Chapter 256: The first step to seizing power-reform of the gold standard

After entering 1855, the economic conference of the Austrian government increased. In addition to dealing with non-performing assets, the more important thing was the currency reform.
Unlike the beginning of the succession, Austria's gold and silver reserves were insufficient, and the focus of the government's economic work was to stabilize the currency.
In the Near East War, a large amount of gold and silver traded with Russia flowed into Austria, the dilemma of insufficient gold and silver reserves has been improved, and the necessary conditions for the reform of the gold standard have been met.
The scope of the currency reform is too wide. It is not that Franz can make a decision at the stroke of his head. The cabinet government has conducted many demonstrations and still cannot reach agreement.
At present, most countries use the gold and silver reset system. Otherwise, gold or silver is used as the currency directly.
In the government building, those who support the reform of the gold standard system are currently debating with the proposal to reset the gold and silver system. This is the last debate in Austria.
The view of that side can win, so what kind of standard system will Austria achieve in the next period of time.
Whether it is better or worse is actually not the system itself. The most suitable is the best, and different standards are adopted for different time periods to be the best choice.
In order to avoid going too far into becoming a martyr, Franz left the final decision to the elites of this era. The judgment of these professionals is always better than his layman.
Franz urged: "This meeting is only a discussion of the currency standard system. It is forbidden to involve any irrelevant topics and personal attacks are prohibited.
Please think clearly before you express your opinions. Your opinions will determine the future destiny of the new Holy Roman Empire. All factors must be considered comprehensively.
Prime Minister, you come to chair the meeting. "
The quarrel, let the younger brothers up!
If he was to persuade the Cabinet Minister, Franz wouldn't mind occasionally going out in person. At such public occasions, the emperor himself was too unwilling to end the debate.
Xiangzhuang Wujian is intended for Pei Gong. Naturally, this currency reform will not be so simple, or Franz will not propose the gold standard reform so early.
The deeper intention of the currency reform was to unify the currency of the new Holy Roman Empire and collect the coinage rights of various states.
It's time to seize power. Franz, who has always been cautious, will naturally pay attention to eating, and respect in face must be given first.
It is obviously not desirable to make the Austrian currency into the imperial fiat currency directly. Franz wanted a united empire, not a contradictory empire.
Now, with the opportunity of reform of the standard system, the issue of new currencies to replace the original currencies of all countries is to take care of everyone's feelings.
Regardless of the final result, the coinage will be taken away by the central government.
Prime Minister Felix replied, "Yes, Your Majesty!"
After listening for a while, they said, "The meeting of the currency standard of the New Holy Roman Empire, the last expanded meeting now begins, and delegates speak in order."
Many people attended the meeting, but not many people were qualified to speak. Except for the cabinet ministers, only the representatives of the states were qualified to speak.
Wurttemberg, Saxony, Frankfurt, Hessen, Lombardy, Bavaria, one each, and four Austrian representatives.
This is based on the principle of one representative per ten million people (less than rounding) and no less than one representative per state, and the state governments appoint representatives.
This is a system designed by Franz himself, the main purpose of which is to avoid people talking and delaying the meeting time.
The final meeting was decided by a vote of representatives of the states and five cabinet ministers. Well, this is the political show, a total of fifteen people can vote, eleven of them are personally appointed by Franz.
Frankfurt representative Hans said, "You, the gold standard system is not bad. The problem is that our domestic gold production cannot keep up with the growth rate of commodities.
According to the current growth rate of domestic industry and commerce, we need to increase at least a dozen or twenty tons of gold reserves each year to be able to issue sufficient currencies to ensure the normal operation of the economy.
At present, the annual gold output of the new Holy Roman Empire can only meet one quarter. How can the remaining gap be filled?
Rely on foreign trade to buy gold from the international market?
The Near East War has ended, and the opportunity for this kind of war money is gone. It is almost impossible to obtain such a large surplus in international trade.
In order to ensure the development of the domestic economy, it is best for us to continue to implement the current system of resetting standards. "
According to the current value of Austria's currency, this means that the annual trade surplus will reach 14 million dongs. Obviously, this is only an ideal number.
In fact, it will be more difficult to convert it into gold and ship it back to China to use it as a reserve for issuing currency.
Bavarian representative Jungle objected: "Mr. Hans, you are too concerned. The lack of gold production is not impossible.
Since the gold-silver mixing standard is abolished, we do not need a large amount of silver reserves, and we can take these silvers to buy gold on the international market.
At present, many countries in the world are resetting the standard system, and there is almost no obstacle in the exchange of silver for gold.
Really not. We can also enlarge the leverage ratio. As long as the government's credibility can be guaranteed, there will be no deficit in international trade, resulting in the outflow of gold, and inflation will not occur.
Whether the gold standard is reset or not, the bottom line is credit. If the government does not have enough credit, unless gold and silver are used directly as currency.
