Start 1861: I Just Inherited the Dutch Throne

Chapter 816 The birth of the load-reserve system

Stimulated by Edmund Rothschild, other participants no longer opposed the establishment of a central bank, as William IV expected.

However, on the issue of construction, various disputes have arisen.

The central bank's monetary reform plan, prepared in Wellington, will be presented to the Dutch Parliament in the form of a submission to the Finance Committee this month. Participants in the bill must remain confidential.

After the currency panics of the 1860s, American public anger against bankers soared to such an extent that no member of Congress dared to vote for a proposal that contained Wall Street's taint, regardless of whether those people had paid for their original campaign.

Feedback from the United States has made it necessary for Wellington's central bank plan to become somewhat secretive. After all, the United States has always had a tradition of opposing Americans' opposition to the implementation of a central bank.

It originated from Thomas Jefferson, the third president of the American Republican Party, who opposed the First Bank of the United States plan of Treasury Secretary Alexander Hamilton, the leader of the Federalist Party, and was supported by Vice President James Rothschild.

There was also the seventh president, Andrew Jackson, who successfully defeated Alexander Hamilton's Second Bank plan, when Nicholas Biddle served as the spokesman for James Rothschild in Paris.

Both of these men were effective men in the expansion of the Americas under Edmund Rothschild's father, James. However, even with Hamilton's support, the American plan failed in the end.

Thomas Jefferson and others cracked down on the "investment" of foreign banks, but instead created America's own "independent Treasury system", which should help the United States get rid of the control of financiers.

After all, the above are some kind of tests by the Rothschild family against the United States. The result of the tests is that they all failed in the end.

It was precisely because of these trials that William IV learned a sense of urgency from the United States, so he came up with the idea of ​​​​creating a central bank in the Netherlands. The reason why he brought Emond over was not only to use him to deal with domestic financiers, in addition to asking them to compromise, they also wanted to send a warning to Rothschild.

At this time, Frank, the president of the National Bank of East India, asked: "I don't know, how can our National Financial Commission gain the trust of the people?"

Others immediately looked over.

Yes, the public's recognition worries His Majesty more than their opinions. Perhaps His Majesty has suspended the plan because of this?

Looking forward to seeing William IV.

William IV shook his head, I am free to do whatever I want.

Finally, after several days of discussion, William implemented the prompts and established the final framework.

The proposal to establish the National Central Bank of the Netherlands promises the following:

Article 1, the stock subscribers are organized into a company;

Article 2 enables the subscriber to hold the land as a legal person; this violates the current permanent land management law;

Article 3: Foreign stock subscribers can hold land certificates; this violates the current expatriate management law;

Article 4 transfers land to heirs in a specific order after the death of the land owner; this changes the current inheritance process;

Article 5 makes it impossible for land to be confiscated or repossessed; this violates current land and repossession laws;

Article 6: Transferring private wealth to heirs in a specific order violates the current distribution law;

Article 7: The state grants stock subscribers exclusive and exclusive banking operating rights; this violates current monopoly laws;

Article 8 gives the subscriber the legislative power, which is higher than the laws of the states. For this reason, relevant legislation must be carried out to prevent the central bank from being subject to the legislative bodies of the states; thus these laws can be implemented.

Finally, William IV said: "I believe that the basis for the establishment of the Constitution is that all powers of the Netherlands that are not conferred by the Constitution, nor are the powers that are prevented by the Constitution from being devolved to the provinces, are reserved to the provinces or to the people of each province. Autonomy, especially the set limits of parliamentary power, means that every step beyond it is to occupy an unlimited scope of power, which cannot be explained in any way. In my opinion, the establishment of the bank and the presumed power of this Constitution are not What is vested in the Dutch government by the constitution is exercised by Parliament.”

On September 20, 1880, the Dutch public asked Congress to legislate to prevent events believed to have caused a currency panic from attracting world attention. Therefore, it seemed inevitable that the Netherlands would begin currency reform and became a topic of conversation.

The Dutch National Financial Commission stood up at this time and stated righteously that it would do its best to prevent and control such reforms and set up a special group meeting. The committee's director, Senator Sackem, continues to serve as group leader, as he is the majority whip of the Christian party in the Dutch Senate.

This title is just that in order to avoid the emergence of a "central bank" that would offend the public, William IV and others chose the "Reserve System of the Kingdom of the Netherlands (identified by the U.S. Federal Reserve)". The title makes people mistakenly think that this is not a central bank.

However, those who attended the meeting knew that the Wellington Plan was indeed a central bank plan. It performs the main functions of the central bank. The owners of the bank are private individuals who make profits by holding bank shares and thereby manipulate the Dutch currency and securities.

In a future chapter of Wellington's autobiography, Forbes wrote of this secret meeting:

"How to control the Reserve Bank of the Kingdom of the Netherlands? It must be controlled by Congress. The royal family and the government must attend the bank's board of directors and have complete knowledge of all things in the bank. However, most bank directors will be directly or indirectly elected by the bank's federation. Except, of course, the royal family and government board members.”

In fact, William IV did this only as a last resort.

Seriously, he wants to hold it all in his hands and not give up power to others, but he knows it is impossible. Don't tell him that he is a king. In Europe, the power of the king has been weakened to a low point. Even those with great power need to take into account everything that happens in other European countries. For example, in Sweden now, even the implementation of industrialization requires a population of parliament, and Oscar II was able to carry out it. It is difficult.

The most pitiful thing is that Brazilian Emperor Pedro II is now even more unable to move forward under the constraints of Prime Minister Fonseca.

Therefore, William IV agreed that the proposed Federal Reserve Bank of the Kingdom of the Netherlands will be controlled by the Dutch Parliament and responsible to the royal family and the government, but the vast majority of bank directors will be born from the bank consortium participating today. Of course, in the future, Whether they can continue to maintain their position or replace them depends on their own abilities.

This is the birth of a board of directors.

In the final version of the Wellington Plan, the Dutch Federal Reserve Board will be proposed by the Prime Minister and appointed by the King, but the real functions of the committee will be controlled by the Dutch Federal Reserve Advisory Committee. The members of the Dutch Federal Reserve Advisory Committee will be selected by the chairmen of the 10 Dutch reserve banks and require unanimous approval. Confidential to the public.

I originally wanted to update 5 chapters, but something happened, so I only updated 5 chapters, and I will update the remaining chapters later.