Rise of the 1630s South America

Chapter 2243 Unity River ([-])

"In Eastern countries, precious metals (whether in nuggets or actual coins) are often hoarded for future known or unknown needs. Like China, the wealthy love to destroy silver coins and mint them into silver objects of various shapes , like silver winter melon. Indians are similar, they like to hide the gold and silver coins they receive. The difference from China is that people there are more enthusiastic about gold. Change it to gold, so you can find a lot of gold when you go to Indian folks, it’s not very difficult.” On April 1694, 4, in the cafe on the first floor of Fangshan Hotel, Gendarmerie Lieutenant Han Guanglie was chatting with restaurant owner Lao Siji .

Han Guanglie has been lingering in the rank of Lieutenant of the Gendarmerie for many years.Because of his mediocre background, he also knew that if he hadn't had any adventures, he would probably have been a captain for the rest of his life, and then he would hang out in a certain idle position in the headquarters until he retired from active service.But he enjoys this kind of life very much. Is it interesting to work hard to climb up?It must be known that the heights are extremely cold, and it is still like this, exercising in the Tuanjie River, without having to deal with complicated interpersonal relationships, and without having to think about standing in teams all day long, how good it is!

Lao Siji admired Han Guanglie's attitude very much.He has experienced too much in his life and has seen through many things, so he sold the meat factory in Pampa to others, took his life savings to open a restaurant here in Fangshan Township, and ran it with his wife and children—— Of course, Fangshan Hotel is not small, with four floors high, so some extra people were hired.

It should be said that Fangshan Hotel is the leading hotel in Fangshan Township.In such an economically backward area, it is really not easy for someone to invest in the construction of such a high-end hotel and restaurant.Of course, the construction of such a large building almost exhausted Rausji’s savings. Now he basically has all his belongings on it, and he even borrowed some money from his old friend Inigo (he was in the original Laosji’s house). There are also shares in the company), which can be described as desperate.

Fortunately, the business of Fangshan Hotel is not bad.Because it is located in the necessary place to go to the Tuanjie River Basin, Fangshan Township has had a lot of people coming and going over the years.Among them are government employees, as well as a large number of small traders and craftsmen, but the larger number are gold diggers who went to the Tuanjie River Basin to try their luck with the dream of making a fortune.These people come to Fangshan Township from other places, or return to Fangshan Township from the gold mining area. They must have a lot of consumption needs in terms of food and accommodation. In addition, Fangshan Hotel also sells some clothes, drinks (including wine), tobacco category of consumer goods, so the overall turnover is quite high.

In his spare time, Lao Siji was also thankful that he made the right decision. To abandon the stable operation of the cured meat products factory and come to the warm north to start a new business is not something ordinary people can do.Although his body joints could not stand the cold winter in the south, it still required extraordinary courage to make this decision.

"We people on the east coast also like gold. You can see that the business of those jewelry stores is very good. Especially after a series of gold mines in the north were discovered, I feel that everyone will have to prepare some gold jewelry when they marry their wives." Rao Siji's hair has turned gray, but he is still in good spirits, and his words are full of energy. Perhaps the relatively warm climate in Brazil has re-stimulated his vitality.

"The drop in gold prices cannot last for a long time." Han Guanglie first praised the coffee ground by Lao Siji himself, and then said: "In fact, the government is likely to launch a 'fiat currency' in the next few years. This is a gold-linked exchange certificate, and the unit is yuan. The emergence of legal currency will make physical gold on the market more and more sought-after, and its price will soon stop falling and rise."

"Captain Han, aren't you a gendarme? How can you be so clear about the legal currency? Didn't the newspapers say that there is no intention to launch a gold standard currency in the short term?" Lao Siji asked, puzzled.

"Ahem, that's a small trick the government uses to prevent lawless gold diggers from entering the mining area. In fact, it's not a secret within the government." Han Guanglie did not say that this was what he heard from the Precious Metals Administration The fellow at work said it, but replied pretending to be profound.

