Volume 4: Hot! The whole world is a warring state Chapter 664 Preparing to Issue Banknotes
Coming out of Fangshan, Zhu Youdong was in a much better mood: Daming's overall technological level was still lower than that of the Spaniards. In the specialty of materials science, it was even further behind the Ottoman Empire. However, through the efforts of Daming scientists, Daming's technological tree was still climbing fast enough and was not completely left behind by the other two competitors.
That’s enough. With the institutional, cultural and demographic advantages of our Ming Dynasty, this gap is really nothing big.
With such confidence, Zhu Youdong finally had the mood to torment his concubines after returning to the palace. Then, the next day, at the first State Council meeting in the 20th year of Tianqi, the ministers saw an emperor with balanced yin and yang and a clear mind.
Speaking of the State Council, Zhu Youdong has not attended every meeting since the restoration of the position of Prime Minister in the Ming Dynasty . The reason why he wants to attend today is that there is an important matter in the meeting agenda that requires him to make the final decision.
Li Guojun, president of the Royal Bank, once again requested the court to issue paper money - because precious metal currency was no longer sufficient.
"Your Majesty, colleagues, in the 19th year of Tianqi, the national fiscal revenue was 450 million silver dollars. According to the average tax rate of our dynasty, which is only 5%, last year, the gross national product of our Ming Dynasty was about 10 billion silver dollars. According to the silver content of each silver dollar of 35 grams, if we want to buy all the products produced by the military and civilians of our Ming Dynasty last year, 350 million kilograms of silver should be put into the market. Even if we take into account the currency circulation speed and reduce this number tenfold, there should be 35 million kilograms of silver entering the market.
However, last year, the Ming Dynasty only dug out 700,000 kilograms of silver from silver mines in Japan, Qin, Jin and the mainland, and only got 600,000 kilograms of silver from the trade surplus with Western countries. Therefore, theoretically speaking, the silver shortage in the market reached 33.7 million kilograms last year.
Of course, this is just pure theory. The actual gap will definitely not be that big, because in actual economic activities, not every item requires silver dollars to be traded. However, Your Majesty, colleagues, it is an indisputable fact that the price of silver in the market is rising. The most intuitive example is the price of rice. Before the Ming Dynasty levied seals, the price of rice had been stable at 0.5 yuan per stone. When the seals were levied, the price of rice rose to 0.8 yuan per stone. But now, only three and a half years after the levy ended, the price of rice has fallen to 0.3 yuan per stone! Is this really a drop in the price of rice? No, the price of silver has risen!
It is foreseeable that in the next few decades, with the widespread use of steam engines, the annual output of our Ming Dynasty will increase, and even if the increase in silver brought by silver mines and trade is not decreasing, the growth rate will definitely not be faster than the growth rate of the gross national product.
Ladies and Gentlemen, the Ming Dynasty and its vassal states now use a unified currency. Prices in the Ming Dynasty have fallen relatively. For those vassal states that do not have the right to mint coins, I am afraid that the shortage of silver will become even more serious. The rise in silver prices and the relative fall in prices will seriously restrict the development of the country. The rapidly developing private economy of the Ming Dynasty will soon fall into recession... Therefore, I propose to the court to reopen paper money!"
After the central bank governor finished his impassioned speech, Finance Minister Cao Sanxi stood up and said, "Your Majesty, I fully agree with what Governor Li said just now. I would also like to remind Your Majesty that as Persia has completely become a vassal of the Ottomans in recent years, the Ottomans have used the Persian Gulf as a base to sell a large amount of chemical fiber fabrics to the areas controlled by our Ming Dynasty. Although our Ming Dynasty can still maintain a trade surplus with silk, porcelain and tea, there is no doubt that our trade surplus is decreasing!"
