Beiyang reactionaries

The financial crisis, the banking crisis, the biggest worry is that there are exceptions.As soon as one or two exceptions are made within the regulatory envelope, they become the source of the crisis.

Foreign banks must also accept the supervision of the Chinese government.

There is no room for negotiation.

"Prime Minister, if we strengthen the supervision of banks, I am worried that some weak foreign banks will..."

Wang Yongjiang spoke suddenly.But at this point, he paused and said: "Prime Minister, there are many foreign banks that are empty shells. They rely on the name of foreign banks to absorb deposits vigorously. But their own strength is limited, and they can still make money in their current operations. But once we tighten our supervision, they may escape."

"Then what do you mean?"

"Close the door and beat the dog."

401

"Close the door and beat the dog?"

Duan Xun didn't quite understand.

So I watched Wang Yongjiang.Wang Yongjiang immediately said: "Prime Minister, since the Opium War, the gate of our country has been completely opened. Later, China's customs was controlled by the foreign powers, which allowed them to come and go freely at the gate of our country. Foreign businessmen can come and leave whenever they want. The same is true for those funds, which can come and go when they want. Our government agencies don’t have any statistics on these things. This is very bad for the financial stability of our country.”

"kindness."

Of course Duan Xun knew this.

Because Chinese customs have always been controlled by foreign powers, China's national gates are completely defenseless.Those businessmen from the great powers came and left whenever they wanted.

Not only is the Chinese government incapable of controlling customs tariff rates, the Chinese government cannot even collect taxes on foreign goods entering China.Because this is something that the great powers have formulated.

The Chinese government can only listen.

The same goes for funding.

Come and go freely.

Gold and silver flowed in and out of China casually.

Because the Chinese government does not supervise the customs, there is no way to count the entry and exit of goods and funds.The Chinese government can't even make statistics on this, and it doesn't even know the situation of the Chinese economy the best.

"So, what I mean is that financial supervision and strengthening customs supervision need to be carried out at the same time. Customs supervision is especially necessary. The most favorable supervision is carried out for all imported and exported commodities and funds. Funds without normal sources are not allowed to be arbitrarily Leaving China. Therefore, all funds leaving China must explain the source of the funds.”

"Closing the door and beating the dog, closing the door and beating the dog."

Duan Xun understood what Wang Yongjiang meant.

In fact, these are all as they should be, or should have been so long ago.It's just that China has been unable to control customs and finance, so it has been allowed to develop at will.

Now the Chinese government is beginning to control the customs and start to rectify the finance, so it is necessary to supervise the flow of funds at the same time.

"Yes. Prime Minister, at present, he is free to import and export gold and silver in our country. Once there is a slight change in the world economy, or a slight fluctuation in the price of gold and silver in the world, it will immediately affect our country's economy and affect the import and export of gold and silver."

The biggest problem with gold and silver as money is this.

Especially now that although the world economy has not yet reached the point of mutual exchange, the international market has also begun to take shape.Once the price of gold and silver fluctuates, countries like China that use gold and silver as currency will be greatly affected.

"Is customs supervision enough?"

"No, this is at most a precautionary measure. The most important thing is to carry out currency reform. It is not the current situation where gold and silver, silver dollars, and banknotes are mixed, but to completely withdraw gold and silver from exchanges and fully implement banknotes in the country."

"Let the whole country circulate banknotes?"

"Yes."

Wang Yongjiang nodded.

Then he said: "Prime Minister, this is the most important step to truly complete customs supervision. All the money earned by foreign businessmen, including these foreign banks in China, is banknotes. If their funds want to leave China, they will definitely not bring them with them. Take these banknotes. Because these banknotes are useful in our country, but they are useless abroad. At that time, they will have to exchange these banknotes for gold and silver, which are common currencies in the world. And there is only one way for them to exchange gold and silver, That is to exchange it from our Bank of China. At that time, our Bank of China will be able to use these to carry out effective supervision. It can effectively control the flow of funds, especially the import and export of funds.”

"kindness."

"Prime Minister, it's not just these. If our domestic companies want to buy something from abroad, they also need to exchange banknotes for gold and silver, so that the domestic company's capital flow can also be effectively supervised. And now the domestic gold and silver circulation It’s very confusing, and the government can’t grasp it at all. We don’t know how much gold and silver are currently circulating in the country, which is very difficult for the government to supervise the domestic economy in a unified way. But once we ban the circulation of gold and silver and replace them all with banknotes, At that time, we will be able to clearly know how much capital is circulating in the country. We will also be able to more accurately grasp the operation of the Chinese economy. Of course, there is another advantage that after the government exchanges paper money for gold and silver, it can greatly increase the government's foreign exchange reserves .Gold and silver can be purchased abroad for the supplies we want.”

paper money.

The current situation in China is that various currencies are mixed.

Gold can be used, and silver can be used, as well as silver dollars and copper coins.There are banknotes issued by the Bank of China, and banknotes issued by other foreign banks.

Originally, many domestic banks could also issue banknotes, but in the past two years, domestic banks have been prohibited from issuing banknotes, and only the Bank of China can issue banknotes.

Moreover, foreign gold and silver can enter the country at any time, and domestic gold and silver can also flow out at will.

Can't monitor at all.

Therefore, no one has accurate figures on how much gold, how much silver, how many silver dollars, how many copper coins, and how many banknotes are issued in the whole country.Compared with issuing banknotes, it is much better.

Because the banknotes are issued by the Bank of China, the government will know how many banknotes have been issued.

There is also what Wang Yongjiang said, which can greatly increase the government's foreign exchange reserves.As long as there are sufficient gold and silver reserves, the government can purchase needed materials from foreign countries.

Really collect all the gold and silver in the country, in fact, most people don't need to exchange for gold and silver again.As long as there are banknotes, it is enough for domestic use.

Therefore, the government can use a lot of that money.

Therefore, Duan Xun agrees with the issuance of banknotes to completely end the domestic circulation of gold, silver and copper, and it is a very good thing.

"Then we are implementing the gold standard or the silver standard. Which one should we follow?"

"Prime Minister, we think neither the gold standard nor the silver standard is suitable for the domestic situation."

Wang Yongjiang didn't speak, it was Zhang Jiaao who spoke.

Duan Xun looked at Zhang Jiaao.

Zhang Jiaao said: "Prime Minister, the amount of gold in our country is very small at present, and the gold standard cannot meet the funds needed by the current Chinese economy. The silver standard is good, but the world's silver price has fluctuated too much in recent years. Once we implement the silver standard, the value of our banknotes will be reduced." The price volatility will be too large. So we think that a pure gold standard and a silver standard are not very good methods."

"Gold and silver are not acceptable, so where do you want to hang it?"

The current world currency is either linked to gold or silver.

The gold standard and the silver standard are the most common.

"Prime Minister, it is not true that we have abandoned the gold standard and the silver standard. Because the banknotes we issue are still linked to the price of gold and silver, and the Bank of China still needs gold, silver and the foreign exchange we own as the principal to issue currency."

"Be clear."

"Credit currency, legal tender."

Wang Yongjiang answered instead of Zhang Jiaao.