Rebirth: I am in Jin-Cha-Ji
Page 626
"At present, our work is mainly in cities; the policies of the Finance and Economics Committee are also mainly targeted at cities. However, China is an agricultural country where farmers account for the majority. If we do not include rural areas, then our fiscal work will not be successful. In particular, if our currency cannot be
If we enter the countryside, the current problems will not be solved.
"Comrade Bo Shuchun has a point."
Mao Zemin nodded.
Although Bo Shuchun lost his position as deputy director of the Finance and Economics Committee, he was still present during meetings between the director and deputy directors of the committee. This was a recognition of Bo Shuchun's abilities by the Finance and Economics Committee officials.
Bo Shuchun didn't think anything of it during the meeting.
same as before.
It is necessary to express opinions.
"In fact, the amount of currency we have issued is not that much, so it will not cause such a rise in prices. The reason why prices rose so seriously before was that many speculators took advantage of the chaos to raise prices, and another reason was that our RMB could not enter the rural areas.
The people are repulsive to our RMB and do not trust our RMB. Therefore, all the RMB we issue flows into the cities, causing the rise in urban prices.
Mao Zemin added to Bo Shuchun's words.
When it comes to this issue, Wei Hongjun also has a headache.
Dao: "The instability of the RMB's value has caused many rural areas in North China to begin to reject the RMB. This phenomenon is indeed not a good one.
The value of the RMB fluctuates too much and is even worse than the border area currency used back then.
The people of North China have made great contributions and sacrifices to maintain the stability of the RMB. But now, rural North China can no longer bear it. The RMB's value fluctuates so drastically that farmers can lose a lot of money if they're not careful.
Even the rural areas of North China are like this, so the situation in the rural areas of the newly liberated areas can be easily imagined.
They don't accept RMB at all.
The countryside is poor, but the rural population is large.
This is a big market.
The RMB's inability to capture the rural market directly impacted cities. This was because the RMB in rural areas, after circulating in the cities, rapidly increased the amount of RMB in circulation, and prices began to rise sharply.
This time, a large amount of RMB was recovered through the national debt plan.
But the national debt must be repaid after all.
The national debt plan is only a temporary solution, not a fundamental solution.
"We must get rural areas to accept RMB as soon as possible, so that we can truly stabilize prices across the country. Given the current size of the rural population, the amount of RMB that China's rural areas can absorb is not much less than that of cities. In other words, as long as rural areas can accept RMB, then we
At least we can issue an additional 10 trillion RMB (old currency) on the current basis without causing price increases.
Bo Shuchun did do the calculations.
Although China's rural areas are poor, they have a large rural population and can absorb a large amount of RMB.
The more RMB the countryside absorbs, the better it is not only for cities, but also for price stability and even for the government. After all, in the future construction of New China, the government will inevitably issue more RMB.
If the issued RMB cannot be absorbed by the rural areas and instead all circulates in the cities, it will trigger a new round of inflation.
Bo Shuchun said, - while looking at Wei Hongjun.
The division of labor among central government ministries is unclear, so many officials have multiple responsibilities. For example, Wei Hongjun was in charge of land reform nationwide and, incidentally, was also responsible for rural affairs nationwide. Did Wei Hongjun actually have such a position?
not at all.
But everyone assumed that Wei Hongjun was responsible for rural work across the country, so Wei Hongjun was responsible for this work.
"Comrade Bo Shuchun, what are your plans?"
Wei Hongjun asked Bo Shuchun directly.
Bo Shuchun said: "Rural areas are different from cities. In cities, we have banned the circulation of gold and silver, and foreign exchange, so urban residents can only accept RMB. Because cities cannot do without currency as an intermediary. But rural areas are different. In the short term, rural areas can completely do without currency.
Currency is not used because bartering is possible in rural areas. Therefore, administrative orders have limited effect in rural areas.
"Correct."
Wei Hongjun nodded.
I didn't expect that Bo Shuchun knew so much about the countryside.
Bo Shuchun continued: "So I think economic means are more effective than administrative orders. As for what kind of economic means to adopt, we still want to hear Comrade Wei Hongjun's ideas.
