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Chapter 217: Absorbing Deposits (Part 1)

The Beiyang Maritime Trade Alliance held a shareholders' meeting rather unexpectedly. Even Xu Wenbi, the Duke of Dingguo who had not been seen for a long time, attended the meeting while dragging his illness. Several princes and uncles who were recuperating in the suburbs of Beijing also moved to the newly built Japanese capital.

Xinlou, no one was absent from the meeting.

The theme of the meeting was not announced at the beginning. At this meeting, Gao Jingqing first reported on the Maritime Trade Alliance's preparations to launch an attack on the Luzon Islands occupied by the Spanish, and then discussed the battle with the attendees.

Strategy, post-war arrangements and other matters.

In the view of the nobles, the biggest problem with the attack on the Luzon Islands is not that the Spaniards are strong or not - anyway, Alliance Leader Gao said that there are very few Spaniards there, with no more than 2,000 soldiers and no more than 20 ships.

This small amount of manpower, even if they are all fierce generals one against ten, is still in vain. The benefits of fighting at home are obvious, and there is no way that the Sea Trade Alliance will lose this battle.

Needless to say, after listening to Liu Xin's analysis that day, Gao Pragmatic had carefully reviewed the Nanyang Fleet's investigation report on Manila and other places, and fully affirmed the success rate of the flooding of Manila strategy.

This tactic is very problematic from a humanitarian standpoint. From a very pragmatic perspective, Gao actually doesn't like this tactic that has the effect of a "weapon of mass destruction".

But what is not surprising at all is that the nobles were extremely satisfied with this tactic, and they all praised "Miss Liu is worthy of being a general and a tiger girl", "a heroine, not a man", etc. No one mentioned anything about harming innocent people.

God says so.

Also, at that time, the barbarians rebelled, and the Ming Dynasty killed people to the point of annihilation. It was too much to expect these people to show humanitarianism. Gao Pragmatic even doubted whether he thought too much.

But having said that, in addition to humanitarianism, there is a more practical reason why Gao Pragmatic is entangled in this, which is that he does not want to turn Manila into a dead city all at once.

Dead cities cannot create wealth. Even if they can be rebuilt, immigration is still troublesome, time-consuming and labor-intensive. What he needs is for Manila to serve as a transfer station for American silver all the time, adding to his silver standard paper currency plan.

There are only three sources of silver. One is government treasury silver. In the early days of the Ming Dynasty, silver was banned from circulating among the people. In addition, the banknote collection department could only redeem gold and silver in one direction, which caused the court to hoard a certain amount of silver in the early days.

Amount of silver.

Second, domestic silver mines produce silver. Since the founding of Ming Dynasty, silver mines have been opened in China. In the middle and late stages, due to economic development, increasing demand for silver and improvements in smelting technology, domestic silver production has increased. However, as we all know, China is geographically located

There is no large-scale silver vein passing through the location, so domestic silver production is extremely limited.

Up to now, the silver that has entered circulation through the above two channels accounts for a small proportion of the total silver on the market. Most of the remaining silver comes from abroad and flows into the country through the Ming Dynasty's foreign trade.

Mr. Liang Fangzhong, a later scholar, once pointed out: "China has always been a country that does not produce much silver. Since trade with European countries in modern times, the supply of silver has mostly relied on foreign sources; domestic production is not important."

The data on the silver mines mined by the Ming Dynasty itself can be tested, and there is a special title called "Silver Class". As the Minister of the Ministry of Household Affairs, Gao Pragmatic can easily find relevant case files.

The Chengzu Dynasty and the Xuanzong Dynasty were the two periods when the Ming Dynasty's silver tax revenue was the highest. After the Yingzong Dynasty, the silver tax income began to decrease significantly; from the Xiaozong Dynasty to the Wu Zong Dynasty, it showed a straight downward trend.

To be more specific, the average annual income from silver courses in the Ming Dynasty was about 100,000 taels. In the later period, it was actually less than 100,000 taels. When the national silver courses were at their peak, they only reached 100,000 or 120,000 taels per year.

In such a big country, what can be done with the production of one hundred thousand taels of silver? This shows that the amount of silver mined in domestic silver mines is seriously insufficient and cannot satisfy the country and society's growing and huge demand for silver.

However, if you look at the silver income of Taicang (basically equal to the national treasury), there is one thing worth mentioning. That is, the direct storage of silver into the treasury began in the Longqing Dynasty, and suddenly there was a sharp increase. To be more precise, the surge began in the fifth year of Longqing.

Zeng, that is, the second year after Gao Gong returned to the court to govern.

[Note: This is also a historical fact. I wonder if those readers who read the beginning of the book and said that I was too high-profile are still reading it. Will they be speechless after reading this? 】

In the fourth year of Longqing, 2.3 million taels of silver were put into the warehouse in Taicang. This data has hardly changed since the early Jiajing period. By the fifth year of Longqing, the amount of silver in Taicang directly reached 3.1 million taels. Considering that finance is calculated on an annual basis,

It is basically certain that starting from the year when Gao Gong returned to power, the country's income experienced a surge.

