C785 Teacher Zai Chun (1/2)
But today, Zai Chun could already take out some of the new knowledge he had learnt to counter attack. In front of the modern financial knowledge, all of these clear officials were just a bunch of dregs.
”What is silver?” What was a copper coin? What is gold? Including the foreign currency, the newly issued bonds of the Great Qing Dynasty, and the Military Ticket s issued by the Ryukyu, it was actually just money! All of these things can be collectively referred to as money … ”
”And what is money? In the end, money was just a subject. It was just a subject that both sides agreed to buy and sell! Master Weng, do you think this silver can be eaten or worn? Master Feng, do you think this pile of copper coins can be used as a house? ”
”Humans need money after all. They don't need money per se, but rather things that they need in exchange, namely survival, living, living, spiritual enjoyment, and so on …”
Zai Chun imitated Xiao Letian and shrugged, saying indifferently, ”Now you understand? ”Don't mention how much money you have, the scene of the mountains of gold and silver appearing in your heads right now is your own fantasy, alright?!”
”Before the Qin and Han dynasties, could cloth even be used as money? ”The government's salary is given to food and cloth, which is only limited if a little copper is refined into cauldrons and weapons. Although there are some knife coins, shovel-shaped coins and the like, only a few people can use them. The citizens still use the traditional trading method of bartering with goods …”
”At that time, there was no silver and gold coin, the gold and silver coins back then were merely the jewelry and ornaments of the nobles!”
”The real reason why silver became a currency was because of a whip technique practiced by Zhang Juzheng in the Ming Dynasty... ”Master Weng should be very clear about this. He transformed all the taxes into silver, and silver and copper coins became the currency used in society …”
”Therefore, all sorts of things, including money, are evolving in this world. As long as there is something that can accomplish the goal of getting silver and copper coins, then even if it's just a piece of paper, it can still be treated as money!”
”In the Ryukyu, the amount of funds that we have is around 15 million silver coins per day, but not even 10% of the goods are traded in silver or in physical items. Most of the merchants simply take out a piece of paper with numbers written on it from an overseas bank, and call it a cheque to buy the entire ship's goods that he likes.”
”The captains of the ships are also very willing to take this kind of cheque, because carrying it is not easy and they can even set up a password at the bank. This way, there's no possibility of losing it …”
”They took their ships to Shanghai, Tanggu, Guangzhou and even Hong Kong. With this thin piece of paper, they could exchange it for the porcelain, silk, tea, medicinal herbs that they wanted … And gold! ”
”When these goods return to Europe, naturally, there will be European colleagues doing the same thing. With the support of the distribution banks, this Ocean trade crossing half the world will be completed …”
Today, the eleven year old Zai Chun had become the absolute protagonist, and the envoys present had become the primary school students. All of these simple financial theory knowledge had turned into white in his mouth, and he lectured the other party in a very understandable manner.
This was the essence of Xiao Letian's teachings. He had always thought that making complicated things easier to deal with would be his true ability.
After saying that, someone from the delegation exclaimed, ”Oh my god, isn't it too easy to earn money from this bank? ”When you take the loan with your left hand, you receive it with a high interest rate. Furthermore, you don't even need to use your capital, most of the physical gold and silver were actually moved around in the silver vault where they were assigned. Isn't that what they are selling for?”