The thief of the fortress dominates the world

Chapter 496 Zhongzhou Bank
What are the basic functions of a bank?
Issue currency, carry out savings and exchange, and lending business, etc.

And what does the Mint do?
Printing banknotes and casting all kinds of gold, silver, copper and alloy coins.

Mints and banks combined are the foundation of modern finance.

In other words, Jiang Chuan's previous focus was only on how to make money and how to get other people's money into his own hands, but he has always ignored a fundamental problem:

Money can be created.

Things that modern people know, Jiang Chuan has forgotten because of a momentary blind spot in thinking.

And Princess Ruoling's word Qianzhuang reminded him all of a sudden, and he understood his misunderstanding.

Of course, there is still a big difference between ancient money houses and modern banks.

Qianzhuang can be regarded as the embryonic form of modern banks. It originated from the exchange of silver and money, and then gradually developed to handle deposits and remittances.

The names of different areas are different, and there are other titles according to the scale, such as silver bank and money store.

Modern "banks" have many means of making money, such as transfers to other banks, remittances, small account management fees, annual fees, the difference between loan interest and deposit interest, investment and wealth management services, cooperation with real estate developers, and so on.

A very common reason among them is to take other people's money to make money.

Because of the high stability and convenience of banks, many people are willing to give them money.

Something Different Modern "banks" make money by providing other services.

Such a phenomenon rarely existed in ancient banks.

Let me talk about two obvious differences: saving money in ancient banks not only has no interest, but also gives money to the banks.

Whereas in a modern bank deposit, the bank will pay you interest.

Another point is that bank notes issued by banks do not belong to currency, but are equivalent to current bearer checks and other money orders.

The banknotes issued by modern banks are the real currency in circulation.

In the current Ming society, there are various kinds of currencies, and there are many phenomena of private coinage. Precious metals such as gold and silver are still used as currency in circulation, and they are real hard currencies.

Moreover, the exchange rate between gold and silver, silver bills, and copper coins varies from place to place.

According to Jiang Chuan's understanding, the banknotes such as treasure banknotes were issued in the early Ming Dynasty, but because of the basic financial laws that the imperial court did not understand, the banknotes were issued indiscriminately, and the anti-counterfeiting technology was too poor, which led to the occurrence of treasure banknotes in the middle of the Ming Dynasty. Turned into waste paper worthless.

The banknotes issued by modern banks are based on gold reserves, which is what we call the gold standard system.

The reason for choosing gold is mainly because gold has more reserves than platinum and diamonds, and is scarcer than silver, so it is most suitable as a currency reserve.

The banknotes issued by the bank are equivalent to the equivalent of gold in a sense. In principle, as many banknotes can be exchanged for as much equivalent gold.

When banks first issued banknotes, people might come to the bank at any time to exchange banknotes for equivalent gold out of mistrust.

Only by ensuring sufficient gold reserves can banks be able to cope with this kind of exchange at any time.

Over time, the bank's reputation is established, and the value of banknotes is also established.

But once paper money is issued indiscriminately regardless of the amount of gold reserves, the paper money depreciates and a run is triggered, then the paper money will become waste paper, and the country's financial system will almost collapse.

It can be said that the value of paper money is built up bit by bit.

Along with the establishment of the value of banknotes, behind it is the gradual establishment of the bank's reputation and the country's credibility.

Of course, the gold standard system in which banknotes were linked to gold was before the 70s. Later, with the great economic development of various countries, the demand for banknotes increased, and the Bretton Woods system in which the US dollar was linked to gold collapsed, and the gold standard also became history.

The value of paper currency in various countries is now mandatory by the laws of each country, and its circulation is determined by the national tax as collateral.

Of course, in order to discover banknotes, the state machine must be strong, so that they can be forced to issue at the beginning, and Jiangchuan has basically been able to do this at present.

The second point is that after the system is upgraded to the early stage of the era of industrial civilization, banks and mints can be built, which also technically ensures that Jiang Chuan can end and rectify the current chaotic financial and monetary system of the Ming Dynasty.

After the banks and mints were established, they all brought their own employees.

Jiang Chuan didn't need to worry about these, after all, the system had never let him down before.

What Jiang Chuan has to do is to use the power of the state to forcibly issue banknotes at the beginning, to give value to the banknotes, so that the banknotes can truly circulate.

At the same time, do a good job of coping with the emergence of popular crowds in the initial stage of currency issuance. Of course, it is necessary to store a large amount of gold and silver.

Although Jiang Chuan is short of money, he can still find a way to get it done.

Of course, the issuance of banknotes is a matter that needs to be considered in all aspects. Jiang Chuan has been thinking about it for a long time, and he has some general ideas.

But once the idea is opened, the rest of the specific deployment is not a big problem, and there are professionals to do it.

Once the banknotes are discovered, as long as the initial wave of runs is over and the basic credibility of the bank and the court is established, the problem of lack of money will be easily solved.

The more Jiang Chuan thought about it, the more excited he became, he walked back and forth in the room touching his chin, his eyes sparkled, and occasionally he smiled inexplicably when he looked at Princess Ruo Ling who was standing blankly by the side.

Princess Ruoling was looked at by Jiang Chuan like a little white rabbit being targeted by a big bad wolf. Although it was midsummer, she still subconsciously folded her arms, stepped back vigilantly and looked at Jiang Chuan, as if she was afraid that he would do something to her. Unreasonable thought.

Thinking that this big headache would be solved soon, Jiang Chuan was so excited that he could not care about the majesty of the regent. He strode up to Princess Ruo Ling and put his arms around her delicate face. The "pop" on the fair face with a little baby fat is a mouthful.

After the kiss, he laughed and walked out, shouting as he walked: "Yang Chuliu, Guan Bao, prepare the horse for this king."

Jiang Chuan has always been an activist, and now he plans to go out and choose a location for the upcoming central bank.

The location of the central bank is very important. We must choose a prosperous and conspicuous location. First of all, the status of the central bank is advertised in form.

Jiang Chuan has already thought up the name of the central bank, planning to call it "Bank of Central China."

Now Bai Mu has become the commander of the new army, and the vice captain Ji Biao is also busy with the reorganization and training of the guard regiment. Now by Jiang Chuan's side are Guan Bao and Yang Chuliu.

After more than a year of military career, Guan Bao has become a heroic young general, and is now a company commander of the Guards Regiment.

Yang Chuliu also learned martial arts from Bai Mu and others because he could keep up with his nutrition this year, and he also grew a lot taller. Now he looks like a vigorous young general, and he is the deputy company commander of Guan Bao .

The guard company of two people is always by Jiang Chuan's side to obey orders.

As soon as Jiang Chuan called, Guan Bao responded and began to make arrangements.

Jiang Chuan quickly rolled out of the door like the wind, and left Princess Ruoling, who was covering her left cheek, flushed, with an aggrieved and complicated expression, standing there blankly, not knowing what she was thinking.

　The second one arrives.There will be an update this afternoon.

　　
　
(End of this chapter)