552 Economic Crisis
In Chenyang City, the former Northeast Army General Command has transformed into the current General Command of the National Defense Forces since the National Defense Forces left the customs. As the territory occupied by the National Defense Forces became larger and larger, especially after the establishment of the United Government, the former Young Marshal Zhang Xueliang, which occupied a large area in the city, became the office of the United Government.
Zhang Xueliang, the former commander-in-chief of the Northeast Army, had the best position in the Young Marshal's Office, and was unsurprisingly the office of Li Zongren, the chairman of the United Government.
At this moment, Li Zongren was looking at Li Mengjie, who was sitting in front of him with a wry smile on his face, and could be called his younger generation, without saying a word.
Seeing that Li Zongren, who had married his master in front of him, kept staring at him and not speaking, Li Mengjie asked with a little guilty conscience: "Chairman Li, is there any problem with the commander-in-chief's order..."
Li Zongren nodded affirmatively and said with a wry smile: "It's not that there is a problem, but that there is a big problem... Look at the commander-in-chief gave me: whether it is to cooperate with the General Equipment Department to produce new fighter jets, or to expand the production capacity of major arsenals under the General Equipment Department... In general, one thing is needed, that is 'money'..."
"In such a short time, where did you ask me to get so much money and supplies... Colonel Li, let me tell you the truth that I am very glorious in the position of the chairman of the coalition government, but in fact I have reached the point where a clever woman can't cook without rice...."
"But, because of the sudden invasion of Outer Mongolia by the Soviet Red Army, in order not to distract the commander-in-chief, I have not reported this series of situations, and I will find a way to solve it internally..."
"When I just saw this order, I had already made a calculation in my mind. With the current strength of the major arsenals under the General Equipment Department, if we want to double the overall strength and production capacity of these arsenals, the government must invest almost 150 million US dollars in these arsenals."
"Of course, even if the funds of 150 million US dollars are obtained, it is still twofold to see whether the production capacity of these arsenals can be increased to twice. As far as I know, there are currently three large steel plants in our controlled area. In addition to meeting the current military industry needs, the annual production capacity of the three steel plants can just meet the steel needs of more than ten provinces under the government."
"Now the headquarters requires the production capacity of major arsenals to double, so we think that our demand for steel in military industry should reach at least twice the original one. In such a short time, wherever you asked me to get so much steel, even if you import it abroad, it will take several months..."
"Forget it, I won't say much... In a word: You two are planning to force me, Li Zongren, to the dead end..."
Li Mengjie waved her hand quickly and replied to Li Zongren, who was both an elder and a loyal supporter of her husband in front of her, "Chairman Li, how could it be... Whether it is from personal relationships or positions, the commander-in-chief needs your strong support. How could he force you? You were joking..."
After saying that, Li Mengjie, who was holding the idea of solving Li Guosheng's troubles, continued to ask: "Chairman Li, as far as I know, the annual income of the coalition government is not only in the fiscal revenue of more than ten provinces, but also in foreign exchange income. With such a huge income, how could the government finance be so embarrassed..."
Although Li Mengjie only took the rank of colonel, he was not considered a senior member of the National Defense Forces in terms of rank. However, because of his special identity and the military position of colonel director of the Communications Department of the General Headquarters of the National Defense Forces, Li Mengjie was destined to be able to contact many secrets that only senior members of the National Defense Forces could know.
Therefore, facing Li Mengjie's confusing look at him, Li Zongren did not hide it and said bluntly: "Don't think about the fiscal revenue of each province. As the large-scale infrastructure construction in each province began to be rolled out, the fiscal revenue of many provinces could not even meet the investment, let alone handing over to the government's finances."
"As for the income from abroad: although there are 300 million US dollars every year, with the advance arrangement of the Commander-in-Chief, of the 300 million US dollars, except for 150 million US dollars that can be directly put into the finances for us to use, the remaining 150 million US dollars are all replaced with the oil and gold we urgently need for reserves."
"It should be clear that with the increasing degree of mechanized forces of the National Defense Forces, oil consumption will increase greatly for both military and civilian purposes. The 50 million US dollars of oil exchanged from Europe and the United States every year by the government relying on penicillin to exchange for oil from Europe and the United States has gradually become inadequate. In this case, it will eventually fall into the fiscal 150 million US dollars. If we cannot find other sources of oil in a short time, it will also reduce due to the increase in purchasing oil from abroad..."
"In addition to buying the oil we urgently need from Europe and the United States. In order to lay the foundation for the government's future currency issuance, the remaining 100 million US dollars will be exchanged for gold abroad and then transported back to the domestic reserves. According to the current exchange price of one dollar per gram of gold, we can obtain about 100 tons of gold reserves from European and American countries every year..."
Li Mengjie was not confused about this issue anymore and continued to ask Li Zongren: "Chairman Li. Even so, a huge amount of US$150 million inflows into the government's finance every year... So much money, is there no surplus in the government's finance?"
