Chapter 926: An Opportunity for Monetary Reform
How much is enough gold?
A ton? Ten tons? A hundred tons? A thousand tons?
No one knows for sure. Pen | fun | pavilion www. biquge。 info
According to the formula given by the dragon, the proportion of brass and gold in Olija steel accounts for the vast majority.
The specific production ratio of Olija steel is brass:gold:mythril:gold:dragon's blood = 8:1.5:0.3:0.1:0.1.
This means that 800 tons of brass, 150 tons of gold, 30 tons of Mithril, 10 tons of gold, and 10 tons of dragon's blood are used to produce 1,000 tons of Oreja steel - of course, because the active ingredient gold cells are extracted, the dragon's blood can be replaced with gold cells, and according to the average amount of gold cells in the dragon family, the effect of 10 tons of dragon's blood is about equal to about 4 to 5 tons of gold cells.
Brass is good to say, Plandal's copper reserves are very large, and the brass mined at present is mainly used for the production of water pipes, as well as some metal utensils and parts of magic machinery, and the production capacity is absolutely sufficient.
Dragon's blood is also easy to say, once the dragon breeding industry is launched, the supply of gold cells can be said to be endless, and there is no need to worry.
The more troublesome areas are gold, mythril, and aujin.
Note that the cost of this recipe is measured in tons!
If Mithril and Arguin can be counted in tons, can they still be considered rare and expensive magical metals?
Dwarven blacksmiths, alchemists, and other professions use Mithril Arcane when they use it!
Thinking back to Sasha Glot's words, and then thinking about the golden giant god statues in the other space, the corners of Donn's mouth twitched.
Plantal's Mithril and Aujin have already been turned into Oreha steel to create the Golden Giant - but of course Donn will not re-destroy the Golden Giant's body and shape it twice to produce magic cannon armor for the dragon, which is undoubtedly picking up sesame seeds and losing watermelons.
Fortunately, Don is holding the golden thighs of the gods, Mithril and Augin, although it is impossible to supply large-scale industrial production, but it is no problem to deal with Sasha Glot's batch of orders, as for the remaining Mithril and Aojin, they can only be found from other magical metal mines.
Of course, there is another place.
Astral Plane.
The mineral resources on those planets in the astral realm are also quite rich, and in addition to magic metals, there are also heavy metals such as gold widely in the astral plane, but the biggest problem is ...... There's no way to mine it on a large scale.
Mining in the astral realm is equivalent to mining in the asteroid belt of outer space, and now that the industrial level of Plandal has not even broken through the atmosphere, how can it have the ability to mine in outer space?
If you use the power of magic to overtake and take a shortcut, you can certainly achieve a small amount of mining, but it can only be done with a stable astral base, and you must convince those magicians who have at least the grandmaster-level realm to be willing to venture into the astral realm to do miners......
This will not happen until the power of magic is completely demystified and becomes an ordinary power that can be thoroughly popularized.
At present, it seems that we should deal with this batch of orders first, and then find a way to find materials for subsequent production.
"Gold?"
Fiona frowned: "Isn't our existing gold mine energy enough?" ”
"I can't say enough, I just thought of one thing...... Don't you think there are too many gold coins circulating in various countries on the continent now? ”
Donn's words stunned Fiona, and then surprised: "Do you want to-"
"That's right, I want to recycle the gold coins, smelt and separate, and then restore the gold to its status as an industrial raw material."
Tang En nodded and said: "In the past, there were too many gold coins issued by various dynasties and it was too complicated, and some of these gold coins were stored in the coffers of various wealthy people, and some of them were still circulating in the market, which was very detrimental to the healthy development of the economy, so I think we should do something." ”
Fiona hesitated, and after a moment, she said, "Wouldn't it be too reckless to do this?" Gold coins have been the currency of Plandal for 10,000 years, and if there is to be a monetary reform, there will certainly be considerable resistance. ”
"How to say, the economic policy of the gold standard is based on the rare value of gold, but if you look at the current market, do you think gold is rare?"
Don spread his hands, and Fiona had nothing to say.
Because he is telling the truth.
Now there are hundreds or thousands of gold coins for any single product, and if it weren't for the appearance of the Star Diamond Bank, I'm afraid that even the transaction would be a problem - because it is impossible for anyone to go out with so many gold coins all day long, and the pressure will crush people to death.
Gold coins have many drawbacks as a currency, and if they can be reformed, it will be beneficial, but if they are not successfully reformed, I am afraid that there will be a very huge hidden danger.
It's not that the current Illus Empire coinage has over-issued currency, but because the previous concept of gold = equivalent has been inherited, so the old empire gold coins tend to have a large amount of stock in the world, and they are not all recycled and reminted, which leads to the current cycle.
