"Domestic silver production and reserves are seriously insufficient. Under such circumstances, our trade with Westerners will definitely suffer."
Zuo Menggeng elaborated on a cruel fact.
Playing with money, today's Xia Kingdom is definitely no match for European countries.
People can dig silver mines from all over the world, and then take them to Xia Kingdom to exchange them for rich products, and then transport them to various parts of the world to turn them into richer profits.
To put it bluntly, in this cycle, Xia Guo has completely become a dirty job worker.
The most straightforward solution is for Xia to also find silver mines with rich reserves, and then hedge with European countries to balance the silver price.
But obviously, this is not realistic and it all depends on luck.
For the time being, it seems that Xia Guo's luck is not very good.
Many other mineral deposits have been found, but the silver mine has never been discovered.
But under this trend, the damage suffered by the Xia Kingdom must be compensated, otherwise the situation of the Xia Kingdom will not be much better than that of the Ming Dynasty.
Zuo Mengeng would not allow anyone to ride on Xia Guo's head and rob Xia Guo's fruits easily.
Since money is not enough...
Then play with gold.
The gold mines discovered so far in Xia Kingdom are absolutely amazing.
Whether it is the local gold mines in Shandong or the gold mines on Sakhalin Island and Arya Peninsula, as long as they operate normally, they will provide Xia with extremely rich wealth.
The value of gold is obviously higher than that of silver.
The most important thing is that when it comes to the international market, the price of gold becomes more unified.
Even European countries have discovered many gold mines around the world, but the value of gold has always remained high.
Skipping silver and directly incorporating gold into the monetary system can cover up Xia's shortcomings and safeguard its own interests in one fell swoop.
Zuo Mengeng dared to do this because he had another reason.
That is... China is the world's largest exporter of commodities.
People from all over the world come here to buy things, and the things here are popular all over the world.
In this case, you must take the pricing power into your own hands.
In other words, Xia Guo has the final say on how to price gold.
Of course Xia will not harm its own interests, so it can occupy a strong position in the international currency market.
Zuo Menggeng is not afraid of opposition from European countries.
Xia Jun's powerful force is the guarantee.
As soon as he expressed his thoughts, everyone present couldn't help but cheered after they figured it out.
"Use gold as a deposit and issue banknotes. In this way, the value of the banknotes can be guaranteed, and we don't have to worry about a repeat of the Ming Dynasty. In this way, if there is no shortage of silver, it will not have any impact on us."
Chen Zhi shook his head and marveled. He really didn't know how Zuo Mengeng thought of it.
Qu Yin was a little worried.
"If we issue paper money, what should we do if the people don't recognize it? What should we do if the Westerners don't recognize it?"
In Chinese history, paper money is not a rare thing. Starting from the Northern Song Dynasty, it was used in the Southern Song Dynasty, Yuan and Ming Dynasties.
Without exception, they all failed.
To put it bluntly, today’s public opinion on banknotes is that once bitten by a snake, they are afraid of being bitten by a rope in ten years.
Zuo Mengeng had no worries.
"There are only two points to address the public's concerns. First, the quality of the banknotes themselves must be ensured. That is, strict and scientific processes must be formed in terms of materials, printing, etc., as well as the subsequent exchange of broken banknotes."
Everyone will understand it as soon as they hear it.
The paper money that appeared in the past cannot be said to be bad, it can only be said that it is not good enough.
Due to technology limitations, the cost of printing banknotes in the past was very high, which resulted in the high cost of banknotes themselves. Eventually, this cost was passed on to ordinary people.
If we want to solve this problem, we must work hard technically.
Xia Guo attaches great importance to technology and invests heavily in it, and the results are very gratifying.
The progress of the printing industry is seen by everyone.
Monthly newspapers have begun to appear in Shandong, Songjiang Prefecture and other places.
It is predicted that daily newspapers will also become a reality in the near future.
All this stems from technological progress.
On the basis of manual lead movable type printing presses, water-driven models have now appeared.
Fei Ruyi and others have even begun to cooperate with Qin Luo and Li Meizhi to study steam engine-driven printing presses.
Once realized, printing becomes an everyday thing and will become a reality.
At the same time, the research on ink, paper, dark texture and other processes was also at the first level at the time.
The paper that the Ministry of Intelligence currently uses for delivery comes from Songjiangfu Printing Factory. People who don't understand the principles will not be able to decipher it even if they hold the paper in their hands.
Now the printing factory has followed Zuo Mengeng's instructions and started researching waterproof paper.
Once this can be successful, it will be a big step forward in the field of food packaging in the future.
It was precisely with the accumulation of these technologies and the discovery of a large number of gold mines that Zuo Menggeng dared to mention the manufacture of banknotes again.
However, he is also very clear-headed and does not think that once the new banknotes are produced, everything will be fine.
Xia State is still relatively weak in one area.
That's the bank.
Having banknotes without banks will inevitably be detrimental to the circulation and supervision of banknotes, and will not promote further prosperity of the market.
But to be honest, Zuo Mengeng didn't know what to do with the bank.
What he knew about banks were fragments of later generations and not systematic.
This kind of industry is related to the national economy and people's livelihood and even the rise and fall of the country. How can we not be cautious?
Fortunately, he doesn't understand, but he has a way.
"Discuss with the Dutch and ask them to send some banking professionals to help. Remember, we must not only learn from their advanced ideas, but also prevent them from causing harm. Banks are very important and there must be no omissions."
It is generally believed that the earliest bank in the world appeared in Venice, Italy.
After that, banks began to bloom all over the European continent.
Following Italy, the Netherlands had an extremely prosperous banking industry because of its prosperous commerce during this period.
If Xia Guo wants to build its own bank, Holland is the best teacher.
However, Zuo Menggeng still has a very clear understanding of the virtues of the Dutch financial industry.
The famous tulip incident is now sweeping the Dutch financial industry.
It was this financial bubble that led to the decline of the Netherlands.
It can be said that the reason why the Netherlands failed in the Anglo-Dutch War shortly afterwards had something to do with this.
To establish a banking system, we need help from the Netherlands. But we must be wary of the pitfalls to avoid making the same mistakes again.
Zuo Mengeng suddenly thought that in the Netherlands today, countless people have gone bankrupt due to the tulip incident, and many of them must be experts in the financial industry.
Perhaps we can provide these people with job opportunities and bring them to the Xia Kingdom.
In that case, the establishment of the banking industry and the improvement of the financial system will definitely achieve twice the result with half the effort.
What is the most precious thing in this world?
Of course it's talent.
When he thought of this, Zuo Mengeng could no longer sit still.
He immediately wrote a letter to Anthony Van Diemen, expressing his desire to hire financial talents. He also promised him that he would receive a generous commission for each senior talent he introduced.
People die for money, and birds die for food.
I believe Anthony Van Diemen will be happy to play for him. This chapter has been completed!