Chinese martial arts! Grandmaster

The four attendants originally followed Princess Li Lingyue.

Since Li Lingyue married Chen Jie, their status has changed, and they have become idle and have nothing to do.

therefore,

After Li Lingyue took over the financial work of Ximentang, she had her four servants follow her as assistants.

Although none of the maids had any prior experience with this subject, Chen Jie fortunately provided them with a wealth of materials to study.

More importantly, the colleges in Qingzhou, Shandong, have cultivated a large number of reserve talents.

As early as six months ago, Ximentang's "Daqian Times" had already begun to publicize the plan to issue a new currency.

Furthermore, the entire Daqian Dynasty was actively promoting the issuance of the new currency.

Chen Jie has specifically studied cases of failed currency changes in the history of 'Urban World'.

The most typical example is Wang Mang during the Western Han Dynasty. His currency reform failed because excessive and indiscriminate issuance of currency led to social and economic turmoil, widespread poverty, and a loss of the value of money.

The issuance of a new monetary system must have an anchor, which must be based on the credit of the Great Qian Dynasty.

Once issued, it must not be changed overnight due to obstacles encountered, otherwise a unified currency exchange will not be formed.

in fact,

Whether the currency reform can be successfully implemented depends mainly on several aspects.

the first,

The key is to proceed step by step and never be impatient for quick results.

It is impossible to expect that the old currency will be completely abolished immediately after the new currency is issued, let alone to force the use of the new currency, thereby eliminating the transaction value of the old currency and prohibiting its circulation.

Doing so could easily cause social unrest and even cause ordinary people to abandon the use of the new currency.

For over a thousand years, the monetary system of the Great Qian Dynasty primarily used copper coins and silver, which had permeated every aspect of people's lives.

Simply put, everyone had become accustomed to copper coins and silver dollars.

Even if new currencies are issued, the old monetary system cannot be withdrawn from transactions so quickly.

For a new currency to gain a foothold in the market, it needs sufficient time.

Therefore,
After a new currency is issued, there will be a long period of coexistence between it and the old currency, which is commonly known as the 'transition period'!
Only by using both old and new currencies simultaneously and gradually withdrawing the old currencies can the market share of the new currencies be expanded.

Only when everyone uses the new currency, develops confidence in it, and accepts it, can it fully dominate the trading market and eventually completely replace it.

second,

When issuing and replacing new currencies, the conversion ratios must be simple, clear, and easy for everyone to use.

At least when using a new currency, the conversion ratio should not be complicated.

Simple and convenient!

This is a basic requirement for the new currency.

third,

When issuing new currency, it is absolutely forbidden to issue it indiscriminately or over-issue it.

A large amount of new currency cannot be issued and put into the trading market all at once. Instead, the issuance should be increased gradually, and the old currency should be withdrawn at the same time as the new currency is issued.

As a result,
The currency in circulation in the market must be kept in a stable balance within a controllable range; only in this way can inflation or deflation be avoided.

Market stability is the core requirement for the implementation of the new currency.

fourth,

In order to quickly promote the new currency, it can first circulate in various important departments of the Great Qian Dynasty, especially the tax revenue of the Great Qian Finance Department. Settling in the new currency will make it easier for merchants to accept.

Wang Mang made several serious mistakes when issuing new currency.

He issued frequent changes to the currency, carrying out four currency reforms in total, almost once every five years, and issuing a large number of currencies, nearly thirty in total.

Therefore,
The court's credit was being eroded indefinitely, and there was no unified standard for converting between the new and old currencies, making circulation extremely difficult.

Suddenly, the trading market was in chaos, and many ordinary people and merchants dared not use the new currency for settlement, which seriously hindered the implementation of the new currency.

Wang Mang used his imperial privileges to force the trading market to accept the new monetary system.

but,

The market cannot function perfectly simply because of a single government decree.

The end result was a chaotic monetary system, the complete depletion of the Western Han court's credibility, and the failure of any attempt to change the monetary system.

In addition, there is the Ming Dynasty in the 'Urban World', where Zhu Yuanzhang also carried out currency reform and issued the Ming Treasure Note.

His main mistake was over-issuing and recklessly issuing currency.

The lack of a precise anchor led to a severe over-issuance of Ming Dynasty banknotes.

Furthermore, when issuing the Da Ming Bao Chao (Great Ming Treasure Notes), the Ming Dynasty did not recall the old currency, and there was no precise time limit for currency exchange.

As a result, more and more new currency was issued, while the old currency was not withdrawn, leading to an overabundance of currency in circulation.

Therefore,
The final result was that the issued Ming Dynasty banknotes were severely devalued.

The Ming Dynasty's imperial tax collection always relied on the old currency, and it did not collect the newly introduced Ming Treasure Notes at all.

