My father is Jiajing

Chapter 363 Central Bank "Ming Lian Reserve"

After Gao Gong finished talking about the taxation plan of the Beijing Special Economic Zone, he began to talk about the characteristics of the Beijing Special Economic Zone Development Bank.

Gao Gong continued, "The Beijing Special District Development Bank is different from ordinary silver and money houses. It is a bank with different characteristics that came into being with the development of the Beijing Special District."

"Therefore, the operation mode of Beijing Special District Development Bank is also very different from that of traditional banks and money houses. Traditional banks only provide one kind of commercial service, which is to withdraw and deposit silver bills. This traditional bank service is also the basis for the survival of many banks and money houses."

"However, due to the high denomination of silver bills, ordinary people simply cannot enjoy the convenience brought by silver banks. Therefore, our Beijing Special District Development Bank has made certain changes on this basis."

"The Beijing Special District Development Bank will issue two types of silver notes. One is a small-value bearer guaranteed-to-be-redeemed note with a face value of one, two, five, ten, twenty, fifty and one hundred coins. This type of note will be like the silver notes of ordinary silver banks and can be exchanged at all the counters of the Beijing Special District Development Bank stores without any fees."

When Gao Gong said this, some people present were confused, some were happy, some were in deep thought, and some were afraid.

Most of these ignorant people had little idea about silver and money, so when it came to the appearance of this guaranteed-to-be-redeemed banknote, they at most thought it was just a small-denomination silver note that was not worthy of being shown on the table, and they were not excited at all.

Those who are delighted are surprised by the convenience of this small-value guaranteed-redeem banknote, as well as the Beijing Special Economic Zone Development Bank's promise of instant exchange and no fees.

You should know that nowadays, as long as you deposit, withdraw or exchange silver notes, these silver banks and money houses will charge a certain percentage of storage fees and interests. For example, if you exchange a silver note of one hundred taels for cash, you may only be able to exchange for more than ninety taels of silver, and the remaining few taels are the profit of the silver bank and money house.

Therefore, most small businesses are very reluctant to use silver bills from large banks and money houses for transactions, because they know that such a transaction method will result in a loss for them.

However, sometimes the cash was so much and so heavy that it was not only unsafe to carry but also inconvenient to hide. Therefore, these small caravans and small businesses that traveled far and wide could only exchange the wealth they obtained from transactions for silver bills from large silver banks and money houses, and then deposit and withdraw them in other places.

Now, Beijing Special Economic Zone Development Bank not only provides small-denomination guaranteed banknotes, but also does not charge any fees, which is a huge benefit for small merchants.

But they soon calmed down, because the current Beijing Special District Development Bank could not achieve the national financial connectivity like the large Shanxi Merchants' Banks and Salt Merchants' Banks with excellent reputations.

Therefore, even if the Beijing Special District Development Bank has such a convenient and just-redeemed banknote, it may only be used within the Beijing Special District. Once you leave the Beijing Special District and go to other places, you still have to exchange it for silver bank notes issued by Shanxi merchants or salt merchants.

So, after being happy, these people also calmed down and thought about how much benefit cost they could save for themselves.

The people who are afraid are the ones who are currently in charge of the Shanxi merchants or salt merchants' silver banks in Beijing. They have been dealing with silver and money for a long time, and their financial sensitivity is much stronger than that of ordinary people.

Now listening to Gao Gong's words, it seems that the Beijing Special District Development Bank did not directly compete with them for business, but if you think about it carefully, if the Beijing Special District Development Bank really makes these small businesses that they don't fancy, then the impact on them will be huge. You know, the outer city of the capital is a big city with 600,000 to 700,000 people, and because this place is an important place in the capital, the caravans and passengers coming and going are far more than other cities.

Therefore, if the Beijing Special District Development Bank succeeds in making this small business a success, then the largest silver bank in the world will belong to the Beijing Special District Development Bank that has just opened.

By then, perhaps even big banks like them will be forced to join in issuing this kind of small-denomination guaranteed banknotes. If they don't join, they may not even be able to do business.

However, will Zhu Zaigui allow them to also have the right to issue small-denomination bearer guaranteed banknotes?
Obviously this is impossible.

According to Zhu Zaigui's idea and logic, this big business maintained by Shanxi merchants and salt merchants should not even have the power to issue silver bills.

You must know that the right to issue currency is the economic lifeline of a modern country.

If the Ming Dynasty still maintained a relatively stable and backward small peasant economy, the imperial court would have killed them countless times for their behavior.

Therefore, they are still thinking about issuing small-denomination guaranteed banknotes like the Beijing Special Economic Zone Development Bank, which is simply wishful thinking!
Because Zhu Zaigui had already dug a cesspool on this road. If they dared to start a business, Zhu Zaigui would definitely make them regret being born into this world.

You have to know that Zhu Zaigui now has a professional banknote-making team poached from the Ministry of Revenue. Although the level of these people cannot be said to be the best, they are at least the most capable banknote-making team in the world today.

If they took the initiative to forge banknotes, Zhu Zaigui would definitely kill those Shanxi merchants and salt merchants' banks that dared to follow suit and issue small-denomination banknotes!
Of course, Zhu Zaigui had considered directly using the court's legislation to take over the rights to print and issue banknotes under the name of his own Beijing Special District Development Bank, but this path was too difficult to take.

Because these powerful Shanxi merchants and salt merchants have complex networks of relationships.

If Zhu Zaigui had revealed his intention to monopolize the entire industry before the Beijing Special District Development Bank had achieved any results, then his Beijing Special District Development Bank would definitely not have been able to succeed.

Therefore, what Zhu Zaigui has to do now is to transform the Beijing Special District Development Bank into a catfish that stirs up the rivers, lakes and seas, and then he will add fuel to the flames behind the scenes until all the large Shanxi merchants' silver houses and salt merchants' silver houses also get involved and copy the Beijing Special District Development Bank's small-denomination guaranteed banknotes, making the market a mess.

Zhu Zaigui could take advantage of the righteousness of the court and directly wipe them out, forcing them to only retain their original deposit and withdrawal businesses and be forced to become "subordinate" banks of the Beijing Special District Development Bank. The Beijing Special District Development Bank could then transform itself into a veritable central bank, "Ming Liansuo".

In this way, Zhu Zaigui was truly invincible and reshaped the industry, allowing these traditional silver and money houses to evolve into modern commercial banks.

(End of this chapter)