Li Junhao believes that a currency that devalues rapidly is itself a bad currency, and that the policy of promoting a bad currency or ignoring this phenomenon is a bad government and a severe punishment for acts that infringe on the interests of the people. There was no way to do it when he said it, but now that he has the ability, of course he can't let this phenomenon continue.

As early as when he first came to this world, when the portable system was just launched, the system mall clearly did not accept fiat currency, he has successively experimented, and the system recognizes that the currencies of various economic powers and heavy metals such as gold and gold and silver can be exchanged for gold coins.

After the start of the German-Polish war on September 1 last year, the system mall began to reject Western European currencies such as the German mark and the French franc, and at the beginning of this year, in addition to gold, silver, and eagle ocean, the only paper money recognized by the system is the pound sterling and the dollar, and the value of the dollar is rising, as of mid-April, the system exchange ratio has risen to 1 gold coin = 1 pound pound = 4 US dollars = 20 eagle ocean.

Li Junhao had a feeling that the value of the pound would fall as the war progressed, and he even thought that when Germany began to bomb London, the only paper money that would remain strong might be the dollar; Thinking of the hegemony of the US dollar in his previous life, he decided to follow the law and use the US dollar as the base currency of the concession.

To this end, he specially met with three directors of the Ministry of Industry Bureau, Menate Forge of the Shanghai branch of Citibank, Vo Greco, president of the Shanghai branch of the Union Bank of Switzerland, and Liu Haifeng, president of the Association of Chinese Banks, to discuss this issue with them.

Three banking professionals affirmed his idea, but raised a key problem that could not be solved - the money supply!

At present, the money supply in Shanghai is actually relatively chaotic, and all kinds of foreign currencies, fiat currencies and oceans are mixed, and if only a relatively single dollar is used, the supply of dollars in the market will be insufficient.

In this regard, the solution proposed by the three bankers is to add the eagle ocean as one of the main currencies, but considering that there are as many as seven or eight types of oceans on the market now, how to balance the value of the currency is another problem.

Li Junhao had already thought about this problem before, so he put forward a new idea: the Ministry of Industry of the Concession would use tax revenue as a guarantee to issue a kind of token coupon, corresponding to the US dollar, which is called "US dollar coupons" or "foreign exchange coupons" to make up for the lack of currency; As for the issue of the ocean, the exchange rate between the eagle and the US dollar is determined by using the eagle as the standard, and other types of oceans need to be exchanged or verified by the designated banks before they can be used.

The three bankers looked at each other after some thought, and after some thought, they thought that this solution was good, but they also raised several new questions:

1. How to control the number of US dollar bills issued?

2. In order to make a smooth transition, the best way is to recycle fiat currency and exchange it for US dollars or US dollar coupons for the public.

3. After the successful issuance of US dollar coupons, how to deal with the large amount of fiat currency recovered?

Fourth, how to determine the ratio of the variegated ocean in the hands of the citizens who exchange the eagle ocean as the standard?

5. What should I do if the number of Yingyang is not enough in the exchange?

In contrast to these main questions, there are other questions, such as: How to get the approval of all banks? How many outlets do I need to arrange for redemption? How much time does it take to convert all the commodities in the market to USD? ……

Li Junhao thought about it for a while and felt that although these problems were relatively difficult, they were not something that could not be solved, and what he needed now was this kind of expertise and solutions...... Well, these three in front of you are all good experts, and you must take advantage of them

He looked at the colors of the dots of light in his mind, all of them met the requirements, so let's become his own person first!

More than half an hour later, the three bankers, who had become comrades-in-arms, left with the task of going back to draw up a plan for monetary reform.

——

On Monday, April 29, Li Junhao attended a rare weekly meeting of the Ministry of Industry and Bureau, first raising the issue of concession currency, and then the three directors explained their proposed reform plan......

After more than two hours of meeting, the directors understood most of the reform plan, and then saw that Mr. Pan Sen, the vice president, firmly expressed his support for this plan, of course, everyone should also support it, anyway, there is no loss to them.

At noon on the same day, the Ministry of Industry announced the establishment of a financial management committee under the board of directors, with director and commercial counselor of the U.S. Consulate General Hizzy Hampley as the chairman, and directors Menate Fugges, F. Greco, and Liu Haifeng as members.

Just when people from all walks of life had not yet figured out what the responsibilities of the FSC were, the No. 1 announcement of the FSC was published in the major newspapers early on the morning of the 30th.

"In order to maintain the financial order and stabilize the market in the Shanghai Concession, the FSC has decided to launch the following measures:

"1. From 13 May, the circulation of fiat currency in the concession will be completely stopped, and all industries in the concession will determine the US dollar as the base currency, which will circulate at the same time as the standard eagle ocean, and the exchange ratio between the two will be 1:5;

"2. From 1 to 31 May, Citibank Huhai Branch, UBS Huhai Branch, banks under the China Commercial Bank Association and their business outlets will exchange currencies in the Huhai residential area at the exchange rate of 1:9.25 between the US dollar and the fiat currency at 6 a.m. on 30 April, and will not be accepted after expiration;

"3. In order to make up for the shortage of US dollar money supply, the Bureau of the Ministry of Industry shall issue US dollar exchange coupons worth 200 million US dollars with the tax revenue of the concession as a guarantee, and the value of US dollar coupons and US dollars shall be 1:1, and the same circulation, and the types of coupons issued shall be 1 cent, 2 cents, 5 cents, 10 cents, 20 cents, 50 cents, 1 yuan, 2 yuan, 5 yuan, 10 yuan, 20 yuan, 50 yuan, and 100 yuan;

"4. All industrial and commercial enterprises in Shanghai and the Strait shall not refuse to accept US dollar coupons for any reason, and violators shall be severely fined;

"5. In order to stabilize the value of the currency, other currencies other than the US dollar and the standard eagle ocean are prohibited from circulation, and all kinds of foreign currencies can be exchanged into US dollars at the exchange rate at various banks within a specified period of time; The ocean needs to be folded into an eagle ocean.

"This announcement will come into force from the date of issuance, and we hope that the general public will know about each other."

This announcement was undoubtedly tantamount to dropping a bombshell on Shanghai and even the whole country, and all sides reacted extremely violently at the moment, especially the Kuomintang government, the issuer of the fiat currency, which was so angry that it jumped to its feet and protested to the US Embassy almost as soon as it received the news.

Ambassador Jensen, who had already been informed by the Consulate General in Shanghai, of course did not accept this protest, and replied that this was a political decision made by the Ministry of Industry of the Shanghai Concession and had nothing to do with the US Government.

(End of chapter)