The Crescent of the Sultan

"Dear Abraham, you mean to mint a new coin, no problem, I will leave it to the Mint to solve it.

Selim said slightly casually, no matter who was more anxious, Selim was really not afraid.

Anyway, in the original time and space, the Ottoman Empire had survived for more than a hundred years relying on such a waste financial system, so what was he anxious about?

Moreover, considering the urinary nature of the Jews, it was unbearable for God to not make money even if they had money. Selim did not believe that Abraham, who was also a Jew, could endure it.

As expected, as soon as Selim finished speaking, Abraham hurriedly said: "Your Majesty, the reason why the empire has fallen into this situation today cannot be solved by the Mint casting a new coin."

"Then dear Abraham, what do you think is a good way to solve this problem?"

Looking at Sultan's smile, Abraham felt that the other party seemed to have understood his thoughts for some reason, and he decided not to hide it anymore.

"Your Majesty, I believe that if the empire wants to rebuild its financial system, it must rely on the help of the Royal Bank of the Ottoman Empire. Only by having the right to issue currency can the Royal Bank repel foreign currencies and create circulation space for its own currency.

But a single mint cannot do this. Only with the help of banks can good coins drive out bad coins. Otherwise, the opposite result will only occur, just like Emperor Diocletian of Rome. "

After listening to Abraham's words, Selim felt a little like a fool.

"No, even if you want to convince me, don't give random examples." Selim complained in his mind while thinking about Rome's economic collapse.

In fact, during Diocletian's time, the entire Roman Empire's production, transportation, and sales system had been completely paralyzed.

Therefore, the new coins issued by Diocletian ended up being driven out by bad coins, causing his efforts to save the currency to fail.

In this case, in 301, Diocletian established the law of limiting maximum prices (the Price Edict of 301).

The law, which limited prices to fixed locations, applied to thousands of goods and wages, and punished merchants with the death penalty for violations. However, the official prices it stipulated were far lower than the cost of products and services, unable to stop the worsening of inflation, and ultimately became a dead letter.

With the failure of price control, Diocletian could only rely on the rationing system to completely isolate the supply of materials for the army and government from the market. He ensured the needs of the army and government by levying physical taxes, while leaving ordinary people to fend for themselves in inflation. .

So, fortunately, the Ottoman financial system is in ruins, but its resilience is pretty good. In addition, the Ottoman Empire has not yet reached the point of super inflation.

"It can still be saved, it can still be saved." Selim comforted himself and asked: "In that case, Abraham must have a complete plan, let's talk about it."

Hearing the Sultan's words, Abraham was very excited. He quickly said: "Your Majesty, I have designed a perfect plan for you and your empire with reference to the currencies of the British, Spanish, French and ancient Rome.

The first is the selection of currency raw materials. According to the centuries-old tradition of the empire, I think the most appropriate method is to then use a combination of gold coins, silver coins, and copper coins.

But considering that the mineral deposits in the empire are not sufficient, I suggest that in the future, Your Majesty, you may have to switch to banknotes, just like the Bank of England notes issued by the British. On the surface, it looks like just a receipt, but in fact it can be used as a small-scale currency. . "

Good guy, Selim said in his heart, good guy, where are you now? This old guy has already put his idea into banknotes.

Complaints are complaints, and the next reforms must be listened to. After all, Selim is not really the almighty sultan.

For finance, we still have to rely on these Jews until we can train outstanding financial talents of our own nation.

"Then in terms of currency value, considering that the currencies of France and Germany have been in a state of chaos for a long time, the quality of coins minted by kings, monarchs, and states of various generations are unstable, and the exchange rates in various countries and cities are also different. phenomenon, and is greatly affected by the price ratio of gold, silver and copper.

Therefore, I think the United Kingdom is the most worthy of learning in this regard. Your Majesty, please take a look.

The first is the gold coin: royal rose, 1 royal rose = 2 pounds = 40 shillings, monarch, 1 monarch = 1.5 pounds = 30 shillings, guinea, 1 guinea = 1.05 pounds = 21 shillings, originally made of Guinea gold Cast, hence the name.

Next is the silver coin: pound, 1 pound = 20 shillings. Initially, one pound was equal to one pound of silver, hence the name. However, it is only a monetary unit for taxation. People do not use such a large payment method for daily transactions, so there is no specific currency. Only later did gold coins be minted.

Other silver coins are half pounds, that is, 0.5 pounds or 10 shillings, crown, 1 crown = 5 shillings florin, 1 florin = 2 shillings, shilling, 1 shilling = 20 pence, four pence, dwarf equal to 2 pennies

Finally, there are the copper coins: pennies, halfpence, quarterpenny.

I don’t know what your Majesty thinks. "

Listening to Abraham's report, Selim became more and more confused. What the hell, why is a country's currency so complicated?

"Dear Abraham, would it be too complicated if the empire did the same?" Selim asked in confusion.

"Your Majesty, I think it is very important to set up these currencies. Because the development levels of different regions of the empire are different, the requirements for currency are naturally different. For example, in Constantiniya, merchants prefer gold coins because they are suitable for Portable and convenient for bulk trade.

But in the Caucasus, Arabia, and Bosnia, gold coins do not meet their needs, so the issuance of auxiliary coins is necessary.

Of course, what I say may not fully explain the doubts in His Majesty's heart. Perhaps you can go to various parts of the empire in person to see the local currency requirements. "

Selim was already numb at this time. To be honest, it was not that he could not understand the complexity of currency in this era. His rejection came more from the habits of his previous life.

"Okay, Abraham, you figure it out."

"Your Majesty, there is one more thing. You haven't named the empire's future currency yet." Abraham pretended to be calm and said. He never thought that it would be so easy to obtain the right to issue currency from the Sultan.

"The gold coin is called Osman, the silver coin is called Akche, and the copper coin is called Lira." After saying this, Selim added: "But, Abraham, you have to remember that every coinage plan must be It must be submitted to the imperial government and me for approval. You are not allowed to mint coins privately without permission. I think you should know the consequences of violating it."

"Also, this is your second son." Selim pointed to Jacob, who had been ignored for a long time, and asked casually.

"This is indeed my child. I don't know how Jacob has offended Your Majesty. I will punish him severely."

Abraham had not yet recovered from the disappointment caused by the Sultan's warning, and when he heard his son being called by the Sultan, he suddenly trembled with fright.

"A very smart young man. He should be given more opportunities to hone his skills."

Putting these words aside, Selim left without looking back. As for what the two people in the room thought, he didn't bother to care.

The seeds have been planted, just waiting to sprout later.

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