bayedsolid Chapter 292 Paper Money
Chapter 292 Paper Money
With Shen Lian establishing a new empire, the military and political affairs of various provinces were taken over, and the deposits of the Industrial and Commercial Bank of China surged. The increase far exceeded everyone's expectations.
In just one or two months, the silver deposits skyrocketed from over 300 million taels to 600 million taels. And every day, a steady stream of gold and silver continued to be deposited into the bank.
The major shareholders were initially pleasantly surprised, but later became alarmed, since every tael of silver required interest payments.
Shen Lian hadn't expected there to be so much gold and silver in the private sector. He had specifically checked it when he returned a few days ago and learned that the total amount of gold and silver in the country at the end of the Qing Dynasty was probably around two billion taels.
This is not surprising!
This was thanks to his victory over the Eight-Nation Alliance and his later annexation of Japan. Without these two huge indemnities, the country would have had far more gold and silver.
In recent years, Shandong's foreign trade has been quite successful, and it has earned a lot of money.
In fact, for thousands of years, we have been reaping the benefits of the world through silk and porcelain, and we have no shortage of gold and silver in our country. It's just that most of it has been buried in cellars.
Now that Shen Lian has loosened the shackles of commerce, these gold and silver naturally emerged.
If it weren't for the fact that in recent decades, due to the incompetence of the Qing Dynasty, Britain and other countries had amassed considerable wealth through opium, there would likely have been even more.
However, the emergence of so much gold and silver is already a major event. If it's not handled properly, Shen Lian is afraid it could trigger inflation.
However, as a modern person, Shen Lian naturally had many ways to spend money. With such a large sum of money, he could do many more things.
The three drivers of economic growth are "investment, consumption, and exports"! Even a modern junior high school student knows that.
The investment is already underway; the bank can use this money to invest in infrastructure. My planned railway trunk line project is exactly short of funds! This money has come at the perfect time.
A few hundred million taels invested will stimulate at least several billion yuan of the domestic economy. The railway construction workers will earn money, the people whose land was reclaimed will also have money, and orders will come in for various manufacturing enterprises. Consumption will naturally flourish!
As for exports, there's no rush. Sales of our own cigarettes, lighters, and other products have already increased significantly.
Traditional silk and porcelain production also saw steady growth. Under Shen Lian's direction, the imperial court introduced many preferential policies. Several large-scale textile enterprises had already begun operations rapidly.
In those days, cloth was also a highly profitable export commodity. Not only could it generate foreign exchange, but it could also allow ordinary people to wear better and cheaper clothes.
The imperial court was also encouraging local people to raise pigs, which would not only increase farmers' income but also expand market supply. Pig bristles were an indispensable strategic resource for armies of all countries. They weren't valuable now, but they would be highly sought-after when World War I broke out.
In addition, the imperial court encouraged people in the central and southwestern provinces to plant paulownia trees and extract tung oil. To reassure the people, the court raised the minimum purchase price for tung oil.
The imperial court was short of funds, so Shen Lian asked the royal family to fund the construction of large warehouses in various provinces. These warehouses would continuously purchase and stockpile tung oil, allowing him to make a fortune off Western countries.
With several pro-people policies implemented, coupled with reductions in various exorbitant taxes and levies, I believe that within a few years, the lives of people across the country will improve significantly.
"Everyone, that's settled about the silver deposit! When the major railway lines across the country start construction, I'm afraid this little bit of silver won't be enough. What are you worried about!" Shen Lian waved his hand.
"Now let's talk about issuing paper money!"
"Whether from the perspective of cost or portability, paper money has a natural advantage. It has been issued by many dynasties in Chinese history, such as the Jiaozi of the Song Dynasty and the Baochao of the Ming Dynasty!"
"Why couldn't they all persevere in the end? It all comes down to two words: 'trust'!" Shen Lian held up two fingers.
"Especially during the Ming Dynasty, paper money was issued indiscriminately. And people weren't even allowed to use it to pay taxes! It was utterly ridiculous!"
"To put it bluntly, the Zhu family were nothing but robbers. This was blatant plundering of the people's wealth. Their demise was no injustice!"
"Our banknotes are not only backed by gold and silver, but they are also used alongside gold and silver and can be freely exchanged for them. This ensures the stability of the banknotes' value."
"Paper money, like gold and silver, can be used to buy anything and to pay taxes. This policy will be implemented nationwide, and no one may refuse to accept paper money..."
Shen Lian explained at length, and the shareholders finally understood. These people were all shrewd; they could see the benefits of issuing paper money at a glance. With the emperor as their backer and money to be made, who wouldn't support it?
The matter was resolved!
However, the minting of gold and silver coins cannot stop during this period. As the domestic economy becomes more and more active, the demand for coins will naturally increase.
The profit from minting gold and silver coins alone is more than 20%, which can completely offset the interest on silver deposits, and there is still profit to be made.
Shen Lian also planned to take this opportunity to mint a batch of exquisite commemorative coins for the founding of the nation, to reward his ministers. He also intended to collect some for himself, as these things seemed to be very valuable in later generations. Leaving them to his children and grandchildren would also be a form of wealth.
As for the paper used to print banknotes, Shen Lian wasn't worried about the technology at all. Modern printing techniques are quite advanced; he could simply get some ink from the modern printing presses. He guaranteed no one could counterfeit them.
Shen Lian was determined to keep the right to issue this banknote firmly in his own hands. He didn't want to hand it over to those people in the imperial court, who might turn a good thing into a bad one!
After settling the matter of the banknotes, Shen Lian devoted his energy to planning the railway lines.
"To get rich, build roads first." This slogan has been disseminated by Shen Lian. Local governments are working hard to repair the roads within their jurisdictions.
The imperial court has now directly abolished the corvée labor for the people, who are deeply grateful. Although the local government hasn't contributed much in terms of wages for road construction—only enough for two meals a day—the people are still very willing to lend a hand.
After all, everyone benefits from these roads being built.
The railway couldn't rely on local officials; that was where Shen Lian had to handle it.
After more than twenty days of travel, Zhang Tieniu and his party finally arrived in Guilin.
Drums and music resounded at the dock as Lin Shaonian, the governor of Guangxi, personally led a group of officials from the province to welcome them.
"Brother Zhai, you must be tired from your journey!" Lin Shaonian stepped forward and cupped his hands in a very polite manner. Although the other party was only an inspector, he had just come from the imperial court. Lin Shaonian dared not be careless.
"I am deeply honored that Lord Lin has come to greet me in person!" Zhai Hongming hurriedly stepped forward and bowed. The other party was his superior, and he had to show him basic respect.
"Hehe! It's been more than ten years since I last shared a drink with Brother Zhai. Time really flies! I never thought we'd be working together again!" Lin Shaonian stroked his beard and nodded with a smile.