Southern guerrilla warfare: I led the Red Seventh Army Corps to amassed a million troops.

He looked at Zhou Zeyuan and said, "Zeyuan, don't worry, I've already turned them down for you. We'll begin the operation once you've made all the necessary preparations."

Zhou Zeyuan nodded, his face remaining expressionless, but he saw through everything perfectly.

The main force of the Central Committee is about to begin its westward expedition.

With the Nationalist army launching a fierce offensive on the front lines, the remaining troops were under immense pressure. Naturally, the Central Committee hoped that this detachment on the outer lines could make some noise and relieve the pressure on the rear.

But as Comrade Qiu Bai said, the time is not ripe.

It's not just a personnel issue; the local troops stationed there are also undergoing a period of adaptation as they are being re-equipped with large quantities of American weapons.

If the main force hastily launches an attack on the outer lines, the enemy will inevitably launch a large-scale invasion of the base area. As a result, the troops left behind are equipped with unfamiliar new equipment. What will become of the situation?

But is it really possible to refrain from attacking?

Comrade Qiu Bai is also someone who considers the overall situation. If the Central Committee really leaks some information to him, this old revolutionary would probably change his attitude immediately.

Sigh, looks like I still need to be prepared for both possibilities! What's that saying again?

It's not that we won't fight, but that we'll fight slowly and skillfully.

To achieve great returns with minimal investment!

After the meeting adjourned, everyone got up one by one to say goodbye.

Su Yu, Liu Shengmu, Huang Ligui, and others walked out of the cave one after another, their footsteps gradually fading away on the gravel path outside the cave entrance.

Zhou Zeyuan was about to get up when Yu Qiubai called him back.

"Zeyuan, can you stay here for a moment?"

Zhou Zeyuan stopped and turned back to sit down.

Yu Qiubai waited until he was seated before slowly speaking, "I've heard that you're not only skilled in leading troops into battle, but also quite insightful in economic development. Is that true?"

Zhou Zeyuan chuckled: "I don't really have any special talents, but I'm quite good at learning. Just tell me what's on your mind."

Yu Qiubai didn't mince words: "The Soviet government is preparing to purchase a large amount of grain from the market, and its finances are a bit tight. I heard that the army headquarters has a large stockpile of gold and silver dollars. I wonder if you could help with that?"

Zhou Zeyuan replied almost without hesitation: "Money is not a problem; I've never been stingy with money. But it has to be spent wisely. We don't lack food right now, so why are you buying more?"

"I know the army doesn't lack food. But food has other uses." Yu Qiubai shook his head, his expression becoming more serious.

"The Soviet areas also need to store a large amount of grain for famine relief; this is a function that the government should fulfill. Besides, haven't you heard the saying, 'When grain prices are low, farmers suffer'?"

He looked at Zhou Zeyuan, his tone carrying a deeper meaning: "Thanks to you, grain prices in Fujian are currently at a very high level."

"If we don't raise the price of grain in our base areas, do you believe that smugglers will start buying grain from us and selling it to the Kuomintang-controlled areas?"

Zhou Zeyuan nodded. Businessmen, after all, are driven by profit. Whether it's the Soviet-controlled area or the Nationalist-controlled area, there won't be much difference.

If it were anyone else, they would probably agree by now.

But Zhou Zeyuan sensed a hint of urgency, unease, and excitement hidden in Yu Qiubai's heart.

It's just spending money to buy food, why are you so concerned?

Recalling the very first sentence of this conversation, it was a probe to see if he had any knowledge of economic development.

In an instant, an idea popped into his head. He complained with a hint of dissatisfaction, "Comrade Qiu Bai, is it really necessary for you to keep things from me like this?"

"Hahaha, you not only have sharp eyes, but your nose is also like a dog's. Alright, I won't lie to you anymore."

Yu Qiubai's expression turned serious as he explained, "Back then, I learned a trick from the Soviet Union: using grain to bind the value of currency, and using grain as the anchor for Soviet banknotes."

"The gold and silver standards currently in use internationally both issue currency using precious metals as collateral. Holders of these currencies can take them to banks to exchange for corresponding amounts of gold or silver."

"But the situation in our base is different. Although we have some real money, these precious assets need to be used to purchase important machinery, equipment and military supplies first."

Zhou Zeyuan nodded knowingly. "I don't know much about currency issuance, but it seems that the Soviet Union didn't use this method back then."

Yu Qiubai was taken aback by what he said. "Well, there is indeed a big difference. They didn't have as much surplus grain as we did back then, so their methods were inevitably a bit rougher."

As he spoke, he blushed slightly. "Oh, young comrade, don't worry about the details. Just tell me if this method is good or not."

Zhou Zeyuan suppressed a laugh and nodded. "That's a good idea. I just did a mental calculation. When our 20,000 troops launch an outer attack..."

"A portion of the remaining Kuomintang prisoners of war will also be released, at which point the base area will only need to support a little over 3 full-time personnel. The surplus of grain is indeed quite abundant."

Why didn't other forces think of using grain as collateral for issuing currency?

In this era, and even in the era to come, in the hearts of ordinary people, there is truly no hard currency more valuable than food.

However, as Yu Qiubai said, the government also has a very important function, which is to prepare for war and famine.

If a financial system believes it has 6 tons of grain reserves and issues currency based on the value of those 6 tons of grain, then that system is doomed to collapse sooner or later.

Because once a famine struck, a large amount of grain in the government granaries was used for disaster relief.

When grain reserves run out, but a large amount of currency is circulating in the market, a bank run will be inevitable.

When ordinary people wanted to exchange their money for grain, the government granaries were empty, and the credibility of the currency immediately collapsed.

Unlike gold and silver, grain is a daily consumable, and its reserves fluctuate with the changing seasons, natural disasters, and man-made calamities.

Therefore, a sufficient margin must be left between the amount of currency issued and the amount of grain reserves.

As he was thinking, Zhou Zeyuan suddenly realized something was wrong.

"Comrade Qiu Bai, aren't we also depleting our gold and silver reserves by spending money to buy grain from the people?"

A hint of approval flashed in Yu Qiubai's eyes. "That's right, that's indeed the case, but this is only temporary. Once we issue the currency and gain the acceptance of the people in the base area, these metal currencies will gradually be collected by the banks as the economy circulates."

"For example, we could increase deposit interest rates to attract people to deposit money. Or, we could issue government bonds and organize fundraising events..."

Zhou Zeyuan gave him a thumbs up. "Old ginger is indeed spicier! Alright, I'll put in a good word, you can use the money in the Legion Headquarters' account as you like."

"However, I'd like to make it clear upfront that now is not the time to focus on improving people's livelihoods. With the economy operating smoothly, the majority of the tax revenue generated will still be used for military spending!"

Yu Qiubai nodded seriously, "I understand. I just don't want to engage in militarism, but in revolutionary times, military affairs must take priority, and everything else has to take a back seat."