Of course, what he said is basically close to the truth. The concept of "legal currency" was proposed by the Precious Metals Administration in order to distinguish other types of bank notes or bills in the country.This word can easily remind people that when there is a credit problem in the financial industry, the bank notes that can really be used as currency can only be "legal currency" linked to gold. Creditors only accept legal currency as a way of repaying debts, and other credits may appear. Risky bank notes will not be collected.Correspondingly, when the credit is good, bank notes, checks, etc. issued by some reputable banks or individuals (some reputable virtual currencies in later generations can even be used on many occasions) will also be accepted by people. Not too picky.

However, these bank notes (including bonds, US bonds in later generations can even be used directly as currency), personal checks and the like lack a super monopoly privilege that can force people to accept.For example, the East Coast government will stipulate that no individual or institution across the country can refuse to accept legal currency, otherwise it will violate the law.This kind of coercive measures and the characteristics of being linked to gold can basically fully protect the credit and value of the legal currency, so that it can eventually become a hard currency that is unimpeded throughout the country.

Of course, the government on the east coast is still conscientious. One yuan of legal currency is fixedly exchanged for two grams of gold. Any holder of legal currency can exchange for physical gold at designated places.However, when the government collects taxes, pays wages, and purchases materials, it will only use legal currency as the only settlement method to minimize the outflow of physical gold.If this article can be successfully implemented for five to ten years, then the citizens on the east coast will consciously or unconsciously use legal currency in their daily life either out of habit or out of awe of the law, which makes the government issue more than the actual currency. Fiat currency in the amount of gold reserves has become possible.

However, the excessive issuance of legal currency must be restrained.The value of legal currency basically comes from credit, and credit is actually very fragile and can be easily destroyed by an excessive increase in its quantity.The lessons of the previous Ming Dynasty are worth remembering by everyone. When legal currency is only issued but not recycled, the market will be flooded with such things, which will lead to serious depreciation, people's distrust, currency collapse and even economic collapse. Strange.

Fortunately, the legal currency on the east coast does not have this kind of trouble for the time being.The year-by-year increase in gold production in the Tuanjie River Basin is the biggest source of confidence for people. The government itself only intends to secretly issue more currency, and does not intend to go too far. In addition, they will also recycle through taxation and other methods, and adjust the circulation on the market at any time. If the amount of fiat currency is large, it is normal for this currency to maintain a strong currency value for a long time and become the main medium of exchange for people.

"This is how the government's credibility is lost bit by bit." After a little condemnation of the government's inconsistency in the legal currency, Rao Siji shook his head and said, "Let's not talk about this. Now that the government wants to make legal currency, spring is coming here in Tuanjiehe, and my restaurant seems to be running well. But Captain Han, the pressure on you must also increase? Lawless guys must be indispensable! Last time there was A few bad gamblers came from the south, said they quit gambling, and wanted to go to Tuanjiehe to find a job and start a new life, but they ran away without paying for their meals. Sigh, this kind of person is actually not bad Well, if I run into some outlaws, I don't know what to do, old man."

"This——" Han Guanglie was a little embarrassed. After taking a sip of tea, he said helplessly, "You don't have to worry about this. I heard that the newly appointed commander of the police, Chief Xiao, is very capable. He will take care of himself after taking office. All kinds of chaos here. At that time, these bastards will have to be attacked. You can rest assured that the environment will gradually improve. Those bad people who have been forcefully cleared out basically have a place to go, that is, they will be concentrated in Buddha first. It will be taken into custody on the deserted island on the other side of the Cape Islands, and will come in handy later.”

Han Guanglie's "useful" actually means that when the East Coast Navy is dispatched to occupy a territory in Africa or even the European continent, they will be sent there to serve as logistics personnel and undertake hard physical labor, such as transporting ammunition to the front line, Digging trenches and more.If you are unlucky, you may be forced to charge, which is unpredictable.

Han Guanglie estimated that the East Coast Navy would probably occupy the Canary Islands under the control of the Kingdom of Spain for the first time.The geographical location of this archipelago is very critical. It is a key node of communication between the European continent and the Caribbean Sea, and the most important supply base.If nothing else, these captured gold diggers will show off their "martial bravery" in the battle against the Santa Cruz Harbor Fort.

"It's just a group of idiots, no one cares if they die." Han Guanglie thought.

(End of this chapter)