I watched Er Chuang’s short video, and everything went numb!

[During the reign of Emperor Zhenzong of Song, Zhang Yong, the governor of Yizhou, noticed this problem, and he came up with a way to isolate the credit influence of different banks. ]

[That is to recognize that the Jiaozi issued by 16 large banks is a proxy currency, but these 16 banks must promise to guarantee each other: when one bank has insufficient liquidity, the other banks are obliged to provide borrowing. ]

[Mr. Zhang's operation can be said to be a sharp point, seeing the essence of the matter clearly, and it has a bit of financial supervision. ]

[And it is also a disguised recognition of the rights and interests of the financial industry autonomous groups. ]

[If it develops smoothly, the financial industry prospects of the Northern Song Dynasty may be a smooth road. ]

……

The plane of Emperor Taizong of Tang Dynasty.

Li Shimin pondered in his heart.

He vaguely felt that this method was a bit of a temporary solution.

It is just that the banks dismantled each other, and it could not completely eliminate the problem of excessive Jiaozi.

"The right to issue paper money cannot be controlled by private individuals, otherwise it will be uncontrollable."

Like Zhu Di, Li Shimin discovered an important principle for the issuance of paper money.

……

[But what Mr. Zhang did not notice was that he only paid attention to the relationship between the money houses and the society, and did not pay attention to the internal relationship of these 16 money houses. ]

[Since everyone has the obligation to dismantle each other, wouldn't it become a dark forest where whoever does not over-issue is stupid? ]

[If others over-issue and you do not, it is a disguised way of robbing your money. ]

[Soon, several money houses had problems of excessive over-issuance and operating difficulties. Some of them made investment mistakes and lost the depositors' money. Even borrowing could not fill these holes. ]

……

"What a profiteer!"

Many simple people in all dynasties cursed in their hearts.

They simply attributed the emergence of the problem to the greed of the money houses that secretly over-issued Jiaozi.

However, in the eyes of some other ancients, human nature is like this.

……

[So, Sichuan once again had a currency trust crisis where Jiaozi could not be redeemed. ]

[Some of the reputable money houses were very dissatisfied with this situation. They decided not to recognize the Jiaozi with joint guarantees, but directly reissued the Jiaozi of the original money houses without joint guarantees. The credit of these Jiaozi was better. ]

[And the depositors who could not get the money could only report to the authorities. ]

[These 16 money houses were the Jiaozi issuers personally recognized by your Yizhou governor. The credit of the currency they issued originally included the credit of the Yizhou government. Now they can't redeem the money, and your Yizhou government has to guarantee it. ]

……

The plane of Emperor Chengzu of the Ming Dynasty.

Zhu Di shook his head slightly.

He was not surprised by this chaotic situation.

At this moment, Zhu Zhanji beside him said:

"The official should have added a rule that no more money can be given out at will. Anyone who dares to give more money in private will have his head chopped off!"

"In this case, let's see who dares to issue more!"

Hearing this, Zhu Di laughed in silence. The solution of his good grandson was simple and crude.

But things are obviously not that simple.

...

[At this time, the governor of Yizhou had already been replaced, and the new governor was Kou Jian. ]

[When he saw it, he was immediately overwhelmed. What kind of mess was left by the predecessor? I can't understand these complicated financial relationships. How can I manage them? ]

[And my dignified governor's office is not as reputable as a bank now. How can I carry out other work in the future? ]

[So, in 1020, he ordered the cancellation of the issuance of Jiaozi, and he didn't care which Jiaozi shop had a good reputation or a bad reputation. ]

[Next, the master plates of Jiaozi printed by various banks were confiscated and destroyed, and the old Jiaozi were gradually cleared out of the market by the government. 】

【To be fair, it was really impressive. It took a lot of real money and a lot of ability to calm down this financial chaos. 】

【So, Kou Jian reported this matter to the court as his outstanding achievement, and was soon promoted and left. 】

……

Seeing this, many ancient people from all dynasties were stunned:

"Did Jiaozi fail like this?"