How did this amount of money come up? Two main sources: First, Gao Gong sent Hai Rui to Jiangnan (Governor Yingtian) to promote the whipping method. Through the deterrence of the Songjiang land withdrawal case, the whipping method was implemented

, therefore the silver tax paid by the Jiangnan region increased significantly;

The second is simple. That year, Gao Gong continued to implement the "Longqing Switch" that had been almost suspended because he was ousted by Xu Jie, and Yuegang's tariff revenue increased significantly. In other words, American silver began to flow into the Ming Dynasty in large quantities.

.

Looking back at the world history of the same period, we can more clearly see the source of China's large amount of overseas silver at that time.

Due to the development of trade economy, Europe widely used gold and silver as transaction currencies in the late Middle Ages (after the 10th century). By the 15th century, Europe fell into a "silver shortage" due to insufficient money supply. So Europeans began to

The search for gold and silver around the world.

Columbus arrived in the Americas in 1492 (the fifth year of Hongzhi), and arrived in 1498 (the eleventh year of Hongzhi).

Gama opened a new route around the Cape of Good Hope to reach India. From 1519 to 1522 (from the 14th year of Zhengde to the first year of Jiajing), Magellan completed the first circumnavigation of the world, opening the door to the Americas for navigators in the Western world.

.

In 1545 (the twenty-fourth year of the Jiajing reign) and 1548 (the twenty-seventh year of the Jiajing reign), Spanish colonists successively discovered extremely large silver mines in Potosi (now Bolivia) and Zacatecas, Mexico. A large number of low-cost silver mines

American gold and silver began flowing into Spain in the 16th century.

Afterwards, this gold and silver wealth was injected into other major European countries through multiple channels such as international trade, financial operations, smuggling, piracy, and war reparations. Later scholars estimated that 1/3 to 1/2 of the total gold and silver were eventually used.

flowed into China.

At exactly this time, due to Gao Gong's persistence, the Ming Dynasty's "Longqing Switch" relied on its advantage in foreign trade, and huge amounts of overseas silver poured into China, satisfying the Ming Dynasty's ever-expanding demand for silver currency.

In 1571 (the fifth year of Longqing), Spanish colonists established the colonial capital in Manila, Philippines. At that time, the socio-economic development level of the Philippine Islands was low, and local products could not meet the colonial authorities' expenses. However, the handicrafts produced in the Ming Dynasty were cheap and high-quality, so the Philippine colonial authorities could only

Relying on supplies from the nearby Ming Dynasty, they began to engage in re-export trade with China.

In order to attract Chinese people to settle and do business in the Philippines, the colonial authorities initially adopted some protection and preferential treatment measures for Chinese business travelers and goods. Attracted by the huge profits from Manila trade, merchants from the Ming Dynasty (in addition to Jinghua, mainly merchants from Zhangzhou and Quanzhou in Fujian) came one after another, stimulating

The development of Mingfei trade.

According to Jinghua's report, Manila today has become one of the largest trade centers in the Southeast Asian region, rivaling the Portuguese-occupied Malacca.

The Ming Dynasty goods imported into Manila mainly include raw silk, silk fabrics, velvet, damask, satin, cotton cloth, linen fabrics, jewelry, handicrafts, iron and steel tin-lead products, saltpeter, gunpowder, food, poultry, livestock, etc., especially textiles. Spanish

Every year, 2 to 3 million pesos of silver from the Americas flows to Manila.

This data is in line with Gao's pragmatic memory. He remembered that later scholar Quan Hansheng once said in "Macao's Overseas Trade after the Mid-Ming Dynasty": "From the opening of Manila in the fifth year of Longqing to the late Ming Dynasty in the 70s and 80s, through the Philippines

The amount of American silver flowing into China may be more than 60 million pesos, which is equivalent to more than 40 million kuping taels."

In fact, even with the addition of Jinghua, the current trade volume between the two parties has not reached a historical high. Because according to Gao Pragmatic's memory, in 1631 alone, 14 million taels of silver were imported from the Philippines to Macau.

It is approximately equivalent to 2.1 times the total output of China's official silver mines during the 30-year heyday of the Ming Dynasty from the first year of Yongle to the ninth year of Xuande (1403-1434), and equivalent to 3.8 times the average annual revenue of the Ming Dynasty's treasury during the Wanli period.

Why was Zheng Zhilong so rich in history that he could rival the country? Why is Jinghua now so rich that it could rival the country?

The income from maritime trade alone in Spain’s Philippine transit station can reach almost four times that of the entire Ming Dynasty! Can this not make the country rich? Looking back, this silver income is also important for stabilizing the silver standard monetary policy of the Ming Dynasty.

How important is it?

It is as if there is a hand in the dark that connects the silver discovered by the Spanish in the Americas with the currency problems of the Ming Dynasty at the same time: the Ming Dynasty can produce the best commodities in the world, but what drives the Ming Dynasty to continuously expand commodity production is

It was silver, a precious metal that was in short supply during the Ming Dynasty. At the same time, although the Spaniards had nothing, they had silver exported through Mexico.

