.

As the outflow continued, prices continued to fall, factories continued to collapse, and the economy began to collapse, the Ministry of Finance of China finally announced the monetary reform order on November 3, 1911, announcing the implementation of the "gold" standard. This was a risky action, and at the time, it was also the best choice in the worst case.

The Monetary Reform Act stipulates that the RMB issued by the People's Bank of China is legal currency, and all payments of public and private funds are limited to RMB. Cash silver and silver dollars are not allowed. All violators are confiscated and legally punished. All silver coins, raw silver, etc. held by public and private agencies and individuals are handed over to the designated banks of the state to exchange for legal currency; in order to stabilize the foreign exchange price of fiat currency, banks will purchase and sell foreign exchange without restrictions. At the same time, the silver balance tax is not profitable from 6.=.%.

The importance of this monetary reform is that China has since broken away from the silver standard and adopted the gold standard, which has separated China's currency value from silver and can effectively stop the outflow of silver, thus it is possible to overcome economic difficulties from the financial system (and a more fundamental aspect).

However, this currency reform contains great risks. Its success and failure depend on two conditions: First, whether the exchange rate of the new currency can be stable, that is, whether the currency system can be stable and gain the trust of the people. In the final analysis, whether the Chinese government has sufficient gold reserves; second, whether the silver held by the private sector can be handed over to the Chinese government in exchange for an unstable RMB.

The first point is almost impossible in people's opinion. Chinese people have the habit of consuming gold, but they have not used gold as the main currency. The Chinese government has never used gold as the currency. In just one year, China has accumulated much gold reserves!

This is the second point, and the value of the new currency can be stable and the currency reform will be basically successful. Therefore, China's currency reform also involves Asian policy issues of various countries. Britain, the United States and Germany are all facing a major choice.

As people have predicted, the United States has adopted a clear negative attitude towards China's currency reform. The US ambassador to China issued a statement on the fourth day after the currency reform, saying: "China's currency reform only puts 400 million Chinese people in a major disaster"; then, the US Foreign Ministry passed a statement and opposed China's currency reform. The British Foreign Minister also issued a statement saying that China's currency reform "ignored the new economic policy that stabilizes the Chinese economy and disrupts Asian peace, which is very unwise."

China's currency reform is considered a big adventure, and it is also seen as a contest between China and the British and American forces in the economic field. On January 15, 1912, China began to withdraw from the currency union and took all possible measures to stabilize this currency reform. I want to prove that China has the ability to stabilize its economy. Interference from other countries will surely fail.

The United States and Britain tear open the veils of everything and press forward step by step, hoping to destroy the stormy Chinese economy in one fell swoop. The place where Britain and the United States are concentrated on attacking is China's gold reserves. Since China does not have a short-selling mechanism, this time, we can only use the old method to artificially raise the gold price in order to obtain greater benefits.

This time, the Americans and the British had to tear off their disguise. The two state machines began to take action in person, and even the gold committee for disguise land was not adopted. The finance ministries of the two countries directly entered the market and purchased a large amount of gold in order to create a price difference.

Here we can clearly see how the United States and the United Kingdom used silver transactions to destroy China's economic territory without losing money. On the one hand, by increasing silver reserves to achieve silver tightening, the silver price has risen. The US government's investment is extremely limited, and it is more of a call for hot money from all over the world to impact silver. When silver enters the country, a large amount of taxes can be imposed, which is actually a profit.

Those hot money also makes money when the price of silver continues to rise. Until the final price falls, they are all making money. In order to prevent the outflow of silver, the Chinese government will inevitably increase its silver reserves in large quantities. Therefore, generally speaking, the entire cost in the end is borne by the Chinese government, which completes a perfect robbery.

However, this time the Chinese government did not follow the rules of the game. They actually gave up silver and wanted to clear the silver at one time. In this way, the losses will be borne by the United States and international hot money, and the large amount of silver reserves of the US government will depreciate significantly. Moreover, as the scope of silver is greatly reduced, these silver will fall to an extremely low price, which is equivalent to losing tens of billions of wealth at once.

At this critical moment, the UK's attitude is the wisest. On the same day that the Chinese government announced the currency reform, the British Foreign Office approved the "King's Regulations" issued by the British Embassy in China, prohibiting British citizens in China from using silver and must comply with China's currency reform laws. Violators will be punished according to law. This attitude of the British is based on a wise judgment made after judging that the price of silver has fallen and no longer has speculative value. Moreover, the UK does not have much silver reserves, so naturally it will not offend China because of this matter.

The United States is different. The United States has a large amount of silver in its hands. If it is handed over, it will be a big loss to replace the RMB according to the original price. Not to mention the rest, it will be difficult to get away with the exchange of RMB. Under the supervision of the Bank, Taxation and the Independent Commission Against Corruption, those hot money entering China are difficult to survive. No one is willing to risk being targeted by state organs to exchange for these hot money.