"Did people in Sichuan return to the currency model of iron coins and silk?"

"Isn't this a long-term solution?"

Not only were the ancient people from all dynasties before the emergence of "Jiaozi" confused, but many ancient people from all dynasties after the emergence of "Jiaozi" also had the same doubts.

This is not surprising.

Even the ancients of later dynasties did not know much about the development history of "Jiaozi", a paper currency that was mainly popular in Sichuan.

……

[Next, Xue Tian took over as the governor of Yizhou. ]

[This Lord Xue is a scholar-type official. He learned from the experience of Lord Zhang and Lord Kou, and his attitude towards Jiaozi was more advanced than his predecessors. ]

[He and Zhang Ruogu, who was in charge of Yizhou's financial affairs, conducted a folk survey and found that Sichuan people had long been accustomed to paper money. Now that Jiaozi has been abolished, many underground money houses have issued Jiaozi, which is more difficult to supervise. ]

[And this cannot prevent problems before they happen. ]

……

"Jiaozi still exists?"

Many ancient people in the past dynasties were surprised.

They originally thought that Jiaozi would disappear under the ban of the court.

Unexpectedly, there would still be underground money houses issuing it, and the people of Sichuan dared to use it.

The plane of Emperor Wu of the Han Dynasty.

Liu Che was not surprised at the emergence of this situation.

He just felt that the official named Kou Jian's handling method was not appropriate. The simple and rough ban only solved the superficial problem of excessive issuance of Jiaozi, but did not solve the real problem, which was that the people of Sichuan needed convenient currency.

Unless the Song Dynasty court allowed gold, silver and copper coins to enter Sichuan,Otherwise, the people of Sichuan would definitely think of other ways.

For example, this illegal underground money exchange Jiaozi.

And this underground Jiaozi is circulated in secret, which is extremely difficult for the court to manage.

Once a big problem occurs, it will cause turmoil.

After comprehensive consideration, Liu Che felt that if the Song Dynasty insisted on the ban on gold, silver and copper coins in Sichuan, Jiaozi would have to be restored.

……

[So the two came to the conclusion that Jiaozi must be recognized again. ]

[Then Lord Xue investigated some files of financial fraud cases related to the issuance of Jiaozi by the private sector in the past, and felt that this was a credit issue. ]

[Then why not just print Jiaozi directly by the government? This would solve the problem of excessive issuance once and for all. Compared with money exchanges, the government is definitely more credible. ]

[So Xue Tian petitioned Song Renzong and asked the court to allow him to establish a special institution for issuing paper money in Sichuan: Jiaozi Office. 】

【Official Jiaozi not only has a more standardized format, but also completely abandons the attributes of a deposit certificate. There is no longer a format that allows customers to fill in the amount. All denominations are printed in advance. 】

【From then on, the official paper currency in the true sense was born. This kind of Jiaozi was called "official Jiaozi" by Sichuan people, and the Jiaozi of other money houses was called "private Jiaozi". 】

……

The plane of Taizu of the Great Ming Dynasty.

Zhu Yuanzhang said:

"This person is a talent."

He felt that compared with the previous governor named Kou Jian, the new governor named Xue Tian was undoubtedly more pragmatic and capable.

Zhu Yuanzhang admired this kind of official who dared to think and act, and was down-to-earth. The court needed such officials.

……

【Not only that. 】

[This Lord Xue also learned from the lessons of his predecessors and set three rules for Jiaozi to prevent credit bankruptcy from happening again. 】

[The first is the reserve ratio that we are very familiar with. 】

[He stipulated that the reserve ratio of "official Jiaozi" is 27%. From the current perspective, this reserve ratio is actually quite high. If it is strictly enforced, there should be no problems in this regard. 】

The barrage flew out:

"Awesome, an official in the Northern Song Dynasty could actually think of setting a reserve ratio. It's so unexpected."

"Indeed, this concept is too advanced."

"Reply--He must not know the term reserve ratio. It's probably another excuse."

