At the end of last year, the Finance Committee led the estimate of the relationship between the increase in silver reserves of the East China Government and the increase in the issuance of silver coins, and finally the calculations of the calculation center were used for modeling and calculations. The conclusion was that, with the territory and population of the East China Government no longer increasing, according to the current economic growth rate, the silver reserves of the East China Government can only be supported for three years at most. Therefore, in three years, if the increase in the issuance of silver coins is matched with the economic growth rate, it can only buy silver abroad.

So in this case, the Finance Committee formally proposed to the Executive Yuan: to abolish silver coins and to fully popularize the use of paper money, or to mainly use paper money, and silver coins are only used as auxiliary currency.

At the same time, the Finance Committee also believes that replacing metal currencies with paper money is not only a need for economic development, but also a general trend of historical development. The East China Government cannot violate this trend. Moreover, the conditions for abolishing silver coins now and issuing paper money have been ripe: First of all, the East China Government has been established for 10 years, and its rule has been basically stable. The government's credit and authority, as well as its control and execution have reached a considerable level. This is also a prerequisite for monetary reform. Only a strong and strong government can organize a monetary reform.

Secondly, the economy of the East China government is developing rapidly. In this era, the social material products that can be provided are quite rich and can guarantee supply. The credit value of money lies in being able to buy things. If you can buy things, the credit of money can be guaranteed. Whether the money is metal or paper is not particularly important. Therefore, the social material products provided are also an important condition for monetary reform;

Finally, after the establishment of the East China Government, paper money has been issuing, and the proportion of paper money in the total amount of money is still increasing and circulation is very common. Therefore, paper money has basically been recognized in society, which has also laid a solid foundation for the abolition of silver coins and the comprehensive popularization of the use of paper money.

The reason for the Finance Committee was also subject to a lot of refutations at the Executive Meeting. Although the East China Government has been established for 10 years, the ruling areas have been first and then. Only Shandong, Henan and other places have been ruled for a long time, while others such as the Northeast, Borneo, and the north bank of the Yangtze River have only 1 or 2 years of actual rule. The ruling foundation has not been completely stabilized. Because it is in Mongolia, the East China Government has not yet fully established a ruling foundation.

Although the East China government issued paper money very early, and the proportion of paper money in the total amount of money is increasing and has been recognized by the society, from the perspective of the total amount of money, the total amount of paper money is less than 40% of the total amount of money, and the face value is mainly small. Because the silver-cent banknotes are used the largest amount, reaching more than 80%, the silver-cent banknotes are used less than 50%, and the maximum denomination of paper money is only 1 yuan, but the usage is only about 10%, let alone 2 yuan, 5 yuan, and 10 yuan denominations. This also shows that society only has confidence in small-denomination banknotes, while large-denomination currencies are still trusting metal currencies.

In this case, the policy of rashly abolishing silver coins in one-size-fits-all manner and promoting the use of paper money in full swing is too radical and too risky, and it is easy to cause social crises. Therefore, it is necessary to act cautiously. After all, although the development momentum of the East China government is good, the grassroots level is still weak and cannot withstand major tossing. Therefore, some people suggest that a prudent policy should be adopted to gradually increase the issuance of paper money and issue paper money with larger denominations, and reduce the issuance of silver coins, so that the banknotes will naturally transition to replacing silver dollars and becoming the main currency.

However, this suggestion has also been opposed by some people, because although this natural transition is safe, it takes too long, and in a short period of time, the demand for silver is still very large. It is hard to say whether it can keep up with the economic development.

Some people also suggest that it is better to conduct pilot projects in several cities with better economic development first, because overall, the more developed the economy, the greater the use of paper money. After all, paper money is indeed more convenient than silver dollars. Because it is a transaction of large amounts of funds, and in economically developed areas, there are more transactions of funds.

This suggestion was first reached in the Executive Yuan, which is also the experience in the old time and space. New policies and decisions should be piloted in several regions first, view the results, accumulate experience, improve and perfect, and then promoted nationwide. After all, China's size is too large, which is both an advantage, such as a large market and large scale, but also a weakness, which is poor flexibility. Once there is a mistake, it is easy to cause huge disasters. Therefore, piloting new affairs is a good way. Naturally, it can also be recognized by the elders.

So we immediately identified four cities, Shanghai, Qingdao, Tianjin, and Jinan, which are the four most developed cities in the East China government, and all have a population of one million. The use of paper money exceeds 50%. From Shanghai, the use of paper money reaches 64%, making it the city with the largest use of paper money in the East China government. Therefore, it is also the most suitable for promoting the use of paper money in these four cities.

