There are four denominations of banknotes, corresponding to one qian (one hundred coins), five qian (five hundred coins), one tael (one string), and ten taels (ten strings).
This kind of denomination design is the result of repeated deliberation. If the face value is less than one penny, you can directly use copper coins. One penny is about four grams. If you carry dozens of copper coins with you, it does not weigh much. And transactions of more than ten guan are not very common among ordinary people.
It is very rare in transactions. Moreover, for ordinary people, many people's deposits will not exceed this amount. Even if it exceeds, it will only be a few dozen coins, three or two.
Li Mu personally conducted a survey and found that 99% of the transactions on the market were for less than one hundred taels.
For one hundred taels, ten pieces of ten taels are enough, which does not affect the convenience of banknote transactions at all.
If the denomination is too large, it will have a negative impact. Imagine that a farmer has saved his whole life and only has fifty taels of savings. He exchanges it for a treasure note and accidentally loses it... For such a family, it is no different.
Hence the disaster.
For large-scale transactions by merchants, there are glass chips that can be used. Furthermore, Li Mu also launched a 'check' function for merchants. Take a check that also has anti-counterfeiting, write the amount, make a secret key, and use
Apply the seal and complete the transfer at the bank. This eliminates the risks that may arise from cash transactions. Of course, checks are not free and need to be purchased, but they are not expensive. A book of twenty checks costs only five taels of silver. Come on.
It is free to go to the bank to handle transfer transactions, and there is no charge. Large transactions are inherently safer after going through the bank.
In fact, for the environment of the early Tang Dynasty, the purchasing power of one tael of silver (conventional money) was very large. Li Mu once compared the purchasing power with the prices of goods in his previous life.
One penny is roughly equivalent to one dollar. A car of silver is equivalent to one thousand yuan. Even in Li Mu's previous life, only a small number of people spent one thousand yuan a day on daily life.
Therefore, there is no problem in using small denominations for the time being. It will be completely late to consider issuing a new version of banknotes when inflation has increased in ten or twenty years.
…
Although the design is very good, it is not easy to promote the bank nationwide.
In order to prevent the Tang Dynasty treasure banknotes from becoming the Ming Dynasty treasure banknotes, the first thing Li Mu had to do was to absorb reserves. Moreover, in order to obtain absolute safety, Li Mu designed the reserves, either based on a certain percentage, elementary, or on a one-to-one basis.
In this way, the flexibility is reduced, but the risk is also smaller.
Li Mu's plan is not small, he hopes to control the power of issuing banknotes through the bank. Naturally, he cannot prepare too little reserve funds. In the early stage, even if he is just running the business of the Ministry of Internal Affairs and the Ministry of Foreign Affairs, he will need at least one million yuan to be able to barely make it.
One million strings, if Wang Ou and Mrs. Lu give their full support, it is not impossible to get it together. But this is not how it is done, let alone raising one million strings, will it arouse Li Shimin's jealousy, even if
Li Shimin was not afraid, and if he put together one million yuan, the bank would not belong to the Tang Dynasty, but to Li Mu's own family. If a family holds the power to issue banknotes in a country, no emperor would allow this to happen.
After much deliberation, Li Mu decided to use the old method of issuing bonds.
The three-year bond, with one cent interest, is jointly guaranteed by the Ministry of Internal Affairs, the Ministry of Foreign Affairs, and the National Treasury. If the money is not paid within three years, the money will be shared by these three companies. Li Mu told Li Shimin about this matter, and attracted
Li Shimin made me laugh. Recently, because I was reading Li Mu’s memorial and there were many things that I didn’t understand, Li Shimin actually found a lot of officials from the Ministry of Household Affairs to supplement their financial knowledge.
When Li Mu said that the interest rate was only one cent, Li Shimin couldn't help but laugh out loud: "With this little interest rate, a fool would lend you money!"
Li Shimin's judgment was not without purpose.
The rules set by Li Mu at that time were that when banks lend money to outsiders, the interest rate starts at 1 cent and the interest is capped at 3 cents. Li Shimin also inquired about it and found that the interest rate of 1.5 cents is usually the most common. A simple logic, when you lend money to outsiders,
, the interest rate is 1.5 cents. Why is it that when you take in a loan, the interest rate is 1.5 cents?
I don’t mean to tell others, you fools, I take in one cent of profit and give out five cents of profit, am I making five cents of you in vain?
Moreover, although there are banks here, the interest rates for private loans have been lowered. In the past, the doubling of interest rates no longer exists, but the private interest rates are still much higher than those of banks. This is because banks only exist in Chang'an, and there are still other places.
It has to rely on private loans.
Nowadays, private lending emphasizes nine taels of silver and thirteen taels of silver. That is to say, you want to borrow ten taels of silver, but only nine taels of silver are given to you. This is not counted. When you repay, you have to pay back thirteen taels. Inside and outside.
