Holy Roman Empire

After entering 1855, the Austrian government's economic conferences increased. In addition to dealing with non-performing assets, the most important thing is currency reform.

Unlike the beginning of succession, Austria's gold and silver reserves are insufficient, and the government's economic focus is to stabilize the currency value.

During the Near East War, a large amount of gold and silver traded with Russia flowed into Austria, the embarrassment of insufficient gold and silver reserves has been improved, and the necessary conditions for gold standard reform have been met.

The scope of currency reform is too wide, and it is not Franz who can make a decision in the first place. The cabinet government has conducted many arguments and still has not been able to reach an agreement.

Most countries are now using the gold and silver reset system, or if gold or silver is used directly as currency, there are still few gold-standard countries.

In the government building, those who support the reform of the gold standard system are in debate with the advocate of the gold and silver reset system. This is the last time Austria has debated.

The viewpoint of that party can be won, so in the future, Austria will achieve a standard system.

Which one is better is actually not the system itself.The most suitable is the best, and the different standard systems are adopted in different time periods.

In order to avoid becoming a martyr too far ahead, Franz gave the final decision to the elites of this era. The judgment of these professionals is always much stronger than that of his layman.

Franz asked: "This meeting is only to discuss the currency standard system, prohibit any unrelated topics, and prohibit personal attacks.

Please think about it and then express your opinions. Your opinions will determine the future destiny of the new Holy Roman Empire. All factors must be considered comprehensively.

Prime Minister, you come to preside over the meeting."

Let the younger brothers get involved in the quarrel!

If it is to persuade the cabinet minister, Franz does not mind occasionally going out in person.Now in such public occasions, the emperor personally went out to debate, and he was too imposing.

Xiangzhuang Wujian intended Pei Gong. This time the currency reform will not be so simple, otherwise Franz will not propose the gold standard reform so early.

The deeper intention of currency reform is to unify the currencies of the New Holy Roman Empire and gather the coinage rights of various states.

It's time to seize power. Franz, who has always been cautious, will naturally pay attention to eating. The respect in the face must be given first.

It is obviously undesirable to directly change Austrian currency into the legal currency of the empire.What Franz wants is a united empire, but not an empire full of contradictions.

Now, with the opportunity of the reform of the standard system, the issuance of new currencies to replace the original currencies of various countries is to take care of everyone's feelings.

Anyway, regardless of the final result, the minting rights will be taken away by the central government.

Prime Minister Felix replied: "Yes, Your Majesty!"

After listening for a while, he said: "The meeting of the New Holy Roman Empire's currency standard, the last enlarged meeting will now begin, and the representatives will speak in order."

There are many people attending the meeting, but not many people are qualified to speak. Apart from the cabinet ministers, only the representatives of the states are eligible to speak.

One each from Württemberg, Saxony, Frankfurt, Hesse, Lombardy and Bavaria, and four from Austria.

This is based on the principle of generating one representative for every 10 million people (less than rounded up), and no less than one representative for each state, and each state government appoints representatives.

This is a system designed by Franz himself. The main purpose is to avoid confusion and delay the meeting time.

The results of the final meeting were decided by the representatives of the states and the five cabinet ministers.Well, this is a political show. A total of fifteen people can vote, and eleven of them are personally appointed by Franz.

Frankfurt representative Hans said: "Everyone, the gold standard system is not bad, the problem is that our domestic gold production cannot keep up with the growth rate of commodities.

According to the current growth rate of domestic industry and commerce, we need to increase at least a dozen or twenty tons of gold reserves every year before we can issue enough currency to ensure the normal operation of the economy.

At present, the annual gold production of the New Holy Roman Empire can only meet one quarter, how can the remaining gap be filled?

Rely on foreign trade to buy gold from the international market?

The Near East War is over, this opportunity for war money is gone, and it is almost impossible to obtain such a large surplus in international trade.

In order to protect the development of the domestic economy, it is best for us to continue to implement the current reset standard system."

According to the current conversion of Austrian currency, this means that the annual trade surplus must reach 14 million rupiah. Obviously this is only an ideal number.

In fact, it would be more difficult to exchange gold for shipping back to the country and use it as a reserve currency for currency issuance.

The representative of Bavaria, Jungler, objected: "Mr. Hans, you are too worried. The lack of gold production is not impossible.

Now that we have abolished the gold-silver mixed standard, we don't need a large amount of silver to reserve. We can take this silver to buy gold on the international market.

At present, many countries in the world are resetting the standard system, and there is almost no obstacle to exchange silver for gold.

If this is not possible, we can also increase the leverage ratio. As long as the government ’s credibility can be guaranteed, there will be no deficit in international trade, resulting in gold outflows, and inflation will not occur.

Whether it is the gold standard or the return of the standard, in the final analysis, it all depends on credibility. If the government does not have enough credibility, unless gold and silver are directly used as currency.

Moreover, resetting the standard system is not so good.On the surface, there is more silver as a reserve fund, and we can print more banknotes.