"Reply--It doesn't matter what the excuse is. What's important is this practice."

"Reply--Indeed, a reserve ratio of 27% is already quite high. Our current average seems to be only 7%."

"Reply--The financial environment in ancient times is different from ours now. A higher reserve ratio is safer."

"Reply--To be honest, if we really follow this reserve ratio, the risk of a run will be very small."

"Reply--Indeed, there are so many reserves that can be used at any time.Basically there will be no trouble. ”

“…”

The Great Ming Taizu plane.

Zhu Yuanzhang looked at the giant screen in the sky, feeling a little impatient.

After seeing the importance of the reserve ratio, he now wanted to know what the reserve ratio was.

But at this moment, in the giant screen in the sky, whether it was the narration subtitles or the many barrages, many aspects of the reserve ratio were discussed, but no one said what the reserve ratio meant.

This made Old Zhu very anxious.

But he could not do anything except keep staring at the giant screen in the sky, hoping that the content of the video later would talk about what the reserve ratio was.

…

[The second is to prohibit the official Jiaozi from leaving Sichuan, so as to avoid the reduction of "official Jiaozi" in the Sichuan market and the domination of the market by "private Jiaozi".]

…

The Great Tang Taizong plane.

Li Zhi asked in confusion:

“Didn’t this person prohibit private printing of Jiaozi? Where do the private Jiaozi come from? "

"If the number of official Jiaozi is insufficient and the people do not have enough paper money to use, the underground money houses will privately print Jiaozi again."

Li Shimin explained casually.

Then he praised Xue Tian again:

"This man is a capable minister and is very thorough in his work. ”

……

[The third is the recycling system.]

[Because the reserve ratio is 27%, and the government's reserve is 360,000 strings, Lord Xue wants to control the official Jiaozi circulating in the market to about 1.25 million strings.]

[So he required the Jiaozi format to be updated every three years. The old version must not be circulated and must be handed over to the government, and then a small update fee must be paid to exchange for the new version, which is called a term.]

[With these three tricks, it can be said to be quite advanced.]

The barrage flew out:

"Fuck, even the seigniorage can be considered. This Lord Xue is really awesome. In ancient times, this was a top financial talent!"

"This set of combined punches is too 6. This is a financial master!"

"Awesome, this financial thinking is really advanced. ”

“Really, if we strictly follow his plan, the paper currency thing may really work.”

“Reply——Hehe, I think, as long as it is a feudal dynasty, this thing will be difficult to succeed.”

“…”

The plane of Taizu of the Ming Dynasty.

Zhu Yuanzhang’s eyes lit up and he thought quickly.

After reading this passage, he seemed to understand the meaning of the reserve ratio.

According to his understanding at the moment, it is a ratio between the actual amount of money and the amount of paper currency issued.

“Boss, what do you think is the appropriate reserve ratio for the Ming Baochao? ”

Zhu Yuanzhang asked Zhu Biao.

He did not ask Zhu Biao whether he understood the meaning of the reserve ratio.

Because he thought that with Zhu Biao's intelligence, he should be able to figure it out.

This is indeed the case.

When Zhu Yuanzhang figured it out, Zhu Biao also figured it out.. (To read the novels of Bao Shuang, go to Feilu Novel Network!)

When he heard Zhu Yuanzhang's question, he replied:

"People in later generations say that it is 7% in later generations. This should be a relatively safe ratio. However, our Ming Dynasty is not as powerful as later generations. To be on the safe side, I think we can double it to 14%."

"If there is a problem, we can adjust it again."

Zhu Yuanzhang nodded.

Zhu Biao's plan is indeed safe.

At this time, Zhu Biao said to Zhu Yuanzhang again:

"Dad, the Ming Dynasty treasure notes must be recycled. We can learn from this person's practice and change the format every three years."

He remembered that in a previous video, people in later generations criticized the Ming Dynasty treasure notes for not recycling them.

"Boss, you are right."

Zhu Yuanzhang replied.

Then, he sighed:

"If this Xue Tian was a minister of our Ming Dynasty, we would definitely use him!"