From the Song Dynasty to the Yuan and Ming Dynasties, China's commodity economy developed greatly, and its market prosperity ranked first in the world. However, before the 16th century, it always experienced periodic currency shortages. Whenever commerce and markets developed, the money supply was insufficient.

, the main reason is that there is a shortage of precious metals in the country and a monetary system based on precious metals has not been established.

The monetization of silver greatly promoted the development of commodity production and exchange relations in the Ming Dynasty. It also restricted the power of those in power to issue excessive currency, and cut off the Ming court's path to hyperinflation. The country could not simply print money as easily as it did when it printed banknotes indiscriminately.

A large amount of social wealth was gathered under his control for nothing, which also greatly promoted the growth of production and trade.

However, although such a fiscal system is stable, it is not flexible and is a very rigid system.

For example: if the court could use flexible monetary policy to a certain extent in the last years of Chongzhen, the Ming Dynasty would not have died in such a way - when the gentry were all extremely wealthy and the people in Jiangnan were generally well-off

, this court actually died of poverty.

Banknotes require reserves, but when the economy needs to be regulated, banknotes can be issued in excess according to specific circumstances. The biggest significance of reserves is actually to build confidence in those who use banknotes and build credibility for the banknotes.

When credibility is absolutely guaranteed, the amount of banknotes can actually be adjusted according to the specific economic conditions at that time. When there is a danger of deflation in the country, he can issue more banknotes to alleviate the money shortage; when inflation begins to appear, he can

After the banknotes are withdrawn, less money will be issued and less replenishment will be done to stabilize prices.

And if the court is in urgent need of money, he can also directly issue additional banknotes to gain wealth and enable the court to survive the crisis - this will of course lead to inflation, but sometimes a certain degree of inflation is better than losing the war.

A situation like this is better, as long as the extent of this inflation remains under control.

This is roughly what the so-called fiscal flexibility means.

However, the cash in Gao Pragmatic's hands alone is not enough to establish a "Ming Federal Reserve". Even if it was enough, he would not dare to do so - if your capital alone controls the economic operation of the country, then what is the point?

Come on?

Therefore, he must recruit more forces, among which the nobles and the emperor are the two key forces, because these two groups of forces are the most stable from a legal perspective-they are hereditary.

The investment of civil servants is not so stable, because civil servants are obtained through the imperial examination. If a family fails to pass the Jinshi examination for two or three generations in a row, the family is likely to be in decline. Therefore, the investment of civil servants can only be regarded as "

The investment of the "feudal landlord class" or the "emerging bourgeoisie" has little to do with their official status.

In order to win over the most critical and first group that must be won over, the Beijing Masters, Gao Jingshi immediately came up with the concept of "Ming Fed" after talking about matters related to the attack on Manila.

According to him, the "Ming Fed" will be built on the basis of Jinghua Bank. Within the "Federal Reserve", silver is no longer used as a direct transaction currency. All merchants who join the "Federal Reserve" need to pay varying amounts of silver to the "Federal Reserve" as a currency.

Margin, which is used to obtain credibility funds.

For example, if the Duke of Chengguo paid a deposit of 100,000 taels of silver, then Zhu Yingzhen could directly own banknotes worth 200,000 taels of credit. These banknotes could be used to purchase all the goods he needs from within the "Federal Reserve" according to currency value. The risk of the excess is

, borne by the "Federal Reserve" - ​​considering the proportion of capital contribution, it can also be said that it is mainly borne by Jinghua.

However, while Jinghua bears such risks, it also has the right to dispose of the deposit of the Chengguo Government, and the power to punish possible violations of the Chengguo Government's trade process in accordance with the rules and regulations agreed in advance.

When everyone heard this, they first understood the benefits: one tael of silver was spent as two taels of silver, which is equivalent to doubling the capital! With such huge profits from sea trade, who wouldn’t drool after hearing the effect of doubling the capital?

But everyone did not agree immediately, because they needed to think about the benefits of Jinghua's doing so. None of them opened a charity, even if Gao was pragmatic and had the reputation of "everyone is a Buddha", the nobles would not forget it.

He is the world's number one golden touch.

How does Jinghua make money? Well, when everyone pays a deposit, these deposits are actually Jinghua’s money. Although everyone will use the credibility brought by these deposits for internal transactions, since they are not directly taking money, Jinghua can operate easily.

And Jinghua itself may use the real money to do other things...

No one can think of what to do specifically now, but the principles should be very similar. In this way, what still needs to be considered is the supervision and punishment system, but since Gao Pragmatic said this needs to be discussed in advance and approved by both parties, it should

There won't be any big problem.

However, they obviously underestimated Gao Jingshi's handiwork. If it was just internal transactions, it would not make much sense for Gao Jingshi to engage in this "Ming Fed", because everyone is already using the banknotes of Jinghua Bank.

Therefore, after Gao Jingshi got their principled agreement, he immediately came up with a further plan: he would persuade the royal family to take shares and join the "Ming Fed". According to him, he would let the emperor directly take over the entire

Internal funds are invested in the "Ming Fed" and all become margins!

What makes the nobles even more stunned is that Gao Pragmatic also said that allowing internal funds to join the "Ming Fed" is only the second step of the plan. He has a third step, a fourth step, and even more...

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