Vol 2 Chapter 68: Currency issues

As soon as the meeting was over, Ferdinand summoned the big management and asked, "Carr, how much money can Royal Bank still have?"
Karl Palace thought for a while and said, "Without affecting the normal operation of the bank, we can raise up to 38 million levs!"
After hearing this number, Ferdinand sank, and continued to ask, "What about United Bank?"
Prime Minister Carl Palace calculated and said, "The situation over there is slightly better. Their business is mainly aimed at domestic capitalists. Usually, they are draft transactions. The funds that can be used are about 50 million levs!"
Ferdinand nodded, this number is pretty good, the Bulgarian economy is so large, it is already very good to have this number!
Ferdinand now misses that era of credit standard. The government has no money to print a ticket to solve the problem. Inflation is a big problem, just control one amount!
In terms of the current Bulgarian economy, it is a lack of currency, and it is really not a problem to add another one or two hundred million. Unfortunately, Bulgaria lacks gold reserves!
"In the future, the Bulgarian government may face a funding gap of more than 500 million levs. Royal Bank and Union Bank can form a consortium to provide loans to them, and if possible, join the Bulgarian National Bank together!"
Carl hesitated again and again before he said, "Dagong, there are too few Levs in circulation in Bulgaria, and they have begun to hinder economic development.
From 1887 to the present, the total economic volume of Bulgaria has almost tripled, but our total currency has only increased 1.7 times!
And the Bulgarian National Bank has limited gold reserves and is unable to issue so much funds. Therefore, in addition to Lev in our country, the ruble, franc, pound, and mark are in circulation! "
Carl's words suddenly awakened Ferdinand, patronizing the development of the economy, but ignoring the currency circulation, and the large profits were earned for nothing!
Figured this out, Ferdinand decided to change Bulgaria's current currency issuance model! Asked now: "How much gold do Royal Banks and United Bank have?"
Karl thought for a while and said, "At present, the Royal Bank's gold reserves are about 7.43 tons of gold. In addition to some of the acquisitions in the market, mainly the gold mined by Royal Bank's gold mining companies is directly deposited in the bank and not sold !!
United Bank's gold reserves are much smaller, only 1.32 tons, used for daily exchange! "
Ferdinand thought for a while and said, "Reserve more gold and find a suitable opportunity. The two banks applied to the Bulgarian Ministry of Finance to obtain currency discovery rights!
I plan to set up a separate institution to be responsible for the issue of Lev. At present, the National Bank is unable to bear the heavy responsibility of issuing currency! "
Karl thought for a while and said, "Dagong, in this case, can we share the gold produced by United Mining Company without selling it?"
Ferdinand nodded. After working with Edward to unite the United Mining Company, he had a lot of land. The gold mines that have been successively mined in recent years are already an astronomical number!
If you study carefully, you will find that United Mining has become one of the world's largest gold mining companies, and can provide Ferdinand with huge profits of hundreds of thousands of pounds every year!
...
After being aware of the currency crisis, Ferdinand immediately convened a cabinet meeting, and now it is fortunate that the gap in the market has been filled by borrowed funds from the powers.
But the trouble soon began, and the area of ​​the territory was almost doubled. Should we continue to circulate the currencies of other countries?
At that time, it will be embarrassing to find that on the territory of Bulgaria, the mainstream currency is the pound and the franc, which is funny!
If that happens, the Bulgarian government will not only lose its face, but more importantly, a large amount of economic benefits will be captured by the powers by issuing currency!
Chancellor of the Exchequer Kennedy said with a grin: "Prince, the currency issue has not only bothered us, even Germans and Americans have had headaches for this issue!
In the Civil War decades ago, the US government owed a large loan to Britain and France, and the country lacked sufficient gold reserves and was unable to issue enough currency. It had to rely on the British, who once controlled the US economy through loans !!
Later, Americans discovered a large number of gold mines in China, and then they got enough gold to issue currency.
Especially after the gold of Alaska was discovered, with enough gold to issue currency, the American economy has achieved rapid development. Now their total economic volume has exceeded that of the British mainland!
Of course, this data is still false, but at the speed of the development of the American economy, it will be doomed to surpass that of Britain in the future. "
Ferdinand was startled, and this operation!
Americans have troubled economic development because of a lack of gold!
Not to mention Germany, as it lacks gold reserves now, it is no wonder that William II will fight the British for the problems of the Boers!
In recent years, German industrial and commercial products have flooded the two Boer republics, with dozens of tons of gold flowing into South Africa from Germany every year.
At this moment, weren't the British hitting the Boers, were they moving the cheese of William II? Ferdinand remembers that in history the British seemed to have bought the Germans at great cost, but then they defaulted again!
This is equivalent to only paying a deposit and taking the goods, and the latter part directly announced that the account was owed. Of course, the owner of the goods did not agree!
It's no wonder that William II is about to engage in a large navy. Ordinary people can't stand people who are relying on their accounts, let alone Germany! Once the great navy plan came out, the conflict between Britain and Germany could no longer be resolved!
"Then the Ministry of Finance, what are the solutions?" Ferdinand asked
Kennedy said a little embarrassingly: "The problem of lack of gold reserves cannot be solved in a short while.
We can buy some from the market, but it is still difficult to solve the problem by this!
However, the Balkans has always been one of the important gold producing places in the world. The history of gold mining has been over thousands of years. In addition, the output of gold mines in new territories should gradually meet our needs! "
Ferdinand shook his head ~ EbookFREE.me ~ and said, "It's not that simple. Except for these gold mines, which were concealed privately by the aristocracy, most other Sudanese governments were mortgaged to the powers!
At that time, we can only have a gold mining tax at most. If we want to collect it directly, don't dream about it! And in time, too late!
By the way, in the past few years, how did your Ministry of Finance solve the issue of gold? "
The Minister of Finance Kennedy said bitterly: "We are really powerless. The gold that was previously added to the currency was mostly gold products obtained from homes. We directly smelted it and used it as a reserve to issue currency!
In the current situation, we can only rely on the powers and issue currency by linking with the pound or the franc! "
Ferdinand thought about it and said, "This question, your Treasury Department will continue to think of ways! Once Lev is really linked to the pound or the franc, our economy will have to be controlled by others!"
Hesitating again and again, Ferdinand still did not put forward a proposal for the joint issuance of currency by the three major domestic banks, which easily caused future criticism!