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Volume 2 Beijing Story Chapter 126 The Meeting Gift of One Hundred Thousand Stewardships

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    Update time: 2012-07-31

    Zhang Jia'ao also knows that the minting power of the Bank of China is a double-edged sword. The problem is that last year's Beijing banknote trend was caused by this minting power. The government's Ministry of Finance forced the Bank of China and the Bank of Communications to issue banknotes to advance military expenses, and there was no situation.  Guarantees and restrictions have turned into two banks that are constantly advancing money for the government.

    You must know that every time you issue one more dollar of banknotes, theoretically there must be a reserve in the treasury for redemption at any time. The Ministry of Finance does not have that many silver dollars as reserves, and even the mortgage taxes are not enough. So many banknotes issued must be guaranteed to be redeemed.  , only Bank of China and Bank of Communications advance funds on their own. Isn¡¯t that a bottomless pit?

    This is the starting point for Song Hanzhang, Zhang Jia'ao and others to turn the Bank of China into a private commercial bank. In 1917, there was no modern banking system in China. In fact, in Wang Geng's previous life, after Zhang Jia'ao became the vice president of the Bank of China in 1917, he spent many years  It took five years to completely resolve the "Beijing banknote trend".

    In the new "Bank of China Regulations" drafted by Zhang Jiayao in the future, the government's Ministry of Finance can only issue public bonds and use government bonds to exchange banknotes from the Bank of China and the Bank of Communications in a market-oriented manner.  The fact is that public debt was used as collateral for currency issuance.

    For example, the 1913 U.S. Federal Reserve Act stipulates that the right to issue U.S. dollars belongs to the Federal Reserve.  The U.S. government has no power to issue currency, only the power to issue Treasury bonds.  However, the U.S. government can use treasury bonds as collateral from the private central bank, the Federal Reserve, and obtain U.S. dollar currency through the Federal Reserve and the commercial banking system. The Federal Reserve cannot refuse this.

    Therefore, the U.S. government actually issues currency indirectly through the issuance of Treasury bonds, and the source of the U.S. dollar is in U.S. Treasury bonds.  The general process is: first, the U.S. Congress approves the scale of Treasury bond issuance, then the Treasury Department brings different types of designed Treasury bonds to the market for auction, and finally the Treasury Department sends all the Treasury bonds that are not sold in the auction to the Federal Reserve.  , the Federal Reserve accepted the order in full and handed the corresponding US dollar cash to the Treasury Department.

    To put it simply, the U.S. Treasury Department is responsible for printing Treasury bonds, and the Federal Reserve is responsible for printing U.S. dollar bills. Then the Treasury Department sells Treasury bonds to the Federal Reserve to obtain cash, and the Fed obtains interest by buying Treasury bonds. Everyone is happy with the best of both worlds.

    Seeing Zhang Jia'ao's face reddened and panting without speaking, Lu Ding and Song Hanzhang's expressions were complicated, Wang Geng smiled and patted the armrest of the chair and said,

    "Do you want to establish a currency issuance system in China similar to the Federal Reserve Act promulgated by the United States in 1913?"

    "Yes! That's it! Like the United States, the government's Ministry of Finance can only issue public bonds and sell them in the inter-bank market first. The balance that cannot be sold is underwritten by the Bank of China and the Bank of Communications. Only in this way can banknotes be issued.  Collateral, so that hyperinflation will not lead to runs and bank credit collapse! That¡¯s what we have in mind!¡± Song Hanzhang nodded hurriedly.

    "In addition, a shareholders' meeting will be established after a bank raises 10 million yuan in shares. Directors and supervisors must be elected by the shareholders' meeting. The government can appoint the president and vice president among the five managing directors for a four-year term, but they can only be removed by the shareholders' meeting.  , In this way, the government and the banks are both separated and related, which can be regarded as a structure that checks and balances each other but can develop smoothly!" Zhang Jia'ao also expressed the plan that he had been planning for a long time.

    Wang Geng nodded slightly, turned to Lu Ding and said with a smile,

    "Lao Lu, if what you two guys want to do comes to fruition, the Ministry of Finance will have a hard time in the future. Any change of money will have to follow the rules of the market. Is this okay?"

    "Hi! Brother Wang! I, Lu Ding, am not an ignorant person. Don't make fun of me. Nothing can be done without rules. We who are engaged in finance or finance all know that banknotes must not be printed indiscriminately, otherwise  Sooner or later, it will be the ordinary people who will be exposed. I, Lu Ding, support their idea of ??setting up a bank with both hands. I don¡¯t have any prejudice just because I am in charge of the Ministry of Finance!" Lu Ding's face turned red.  He shook his watch and said.

