The Weapon Tycoon Who Traveled to Great Qin

Chapter 2373: The role of silver coins

"Dawan's matter has been handled relatively easily. As long as Qin solves the riots in Dawan and restores order, it will be fine." Meng Yi said to Shang Wen all of a sudden.

"Well. Just leave those things to the police to handle." Shang Wen said to Meng Yi.

"Police force?" Meng Yi asked.

"Yes, the king has agreed that Dawan will establish a police force of a similar size to maintain law and order. They only need to stabilize the situation. The riot has produced a large number of Dawan refugees, and these policemen will move these refugees to new ones. Going to the Dawan country, in this way, we can solve the problem of labor shortage. Moreover, the new Dawan area is in need of a large number of minerals and urgently needs a variety of labor. Therefore, this matter has been decided like this." Shang Wen said to Meng Yi.

"Yeah. That's the best." Meng Yi nodded and said.

"However, in this way, our problem will be very big." Shang Wen shook his head, and said to Meng Yi with a little optimism.

"What's the matter?" Meng Yi asked.

"Is it about the summit?" Meng Yi asked.

"Right." Shang Wen said.

"Economic problems are far more difficult than we thought." Shang Wen said.

"You also know very well that our current situation is that all countries have finally come to peace, and wars have basically been far away from this continent, but all countries are in a state of desperation, and all countries are in urgent need of development, and development requires a lot of funds. But for now Looking at it, our Qin State’s funds may not be able to meet the needs of all countries." Shang Wen said.

"Whether it is for loans or investment, there is a huge demand for funds. In addition to the countries, there is also the State of Qin. It is necessary for Dawan to require a lot of capital investment in construction. Those minerals cannot be completed without capital investment. Yes, there are also railways used for transportation. These conditions must be effectively improved to complete." Shangwen said.

"Yeah." Meng Yi frowned.

"This problem is very big. As far as the funds of the Qin family are concerned, it is indeed difficult to meet such a demand." Meng Yi said.

"And there are many places where funds are needed. We don't seem to have a solution except for issuing banknotes randomly." Meng Yi then said to Shangwen.

"The random issuance of banknotes is very detrimental to us. You must know that the random issuance of banknotes will cause great disasters. You personally oppose the consequences of such disasters. At the same time, I am also wary of doing so." Shang Wen said .

"However, Qin Guo Wenyang Bank has provided a good solution. This solution is to adopt cooperation, or investment between banks, loans and other methods to solve the problem." Shang Wen said.

"Talk about it." Meng Yi said to Shang Wen.

"Their method is like this." Shang Wen said.

"They must first establish banks everywhere, such as local, national, state banks, etc.," Shang Wen said.

"Then use the National Bank or the State Bank to solve the funding problems everywhere." Shang Wen said.

"Those national banks and state banks need to spend a certain amount of activity to invigorate their economic vitality, such as revitalizing assets, etc. They need to use land, gold, and other fixed assets as equity to enter, and Qin State Bank can participate in it. In this case , Even if they are revitalizing their assets. Under such circumstances, the entry of our funds can be appropriately expanded." Shang Wen explained to Wenyang Bank’s approach.

"This method is very good." Meng Yi said.

"I think it works." Meng Yi continued.

"You know, we also lack funds. If we rely solely on us to enter the capital field, I am afraid that ten Qin countries will not be enough. But if we can link countries and regions to revitalize the funds, we don't have to worry about insufficient funds. That’s the case. You must know that if we invest one dollar, it may lead to their ten-dollar capital linkage. With such linkage, our funds will survive. As long as our funds circulate, our problems will not be big." Meng Yi said to Shang Wen.

"Yes, this is indeed the case. With such considerations, I am also very clear about this." Shang Wen said.

"So, I agree with their plan, but I think we should also get more funds from another aspect, such as gold." Shang Wen said.

"If the Qin government adopts the method of buying gold reserves, I think this problem is not very big. Because the paper money exchanged for gold can increase the circulating funds of various countries." Shang Wen said.

"It's just that I'm worried that countries don't have so much gold." Meng Yi said to Shangwen worriedly.

"Although the increase in gold reserves is large, after a certain period of time, gold will drop to a certain degree. If the gold in the hands of various countries is exchanged, I am afraid that there will be no such simple thing." Meng Yi said.

"Unless you can find another way to increase rapidly. You have to know that the demand for funds will only increase in the future." Meng Yi said to Shangwen.

"That's right. That's right." Shang Wen began to think. Or at the beginning, Shang Wen was wrong. Qin State only unilaterally increased gold reserves, but ignored another important currency in history, silver coins, gold and silver are naturally currency. However, in the Qin State, gold and silver were separated. In fact, silver is still an important metal currency, but it was consciously downplayed in the Warring States era when there was more gold. Or too much attention is paid to the monetary value of gold while ignoring the role of silver.

Qin State promoted paper money on a large scale and quickly, although the largest unit of gold has adapted to the development of various countries to some extent. But a unit like Jin is not suitable, because it is equivalent to a unit of one hundred and a half two dollars. In the calculation, the role of half the two is often ignored. The purchasing power of money in the hands of ordinary people is quite large. In this way, the unit of gold is too large, which has certain disadvantages for the society, but this disadvantage has not been exposed.

The existence of silver coins, to some extent, is to replace this currency, or a currency in the transitional zone between the two currencies. Metal currency is of great value, and a large amount of paper money is needed to mark the equivalent symbol. However, the purchasing power of paper money is quite large, and gold coins need a lot of money at once. There is an imbalance between these two demands. If there are silver coins, it may be able to offset this situation.

The role of silver coins in history may be like this, but Shangwen has paid too much attention to gold and directly ignored the role of silver coins. It seems that history has been unable to bypass the role of silver coins.

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