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Chapter 827 The Tang Dynasty who borrowed money to survive

Li Xuan had long thought about large-scale public issuance of national debt, but it had always been impossible to do so due to various restrictions. On the one hand, it was the opposition from the courtiers, who said that such a dignified court could not borrow money.

If you don't have enough money to spend, just ask the businessmen all over the world to donate. The worst thing you can do is copy it from a few more places.

To put it bluntly, the ministers these days have no idea of ​​borrowing money from the people of the world, because in their view, the whole world belongs to your Majesty. The whole world belongs to your Majesty, and the money owned by the people of the world naturally belongs to your Majesty.

of.

Your Majesty wants money, do you need to borrow it? Just take it!

Another very important reason is that the credibility of the Tang Dynasty is not enough. To put it bluntly, people in the world do not trust the Tang Dynasty to repay the money they borrowed.

There are many factors here. In addition to the traditional fear of the official court and reluctance to deal with it, there is also the fact that the Tang Dynasty was just one party before. Who knows when it will be wiped out by the Ming Dynasty. When the Tang Dynasty

The dynasty is finished, and the money they lent to the Tang Dynasty will naturally be wasted. Do you still expect the Ming Dynasty to recognize these debts and help pay them back?

Just kidding!

The combination of many willingness led to Li Xuan wanting to issue national bonds for a long time, but it never happened. In the end, he tried to issue national bonds using official salaries as a breakthrough.

However, the issuance of government bonds for official salaries is compulsory. If officials had a choice, few would be willing to do so.

It’s still real money!

But these are all in the past. Li Xuan felt that the Tang Dynasty had already captured Jiangnan, and judging from the reactions of people all over the world, many people were very optimistic about the Tang Dynasty. They changed their previous negative views and began to

Actively moving closer to the Tang Dynasty is a very important prerequisite, which shows that people already have confidence in the Tang Dynasty.

In addition to the issue of credibility, in recent years, the Tang Dynasty has stopped borrowing food and looting, and the official has always refused to admit it, and even tried to cover up these stains in the early years.

They will all try to beautify the history of the Tang Dynasty.

Now, if anyone dares to talk about the dark history of the early years of the Tang Dynasty, he will definitely be severely punished.

After working hard for so many years, the credibility of the Tang Dynasty has gradually improved. Especially when the military purchases materials directly from the private sector, they basically do not pay any IOUs. They always buy with real money and silver, and do their best to do so.

It did not disturb the people, and this made the people's favor towards the Tang Dynasty rapidly increase.

In addition, the problem of distribution channels was also solved with the establishment of the Royal Bank and the opening of countless outlets in many provinces.

Nowadays, the Royal Bank is truly the number one enterprise in the Tang Dynasty. It has opened branches in almost every county and its tentacles cover all the areas ruled by the Tang Dynasty.

Its various assets have exceeded five million!

This is only talking about the Royal Bank's own assets, and the various deposits managed by the Royal Bank exceed 70 million taels, and are still increasing rapidly.

These gold and silver reserves mainly come from the central treasury silver and local government silver deposits. Basically, the silver from the national treasury and local finances is deposited in the Royal Bank, and all kinds of expenditures are spent through the Royal Bank.

Then there is a large part that is the deposits of merchants. For the convenience of doing business, these merchants often choose to deposit large amounts of silver and then use checks in daily transactions.

After merchants receive the check, they often do not withdraw cash, but transfer it directly to their own accounts.

As long as merchants have this need, they will more or less deposit a sum of money in the Royal Bank in the end, because they have no other choice but the Royal Bank.

Coupled with the silver deposits of some ordinary people, the gold and silver reserves collected in the Royal Bank are quite large.

In the actual circulation area, the bank notes, checks, cashier's notes and other types of bills currently issued by the Royal Bank are widely used in industry, commerce, and bulk transactions. What does this mean:

This means that after merchants deposit gold and silver, they will not withdraw it without any major accidents. Instead, they will use banknotes, checks and other instruments for transactions.

In other words, these real money has always been in the hands of the Royal Bank!

Using these gold and silver reserves, the currency issuing agency within the Royal Bank has long wanted to over-issue banknotes. However, this kind of thing was suppressed by Li Xuanyi. If this kind of thing is done well, there will be quite a lot of them at once.

Tens of millions of taels of silver, but the currency will also depreciate rapidly, resulting in a decrease in the purchasing power of banknotes.

At the same time, the Ministry of Taxation has noticed this phenomenon and has begun to regulate the issuance of banknotes by the Royal Bank. The simplest of them is that the banknotes of the Royal Bank, although they still bear the name of the Royal Bank, are considered

A kind of internal bank note, but actually printed and issued by the Ministry of Taxation and the Mint.

At the same time, the Ministry of Taxation is already preparing to establish a Ministry of Taxation Bank, for no other reason than for financial supervision and currency issuance, so as to prevent the Royal Bank from managing itself and then collapsing.

