1207 Central Bank

This telegram was quickly uploaded to the Qin State General Staff. The attitude of the General Staff, like that of the 1st Infantry Division, was extremely suspicious of this telegram.

"Do you think this is possible? According to our intelligence analysis, how many Qiang people can exist in that kind of place. An intelligence staff officer looked at the telegram and said suspiciously.

"Who knows." Another staff officer said.

"This matter was sent by the 1st Infantry Division, what can we do?" The intelligence staff officer said.

"Then put it there for now, and wait for the next report." The staff officer suggested at this good time.

"Okay." The intelligence staff temporarily put the telegram, which was thought impossible, away. In their opinion, this is simply a joke. Can there be so many Qiang people? The content of this telegram can easily give rise to great suspicions. Because, according to the geographical knowledge and understanding of the Qin people, it is difficult to have a large population on the plateau, in the environment of high altitude, low temperature, and lack of oxygen. And the existence of 100,000 people. It is almost an impossible number for the people of the Qin State, and for them, it simply does not exist.

In this way, the contents of this telegram were simply ignored. However, at this time, the Qin State was not concerned about the actions of the Qiang people. These Qiang people did not pose a huge threat to the defense and security of the Qin State, and the real threat came from within the country.

"According to the plan I have made, Qin will buy the bonds of these banks according to the current plan for banks to hold state bonds." Shang Wen sat in a wheelchair at this time and gave King Qin a detailed introduction to the current plan he had made to purchase bonds and release a large amount of banknotes.

"But for now. The number of banks holding bonds in the Qin state accounted for only 21.5 percent of the bonds issued. This figure was far from satisfying the huge paper money needs of the Qin State. Shang Wen said.

"Moreover, the number of bonds held by banks may not be able to solve the large paper money shortfall." Shang Wen said at this time.

"So, right now, we need to issue brand new bonds. The number of bonds will be significant. However, this requires the old bonds to be recovered and put into the market, and of course, we can also use the old bonds for new bonds. Shang Wen said with his report.

And King Qin only listened to Shang Wen's report. King Qin can only understand the truth by listening patiently.

"However, I think that it is not suitable to issue a large number of bonds at present, and the main lack of the current Qin State is paper money, not bonds, which can absorb paper money, which is not of much use to the current tight liquidity of the link." Shang Wen obviously said with some contradictions.

In this regard, King Qin frowned, obviously what Shang Wen said had deviated from King Qin's concern.

"Uh-huh." At this time, King Qin snorted. In order to prompt Shang Wen to deflect the topic.

Shang Wen paused when he heard King Qin's humming voice. Then I looked at my own report.

Does Shang Wen think there is something wrong with what he said? Shang Wen himself didn't know.

"Because banks hold a smaller share of bonds. And we need to go through the banks to complete the injection of paper money into the market. Shang Wen looked at his report and said.

Thank God. Shang Wen changed the topic in time this time, if he hadn't shifted it, King Qin would inevitably be angry with him. And Shang Wen thinks that it is time to change the topic because his report should say so.

"Therefore, we need to use the funds to acquire the stocks, bonds and other financial derivatives of some leading companies in the important pillar industries, so that we can help them inject capital, and at the same time, we can also fulfill our goal of saving the current crisis of Qin." Shang Wen said at this time.

"That's right. Now the banking industry in Qin is in chaos. There is also the ongoing merger within Qin's banks. I think that the current banks in the Qin State are not only merging, but also reorganizing, reorganizing those small banks with higher capabilities and risks, and merging them into one big bank. In this way, the banking industry can safely and stably provide funds for the Qin State, and even the entire Six Kingdoms. Shang Wen said at this time.

"Funding for the Six?" King Qin didn't understand what Shang Wen meant at this time?

"Well, I mean, the Qin State can put its financial industry in order, and then it can invest a lot of money in the Six Kingdoms. In this way, the economies of the six countries were closely linked to those of Qin. We are developing the six countries on the one hand. On the other hand, we need to develop the six countries, use our funds to control the six countries, and finally achieve the goal of reunification, so that we don't have to spend more money to feed the army, and then use force to start a war for reunification, which will cost us a lot. And the cost is huge, I'm afraid that the Qin State can't afford it at all now. Shang Wen said at this time. Of course, the current state of Qin is indeed unable to support a huge war. The war was very costly. Moreover, some headwinds remain. Although the Qin State had a great advantage in weapons, this was simply not something that weapons could solve.

