"Fundamentally solve the problem of silver shortage.?"

His brows jumped slightly, looking at Smith in front of him, Zhu Mingzhong basically knew the answer. His answer should be said to be very simple.

"In fact, the king is now in Jiangbei to implement the silver dollar coupon is a very good choice, in terms of the population and area of the Ming Dynasty, the use of gold and silver currency always has its inconvenient place, such as the inconvenience of carrying, compared to the heavy gold and silver coins, the carrying of paper money is extremely convenient, businessmen in foreign business, often willing to carry paper money, rather than gold and silver coins, as far as I know, the JAC Bank issued the largest denomination of the fixed amount of promissory notes, has been as high as 10,000 yuan, even if it is a large transaction, only a few only, can be close to the collection."

After coming to the Ming Dynasty, the most surprising thing for Smith is probably the paper money, whether it is equivalent to the fixed amount of paper money or the later silver dollar coupons, completely subverted his understanding, and then through some understanding, I know that China has a history of using paper money for 600 years, although both the Song Dynasty or the Yuan Dynasty paper money has had serious inflation, and even directly led to the demise of the dynasty, and the Ming Dynasty government faced the serious inflation caused by paper money, had to lift the ban on silver to alleviate the crisis, but in Smith's view, As long as the policy of parallel silver dollar coupons and silver dollars implemented in Jiangbei is strictly implemented, the problem can be fundamentally solved.

According to the statistics of banks in Jiangbei, in December last year, 65% of the money deposited in the bank was silver dollar coupons or fixed amount promissory notes, 30% was silver dollars, 5% was money, and in May this year, the amount of silver dollar coupons deposited has exceeded 70%, I expect that in the next few years, it will stabilize at about 80%, and in Nanjing, outside Jiangbei, the deposit amount of banknotes is 35%, 37% in Nanchang, and 25% in Wuchang, Even in Guangzhou, it has reached 10%, which shows that the market is recognized for the silver dollar bills of the Jianghuai Bank, of course, there are two reasons for this recognition, one is that the bank does everything possible to use all methods to implement the silver dollar bills, and the other is that in the case of the lack of silver in the market, the silver dollar bills will naturally be accepted by the people, of course, this acceptance, some are forced to be, and even the local government outside Jiangbei has to agree with the silver dollar bills, because our silver dollar bills can indeed be exchanged for silver ......"

When Smith used data to show that silver dollar coupons were slowly being recognized outside Jiangbei, Zhu Mingzhong did not have the slightest pride in his heart, although he learned from the experience of later generations to create this silver standard with physical gold and silver as the guarantee.

"The reason why our silver dollar bills are good credit is because they are based on silver, and silver dollars can be freely convertible, both can be circulated at the same time, and the amount of banknotes issued is relatively small, and it is also thanks to the sufficient money supply that Jiangbei's commerce is becoming more and more prosperous, and the gradual increase in commodity trading volume directly leads to the need for more currency in the market, and the current circulation of silver dollar bills in Jiangbei is increasing, it is precisely for this reason. This is also one of the factors in the emergence of the silver shortage, if we can not cope with the extremely high, Jiangbei is likely to stage a silver shortage, after all, our silver dollar coupon issuance is limited, while the market demand is increasing, now, even in Changsha, the local big businessmen do not refuse the silver dollar coupon ......"

As the deputy manager of the bank, Smith has been focusing on studying those data, so he knows very well that the current situation of the silver shortage has not been solved, but only alleviated to a certain extent, and with the prosperity of the market, the silver shortage will only intensify.

"The prosperity of the market in Jiangnan and other places, directly leads to greater demand for currency, although there is a large amount of silver flowing into Jiangbei, but our coinage is also circulating outward, at the beginning of Jiangnan and other places using Jiangbei's silver dollar, in the process of using silver dollars, the market accepted silver dollar coupons as a supplement to the market, and compared to silver dollar coupons, outside Jiangbei, people are more willing to accept silver dollars, so Jiangbei market coupons are becoming less and less, silver dollars are constantly outflowing, has been issued silver dollar coupons have 7 percent in Jiangbei, and minted silver dollars 70% It has been outflowed to various places, the bank's reserves are decreasing, once there is a run, it is certain that it is difficult for the bank to redeem 70 million yuan of silver taels, and once it cannot be exchanged, then the credit of the silver dollar coupons is very likely to be ruined, even if it is only a run that cannot be exchanged, the consequences may be catastrophic! ”

When he said the word "catastrophic", Smith deliberately accentuated his tone, lest the king would not be able to understand it, and emphasized.

"Because when the news spreads, it will eventually affect everyone's confidence, and the issuance of silver dollar bills is based on people's confidence in the bank! Without faith, everything will disappear. ”

"You're worried about a run?"