Facing Li Mengjie's gaze full of suspicion at her, Li Zongren shook his head first, and then said: "Col. Li, so far, you only think about the government's fiscal revenue, but never the government's annual consumption."
"Not to mention anything else, just the millions of troops under the National Defense Forces consume 150 million oceans of military pay and food every year, which is about 65 million US dollars. Of course, this does not count the annual equipment consumption and ammunition consumption of the million troops, the war consumption faced after the war, and the casualty pensions for the soldiers... In general, the military expenditure required by the one million US dollars per year is floating around 100 million US dollars..."
"In addition to military expenditure, the government has used a large amount of immigration to the Far East and Outer Mongolia in the past two years. It takes money to build railways to Lake Baikal and Outer Mongolia, and it takes money to build various factories..... All of these consumptions are included. Do you think the remaining 50 million US dollars are enough..."
Seeing Li Mengjie slowly falling into deep thought in front of him, Li Zongren continued to speak: "There is another thing you should pay attention to. The expenditures I just mentioned are only non-war expenses. If we encounter such a big war in front of us, our military expenditures will increase greatly."
"As for the ongoing Outer Mongolia battle, the tens of thousands of soldiers who have already sacrificed at the moment, it will cost tens of millions of dollars of funds. If the consumption of ammunition and equipment is added, without more than 30 million US dollars of reserve funds, it will not be able to support the battle in front of you..."
At this moment, Li Mengjie, who was thinking, finally spoke. She asked Li Zongren with the last glimmer of hope: "Chairman Li. The government finance really has no money..."
Li Zongren nodded without hesitation and replied: "Not only do you have no money, but you are also in debt..."
"However, in order to deal with the sudden outbreak of war in Outer Mongolia, I have made a decision without authorization and temporarily deducted the 20 million US dollars used for immigration, temporarily suspending the immigration speed, and using it to support this war. As for the commander-in-chief's order to expand the production capacity of all military factories under the General Equipment Department, I can only draw 5 million US dollars from other places to pick up the weapons manufacturers most needed on the front line to expand."
After saying that, he ordered Li Mengjie: "This is the case, you can send a telegram to the commander-in-chief immediately and report the situation here. Let the commander-in-chief make the final decision on which military factory to use the five million US dollars of special funds."
Under Li Zongren's gaze, Li Mengjie shook her head decisively and said, "Chairman Li, you must never report the government's economic crisis to the chief executive... The war on the front line has made the chief executive anxious. If this matter is also exposed, it will not only not provide any help to the chief executive, but will instead help the Soviets put pressure on the chief executive..."
Li Zongren nodded cheerfully and replied: "Okay, listen to you. I won't report to the chief executive for the time being. However, such a big thing is not something that the two of us can decide. Do you have any good ideas..."
"We can find the Chief of Staff. Although the chief of staff is no longer Shenyang, you and the Chief of Staff are both one of the highest leaders of the National Defense Forces. The common decision between you two must be the best decision..." Li Mengjie pushed out the Chief of Staff Jiang Baili without thinking.
The General Command of the National Defense Forces, less than one kilometer away from the government office, heard of Li Zongren’s concerns about the current government finances, Jiang Baili also subconsciously frowned.
Without answering immediately, he asked Li Mengjie in a deep voice: "Col. Li, are you saying that the Soviet Far Eastern Army that launched an attack on us is not in a hurry to invade Outer Mongolia. Instead, on the Sino-Soviet border, through this protracted war, we will gradually weaken the strength of our defense force... Is this conclusion true..."
"Yes. Chief of Staff... This was what the chief of staff told me personally before I left..." Li Mengjie replied.
Jiang Baili nodded silently and analyzed: "We don't have to worry about light weapons when fighting protracted warfare. Because, whether it is the captured Soviet weapons or the tens of thousands of semi-automatic rifles stored in the total equipment office, it is definitely enough for the frontline consumption..."
"As for heavy weapons, there is some shortcomings... Although our National Welfare Forces has the largest arsenal in Asia, there is only one arsenal after all. According to the current arsenal production capacity, we can only provide a battalion of fighter jets, a battalion of heavy artillery and a battalion of heavy tanks to the front line every week."
"These outputs are sent to Outer Mongolia, and they can only reach the loss of the front line every day. If they continue to consume at this speed, it won't take long to consume the heavy artillery, tanks, and aircraft on the front line...."
Li Zongren asked thoughtfully: "Chief of Staff, what you mean is to put all five million US dollars into the production of heavy weapons such as heavy artillery, tanks and aircraft..."
Speaking of this, Li Zongren changed his sentence and followed and asked back: "But Chief of Staff, have you considered the relevant raw materials... Whether it is heavy artillery, tanks and aircraft, a large amount of special steel is needed. The production capacity of several major steel plants under the control of the National Defense Force is so large, and there is no extra steel to allow military factories to expand their production capacity."
Jiang Baili replied helplessly: "With the overall strength, the only thing we can do is to 'demolutely repair the east wall' and temporarily let the National Defense Force overcome this difficult..."
