What are the basic functions of a bank?

Currency issuance, savings and exchange, and money lending, etc.

And what does a mint do?

Printing banknotes and minting all kinds of gold, silver, copper, alloy coins.

The combination of the mint and the bank is the foundation of the modern financial industry.

In other words, Jiang Chuan's previous focus was only on how to make money and how to get other people's money into his own hands, but he has always ignored a fundamental problem:

Money can be made.

What modern people know, Jiang Chuan has forgotten because of a temporary blind spot in his thinking.

And the word "Princess Ruoling's money bank" made him think about it all of a sudden, and he understood where his misunderstanding was.

Of course, there is a big difference between ancient banks and modern banks.

The bank can be regarded as the prototype of the modern bank, which originated from the exchange of silver money, and then gradually developed into the deposit and exchange of funds.

Different areas have different names, and there are other names depending on the size, such as silver number and money store.

Modern "banks" have many ways to make money, such as transferring money to other banks, remittances, small account management fees, annual fees, the difference between loan interest and deposit interest, providing investment and wealth management services, and cooperating with real estate developers.

A very common truth among them is to make money with other people's money.

Because of the high stability and convenience of the bank, many people are willing to give them money.

The different things modern "banks" make money by providing other services.

Such a phenomenon rarely existed in ancient money banks.

There are two obvious differences: in ancient times, not only did there be no interest on depositing money in the bank, but money had to be given to the bank.

Whereas, in a modern bank deposit, the bank will pay you interest.

On the other hand, the silver bills issued by the bankers were not currency, but were equivalent to the current bearer cheques and other bills of exchange.

And the paper money issued by modern banks is the real currency in circulation.

In today's Ming society, there are many kinds of currency, and there are many phenomena of private coinage, and precious metals such as gold and silver are still used as circulating currency, which is the real hard currency.

Moreover, the exchange rate between gold and silver and silver bills, and before copper coins, also varies from place to place.

According to Jiang Chuan's understanding, the early Ming Dynasty also issued treasure banknotes, but because the imperial court did not understand the basic financial laws, the indiscriminate issuance of treasure money, coupled with poor anti-counterfeiting technology, led to the middle of the Ming Dynasty, treasure money became waste paper worthless.

The banknotes issued by modern banks are based on gold reserves, which is what we call the gold standard.

Gold was chosen mainly because it has more diamond reserves than platinum and is scarcer than silver, making it the most suitable currency reserve.

Bank-issued banknotes are equivalent to gold equivalents in the sense that they can be exchanged for as much gold as they are.

In the beginning, when banks issued banknotes, people might come to the bank at any time to exchange the equivalent of gold for paper money out of distrust.

Banks will only be able to cope with this readily available exchange if they ensure sufficient gold reserves.

Over time, the credibility of the bank is gained, and the value of paper money is established.

However, if the indiscriminate issuance of paper money, regardless of the amount of gold reserves, leads to the depreciation of paper money and triggers a run, then paper money will become waste paper and the country's financial system will almost collapse.

It can be said that the value of paper money is built up little by little.

Along with the establishment of the value of paper money, it is also the gradual establishment of the credibility of the bank and the credibility of the country.

Of course, the gold standard system in which paper money was linked to gold was before the seventies of the twentieth century, and later with the huge economic development of various countries, the demand for paper money became more and more large, and the Bretton Woods system linked to the dollar and gold collapsed, and the gold standard became history.

At present, the value of banknotes in various countries is mandated by the laws of each country, and its issuance is determined by national taxes as collateral.

Of course, in order to discover paper money, the state apparatus must be strong in order to force the issuance at the beginning, which Jiangchuan has basically already had.

Second, after the system was upgraded to the early stage of industrial civilization, banks and mints could be built, which technically ensured that Jiangchuan could put an end to and rectify the now chaotic Ming financial and monetary system.

When banks and mints were established, they all brought their own employees.

Jiang Chuan doesn't have to worry about this, after all, the system has never let himself down before.

What Jiang Chuan has to do is to use the power of the state to forcibly issue paper money at the beginning, give paper money value, and let paper money really circulate.

At the same time, it is necessary to prepare for the emergence of a popular run in the early days of currency issuance, which of course requires a large amount of gold and silver to be stored.

Although Jiang Chuan is short of money, he can still find a way to deal with it.

Of course, the issuance of banknotes is a matter that needs to be considered in all aspects, and Jiang Chuan has been thinking about some general ideas for a long time.

However, once the idea is opened, the rest of the specific deployment is not a big problem, and there are professionals to do this.

Once the banknotes were discovered, as long as the initial run was passed, the basic credibility of the banks and the imperial court was established, and the problem of lack of money was solved.

The more Jiang Chuan thought about it, the more excited he became, touching his chin and pacing back and forth in the room, his eyes sparkling, and occasionally looking at Princess Ruoling who was standing on the side, he smiled inexplicably.

Princess Ruoling was looked at by Jiang Chuan like a little white rabbit targeted by a big bad wolf, although it was the height of summer, she still subconsciously hugged her arms, and took a step back vigilantly to look at Jiang Chuan, as if she was afraid that he would think something wrong about herself.

Thinking that this big headache would soon be solved, Jiang Chuan was so excited that he couldn't care about the reserved majesty of the regent, and strode up to Princess Ruoling and hugged her delicate little face, and took a bite on the white face with a little baby fat.

After kissing, he laughed and walked out, shouting as he walked: "Yang Chuliu, Guan Bao, prepare a horse for this king." ”

Jiang Chuan, who has always been a man of action, now plans to go out and choose a site for the upcoming central bank.

The location of the central bank is very important, and it is necessary to choose a prosperous and conspicuous location, first of all, to show the status of the central bank from the form.

Jiang Chuan has thought of the name of the central bank, and plans to call it "Zhongzhou Bank." ”

Now Bai Mu has become the commander of the new First Army, and Deputy Captain Ji Biao is also busy with the reorganization and training of the Guards Regiment, and now Guan Bao and Yang Chuliu are by Jiang Chuan's side.

After more than a year of military career, Guan Bao has become a heroic young general, and is now a company commander of the Guards Regiment.

Yang Chuliu has also been able to keep up with nutrition in the past year, and he has followed Bai Mu and others to learn martial arts, and his height has also jumped a lot, and now he looks like a young general, and he is the deputy company commander of Guan Bao.

This guard company of two people is always at Jiang Chuan's side to obey orders.

As soon as Jiang Chuan shouted, Guan Bao began to arrange in response.

Jiang Chuan quickly rolled out of the door like a wind, leaving behind his left cheek, his face was flushed, and Princess Ruoling, whose expression was both aggrieved and complicated, stood in place in a daze, not knowing what he was thinking.