With a slight frown, Zhu Mingzhong immediately realized where the weakness of JAC Bank was. Although he received a large amount of economic benefits through JAC Bank by virtue of the issuance of paper money, paper money is a credit currency, and once the credit is affected, the consequences are naturally catastrophic.

Run!

This is the biggest shortcoming of silver-based silver dollar coupons, because its credit is based on free exchange, so as long as someone holds a huge amount of silver dollar coupons at a time, and asks for exchange, the bank cannot exchange them immediately, it is very likely to cause a chain reaction, in this era of inconvenient information communication, any rumors may destroy the credibility that Jianghuai Bank has built up with great difficulty, and then destroy the silver dollar coupons, once the credit of the silver dollar coupons is destroyed, Jiangbei's economy is bound to suffer a heavy blow.

"Lord, this is what will inevitably happen, we have branches in Nanjing, Hangzhou, Fuzhou, Wuchang, Guangzhou and many other places, the existence of these banks allows us to absorb the funds of the time, so that our silver dollar coupons are accepted by the local people, and at the same time prosper the local economy, the benefits we obtain are unimaginable, but the local rulers are also our competitors, and when I left Qinghe, the new King of Min had ordered the establishment of the Jiangnan Bank, Although there is no bank in Wuchang, as early as last year, they have printed two silver coupons, in order to defeat the competition, they will naturally use all means to squeeze us out of the local market, so as to let their paper money occupy the market, Dawang, this is inevitable! ”

Perhaps, this is the biggest difference between the officials and scholars of the Ming Dynasty and the officials and scholars of the Manchu Dynasty, unlike the Manchu Qing Dynasty that took 50 years to open the first bank, whether it is Nanjing, Wuchang, or even Nanchang and Guangzhou, after seeing the huge profits obtained by the Jianghuai Bank in the local operation, they have begun to take action, they will not sit back forever and watch the money and profits go to Jianghuai, and the local banks, silver dollars and silver dollar bills will soon appear in the market, this is only a matter of time.

"That's not the root cause!"

Shaking his head, Zhu Mingzhong, who frowned, said,

"Financial competitors, lonely is not worried, what is really worrying is political opponents, one day, we will have a political conflict with them, and in the process, they are bound to use all means to suppress us, including economic offensive, with the help of a run to hit the credit of JAC bonds, is its inevitable choice!"

Smith's reminder made Zhu Mingzhong see his own weakness, relying on some financial knowledge learned from history, or based on the run on private banks and money banks that occurred from time to time in the late Qing Dynasty and before the liberation.

"So is there anything you can do about it?"

"Raise the reserves of non-local banks!"

That's when Smith said what he meant.

"In order to avoid a large-scale run, my idea is to raise the bank reserves in Nanjing, Wuchang and other places from 1 million taels to 3 million taels, or even 5 million taels, to cope with a possible run, but it is difficult to do it by relying on the banks alone, so I hope that the king can agree to deposit the seized silver in the bank and then ......"

"Your trick is to beat the dog with meat buns, and there is no return!"

Zhu Mingzhong refused almost without thinking.

"Not to mention anything else, such a silver in the field, itself is not considered, once we have a conflict with them, this silver is likely to be robbed by them, and we have five million, they can withdraw six million, even if there are 100,000 taels that can't be redeemed, our credit will be finished, people won't ask you if you have exchanged 5 million taels, only care about the tens of thousands of taels that have not been exchanged!"

In the history of banking from the late Qing Dynasty to the liberation period, there was more than one bank that was dragged down by a similar run, once a run occurred, only a very small number of banks were able to deal with it, but there were still some banks, they did not need to worry about the run at all, and the people did not worry that they would not be able to pay the silver at all, because the people knew that they had a lot of silver!

"If you want to stop them from running on the run, there is no possibility, now, they may not be aware of our financial weakness, but soon, they will realize this, when the time comes, it will be too late to stop them, or in other words, if you want to prepare the silver to deal with the run, there is no possibility, there has never been a thousand days to be a thief, how can there be a thousand days to prevent thieves?"

The king's explanation made Smith understand his misunderstanding, no matter how well prepared he was, it was impossible to stop others from trying.

"Whenever they have the chance, they will try, it's inevitable, thief? It is impossible to defend day and night, and if you want to stop them from running, you must fundamentally dispel this idea of them......"

Walking in the room, Zhu Mingzhong's brows frowned, and countless thoughts came out of his heart, suddenly, his eyes lit up, and a solution to the problem appeared in his mind, and there was a similar method that could be used in history.

"Well, Lone has a way to give it a try!"

After saying this, Zhu Mingzhong raised his head and asked.

"When you came from Haizhou, did the "Qi Guo" serve? ”

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