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Text 957¡¾Inflation Expansion and Moderate Colonization¡¿

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    "Spanish silver can be seen all over Europe." - King Charles II of England.

    This sentence refers to rampant smuggling in America.

    In the first two decades of the 17th century, the amount of American silver imported into Spain reached more than 200,000 kilograms per year.

    By the 1930s, it dropped sharply to an average of only 140,000 kilograms per year;

    By the 1950s, only 40,000 kilograms of American silver flowed into Spain each year remained.

    The "reduction" of silver production in the Americas was initially due to floods in Mexico, and continuous rain caused water accumulation and landslides in silver mines.  Moreover, silver is refined with mercury, which consumes too much mercury resources, which makes it impossible to smelt silver after digging out silver mines.

    This situation is actually slowly recovering.

    Why does the silver production in the Americas continue to decrease?  Of course it was the intentional result of the colonial officials!

    A large amount of silver was mined and refined, and it was not reported to the king at all.  Instead, it was traded privately and flowed into various European countries. That's why Charles II said, "Spain's silver can be seen all over Europe."

    The King of Spain couldn't figure out the situation, and stepped up restrictions on the trade of galleons to prevent excessive silver from flowing into China.  In addition, the Japanese shogunate also prohibited daimyo from mining silver mines, which really caused a silver shortage in the late Ming Dynasty.

    Forbidden City, Imperial Garden.

    Song Yingxing, who has already retired, took out the first edition of "Economic Knowledge", sipping tea and said: "This year, prices in coastal cities have risen sharply. The root cause is the increased inflow of silver from America and Japan."

    Zhao Han flipped through the manuscript casually, and listened to Song Yingxing's continuation.

    Song Yingxing said: "Li Quan took the fleet to the Americas for trade, and the Spanish officials on the west coast of America completely opened up smuggling. Not only did they smuggle with Li Quan, but the Spanish officials and the navy also ignored the king's ban and filled the cabins with  Goods and silver. But the power of the Japanese shogunate has fallen, and the banned silver mines have resumed work. The silver is all flowing to the coastal provinces of the Celestial Dynasty."

    "It's annoying to have too much money." Zhao Han smiled.

    Song Yingxing also said: "I carefully checked the "Price Book" over the years, taking Jiangsu, Lianghu, and Sichuan as examples. The price rise in Jiangsu will affect the two lakes in about two to three years, and it will affect Sichuan in about five to six years.  In the Southwest, the impact is more gradual."

    Zhao Han said: "We can only bear it."

    There is really no way. At this time, Chinese commodities occupy an absolute dominant position in the world, and China is a net inflow country of silver.  In the new dynasty of Datong, sea trade became more and more prosperous, and this situation became more obvious, and the continuous rise of prices was unstoppable.

    It is the peasants who suffer!

    Merchants have huge profits, industrialists and citizens can raise wages, and farmers who only have grain income are the most affected (the increase in grain purchase prices is far behind the increase in prices).

    Of course, China is large enough to buffer this impact.

    European countries are small in size, and it is scary to encounter such a situation, and a proper term was born directly-price revolution.

    Due to the influx of silver from America, so many commodities were produced.  In Spain, in the first 50 years of the 16th century, prices nearly doubled, and prices rose by about 60% in the next 50 years. The momentum was not stopped until silver production decreased.

    France was the first to be affected, followed by Italy.  The common people are already stupid, their income has not increased, but their shopping has become more and more expensive.

    Charles II was very lucky. The time when he returned home to seize the throne coincided with the peak of the price increase rate in Britain.  This product not only has to face financial difficulties, but also has to face soaring prices. Who made Britain's "price revolution" come so slowly?  People in Spain and France have already finished the leather.

    Song Yingxing continued: "Nowadays, the imperial court has issued gold coins again. The government has lowered the price of gold and silver, and merchants even went to India for trade. I heard that those Indian merchants like to pay with gold and silver coins, and gold coins account for a large proportion. In the future, not only  There¡¯s a lot of silver coming in, and gold is going to come in.¡±

    "What countermeasure does Song Qing have?" Zhao Han asked.

    Song Yingxing said: "When collecting land taxes, we must be extra cautious and pay more attention to local grain prices to avoid causing too heavy a burden on farmers."

    Since Zhang Juzheng's reform, China's land tax collection has been changed to currency.  As for the price discount of grain, it varies from place to place, and officials have a lot of room for manipulation, which has always been chaotic.

    The Datong New Dynasty calculates taxes according to the number of acres and grades, and the tax rate also follows the local grain price.

    Now the price of grain continues to rise, but the price of grain sold by farmers is often suppressed.  Moreover, most provinces no longer collect taxes in kind, and farmers can only pay taxes with money.  As the denominations of official tickets and military tickets changed from grain units to currency units, Datong Bank also gradually reduced its grain collection and put the grain; There are also Hamgyong Road and Pingan Road in North Korea, which have a high degree of civilization, intellectuals can also read Chinese characters, and the terrain is not suitable for violent rule.  Then priority should be given to care and education, and education should be the first, and it is enough to turn them into Han Chinese.

    Zhao Han's thinking became clearer, and he wrote "The Governor's Essentials", and all future officials sent abroad must study this book carefully.

    The specific policy depends on the specific situation.

    Confucianism pays attention to the mean, and the mean is not to follow the crowd with the mud, that is for the ignorant to take the meaning out of the text.

    The core idea of ??Zhongyong is the unity of heaven and man, and emphasizes the coordination of heaven, earth and man.

    The mean in the narrow sense talks about the cultivation of human nature and how to be a gentleman.

    The mean in a broad sense is about how to do things.  To put it bluntly, I have to stick to my principles and know what my goals and bottom line are.  Then, according to the environment and interpersonal relationship, make the most appropriate choice, adapting measures to time, place and person.

    Zhao Han's colonial policy is the golden mean, the core is to open up, and the rest depends on the situation to decide what to do.

    (End of this chapter
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