Emperor Su He listened to the thoughts of these officials.
The Dahua Empire has initially completed industrialization, but the top officials of the empire still don't understand much about industrialization.
Many people believe that even if there is an economic crisis, the government should not interfere too much and leave everything to the market.
This kind of thinking adheres to the idea of treating things that one does not understand by doing nothing.
It's better than officials who don't understand and interfere indiscriminately, but it's definitely not what Emperor Su He wants to see.
He directly named the prince and said: "Shu'er, what are your opinions on the economic crisis?"
Prince Su Shu stood up and said confidently: "Father, I think Prime Minister Lin Wenjing's suggestion just now is correct.
The court must ensure that unemployed workers have jobs.
In addition to allowing workers to maintain stability, the workers themselves were also a huge asset to the court.
Workers in the empire are unemployed, and they must find a way out. There is a high probability that they will be poached by vassal countries at high prices.
It takes several years to train a qualified worker.
The loss of a large number of qualified workers will inevitably lead to slow development of domestic industry.
The economic crisis of the empire must not turn into a crisis for the empire and an opportunity for other vassal countries."
Prince Su Shu's first priority is to preserve the empire's wealth.
Some factories can be wiped out due to poor management by factory owners.
But skilled workers must be kept in the empire.
Prince Su Shu saw the power of industrialization.
The war between Cao and Wei in America also shows the intensity of war in the industrial age.
In the age of cold weapons, if a small country swallows up a large country, there will inevitably be problems within a big country.
In the era of industrialization, there is only one possibility for a small country to swallow up a large country. The industrial foundation of small countries is stronger than that of large countries.
Prince Su Shu has always had a sense of crisis. After he ascended the throne, his brothers chose to attack the empire.
Will other forces in the empire think that this is an internal matter of the royal family and choose to sit back and watch?
This situation is similar to the Battle of Jingnan in the Ming Dynasty.
The industrial strength of the countries established by other princes really exceeds that of the empire, and there is a real possibility that Prince Su Shu will be kicked off the throne.
If this happens, the rest of the empire will not be in great turmoil, but his family will inevitably be purged, and not a single baby under the age of one month will be left behind.
Prince Su Shu could only try his best to ensure that the industrial strength of other vassal states, especially the Sweet Potato Kingdom established by the prince, could never exceed the empire.
Emperor Su He was very satisfied with Prince Su Shu's idea.
Other officials are also concerned about the domestic impact of the economic crisis.
Prince Su Shu has begun to pay attention to the impact of the economic crisis on the world.
He realized more clearly that workers are the most valuable asset of an industrial country.
As long as experienced workers remain, even if an industrial country is in ruins, it can be quickly rebuilt.
After the economic crisis is over, industry will develop again, which must also rely on skilled workers.
Emperor Su He smiled and motioned to Prince Su Shu to continue.
Prince Su Shu gained the approval of his father, and he became more confident, and said confidently: "Father, I think that except for workers, I will be the best."
The empire must not leave all companies affected by the economic crisis alone.
Especially heavy industry companies, which are companies that the empire spent more than ten years and worked hard to build.
They have just achieved certain results. It would be a pity if they were affected by the economic crisis.
For example, Tangshan Iron and Steel Plant, Pentium Power Machinery Plant, Mawei Shipyard, Honghulu Pharmaceutical, and Longchang Automobile Plant.
There are also some companies with great potential, which represent the direction of new technologies.
For example, the Feiyue Electronics Factory invested by Erchen produces radio transmitters that are sold all over the world.
It does not satisfy that radio can only transmit text.
The emergence of the telephone allowed scientists to realize that electricity could carry sound.
The exploration of radio transmission of sound is continuing.
After the economic crisis, many collaborations between the Royal Academy of Sciences and the private sector will come to an end.
The empire should increase funding for scientific research. Only scientific and technological progress can bring about industrial development and help the empire successfully get out of the economic crisis.
I discussed the main cause of this economic crisis with many professors and scholars, and we all agreed that it was the economic crisis caused by overproduction.
A large number of factories can only produce goods with low technical level.
These industrial products with no technical content can no longer meet the needs of the people.
The end of these industrial products can only be unsalable.
The industrial crisis also has a good side, it can screen out industrial products suitable for the market.
If the government forces the closure of factories, those businessmen will definitely complain.
But the products they produce cannot adapt to the market, and they can only bear the price themselves.
Erchen's opinion is that the imperial court takes action to protect companies that are extremely important to the empire.
