The Chinese Empire, which was controlled by the people, broke out with astonishing efficiency, and in the year of the founding of the People's Republic of China, it underwent large-scale disarmament and expenditure reductions, and the financial structure changed from the three redundancies of the Song Dynasty.

Some of them went to the original box military system, which is equivalent to the local construction corps, to eat together, some to farm in the south, where labor was in dire need, and some to work in factories in the northwest where a large number of workers were recruited.

A large number of non-technical officials and necessary posts with no real contributions have disappeared, and many old-style officials who relied on the imperial examination and Enmeng as officials have been laid off. The waste who really has no relationship background, no ability to work, no moral discipline, can't stand in line, no learning, no skills, and incorrigible) has to go home and eat old rice. This has reduced the number of salaried posts for the new government by at least half, and the conversion of all posts with materials and labor benefits, including job fields, into cash payments has also greatly reduced the workload and costs of the financial department.

Without a large number of parasites who only received salaries and did not do personnel, the natural finances improved greatly, and the new government accepted all the public debts of the Great Song Empire, and all the national bonds and old Song money that had been unattended by the change of dynasty could be exchanged in the bank for the bonds of the new government and Chenji money. Old bonds are exchanged at face value.

The wealthy people who bought a large number of the bonds of the Song Dynasty were so excited that they invested their savings for many years into the treasury bonds, intending to hold these interest-bearing bonds that could be retired with the country as heirlooms for generations. As a result, many people almost committed suicide after seeing the change of dynasty.

In order to stably survive the transition period of the change of dynasty, the public who has mastered public opinion is naturally unwilling to smash the golden signboard of the financial industry, which is the root of their lives. At the beginning, he gave the highest credit rating to the bonds of the Great Song Dynasty Empire before he successfully sold all the bonds, and if it was announced that the new government would not recognize the bonds of the Great Song Dynasty. The rating company and the bank that sells it are going to stink on the street. How could the most credibility-conscious traversers make such a low-level mistake.

In order to maintain its credibility, it is natural that the new government will be saddled with the debts of the old government. In addition, the new government inherited the assets of the old government, and as a matter of course, it had to inherit the debts. However, in order to reduce the cost and only exchange at face value, those who bought the bonds of the Great Song Empire at the beginning basically bought these government bonds with a minimum annual interest rate of 10% at face value or a premium equivalent to 102% to 105% of the face value.

The new government is not only exempt from paying future interest on these national bonds, but also earns a lot of premium income. In this way, at least for five years, on the premise of not reducing taxes. The new government's greatly improved finances do not need to borrow new national debt, and it is enough to meet the large demand for funds for construction projects.

Credit is not only the lifeblood of an enterprise, but also the lifeblood of a country. Failing to recognize the debts of the previous regime and inheriting its assets is robbery of all creditors. It is a shameless act of banditry. What's more, the biggest creditor of the Great Song Empire is the Chenji Group itself?

As for the wide variety of coins made in the Great Song Empire, it is even more natural that all of them have been recast into ten times more exquisite Chenji coins. Every new dynasty must destroy and recast the old money of the previous dynasty. Although it is not necessary to learn from the many dynasties in history to erase all the marks of the previous dynasties, they will definitely not relax their power in coinage. Such rights involve great interests and national strategies.

A penny, regardless of the dynasty or generation, is exchanged for new copper coins according to the copper content. This is the best and fairest way that the crowd has come up with. Many Kaiyuan Tongbao coins of the previous dynasties and even the Tang Dynasty can be reasonably exchanged for new solid copper coins.

Yuanyou Tongbao basically accounted for 83% of the copper coins obtained from this big exchange. The other 10% was made by the names of other emperors in the Song Dynasty. The rest are some bad money from the previous dynasty and private coins.

The most headache is naturally the iron money characteristic of the Great Song Empire!

Chen Guanxian originally had a big head on Sichuan and several other special currency zones that circulated iron money, but this big exchange made this financial master lose a lot of hair.

According to the system of the Great Song Empire, there were restrictions on the exchange of iron money for copper coins, and it was a special currency zone specially established to deal with the serious shortage of copper coins. Only iron coins can be circulated in these areas. To buy a piece of cloth, you need at least as much iron as the cloth. A large number of rusty iron coins piled up in public and private warehouses were put there, and no one stole them, and stealing a pound of iron money could not buy a bucket of grain. Iron money has a small face value, a large weight, and low purchasing power, which is inconvenient for the people to use. That's why the precocious banknote Jiaozi appeared.

Originally, the Crossing Crowd was prepared to exchange the equivalent amount of copper coins according to the purchasing power in the special currency zone of the iron money without discrimination, in the opinion of the Crossing Public. With a modern minting industry, the currency of one country, two systems is hilarious. However, seeing the depression situation of Sichuan, a closed special zone with a developed economy, being drained by the Great Song Dynasty through this unfair system for many years, he did not dare to easily accept a large amount of iron money.

