1705 Benefits of Minting

George Bernard Shaw had no authority to decide such a large order, but he could ask Marlin for advice. It just so happened that after the spy Bud was stationed in Persia, he had already established a carrier pigeon transmission route along the line from Persia and Ukraine to the German mainland.

So, the letter of request for instructions was sent back to the mainland through the carrier pigeon, and Marin was asked for instructions......

Marin was also taken aback to see that Persia actually wanted to ask the North Sea Kingdom to help mint brass coins. Ismaili I's bid was relatively low, and he was only willing to pay a little higher than the Persian copper price. The Persian silver and copper price ratio is 1 to 60, and if you really want to follow this comparison, even if the price is raised a little, Marin will not make any money.

Thinking of this, Marin was going to refuse. But then, I don't know what came to mind, he still agreed......

Why did Marin agree to take such an order with low or very low profits? Not for profit, but for influence!

Let's ask, if Persia will rely on the North Sea State for coinage in the future, can it not rely on the North Sea State economically?

The North Sea Kingdom has the right to mint coins for Persia, and when the time comes, if you want to go to Persia to buy something, you can directly start minting Persian brass coins. Anyway, the money mold is ready-made, and you can get more copper plate forging and pressing. Then, they were taken directly to Persia for cattle, sheep and oil, without costing gold or silver. And this is what Marlin values the most!

Persia is also the top power in the Middle East, and holding the right to mint coinage in a country is definitely the best means to influence a country.

Although the profit of minting copper coins is not high, the political impact is immeasurable!

Therefore, Marin finally agreed to help Persia mint 50 million copper coins according to the 1:50 silver and copper price. As for the reason for the price increase, brass coins are not pure copper, but need to add a lot of rare precious metals to it. Then, there's the cost of manual construction...... In fact, zinc is not expensive, at least cheaper than copper, but only Marin knows how to extract zinc in the world, and there is no other semicolon, he says that it is expensive, and Ismaili I does not understand it anyway...... Moreover, if there is too much zinc, the cost can be reduced. After all, zinc is less expensive to mine and is much more abundant in ore than copper.

Subsequently, this decision was passed on to Persia by the carrier pigeons through the newly built carrier pigeon relay route.

After receiving Marin's reply, Ismaili I felt that the price was quite fair, so he agreed to this amount. However, the specific mintage of the brass coin will have to wait for the sample to be delivered.

In fact, if copper was purchased from Persia and brought back to mint coinage, Marin would not make a profit, or even lose money. However, if you purchase copper ingots from India, where the ratio of silver and copper is more than 1:80, you will be profitable. Although the profit is not comparable to that of maritime trade, it can be regarded as profitable.

But the profit didn't matter, it was nothing compared to the ease with which the Persian economy could be influenced and controlled through coinage.

Moreover, even if the 50 million copper coins were minted for Persia alone, the profit would not be low. In addition to the low cost of copper imported from India or the Ming Dynasty, these copper coins were also directly taken to Persia to buy livestock.

In fact, Ismaili I did not intend to price the brass coins at a ratio of 1:60 to silver and copper, but directly priced the copper coins at the price of Malinti. In this way, according to the ratio of 1 to 50 silver and copper, 50 copper coins are equivalent to the value of 1 silver coin of equal weight.

In addition, the price of gold and silver in Persia was different from that in Europe. The ratio of gold and silver here is about the same as in India, about 1:10, not 1:12 in Europe.

In other words, 500 brass coins can be exchanged for one gold coin of equal weight. The brass coin weighs 3.5 grams, which is about the same weight as a European gold coin. In other words, 50 million brass coins can be used as 100,000 gold coins in Persia.

And once these 50 million brass coins were minted, they were not sent to Persia in exchange for gold and silver, but directly for horses, cattle and sheep, and oil.

These 50 million brass coins alone can buy 10,000 war horses from Persia! It's a war horse, not an ordinary Persian horse!

The Persian horse is only 10 gold coins each, and the price is really low. This can't be helped, who said that Persia has no export market. Prior to the cooperation with Egypt, only two Shiite states in India could be used as horse exporters in Persia. However, the cavalry of these two states was not large, and the number of imports was limited. Therefore, the price naturally cannot be sold.

In fact, the horses of Turkey and Crimea can be sold for 20 gold coins each, also because of their proximity to Europe. Affected by the high prices in Europe, the price of war horses was speculated so high. The price on the Persian side is the normal price in a nomadic country. The Ming Dynasty, where war horses were scarce, was only 20 taels of silver (equivalent to 17.4 gold coins) at the price of a horse, not to mention the Middle East, where there was no shortage of horses? The price of horses in the Ming Dynasty was so expensive, or was it slaughtered by the grassland tribes......

……

Previously, Marin had been worried that there would be no goods to exchange with Persia. After all, it is too much of a loss to use gold and silver directly, and it is not enough in China. If you exchange it for goods, the Portuguese don't agree.

Well, now that the Persians asked the North Sea Kingdom to help mint brass coins, that's no problem. In the future, if you want to buy a horse, you can directly mint 5,000 Persian brass coins, and you can use it to buy a horse in Persia.

As for the brass of the coinage, the cost is really not high. As long as you don't stupidly use high-priced copper from Europe, but use cheap copper from India and Daming, plus zinc metal is added, the cost can be reduced a lot.

Right now, it's not just the Bakkens lead-zinc-silver mine on Newfoundland that is producing zinc ingots, but the Goslar lead-zinc-silver mine is also producing zinc.

However, because zinc metal can only be used to make white iron sheets, and the amount of white iron sheets is currently very low. Therefore, there are a lot of zinc ingots in the North Sea country, and there is no place to use them. It's definitely a good choice for minting coins.

However, it seems that more than 20% zinc in zinc brass will have problems. But it's nothing, it's a big deal to control the zinc content within 20%, and the profit is relatively large.

……

In fact, the biggest significance of helping Persia mint brass coins this time was to allow Marin to find a suitable commodity to trade with Persia - coinage.

With this deal, Marin will want to buy Persian livestock and oil again in the future, and it is a big deal to open the mold and cast another batch. Moreover, if the amount is not too large, the Persians will even welcome it.

Sure enough, when George Bernard Shaw and Ismaili I continued to negotiate, Ismaili I made it clear that he did not mind the North Sea Kingdom minting more Persian brass coins.

Anyway, Persia itself did not have the ability to mint coins on a large scale, but only symbolically minted some gold and silver coins that symbolized royal power. Copper coins are foreign currencies that flood the market.

Rather than flooding the Persian market with cheap copper coins from India, it would be better to flood the market with Persian brass coins minted with the help of the North Sea Kingdom. After all, although this was made with the help of foreigners, the Persian script and Persian style used also represent the Persian court.

As long as the price is reasonable, Ismaili I doesn't care about the Beihai Kingdom. Anyway, he thinks the huge Persian market can eat it. Moreover, the North Sea Kingdom is just a small big principality, how strong can the coinage power be?

This judgment is very reasonable under normal circumstances, but Ismaili I did not know that the coinage of the North Sea Kingdom had long been not handmade, but machine-pressed, and the efficiency had not been improved by a star and a half. As long as there are enough light plates, how much is pressed by the machine......

Later, the undisciplined Marin really minted hundreds of millions of brass coins and took them to Persia to buy things. However, because the price given by Marin was relatively reasonable, it did not disrupt the economic order of Persia, but promoted the prosperity of the Persian market......