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Chapter 1334 United Savings Bank (Update for Mr. AD¡¯s trumpet leader)

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    Hearing Amber ask whether the small-denomination bank notes were preparing for the establishment of the stock market, Zhao Ran smiled and said: "You can say that, but not entirely. To be honest, this junior has not thought about it that much."

    Amber asked: "Then why are you planning to issue small-denomination banknotes? Is it to prepare for the issuance of treasure 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: "You 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 and small-amount banknotes are still banknotes in essence. The difference is between small and large amounts. 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, no problem, so why don't you issue them?"

    Why doesn¡¯t Four Seasons Bank issue small-denomination banknotes?  The reason is simple: there is no demand.  In other words, no one will use it if it is sent out.

    The biggest role of banknotes is to facilitate exchange.  Businessmen from Yingtian went to Shandong to do business. They asked which bankers had branches in Shandong and opened Tongxing Tongtong banknotes. They paid directly with banknotes when they arrived at the place. There was no need to carry a huge amount of cash with them.

    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 uneconomical for banks to print small-denomination banknotes themselves. The cost of anti-counterfeiting is too high, and ordinary people are not willing to exchange them - they see money as more tangible.

    " If Baochao Company prints 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 it is a small-amount banknote, 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.  And with the joint supervision mechanism of major banks, it will be difficult for the Bank to print small-denomination banknotes indiscriminately.  In Zhao Ran's design, when activating the magic weapon to produce small-value banknotes, there must be authorization from the joint committee. This is a legal and technical authorization, not a document authorization. It is a "hard" authorization and cannot be circumvented.  It's open.

    Amber 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-denomination banknotes and let the people know that you do not need gold, silver or copper coins to buy things. Small-denomination 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 the 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.  In the future, its official name should be 'United Savings Bank'."

    "United 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 small banks purchasing small 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, for how many small banknotes you buy at Baochao, how much interest can you get from this United 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 in Four Seasons Bank had to pay interest to Four Seasons Bank. In the future, whoever deposited silver in Four Seasons Bank will pay interest to 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. Almost after the spring of next year, Baochao Department will start printing the first batch of small-denomination banknotes. This batch of 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, such as 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, come on, Zhiran, let me tell you again, 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 very busy.  After meeting Zhao Ran, he immediately reported the bridge project expenditure.  Explain clearly what you bought and how much money you paid.

    Finally, he said: "Half of the 400,000 taels paid for the charity fund of Xiuxianqiu 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.  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 the purchase price of 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 Baochaosi again: "The only thing that caught my eye among the Baochaosi issued by Baochaosi back then was the papermaking technology. Baochaosi still has 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-value 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 will probably be  The cost is too high, and the gains outweigh the losses. Can the Baochao Department take out the technology and let the private sector do it? The paper used for small-value banknotes can be purchased by the Baochao Department. The preliminary purchase expenditure can be temporarily borrowed from the Ministry of Accounts  , when the United Savings Bank becomes formal, it can be paid from profits"

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