Magus Tech

Chapter 107: Medieval monetary system

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After listening to the innkeeper's words, Richard nodded, thought for a while and asked: "In the Jade Kingdom, is the exchange ratio of gold coins and silver coins fixed? What is the ratio?"

"Yes, the exchange ratio is fixed. One standard gold coin can be exchanged for twenty silver coins. The official does not allow people to change it randomly, otherwise they will be jailed if they are caught." The hotel owner said, making a very scared look. look.

But then he quickly glanced around and found no one who was an eyesore. He approached Richard and said quickly: "Of course, on the black market, the price of gold coins can actually be higher, and you can exchange it for thirty pieces." More than silver coins, sometimes even close to forty. Because of this, many people don’t like to pay with gold coins. I don’t want to accept gold coins from you, as I’m afraid you will suffer a loss.”

As he spoke, the innkeeper's eyes shone brightly, and he refused to miss the opportunity to introduce business and said: "If you have a lot of gold coins, guest, I... can recommend you a place to exchange them for silver coins, which guarantees safety and price. justice."

"Uh." Richard nodded and did not answer the innkeeper's words, but he already knew the currency system implemented in the Jade Kingdom.

According to the hotel owner, the Emerald Kingdom is obviously implementing a gold and silver bimetallic system.

This system is generally due to backward science and technology and insufficient gold mining, which results in the need to use silver to supplement the currency market. Therefore, gold and silver will be used as the production materials of standard currency at the same time. Both gold coins and silver coins have unlimited legal solvency and can be freely minted, circulated, exchanged, exported and imported.

This was most common in the Middle Ages.

Generally speaking, under this gold and silver bimetallic system, there are still some subordinate sub-systems.

For example, in the parallel standard system: a commodity has both a gold coin price and a silver coin price, and there will be fluctuations between the gold coin price and the silver coin price. This will cause the price of the commodity to change very quickly, which is not conducive to social development.

Another example is the bimetallism system: currently implemented in the Jade Kingdom, the exchange ratio between gold coins and silver coins is determined by the official through legislation or other mandatory means, and ordinary people are prohibited from changing it, which helps stabilize commodity prices.

Bimetallism is a more superior system than parallel standard, but it is still inevitably backward. One of its big disadvantages is that with development, the phenomenon of "bad money drives out good money" will occur.

This is because the ratio between gold and silver coins is officially mandated and is stable and does not change over a long period of time. In the market, the price of gold and silver often fluctuates. The discovery of a new gold or silver mine will lead to the appreciation and depreciation of gold and silver.

In this case, when the actual value of gold increases, people will melt their more valuable gold coins ("good coins") into gold, then sell the gold and exchange it for silver coins ("bad coins") for use. . According to the regulations of the Emerald Kingdom, one gold coin can be exchanged for 20 silver coins, but if gold is sold as gold, it can be sold for at least 40 silver coins. That's why in the innkeeper's introduction, the black market will give a ratio of nearly 40 silver coins that can be exchanged for 1 gold coin.

It is illegal to exchange gold for silver, but people on the black market are obviously not afraid. After all, just as a philosopher named Marx said on modern earth, capitalists will take desperate risks if they have 50% profits, and if they have 100% profits, they will dare to trample all laws in the world. If you dare to risk the gallows if you make huge profits.

For profit, people on the black market are not afraid of going to jail. They charge large amounts of gold coins to melt and sell them to make huge profits.

If Richard wanted to, he could do this kind of thing, or even do it better.

Richard can earn a lot of wealth and even bring down the entire Jade Kingdom's economy while ensuring his own safety.

After all, looking at a world like the Middle Ages from the perspective of the future, especially the economic aspect, is simply extremely fragile, like a baby. Only by developing to the gold standard can there be a certain degree of security.

But Richard didn't want to do this, and he didn't make money in this way in the Blue Lion Kingdom. This is because, in Richard's view, as long as he can obtain the property that meets his own needs, it is enough, and there is really no need to focus too much energy on it.

A large amount of wealth cannot bring progress, only technology and knowledge can bring progress.

It is true that earning a lot of wealth can be used to build a huge organization to help oneself develop technology and expand knowledge.

However, the larger the organization, the more it wants to make huge profits, so the greater the initial investment and later maintenance, and the middle is full of all kinds of instability.

In the early stages of exploring the world, establishing a so-called organization is not worth the gain. If you really want to build it, it would be best to wait until you have achieved certain results in exploring the world.

As Richard thought about it, the hotel owner turned around and called the waiter: "Lester, help this guest choose a room and send his luggage up."

"Hey, okay." A young boy with freckles and brown hair, about twelve or thirteen years old, wearing gray linen clothes, ran over quickly. He nodded to the store owner, indicating that he understood, and went to pick up the suitcase at Pandora's feet very diligently.

I exerted a sudden force, and then... I found that it didn't move.

Um? !

The freckled boy was startled and glanced at the innkeeper with some fear of being scolded. After realizing that he was not noticed, he immediately used all his strength to try to bring it up again.

"ah-"

The freckled boy's voice sounded deep in his throat, his face turned red from holding back, and he barely lifted the suitcase off the ground.

At this moment, the freckled boy was so aggrieved that he almost cried: This... why is this suitcase so heavy

What he didn't know was that after getting the iron ring, Richard did not choose to put everything in the iron ring. He even took out some of the things in the iron ring and put them in the suitcase.

Because Richard is not prepared to use the iron ring as a pure space prop, but is always ready to use it to realize the other three developed functions - "absolute defense of space transfer", "absolute cutting of space scissors", "absolute cutting of space precision" Absolute processing".

In addition, just carrying an empty suitcase, or not carrying the suitcase, but constantly taking out a lot of things, it is easy to make people doubt whether the space props can be not exposed or not.

Finally, the heavy suitcase is actually not a burden as long as Pandora is there.

For these reasons, the suitcase that Richard carried was heavy and would be heavy in the future.

The freckled boy didn't know this, so he was deeply shocked.

When all the strength in my body was exhausted, I reluctantly put the suitcase back on the ground. I felt a little embarrassed and didn't dare to look at the innkeeper, nor did I dare to look at Richard and Pandora.

But Pandora glanced at the boy strangely, gently picked up the suitcase, and walked away.

The young man's eyes widened and he quickly ran forward to lead the way.

Richard thought of something else. He turned to the innkeeper and handed out a silver coin and a letter and said, "I have something to ask you. Please help me ask someone to deliver a letter. It's in Aijin City. The address is written It's in the envelope. Just send it over, and the silver coins will be your reward."

"Okay, guest, there is no problem with this." The hotel owner took a look at the address on the envelope and found that it was not a special place or dangerous, so he immediately agreed.

Richard nodded, turned around and followed the guy, heading towards the second floor, ready to choose a room.