Silver. If it is not exchanged, the price of silver will become lower and lower, the biggest damage.

So on the second day after the currency reform was implemented, the US ambassador to China threatened Li Zilus, condemning Sino-British cooperation for excluding the United States, and threatening to "provide a serious warning to China." But Li Zilus' answer was that the UK would hand over silver to the Chinese government at a price of one (renminbi) to one (silver dollar) in accordance with the Chinese law.

The UK's attitude played a considerable role at that time, because the capital owned by British banks accounted for 42% of the total foreign banks in China, and it was in an important position.

Bank of America's attitude, as mentioned earlier, is firmly opposed to handing over silver land. When Shanghai Foreign Bank discussed the transfer of silver on July 7, British Mercli Bank advocated the transfer of silver to the Chinese government. Citibank firmly opposed it, and its reason was not politically, but requiring the Chinese government to compensate for the price difference between Chinese and foreign silver.

However, until 326, 1912, China was still unwavering. In view of the general trend, the United States reluctantly agreed to hand over silver. The different attitudes of banks between Britain and the United States reflected the policies of these countries towards China at that time. Britain believed that China was a partner, a competitor, but not an enemy. The United States believed that China was its own mortal enemy, a natural enemy, and would stop it from death no matter what.

Through the currency reform, the Chinese government concentrated about 500 million ounces of silver. Then, the 50,000 ounces were directly invested in the US market. The US government did not care about the Silver Group at this time. This proves even more that the Silver Group is just a cover of the US government, a tool used to cover up the US government's butcher knife. When this cover or tool becomes an obstacle to the butcher knife, it will immediately disappear, revealing the bloody long knife behind it!

On the one hand, under the rush of high silver prices in the world, China's resolute means have led to silver smuggling no longer benefit the United States. In connection with the future financial situation, the Morgan Consortium believed that the Chinese would never return to the silver standard, and he also believed that China and Germany secretly colluded to help China implement the gold standard smoothly. After repeated discussions with their advisers, the Morgan Consortium came to a conclusion: lower prices. Only by lowering the world silver price can the Chinese stop seizing huge amounts of funds from silver smuggling and strengthening its national strength;

Only by lowering the silver price can China avoid a large amount of silver selling in the world silver market. Of course, it is very important that lowering the silver price will enable the Chinese government to shift the channels for the place of silver to sell from the world silver market to the United States, and thus control China's currency. This issue was a major event in the minds of the Morgan Consortium at that time. But the situation was urgent. When China proposed to abandon the silver standard for about a week (November 13).

Just when China's currency reform was at a critical moment of success or failure, Citibank suddenly rushed to China's foreign exchange fund and purchased a large amount of foreign exchange, causing China's foreign exchange reserves to drop suddenly (only 5004,000 pounds of gold reserves left). The new currency system is in danger and is shaking.

In order to cope with the Americans' destructive foreign exchange purchases to maintain the credit of the new currency, the Chinese Ministry of Finance immediately realized the seriousness of the situation and immediately negotiated with the emperor to issue a formal note to the United States. In this note, the Chinese Ministry of Finance pointed out with great certainty that given the United States' attack on China's fiscal and financial territory, once China collapsed, the United States will be affected terriblely. On the contrary, if the United States no longer causes trouble at this time, China can consider handing over the sovereignty of the already independent Quebec to the United States.

The United States did not give any positive answers. Even when it heard the proposal to return the American West, the Americans showed no sign of loosening. But soon, the United States began its own new round of offense.

Of course, the change in the attitude of the Morgan consortium is related to the increasing pressure from the top leaders of China. Under the threat of Zhao Gang's war, the US government retracted its own hand and began to use the Morgan consortium more, a hand in the dark to realize its intentions. As a consortium, the Morgan consortium recognized that the US silver policy, in addition to pleasing domestic interest groups, should also look at the problem from a broader perspective of world politics. Compared with the silver group, China is too strong as a country and can only carefully achieve its goals.

Although the Morgan consortium is very careful to avoid angering China, it still needs to do what it should do, but it only needs to apologize verbally." In order to reverse the "stupid" silver policy of the United States, with Roosevelt's consent, the United States no longer supports the world silver price, so the silver price gradually fell.

On December 11, 1911, the world silver price began to drop from 0..5 yuan per ounce to 0..1 US dollars, and fell by 0.0 in the next 40 days.: smuggling wind, but for China, due to the decline in silver prices, the power of using silver to enhance the foreign exchange reserves in the new currency system was also weakened, and thus encountered the same urgent new difficulties.

