Chapter 926 Opportunities for Currency Reform

How much gold is enough?

A ton? Ten tons? One hundred tons? One thousand tons?

No one knows for sure.

According to the formula given by the dragon, the proportion of brass and gold in Oliha steel accounts for the vast majority.

The specific production ratio of Oliha steel is brass: gold: mithril: arcane: dragon's blood = 8: 1.5: 0.3: 0.1: 0.1.

This means that to produce 1,000 tons of Oliha steel, 800 tons of brass, 150 tons of gold, 30 tons of mithril, 10 tons of arcane gold, and 10 tons of dragon blood will be used. Of course, due to the extraction of The active ingredient is gold cells, so dragon blood can be replaced with gold cells. According to the average content of gold cells in the dragon family, the effect of 10 tons of dragon blood is approximately equal to 4 to 5 tons of gold cells.

Brass is good. The copper reserves in Purandar are very huge. The brass currently mined is mainly used to produce water pipes, as well as some metal utensils and parts for magic machinery. The production capacity is definitely sufficient.

As for dragon blood, once the ground dragon breeding industry starts, the supply of golden cells can be said to be endless, so there is no need to worry.

The more troublesome areas are gold, mithril and arcane.

Note that the consumption of this recipe is calculated in tons!

If mithril and arcane can be measured in tons, can they still be considered rare and expensive magic metals?

When dwarf blacksmiths, alchemists and other professions use mithril arcane, they all use grams!

Recalling Sasha Grot's words, and then thinking about the golden giant statues in the different space, the corner of Tang En's mouth twitched.

Purandar's mithril and arcane have been turned into Oliha steel to form a golden statue of the giant god - but of course Tang En will not destroy the body of the golden giant statue again and reshape it for the giant statue. If Long produces magic cannon armor, it is undoubtedly picking up sesame seeds and losing the watermelon.

Fortunately, Tang En is holding the golden thighs of the gods. He has mithril and arcane. Although it is impossible to supply large-scale industrial production, there is no problem in dealing with this batch of orders from Sasha Grot. As for the rest Mithril and arcane can only be found from other magic metal mines.

Of course, there is another place.

Astral realm.

The planets in the Star Boundary are also quite rich in mineral resources. In addition to magic metals, heavy metals such as gold are widely found in the Star Boundary. But the biggest problem is... there is no way to mine them on a large scale.

Mining in the star realm is equivalent to mining in the asteroid belt in outer space. The current industrial level of Purandar has not even broken through the atmosphere. How can it have the ability to mine in outer space?

If you use the power of magic to overtake and take shortcuts, you can certainly achieve a small amount of mining, but this requires a stable star base, and you also have to convince those magicians who have at least a master level to be willing to go to the star. Venture into the world to work as a miner...

This situation will only happen after the power of magic completely loses its mysterious color and becomes an ordinary power that can be completely popularized.

At present, it seems that the batch of orders for Sasha Grot should be dealt with first, and then we can find ways to find materials for subsequent production.

"gold?"

Fiona frowned: "Are our current gold mines not enough?"

"I can't say enough, I just thought of one thing...don't you think there are too many gold coins circulating in various countries on the mainland?"

Fiona was startled by Tang En's words, and then she was shocked: "Do you want to--"

"Yes, I want to recycle gold coins, smelt and separate them, and then restore gold to its status as an industrial raw material."

Tang En nodded and said: "In the past, there were too many gold coins issued by various dynasties and they were too complicated. Some of these gold coins were stored in the vaults of various wealthy people, and some were still circulating in the market. This was very detrimental to the healthy development of the economy, so I think We should do something."

Fiona was a little hesitant, and after a moment, she said: "Isn't it too reckless to do this? Gold coins have been Purandal's currency for thousands of years. If currency reform is to be carried out, there will definitely be considerable resistance."

"How do you put it? The economic policy of the gold standard is based on the rarity value of gold. But if you look at the current market, do you think gold is rare?"

Tang En spread his hands, and Fiona had nothing to say.

Because he told the truth.

Nowadays, any product can cost hundreds or even thousands of gold coins. If not for the emergence of Star Diamond Bank, even transactions would have been a problem - because it is impossible for anyone to go out with so many gold coins all day long, it would be crushing to death.

As a currency, gold coins have already had many drawbacks. If they can be reformed, there are indeed benefits. However, if they cannot be reformed smoothly, it may cause huge hidden dangers.

It’s not that the current mintage of the Illus Empire is over-issuing currency, but because the previous concept of gold = equivalent has been inherited. Therefore, the old empire’s gold coins often have a large amount left in the world, and not all of them have been recycled. Recasting, this led to the current strange circle.

