Chapter 446: Financial Crisis
After Chung Daoyou returned, he convened several vice premiers and several relevant ministers for discussion. Pen & Fun & Pavilion www.biquge.info
Some ministers opposed Zhang Wei's rejection of several of his proposals, while others supported Zhang Wei's decision.
Everyone pondered and did not come up with a reasonable solution; Zheng Daoyou had no choice but to gather relevant personnel to go to the palace the next day to seek countermeasures with Zhang Wei.
In the small conference room of the royal family, more than a dozen high-ranking officials of the empire gathered.
Zhang Wei sat in the first place, saw that everyone had arrived, and said: "Now start a meeting to analyze the current economic problems of the empire and find reasonable solutions. “
Zheng Daoyou spoke first: "Your Majesty, ladies and gentlemen, throughout the development of history, the rise of any country and force will inevitably be accompanied by the weakening of other countries or forces, and the interests of one step or force must be sacrificed in order to gain the impetus for their own development, such as the rise of Spain and Portugal, and the profits come from the cruel exploitation of tens of millions of Indians in the Americas; The rise of Britain was accompanied by an era of sheep eating people; Russia's strength was built on the misery of tens of millions of serfs; The first rise of the empire was also based on the rich dividends obtained from the suppression of the natives. Now that the empire's economic development is in a bottleneck, the cities are short of a large number of workers, prices are skyrocketing, and corporate profits are decreasing, some people must make sacrifices; The small-scale peasant economy was a major obstacle to the development of the empire, and the empire had to make some concessions to the peasants and the countryside for the development of the empire. “
The Minister of Agriculture, Forestry, Animal Husbandry and Fisheries said: "Your Majesty, I oppose the sacrifice of the interests of the peasants and the countryside to support the development of the cities, the peasants of the empire are still living very hard, the countryside is still very backward, the peasants are only solving the problem of food and clothing, most of the people living are still the earthen houses left by the original aborigines, the roof leaks rain and ventilation on all sides, and even the improvement of living conditions has not been achieved, and it is too cruel for them to sacrifice their interests now; Besides, the peasants are also citizens of the empire, and the countryside is the cornerstone of the empire's strength, and we cannot sacrifice their interests, otherwise it will not be beneficial to the long-term development of the empire. “
"Industrial development has reached a bottleneck, prices of materials and workers' wages have skyrocketed, profits are very low, there is simply no money left for technological transformation and expansion of reproduction, if this phenomenon is allowed to develop, it will be a devastating blow to the empire, and we must find a way to reverse the current situation," said the Minister of Industry. “
The Minister of Agriculture, Forestry, Animal Husbandry and Fishery retorted: "Today's business owners, especially large enterprises, already have the strength to manipulate market prices, they seriously depress the purchase price of agricultural and sideline products, and the profits are eaten by them, such as the fishing industry, the fish brought by fishermen, the price is very low by the food company, but the seafood can not be stored for a long time, can only be sold to them cheaply, and the price of seafood in the market is high, if they still lose money, it is their business problem. We should find the reasons from ourselves and strengthen the management level, rather than letting outsiders bear their losses. “
Zheng Daoyou said: "Due to the existence of the small-scale peasant economy in the rural areas, a large amount of labor and raw materials are occupied, and it is necessary to release the personnel and materials in this area and replace them with large enterprises and large factories with higher production efficiency, which is an inevitable process of social development." “
Zhang Wei said: "Don't quarrel, everyone should not quarrel, about solving the labor force, I have an idea, the first rapid development of the imperial economy was brought about by the confiscation of the indigenous arable land and property, at the expense of the interests of the indigenous people, and now there is a lack of urban labor, we can sacrifice the interests of the indigenous people again, and the major industrial and mining enterprises can make more use of some free indigenous labor, as long as they are given stuttering." “
"Your Majesty, your request is that natives are not allowed to appear in the empire, and now the natives in the empire have been sent to the southwestern Dominion and the western part of Papua Island." Zheng Daoyou said.
Zhang Wei made a decision: "Well, except for Java Province, other provinces can hire a certain number of free laborers from the Empire, and the free labor force in each province must not exceed one percent of the population of the province, and these free laborers are not allowed to bring their families, and they will be repatriated to the Southwest Dominion after a certain number of years." The Government Council is responsible for communicating with the General Staff on this matter. “
The people in the government affairs yuan system were very happy about this and gladly accepted Zhang Wei's proposal.
Zheng Daoyou said: "I support His Majesty's decision, but after all, this cannot be extended to all enterprises, in this regard, I also propose to reduce the interest rate of corporate loans, prosper the market economy, and increase the vitality of enterprises." “
Before Zhang Wei could speak, Gao Jinyuan, the governor of the Imperial Central Bank, said: "Your Majesty, everyone's analysis and discussion have only seen the appearance of the problem, and this approach is to treat the symptoms but not the root cause, and even make things worse, and everyone has not seen the essence of the problem at all. “
Everyone was very curious about what he said, but all the leaders in various economic fields were present here, and they all had the right to speak on economic issues.
"Then you can explain to you, the more thoroughly we discuss today, the better, and find out the root cause of the disease to better treat." Zhang Wei said.
"Yes, Your Majesty, what everyone is talking about can be summed up in one sentence, the empire is in a serious economic crisis."
His words made the participants gasp, everyone is very afraid of economic crises, capitalism has developed for hundreds of years, there have been many economic crises, all of which are unsolvable, and all countries are helpless about it.
Gao Jinyuan did not care about everyone's attitude, and continued: "The economic crisis of the empire is different from the economic crises that have occurred in other countries, and the personnel of the market research department of our central bank of the empire have conducted careful research and analysis, and have come to a conclusion that this economic crisis is actually a financial crisis, and the source of the crisis is that the empire has issued too much currency, which has led to currency depreciation. The currency of the empire is pegged to gold, and the currency cannot be depreciated, so it can only act in the opposite direction to promote the appreciation of the price of materials in the market, because the small amount of paper money in the hands of citizens cannot be exchanged for gold for preservation, they can only spend it as soon as possible, buy materials or store materials for value preservation, and this storage phenomenon leads to a shortage of materials in the market, and the price is further increased, and the peasants' reluctance to sell grain also belongs to this category; If workers' wages do not keep up with the rate of price increases, their quality of life will decline, leading many workers to prefer to go back to farming rather than work in the cities. Coupled with the deep-rooted love of the Chinese for the land, they feel that the land is fundamental, and the workmanship is only an expedient measure, so the phenomenon you see will appear. “
"So does the central bank have a way to deal with this phenomenon?" Zheng Daoyou asked.
"Yes, that is, to withdraw the currency in the market as soon as possible to stabilize prices, and the fastest way to withdraw the currency is to increase the deposit reserve ratio and the interest rate on deposits and loans."
Gao Jinyuan's answer obviously did not satisfy Zheng Daoyou, which not only did not support his proposal to lower interest rates, but also raised interest rates, which made it more difficult for enterprises?
So Zheng Daoyou said: "This method is absolutely not possible, is there any other way?" “