What the United States is waiting for is this opportunity. If there is no sufficient gold reserves and cannot buy gold by selling silver, then China's gold standard is a joke unless China follows France and breaks away from the precious metal standard. But if that happens, China will no longer be a member of the world economy and is isolated and will forever lose the foundation for development. Therefore, the most important thing is the amount of gold reserves.

If this collapses, the new currency system will collapse, and China will suffer a greater blow, which is far more than silver

Zhao Cheng's is much bigger. The silver crisis is just a temporary failure in China's economy, which means that China's economy has lost its hemorrhagic function while losing its hematopoietic function.

The Morgan consortium believed at the beginning that there was a "currency war" of the RMB and the US dollar in Asia. He believed that these powerful countries wanted to interlock Chinese currencies with their respective currencies. Whoever could do this would win an advantage in this currency war. Li Ziros' visit to China had a very obvious intention to interlock Chinese currency with the British pound, and China had always wanted to establish a strong RMB group, which is also well-known.

This strengthened the doubts and anxiety of the Morgan Consortium on this issue. Therefore, the Morgan Consortium never gave up any opportunity and used the Chinese currency crisis to force the Chinese currency to interlock with the US dollar. On October 28, 1911 in China.||In the difficult times, China asked the United States to sell 200 million ounces of gold to overcome the financial difficulties.

The Morgan consortium believed that this was a good opportunity to take advantage of others' danger. He told Roosevelt: "This is a good opportunity for us. If they are almost overwhelmed by China, they will hook them up with the US dollar to avoid them from clinging to the British pound." This idea coincided with Roosevelt's idea of ​​using this method to maintain a "foothold" in China. On the eve of China's currency reform (in November, the Chinese Finance Minister once again asked the United States to acquire silver and provide gold assistance.

This forced China to propose a package deal for the sale of silver and loans to the United States to enrich the foreign exchange fund. China's request prompted Washington to suggest inviting China to send representatives to the United States for direct consultation. This is a step in the gradual shift of US Far East policy to take the initiative. Although the State Department is still very careful, afraid of taking a wrong step, it aroused a fierce reaction from China.

However, the suggestions put forward by the Americans are really unacceptable to the Chinese people. This suggestion is actually to hand over all the lifeblood of China's economy - the banking industry to Americans for management. >: The Chinese people only agreed to hand over 20% of the local gold reserves in exchange for such a generous amount of property.

After the news came back, people across the country were in panic. In the US futures market, gold prices began to plummet and silver prices began to soar. All of this indicates that China's currency reform will end at a huge price.

51, 1912::) A huge futures delivery was made. Among these two delivery, the name of His Majesty the Chinese Emperor appeared in the public's sight. At the same time, the total amount of two transactions was as high as 600 million US dollars, which made him known to the world again.

Futures are contracts that both parties agree to buy or sell a commodity or securities at an agreed price on a specific date in the future (delivery date). The agreed purchase price is indicated in the futures contract. However, if the delivery date is not reached, there is no need to deliver funds. Both buyers and sellers of the futures contract believe that it is necessary to place a certain deposit when the futures contract is signed. As compensation from a party to the futures contract to the other party in the futures contract to break the contract, in order to fully compensate for material losses that change with the market price. The amount of the deposit also changes with the market every day. If the amount of the deposit is higher than the loss itself, the excess will be refunded to the party to break the contract.

Unlike formal trading, futures have greater risks and greater returns. There are two different types of participants in the futures market. Resell futures contracts. Speculators themselves do not produce futures commodities and have consumer demand for such commodities. Speculators buy futures contracts at low prices and sell at high prices and then buy at low prices. The purpose is to earn the difference in prices between contracts and transactions to make profits. Safe-averses are the opposite of speculators. They may be futures commodity producers. Perhaps they have the purpose of eliminating futures commodities to avoid price losses caused by unforeseen risks.

The futures trading that Zhao Gang did was judged by Americans as a safe-haven purchase, and was an insurance investment that avoided currency reform. Now it seems that although Zhao Gang knew the best way, he did not use the national power to protect against risks, so the income of hundreds of millions of yuan obviously cannot offset the losses that followed.

More than a decade later, the day before Morgan died, this giant in the American financial industry said the following words with sigh

"The (Chinese) Emperor is a mysterious person. I think even if he doesn't become an emperor and changes his career in finance, he will achieve much better than me. He will be better than Carnegie, oil, and Rockefeller. In fact, it is useless to say that these things, he only used half of his energy to defeat all three of us! That person, perhaps he really told the Chinese people, was the gods from heaven who came down to earth!"

It rose sharply on 55th of 1912, but at this time, all the people discovered that the Emperor of China once again purchased almost all the platinum and the platinum mine that accounted for 85% of the platinum production.
Chapter completed!