In that case, who would dare to use the new currency?

Therefore, Zhu Yuanzhang's promotion of the Great Ming Treasure Note was destined to fail, and he almost lost the court's trust.

Ultimately, with no other option, they had to abolish the Ming Dynasty Treasure Notes and restore the old monetary system.

The current monetary system of the Great Qian Dynasty is based on the silver standard, with everything anchored to silver.

Even copper coins, or Western gold coins, are based on the value of silver.

Chen Jie fully understood the lessons learned from the successes and failures of currency issuance in the past dynasties of 'Urban World'.

Currently, the situation in the Daqian Dynasty has stabilized.

Ximentang controls all aspects of the Daqian Dynasty, including its economy, military, trade, and people's livelihood, and is fully capable of guaranteeing the issuance of the new currency system.

In the issuance plan, Chen Jie did not intend to replace all the old currency at once.

New and old currencies coexist and are used.

Initially, the amount of new currency issued was small, and at the same time, the old currency was withdrawn, gradually increasing the market circulation of the new currency.

Supply and demand are in balance!

When a new currency is introduced, it should gradually replace the old currency in a step-by-step manner.

In this way, once the new currency is issued, it will have almost the same value as the old currency, and there will be no problems of inflation or deflation.

in addition,

Since the old currency has been in use all along, it will not cause too much social unrest.

The new currency has a clear value exchange system that is simple and direct, and it uses paper money in the form of banknotes!

At the same time, its denomination was pegged to the silver standard, and its weight was much less than that of silver, making it easy to carry.

In terms of usability, it is much more convenient than the old silver dollars and copper coins.

More importantly, there were very well-established regulations governing the conversion between paper money and silver dollars.

therefore,

When paper money and old currency are used in parallel, they can be mutually exchanged without causing confusion.

More importantly, the Ministry of Revenue of the Great Qian Dynasty explicitly stipulated that all taxes would begin to use the new monetary system.

in addition,

The Great Qian Dynasty strictly stipulated that all merchants, individuals, restaurants, ferries, and other businesses were not allowed to refuse the implementation of the new currency without authorization.

Of course, the most important thing is to make everyone feel that promoting the new currency is profitable, so that everyone will spare no effort to promote it.

Therefore,
To expedite the implementation, the Ministry of Revenue issued a new currency exchange rebate policy, which stipulated that if taxes were paid in the new currency, a rebate of one percent would be awarded.
For ordinary people, a 1% rebate might not seem like much. However,

For merchants and large, established businesses, a 1% tax rebate is a considerable sum of money.

Although such a tax rebate system will have a certain impact on the tax revenue of the Great Qian Dynasty.

but,

Ximentang is not short of money, and the lost tax revenue provides ample room for profit in pricing.

Currently, most of the industrial manufacturing and military industry of the Great Qian Dynasty are controlled by Ximen Tang.

As long as Simon takes the lead in vigorously promoting the new currency, the promotion of the new currency system will be much more efficient.

The newly implemented tax mechanism is actually very attractive to merchants, as it not only enhances the credibility of paper money but also strengthens the cohesion of the Great Qian Dynasty.

Half a month later.

The implementation of the new monetary system in the Daqian Dynasty began in the capital, Tianjin, Shandong, northern Jiangsu, southern Jiangsu, Songjiang Prefecture, eastern Zhejiang, Huainan, Hanzhong and other regions.

The various money shops under Ximentang underwent restructuring and became the first-generation 'banking system,' beginning to freely exchange the new currency.

Because it was endorsed by the Great Qian Dynasty and vigorously promoted by Ximentang.

Chen Jie's planned 'banknote replacement' has officially begun.

have to say,

The new currency system was indeed very popular, and the 1% tax rebate played a significant role in accelerating its implementation.

On the first day of the introduction of paper money, many merchants who had business dealings with the canal gangs went to the money shops to exchange for paper money.

Although the total amount exchanged was not large, the number of people exchanging it was quite significant.

Most of these people went to the money exchange to exchange paper money because of the reputation of the Grand Canal Gang and on their advice.

and,

After exchanging their banknotes, they immediately used them to pay taxes and surprisingly received a 1% rebate.

As a result of their promotion, more and more people began to go to money exchanges to exchange paper money.

Anyway, once the tax is paid, the imperial court approves, and there's a profit to be made, so why not?

In fact, these small business owners are very sensitive when it comes to profits.

As long as it can make money and bring benefits, it will spread rapidly and become known to everyone.

The key is,
Chen Jie chose an excellent time to implement paper currency, coinciding precisely with the tax payment period.

therefore,

More and more merchants went to money exchanges to exchange for banknotes and use them to pay taxes.