But for other companies, let them compete freely in the market, the fittest will survive, and the fittest will survive.
The court only needs to give these companies enough confidence to make them realize that if they survive this crisis, they can usher in new hope instead of giving up in the economic crisis.
If the imperial court can do these things well without spending too much money, it can ensure the integrity of the empire's industry."
After Emperor Su He heard Prince Su Shu's idea, he said happily: "Okay, Shu'er's idea is good."
He was very satisfied with the performance of Prince Su Shu. This was a judgment made by a man who knew the industry very well and foresaw the future development of the industry.
Prince Su Shu has shown this performance, and his ability is enough to control the empire, and there will be no counter-industrialization of the empire.
After Prince Su Shu finished speaking, he was praised by Emperor Su He.
This allowed the officials present to understand what Emperor Su He was thinking.
Zhang Kuoling, the president of Imperial Bank, who had been silent all this time, finally stepped forward.
He was a lowly and powerful official responsible for the issuance of currency by the Imperial Bank.
He also has the authority to manage commercial banks.
The bonds issued by the Empire are also issued by the Imperial Bank and handed over to commercial banks for sale.
The Imperial Bank is the real moneybag of the Empire.
This chapter is not over yet, please click on the next page to continue reading! The Imperial Bank is responsible for government accounts and the payment of official salaries.
It is a large commercial bank with certain management functions.
But the president of the Imperial Bank is only a fourth-rank official.
In the imperial meeting, most of the people who can speak are first- and second-rank officials.
As a fourth-grade official, Zhang Kuoling was extremely nervous when he stood up to speak.
But he couldn't help but stand up. After listening for so long, no official mentioned the bank.
Zhang Kuoling bowed and saluted, and said slightly nervously: "Your Majesty, I just heard that none of you, your lords, paid attention to the problems in the banking industry.
Zhang San had no money to buy products, so he borrowed a sum of money from the bank to buy Li Si's products.
Li Si used the money to purchase materials from supplier Wang Wu.
Wang Wu used the money to pay wages to the workers.
Zhang San, Li Si, Wang and Wu didn't pay a penny, but they all made money.
This is the role of banks in industry and commerce.
I just gave an example. In a normal industrial chain, one hundred taels of silver coins can generate a credit of 10,000 taels of silver coins through the amplification effect of the bank.
The rapid development of industry and commerce in the empire was inseparable from the assistance of the banking industry.
However, with the crisis in industry and commerce, it will inevitably lead to a depression in the banking industry.
The majority of the 1.3 billion triangular debt is borne by banks.
Once a bank run crisis occurs due to the impact of industry and commerce, the empire will be in big trouble.
The banking industry has the effect of amplifying principal, but most of the silver coins they take out are silver coins stored by depositors.
As banks went bankrupt, a large number of depositors lost all their value.
People who have nothing will inevitably cause great turmoil."
President Zhang Kuoling finished talking about the situation.
The smile on Emperor Su He's face disappeared immediately, Prince Su Shu's face became serious, and many officials' eyes widened.
They just discussed the consequences of the economic crisis, and the various ideas they came up with were to try to appease the workers at the bottom.
Large-scale bank bankruptcies involve an even larger number of people.
Some officials have even more worried looks on their faces. They don't know how to run a business and keep all their money in banks.
Emperor Su He immediately realized the importance of this matter.
He did not let officials discuss this issue. Now he must cut the knot quickly, even if he loses some property, to avoid worse consequences.
When it comes to the banking industry, losses can easily reach hundreds of millions of silver coins.
No official except Emperor Su He dared to make this decision, and none of them could bear this responsibility.
Emperor Su He directly ordered: "The Royal Bank must collect a part of the reserve fund based on the deposit size of major commercial banks.
This money is used to compensate depositors for their losses.
Compared with all savers, this amount of money is definitely a drop in the bucket.
This money only needs to compensate depositors whose amount is less than five hundred taels of silver coins, and they will be compensated in full.
Depositors who have saved more than 500 taels have strong risk resistance.
The imperial court also has relevant laws to regulate the responsibilities and obligations between banks and depositors, allowing them to recover losses through normal channels.
A commoner with only a few taels of silver coins or more than a dozen taels of silver coins at home.
They are the people with extremely poor risk resistance, and the imperial court provides special protection to these people.
My expectation is correct, depositors with less than 500 taels of silver coins should account for more than 90% of bank depositors, but the total amount of funds they possess is less than 10%."
