2612 Abolition of the Gold Unit
Capital has the obligation to find security independently, Zhao businessmen are also keenly aware of this, the stock market can not rise permanently, rise, just give a chance, but will never give too many opportunities, businessmen with the help of this rise to get a certain amount of capital, they have to find a way to solve their own problems. For example, invest safely.
Private banks may be a good choice, because any business is inseparable from capital, and without capital, the problem may never be solved.
Qinguo, Xianyang, Wenyang Bank.
"The Prime Minister's Office did not immediately issue metal currency, and it seems that the Prime Minister's Office is still cautious about the circulation of metal currency." Ying Yu said this to Xiao He after reading a report. As for how to develop next, especially with the help of monetary reform, Wenyang Bank will strengthen its banking role. To expand the bank's influence, Yingyu has put a lot of effort into it.
"Hmm. However, there was an official letter from the Prime Minister's Office, and they wanted to know the impact of abolishing the gold unit in paper money. Xiao He said to Yingyu.
"What do you think?" Yingyu asked.
"I think that after the abolition, it can effectively stimulate people's demand, because, intuitively, gold, which is equivalent to a hundred and a half taels, and the existence of half a tael, the cost is also very significant, but if there is gold, it is equivalent to narrowing this gap correspondingly, and the unit of gold is too large. On the contrary, in practical application, because of the existence of gold, there is no large-amount transaction, and there is no small-amount transaction, half a tael has been satisfied with people's needs, and gold can only be satisfied with large-amount transactions. Xiao He said.
"For example, in this way, we usually buy some daily necessities, and we don't use gold, and the unit of gold only exists in a company as big as ours, but the unit of gold is too large, if we use half a tael, it is like using a decimal point, and we will be more accurate. The use of gold is too general. Xiao He said.
"Well, I remembered. When we open the salary, if the salary is a few gold, the employees may not earn a lot, because they feel that this is the case, but how to use half a tael, almost more than a thousand and a half taels, it sounds like the unit value is the same, but the feeling is different. Is that the case? Yingyu said to Xiao He.
"Yes, chairman, this is such a truth, we must give such a concept, after all, no one pays too much attention to such a psychological hint, but if there is more money in this way, it will stimulate people's consumption, or give a hint, that is, their wages and salaries are much more." Xiao He said.
"In this way, it will also stimulate us to issue more banknotes, for example, on the part of the government, because people need more banknotes to meet their psychological needs." Xiao He continued.
"Hmm. It seems that the abolition is very significant. Yingyu said.
Shang Wen's Prime Minister's Mansion.
"In my opinion, the significance of the existence of the unit of gold is not very large, and its actual use is only in large-scale commercial activities, and in actual transactions, it is not very obvious, and what can be done with half a tael, gold cannot do. On the contrary, because of the existence of half a tael, the existence of gold has little meaning, and I think that the existence of gold units is a waste or a meaningless existence. The Minister of Finance said to Shang Wen.
"So, everyone supports the abolition of the gold unit system?" Meng Yi asked the ministers.
"Yes, what can be done in half a tael, the unit of gold can indeed be abolished. It's just that we don't know what the reaction of various countries will be after the abolition of the unit of gold, after all, the banknotes of our Qin State have always been linked to gold before. If the unit of gold is suddenly abolished, it may lead to the depreciation of our banknotes, a run, and I am afraid, there will be a certain amount of confusion. How long this chaos can be sustained, we are not clear enough to abolish it. The Minister of Finance said worriedly.
"Don't worry about this, maybe countries already have such an idea, and at the same time, we have a lot of gold reserves in our hands, and no one wants to buy so much gold piled up at home, if I think right." Shang Wen spoke at this time.
"Chu and Korea will provide us with plenty of gold." Shang Wen said at this time.
"In Bangladesh, these two countries have received a lot of loot, their booty is piled up, if you add the indemnity of Bangladesh, the amount of gold will be far more than we imagined, this is an extremely terrifying number, we don't have to worry about such a lot of gold hoarding, because, the supply of gold will be solved." Shang Wen said.
"On the contrary, the abolition of the gold unit is conducive to the further issuance of paper money, because the exchange of paper money is a problem. In the exchange, we can further issue more banknotes. Shang Wen said.
"From the perspective of the historical development of money, the existence of gold, for our previous demand, is a long-term deflationary state, because the mining of gold is not easy, but his value is too expensive, so, the circulation of goods is not too good, it can be said that the existence of gold units is to meet the needs of the deflationary era, but now, we need inflation, that is, to meet a large amount of money demand, and then after the satisfaction of this money demand to bring a large amount of material satisfaction. This satisfaction requires more money to complete our sense of need. In this way, we need more paper money. Therefore, the unit of gold, abolished, is an inevitable choice of history, and this choice is very correct. Shang Wen said.
"So, repeal. It is an inevitable choice. We don't have to worry about anything. Shang Wen said to the ministers. Everyone nodded, and they also agreed with this statement, although the ministers did not have a sense of monetary history, but they believed that people were more satisfied with the needs of small units than the demand for larger monetary units, just as copper coins and gold in history met the demand for copper coins and silver, rather than larger units of gold. However, after Shang Wen's decision, it was still not determined how the next monetary reform of the Qin State should be carried out, the Qin State only abolished a monetary unit, but it did not completely break away from the control of gold, how to make gold and currency separate.