That's the difference of four taels.
For those who have money among the people, wouldn't it be nice to earn this price difference? The interest that Li Mu gives for one year can't keep up with others for one month, isn't this just a fool who lends it to him?
"Don't you believe it yet?" Li Mu shrugged and smiled lightly: "Believe it or not, you are just trying to get the upper hand?"
"It's starting again..." Li Shimin smiled helplessly, rolled his eyes and said: "Otherwise, I believe it, but I know about this matter, it's impossible."
Li Mu smiled, but did not hold back, and said: "Your Majesty, I am in heaven and earth tonight, hosting a banquet for the Chang'an business community. If your Majesty doesn't believe it, you can come and join in the fun and see how I make millions of dollars in one night."
"I really need to take a look." Li Shimin had nothing to do with him, so he challenged Li Mu seriously: "Pass the food to us first. After we finish eating, we will go there together to prevent you from resorting to tricks."
Li Mu smiled helplessly and complied with Li Shimin's wishes. He had lunch with him and then took a car together to the heaven and earth.
Li Yourong still looked the same, cold and indifferent as if he was unfamiliar with everyone. When he saw Li Mu and Li Shimin, Li Yourong saluted Li Shimin and just nodded to Li Mu, and Quan took it as a response.
Li Mu was used to it and didn't argue with her. He was about to take advantage of Li Shimin entering the private room to ask Li Yourong if Bai Qiaoqiao had mentioned the marriage to her. Li Yourong had already gone downstairs. Li Mu looked at her back and said,
I thought to myself, let’s change the time and ask carefully.
Li Mu turned around and just entered Li Shimin's private room. Before he could sit down, a boy came over from outside and said, "Master Hou, Mr. Li, the shopkeeper of the Boling Cui Family, would like to see Mr. Hou."
As soon as this boy finished speaking, another boy ran up to him: "Master Hou, the chief steward of Duke Su's Mansion, wants to meet Master Hou alone."
"The great shopkeeper of the Xiao family in Lanling wants to see the Marquis..."
Li Shimin was dumbfounded. Seeing his appearance, Li Mu said, "If your Majesty doesn't believe it, you can wait in the inner room. There is a screen here so they can't see your Majesty. Your Majesty can hear clearly and clear up any doubts."
Li Shimin nodded and hid inside the screen.
"Let Mr. Cui's shopkeeper Li come in first, first come, first served."
The boy responded and went out to report. After a while, shopkeeper Li came in with a smile on his face and said hello to Li Mu.
"The banquet hasn't started yet. I'm going to take a rest here. Why is Mr. Li so anxious? I'll see you later, right?" Li Mu also greeted him with a smile and let him into the hall. He sat down in awe-inspiring manner.
, the conflict between the two has been resolved, there is no need to keep a straight face anymore.
"I heard that the Marquis was in trouble, so I immediately came to help the Marquis." Shopkeeper Li looked enthusiastic and took out a letter from his sleeve. Li Mu took the letter and took a look. The person who wrote the letter
It turned out to be the head of the Cui family. In the letter, the head of the Cui family said that Cui could take out 200,000 guan and deposit it in Datang Bank to exchange it for treasure banknotes. In addition, he could also take out 200,000 guan and buy it.
Li Mu's upcoming bonds. If Li Mu needs it, Cui can help find a way, but he has to give a certain amount of time to raise it.
Li Mu read the letter twice and couldn't help but raise his eyebrows and said: "Master Cui, when did you treat me so well? Does he owe me money?"
"Uh... ahem, that's what happened. The lord heard that the Marquis wanted to borrow a million dollars. How unpleasant would it be to spread the news?" Shopkeeper Li smiled slightly awkwardly and said, "Let's get it together first.
, Cui Shi subscribes for 400,000 yuan, and the Marquis can just pay 300,000 yuan in bonds."
…
Behind the screen, Li Shimin was dumbfounded.
Did Shopkeeper Li get his head stuck with cement when he visited Lantian County?
If you spend 400,000 guan to buy bonds, it will be enough to count as 300,000 guan, but you will give away 100,000 guan in vain?
That's one hundred thousand guan. You must know that the total interest due on this bond will not add up to 100,000 guan.
It's like losing money. Even if you have money, there's no need to waste it so badly, right?
What's more, did the Cui family forget that their direct grandson died at the hands of Li Mu?
In the outer hall, Li Mu generously offered his praise and said: "It's so grand! It's so interesting. We really don't know each other until we fight. We will be good brothers forever!"
"The ancients said that when people are close to vermillion, red is close to ink, and when black is close to black, how can you not learn something from being around the Marquis? The Marquis is all for the country and the country of the Tang Dynasty. We can't be a big help, but we must help with a small help.
