Chapter 637 Preparing Banknotes
"Things have priorities, no rush, no rush."
"When the shipyards in Hanma City and Lukang are built and enough warships and cargo ships are produced, we can go south to look for gold."
Frederick finally comforted Maria and Susan.
Hundreds of tons of gold are enough to drive people crazy. News spread among the senior officials of the Wesson Principality, and many people openly and secretly asked Frederick about when to take action.
The 2nd Division and the newly formed 4th Division that stayed in the Principality of Wesson began to gear up to compete for the qualifications to grow from the gold mine.
Frederick had to emphasize repeatedly at the Supreme Council of Ministers that the matter could not be rushed.
At present, the maritime power of the Principality of Wesson is mainly used for the logistics transportation of the Western Front Corps in the inland sea and cannot be used.
Moreover, after the Flying Tulip was converted to propeller drive, the keel had some problems due to stress, and it was ready to come back for overhaul, or even decommissioning.
At present, the development direction of sea-going ships will be 500-ton steel keel wooden hull ships, specializing in one model, and developing cargo ships, passenger ships and warships on this basis.
With insufficient technical foundation, we can only continue to trial and error and improve.
The most important thing at the moment is naturally the issuance of banknotes to alleviate the shortage of precious metals and the layout of the Bohemian region.
Giovanni now concurrently serves as the president of Wesson Bank and the deputy minister of postal affairs of the Rhine Union. He spends half of his time managing Wesson Bank and the other half of his time extending Wesson Bank's tentacles to all directions with the help of the Rhine Union postal system.
If Frederick wanted to issue banknotes, he must first reach a consensus with him, otherwise problems in implementation would be disastrous.
Giovanni nodded after hearing Frederick's plan to issue banknotes and said: "Now not only large-scale transactions, but also small transactions among citizens have begun to reduce the use of metal currency."
"Bearer money orders are used for large transactions, and even stamps are used for small transactions."
Frederick could understand that metal currency was too heavy, not to mention that when he traveled through time, he didn't even carry banknotes with him. He only had to carry a mobile phone in his pocket. Banknotes were only used to give red envelopes for red and white events and to send red envelopes to juniors during the New Year. .
At present, Frederick's biggest headache is whether to adopt the gold coin standard or the gold nugget standard when issuing banknotes.
Although both are gold standards, there are differences between the gold coin standard and the gold nugget standard.
Under the gold coin standard system, gold coins still circulate in accordance with the law, and banknotes circulate as auxiliary coins at the same time as gold coins, and can be freely exchanged for gold coins according to their face value.
This ensures that the nominal value of banknotes is consistent with the actual value, and that the domestic value is consistent with the international value, which is conducive to people's acceptance of banknotes and the development of domestic economy and international trade.
The gold nugget standard system means that gold coins are no longer in circulation in the country, and only banknotes linked to a certain gold content are issued. There is a minimum amount limit on the exchange of banknotes for gold nuggets. For example, a minimum of 10 kilograms of gold can be exchanged at a time.
The gold nugget standard can "save gold", avoid a large outflow of reserve gold while ensuring that banknotes are linked to gold, and can also solve the consumption caused by natural wear and malicious wear of gold coins.
At the national level, Frederick agreed with the gold nugget standard, which could effectively control the domestic gold circulation and alleviate the pressure on gold supply.
But Giovanni considered it from the user level. Suddenly abolishing gold coins and replacing them with paper money would cause economic turmoil, and maybe something would happen.
Sometimes the solution to political problems is a process of compromise between all parties, and each side can only take one step back on this issue.
In the end, Frederick and Giovanni decided after discussion to implement the gold coin standard first in principle, and then gradually adjust to the gold nugget standard based on the reflected situation.
Next, there is another question. There are three precious metals used as currency: gold, silver and copper, and the exchange rates between them are dynamic.
So whether the corresponding banknotes only use gold, or different metal currencies correspond to different banknotes, the convergence between banknotes also changes at any time.