He just admired Xue Tian's style of doing things. Now, seeing the various praises of Xue Tian by people in later generations in the barrage, he felt that this person was a talent.

If there was such a person who was proficient in paper money knowledge to preside over the affairs of Ming Baochao, he felt that there would be no problem.

But what Zhu Yuanzhang didn't know was that in the ancient feudal dynasties of China, the real obstacle to the development of paper money was not anything else, but the supreme feudal imperial power.

……

[Of course, in the eyes of Lord Xue, he was just solving the problem of excessive issuance of Jiaozi. ]

[The "official Jiaozi" is running well now, and Lord Xue has banned "private Jiaozi", so there should be no more problems with the excessive issuance of Jiaozi, right? 】

[Unfortunately, although Lord Xue is a frontier official, his foresight in preventing court risks is not as good as his skills in preventing financial risks. 】

The barrage flew out:

"The active backstab from the court is the most deadly."

"It seems that the Northern Song Dynasty court is going to start overissuing currency. This is really the end."

"No matter how much defense you have, it is difficult to prevent a thief in your own home."

"..."

The plane of Emperor Taizong of the Tang Dynasty.

Li Shimin's eyes became more and more focused when he looked at the giant screen in the sky.

People in later generations said at the beginning that the Jiaozi of the Northern Song Dynasty failed in the end.

And people in later generations said that Xue Tian's policies were fine.

It is obvious that the Northern Song Dynasty court must have destroyed Xue Tian's policies.

Li Shimin was quite interested in the reasons why the Northern Song Dynasty court destroyed its policies. []

He thought that the Tang Dynasty should "learn from the failure of the Northern Song Dynasty" in the matter of paper money.

……

[During the reign of Emperor Shenzong of Song, the war with the Western Xia (Wang Dezhao) broke out. The Northern Song Dynasty adopted a resource-crushing strategy of fighting and building cities at the same time, which made the Western Xia very uncomfortable. ]

[But this way of playing is really too expensive. ]

[At the same time, the expenses of the Northern Song Dynasty's inefficient and huge redundant official system also soared.. 】

……

The plane of Taizu of the Great Ming Dynasty.

Zhu Yuanzhang shook his head.

The "three redundancies" problem of the Northern Song Dynasty was mentioned many times in history books, and he had read about it many times.

He was very clear about the harm of redundant officials.

Therefore, he issued an edict to let officials retire early and reduce the number of court officials.

……

[So. ]

[The Northern Song Dynasty court did not care about the official recovery of the coinage right in order to prevent the random issuance of currency without an anchor. ]

[The three regulations set by Xue Tian were also ignored. ]

[The Jiaozi Bureau also engaged in the business of issuing false paper money. ]

[In the fifth year of Xining of Emperor Shenzong of Song Dynasty, the central court directly ordered Sichuan to issue one more Jiaozi, but did not recover the Jiaozi of the previous period. 】

【To put it in modern terms, it means diluting margin and increasing liquidity, or to put it more bluntly, it means over-issuing currency and absorbing private wealth. 】

The bullet screen flew out:

"Pandora's box has been opened. There was a first over-issuance, and there will be a second one."

"This is the naked extortion of people's money by monetary means."

"Over-issuing banknotes is an uncontrollable impulse of the rulers, and it has been the same in all dynasties."

"To be honest, the court itself is much more ruthless than the people when it over-issues."

"..."

The plane of Emperor Chengzu of the Ming Dynasty.

Zhu Di was stunned for a moment.

He thought of the chaos of Ming Baochao.

……

【According to historical records, during the reign of Emperor Shenzong of Song Dynasty, one jiaozi on the market in Sichuan was worth about 900 wen. After deducting the expected renewal fee, it depreciated by about 5%. 】

[If the wealth is calculated as 20 years of income, it is roughly equivalent to taking away the GDP of Sichuan people for one year. 】

[It is not too serious. ]

……

See here.

Many ancient people in all dynasties understood it, and more serious things are still to come. .