Can the central bank take back the right to mint money and strictly control the circulation of bank bills, so as to ensure that the financial order is foolproof and that private banks do not have problems?

It's certainly not that simple.

Even if a bank no longer mints money privately, but obediently abides by the rules set by the central bank and retains at least 50% of the gold and silver reserves for the bank bills it issued, it is still possible that the risk will surge due to the blind expansion of the balance sheet, and once the capital chain is broken, it will fall into operational difficulties.

In order to avoid the above situation as much as possible, in order to establish a relatively perfect financial order, Roland has to add a few more insurances: for example, the "reserves" that are currently supervised by the commercial banks themselves and are ready for the central bank's irregular spot checks will be collected into the central bank's treasury for unified supervision, such as stipulating that commercial banks must maintain a certain capital adequacy ratio, such as formulating "rediscounting" and "re-lending" policies, so that the central bank can play the role of "lender of last resort" in the event of a financial crisis......

However, Roland does not intend to implement the above-mentioned overly complex financial management system at present, and it is still the same sentence - a genius who is half a step ahead, and a madman who is one step ahead. Institutional building must be done slowly, and rushing too much will make things worse.

In fact, just because of the ban on private coinage and the supervision of bank bills, Roland has already equated himself with a "madman" in the eyes of some "liberal" bankers.

The bankers who attended the national financial conference were divided into two groups, most of which were local bankers from Krasburg, all of whom had participated in the anti-tax movement and had participated in the ceremony to welcome the Kolass Legion into the city. They are either members of the "Club of the Awakened", or people in Chancellor of the Exchequer Zahar's circle of friends, or more of both. These bankers have long established friendly relations with Roland under the mediation of Zahar, and they are well aware of how terrible the energy of the central bank is, and they have published a statement of "resolutely supporting the leadership of the central bank" to show their loyalty to Roland long before the meeting. However, Roland's deterrent power is not unreaching, radiating outward from 23 Financial Street in the capital, and the farther away from Colasburg, the less influential he becomes. About a third of the bankers who came to the meeting were out-of-towners, who did not live in the capital or do business in the capital's economic circle, and were very dismissive of Roland, the young central bank boss, and protested the new central bank rules publicly or privately:

"The right of private coinage is sacrosanct!"

"It is sufficient for the issuance of bank notes to be guaranteed by the banker's personality, and there is neither the need nor the obligation to accept the supervision of the central bank - the supervision of this kind of behavior is in itself a doubt on the integrity of the banker, and it is an insult to the banker's personality!"

"In the past, when there was no central bank, didn't the bankers of the Far East live the same way, and the economy did not collapse, why did that kid blindly command as soon as he came to power, thinking that he was a prince and knew all about everything?"

"Lao Tzu has been in this industry for more than 30 years, how old is he, where is the qualification to tell me? Roll as far as you want! ”

……

The cries of the opponents also reached Roland's ears, but he did not immediately take violent measures against those financial moths who did not know the height of the sky, but silently dug the pit and waited for them to jump into the pit themselves.

The day after the end of the National Financial Conference, newspapers from Krasbourg to all parts of the Far East published the two bombshells that Roland threw at the national commercial banks on behalf of the central bank, causing heated discussions in all walks of life.

Overnight, countless economists sprung up in the kingdom of Koras, commenting on the new central bank rules from different perspectives. The farmers in the fields and the toiling workers in the factories were neither aware nor interested in the topic, and it was really only a small group of urban middle-class people who were not in absolute numbers, but who had the greatest social influence and the strongest voice.

The urban middle class in the Far East, who are mostly senior employees of industry and commerce or owners of small and medium-sized enterprises, often deal with financial institutions and have a keen sense of the impact that changes in the rules of the banking game will have on their jobs and businesses, and their attitude towards this impact depends largely on the existence of relevant interests.

Over the next three days, Rowland scoured through John Plitt newspapers circulating across the country, scanned all the relevant opinion pieces published in the newspapers, and categorized them into two positions: "pro-central bank" and "critical of central bank".

Most of the articles do not have a clear position, and after supporting the new rules of the central bank, they also cautiously raise some concerns, which is of course an old opinion, and the most representative of the attitude of the majority, but unfortunately it is really boring to read, and it is not very useful for Roland's statistical analysis.

The articles of the two factions with clear positions are full of gunpowder and are more interesting to read. Among them, the authors of the articles that are optimistic about the new rules of the central bank are mainly two types of people, one is the government financial bureaucrats headed by Zahar and the bankers in the capital area, this kind of article has little reference value, and the voice they make in the newspaper is not necessarily the voice of the heart, but mainly expresses the posture of political side, among which there are many sycophantic articles touting Roland's "farsightedness" and "young genius". Roland got goosebumps when he saw it, and he really couldn't stand the numb tone of these sluts. There is also a group of business practitioners, economic observers and independent scholars who really have "dry goods", who mainly look at the new regulations of the central bank from the perspective of maintaining the country's financial security and economic stability, and have a positive attitude towards the central bank's practice of recovering private coinage rights and supervising bank bills to control credit bubbles.

As for the opposition's articles, they are mainly published in the tabloids of various towns and cities outside the capital, which praise the integrity and reliability of the commercial banks, and are unhappy that the bankers' legitimate business has been brutally suppressed and grossly interfered with by the central bank, and nothing else.

This kind of article is obviously instructed by the local financial groups that resist the central bank, and Roland is not taken to heart at all when he is angry about the remarks of these shameless literati.

However, there are also very few articles critical of the central bank's new rules by economists who truly believe in "free markets" and "invisible hands". For example, Roland saw a highest-level article pointing out that the state's monopoly on coinage meant that it was giving birth to an extremely dangerous tendency to overly superstitious about public power and to despise the laws of value of money itself. If this tendency is not guarded, the central bank will one day completely abolish the circulation of gold and silver coinage and replace it with "central bank bills" in accordance with the frenzied impulse derived from public power.

So here comes the question -

"The central bank supervises the issuance of bank bills by private banks because it does not trust the integrity of bankers and does not believe that every bank bill is backed by real gold and silver reserves, so is the bank bills issued by the central bank absolutely credible? Who will supervise whether there are sufficient gold and silver reserves behind the "small pieces of paper" issued by the central bank as a credit guarantee? ”