To be honest, Zhu Youdong didn't feel anything when Li Guojun said: After humans entered the industrial age, almost all industrial powers abandoned precious metals and adopted paper money. The reason is simple: productivity has leaped, and more things have been produced, far exceeding the extent of new precious metals entering the market. If you still stubbornly insist on the circulation of precious metal currencies, there will inevitably be a surge in gold and silver prices and a situation of extremely low prices - prices are something that only a proper increase is conducive to economic development. Too low prices will make businesses unprofitable, which will in turn cause production shrinkage and social regression.
Therefore, as the Ming Dynasty has come to this day, it is only a matter of time before it issues paper money - if it had not collected a lot of precious metals by cleaning up the Pure Land Sect many years ago, the Ming Dynasty would have issued paper money long ago.
What really made Zhu Youdong pay attention was that the Ottomans controlled Persia: India under his control was directly adjacent to the Ottoman sphere of influence.
However, that is another topic. The most urgent issue now is whether to issue paper money.
"I think everyone understands what Li Qing and Cao Qing mean. Is it okay to issue paper money? Let's talk about your opinions."
"Your Majesty." After the officials at the meeting looked at each other, Cui Chengxiu, the Minister of Commerce, stood up and said, "I also agree that with the current national strength of our Ming Dynasty, it is only a matter of time before paper money is issued. However, the trade between our Ming Dynasty and overseas countries is now settled in gold and silver. If we rashly start using paper money, it will definitely be detrimental to our maritime trade. Your Majesty, there are probably no less than thousands of factories in our Ming Dynasty that survive on foreign trade, with at least 500,000 workers. Including their families and children, this is at least more than 2 million. If something goes wrong with the trade system... Therefore, I think that paper money should be issued. But it should be issued slowly."
"Delay issuance? How? How long? Now the price of silver in the market is getting more expensive day by day, and the price of goods is getting lower day by day. The people are not stupid. If this continues, they will start to store silver dollars again. By then, there will be a shortage of silver coins in the market, and the court will not be able to collect money. Wouldn't it be like thirty years ago?" The person who shouted this was naturally not Zhu Youdong, but Li Guojun, who was eager to issue paper money as soon as possible.
"President Li, I am the Minister of Commerce after all, so how could I not know that the market is short of money? But... nevermind, Your Majesty, I heard that India has a lot of gold and silver. Can you let Prime Minister Wen do something there? Import gold and silver from India to help out? In this way, while the court continues to promote the importance of paper money, it will import a large amount of gold and silver from India and put it into the market. After that, paper money and silver coins will circulate together for a period of time, and in the end, silver coins will completely withdraw from the market."
"Your Majesty, what the ambassador of the Maritime Customs said is the words of an old and serious man. I second the motion."
"Your Majesty, I second this motion."
"Hmm." After thinking for a while, Zhu Youdong said, "My Lords, whether to issue paper money or not, there is nothing much to say. As for how to issue it, I will propose a general strategy, and please ask Prime Minister Yuan to lead everyone to implement it."
"Your Majesty, please give us instructions."
"First, publicity. It is undeniable that the excessive issuance of treasure notes in the past by the Ming Dynasty has led to the complete bankruptcy of the imperial court's credit in terms of paper money. Therefore, if we want to re-issue paper money, what I am most worried about is that the people will not accept it. Therefore, from now on, the Propaganda Department and the Jinyiwei must begin to formulate corresponding plans. We must break down the necessity of issuing paper money and explain it clearly to the people."
"Your subject Zhang Shize ( Tian Ergeng) receives the order."
"Second, Mr. Cui just mentioned the proposal to import gold and silver from India to temporarily alleviate the silver shortage. I have approved it. The cabinet should communicate well with the Governor-General of India. First, it should be clear how much should be imported from India at least every year, and then the method of importation should be determined. In my opinion, not to mention the Governor-General's District in India, even the remaining Indian states have zero tariffs on Ming Dynasty. Therefore, we should guide our manufacturers to sell more goods to India instead of always lingering in the already mature East Asian and Southeast Asian markets."
"Your Highness, I accept your order."