After thinking for a while, Giovanni said: "I think it is best to exchange only for gold. The life of paper money is credit. If it changes frequently in the early stage, it will reduce trust."
Frederick nodded, but a new question arose.
If we use florin gold coins as the unit, assuming that buying 1 ton of wheat requires a banknote of 1 florin, then citizens have to use 0.0005 florin banknotes to buy half a kilogram of wheat. People always add 0 to the back of their banknotes, but not to the front.
If you set the 100% mode, there will be update problems.
Now, 1 gold florin coin = 20 silver Kreuz coins = 2,000 copper plates. The ratio between gold coins and silver coins is 1:20, and the ratio between silver coins and copper plates is 1:100. There are also smaller copper plates and copper plates on the market.
If we want to set up yuan and jiao cents, which yuan should be used and how to exchange them with each other.
Frederick and Giovanni discussed for a long time but could not get the point and could only conduct an investigation on private consumption.
The Supreme Council of Ministers established the "Currency Usage Investigation Committee", which is to investigate issues such as currency wear, edge trimming, counterfeit currency, etc. that occur in transactions. Through the survey form, we can learn about the use of currency by different levels of consumer groups.
Many households in cities and towns have the habit of keeping accounts, and the Supreme Council of Ministers conducts statistics on residents' account books on the grounds of investigating people's living standards.
At the same time, Frederick spread the news again, claiming that he was inspired by the Meyer couple's recent incident of a hundred thousand pounds bill of exchange, and planned to relax the restrictions on low-denomination bearer financial instruments for daily consumption.
While Frederick was waiting for the results of the investigation to be used as a basis for policy, someone took the next step ahead of him.
Psyche placed a stack of bills and a machine on his desk.
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"Exhibition of banknote anti-counterfeiting technology and banknote counting machine." Psyche said, "Just take a look."
Frederick was not surprised by the anti-counterfeiting of banknotes, because money orders use related technologies. Whether it is paper made of cotton, watermarks, colored fibers, glued security threads or engraving and gravure printing, they are all relatively mature. At present, more inks are needed. Work hard.
The problem is the money counter. I didn’t expect to have a sample so soon.
This banknote counting machine is powered by a hand crank and has a somewhat complicated structure. A stack of banknotes is put in. When it rotates, there are five finger-thick rollers with vertical stripes on the large turntable that will remove the banknotes one by one. After clicking, the stripes of the roller will be caught by the convex teeth on the base plate pressed by the spring, and then the reading can be taken.
Psyche said: "This money counting machine is used by factories and schools to count meal tickets. The prototype is a machine used by paper mills to count the number of sheets of paper. However, it can only count the number of sheets and cannot distinguish the authenticity."
Frederick nodded and said: "This is enough."
After he finished speaking, he picked up the colorful banknotes and his face suddenly turned dark.
The pattern on the front of the banknote is very similar to that of his hometown. The right side is his front face, and the left margin is the location of the watermark. The lines on it are extremely thin and complex, exceeding the existing money orders, and can even achieve four-color overprinting.
The problem is that the pattern on the back is "Archduke Wesson (second from left) taking a photo with the top three in the competition", and there is an extra pig on the far left, with Frederick right in the middle.
Frederick asked: "Why use this pattern?"
Psyche replied seriously: "Five pig coins."
Frederick thought for a while, frowned and said: "Is it appropriate to use Chinese homophonic memes in this world?"
Psyche did not answer the question and asked: "Have you ever thought about the name under which banknotes are issued?"
"It's definitely not possible to say it's currency directly. Let's wait for it to be run."
Frederick shrugged and said: "Then issue it in the name of the bearer interest-free bonds of the Principality of Wesson, which can be used to pay taxes, deposit, pay fines, exchange for gold at Wesson Bank, etc."
"Well, when the time comes, I can first find a factory in which I hold shares to try it out and build momentum."
"By the way, let's find some more money to exchange for gold."
(End of chapter)