This was the effect Chen Jie wanted. Although these merchants exchanged the banknotes at the money exchange and quickly used them to pay taxes, the banknotes did not circulate in large quantities in the market.

but,

Paper money has acquired value and credibility in everyone's mind, proving its universality and thus increasing its acceptance.

In a short time, the vast majority of people began to accept paper money.

Paper money could be directly exchanged for silver dollars, and there were almost no restrictions on the exchange between the two.

In this way, a very good foundation has been laid for the circulation of paper money.

The key is,
Tax calculations were based on the silver standard, meaning that each banknote was equivalent in value to a silver dollar.

Of course, the rebates were issued in paper money, which caused the paper money to begin entering the market circulation process.

Five days later,

As the credibility of paper money began to solidify, many people started to find it troublesome and opted to use paper money directly for transactions and settlements.

According to the new regulations issued by the Ministry of Revenue of the Great Qian Dynasty, all salaries, military pay, etc., are to be issued in paper money, and all merchants must accept and use the new currency and cannot refuse.

With no other option, merchants cautiously began accepting banknotes.

Because paper money could be quickly exchanged for silver dollars, there was no chaos even after continuous exchanges.

Therefore,
Even though many people were initially very resistant to paper money, after several rapid exchanges, they finally began to accept the circulation of the new currency.

Furthermore, after the introduction of paper money, people discovered that it was much more convenient to use than silver dollars and copper coins.

The advantages of banknotes, such as being easy to carry, lightweight, convenient to use, and easier to calculate, have led to more and more people accepting their use.

Essentially, paper money is the same as banknotes.

With the backing of the imperial court and Ximen Hall, and after everyone found that there were no problems, they naturally did not object to using it.

not to mention,
With the various industries under Ximentang's control, including commercial channels such as the Grand Canal Gang, and the full support of the six ministries of the imperial court, the speed at which paper money was introduced exceeded Chen Jie's expectations.

He discovered that Ximentang's influence in the Great Qian Dynasty seemed to be much greater than he had imagined.

Ten days later.

The major money shops in Ximentang dispatched a large number of staff to conduct shopping transactions using paper money in the market and to investigate and provide feedback on the public's attitude and reaction to paper money.

Although some people still lack confidence in paper money and dare not use it.

However, such situations are rare and unavoidable; only time will prove that the value of paper money is the same as that of the old monetary system.

Overall,
The implementation of the new currency was perfect.

Of course, during the implementation, various newspapers under Ximen Tang's command promoted and publicized the new currency, occupying the high ground of public opinion and making many ordinary people at the bottom understand its promotion. This had a very significant effect.

After confirming that the implementation of paper currency was going smoothly,
Chen Jie and the officials of the Daqian Dynasty, as well as Zeng Xuanhuai, Xu Shichang and others, couldn't help but breathe a sigh of relief.

The first step in the currency exchange has been a perfect start.

Many officials of the Great Qian Dynasty greatly admired the Qian King.

The Great Qian Dynasty has tried to change its currency many times over the years, but has never succeeded.

Replacing silver dollars with paper money for circulation was even more difficult.

Unexpectedly, Chen Jie successfully got the people of the Great Qian Dynasty, from top to bottom, to accept paper money in just half a month.

This is simply a miracle; it's astonishing and truly remarkable.

However, Chen Jie was very clear that the currency change was only the beginning and did not mean that paper money had completely replaced silver dollars and copper coins.

The entire currency rollout plan will take one year.

Therefore,
We absolutely cannot be careless in the coming year.

Once this policy is fully implemented in the territories of other feudal lords, no one knows what will happen.

Therefore, Chen Jie ordered the six ministries of the Great Qian Dynasty to closely monitor the promotion and use of paper money and to report any abnormalities to him immediately.

in addition,

Chen Jie ordered the banknote processing and manufacturing plant to speed up the printing of banknotes.

This set of banknote manufacturing equipment represents the new-century production technology of 'Urban World'.

Given the current level of industry and technology in this 'other world,' it is simply impossible to replicate or counterfeit it.

As paper money gained acceptance and recognition across all sectors of the Great Qian Dynasty.

In the coming period, the demand for paper money will become very high.

Therefore,
The paper money manufacturing plants must work overtime to produce enough paper money to meet the market's transaction and circulation needs.

The recall of silver dollars and copper coins was carried out simultaneously with the promotion of paper currency circulation.

The imperial court issued strict decrees requiring local money shops to rigorously inspect and verify the quality of silver dollars when exchanging them for paper money, ensuring that counterfeit silver dollars of inferior quality did not enter their hands.

Ximentang established a supervisory team to be stationed in various money shops to audit accounts and prevent any instances of favoritism or fraud. (End of Chapter)