Chapter 273: Minting tax

  Chapter 264 Mint Tax

After a lot of twists and turns, on May 12, 1855, the first currency after the establishment of the New Holy Roman Empire, the New God Holy Roman Empire Rhinoceros Guilder, was officially released to the public.

The Vienna government succeeded in getting the right to mint money, and the reserves of the governments of the various states were unified into the reserves of the Imperial Central Bank, only to be temporarily deposited in the various states.

It is not that Franz does not want to go one step at a time, mainly because of the consideration that just dug a piece of meat from the bowl of the governments of the various states, it is easy to stimulate their nerves to cause a backlash.

Since everyone wants to stay in the hands of the left, anyway, the central government sent people to supervise, prohibit anyone from using these reserves on the line.

There is no doubt that with the right to mint coins, the central government can legally collect the mint tax of each state. Mint tax, as the name suggests, is the revenue obtained after the cost of issuing currency is removed.

Of course, now is the gold standard era, or the need for reserves, the profit of issuing currency, not as large as the latter day credit standard era.

Even so, the mint tax is also an important part of the revenue, compared to what tobacco, liquor tax are weak, simply can not be compared with it.

The British want to establish the “pound – gold” system, essentially want to collect the world’s mint tax. Obviously this needs to be recognized by the countries of the world, must be willing to use the pound in international trade settlement.

To do this, there are only two ways, either by strong strength to subdue everyone, or only through the exchange of benefits, so that everyone accepts the pound as the international settlement currency.

As of now, the British this plan has not been successful, the Vienna government is the adoption of the gold standard system, unfortunately the new Holy Roman Empire in the international settlement only recognize gold.

What is the British Pound and can I eat it?

On this issue, the government of London and the government of Vienna has been a number of communication, and finally came to nothing.

The British want to collect the mint tax, Franz also want to collect ah! The world’s mint tax, Austria is not yet qualified to collect, but in the circle of the Holy Roman Economic Union, or to collect.

Otherwise, why would the Vienna government risk the gold standard reform? It is important to realize that monetary reform is also a costly endeavor and involves a certain amount of risk.

From the current situation, after the completion of the currency reform, the Vienna government’s mint tax revenue will be about 0.5 to 2 points of GDP.

The data gap is so big, mainly depends on the economic development of the country, the more prosperous the economy the more currency demanded on the market, the more this currency tax.

Of course this is internally, externally it certainly can’t be that much. Franz can’t ask other countries not to issue currency, all use the “divine shield”, at most let everyone in the foreign trade settlement with the new Holy Roman Empire to use the “divine shield”.

This was a long-term endeavor, and for a short period of time, everyone would still use gold and silver for settlement, and the divine shield could only be used internally in the new Holy Roman Empire.

Trying to convince people to join the “divine shield – gold” system is also not so easy. Without visible benefits, why would people pay this mint tax to you?

Once the status of international currency is established, then the demand for gold reserves will be reduced, and everyone can rely on the credit of the national government to support the value of the currency.

At present, the most mainstream currency is still gold and silver, this kind of hard currency is the most widely used, the rest of the pound, franc, shield are just ordinary currency.

The British have begun to promote the pound, promote the gold standard reform is one of the most important part, only everyone’s standard is the same, the pound – gold system can be established.

……

The Minister of Finance, Karl, said with great vigor, “Your Majesty, the situation of the S.H.I.T. issuance is going well, and now we have sufficient gold and silver reserves in our hands to cope with all fluctuations.”

Thanks to the gold and silver reset system of the countries in this era, the Austrian government takes silver out in international settlements, and everyone will still be happy to accept it.

If you wait until the countries have abandoned the reset system, and then want to get gold from the market will be difficult, then even if you buy up all the gold in circulation is not enough.

History is because of the lack of sufficient gold on the market, the gold standard reform of all governments had to compromise with the British, accept the pound – gold system.

Even some countries gold gap is too large, direct use of the pound as the issue of currency standard, the value of the currency directly and the pound pegged to borrow the credibility of the British to the value of the new currency guarantee.

This is the reason why it is widely believed that the peak of the British was after the Anglo-Boer War. Took the gold of South Africa, most of the gold on the international market fell into the control of the British, the world currency hegemony of the British pound is really established.

Franz nodded and said, “Don’t take it lightly, continue to strengthen the monitoring of the financial market, once a large amount of capital outflow is found, immediately start the emergency plan.”

Although he does not think that this time will be someone to do something, but the previous British move has given Franz a wake-up call, in order to establish the currency hegemony of the pound, who knows whether the British will come back to do a wave.

Consortium Karl replied seriously, “Your Majesty, please rest assured. We have already sent people to keep an eye on the foreign consortiums entering the country, and once they withdraw their capital, we will take action.

Their black materials have all been collected, and when the time comes to poke them out, it will be enough to temporarily seize their capital, and in serious cases, we can even send them directly to the gallows.”

Capitalists in this era, who doesn’t have a black history? Even after entering Austria, these foreign capitalists have more or less restrained their behavior, but the bloodshed of capital is still rare.

In normal times, in order to develop the domestic economy, the people don’t report to the government, these problems were shelved, and everyone pretended that they didn’t see anything.

Now at the critical moment, these inconspicuous black history, once stabbed out, is enough to make them suffer.

With a criminal record, capital becomes stolen money, which can be seized or confiscated according to Austrian law.

Anyway, as long as there is evidence in hand, no matter how big their origins are, the Vienna government has nothing to fear.

Franz instructed: ”Continue to keep an eye on them, if they want to leave at this time, you can first send someone to do ideological work for them, and then use extreme means if you really can’t.”

Pay attention to the evidence in our hands, it must be convincing enough. Even if we have to take action, we can only make an example of them and catch a few serious cases.

We can’t turn our backs on all the international capital, and we must pay attention to the ways and means when taking action, and the government can’t go directly into battle with its bare shoulders.”

There is no need, Franz still don’t want to and international capital face to face, this kind of thing is to kill the chicken to take the eggs, as long as once done, there is no chance to come back again.

In the future, whether it is in the international market to issue bonds, or want to attract foreign capital, it is impossible. Even Austria’s normal business and trade dealings with the outside world will be hit by their retaliatory strikes.

Now Austria’s industrialization process still needs foreign capital to add bricks and mortar, and these people are all of use.

If they were strangled at once, even if the government gained a large sum of cash in its hands, there would be no way to achieve the same results.

“Yes, Your Majesty!” Carl replied cautiously

(End of chapter)