Chapter 926: Opportunities for currency reform

How much is enough gold?
One ton? Ten tons? One hundred tons? One thousand tons?
No one has the exact number.
According to the formula given by the dragon, the proportion of brass and gold in Oliha Steel occupies the vast majority.
The specific production ratio of Oliha Steel is brass: gold: Mithril: Ogilt: Dragon Blood = 8: 1.5: 0.3: 0.1: 0.1.
This also means that to produce 1,000 tons of Oriha steel, 800 tons of brass, 150 tons of gold, 30 tons of Mithril, 10 tons of Austrian gold, and 10 tons of dragon blood will be used-of course, due to the extraction Because the active ingredient is gold cells, 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 about 4 to 5 tons of gold cells.
Brass is easy to say. The copper mines in Prandall have huge reserves. The currently mined brass is mainly used for the production of tap water pipes, as well as some metal utensils and parts of magic energy machinery. The production capacity is absolutely sufficient.
It ’s easy to say that the dragon blood supply, once the Dixinglong breeding industry has begun, the supply of gold cells can be said to be continuous, and there is no need to worry.
The more troublesome areas are gold, Mithril and Aujin.
Note that the consumption of this formula is calculated in tons!
If Mithril and Aujin could be counted in tons, would they still be rare and expensive magic metals?
Dwarf blacksmiths, alchemists, and other professions are all overwhelming when they use Mithril Aujin!
Recalling Sasha Glott's words, and then thinking about the gold giants in the alien space, Tang En twitched at the corner.
Both Prandall's Mithril and Aujin have been made into Oliha Steel to make the gold giant statue-but of course Tang En will not destroy the body of the gold giant statue again, and reshape it to the giant Dragons produced magic artillery armor, which was undoubtedly picked up sesame seeds and lost watermelons.
Fortunately, Tang En was holding the gold thighs of the gods, Mithril and Aujin were there. Although it was impossible to supply large-scale industrial production, it was no problem to deal with the orders of Sasha Glot. As for the rest, Mithril and Aujin can only be found from other magic metal mines.
Of course, there is another place.
Astral world.
The mineral resources on the planets of the astral world are also very rich. In addition to magical metals, the heavy metal such as gold also exists widely in the astral world.
Mining in the astral world is equivalent to mining in the outer space asteroid belt. Now that Prandall's industrial level has not even broken the atmosphere, how can it have the ability to mine in outer space?
If you use the magic power to take a shortcut to take a shortcut, you can achieve a small amount of mining, but that also requires a stable astral base, and you must convince those magicians who have at least a master level to go to the star Adventures in the work of miners ...
This will not happen unless the power of magic has completely faded out of mystery and become an ordinary power that can be completely popularized.
At present, it seems that the first batch of orders for Sasaglot will be dealt with, and the subsequent production will find a way to find materials.
"gold?"
Fiona frowned: "Are we not enough gold mines?"
"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?"
Tang En's words surprised Fiona, and then he was taken aback: "Don't you think--"
"Yes, I want to recover 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, too many gold coins issued by various dynasties were too complicated, and some of these gold coins were stored in the rich vaults of some rich people, and some of them were still circulating in the market, which is very bad for the healthy development of the economy, so I think What should we do. "
Fiona was a little embarrassed. After a while, she said, "Will it be too reckless to do this? Gold coins have been the currency of Prendall for thousands of years. If you want to carry out currency reform, you will definitely encounter considerable resistance."
"What's the matter, the gold standard economic policy is based on the rare value of gold, but if you look at the current market, do you think gold is rare?"
With a hand from Don, Fiona had nothing to say.
Because he was telling the truth.
Now there are hundreds or thousands of gold coins for any one product. If it were not for the emergence of Star Diamond Bank, I am afraid that even transactions would be a problem-because it is impossible for anyone to go out with so many gold coins all day, it would be overwhelming.
Gold coins have had a lot of disadvantages as a currency. If reform can be carried out, it is indeed beneficial, but if it cannot be reformed smoothly, I am afraid that it will bring about huge hidden dangers.
It is not the currency that is currently issued by the Illus Empire coin, but because the concept of gold = equivalent has been inherited, so the old empire gold coins often have a large reserve in the world and are not fully recovered. Recasting, which led to the current strange circle.