Of course, whether the measures of the whole are to completely abolish silver coins and fully popularize the use of paper money or natural transitions, have not been finalized, and need to be discussed later. However, in private, it is called the "Scrap Silver Order".

However, in this way, it is very important that the four pilot cities remain stable. Of course, it is not appropriate for Li Songchen to be transferred from Shanghai at this time, because at this time, officials like Li Songchen who work for a long time, are familiar with the situation, and have a considerable prestige are required to ensure the smooth progress of the pilot work of promoting the use of paper money. Therefore, Li Songchen needs to continue to serve in Shanghai.

Wang Yunpeng briefly said the situation to Li Songchen and said, "What do you think!"

Li Songchen said: "I have only heard some rumors, but I haven't thought about it yet. However, replacing metal currency with paper money is the general trend of historical development, and no one can deny this. Therefore, the "Scrap Silver Order" is an implementation method that only depends on the whole."

Wang Yunpeng nodded and said, "Yes! But the 'Scrap Silver Order' is of great importance and must be treated with caution and cannot be made by slapping the mind. Once implemented, it is likely to cause social turmoil. You comrades in the local area need to work harder and maintain good local stability."

Li Songchen said: "According to my understanding, although the amount of paper money used in Shanghai now accounts for a large proportion, in terms of trust in currency, silver dollars are still more trusted by society. For example, Chinese people have the habit of saving money, and those deposited are basically silver dollars. Although they also trust paper money, they are all spent as quickly as possible. Of course, this is just what I see in general and may not necessarily represent a wide range of habits. Therefore, the situation of the whole body needs to be carefully investigated to have more accurate information."

Wang Yunpeng said: "That's right, let's do it. The executive meeting to discuss currency will be held tomorrow. You can also participate. Let's discuss it together and brainstorm the broader meaning."

Li Songchen nodded and said, "Okay, I will come on time tomorrow."

After saying that, Li Songchen got up and said goodbye. It was still early, so Li Songchen rushed to the hospital again to accompany Gao Jun to complete various physical examinations. Although Gao Jun was a little older, he was a soldier after all and his physical fitness was quite good. Therefore, all physical indicators were normal and there was no serious injury. Finally, the attending doctor advised Gao Jun to pay attention to something that pregnant women should pay attention to, and prescribed two pairs of baby care medicines. The two left the hospital and returned to Luo Yue's house.

At this time, Luo Yue and Zhou Weiying had not come back yet. The two were chatting together. Li Songchen also talked about the "Scrap Silver Order" and discussed with Gao Jun.

After listening to Li Songchen's introduction, Gao Jun thought about it and said, "I can't say anything else, but in Shanghai, even if it's abolishing silver coins in one size fits all, it's not impossible to use paper money in a comprehensive way. After all, it's just a little big place and it's easy to control. As long as you ensure that the banknotes can be bought, and the government agencies also collect paper money, there's no big problem."

Li Songchen smiled and said, "You said you're light."

Gao Jun said: "It's not what I said lightly. In fact, with our current strength, there is no need to be careful in many things. Things that should be forced by administrative orders should be pushed. However, preparations are also necessary."

Li Songchen said: "Oh! Tell me, what preparations are needed!"

Gao Jun said: "When the order for the scrapping of silver was first announced, it will definitely cause panic in society. Therefore, first of all, the publicity work must be in place. Our government has high enough credit and paper money also has a considerable social foundation. Therefore, as long as the publicity work is in place, social panic can be resolved as much as possible."

Li Songchen nodded and said, "Yes, publicity work is very necessary."

Gao Jun said again: "But just saying nothing is necessary, there must be something practical to support. The people are not easy to deceive, otherwise no matter how much they say, no matter how well they say, it is useless."

Li Songchen smiled and said, "What practical things need to be supported!"

Gao Jun said: "One is enough silver dollars, and two is enough daily necessities. As I said just now, when the waste silver order was announced, it will definitely cause panic in society, and therefore it will definitely trigger a climax of exchange for silver dollars and buying daily necessities. We must prepare enough silver dollars, enough daily necessities, unlimited exchange and sale. As many silver dollars to be exchanged by the public, we will pay as much silver dollars and buy daily necessities as much as we buy daily necessities. Only in this way can we resolve social panic and provide sufficient materials for our publicity work."
Chapter completed!