"Yes." Shopkeeper Li said solemnly: "Then, is this matter settled? Master Hou, please don't refuse. If you refuse, it will displease the clan master's feelings, and he will no longer be called a friend..."
"I only want friends without money." Li Mu smiled and stuffed the letter back into the envelope, and said to shopkeeper Li: "Thank you for your kindness. I am very grateful. However, this time I can't give Cui so much through the bond issuance."
Nowadays, private lending emphasizes nine taels of silver and thirteen taels of silver. That is to say, you want to borrow ten taels of silver, but only nine taels of silver are given to you. This is not counted. When you repay, you have to pay back thirteen taels. Inside and outside.
That's the difference of four taels.
For those who have money among the people, wouldn't it be nice to earn this price difference? The interest that Li Mu gives for one year can't keep up with others for one month, isn't this just a fool who lends it to him?
"Don't you believe it yet?" Li Mu shrugged and smiled lightly: "Believe it or not, you are just trying to get the upper hand?"
"It's starting again..." Li Shimin smiled helplessly, rolled his eyes and said: "Otherwise, I believe it, but I know about this matter, it's impossible."
Li Mu smiled, but did not hold back, and said: "Your Majesty, I am in heaven and earth tonight, hosting a banquet for the Chang'an business community. If your Majesty doesn't believe it, you can come and join in the fun and see how I make millions of dollars in one night."
"I really need to take a look." Li Shimin had nothing to do with him, so he challenged Li Mu seriously: "Pass the food to us first. After we finish eating, we will go there together to prevent you from resorting to tricks."
Li Mu smiled helplessly and complied with Li Shimin's wishes. He had lunch with him and then took a car together to the heaven and earth.
Li Yourong still looked the same, cold and indifferent as if he was unfamiliar with everyone. When he saw Li Mu and Li Shimin, Li Yourong saluted Li Shimin and just nodded to Li Mu, and Quan took it as a response.
Li Mu was used to it and didn't argue with her. He was about to take advantage of Li Shimin entering the private room to ask Li Yourong if Bai Qiaoqiao had mentioned the marriage to her. Li Yourong had already gone downstairs. Li Mu looked at her back and said,
I thought to myself, let’s change the time and ask carefully.
Li Mu turned around and just entered Li Shimin's private room. Before he could sit down, a boy came over from outside and said, "Master Hou, Mr. Li, the shopkeeper of the Boling Cui Family, would like to see Mr. Hou."
As soon as this boy finished speaking, another boy ran up to him: "Master Hou, the chief steward of Duke Su's Mansion, wants to meet Master Hou alone."
"The great shopkeeper of the Xiao family in Lanling wants to see the Marquis..."
Li Shimin was dumbfounded. Seeing his appearance, Li Mu said, "If your Majesty doesn't believe it, you can wait in the inner room. There is a screen here so they can't see your Majesty. Your Majesty can hear clearly and clear up any doubts."
Li Shimin nodded and hid inside the screen.
"Let Mr. Cui's shopkeeper Li come in first, first come, first served."
The boy responded and went out to report. After a while, shopkeeper Li came in with a smile on his face and said hello to Li Mu.
"The banquet hasn't started yet. I'm going to take a rest here. Why is Mr. Li so anxious? I'll see you later, right?" Li Mu also greeted him with a smile and let him into the hall. He sat down in awe-inspiring manner.
, the conflict between the two has been resolved, there is no need to keep a straight face anymore.
"I heard that the Marquis was in trouble, so I immediately came to help the Marquis." Shopkeeper Li looked enthusiastic and took out a letter from his sleeve. Li Mu took the letter and took a look. The person who wrote the letter
It turned out to be the head of the Cui family. In the letter, the head of the Cui family said that Cui could take out 200,000 guan and deposit it in Datang Bank to exchange it for treasure banknotes. In addition, he could also take out 200,000 guan and buy it.
Li Mu's upcoming bonds. If Li Mu needs it, Cui can help find a way, but he has to give a certain amount of time to raise it.
Li Mu personally conducted a survey and found that 99% of the transactions on the market were for less than one hundred taels.
For one hundred taels, ten pieces of ten taels are enough, which does not affect the convenience of banknote transactions at all.
If the denomination is too large, it will have a negative impact. Imagine that a farmer has saved his whole life and only has fifty taels of savings. He exchanges it for a treasure note and accidentally loses it... For such a family, it is no different.
Hence the disaster.
For large-scale transactions by merchants, there are glass chips that can be used. Furthermore, Li Mu also launched a 'check' function for merchants. Take a check that also has anti-counterfeiting, write the amount, make a secret key, and use
Apply the seal and the transfer can be completed at the bank. This eliminates the possible inconveniences of cash transactions