I am the prince of the Ming Dynasty, I don't give up

Chapter 606: Gold Yuan Coupon

Everyone present was speechless. They suddenly understood what financial hegemony was. This was naked financial hegemony!
Everyone present understood that the silver dollar certificate was essentially a piece of paper. The reason why it was valuable was because it could be exchanged for precious metal currency. However, the Royal Group had now imposed many restrictions on the exchange of the silver dollar certificates in the South, which was a naked attempt to plunder the South's wealth and let their silver dollar certificates rot in their hands, turning into pieces of waste paper.
"Will this not affect the credit of the silver dollar notes? Won't the gentry in the south be affected by this?" an official asked.

"Yes!" Tian Cheng interrupted him directly, and then said: "It will have an impact, but compared with the impact caused by the flow of gold and silver to the south, it is still relatively small. Those gentry will feel dissatisfied because of this, but don't they understand why we do this? All of this is their own fault. They were the ones who assassinated the late emperor and launched a coup. This is their punishment!"

The official was so ashamed that he dared not say anything.

Tian Cheng continued: "In addition, in the past three years, we have secretly over-issued a lot of silver yuan notes. I will not disclose the amount. We used this part of the over-issued silver yuan notes to secretly purchase various strategic materials in the south to weaken the south's war potential. Now many of the materials on the front line were actually purchased from the south before."

When these words came out, all the military personnel were moved. They really didn't know about this.
"Are they stupid?" Zhuang Jiye asked, expressing everyone's thoughts. "Aren't they helping us? And once the war breaks out, the silver dollar notes in the South will become worthless. What do they need so many silver dollar notes for?"

Many people couldn't help but laugh, making Zhuang Jiye very embarrassed, Tian Cheng was among them.
He laughed for a long time before saying, "You don't think those gentlemen really took those subtle words to heart and that they are all people of high moral character, do you?"

"Profit is the most important thing. There are many gentry who are willing to sell us supplies privately. As long as the price is a little higher, it will be enough. If twice the price is not enough, then triple it. They are not a strict organization like the Royal Group that can effectively control the flow of various materials. They are just a loose organization. Before the incident, no one can control anyone, so they have no psychological pressure to sell supplies privately."

"As for the fear of war breaking out and the silver dollar coupons in their hands becoming waste paper, that's even simpler. This risk can be completely transferred! They are very skilled in this. The news that a war is going to break out between the North and the South is no secret to the upper class, but it is a secret to the lower class. Moreover, there is no way to determine the time of the war (here refers to the time of Zhu Houzhao's death). The silver dollar coupons are very strong for the lower class, so they can use this information gap to use the silver dollar coupons in their hands to buy real estate, houses, land and so on from the lower class at a high price. In this way, the risk is transferred and all the risks are transferred to the lower class. I don't know if you have noticed that the land prices in many places in the south have doubled or tripled a while ago. It's because of this." Tian Cheng said with a relaxed look.

Zhuang Jiye's expression became more and more surprised. He really didn't expect this. He said in disbelief: "You bought so many supplies from them with a pile of paper that was about to become waste paper? Isn't it the same as selling us the noose to hang themselves? How could they be so unwise?"

"This involves human nature. Just as His Highness often says: Don't test human nature, human nature cannot stand the test. This is the truth. Faced with huge arbitrage space, they will really sell us the noose to hang themselves," Tian Cheng shrugged and said lightly.

Zhuang Jiye was silent, and so were the military officers around him. They suddenly felt that those who were engaged in finance were so scary, and they understood more clearly what financial hegemony was.
"The rest is very simple. The large amount of silver yuan notes circulating in the southern market will become waste paper with the outbreak of war, because the value of silver yuan notes lies in their ability to be exchanged for gold and silver. Now that they have lost the way to exchange for gold and silver due to the war, they have also lost their expectations. These silver yuan notes have lost their value as general equivalents and become worthless. The silver yuan notes in the hands of countless low-level people have become waste paper, and their wealth has not disappeared out of thin air, but has been transferred to the hands of the gentry. This will cause huge social contradictions. At the same time, such a large amount of currency has become waste paper, and they do not have enough gold and silver reserves to serve as currency. This is equivalent to letting the south instantly regress to the era of barter. The chaos caused by this is huge. It will affect everyone in the south." The people around were terrified, but Tian Cheng remained calm.
Everyone can feel from Tian Cheng's words how big a mess the southern government has to face.
"Actually, I haven't finished talking about our financial operations yet," Tian Cheng's voice sounded again.

"Not over yet?" The officers present were all shocked. It has come this far and it's not over yet?
"Yes!" Tian Cheng glanced at the row of officers with a look of an illiterate.

"Let's imagine that there is such a huge monetary gap in the southern market. The southern government will not remain indifferent. They will quickly come up with corresponding measures. So what kind of measures will they come up with?" Tian Cheng asked.

"It's very simple! The Southern government, which does not have much gold and silver reserves, has only one way to go, which is to use the government's credit as a guarantee, print and issue its own credit currency to alleviate the currency shortage in the market." Tian Cheng continued.

"And the Nanjing government has issued its own credit currency just as we expected, and I have now obtained the currency they issued." Tian Cheng said as he took out seven or eight pieces of golden paper to show everyone.

"Perhaps they wanted to take advantage of the credit of the silver yuan coupons, or to satisfy the usage habits of the people, so they called this new currency the gold yuan coupons!" Tian Cheng said with a smile.

"Gold Yuan Coupons?" Zhu Houxun suddenly asked.

He looked at the banknotes in Tian Cheng's hand with burning eyes, and said in a very sincere tone: "What a good name!"

Everyone was busy admiring the gold yuan coupons and did not notice the strangeness in Zhu Houxuan's tone.
Tian Cheng also enthusiastically asked everyone to take the eight gold yuan coupons and pass them around to appreciate them.
After everyone had appreciated them for a while, Tian Cheng suddenly said, "In fact, four of these eight gold yuan notes are genuine notes issued by the Nanjing government, and four are counterfeit notes made by the Royal Bank. Can you tell which ones are genuine and which ones are counterfeit?"

(End of this chapter)