In fact, the existence of Star Diamond Bank has greatly eased the difficulty of gold coin transactions. Large-scale transactions have started to use Star Diamond Bank's bank card for direct credit card settlement. Accounts are calculated within Star Diamond Bank. From a certain perspective In fact, Prendall now has a prototype similar to electronic payment, and electronic payment has not yet been fully realized. Naturally, currency has its existence value.
"Do you only want to recycle old gold coins, or do you want to completely reform the current gold coin currency system?"
Fiona sighed: "If it is the former, I can think of a solution. If it is the latter, I'm afraid you have to discuss it with Princess Aurelia and Queen Olena. The influence is too great and complicated. Things are still a bit unstoppable. "
"Do it all."
Tang En said decisively: "It is not only the recycling of old gold coins, but also the existing currency reform, the abolition of the currency system of gold coins, and the introduction of new currencies."
"New currency?"
"Well, say ... banknotes."
"paper?"
Fiona was even more surprised: "How can paper act as money?"
After thinking about it, Tang En said, "Let me explain it to you, for example, I am the president of the Datang Chamber of Commerce, you are the raw material supplier of the Datang Chamber of Commerce, and now I owe you a million gold coins. I do n’t have gold coins on hand, and I do n’t have a credit card machine at Star Diamond Bank for settlement. Then I write an IOU in the name of the president of Datang Chamber of Commerce. With this IOU, you can exchange value at any store in Datang Chamber of Commerce. Would you like to accept the goods of one million gold coins? "
Fiona said without hesitation: "Of course I do."
"Why would you want to?"
"Because you are the president of the Datang Chamber of Commerce ... Oh! I see!"
Fiona immediately realized: "The currency here means credit!"
"Yes."
Tang En smiled very comfortably: "To expand the scene a little bit, I am the King of the Illus Empire. I 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 gold coins. Do you think business people will choose portable paper money or heavy gold coins? "
"Of course it is paper money," Fiona added, "provided that the merchant is willing to trust the credit of the Emurus."
"Yes, so to issue a new version of the currency, the first thing to solve is the credit problem of the royal family, or more broadly, the economic, political, and military strength of the Illus Empire. Only when it has the strength can it be widely recognized. , The value of the currency issued is more easily accepted by the market. "
Tang En continued: "By issuing a new version of the currency, recycling the redundant gold on the market, and smelting it into materials, it can greatly alleviate the raw material problems of Oliha Steel. At the same time, it can also digest the legacy left over from the former North Korea during the currency exchange gold."
"Do you want to recover those old coins at a discount?"
"That's for sure!"
Tang En said with a look of course: "That was a currency issued in the previous dynasty, how can we recognize it! The reason why they can continue to circulate now is because the object serving as the equivalent is 'gold'. Once the status of gold is re-established from the equivalent, Returning to metal materials, those old gold coins have lost their trading value. Even if they are stored, it does not make sense, and it will inevitably force those people to exchange the gold coins that have been stored in circulation. "
"The most important thing is that in this process of replacing the new currency, we can control the total amount of new currency issuance. Through the replacement process, we can know how much currency is actually issued in the market, and thus macro-control the entire market. "
It is certainly not that simple to carry out currency reform, but Tang En only knows so much about this aspect. He has no idea about more complicated economics and finance. He ca n’t play anything like Treasury securities, etc. I only know that paper money is a reflection of government credit. Now the new government of the Illus Empire, represented by him, has rejuvenated the entire empire. The public support rate has never been higher. In addition, no one in the Datang Chamber of Commerce can match it. The status of the implementation of this new policy can be described as having everything in place, but it is not enough.
Of course, it may be better to implement such a radical policy in a few years, but the problem is that time does not wait for people, Tang En can afford it, the world can't wait ...
Who knows when the Chaos Army will arrive?
Therefore, policies that can promote economic development and promote industrial progress are better promoted as soon as possible.
"But how do you convince people to exchange for 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 the new currency so easily?"
In people's minds, gold coins are equal to gold, equal to something of value. You ask them to exchange gold coins for a kind of paper money, and they are definitely not so easy to accept.
It took a very long time to replace alloy currency with banknotes on the earth. The Chinese Tang and Song dynasties were the earliest banknotes. They existed as an embodiment of the credit of the bank. Later, Australia was the first to completely use banknotes to replace alloy currency This country has spent nearly a thousand years in the middle, and you can imagine how difficult it is.
Fortunately, Tang En really has a solution.