The Way to Make Money!
"The so-called silver notes are paper notes that are different from silver. For example, the currency used in our Great Tang is Kaiyuan Tongbao. Every ten wen weighs one tael, and every wen weighs one coin. One thousand wen weighs six jin and four taels. Of course, Kaiyuan Tongbao could also be exchanged for gold. However, if he had to carry a large amount of money with him, it would definitely be heavy and heavy. Wouldn't that be very inconvenient and easy to be targeted by others, creating a safety risk?”
"But what if there are banknotes to replace so much money? Wouldn't it be easier to carry a banknote worth a thousand wen and keep it on one's body? Wouldn't it be more convenient and safer?”
Li You said with a smile as he looked at Li Shiming and the others.
"That makes sense!"
Li Shi Min and the others 'eyes lit up when they heard his words.
This was because they had already comprehended the essence of it.
Li Shiming urged," Continue. What does this banknote have to do with the bank and interest? And how do we verify the authenticity of the banknote? What if someone fakes it?"”
"Imperial Father, don't be anxious.”Li You shook his head and said," First of all, let me talk about the issue of authenticity. Banknotes must be manufactured by the Imperial Court. It is strictly forbidden for anyone among the people to manufacture them privately. Once we find them, kill them without mercy!"
"Naturally." Li Shi Min nodded.
Since banknotes were equivalent to official silver, whoever dared to forge them would naturally die.
Li You continued," Father, you can set up a silver ticketing system. One or two officials from the capital will be in charge of issuing the banknotes. You can also set up a banknote paper court to eliminate the drawbacks of forgery and strictly enforce the printing process. At the same time, he had to improve the manufacturing technology of the banknotes and add all kinds of anti-counterfeit marks so that those who had the guts to steal would not be able to forge them easily. At the same time, he could also upgrade the banknotes and change the technology. The new banknotes would replace the old banknotes, making it more and more difficult to forge. Of course, this is all for later."
Hearing Li You's words, the more everyone listened, the more surprised they became. So there were so many tricks in it.
Seeing that no one interrupted him, Li You continued,"Now that I'm talking about the banks, the banks naturally have to be established by the Imperial Court. The Imperial Court can set up banks in all the counties of the country. The bank's business could include currency exchange, deposits, and loans. The so-called currency exchange was naturally the exchange of banknotes for silver taels, or silver taels for banknotes. There was no charge for this kind of service. However, we can charge interest for deposit services.”
"The depository hands over the money to the bank, and the bank will fill in the amount of money deposited by the depository on a special receipt before returning it to the depository. At the same time, the bank had to record the information of the depository and the duration of the deposit. When the depository withdrew the money, they would pay the shop owner 30 wen of interest for each string. This was the safekeeping fee. Of course, this is only my initial idea. I can also collect different levels of interest based on the length of time and the amount of money.”
In ancient times, the imperial court would not use the people's money to do business, so money could not produce money. Naturally, it could not give interest to the people like in modern times.
Therefore, the imperial court could only collect interest from the people, which was the safekeeping fee.
"Why would someone put money in a bank?" Li Shimin asked in confusion. When they withdrew the money, they had to pay interest to the bank. Wouldn't they lose money?”
"Father, are you stupid?" Li You shook his head and sighed.
"Try calling me stupid again. Do you really think that I don't dare to beat you up?!”Li Shi Min's face immediately darkened.
Wei Zheng and the others could only bitterly smile. This King Qi truly wasn't afraid of anything.
"Alright, I was wrong. It was just a slip of the tongue.”Li You quickly replied.
He received another wave of negative emotions. As expected, the benefits of talking high were very high!
"Continue!" Li Shi Min said in a deep voice.
Li You cleared his throat and said,"Too much money will easily attract thieves, right?" Even if they didn't have much money, they were still afraid of thieves and robbers. Although the Great Tang is generally peaceful, there are many such incidents among the people. However, what if they deposited the money in the bank? The nature was different. The money house was opened by the imperial court. Anyone who dared to steal or rob a bank would be going against the imperial court. This was a great crime that could be beheaded! In this way, the safety of the place was greatly improved.”
"Secondly, the bills in their hands can only be withdrawn and exchanged by themselves. No one else could extract it. Therefore, it was useless for others to snatch it. Finally, and most importantly, the bills could be used to withdraw money all over the country. Even if something happened to the bank where they deposited their money, it would not affect their withdrawal of money. This meant that the loss of the money house would be borne by the imperial court and had nothing to do with the commoners!”
"That makes sense! I want to see who dares to rob my money house!" Li Shi Min smiled and nodded.
"Your Highness King Qi speaks well, but this old official does not understand one thing. If bills could be used to withdraw money everywhere, then couldn't banknotes be used too? What's the difference?" At this moment, Wei Zheng asked,
Li You laughed and replied," Of course it's different. Banknotes are issued by the Imperial Court on their own initiative, while bills are passive. Only when someone deposits money will they be produced. In other words, each bill was unique. The bill could only be withdrawn by the person who deposited it, but anyone could withdraw the banknote. Therefore, silver notes were not as safe as bills. Does Lord Wei understand what I'm saying?”
"I understand, I understand. No wonder they want to collect interest. This is the imperial court helping them put a safety lock on them!”Wei Zheng replied with a smile.
"That's right!" Li You nodded.
"Hey, hurry up and tell me what the loan is.”Li Shi Min quickly asked.
He had clearly heard Li You say the word loan just now!
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