Chapter 687 I Don't Want to Use His Head (There is an Easter Egg at the end of the chapter)
Niu Wei looked at Commander Xin's shining eyes, feeling helpless and contemptuous. He knew that Commander Xin would definitely want to mint his own coins, but even if he really did it, he would probably only lose money.
Is it really that easy to make coins?
"Commander-in-chief, this money is not easy to make, and it is even more difficult to issue your own currency." Niu Wei couldn't help but pour cold water on him.
"Why? Isn't it just a small round piece made of pure gold?" Commander Xin was still looking forward to it, but was immediately unhappy after being hit by Niu Wei.
"Well, Commander-in-Chief, this coin is indeed not easy to make, because it is not only an object, but also carries the reputation of a tribe. Therefore, this money must not only have high purity, but also cannot be issued indiscriminately, otherwise it will destroy the economy of one's own tribe.
In addition, although this small disc does not look large, it has many processes, so the cost is also a big problem.
If we spend ten cents in labor to make a coin with a face value of one cent, wouldn't it be a dead loss? And if we only issue large-denomination currency because the cost is high, what is the use of the coin, because the transactions of ordinary people are basically mostly small-denomination coins, so how can we make money in large quantities and at low cost? This is the most critical issue, and it is not that simple.
According to our existing technology, I think it will not be difficult to counterfeit a similar coin, but the difficulty lies in how to mass-produce it on a large scale."
Commander Xin almost understood it, and then frowned. The cost is indeed a problem. After all, it is something that is to be popularized on a large scale. If the quantity is not enough, it will lose its function.
What Niu Wei said did happen in history. For example, the Ming Dynasty issued paper money, the Ming Baochao. The cost of printing money in the later period was higher than the face value of the paper money, so it was no longer printed.
This is still paper money. The cost of metal coins is higher than that of paper money. After all, metals have a certain inherent value. There is also the heat energy consumption during heat treatment, which is all money.
"We have to try it. What if we can also cast a large number of coins ourselves?" Commander Xin struggled unwillingly.
"Commander-in-chief, if you want to issue currency, then of course you can try it. But I have heard some news from the Han envoy. If we don't issue currency ourselves, it will be more profitable. Let the Han tribe pay for the currency, and we will use it directly. Isn't it better?" Niu Wei continued to advise.
"What news? What greater benefits?" Commander Xin asked curiously. He knew that Niu Wei was familiar with the Han tribe, so he was very interested in some of the intelligence and news provided by Niu Wei.
"The commander-in-chief may not know much about the currency issuance method. For example, the Han tribe uses copper as money, so all the copper should be equivalent to the value of money. So if they issue copper coins, the copperware in our tribe's homes will be valuable. According to the currency rules of the Han tribe, those copperware can also be used to exchange for their goods and materials." Niu Wei introduced.
"Is there such a thing?"
Commander Xin stood up in surprise. If all the copper in the Xin tribe could be used as money, how many good things could be bought, such as four-wheeled vehicles and sailboats? As long as the Han tribe is willing to sell, the Xin tribe can definitely afford it.
Niu Wei seemed to see what the commander-in-chief was thinking, so he continued to pour cold water on him.
"Commander-in-chief, things are not as simple as you think. As a tribe that has successfully promoted its own currency on the grassland, how could the Han tribe not think of such a thing? They have already thought of countermeasures and will never let us take advantage of them for nothing."
"What do you mean?" Commander Xin frowned and asked.
"It's nothing. It's just what I said just now. If the Han tribe wants to promote copper coins in a copper-producing tribe like our Zhudao, they must be prepared for a run on supplies. If they don't exchange supplies for us or raise the price of goods, it means that they devalue the value of copper coins themselves. They will definitely not do this. They have thought of this a long time ago.
So the Han tribe decided to use their iron tools to exchange for our copper tools. If someone really takes their own copper farm tools to the Han tribe to exchange for supplies, then in the end they can only exchange some iron tools back. They can't exchange for other supplies, and they won't exchange for other supplies, because our people still need metal farm tools to farm. Without farm tools, what will they eat?"
"You mean, the Han tribe will exchange all our copper for iron?" Commander Xin asked in surprise.
"Well, that's about it. If someone brings copper to exchange, they will definitely do so. If no one goes to exchange, that's another story. But I don't think it's likely, because everyone now knows that iron is better than copper. Who wouldn't be a fool if they didn't exchange?" Niu Wei explained again.
"If that's the case, then won't all the gold of our Xin tribe be exchanged by them? Then what are the huge benefits you just said that we will have?" Commander Xin asked again in confusion.
"Of course it's iron. According to the pricing of the Han tribe, their copper is more expensive than iron. In this way, we can use a small amount of copper to exchange for more iron. Copperware is far less useful than ironware. We can use the copper we dig out from the mountains to exchange for more high-grade iron. Isn't this a huge benefit?
With these irons, we can make more iron tools. With good tools, do we still have to worry about not being able to make good things? If we can also produce all kinds of goods and good equipment ourselves, then do we still have to worry about not having money?"
Niu Wei started to talk nonsense seriously again. It was obviously the matter of the Han tribe preventing the Xin tribe from developing its own currency, but he made it seem like the Xin tribe had taken a big advantage. This eloquence is simply first-class.
Of course, this is also because he knew the currency promotion plan of the Han tribe delegation in advance, and he was particularly familiar with the character and ideas of the Xin leader, so he could fool him in a targeted way. If it were someone else, he might not be able to explain these things clearly, just like the other elders of the Xin tribe, they didn't even know how to play with money.
Niu Wei was different. He had been in the Han tribe for more than a year. He even watched the Han tribe start to issue metal currency internally, so he had a better understanding of the currency issuance method. Otherwise, he would not have seen it so thoroughly.
"No." Commander Xin suddenly said. He always felt that something was wrong, but he couldn't figure out what it was.
After walking around the room twice, Commander Xin finally found the problem.
"You are wrong. If the Han tribe really issues their copper coins here, we can exchange their gold for a lot of their iron. But didn't we say before that we would issue our own currency?
If they exchange all the copper, what can we use to make our own coins? Can we use the iron we exchanged?
If we use iron to make coins, we can't produce iron ourselves. If the Han tribe brings a lot of iron, according to the rules you said, can they use iron to exchange for anything we have?
Also, if the Han tribe really promotes the currency in our Zhudao, then the people on Zhudao will use coins engraved with the portrait of the leader of the Han tribe every day. Who will be the real leader of Zhudao then?"
Although Commander Xin still didn't grasp the key to the problem, because of "Luo Datou", he still "refused" to promote the Han tribe's currency.
In your own tribe, how can you make the portrait of someone else's leader known to everyone? ! ! !
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That's all for today. The rest will be added tomorrow morning. I will update twice tomorrow. I am also planning a new book. If nothing goes wrong, the new book may be released on Qidian Chinese website next Monday. Please support me then.
I will continue writing this book. I will fill in the gaps that need to be filled. It will not end badly. I have written more than 1.9 million words, so I don't mind the remaining 100,000 words.
(End of this chapter)
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