Chapter 516: Minting New Money (1)

"Your Majesty! In recent days, private money minting has become increasingly rampant, and inferior money is flooding the market. It has now disrupted the normal economic order. If it is not stopped, it will soon lead to serious economic problems in the Tang Dynasty."

At the morning court, the Minister of Revenue came out to perform a ceremony and report.

Since ancient times, counterfeit and inferior money has never stopped. It is not uncommon for private individuals to hide in corners and secretly mint money and let it circulate in the market.

Once inferior money is rampant in the market, it will lead to economic instability in the entire dynasty and even cause economic and social crises.

In order to maintain social and economic stability, the dynasty would severely crack down on those who forged coins.

In the fourth year of Wude, the imperial edict stated: "Anyone who dares to forge coins will be put to death, have his property confiscated, be exiled, etc." to severely punish those who forged coins privately.

Even so, it still cannot stop some people from forging coins privately, allowing inferior coins to circulate in the market, thereby disrupting the stable economy, and these people can make a profit from it.

"My dear ministers, what solutions do you have for the problem of private forging and forging coins among the people? Everyone is welcome to speak freely." Li Chengqian asked.

"I think we should strengthen control and prohibit private coin minting." A minister said.

"How to prohibit it? The laws of our Tang Dynasty stipulate that anyone who mints coins privately shall be sentenced to death for the main plot and exiled for 3,000 li for the accomplice."

"The family property shall be confiscated and the family members shall be punished together. Even so, it is not possible to completely eliminate the situation of private coin minting among the people. Tell me how to prohibit it?" Li Chengqian said.

The ministers were speechless. They had no good ideas in this regard.

"Your Majesty!" Di Renjie, who had just returned to Beijing, stood up and said, "The reason why private citizens can mint coins privately is because some minerals are not controlled by the court."

"In this way, these minerals in private hands can easily become raw materials for privately minting coins, so they mint coins without restraint."

With raw materials in hand, it is much easier to make inferior coins, and the inferior coins made can earn more than selling raw materials. This is one of the reasons why private citizens mint coins privately.

For example, the price of a pound of copper sold directly is three times cheaper than the inferior coins made from a pound of copper, or even more.

In this way, the private minting of coins will emerge. As long as the cost of minting inferior coins is lower than selling raw materials, many people will take the risk to mint coins privately.

"Do you mean to take all the minerals in the world back to the court? To prevent the possibility of private minting of coins by the people?" Li Chengqian asked.

How can things be so simple?

"Taking the minerals into the hands of the court is only part of the whole plan. Even if the court controls all the minerals, the private sector can obtain raw materials through other channels, and the court must also increase the price of minerals for making coins."

"At the same time, the circulation of these raw materials must be strictly controlled. What are the reasons for all buyers? What are the uses and quantities? All of these must be strictly controlled."

"Although doing so cannot completely eliminate the situation of privately minted coins among the private sector, it can reduce the amount of privately minted coins." Di Renjie said.

It is absolutely impossible to completely eliminate it. Even if the price of raw materials is raised, there will still be people who mint coins privately to disrupt the economic stability of the Tang Dynasty.

"What Di Aiqing said is very reasonable. Then let the Zhongshu Sheren draft an imperial edict and announce it to the world. From today on, the price of making coins and liquidity will be strictly controlled." "

And all private minerals will be confiscated by the court. Anyone who dares to hinder will have his property confiscated and be exiled to 3,000 miles. There will be no leniency." Li Chengqian said.

"I obey your order!" Zhongshu Sheren stepped out and saluted.

"Does anyone have anything to report or add?" Li Chengqian asked.

"Your Majesty! I have something to say." Li Ke, the Minister of the Left and the Third Rank of the Secretariat, spoke up.

"Just say whatever you want to say." Li Chengqian said.

"Nowadays, a large number of inferior coins are circulating in the market, so that most people barter and give up the transaction of coins. I suggest that all these inferior coins be collected and destroyed, and then the court government will re-cast coins and circulate them in the market." Li Ke said.

"What the Minister of the Left said makes sense, so how should these inferior coins be collected?" Li Chengqian asked.

"I think we can exchange real coins for inferior coins, and exchange one real coin for ten inferior coins." Li Ke said.

"I think it's inappropriate." Di Renjie said.

"What's inappropriate, Di Qing, please tell me." Li Chengqian said.

"If the court really exchanges one real coin for ten bad coins, it may not achieve the desired effect. Instead, it may backfire. The new coin is priced too high, and people will collect more old coins, which will lead to a blockage of trade and increase in the price of grain and silk." Di Renjie said.

"Since this doesn't work, then we can lower the price and exchange one coin for two coins, right?" Li Ke said.

"No!" Di Renjie objected without hesitation.

"Why not?" Li Ke questioned.

If the price is high, you object, and if the price is low, you also object.

"If we follow your suggestion, King Wu, people will hide the bad money privately because it is too cheap, and wait for the government to ban bad money to pass before using it."

"This will be useless. Bad money will still circulate in the market, causing chaos in the entire economic order." Di Renjie said.

"Then does Mr. Di have any good ideas?" Li Chengqian asked.

It was Di Renjie who proposed to collect the bad money, so he should have a corresponding countermeasure.

"New money will be minted. Any old money will be banned from circulation in the market. Old money will no longer be used as currency."

"Anyone who has old money in their hands or at home can take it to the local bank to exchange it for new money of the same value, exchanging old for new."

"Anyone who keeps old money will be severely punished and will not be loaned. Anyone who reports it will be rewarded."

"All old money in the bank will be directly exchanged for new money. All old money will be recast into new money." Di Renjie said.

"If Mr. Di's method is feasible, we will set up a minting bureau in the Ministry of Industry. From now on, all matters related to minting money will be handled by the Ministry of Industry." Li Chengqian said.

"Thank you, Your Majesty! I will certainly live up to your expectations. However, I would like to ask Your Majesty to make it clear what the new currency should be like, and what the standards should be for its size, thickness, weight, etc." The Minister of Works stepped out and said.

"Except for the Minister of Works, Zuo Pushe, and Di Qing, everyone else should leave the court! Before the new money is minted, no one is allowed to leak any information. Anyone who leaks will be killed without mercy!" Li Chengqian said.

"Yes!" The ministers bowed and left.