Diqin Designer

Chapter 281 Chapter 124 Creating a new currency to solve the problem

Wang Wan explained his question: "If the countries knew the difference between money and wealth, they would be wary of Daqin and would not be able to implement the Shangshu's law; if the countries did not know, they would hoard Daqin's money. But why did they have to go to Daqin when there are many places to hoard money?"

This is a good question. If there are no other places where you can store money, why should you store it in your Qin Dynasty?
Wouldn’t it be better if I dug a secret room for myself or hid in a cave where no one knows about it?

The others' eyes fell on Li Nian, wanting to know how Li Nian would solve the problem. Anyway, they couldn't think of a good solution for the time being.

It's not that they lack intelligence, but that they have not considered the development of technology, let alone the possibility of using paper money.

Li Nian did not answer, Wang Wan continued: "Unless the Shangshu's method is only used once, but after using it once, it will damage the 'national credibility' mentioned by the Shangshu. After that, other countries will be on guard and it will no longer be useful. Moreover, once the 'national credibility' is lost, it will not be good for the future of Daqin!"

It is very easy to cheat the first group of people. Even if people from other countries hoard coins, they can still be cheated. At that time, the Qin Dynasty only needs to invalidate the current coins and replace them with another kind of coins, and let those who hold the old coins exchange them for new coins within a time limit.

This has little impact on the people of Daqin, because they are in the country and can exchange the coins in time. However, this is not the case for people from other countries. They are outside Daqin. If they cannot exchange the coins in time, the hoarded coins will instantly turn into a pile of useful metals.

But this method can only be used once. After Qin does this once, people in other countries will definitely be on guard, and it will be difficult to do it again.

Moreover, it is impossible to achieve the goal of controlling the countries. If you want to control the countries in this way, you must have a certain national credibility and make people from other countries willing to deposit their money in Daqin.

This is also the reason why Wang Wan said, "If the Shangshu's methods are not explained, they cannot be accomplished. Even if they can be accomplished, the impact may not be as great as what is said in the Shangshu."

Wang Wan continued: "Third, the coins used by the Qin Dynasty today are not difficult to mint. Even the common people can mint them, not to mention other countries?"

Before he finished speaking, Wang Wan seemed to have discovered something and said to Li Nian, "The Minister wants the Qin Dynasty to mint a new kind of money?"

After Wang Wan's words, others also reacted immediately.

If a new kind of money is minted that other countries cannot mint, and this new money is difficult to hoard or store in their own country, it is best to store it in Daqin, then the above problems can be solved.

But can this new kind of money be created?
After searching their minds, they actually thought of a material, which was paper that was only available in the Qin Dynasty!
Minting new money out of paper?
This is such a bold idea!

Li Nian's words also confirmed their conjecture: "That's right! The problem mentioned by the Prime Minister needs to be solved by creating a new kind of money."

"This new kind of money can only be made by the Qin Dynasty. Other countries cannot make it. Moreover, the Qin Dynasty can produce it in large quantities. The materials used to make this new kind of money are considered more precious in the eyes of everyone!"

"Only the Qin Dynasty can make it, and other countries cannot" is to solve the problem that others can also mint coins as mentioned by Wang Wan. "The materials for making new money are considered precious by everyone" is to make it easier for people to accept new money. "New money can be produced in large quantities" is to prevent people from hoarding new money and causing a money shortage.

"Some people may have thought that in today's Qin, the most suitable material for making this new money is paper! Paper can only be made in Qin, and other countries cannot. Moreover, the people all know how precious paper is. After knowing that the new money is made of paper, they will be more likely to accept it."

Paper became common in later generations, but it is a rare item now. Candidates taking the Xianyang examination were allowed to take their test papers away, and almost everyone treasured the test papers as if they were treasures.

From the perspective of time, the Qin Dynasty was in 200 BC, which was a very backward and ancient era. How could it be suitable for paper currency?
But if we analyze the environment and conditions of the Qin Dynasty, we will be surprised to find that the Qin Dynasty was more suitable than some later dynasties.

This is also the advantage of being early and backward, with fewer constraints and disadvantages. Some obstacles in later dynasties were not obstacles at the time of the Qin Dynasty, and they did not even exist. "Compared with coins made of gold, silver and copper, paper money is relatively less likely to be hoarded by some people, and it can also reduce the consumption of metals such as copper; paper money is easier to carry..."

Li Nian talked about many benefits of paper money, and then said: "As for making other countries willing to deposit their money in Daqin, the main thing is to make them trust Daqin and guarantee that their money is safe in Daqin, which means that Daqin must have credibility."

"But credibility alone is not enough to make all of them deposit their coins in Daqin. After all, it is just for safekeeping. They can find some hidden places and people they trust to deposit their coins. Why do they need to go to Daqin?"

For politicians and wealthy people, the most important thing is to ensure the safety of the money they deposit, even if they are charged higher custody fees.

A well-known bank achieved success in this way, but it will quickly collapse when it cannot protect the depositors' property safety.

"Therefore, at the beginning, we can offer them certain benefits to attract them. For example, if they deposit their money in Daqin, Daqin will give them interest every year. The interest is..."

Li Nian thought for a moment and gave an example: "If you deposit one thousand Singapore dollars, by the end of one year, this one thousand Singapore dollars can become one thousand and ten Singapore dollars."

This made some people frown. They came here to deposit money, but they didn't pay Daqin, and Daqin also wanted to give them money?

Noticing the expressions of these people, Li Nian asked, "Do you think that giving them interest is a loss for the Qin Dynasty?"

Li Nian said: "These coins were made by the Qin Dynasty. If we give them some interest, it won't be a loss for the Qin Dynasty. Moreover, the benefits they can bring to the Qin Dynasty have exceeded the interest paid."

"Besides, Daqin can also take out the stored coins to make more money, instead of just leaving the coins there like a warehouse."

This made everyone's eyes light up. Yes, they could use the stored coins to earn more coins. As for ways to make money, everyone thought of a lot of them.

Zhao Gao asked: "But if I take out the deposited coins to earn more coins, what if someone suddenly wants to take them out?"

After asking, Zhao Gao felt that he had asked a stupid question. How could the Qin Dynasty be short of money?

The Qin Empire can make its own money. If the stored coins are not enough, can't it just make another batch?

Li Nian said: "We will reserve a certain amount of coins in advance to ensure that this situation does not happen!"

Noticing the change in Zhao Gao's expression, Li Nian said, "Vice Commander Zhao is thinking that if the Great Qin currency is insufficient and someone insists on taking it, then we should make another batch of coins?"

Zhao Gao bowed to Li Nian and frankly admitted, "I do have this intention. Please give me some advice, young master!"

Li Nian said: "Don't do this unless it is a special case. Don't think that Daqin can make coins and make money at will! Don't forget what I said before, coins are not wealth!"

(End of this chapter)