Vol 2 Chapter 68: , Currency issues

As soon as the meeting was over, Ferdinand summoned the management and asked: "Carl, how much money does the Royal Bank have to use?"
Karl Palace thought about it and said: "Without affecting the normal operation of the bank, we can raise up to 38 million lev!"
Hearing this number, Ferdinand's face sank, and he continued to ask: "What about Union Bank?"
Karl Palace calculated it, and said: "The situation over there is slightly better. Their business is mainly for domestic capitalists. Normally they are money exchange transactions. The funds that can be used are about 50 million lev!"
Ferdinand nodded. This number is not bad. Bulgaria's economy is so large. It is already a good number to have this number!
Ferdinand now misses the credit-based era very much. The government has no money to print tickets to solve it. Inflation is a big deal. Just control one amount!
In terms of the current economic volume of Bulgaria, there is a lack of currency. It is really not a problem to print another one or two billion. It is a pity that 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 them with loans. If possible, pull together with the Bulgarian National Bank!"
Karl hesitated and said, "Grand Duke, now there are too few levs in the market in Bulgaria, and it has begun to hinder economic development.
From 1887 to the present, Bulgaria's economic aggregate has nearly tripled, but our currency aggregate has only increased by 1.7 times!
The Bulgarian National Bank has limited gold reserves and is unable to issue so many funds. Therefore, in addition to Lev, rubles, francs, pounds, and marks are in circulation in our country! "
Carl's words suddenly awakened Ferdinand, patronizing the development of the economy, but ignoring the circulation of money, a large amount of profit was made in vain by the powers!
Having figured this out, Ferdinand decided to change Bulgaria's current currency issuance model! Now I asked: "How much gold do the Royal Bank and Union Bank have?"
Carl thought for a while and said: "The Royal Bank currently has about 7.43 tons of gold in gold reserves. Except for some acquisitions on the market, it is mainly gold mined by gold mining companies under the Royal Bank, which is directly deposited in the bank and not sold. !
Union 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. Together, the two banks will apply to the Bulgarian Ministry of Finance for the right to discover currency!
I plan to set up a separate institution to be responsible for the issuance of Lev. The current National Bank is no longer able to undertake the important task of issuing currency! "
Carl thought for a while and said, "Duke, if this is the case, can we not sell the part of the gold produced by United Mining Corporation?"
Ferdinand nodded. After starting the United Mining Company with Edward, he circled a lot of land. The gold mines that have been mined over the years are already an astronomical number!
If you study carefully, you will find that United Mining Corporation has become one of the largest gold mining companies in the world, and can provide Ferdinand with huge profits of hundreds of thousands of pounds every year!
...
After being aware of the currency crisis, Ferdinand immediately called a cabinet meeting. Fortunately, the funding gap on the market was filled by borrowed funds from the foreign powers.
But immediately it became a big trouble, the territory area has expanded nearly twice, is it necessary to continue to circulate the currencies of other countries?
At that time, you will be embarrassed to find that the mainstream currency in Bulgaria is the British pound and franc, which is funny!
If it happens, the Bulgarian government will not only lose face, but more importantly, the large amount of economic benefits will be grabbed by the foreign powers through the issuance of currency!
The Chancellor of the Exchequer Kennedy said with a wry smile: "Grand Duke, the currency problem not only troubles us, but even Germans and Americans have had a headache for this problem!
In the Civil War decades ago, the U.S. government owed a large loan to Britain and France. The country lacked sufficient gold reserves and was unable to issue sufficient currency. It had to rely on the British. The British also controlled the U.S. economy through loans. !
Later, the Americans found a large number of gold mines in the country, and they obtained enough gold to issue currency.
Especially after the gold of Ariscar was discovered, with enough gold to issue currency, the American economy has achieved rapid development. Now their economic aggregate has exceeded that of the British mainland!
Of course, this data is still imaginary, but at the speed of the US economy, it is doomed to surpass the UK in the not-too-old future! "
Ferdinand was stunned, and there was such an operation!
The Americans even once plagued the economic development because of the lack of gold!
Needless to say, Germany is still short of gold reserves. It is no wonder that William II will fight the British for the Boer problem!
In recent years, German industrial and commercial products have flooded the two Boer republics, with dozens of tons of gold flowing into Germany from South Africa each year.
At this moment, the British beat the Boers, aren't they moving the cheese of William II? Ferdinand remembered that in history, the British seemed to have bought the Germans at a high price, but then they breached the contract!
This is equivalent to only paying a deposit and taking away the goods. The latter part directly announces that the account has been repudiated. Of course, the owner of the Uukanshu www.uukanshu.com product did not agree!
It's no wonder that William II is going to be a great navy. Ordinary people can't bear to meet someone who renounces accounts, let alone Germany! Once the Great Navy Plan came out, the contradictions between Britain and Germany could no longer be solved!
"Then the Ministry of Finance, what is the solution?" Ferdinand asked
Kennedy said with some embarrassment: "The problem of lack of gold reserves cannot be resolved in a moment.
We can buy some from the market, but it is still difficult to solve the problem by this!
However, the Balkan region has always been one of the most important gold producing areas in the world. The history of gold mining has been thousands of years. With the addition of gold production in the newly added territory, it should gradually meet our needs! "
Ferdinand shook his head and said, "It's not that simple. Except for these gold mines that were concealed by the nobles, most of the Sudanese government was mortgaged to the powers!
At that time, we can only pay a sum of gold mining tax. If we want to recover it directly, we will not have to dream! And in time, it's too late!
By the way, how did your Ministry of Finance deal with the issue of currency gold in recent years? "
The Chancellor of the Exchequer Kennedy said with a bitter look: "We are really powerless. The gold used to issue additional currencies was mostly gold products obtained from homes. We directly smelted it and used it as a reserve to issue currency!
Under the current circumstances, we can only rely on the great powers to issue currency by to the pound or franc! "
Ferdinand thought for a while and said: "This problem, your Ministry of Finance will continue to think of ways! Once Lev is really pegged to the pound or franc, our economy will have to be controlled by others!"
After hesitating again and again, Ferdinand still did not propose a joint issuance of currency by the three major domestic banks. This is likely to cause criticism from future generations!