MTL - I-Chapter 1033 1029 [Financial rectification]
Chapter 1033 1029【Financial rectification】
"Your Majesty, this stock must not be allowed to run rampant!"
Cabinet minister Zhu Shunshui was the first to stand up against it.
He encourages the private economy and technological innovation, but he only stays on the real industry, and he is very disgusted with things like stocks.
Wu Yingji also said: "The original intention of raising funds and offering shares is quite good, and it can relieve the temporary difficulties of the merchants. However, the stocks are tumbling, which is really short-selling. The stock price has risen ten times, and neither a grain of rice is produced nor a pot is created. This thing Ignorant of people’s hearts, there may be people who like to gamble and spend a lot of money, and finally ruin their families. If the people in the city are like this, once the stock price plummets, many people will go bankrupt.”
Wu Yingji is very knowledgeable about economics, and participated in assisting Song Yingxing to compile "Economic Knowledge", which has been renamed "Economic Theory".
These two stood up to oppose, and the other cabinet ministers immediately echoed, all resisting the establishment of the stock exchange.
Zhao Han asked Fei Chun: "You have managed Datong Bank and the Ministry of Finance for a long time. What's your opinion on this?"
"I can't help it." Fei Chun didn't agree or disagree, just said these four words.
"Where can it be unstoppable?" Wu Yingji said, "But if there is a public offering of shares, the license of the trading company will be revoked. If things go on like this, no one will dare to issue shares again."
Fei Chun said: "Mr. Wu Ge also said that the original intention of raising funds and offering shares is quite good, and the fear is that the people will buy short and sell short. However, short selling and short selling have already existed, and they are everywhere in Jiangsu, Zhejiang and Shandong. Cotton farmers sign a contract, agreeing how much cotton to purchase in the coming year, and no matter what the cotton market will be next year, the price will not be lowered or lowered."
"I know about this," Wu Yingji nodded and said, "but if you buy cotton in advance, you will have the real thing, unlike stocks, which are just a piece of paper."
Fei Chun smiled and said: "Stocks are not paper, they really have shares in a trading company, and it is not much different from a cotton purchase contract."
The three provinces of Jiangsu, Zhejiang and Shandong are all cotton-producing areas. Local merchants purchase cotton in advance. Due to the shortage of cotton in recent years, this pre-purchase contract has been completed.
The merchants in the county are responsible for the purchase and signing of contracts. They only need to pay a small deposit, and then sell them to big merchants in the state capital at a higher price. The big merchants in the state capital sit together and jointly control the cotton price according to the weather conditions of the coming year, and resell the cotton purchase contract price to the textile mill.
Cotton farmers still get the same money, but the cotton has been resold twice.
Wu Yingji said: "Buying short and short selling cotton contracts, regardless of profit or loss, is a matter between merchants. But this stock is related to Shengdou Xiaomin!"
Fei Chun sighed: "Oh, stocks can allow more money to flow. I have also read your "Economic Theory", and the benefits of money flowing can completely outweigh the disadvantages brought by stocks. When planting something, we should not think about how to ban it, but how to control it. Wouldn’t it be good to use the taxes collected from buying and selling stocks along the coast to build bridges and pave roads inland?”
Wu Yingji did not refute immediately, but weighed the pros and cons.
The rest of the ministers looked at the emperor. Many of them heard of stocks for the first time.
Zhao Han has released the secret performance sent by Zheng Sen. This is the only information about the stock, it is difficult to make a judgment in the short term, and the current speakers have not thought through it.
Zhao Han finally spoke: "Like cotton pre-purchase contracts, these are called 'futures'. Futures and stock certificates must be printed by the Ministry of Finance, and information should be filled in the blank space when trading. In Guangzhou, Shanghai, Dengzhou , the establishment of a stock exchange. Futures and stock transactions must be carried out in the exchange. Private transactions are not recognized by the government. Both futures and stock transactions are subject to taxation. The Ministry of Finance will try to determine a tax rate for the specific amount to be collected. , and then adjust according to the situation of the exchange.”
The three major exchanges, Guangzhou and Shanghai are easy to understand, why is there another one in Dengzhou?
Because Dengzhou is the largest trading port in the north, most of the ships from Shandong to Liaoning, North Korea, and Japan depart from Dengzhou. At the same time, Shandong is the largest cotton-producing area in the country, and the cotton futures trading here is the most frequent.
Zhao Han continued: "In order to prevent people from arbitrarily manipulating securities prices, strict regulation is needed!"
"First, determine the daily trading time. The opening of the transaction is the opening, and the closing of the transaction is the closing. The price of the first order at the opening is the opening price, and the price at the last minute of the closing is the closing price."
"Second, the exchange must have traders. For all securities transactions, buyers must fill out the purchase form and submit it to the trader for trading. When taxing, the completed purchase form will be used as evidence."
"Third, the securities purchase form must be filled in with quotations. Before the opening of the market every day, bid half an hour in advance, fill in and submit the purchase form. In the first 10 minutes, you can cancel the order; in the middle 10 minutes, you are not allowed to cancel the order; in the last 10 minutes, you are not allowed Cancellation of orders is not allowed to apply for transactions. Traders must rewrite the price on the blackboard at any time and publicize it, so that buyers can know the details."
