C726 National debt in circulation (1/2)

They still could not understand a lot of things. As the first telegraph line in the Great Qing Province gradually started to operate, the information from the north and south started to flow more quickly.

The telegraph line s were all laid to be used once they were built. Although the first phase of the project was to head from the north to the south of the capital to Shanghai, it was not completely finished before being used.

For example, when the line from Shanghai to Nanjing was completed, the Ministry of Communications had already begun providing telegraphic services. The information transmission from the north to the south of the empire could already use telegraph services intermittently.

It was precisely because of the latest communication network that the Beijing was able to quickly understand everything that had happened in the south. For example, the Letian Firm had just held a large silver coin parade in the Beijing, and then began issuing something called a national debt in Shanghai, Suhang, Nanjing and other places.

According to the Military Ticket's printing procedures, he produced a batch of small denomination national debt. The smallest denomination was a Dragon-striated Silver Coin, which was commonly known as a round coin, and then twenty, fifty and a hundred circles, for a total of four types of denomination.

The small sized national debt was issued to the public and they had promised to pay a high interest of 30% within three years. After three years, they would be able to exchange their bills to one hundred and thirty Dragon-striated Silver Coin s in the Letian Bank.

Not only did they receive a high interest, the Letian Bank had also promised that all merchants who held national debt or had Ryukyu s in trade with Letian Bank s, foreign banks and Ryukyu Kingdom s would be able to enjoy a 3% tax break.

The discerning people had already seen through, wasn't Letian Bank going to release the first credit currency in East Asia? Accept the national debt, then kidnap the national credit for banknote issue.

This is a game of credit, Great Qing can't help but admit to Great Qing's debt, since my Letian Firm has accepted it, then the local daoyin is equivalent to owing my Letian Firm money, I don't want you to pay me back the debt with taxes, okay? In any case, the economic trade between the Letian Firm and Jiangnan region was very close, and the tax revenue that came out every year was more than a few million silver taels.

Letian Firm had a very high credit in Jiangnan, so no one believed that she would not be able to afford to pay the six million silver. Furthermore, Great Qing had used taxes to guarantee that she would be able to pay it all back.

A 30% profit without risk, this was a transaction for every book. Not only did he not recognize anyone, but he also guaranteed the liquidity of the bonds. If he were suddenly short on money, he could easily turn these bonds into cash.

Furthermore, trading with bonds or Military Ticket would give 3% tax relief, which made even more merchants willing to accept this kind of paper. When the commoners saw that this thin paper could be used as a silver coin and that the merchants were fighting over it, the credit level of the paper slips would naturally be higher.

There was also no central bank in Great Qing, and the officials of the Ministry of Revenue did not understand Xiao Letian's scheme at all. They foolishly thought that Letian Firm was helping them, but they were just flattering him, and did not know that he had already earned a lot from this financial game.

My bank has six million in debt, but how many small bonds have I issued? Probably no one in the Great Qing knew, only and Xiao Letian knew that a total of 13 million Dragon-striated Silver Coin s worth of bonds were all digested by the people of Jiangnan. Just one Shanghai was enough to make a joke on over 5 million silver coins worth of bonds.

What? Are you afraid that Xiao Letian will not pay? This was an international joke. As long as the currency was released, no one would think of returning the credit to the outside. As long as the currency's credit did not crumble, the silver and physical items could only go in.

There were many ways to increase currency and credit, but there were only two most effective ways. One was to protect the military, and the other was to protect the tax revenue.

Powerful military force can ensure the basic security of the money issuing institutions or the country, as long as the trees do not collapse people can continue to enjoy the cool. The guarantee of tax was that the business world would not reject or even be willing to use this kind of currency. The more business world liked this kind of currency, the more acceptable it was to the public.

Of course, there were many ways to maintain one's credit, such as a safe reserve of gold and silver, the development of consumer habits, and so on. But that was only in the future, Xiao Letian wouldn't go too far because it would drag him down to the grave.

”I don't understand!” I really don't understand … What exactly is Xiao Letian up to? ” Just as she was muttering to herself, the sedan chair suddenly stopped. Raising her head, she saw that the Jingshan was right in front of him.

”Your Royal Highness, please get off the palanquin … ”Minister Lin from the Revenue Department is waiting for you …” The butler opened the curtain of the palanquin and invited the dazed Prince Kung out.

Under a few dark pine trees, Lin Shangshu used his back to block the wind as he waited for the prince to arrive. When he saw Yi, he quickly walked over to welcome him, then changed his direction to let the prince face the wind.

”My lord, be careful. Don't get blinded by the wind today …”

”Old Lin, what are you doing?” ”The empress dowager's summons are tight. Why aren't you hurrying up the mountain and waiting here for the rain to pour?” Yi Yeyu said half-jokingly.

”Aiya, my good prince, how can I hide this from you today?” There could be no other matters aside from discussing the assassination of His Majesty … However, let me tell you the truth in advance. Our Ministry of Revenue doesn't have any money left, not even a penny.