War is a war of mankind, weapons are only a tool of mankind, and it is still man who finally solves the war. And not weapons.

"Therefore, we need to strengthen our control over the economy, even if there is a negative side, we can achieve our goals through economic means, but it is really not possible, and economic problems are also one of the best means for us to wage war." Shang Wen said at this time.

"Yes." King Qin reluctantly agreed at this time.

"So, is there a specific plan for the bank to be rectified?" At this time, King Qin asked.

"This, my idea is that Qin still needs to establish a mechanism similar to a central bank, and this mechanism is to prevent such a situation from happening. The main responsibility of this mechanism was to supervise the reserve requirement ratio of the Qin state. At the same time, the exchange business of the major banks will be fully integrated through this bank. Shang Wen said at this time.

"This bank, preferably established by the state, and then the government controls the liquidity of the banknotes of the Qin State by controlling the reserve ratio of this bank. At the same time, we should be prepared for the recurrence of such a situation. Shang Wen said at this time.

At the same time, Qin should strengthen financial management at this time. Measures such as raising stamp duty and other transaction taxes, curbing excessive financial speculation, etc., at the very least, should be established by the State of Qin, such a mechanism as the Securities Regulatory Commission. to prevent excessive speculation from damaging the Qin economy. Shang Wen said at this time.

But none of these were of interest to King Qin. King Qin was interested in banks, because King Qin believed that the central bank that Shang Wen was talking about was best served by the royal bank.

"So, how is that central bank organized?" At this time, King Qin asked.

"This is controlled by the government. It is up to the government to set it up. Shang Wen said at this time.

"This, the widow thinks, should be handed over to those banks to deal with." At this time, King Qin took the initiative to propose.

Hearing this, Shang Wen was greatly surprised. Because Shang Wen believed that the government's control capacity should be strengthened, but he did not expect that the king of Qin would ask for it to be handled by the bank. Shang Wen didn't understand why.

"The banks of the Qin State should form a central bank according to their own wishes. The central bank has jurisdiction over all banks, and if a single bank is set up, it may be difficult to bear the burden. Moreover, this bank wants to be profitable. The prime minister's bank doesn't seem to be profitable, right? At this time, King Qin asked.

"This. That's true. Shang Wen admitted at this time.

"The state of Qin could not support such a bank that did not make money. This bank is not able to carry out its business. You can't make money. King Qin refuted Shang Wen's point of view at this time.

Shang Wen nodded silently at this time. Shang Wen acquiesced to the existence of this unprofitable bank, because according to Shang Wen's understanding. Central banks are meant to be above all banks. The bank mainly controls the reserve requirement ratio and the adjustment of interest rates. This is to control the hostile competition between the banks, and the government will control the business of all the banks. And, through this bank, all banking transactions are transferred. Not only that, but the central bank will supervise the flow of funds from all the banks in the Qin state. In this way, the Qin government controlled all the situation by setting up a central bank. Obviously, Shang Wen's idea is more thorough.

But the King of Qin opposed such a plan. Because this plan will override the royal bank, which means that the royal bank, as well as the Wenyang bank, and other banks will be under the orders of the government's central bank.

This, this made the royal bank, which had just annexed some banks, suddenly have a bigger bank rival. And the king of Qin is not thinking about the state now, but the interests of the royal bank, the king of Qin owns the whole country, and the state is the private property of the king of Qin, but in such a free environment, the king of Qin cannot use these resources.

And the only resource that King Qin can use is the royal bank. Control other resources through the Crown Bank. From the standpoint. This is very true, because money is the country's largest source of liquidity. These resources are capable of controlling a significant part of the country.

But the government controlled the country by establishing a central bank, and the worst thing was that the government was in the hands of the prime minister, not the king of Qin. This also means that by controlling the central bank, Shangwen can control a considerable part of Qin's resources. This was a threat to King Qin.

King Qin naturally considered such a threat, so he put forward his own views on this plan, and opposed it, at least in this regard, he was resolutely opposed.

And Shang Wen didn't think about it so far. He just put forward this plan directly according to the current needs of the Qin State. For the rest, Shang Wen didn't think too much.