Chapter 48 United Savings Bank (make up for Mr. AD's trumpet leader)
When Amber asked whether small-denomination banknotes were preparing for the creation of a stock market, Zhao Ran smiled and said, "You can say that, but that's not entirely true. To be honest, I don't think much about it."
Amber asked: "Then why are you planning to issue small-denomination banknotes? Are you preparing to issue high-denomination banknotes?"
Zhao Ran asked back: "Has Four Seasons Bank's nationwide state-level distribution completed?"
Amber said: "It was completed last month?"
Zhao Ran asked again: "When will we start setting up points in each county?"
Amber was stunned: "Do we still need to set up points in each county?"
Zhao Ran said: "How can we issue treasure banknotes when we haven't even completed the distribution in each county? Amber, you just said that small-amount banknotes are still banknotes in essence. The difference is between small-amount and large-amount. It has both
It’s not silver or treasure notes, it’s just a certificate of silver deposit, showing how much silver is stored in the bank.”
Amber said: "Since they are small-denomination banknotes, why do they have to be printed by the Baochao Department? For the small-denomination banknotes issued by my Four Seasons Bank, my Four Seasons Bank can print as many as it wants. What does it have to do with the Baochao Department?"
Zhao Ran said: "It's absolutely possible. Of course Four Seasons Bank can issue its own small-denomination banknotes without any problem, so why don't you issue them?"
Why doesn't Four Seasons Bank issue small-denomination banknotes? The reason is simple: there's no demand. In other words, no one will use them if they are issued.
The biggest function of banknotes is to facilitate exchange. Businessmen from Yingtian go to Shandong to do business. They find out which bank has a branch in Shandong, and they go to get a Tongxingtongtong exchange banknote. They can pay directly with banknotes when they get to the place. There is no need to carry it with them.
Bring a huge amount of cash with you.
As for small-amount payments, such as one, two taels of silver, or even a few cents of silver, broken silver is used directly. It is not cost-effective for banks to print small-value banknotes themselves. The cost of anti-counterfeiting is too high, and ordinary people are not willing to exchange them.
-They look at silver more realistically.
If we switch to Baochao Company to print small-denomination banknotes, firstly, the cost will be low, and secondly, with the support of payment products such as flying charms, lottery tickets, periodicals, etc., there will be support for market demand and a certain basis for issuance.
Since they are small-denomination banknotes, there is no over-issuance problem for the time being. Small-denomination banknotes are proof of silver deposits. The major banks must deposit as much silver as they want to issue in the Banknote Department. With the joint supervision of the major banks,
Mechanism, it is difficult for the Baochao Department to print small-denomination banknotes indiscriminately. In Zhao Ran's design, when activating the magic weapon to produce small-denomination banknotes, it must be authorized by the joint committee. This is a Taoist and technical authorization.
, it is not a written authorization, it is a "hard" authorization and cannot be circumvented.
An Bo asked a question: "If Zhiran doesn't plan to issue more small-denomination banknotes, Baochao Company can't make a profit, and the court can't make a profit. What's the point of doing this? Doesn't Zhiran plan to solve the problem of money?
shortage?"
Zhao Ran replied: "There are two purposes. First, to establish the credit of small-value banknotes and let the people know that you don't have to buy gold, silver or copper coins. Small-value banknotes are not waste paper. When everyone gets used to it,
The existence of small-denomination banknotes has laid a social and psychological foundation for the issuance of credit currency."
After a pause, and waiting for Amber to slowly digest it, Zhao Ran continued: "Secondly, when Baochao Company gathers a batch of cash, it will use it as a basis to establish a bank. Of course, the bank is only for ease of understanding.
Name, in the future its official name should be 'United Savings Bank'."
"Union Savings Bank? What do you mean?"
"A bank is an advanced form of a bank - we will discuss this later. The capital of this bank comes from the deposits of major banks purchasing small-denomination banknotes, hence the name United. The bank sets an interest rate every year, which is
The money stored in the bank by major banks pays interest on the savings, hence the name savings bank. The interest rate can fluctuate from 3% to 5%."
Amber thought thoughtfully: "In other words, how much small-denomination banknotes you buy at the Bank of China, how much interest can you get from this joint savings bank every year?"
Zhao Ran nodded: "Amber can try to absorb a large amount of people's savings. In the past, whoever deposited silver with Four Seasons Bank had to pay interest to Four Seasons Bank. In the future, whoever deposited silver with Four Seasons Bank will pay interest to Four Seasons Bank. Four Seasons Bank.
The bank can bring the savings deposits it has absorbed to the banknote department to buy small-denomination banknotes and earn the interest rate difference."
Amber immediately said: "If the interest paid can reach 3% per year, Four Seasons Bank can buy one million taels of small banknotes; if it reaches 4%, buy two million taels! For every one percentage point increase, I will
Buy one million taels more!"
Zhao Ran nodded: "Thank you Amber for your support. After the spring of next year, Baochao Department will start printing the first batch of small-denomination banknotes, and these small-denomination banknotes will first be provided to Four Seasons Bank."
Amber asked: "How do you plan to pay the interest on this money?"
Zhao Ran replied: "There are many ways, including large-scale investment, buying bonds..."
"What are bonds?"
"It is a kind of loan certificate that shows how much money I owe you, how much interest I should pay you every year, and when I will return the principal to you..."
"Come on, let's talk about it again, Zhiran, what exactly is a bank? Why is it said to be an advanced form of a bank..."
After sending Amber away, Zhao Ran found Shi Weiming. Shi Weiming now had two jobs and was extremely busy. After meeting Zhao Ran, he immediately reported the bridge project expenses. What was purchased and how much silver was paid.
, speak clearly.
At the end, he said: "Half of the 400,000 taels paid for the charity fund of the practice ball has been paid, and the rest may not last for three months. The official has calculated that by February next year, 180,000 taels will be paid according to the progress, which will cost
To purchase the refining materials for the bridge piers. In addition, in a few days, we will have to pay the labor time fees of this year’s recruiters, and pay the first installment of purchase money for green bricks and gravel..."
Zhao Ran said: "The charity fund is temporarily out of money. This year's winter competition is a month late. You need to wait until early February next year to get one hundred thousand taels. Let's do this. The five hundred thousand taels of credit issued by Four Seasons Bank can be used. I approve it.
You borrow one hundred thousand taels in advance."
After talking about the bridge, Zhao Ran asked about Baochao Si again: "The only thing that caught my eye among the Baochai issued by Baochai back then was the technology of papermaking. Baochao still has some reservations about this technology.
What?"
Shi Weiming replied: "Yes, the drawings and processes are all recorded, but the workshop has long since disappeared. The last batch of banknotes printed by the Baochao Department was in the third year of Zhengde, and the workshop was cancelled."
Zhao Ran said: "I have thought about the paper used for small-denomination banknotes, and I still think it is better to use the old banknote paper. Listening to what you said, it may be a bit difficult to restore the papermaking workshop, and even if it is restored, it is estimated that
The cost is also too high, and the gain outweighs the loss. Can the Baochao Department take out the technology and let the private sector do it? The paper for small-value banknotes can be purchased by the Baochao Department. The preliminary purchase expenses can be temporarily borrowed from the Ministry of Accounts.
, when the United Savings Bank becomes formal, it can be paid from profits..."