"Oh my God, it's not a bond, it's a banknote." Shang Wu said in surprise.

"Banknotes?" Jia Xu asked Shangwu.

"Yes, paper money, after the money has developed to a certain extent, paper money will appear, but now, I feel that it is too early." Shang Wu said.

"Alright. You go and get busy first, the glass thing can be produced on a large scale, we can produce some glasses, glass supplies, etc., as long as they need, we can export them on a large scale. Anyway, those things don't mean anything to us. Shang Wu said.

"Yes, sir." Ergou knew that his chief and Mr. Jia had a lot of important things to discuss. Ergou's current ability is still very limited, after all, he has not received systematic education, and it is still very difficult for him to let such a person manage such a big stall.

"What exactly is a banknote? Why paper money is the last form of development. Jia Xu couldn't wait to ask about such a thing.

"To understand this problem, we first understand one problem, and that is deflation, inflation." Shang Wu said.

"The first is value, this society is constantly increasing value, for example, grain, if enough food is produced, the price of food will decrease, and the value of money will increase, and copper money can naturally buy more things." Shang Wu said.

"Hmm. I understand this. Jia Xu nodded and said. He still understands this truth very well, and he has read "The Wealth of Nations" and knows some economic laws.

"Now that we understand it, we can see it as an ideal state, and usually, money is the general equivalent, and he needs to measure the value of these goods, but this is an ideal state, and usually there are many, many factors, such as the number of goods, the number of coins, which leads to the fact that either the price is expensive, or the price is cheap, and with it, the price of copper money rises, or the price of copper money falls. The equilibrium between the two of them is always achieved by wavy lines, and such equilibrium is balanced by some kind of twist. For example, price. Prices are high, prices are low, that's it. Explain it this way, I think, do you understand? Shang Wu asked.

Jia Xu nodded, although there were some things he didn't understand. For example, the specific reason, but when Shang Wu talked about the price of waves, he suddenly found that this is the case, for example, the price of grain is through constant fluctuations to achieve a certain equilibrium, this balance is expressed through the price, high prices, which means that the price of grain production is low, and low prices indicate that the output of grain is very high. And through this constant fluctuation, a certain equilibrium is reached.

"I see. This goes without explanation. Jia Xu said immediately.

"And that's where we are right now. We need to spend a lot of money to solve such a problem. And it is in this situation that money appears. Shang Wu said.

"Gold and silver are naturally money, but there is no balance between the quantity and the price of gold and silver. Because he is limited to a certain extent, although we can make money in a fixed way in a quantitative way to fix it, for example, make a silver dollar, with our head on it, logo, such a silver dollar represents a certain price, but, whether it is a silver dollar, or a gold coin, he is subject to a certain limitation, natural minerals need to be discovered, mined, this is a process, however, our industry is developing very fast, for example, we can produce a hundred gold coins. But, in reality, there are only twenty in circulation, plus mineral mining, only fifty, and we still lack thirty gold coins, which leads to a problem, deflation. In other words, money cannot reflect such a situation with its own value, and in the face of such a situation, it will be very unfavorable for us, and this situation will make our situation even more complicated. Shang Wu said.

"I see. You're saying that we have such a situation today? Jia Xu quickly thought of the current situation.

"Yes, otherwise, you wouldn't have been in such a situation earlier here." Shang Wu said. After all, Shang Wu felt that he also had to bear some responsibility. Because they melted down a large number of copper coins and cast cannons. This leads directly to deflation.

"What are the implications if something like this happens? Wait, our factory. Jia Xu has realized that the impact of deflation on factories is very large. Because their production costs will be very large. This is a lot of pressure for the factory.

"Yes, I just got a report that also mentions the current situation of the factory, which is very good, but there are some problems." Shang Wu handed Jia Xu a report just now, and Jia Xu looked over quickly.

"Mergers?" Jia Xu looked at Shang Wu and asked.

"Yes, it's the same as the land, in the past, our small-scale peasant economy, although it was able to meet a certain demand for jobs and people's basic living needs, but the problem is that our climate determines that the climate characteristics here cannot be smooth sailing." Shang Wu said.

"We have a continental monsoon climate here. Winter is a northwesterly wind, which brings cold. The summer is the southeast monsoon, which brings us a lot of rainfall, however, there are often some deviations between these two monsoons, or there is a drought, the southeast monsoon is weak, and the northwest monsoon is strong. Or a flood, the southeast monsoon is too strong, and the result is such a situation. Shang Wu said. Jia Xu had already taken out his notebook and quickly recorded it. Because of these things, Shangwu had never said it, and it was the first time he had heard such a view.

"And our small-scale peasant economy, because of their weak savings, backward means of production, and weak ability to resist disasters, will eventually lose their land and a lot of everything they have in the event of disaster. These are the situations they face. They can only be annexed because their competitiveness is too weak. Shang Wu said.

"In the same way, look at the situation around us, our situation has also appeared a little different, for example, in this situation, many of our things will become extremely unfavorable, which will form a new unfavorable situation for us, the current deflation, we need a lot of money to support the development of our enterprises, what kind of enterprises do we support." Shang Wu said.