    "Printing money indiscriminately is poison to quench thirst. Not to mention the public, even the Ministry of Communications and the Bank of Communications can see this. How can even Xu Youzheng and the Prime Minister not see it? It is nothing more than following the authority in a hurry. Everyone should be more considerate.  "Brothers Lao Song and Zhang, what is the current total share capital of your Bank of China?" Wang Geng said in an old-fashioned but reasonable tone.

    "Currently, the Ministry of Finance holds 4.28 million official shares and 2.36 million remaining commercial shares, totaling 6.64 million yuan!" Zhang Jiayao said eagerly.

    "Is there any specific plan to expand commercial stocks?" Wang Geng asked casually.

    Lu Ding, Song Hanzhang, and Zhang Jiayao looked at each other a few times. According to the previous practice, since everyone is working with Wang Geng, the popular person in front of the Prime Minister, in order to develop, now it is time for everyone to report privately or give shares.  The best time for Wang Geng.

    "Don't tell me, these guys are bad at doing things."To be careful, before Wang Geng came to the banquet, plus the CEO Feng Gengguang who was living happily with the girl from Yixiangyuan in another room, the four of them closed the door in order to collect a large amount of shares to give to Wang Geng as a meeting gift.  Discussed for a long time.

    The Bank of China was the foundation of Chen Jintao's career. However, because of his first defection to the South and then his embrace of Duan Qirui's thick legs, coupled with his corrupt nature, his official career came to an end immediately, so Feng Gengguang, Song Hanzhang, Zhang Jia'ao and Lu  The four of them were determined to leave Chen Jintao's broken ship and find another captain for themselves and the Bank of China. The appearance of Wang Geng made them choose their target!

    "Old Song, it's up to you to say this!" Lu Ding kicked the ball to Song Hanzhang. Originally, the focus of recruiting business stocks was also in Jiangsu and Zhejiang. In the end, Song Hanzhang and Zhang Jiayao had to get the majority of the shares.

    "Public power, it's up to you. Anyway, you are responsible for planning and raising business shares. Just do as we have discussed, and my brother will take care of it for you!" Song Hanzhang handed the baton to Zhang Jiayao's hand.  After all, the Zhang family, a large family engaged in finance and industry, has developed into a prestigious family consortium in Shanghai.

    "Supervisor Wang, to tell you the truth, when you came here just now, we all discussed it. As the saying goes, no one is respectful when you meet for the first time. We collected 100,000 dry shares to give you a gift as an introduction, including a few of us.  This is for you personally. It has nothing to do with our future official expenses. We will figure out how much it will cost separately. As for how many business stocks you plan to recruit, our idea is to raise at least 5 million.  !¡±

    Zhang Jia'ao gritted his teeth and presented a 100,000 yuan stock of Bank of China shares as a meeting gift. It is estimated that Lao Song and his family will have to spend more than 60,000 here, and the remaining 40,000 will be borne by Lu Ding and Feng Gengguang. As the saying goes, giving gifts is a gift.  This kind of thing requires a lot of know-how. Xu Shuzheng bought Wang Geng a palace in the name of the Ministry of War with just one hand. The market price was almost 50,000 yuan. Of course, it was still nominally a property of the Ministry of War.

    According to the current business model of the Bank of China, a share of 100,000 yuan is almost 1% of the shares. The problem is that if you keep advancing money to the government and the Ministry of Finance, the shares will not earn any points even if you lose money or earn dividends. A share of 50,000 yuan is equivalent to 1% of the shares.  There was nothing he could do, so Zhang Jiayao gritted his teeth and mentioned 100,000.  But after the share expansion, it will only be 0.75% of the shares.

    "Oh, brother Zhang, you only planned to expand your shares by 5 million yuan in total, and you gave me 2% in one hand. Isn't that too generous? My monthly salary of 7,788 yuan is only 2,000 yuan.  One hundred thousand is enough for me to save money for four or five years. By the way, can your stock be cashed out at any time? What if I need money urgently?" Wang Geng asked, haha.  After a series of words, it was a bit confusing.

    "Last year, the Beijing banknote craze had a huge impact on the credibility of Bank of China and Bank of Communications. Public Quan said that it would raise 5 million commercial shares, which is an astronomical figure. Wang Geng, you may not know that in the United States, 5 million  You can set up an investment bank with US$10,000. In China, you can now set up a commercial savings bank with US$50,000. The Shanghai Commercial Savings Bank run by Chen Guangfu in the South Bank has a rated capital of US$100,000 but an actual capital of only US$70,000.  More"

    Song Hanzhang saw that Wang Geng was a bit dissatisfied with the small increase of five million shares, so he quickly stood up and explained.
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