Li Zongren's eyes lit up and he asked anxiously: "Chief of Staff, how can we demolish the law..."
"There are two directions in total..." Jiang Baili said firmly.
"First, in a short period of time, shorten the steel needs of ordinary people in several provinces... Second, all the special steel that should have been invested in major shipyards will be transferred to these major arsenals, and in a short period of time, more heavy weapons will be produced for the frontline troops."
Li Zongren nodded and said with a wry smile: "In this way, the navy will complain... However, in order to repel the Soviet attack, local efforts are necessary... Chief of Staff, I will immediately go to Minister Fu of the General Equipment Department to turn our decision into reality and increase the production capacity of heavy weapons...."
Although Li Zongren and Jiang Baili did not report that the government's finances had fallen into an economic crisis at the Front Command of the Outer Mongolia Defense Forces, Li Guosheng still found a trace of clues from it through the routine information sent to himself every day through the intelligence department.
In addition, the frontline's anxious war basically does not require any tactical level, and at least in the next month, the combat office can play a general coordination role. Li Guosheng, who is on the frontline, directly shifted his attention to how to get a large amount of money for the National Defense Forces and resolve the government's economic crisis...
"Use part of the government's gold reserves... to temporarily resolve the current economic crisis..." This was Li Guosheng's first idea.
You should know that through penicillin, a strategic drug, Li Guosheng has exchanged a total of 300 tons of gold reserves from European and American countries.
In addition, more than 130 tons of gold and more than 2,000 tons of silver obtained from the vault of Zhang Xueliang, the commander-in-chief of the Northeast Army, the more than 120 tons of gold reserves obtained from the Japanese Kwantung Army during the entire occupation of the three northeastern provinces. The gold reserves in Li Guosheng have reached an astonishing 550 tons.
If two thousand tons of silver can be converted into two hundred tons of gold at any time, the National Defense Forces' gold reserves will be 750 tons.
In the eyes of many people, it is better to take out a part of the gold to deal with it if you keep it in your hands.
However, in Li Guosheng's view, the more than 700 tons of gold in his hand not only cannot be used, but will continue to increase.
Because, from later generations, he knew clearly that in the future, China was affected by economic crises many times because of insufficient gold reserves, and the value of the RMB was depreciated again and again.
More importantly, the later American governments made the US dollar a world currency through its huge amount of gold reserves, and controlled the economies of many countries in disguise through these gold reserves...
Therefore, for the future of the entire country and nation, I must not use the gold reserves I have accumulated with great effort for a temporary need. Not only that, I also have to find ways to increase my gold reserves.
The gold reserves cannot be moved, and all Li Guosheng can do is to find another way.
Using the old method I had just made a fortune, I made money from abroad... Li Guosheng followed closely behind.
However, after several hours of analysis, he had to deny this idea. Because he had almost exhausted all the money-making methods he could think of. In addition to monopolistic drugs such as penicillin keeps making money for himself from abroad, there is another method, that is, the foreign stock industry. He uses his foresight to make money from stocks.
However, although this method of raising money is very effective, it cannot achieve any effect in a short period of time due to its long-term layout.
After thinking about it, Li Guosheng had to shift his attention from the international community to the domestic market.
In later generations, what industry is the most profitable and the fastest money...
Thinking of this question, the first answer in Li Guosheng's mind was the bank that had the right to issue currency. In various countries in later generations, any institution could not make money faster than banks. Of course, this bank had private banks, including state-owned banks.
Can you follow the example of the People's Bank of the future generations and form a state-owned bank across all provinces under the control of the National Defense Forces in addition to the Nanjing Central Government. Through this state-owned bank, all provinces under the control of the National Defense Forces issue more stable new currencies and even war bonds, helping the government raise enough funds for war...
After this idea appeared in my mind, there were uncontrollable situations.
Because banks can obtain huge benefits from it by simply issuing new currencies to several provinces under the control of the National Defense Forces. Not only that, banks can also nationalize the gold and silver scattered among ordinary people to a certain extent, turning them into national reserves to avoid the outflow of gold and silver.
In addition to issuing currency, which can be called laying golden eggs, bank mortgages, banks issue special war bonds, and even treasury bonds are the best way to raise funds.
It is certain that once this plan begins to be implemented, the issuance of currency in several provinces under the control of the National Defense Force can bring hundreds of millions or even billions of fiscal revenue to the National Defense Force and the government.
With such a huge amount of funds in hand, the government will no longer have to worry about money in the next few years. Of course, after the provinces have invested heavily in infrastructure construction in recent years, their annual fiscal revenue will also increase greatly, and gradually there will be extra taxes to pay the government's finances, making the government's pockets completely bulge...
Of course, before this, there is another problem that must be solved, that is, all independent fiscal revenues of each province are included in the government's finances, directly governed and collected by the coalition government, and collected by newly established banks. This will prevent local governments from intercepting fiscal revenue to a certain extent, and even avoid corruption and bribery by local government personnel.
Chapter completed!