According to the latest statistics, it will take at least 10 years for the iron money in the SAR to be exchanged in a reasonable manner. This complicated act of exchanging one copper coin for hundreds of iron coins does not end in a day or two. From the period of the Five Dynasties and Ten Kingdoms, there was a large amount of iron money circulating in Sichuan. The purchasing power of iron coins varies greatly from era to era, and it takes a lot of effort to establish the exchange ratio of iron coins in the immovable era in order to convert the purchasing power of iron coins from the cellar into new money.

In order not to let the people suffer, the crossing people implemented the method of returning the iron money in kind in the exchange of iron money. On the basis of the market price, you are willing to slowly recover a large amount of iron money, and then use the price to convert into copper money and then put it into the market, except for a small number of exquisite and rare iron coins as collectibles, all the other iron coins are returned to the furnace to make iron, and destroyed.

As for the original banknotes, Jiaozi were all exchanged and destroyed in the same way as iron money.

Although metal coinage can be well preserved and used, its convenience and comprehensive performance are still not as good as paper money. The ticket system and banknote system have been implemented internally for many years. It is only a matter of time before it reaches every corner of the country.

The first set of banknotes printed was designed through the collective effort of the people, and the quality is superb and exquisite. The face value ranges from 1 cent to 100 yuan, and it is very sought-after. Together with the gold, silver and copper coins of Chenji coins, they form a monetary system designed by the people.

Free convertibility is at the heart of guaranteeing the value of banknotes. Banknote anti-counterfeiting is also the core. The face value of these banknotes is equivalent to 900 million Chenji coins, or 180 million kanwen purchasing power. In fact, only 10% of the reserve coins serve as reserves to cope with the run. Chen Guanxian's confidence in daring to do this lies in the excellent credit and strong power of Chenji Bank. The newly formed banking association is a set of teams for Chenji Bank to control the financial industry.

All member banks of the Association are governed by self-regulatory regulations, similar to the Basel Accord and UnionPay system, which is basically used only for risk control and settlement. However, Chenji Bank, which is not a central bank, has the same power as the central bank. The deposit and loan interest rate of Chenji Bank is the benchmark interest rate, and the reserves of Chenji Bank are the reserves of all banks (small banks that do not obey and maintain consistency have been run on and collapsed, on the contrary, obedient ones can get low-interest or even interest-free overnight loans from Chenji Bank when they are run. ）

What if Chenji Bank is run? Will Chenji Bank, which has minting rights and massive assets, also be run? With the Chinese Imperial Government behind it, and the support of the trust oligarchs covering almost all industries, who would run on this bank? Unless he has water in his head.

The first year of the republic in 1940 passed without a shock. When the Liao State informed the new government that it was time to pay the New Year's coin, the wealthy new imperial government recognized all the treaties of the Great Song Empire with the surrounding countries, and directly threw 300,000 yuan of the old system of money to the Liao State. This money was used by the anxious Liao lord to buy the arms of the Song State before it was covered in the treasury of Nanjing Dao of the Liao State.

A government that is not bad for money will use money to settle everything that can be settled with money.

As for the huge Liao and Song dynasties, oh no, the border defense systems of the Liao and Huaxia empires were basically bulldozed, and the armies that got a large number of horses from the Western Regions and the plateau did not need those ridiculous fortifications. All the large and small rivers and swamps were filled in and transformed into fertile land, and the Liao even took the initiative to withdraw troops from the border area of Xijing Province, which originally bordered Western Xia, to show its sincerity to the Sino-Liao friendship and the new government of the Chinese Empire.

The new empire that did not make any military moves did not mean that the military would not develop, the integration of the original large number of Western Xia horses into the northern standing army did not mean that the combat effectiveness increased, and the new arms and tubular firearms (flintlock pistols and steel cannons) equipped all armies did not mean that the empire entered the era of hot weapons. It will take time for mercenaries and quasi-officers of security groups (armed smugglers and security guards trained according to the Japanese-style elite non-commissioned officer training model, and officers as soon as the wartime mobilization system is activated) to integrate into the newly formed regular army sequence.

The autonomous region of Tibet, the allied Gaochang, and the civil strife of the Liao State could not have an impact on the empire, and Japan and South Korea, across the ocean, were even more vassals and broilers. Dali and Dayue are even more unlikely to have the strength and motivation to invade. The Haiyan River is a portrayal of the imperial republic in 1940.

The Chinese Empire, which had established a new diplomatic system, pursued an equal foreign policy with all foreign countries, sending ambassadors to establish embassies, regardless of the size of the country. Promoting the laws of modern diplomacy has become the main task of the old fritter Bai Jia.

There are no problems with the economy, the military, and diplomacy, and the natural regime will be as stable as Mount Tai. (To be continued......)