President Zhang Kuoling said excitedly: "Your Majesty is wise, and the situation judged by Your Majesty is basically consistent with the facts.
The method proposed by His Majesty can effectively ensure the property safety of the people at the bottom."
Zhang Kuoling immediately felt as if he was enlightened.
His Majesty's method can solve big problems with only a small amount of money.
People whose entire net worth is only a few dozen taels of silver coins will inevitably feel desperate and prone to major problems if they lose all their money.
But merchants with a net worth of hundreds of thousands, if they lose tens of thousands of taels of silver coins, they will just accept their fate and lament their bad luck.
Prime Minister Lin Wenjing stood up and said: "Your Majesty, this method can minimize the harm of bank bankruptcy."
Emperor Su He ordered: "The prince is responsible and all cabinet officials will cooperate.
Based on the discussions at this meeting, relevant policies will be introduced to ensure that even if an economic crisis occurs, the core interests of the empire will not be damaged."
Prince Su Shu immediately accepted the order and said: "My son, I will definitely handle this matter after receiving the order."
Prime Minister Lin Wenjing then saluted and said: "I will lead the cabinet and cooperate with the prince's actions."
…
April 5, 4359 (1662 AD).
Chairman Li Gong summoned several business friends, and they were waiting in a restaurant for the arrival of the latest newspaper.
They are all well-informed people, and they have heard about the new policies that the imperial court will introduce.
In some yamen, all kinds of news are spread to the outside world, and it is not known whether the matter is true or false. In some yamen, officials remain silent and refuse to tell anyone no matter how much they ask.
The youngest businessman present, Li Dagou, chairman of the board of directors of Longchang Automobile, toasted to all the seniors.
He said with some worry: "In order to cope with the crisis, our automobile factory prepared to go to the Industrial and Commercial Bank of China for a loan a few days ago.
The previous loan was very smooth, but this time the loan is very troublesome.
The bank's review is more stringent, not only increasing the properties guaranteed, but also increasing the number of guarantors.
If my father-in-law hadn't been very well-connected, I wouldn't have been able to get the loan this time."
Li Fengcheng, director of Fengcheng Textile Factory, said with envy: "Your automobile factory can still provide loans.
I can't bring out even one or two silver coins from my textile factory now.
I came here just to ask for advice on how to go public."
Chairman Li Gong advised: "The current situation is very bad. If you can survive it, try not to go public.
For a similar factory like yours, when the market is favorable, one share can be sold for ten taels of silver coins.
Now one share can only sell for more than 500 cents.
With such a huge gap, people with a bad mentality can easily collapse."
After Li Fengcheng heard this, he immediately shook his head vigorously.
"If the gap is so big, then I can still hold on. It's a huge loss to go public now.
This chapter is not finished yet, please click on the next page to continue reading the exciting content! The competition in the textile industry is too great. I hope that an economic crisis will occur and all the textile factories that disrupt the situation will close down.
My fabrics are better than those from other factories, but they just can’t be sold at a high price.”
Chairman Li Gong didn't answer, he said with emotion: "For this period of time, colleagues in the business community have felt that bank loans are extremely difficult.
In particular, government-run banks in which the imperial court owns shares have extremely strict loan review procedures.
Some government-owned companies wanted loans but were denied by banks.
Private banks such as Jinshang Bank, Songjiang Bank, and Minxing Bank.
Their requirements for granting loans are more stringent, and there are many more requirements in private.
They all have small circles, and people who are not part of the circle can easily be eaten up and wiped out.
Nanyang Commercial Bank also invited me to join, but I couldn't bear to see their group of people doing some bad things.
I would rather open my own bank than completely ruin my reputation."
When the loan was discussed during the dinner, all these businessmen sighed.
Xi Wanke, chairman of the board of directors of Fulin Grain and Oil Company, said with emotion: "Nowadays businessmen have become more sophisticated. I had just started my business at that time, so I could only use the money saved by my family.
Nowadays, how many people have lost all their money to set up factories, all using bank money.
Everyone uses bank money, but banks don’t have that much money.
Recently, many people in Beijing are discussing the economic crisis. They are afraid that the industries they have worked hard for will disappear.
When I asked about it, I found out that all these people owed a lot of money to the bank.
In the past, when famine came, only those who had food in their homes did not panic.
Now, when the economic crisis comes, only those with silver coins in their hands will not panic."
President Li Gong recognized Xi Wanke’s words.
He heard the cries of newsboys downstairs and said excitedly: "I can finally see the policies issued by the imperial court."