But in fact, we all know that the price of gold and silver is changing at any time.A new discovery of gold and silver mines is enough to change the price ratio of gold and silver in the market, thus bringing strong fluctuations to the currency market.

Under the reset standard system, the currency market often fluctuates, and the currency value changes that may occur at any time have seriously affected the development of domestic commercial trade."

The two almost spoke out the advantages and disadvantages of the two standard systems. If there is enough gold reserves, the gold standard will naturally prevail.

On the contrary, it is only possible to reset the standard with gold and silver.There is no need to consider the credit-based exam, and this era simply does not work.

When international trade is settled, you don't need to use gold and silver settlement methods. Who will recognize "credit"?

Can't you just use the pure silver standard?Everyone knows that the current silver production in the world is increasing year by year, and the exchange rate of gold and silver is showing a downward trend.

If the silver standard system is adopted, the money market is stable, but it is stable in a state of long-term depreciation.

This is not very fast now. By the end of the 19th century, more and more silver mines have been discovered. By then, will the currency not collapse?

Saxony asked Frank on behalf: "Before you discuss this issue, do we have to figure out how much gold and silver reserves are in the hands of the government?"

"The central government of the New Holy Roman Empire plus the local government has a total gold reserve of 382.6 tons and a silver reserve of 8728.9 tons." Finance Minister Carl replied

This figure is somewhat unexpected, and many people do not know that the New Holy Roman Empire already has so much gold reserves.

This is not surprising. Since Franz succeeded to the throne, the Austrian government has subconsciously started to increase its gold reserves.

Specifically, when it comes to external settlement, reduce the gold expenditure as much as possible, and pay by silver instead.Anyway, under the gold and silver reset standard system, governments of all countries have the same attitude towards gold and silver.

During the Near East War, the Russians contributed a lot of gold and silver to Austria, increasing the Austrian government's gold and silver reserves.

The Austrian government accounted for 90% of the gold and silver reserves of the New Holy Roman Empire, which naturally increased the domestic gold reserves.

These golds seem to be many. In fact, after the reform of the gold standard, they are only enough for early use. As the economy continues to develop, this reserve needs to continue to increase.

In this era, the total amount of gold was limited. Before countries implemented the gold standard reform, most of the gold was kept in the form of luxury goods in the private sector.

Hearing this good news, advocating gold standard reform Austrian representative Jurgen said: "Our gold reserves are already large. If we now carry out the gold standard reform, we can also buy gold from the private sector.

At present, most countries are implementing the gold and silver standard system. We have reformed the gold standard in advance, and we can also use silver to exchange a batch of gold back.

Once all countries have started to reform the currency standard, and the silver that has lost its currency status, the price must fall sharply. Finally, it is estimated that even one-third of the current value cannot be maintained.

From the perspective of long-term development, stable currency value is very important. The British took the first step first. If we do not keep up, we will lose out later."

The gold standard system was originally proposed by the British. As early as 1823, the British began to engage in the gold standard. They have enough overseas colonies, and the gold mined from the colonies is enough to support them to implement the gold standard.

This is not possible in most European countries. Although everyone knows the benefits of the gold standard, they do not dare to follow suit without sufficient gold reserves.

The gold and silver reset standard system is a substitute for insufficient gold reserves. If the new Holy Roman Empire enters the age of the gold standard, this topic cannot be avoided.

Frankfurt representative Hans shook his head and said: "Monetary reform is of great importance. If you step out and then want to take it back, the price you paid is not a fraction of a star.

Even if we scan goods in the international market now, the amount of gold we can get is limited, and it can be very difficult to exchange for one hundred and eighty tons.

The gold standard system has been established and we can support it in the early stage.But what should we do when we find that our gold reserves are insufficient after ten years, twenty years, or even longer?"

After listening to Hans's explanation, Franz finally understood why they would resolutely oppose the reform of the gold standard. In the final analysis, there was still insufficient gold reserves.

The development of the New Holy Roman Empire is fast. Since the economy has developed, the amount of currency needed in the market will naturally increase.

Increasing the currency circulation in this era is not only about printing tickets, but also necessary to have sufficient reserves, or enough gold and silver to be put there, so that the people can rest assured of the credibility of the government.

The idea of ​​obtaining gold from a colony became lingering as soon as it appeared in Franz's mind.

This is the most effective and reliable method. South Africa has the most gold mines. Unfortunately, the British have occupied the coastal areas. Unless they can bypass the inland, they can only look away.

This unreliable method, Franz eliminated it.The inland areas of Africa ca n’t be mixed, it ’s a real wilderness.

Even if the traffic is cleared and the gold mine is finally developed, it will still be subject to competition from European countries.Austria is not a British empire, but there is no ability to cut off everyone from the sea to join the spoils.

Franz didn't want to make wedding dresses for others, and spent a lot of money to invest a lot of money. Finally, everyone came together to divide up, and it was impossible to collect Austrian costs.

Think again about other regions ...