Chapter 366 Dampier

The thinking of the Black Dragon Emperor is not difficult to understand. The people of Elradia are not stupid. It is not that there are similar scams and patterns in history. It’s just that if ordinary people play this way, they will basically be exposed and bankrupt in the end. But for Black Wing As far as the empire is concerned, as long as it is operated properly, there is basically no such possibility in a short period of time.

Profit and trust are the key. Profit makes the borrower willing to hand over gold coins to Wang Ting, and for the trust of the empire, the borrower never has to worry about not being able to get it back when he wants to claim it back. , unless the money is really needed urgently, no one will withdraw money just out of fear.

In fact, Caesar thought of this plan a long time ago, but due to the timing, he never used this model. However, as the rule of Black Wing became more and more stable, the sense of belonging of the northerners to the empire grew day by day. A similar financial model is on its way.

Caesar did not study economics in his previous life. To be more precise, he should have known nothing about it. However, due to the information collected from the information explosion world, this black dragon did understand some Eladian people. Things that you don't understand or don't understand, and these things can often come in handy.

The construction of the bank must be laid out, because it is only the first step. After this model is gradually accepted by people and the strength of the empire is improved again, the royal court will inevitably issue currency to replace precious metals for transaction flow.

Well, that's going a little too far... Borrowing from the public doesn't sound good, so Caesar came up with a new name for the model: Blackwing Bonds.

"The new name is just the beginning. If you want it to be effective, you must at least establish a formal and complete system so that it not only looks like it, but also works."

Ren did not leave, but recruited more assistants to listen to the teachings of the Black Dragon Emperor: "This requires many rules and regulations to restrain everyone, including us."

Caesar was sitting on the throne, and the black shirt next to him was lowering his head and concentrating on writing records, making sure that no words of the Black Dragon Emperor were missed, for later reading and thinking.

"Now I will tell you some necessary details. Note that this is not all. After you leave, you have to think and supplement yourself, and report to the royal court a week later to finalize the final detailed regulations."

Caesar said: "A mature economic system must consider many things, stability, order, and development... But now the empire has just started, so you only need to consider stability and order for the time being. The so-called stability refers to financial stability, and the only source of income for the Imperial Bank at this stage is the Blackwing bonds, so it must be ensured that the public will not ask for repayment at will."

"You mentioned it before, profit." Ren responded.

"If you want to ensure financial stability, you can't just rely on the profit layer."

Caesar said: "It's true that people can get income from buying bonds, but they are skeptical of things that are too easy to get. We just changed the name of this kind of lending. Now you have to tell the people: Blackwing bonds are recognized and protected by the royal court law. , the Imperial Bank refused to redeem the gold coins before the agreed time."

"But in this way, the public may not be willing to borrow... oh, to buy Black Wing bonds." Ryan reminded.

"Don't be so harsh, Ren." The black dragon shook his head: "If the people who have already purchased ask for replacement gold coins again and again, the bank can let him redeem it in advance, but punishment is necessary. The bank can pass such as handling fees, liquidated damages Wait for the deduction in a clever way, but remember, this kind of deduction cannot involve the principal.”

"Another example...the Imperial Bank refused to sell bonds to this person?" A young assistant of Rennes interrupted.

"He has a good brain."

The black dragon nodded approvingly at the young black shirt: "In a more formal way, this is called disqualifying the person from buying Blackwing bonds again."

"After laying out the restrictive conditions, the next step is to increase the stickiness of the Black Wing bonds. At that time, the Imperial Bank must tell the public that the profit from buying bonds increases year by year.

For example, the redemption profit in the first year after purchase is 1%, the profit in the second year will rise to 2%, the third year will be 3%, and so on until the profit rises to 5% until. "

"The reason for this is actually to give bond buyers an impression that the longer you buy bonds, the higher the return. For example, if you have 1,000 gold, it will still be 1,000 gold if you bury it at home for a year, but One year after buying the Black Wing bond, it turned into 1001 gold, how do you think the public will choose?"

"No choice."

His Majesty's approval gave the young black shirt confidence, and his voice became louder: "Not only that, as long as the authority of the empire is guaranteed, people will gradually develop the habit of using the money to buy blackwing bonds instead of not buried, and unless the money is needed urgently, they try not to redeem it.”

"That's right."

Caesar let out a deep laugh: "Now I'll give you a question to think about: Suppose you are a businessman and you buy an imperial bond worth 10,000 gold coins for eleven months. Because of funding problems, you are in urgent need of gold coins. If you redeem the bond immediately, you can only get 10,000 gold coins, but if you wait another month, you can get an extra 100 gold coins, what are you going to do?"

"Of course I have to wait. One hundred gold coins is what I can earn after serving the empire for a year. How can I not wait?"

"Idiot, didn't you hear what His Majesty said? There is no time to wait, the merchant urgently needs gold coins."

"Then I have no choice but to redeem it."

...

The black shirts talked a lot.

"His Majesty."

After waiting for a while, the youngest man in the black shirt suddenly stood up and said: "The best way I can think of is to sell this bond at a price of 10,090. To other merchants, in this way, not only will I get my gold coins and profits, but that merchant will also earn ten gold coins after one month."

"What's your name?" The black dragon lowered its head slightly, looking at this tiny human with vertical eyes.

The young black shirt quickly knelt down and said tremblingly, "Dambier, my name is Dampier Sherlock, Your Majesty the Great Emperor."

"You are very good, I have written down your name." Caesar nodded in satisfaction, while annoyed voices such as "Damn, why didn't I think of that" came from the other black shirts.

Dampier's choice is the best choice, yes, but he may not understand that during this operation, the Blackwing bond itself has replaced the value of 10,000 gold coins, that is to say, it has a certain value in a certain sense. function of currency.

After people get used to it, the Imperial Bank will start issuing banknotes, and the Black Wing Court will become the first country in Elradia to use banknotes.

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