Moreover, resetting the standard system is not so good. On the surface, with more silver as a reserve, we can print more banknotes.
But in fact, we all know that the price of gold and silver is changing at any time. The discovery of a new gold and silver mine is enough to change the price ratio of gold and silver in the market, thereby bringing strong fluctuations to the currency market.
Under the reset standard system, the currency market fluctuates from time to time, and changes in currency values ​​that may occur at any time have seriously affected the development of domestic commercial trade. "
The two have spoken about the pros and cons of the two standard systems. If there is sufficient gold reserves, it is natural that the gold standard prevails.
On the contrary, we can only make do with gold and silver to reset the standard. There is no need to consider the credit standard test, this era will not work at all.
In international trade settlement, a good gold and silver settlement method is not used. Who will recognize "credit"?
Can't you use a pure silver standard? Everyone knows that the current silver output in the world is increasing year by year, and the ratio of gold and silver exchanges is declining.
If the silver standard system is adopted, the currency market is stable, but it is stable in a long-term depreciation.
Now this speed is not so fast. By the end of the 19th century, more and more silver mines were discovered. By then, the currency would not have collapsed.
Saxon asked Frank on behalf of Frank: "Before you discuss this issue, do we have to figure out how much gold and silver reserves the government has in hand?"
"The central government of the new Holy Roman Empire plus the local government has a total gold reserve of 382.6 tons and a total silver reserve of 8728.9 tons." Finance Minister Carl replied
This number is somewhat unexpected, and many people do not know that the New Holy Roman Empire already has so much gold reserves.
It's no surprise that since Franz's succession, the Austrian government has begun to increase its gold reserves subconsciously.
Specifically, it is necessary to reduce gold expenditures as much as possible during the external settlement and use silver instead. Anyway, under the gold and silver reset standard system, governments of all countries have the same attitude towards gold and silver.
During the Near East War, the Russians contributed a large amount of gold and silver to Austria, increasing the gold and silver reserves of the Austrian government.
In the gold and silver reserves of the New Holy Roman Empire, the Austrian government occupied 90% of the share, which naturally increased the domestic gold reserves.
This gold looks a lot. In fact, after the reform of the gold standard, it is only enough for early use. With the continuous development of the economy, this reserve needs to continue to increase.
The total amount of gold in this era was limited. Before the gold standard reforms were implemented in various countries, most of the gold was preserved in the form of luxury goods.
Hearing the good news, the Austrian representative Jurgen advocated the reform of the gold standard. "Our gold reserves are already quite large. If we now carry out the gold standard reform, we can also buy gold from the private sector.
At present, most countries implement the gold and silver standard system. We reform the gold standard in advance, and we can also exchange silver for a batch of gold.
Once all countries have started to reform their currency standards, and silver that has lost its currency status, prices will inevitably fall. In the end, it is estimated that even one-third of the current value cannot be maintained.
From the perspective of long-term development, stable currency is very important. The British have taken the first step. If we don't keep up, we will lose money later. "
The gold standard system was originally proposed by the British. The British began to engage in the gold standard as early as 1823. They had enough overseas colonies, and the gold mined from the colonies was sufficient to support their implementation of the gold standard.
This is not possible in most European countries. Although everyone knows the benefits of the gold standard, they are afraid to follow up without sufficient gold reserves.
The gold and silver reset standard system is a substitute for the shortage of gold reserves. If the new Holy Roman Empire enters the gold standard era, then this topic will not be bypassed.
Frankfurt representative Hans shook his head and said, "Monetary reform is important. If you step out and want to recover it, the price paid will not be a little bit.
Even if we are now scanning goods on the international market, the amount of gold that we can obtain is limited, and it can be very difficult to exchange for one hundred and eighty tons.
The gold standard system has been established, and we can support it in the early stage. But after ten years, twenty years, or even longer, what should we do when we find that the gold reserves are insufficient? "
After listening to Hans' explanation, Franz finally understood why they would resolutely oppose the reform of the gold standard. In the final analysis, it was still insufficient gold reserves.
The development of the New Holy Roman Empire is fast. Since the economy has developed, the amount of money in circulation in the market has naturally increased.
Increasing the circulation of money in this era is not just about printing tickets. It must also have enough reserves, or enough gold and silver to be placed there, to reassure people of the government's credibility.
The idea of ​​obtaining gold from the colony became lingering in Franz's mind.
This is the most effective and reliable method. South Africa has the most gold mines. Unfortunately, the British have occupied the coastal areas. Unless they can get around inland, they can only look into the distance.
This unreliable method, Franz stopped thinking. Africa's inland regions can't be confused. It's a really wild place.
Even if the traffic is cleared and the gold mine is finally developed, it will still be contested by European countries. Austria is not a British empire, but it does not have the ability to cut everyone from the sea and join the loot.
Franz didn't want to make wedding dresses for others, and he invested a lot of money. In the end, everyone came to divide up, and the cost of Austria could not be recovered.
Think again about other regions ...
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