"Of course, those strong enterprises, factories. We have more than 180 factories, and there will be more enterprises in the future, but the problem is that the production capacity of these enterprises is different, some factories have more than 500 people, and some have 300 people or more, this situation is real, and the saddest thing is that under such competition, we still have a factory with three workers, which cannot be called a factory, but can only be called a workshop. Shang Wu said.

"At the moment, the situation is not very optimistic with austerity, they need a lot of capital, expand and recruit more people, in addition to more raw materials, and promote more markets. This is absolutely not going to work. Shang Wu said.

"What you mean, I see. What you mean is to encourage mergers, reduce the size of the enterprise, and then achieve efficiency improvement through mergers and acquisitions, and then increase to a certain scale. Jia Xu said.

"Yes, our bank funds are limited, we can't spread all the funds into it, this is not a good thing for us, it's like a war, if the bank disperses the funds, it means that nothing can be done well, if we concentrate our efforts and put a lot of money on a few projects. They may be evolving faster than we think. Shang Wu said.

"At the same time, we can save more labor, which is a very good thing for us, and this kind of thing will greatly solve our problems, which is what we should care about." Shang Wu said.

"Hmm." Jia Xu needs to digest something. Shang Wu said a lot of things that he had never accepted, that is, even opening a factory required a merger. The law of the jungle is the law of the jungle. No one, and no one, can escape such a law.

"What are you going to do?" Jia Xu asked.

"First of all, tax exemption, or to encourage mergers, for factories that develop a scale that exceeds a certain value, for example, the value of their exports reaches a certain scale, we start to reduce taxes, from five percent, to three percent, one percent. Encourage them to export on a large scale. Shang Wu said.

"Second, stock trading, which is an important process to encourage corporate mergers, and small businesses are merged. But in order to better protect their interests, for example, they have technology, assets, and personnel, which can be counted as shares. And after the enterprise reaches a certain standard, for example, the asset size exceeds 10,000 gold, or 5,000 gold, we can let them go public and trade, we can stipulate that the enterprise establishes a board of directors, a general meeting of shareholders, as long as the business owner holds 51% of the shares, they can expand more rights over the company, the enterprise. For example, determine the direction of the company's development, scale, and so on. Shang Wu said.

"That way, they can sell their shares to a certain size, or they can mortgage them to the bank, so they can get plenty of money, right?" Jia Xu asked.

"Yes, that's it, so that the business can get enough money and at the same time they don't lose control of the business, the company." Shang Wu said. Company is a new word. Jia Xu saw it as a kind of consortium of factories, enterprises, and trading companies. It's just a new name, but they can give the government more tax revenue.

"And what our bank has to do is to help such a business grow. Finally, they can expand the scale, in the Taihang Mountain, the Shangdang area, etc., as long as they want, they can expand more factories there. That's our encouragement to them, and that encouragement has a great effect on us, and we need this to happen, and it means a lot to us. Shang Wu said.

"I need to digest some of these things, you're talking too much. And the problem of paper money has not yet been solved. Jia Xu said.

"Okay, I'll go back and find some books, maybe they can explain such a situation, my thoughts are different in short, the Red Turban Army, the official army, their foundation is agriculture, and we are industry, and industry needs a solid foundation, that is, developed agriculture, if we can't do this, we can't accomplish many things." Shang Wu said.

"I understand that." Jia Xu put away his notebook, and they encountered a lot of new situations, which were no longer properly solved by Jia Xu's strategies, this was a new development model. This meant that the Red Turbans had a higher starting point than their opponents at the beginning, and they were faced with such a situation, which was a new situation that they had never encountered before.

Luoyang, North Palace.

"This Red Turban Army. It seems like something I've dreamed of. Emperor Han Ling looked at Huangfu Song's recital and said.

"Your Majesty, take a break." Zhang Rang said worriedly. Emperor Han Ling looked at that piece of music and it seemed that it had been a long time.

"How much does Zhang Changshi know about this Red Turban Army?" Emperor Han Ling asked Zhang Rang.

"This. This one. When Zhang Rang heard this, he felt that his head was blowing up, and he didn't know what the Red Turban Army was doing before, he just saw it as a branch of the Yellow Turban Army, but now it seems that this Red Turban Army is far more powerful than the Yellow Turban Army.

"Your Majesty, this may be just a petty thief." Zhang Rang thought for a while and said.

"No, no. The old general of Huangfu has a very high opinion of these thieves. I also agree with such a thing, but this treasury is empty, how can I deal with the war? The yellow scarf Zhang Bao also occupied Quyang, which is really hateful. Emperor Han Ling said.

"Your Majesty, it's inconceivable to be overly worried, maybe this is just a kind of scare, scare us and others, if our army is uplifted, we will definitely be able to defeat these red turban thieves." Zhang Rang persuaded.

"Hmm. Our army of 80,000 people, with the new army of Xiyuan, is unstoppable. Emperor Han Ling was relieved. Calculating, their forces still have a great advantage, and in the face of such an advantageous force, Emperor Han Ling felt that even if they started fighting directly, the advantage was also very great. The Yellow Turban Army, the Red Turban Army, seems to have a lot of troops, mainly the Yellow Turban Army has more than 100,000 people, but in fact, they can fight very little, they are still a rabble.