In fact, now the existence of the Star Diamond Bank has greatly slowed down the difficulty of gold coin transactions, large transactions have begun to use the Bank card of the Star Diamond Bank to directly settle the card, and the accounts are calculated within the Star Diamond Bank, from a certain point of view, in fact, now Plandal has a prototype similar to electronic payment, and has not yet fully realized electronic payment, and the currency naturally has its existence value.
"Do you just want to recycle old gold coins, or do you want to reform the current gold coin monetary system entirely?"
Fiona sighed: "If it's the former, I can think of a way, if it's the latter, I'm afraid you have to discuss it with Princess Aurelia and Queen Olena, the impact is too big and complicated, and I still can't play politics a little bit." ”
"It's all going to be done."
"Not only do we need to recycle old gold coins, but we also need to carry out the existing monetary reforms, abolish the monetary system of gold coins, and introduce a new type of currency," Donn said decisively. ”
"A new type of currency?"
"Well, for example...... Folding money. ”
"Paper?"
Fiona was even more surprised: "How can paper act as currency? ”
After thinking for a while, Tang En said: "Let me explain it to you, for example, I am the president of the Datang Chamber of Commerce, you are the raw material supplier of the Datang Chamber of Commerce, and now I owe you one million gold coins for raw materials, I have no gold coins on hand, and there is no credit card machine of Xingzuan Bank for settlement for the time being, so I will write down an IOU in the name of the president of the Datang Chamber of Commerce, with this IOU, you can exchange for goods worth one million gold coins in any shop of the Datang Chamber of Commerce, are you willing to accept it?" ”
Fiona said without thinking, "Of course I do." ”
"Why would you want to?"
"Because you are the president of the Datang Chamber of Commerce...... Oh! I get it! ”
Fiona immediately had an epiphany: "The currency here represents credit!" ”
"That's right."
Don smiled very happily: "Expand the scene a little more, as the king of the Illus Empire, I will issue paper money instead of gold coins as a guarantee in the name of the king, and I will guarantee in the name of the royal family that the purchasing power of paper money is the same as that of gold coins, do you think merchants will choose portable paper money or heavy gold coins?" ”
"Paper money, of course," added Fiona after a pause, "provided that the merchant is willing to believe in the credit of the royal family of the Ilrus Empire." ”
"That's right, so to issue a new version of the currency, the first thing to solve is the credit problem of the royal family, or broadly speaking, the economic, political, and military strength of the Illus Empire.
Donn continued: "By issuing a new version of the currency, recycling the surplus gold in the market and smelting it into materials, we can greatly alleviate the problem of raw materials for Olija steel, and at the same time, we can digest the gold coins left over from previous dynasties in the process of currency exchange. ”
"You want to recycle those old gold coins at a discount?"
"Of course!"
Tang En said with a look of course: "That is the currency issued by the previous dynasty, how can we recognize it!" The reason why they can continue to circulate now is only because the object of the equivalent is 'gold', and once the status of gold is restored from the equivalent to the metallic material, those old gold coins lose their trading value, and even if they are collected, there is no point in holding them, and those people will be forced to exchange those gold coins that are stored and not in circulation. ”
"The most important thing is that in this process of replacing the new currency, we can control the total amount of new currency issued, and through the replacement process, we can know how much currency is actually issued in the market, so as to macro-control the entire market."
Of course, it is not so simple to carry out monetary reform, but Tang En only knows a little bit about this aspect, he knows nothing about more complex economics and finance, and he can't play with any treasury bonds and securities and other things, he only knows that paper money is a manifestation of government credit, and now the new government of the Illus Empire, represented by him, has rejuvenated the entire empire, and the public support rate is unprecedentedly high, coupled with the current unparalleled status of the Tang Chamber of Commerce, The implementation of this new policy can be said to be everything is ready, only the east wind is missing.
Of course, it may be better to implement such a radical policy in a few more years, but the problem is that time waits for no one, Don can afford to wait, and the world can't afford to wait......
Who knows when the Chaos Army will arrive?
Therefore, it is better to promote economic development and promote industrial progress as soon as possible.
"But how do you convince people to exchange the new currency?"
Fiona asked Don rhetorically: "The emergence of new things is always accompanied by all kinds of doubts and suspicions, how can people be so receptive to new currencies?" ”
In people's minds, gold coins are equal to gold, equal to something valuable, and if you ask them to exchange gold coins for a kind of paper money, they definitely can't accept it so easily.
The earth's paper money substitution alloy currency is also replaced by a very long time, China's Tang and Song dynasties Jiaozi can be said to be the earliest paper money, as the embodiment of the credit of the money and exist, and then Australia is the first country to completely use paper money instead of alloy currency, which has spent nearly a thousand years, you can imagine how difficult it is.
Thankfully, Don really has a way.