one-yuan silver dollar, the other coins are smaller and similar on the front, but the difference is on the back. They are "Wu Jiao", with a line of words below "two coins are worth one yuan"; "Two Jiao", also with a line of words below "five coins are worth one yuan"; and "One Jiao", "ten coins are worth one yuan".

"Copper coins will be issued later, with the unit of cents, ten cents equals one dime, and so on." Zhu Yijun pointed at the silver coin in Yang Jinshui's hand and said, "Currency manufacturing is very simple. Silver and copper are mixed together in proportion, and then pressed up and down with a hydraulic press, and squeezed around, it comes out.

But how to circulate it is a big problem.”

Yang Jinshui understood and replied: "I roughly understand what your Highness means. If this silver coin is circulated in the market, the people will still accept it. After all, there is so much silver in it.

But how much it is worth is a very complicated matter and needs to be carefully managed.”

"Yes! This is the key. As a benchmark for measuring wealth, silver coins must first reflect their value. They must be higher than gold and silver.

One silver coin contains 25 grams of silver, which is approximately equivalent to."

Zhu Yijun thought for a moment, "The Imperial Astronomical Bureau has observed that one jin in our dynasty is equivalent to about 595 grams, one qian is equivalent to 37.2 grams, and one fen is equal to 3.72 grams. One yuan silver coin contains 6 fen and 7 li of silver.

Therefore, the things that a silver dollar can buy must be worth more than one penny of silver. Only when it is worth more than one penny of silver, the people will not think about melting the silver dollar and spend it directly. Secondly, the court will make money. "

Yang Jinshui's eyes blinked, his face full of joy.

"Great, Your Highness. The cost of a one-yuan silver coin is only 6.7 cents of silver. With the copper and stamping costs, it is about 8 cents. If it can be spent as one penny of silver, the Shaofu Supervisor can make a profit of 2 cents of silver!"

Zhu Yijun smiled and nodded: "That's right, this is called seigniorage. When the Hongwu Dynasty issued treasure notes, the court could find a way to stabilize the credit and make it strong, so it could earn more."

Yang Jinshui felt that the prince was absolutely right. How much would it cost to print banknotes?
The rest is pure profit.

If our ancestors had the insight of His Royal Highness the Crown Prince, they would not have become increasingly poor.

Zhu Yijun continued, "It's no good now. The treasure notes are all over the place. If the court issues the treasure notes directly, people will think I'm crazy about money and start robbing people openly again."

"That's why His Highness took a roundabout way and let the two banks endorse and issue the bills themselves. I really admire you. Outsiders think that the most profitable things for the Shaofu Supervisor are the sea merchants, the mutual trade, the cotton mills and the iron mills, but they are all wrong.

In fact, the two banks that make the most money for the Shaofu Supervisor are Huijin Bank and Wells Fargo Bank. "

Of course, those who work in industry will never make as much money as those who work in finance.

Zhu Yijun pointed at Yang Jinshui and said, "It's good that you know this. In the third year of Longqing, the top priority of the Shaofujian was to issue currency, circulate currency, and stabilize currency.

Well, the Ministry of Finance can set up a financial department, and you can personally take charge of this matter."

"Finance? Money and finance. The names given by His Royal Highness the Crown Prince always have deep meanings."

"Stop flattering me. This matter is very important, but it can't be rushed. You should discuss it with Wang Ruguan (Wang Guoguang), the Minister of the Imperial Household, and listen to the opinions of the managers of Huijin Bank, Wells Fargo Bank, and several major businesses."

"Yes. Your Highness, Song Yingqing, the former head of Xingruixiang and the current second head of Huijin Bank, has outstanding insights in this area. I would like to invite him to Beijing to take charge of the specific matters of the financial department."

Zhu Yijun looked at Yang Jinshui and said calmly: "How you use people is up to you, I just want the results."

"I obey your command." Yang Jinshui immediately knelt down and replied.

"Okay, get up. It's rare that Xiyuan is so lively today, with several operas being performed. Kunqu Opera and Yiyang Opera were popular in the capital because of your recommendation. Let's go and have a look and relax."

"Thank you for your grace, Your Highness. I will leave first." Yang Jinshui also knew that Zhu Yijun had other things to do, so she took the opportunity to say goodbye.

After Yang Jinshui left, Zhu Yijun turned to Qi Yan and said, "Please invite Mr. Li and Mr. Wan in."

(End of this chapter)