"Third, starting from the year after next, which is the 22nd year of the Revelation of the Heaven, new paper money must be put on the market. Three years, I will give you three years to use paper money and precious metal currency in parallel. By the 25th year of the Revelation of the Heaven, all precious metals such as gold, silver and copper must be withdrawn from currency. The Royal Bank must start preparing for the production of paper money as soon as possible, and should also prepare for anti-counterfeiting as early as possible."
"I accept your order."
"Everyone, you can spread this news. The Propaganda Department will soon announce it anyway. Of course, we actively spread this news mainly to make it clear to those merchants with whom we have established long-term trade relations. Five years later at the latest, my Ming Dynasty will only have paper money. Those who still want to do business with my Ming Dynasty should make preparations early."
"As you wish."
…
The meeting ended, but Yuan Keli stayed.
"Mr. Yuan, what do you want to talk to me alone?"
"Your Majesty, I beg for your life."
"Why do you say that, Mr. Yuan? But what did I do wrong?"
"Everyone can see that the country is thriving under the leadership of Your Majesty. The achievements of our Ming Dynasty today have far surpassed those of the Han and Tang dynasties. I am lucky enough to live in such a prosperous era and accompany Your Majesty to achieve such great achievements. How can I think that Your Majesty has done something wrong? But Your Majesty, I am already 76 years old this year. In the past one or two years, I often feel that I lack energy and cannot cope with the numerous state affairs. Your Majesty should have heard that I fell asleep at least twice in the middle of the 30 state council meetings last year..."
Alas, before I knew it, many of my first batch of team members are almost reaching their age.
In this year (1638), Yuan Keli and Xu Guangqi were both 76 years old, Sun Chengzong was 75 years old, Xiong Tingbi, who was slightly younger, was 69 years old, and Wen Tihen was 65 years old. As for the older Zhao Shizhen, Yang Tingyun, and Li Zhizao, they had already died in the previous years.
"I have received a lot of help from Mr. Yuan in the past thirty years. But..." After tapping the armrest of the chair for a long time, Zhu Youdong stood up with great difficulty: "Birth, aging, illness and death are beyond human control. Yesterday, I was at Fangshan Academy of Sciences, and Mr. Xu also expressed his intention to retire. Although I was sad, I still agreed. As for Mr. Yuan..." He pondered for a while: "If Mr. Yuan retires, who can take over Mr. Yuan's position?"
"Looking at the current officials, the Minister of Light Industry Li Biao seems to be a prime minister, and Hong Chengchou, who succeeded Sun Chuanting as the governor of Shuntian, is also not bad. However, the one I am most optimistic about is Ma Shiying, the current governor of Jilin."
"Ma Shiying? Isn't he Mr. Wen's student?"
"To promote talents for the country, one should not avoid enemies. Besides, the most that I have with Changqing is that we have different ideas, and we cannot be considered enemies. Your Majesty, since I turned seventy, I have been looking for a successor to recommend to Your Majesty. After observing for so many years, I think that although Ma Shiying is not morally determined and tolerant, he is resourceful and flexible in handling things. During his years in Jilin, he built a province with only more than 200,000 people into a province with a registered population of nearly one million, supported nearly 10,000 remnants of the army, and paid 3 million shi of grain to the court every year. This fully proves his talent. This was achieved in the environment of the Little Ice Age, when the production in the north was decreasing day by day. Moreover, during his years in Jilin, neither the Mongols nor the Jurchens dared to make trouble, which shows that he is very capable."
"Hmm..." After pacing for a long time, Zhu Youdong said, "Mr. Yuan, Ma Shiying's qualifications are still a little shallow. If I want him to be the prime minister, I will have to relocate most of the current cabinet members. This is a bit too much."
"Your Majesty! This cabinet has been in office for nearly nine years. It is time to replace the cabinet members."
"Mr. Yuan, don't worry. Just listen to me. As for Ma Shiying, I agree to transfer him back to the capital. Well, let him be the Minister of Public Administration first. Mr. Yuan, please work hard for me for another three to five years. When the issuance of paper money is stable, we will have a clear understanding of Ma Shiying. How about Mr. Yuan retiring at that time?"