Bo Shuchun has some understanding of the countryside, but he is definitely not as good as Wei Hongjun in rural work.
So Bo Shuchun was just making a suggestion.
The details still need to be determined by Wei Hongjun, because if the RMB is to be truly promoted in rural areas, Wei Hongjun's cooperation will ultimately be needed.
Wei Hongjun fell into deep thought.
When it comes to rural areas, Wei Hongjun is of course very familiar with it.
Wei Hongjun also has a lot of experience in how to bring RMB to the countryside. After all, in the base area back then, border currency, legal tender, counterfeit currency, gold and silver dollars were all over the place, but in the end, the border currency won.
Wei Hongjun also personally participated in the currency war in Shanxi-Chahar-Hebei.
So Wei Hongjun thought about it and said: "Economic means, money going to the countryside, in the end, there are actually three means. Finance, finance, and trade. From the financial point of view, it is taxation. In addition to public grain, when collecting taxes in other aspects, we should use RMB to collect taxes, which requires rural areas to
You need a certain amount of RMB.
"Let's talk about finance. There are now a large number of rural credit cooperatives in the old liberated areas, including the recently established Agricultural Cooperative Bank. Loans are made in RMB, and repayments are also in RMB. As for many rural areas in the newly liberated areas, many places are still undergoing land reform. Those poor rural areas,
This requires government financial support. This is where the opportunity of bringing finance to the countryside comes in. This can bring a large amount of RMB to the countryside.
"Finally, it's about trade. We need to learn how to control rural trade and the necessities it needs. When industrial products are brought to the countryside, only RMB should be accepted in trade. We need to get rural people used to using RMB to purchase these goods."
"By combining these three measures, the RMB will be able to circulate in rural areas within a year at most."
How to make rural areas accept RMB.
It's easy to say it's easy, and it's difficult to say it's difficult.
The difficulty was that the peasants had no confidence in paper money. After the Xinhai Revolution, warlords fought each other, and the result was that each warlord issued a different currency, and then another warlord issued a different currency. Each province had its own currency, and even if a province was controlled by several warlords,
If there is a currency system, there will be many kinds of currency.
Then there were the legal tender and the gold yuan, each one more deceptive than the other.
Farmers, who already had little assets, were repeatedly plundered by warlords. Consequently, rural farmers distrusted paper money, trusting only silver dollars. If silver dollars were unavailable, they would rather barter than accept RMB.
The simple reason is that the government holds much more power than we imagine.
You can attack from all sides.
Use fiscal, financial and trade means to force rural areas to accept the RMB.
"Director Chen, I propose that the introduction of RMB into rural areas in 1949 be an important task of the Finance and Economics Committee."
The city's finances are well organized.
So Bo Shuchun’s next idea was to bring the RMB to the countryside.
Chen Yun nodded.
He looked at the others. Everyone nodded. The acceptance of RMB in rural areas would be a good thing for other aspects of work in 1949. Chen Yun said, "Then Comrade Mao Zemin and Comrade Wei Hongjun should discuss this matter and come up with a specific plan.
"Yes."
"Comrades, our Finance and Economics Committee's goal for the new year is to achieve a balanced fiscal budget and stable prices, thus laying the foundation for the subsequent large-scale construction."
Chapter 795: North China Military Region Issue
The Finance and Economics Committee is busy, and other departments are also extremely busy. After all, it's the end of the year, and there's a lot to deal with. Especially for cadres of Wei Hongjun's rank, the daily workload of various reports and statistical tables is overwhelming. Wei Hongjun even gets a headache just looking at all these tables.
Because most of them are very informal, there are many problems in the forms. Because many cadres are filling out the forms for the first time, although they have tried their best, there are still many mistakes. However, even if it is informal and there are many mistakes, it can be
There are such statistical tables, which are very helpful in understanding the current
The situation was still very favorable. Without the intervention of Soviet experts, how could the current central government have produced such a complete table? Wei Hongjun had to attend meetings of the State Council, the Finance and Economics Committee, and the Planning Commission.
Of course, what is even busier is the reports on the National Compilation Committee and the central departments under its jurisdiction.