Let a commercial bank be in charge of commercial business, currency issuance, and financial supervision. It is easy to get out of hand.

In particular, banknotes and checks issued by the Royal Bank have become the main means of payment in many fields, especially in the commercial field. This means that in the circulation field, the banknotes of the Royal Bank have already occupied a leading position.

It has a very important position and must be guarded against!

Not to mention anything else, even now the salaries of officials and soldiers at all levels are based on the payment system of silver notes. After the officials take the silver notes, if they need real money, they need to go to the Royal Bank to withdraw the real money.

Gold and silver, but this kind of advance is basically unnecessary, because you can spend it directly with a banknote!

The issuance of bank notes has caused the Royal Bank to have too much influence. Even Li Xuan wants to control and supervise the Royal Bank to a certain extent. In addition, he also wants the tax department to issue certain policies to correctly guide other people.

The development of private banks.

In the Datang Dynasty, although other private banks were not eliminated, due to the high deposit guarantee system and various perfect systems, the barriers to entry were greatly raised. Therefore, there are currently not many private banks in the Datang Dynasty.

There are only more than twenty companies that have obtained business manufacturing, and the numerous old-style financial institutions such as banks have basically disappeared in the long history, either changing industries, or being acquired or merged.

However, these banks are generally small in scale and are mainly regional banks. Such banks have limited business capabilities and poor credibility, so they cannot compete with the Royal Bank at all.

Royal Bank's profitability is very strong by using deposits to lend, charging various handling fees such as transfers and cash withdrawals. However, although the profits are large, they cannot support Royal Bank's expansion and investment in opening new branches.

Li Xuan originally thought about directly using the Royal Bank's deposits, but he also knew that this was a last resort and must not be used lightly. Otherwise, the financial system of the Tang Dynasty could easily collapse.

But to be honest, he was itching to see so much money unusable, and this national debt was Li Xuan's attempt.

Although the issuance of treasury bonds is a public issuance, this time the issuance of treasury bonds is not to individuals, but to various institutions, mainly the Royal Bank and more than 20 other private banks, as well as some enterprises.

The bank invests the huge deposits collected in government bonds, earns interest, and makes money!

The finance department gets the money and pays the interest, it's that simple.

Although it seems that it still feels like directly using the deposits in the bank, it is actually not the same.

Li Xuan wants to issue national bonds, and the tax department is naturally the happiest, because this means that the pressure on the tax department will be much less. Now the Tang Dynasty has so many places to use money, and who can the Tang Dynasty use money to?

Get it? Contact the tax department!

After private discussions between the tax department and the Royal Bank, they felt that it should not go too far at the beginning, and the amount should not be too large to avoid causing turmoil. At the same time, twenty other banks should be attracted to participate, and the interest rate should be slightly higher.

So after the negotiation, the Ministry of Taxation decided that the first phase of the national debt has two types of maturity: three-year and five-year. After maturity, the principal and interest will be paid in one go. The interest rate is set relatively high. The three-year bond is 7%, and the five-year bond is 7%.

The period is 7.5 cents.

Because this is the first issuance, the scale will not be too large. The first installment is set at five million taels. The people from the Royal Bank angrily said that their family can make it all, but the tax department will definitely not do this!

In the end, only four million taels of silver were given to the Royal Bank, and the remaining one million was given to more than two dozen other banks.

However, the sales situation is not very satisfactory. The Royal Bank is originally a royal industry. As a policy bank, it is duty-bound to support the finance. However, ordinary private banks have to consider risks, so although there are some twists and turns, after all

There are more than two dozen banks, and one bank can buy tens of thousands of taels of treasury bonds at will, and it can guarantee the limit of one million.

After getting the five million taels of silver, the people in the tax department still couldn't believe it. The money came so easily!

He immediately found Li Xuan, how about we issue another national bond worth tens of millions of taels, but Li Xuan said, "Who will you sell to after issuing it?"

Even if they are all sold, how will your tax department prepare to repay it then?

Nowadays, Datang cannot make ends meet every year, and to put it mildly, it relies on borrowing money to survive.

Now we owe a total of more than 13 million taels of official salary that has been converted into national debt. In addition, we already owed a loan of 3 million taels to the Royal Bank. Now we have added another 5 million taels of national debt. This is all considered.

After that, the debt exceeded 20 million, and the interest was nearly 2 million every year!

If we continue to borrow this money, do we plan to use all the fiscal revenue to pay interest in the future?

So after the issuance of the first tranche of treasury bonds, Li Xuan simply rejected the idea of ​​the tax department continuing to issue treasury bonds. He just collected taxes honestly and issued tens of millions of treasury bonds. It was really money from the bank that he didn’t have to pay back!

Even if the money in the bank does not need to be repaid, the money in the bank is not blown by the strong wind. It is the deposits of the people. The people can't get back their hard-earned money. Real people dare not call out "Wang Xiangjiang Hou Ning".

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