In fact, the existence of Star Diamond Bank has greatly slowed down the difficulty of gold coin transactions. Large transactions have begun to use Star Diamond Bank's bank cards for direct settlement by credit card, and the accounts are calculated within Star Diamond Bank. From a certain perspective, He said that in fact, Purandar already has a prototype similar to electronic payment, but electronic payment has not yet been fully realized. Currency naturally still has its existence value.

"Do you just want to recycle old gold coins, or do you want to reform the entire current gold coin monetary system?"

Fiona sighed: "If it's the former, I can think of a way. If it's the latter, I'm afraid you have to discuss it with Princess Alleria and Queen Olena. The impact is too big and complicated. I'm not familiar with politics. Things are still a bit unsettling.”

"Do it all."

Tang En said decisively: "Not only do we need to recycle old gold coins, we also need to reform the existing currency, abolish the gold coin monetary system, and introduce new currencies."

"New currency?"

"Well, for example... banknotes."

"Paper?"

Fiona was even more surprised: "How can paper serve as currency?"

After Tang En thought for a while, he said: "Let me explain it to you. For example, I am the president of the Datang Chamber of Commerce, and you are the raw material supplier of the Datang Chamber of Commerce. Now I owe you one million gold coins for raw materials. As for the payment, I don’t have gold coins on hand, and I don’t have a Xingdiaan Bank card machine for settlement at the moment, so I will write an IOU in the name of the president of the Datang Chamber of Commerce. You can use this IOU to exchange for value at any store of the Datang Chamber of Commerce. Are you willing to accept the goods worth one million gold coins?"

Fiona said without hesitation: "Of course I am willing."

"Why would you want to?"

"Because you are the president of the Tang Dynasty Chamber of Commerce... Oh! I understand!"

Fiona immediately had an epiphany: "The currency here represents credit!"

"That's right."

Tang En smiled happily: "Expand the scene a little further. As the king of the Illus Empire, I will act as a guarantee in the name of the king and issue banknotes instead of gold coins. In the name of the royal family, I guarantee that the purchasing power of banknotes is the same as that of gold coins. , do you think merchants will choose portable banknotes or heavy gold coins?"

"Of course it's banknotes," Fiona paused and added, "The premise is that the merchant is willing to believe in the credit of the royal family of the Illus Empire."

"That's right, so to issue a new version of currency, the first thing to solve is the credit problem of the royal family, or more broadly speaking, the economic, political, and military strength of the Illus Empire. Only when it has strength can it gain widespread recognition. , the value of the currency issued will be more easily accepted by the market."

Tang En continued: "By issuing a new version of currency, recycling the redundant gold on the market, and smelting it into materials, we can greatly alleviate the raw material problem of Oliha Steel. At the same time, we can also digest the legacy of the previous government during the currency replacement process. gold."

"You want to recycle those old gold coins at a discount?"

"Of course!"

Tang En said matter-of-factly: "That is the currency issued by the previous dynasty. How can we recognize it! The reason why they can still continue to circulate is just because the object that serves as the equivalent is 'gold'. Once the status of gold is changed from the equivalent to the Returning to metal materials, those old gold coins will lose their trading value, and even if they are collected, there will be no point in collecting them, which will inevitably force those people to exchange the stored and uncirculated gold coins."

“The most important thing is that in this process of replacing new currency, we can control the total amount of new currency issued. Through the replacement process, we can know how much currency is actually issued in the market, so as to macro-control the entire market. "

Carrying out currency reform is of course not that simple, but Tang En only knows so much about this aspect. He knows nothing about more complex economics and finance. He can't handle things like treasury bonds and securities. He I only know that banknotes are a manifestation of the government's credit, and now the new government of the Illus Empire, represented by him, has given the entire empire a new lease of life. The public support rate is unprecedentedly high. In addition, no one in the Datang Chamber of Commerce can match it. status, it can be said that everything is ready to implement this new policy. All it needs is the east wind.

Of course, maybe it would be better to implement such a radical policy in a few years, but the problem is that time waits for no one. Tang En can afford to wait, but the world cannot afford to wait...

Who knows when the Chaos army will arrive?

Therefore, it is better to promote policies that can promote economic development and industrial progress as soon as possible.

“But how do you convince people to exchange for a new currency?”

Fiona asked Tang En: "The emergence of new things is always accompanied by all kinds of doubts and suspicions. How can people accept new currencies so easily?"

In people's minds, gold coins are equivalent to gold and valuable things. If you ask them to exchange gold coins for a kind of paper currency, they will definitely not accept it so easily.

It took a very long time for paper money to replace alloy currency on the earth. Jiaozi during the Tang and Song Dynasties in China can be said to be the earliest paper money. It existed as a manifestation of bank credit. Later, Australia was the first to completely use paper money to replace alloy currency. country, and nearly a thousand years have passed in between. You can imagine how difficult it is.

Fortunately, Tang En really has a way.