There are just too many.
Of course, in addition to these tasks, Wei Hongjun also has to preside over military district meetings.
Wei Hongjun could delegate routine military work to Tang Jie and Li Zhimin, but he was required to attend to the year-end review. Because Wei Hongjun primarily worked in the State Council, he often neglected much of the military region's work. However, the North China Military Region was a major military region.
More importantly, the North China Military Region was responsible for protecting the Party Central Committee. Therefore, many matters were very important and sensitive, and Wei Hongjun could not ignore them.
The meeting was attended by Tang Jie, Han Wei, Bao Shen, and Gao Shubian, deputy commanders of the North China Military Region; Li Zhimin, deputy political commissar of the region; and Long Daoquan, director of the political department. The commanders and political commissars of the provincial military regions under the region, as well as the leaders of the various arms of the region, attended the meeting.
Zheng Weishan, who was currently in charge of organizing the Soviet-armed troops, also attended the meeting. Everyone reported on their work one by one.
After everyone reported on this year's work, Tang Jie said, "Commander, I think there's a very bad trend in the military region right now." "What's the problem?"
Because Wei Hongjun could not grasp all the details of what was happening in the military region, he attached great importance to such meetings and listened to the opinions of the cadres.
Tang Jie said, "Commander. Ever since the Chairman called on the PLA to participate in the production campaign, our North China Military Region has responded to the Chairman's and the Military Commission's call. Not only has the Production and Construction Corps been established, but other units have also participated in the production campaign. We are restoring previously abandoned wasteland, reclaiming new land, and carrying out water conservancy projects and farmland development. It can be said that our North China Military Region's production campaign is proceeding vigorously."
The North China Military Region responded the fastest to the Chairman’s call.
Also the most positive.
Land was reclaimed and cultivated in Inner Mongolia and Suiyuan, and a Production and Construction Corps was established, along with public farms. The North China Military Region currently boasts infantry, cavalry, and public security divisions, as well as specialized arms such as armored divisions, anti-aircraft artillery regiments, and engineering corps. Together with the 71st and 74th Armies, the Infrastructure Construction Corps, the Production and Construction Corps, and the Engineering Corps, its total strength exceeds 30 million people. However, the North China Military Region currently ranks last among the major military regions in terms of military pay.
Because many troops do it themselves and are self-sufficient.
"The financial situation is difficult now, and it is a good thing that the troops can be self-sufficient." Wei Hongjun strongly supports the Chairman's proposal.
At this stage, any troops with spare capacity should be deployed to the production and construction campaign. Otherwise, the government simply cannot afford to maintain so many military camps. When finances were not unified, local grain and tax revenues were first withheld by provincial governments, then by regional governments, leaving the central government with very little. Yet, the central government still bore the heaviest burden of military pay.
This is how the central government’s fiscal deficit came about.
Moreover, in some harsh environments, restoring abandoned farmland and reclaiming new land is simply beyond the reach of ordinary people. Why, historically, was there so much wasteland, but landless farmers didn't reclaim it? It's because ordinary farmers simply didn't have the ability to do so.
Reclaiming wasteland is not an easy task for individual households, or even for entire clans and villages. Reclaiming wasteland is not simply about preparing the land; it requires supporting water conservancy facilities and the need to endure several years of no production. Who has the manpower and resources to undertake this task?
At present, only the army has the ability to open up wasteland on a large scale.
After reclaiming the land, the troops can fully learn from the Nanniwan model, not only to feed themselves, but also to pay food and taxes to the national government.
"But there's a big problem here. Commander, we are the military after all. Although there's no war in North China right now, we can't let our troops just farm and avoid fighting just because there's no war. If the troops participate in production and construction like this, it won't be long before these Hu troops stop fighting."
Tang Jie was very worried.
The Chairman advocated the production and construction of the troops, which was like a political task. There was no war in North China.
As a result, with the exception of the Soviet-equipped troops organized by Zheng Weishan, almost all of the North China troops were involved in production and construction. Tang Jie, a military cadre by training and now responsible for the daily affairs of the military region headquarters, was deeply worried.
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