"Fourth, the party that sells securities must also submit a sales review. In the future, securities transactions will no longer be one seller to one buyer, but a group of sellers to a group of buyers. Traders will match buy and sell orders, and the buying and selling prices will The same application can be effective immediately."
"Fifth, if the price of a security rises or falls by more than 15% in a single day, the trading of this security must be stopped, and the price will be re-priced the next day."
"Sixth, commercial companies that issue shares to the public must be strictly audited to prevent people from maliciously accumulating money."
When the six rules were said, the ministers were all confused, and even couldn't understand many professional terms.
Zhao Han also has a half-knowledge of securities trading, so it is not easy to say these things. More rules have to be added in actual operation. If you believe in the wisdom of the public, they will make up or take advantage of loopholes, and then force the court to make changes.
Before the ministers returned to China, Zhao Han immediately said: "Datong Bank will be dismantled and divided into the central bank and commercial banks. Official tickets, military tickets, silver dollars, and copper coins are all issued and managed by the central bank, and commercial banks and private banks are also issued and managed. Managed by the central bank…”
"Reorganize the private banks and banks, and change their names to banks in the future. Private banks must pay reserves to the central bank. The cash in the bank's inventory must be handed over to the central bank for safekeeping in proportion. This money is called reserves. If a private bank encounters a run, if the funds are insufficient, they can apply for payment from the reserve fund. Once a bank uses the reserve fund, it must be strictly investigated afterwards, and the bank’s license will be revoked if it is difficult to operate.”
"The ratio of reserves can be adjusted at any time, but it must not be lower than 20%. Prevent private banks from absorbing too many deposits, and use them all to lend to commercial companies. In the event of a run, there is no money to give to the people!"
"Your Majesty is wise!" Fei Chun immediately shouted.
The suggestion of the reserve fund was put forward by his cronies.
Private banks used interest to absorb deposits, starting from the Zhengde and Jiajing years, which stemmed from the rapid development of the commodity economy.
After the establishment of the Datong New Dynasty, industry and commerce prospered rapidly, and the savings of the people also increased. In this way, the banking industry will prosper. Business owners need money to expand investment, and ordinary people want to save money to earn interest. The two sides hit it off.
The number of banks and ticket offices has increased rapidly, and the imperial court has rectified them, but they cannot keep up with the pace of development in recent years.
Private banks and ticket offices play wildly for profit.
A few years ago when the customs was rectified, many maritime merchants were involved in the case, unable to pay huge fines and closed down. The banks and bank accounts that lent them money could not be recovered due to the large amount of loans. After the news spread, more than one bank suffered a run. As a result, the bank went bankrupt, and the people couldn't get their deposits back.
In addition, Datong Bank has too much power, and the scope of its intervention is too wide, causing many chaos.
Taking the opportunity of the establishment of the stock exchange, Datong Bank happened to be split up, the powers and responsibilities of the central bank and commercial banks were clarified, and the very irregular private banks were rectified by the way.
The Banking Regulatory Commission and the China Securities Regulatory Commission should also be established accordingly.
After the imperial meeting ended, many ministers did not understand it, and asked Fei Chun, Wu Yingji and other professionals about the situation.
Two months have passed, and various detailed rules have been formulated. For example, 35% of people's savings deposits must be taken out as a reserve fund and handed over to the central bank for safekeeping. For corporate deposits, only a 20% reserve is required.
The decree was issued, and all over the country, chickens and dogs jumped.
More than 20% of the banks and ticket numbers simply cannot provide enough reserves. The deposits they took in were loaned out in a blink of an eye. This is because there are too many companies that need money.
For this type of bank, there is a three-month deadline for rectification. If you can come up with a reserve fund, it will be renamed as a bank to issue a license. If you can't come up with the reserve, then sorry, don't do banking business in the future.
Bank practitioners complained a lot, saying that the imperial court was plundering people's wealth.
But in the face of a strong government, they can only complain, and they have no courage to resist at all.
After this rectification, Datong China's banking industry is on the right track, and money houses and bank offices have become a thing of the past.
And in the winter of this year, the three major exchanges officially opened.
The first to feel happy are the owners of cotton spinning factories. They are finally not subject to cotton suppliers. They were raised prices at will in the past, and they will be able to buy cotton on the exchange in the future. Although still under the control of others, there is less room for black box operations, and most of them can be placed on the table.
Those porcelain suppliers in Jiangxi were already engaged in porcelain futures, but now they are required to only do so on the exchange.
What is more gratifying is the small and medium-sized maritime merchants. The supply of goods is clearer and clearer, and you can see it when you go to the exchange. Big merchants want to monopolize the supply of goods, they have to spend real money, and they can't do things in the dark.
Everyone is half-knowledgeable about this thing, and many people came to inquire about the news before the exchange opened.
There are still many companies asking about the rules of listing and issuing shares. They also want to issue shares to obtain funds.
Even merchants from the Sichuan-Shanxi area went to the coast to inquire about the situation. The economies of these areas are not as active as those of the coastal provinces. Many old rich men have hidden their silver in their cellars, but now they want to participate in securities trading, because they heard that this can make money with money.
On the opening day of the three major exchanges, there were not many types of stocks and futures, but investors crowded the exchanges.
(end of this chapter)
