After reading the comments, some readers felt that the development of cotton shops may be problematic.

Actually, there is no problem.

Because Xihe's economic model is abnormal at all.

The author has actually written this issue in the previous chapter, and of course it may be that the author has not explained it clearly.

If I have the opportunity, I will write an extra to introduce in detail how this system works.

Today, let’s briefly introduce it.

First of all, the currency of the Northern Song Dynasty was a dual-track system.

Xihe uses iron coins!

Therefore, there is an exchange rate difference.

I also said it in the previous chapter.

The employees in Xihe provide food and accommodation, and give iron money as wages every month.

On the current timeline, after several rounds of salary increase, the wages of employees have increased to 500 yuan (starting salary of new employees) to the usual money (basic employed workers).

I haven't found out the exchange of Xihe iron coins and copper coins.

But I found the exchange rates of iron coins and copper coins in Sichuan in the Northern Song Dynasty.

In 996, shortly after the Northern Song Dynasty pacified Shu, the first time the iron coins were issued, with the official exchange rate of 1.

However, the wishful thinking of the government quickly triggered inflation. In less than half a year, the exchange rate between iron and copper coins fell to 5% in less than half a year.

Note that this is the official price. All the exchange rates I mentioned in the future are the official price.

Please note that official price and market price are two concepts.

Just like the Argentina black market exchange rate and official exchange rate today.

The Northern Song Dynasty court was extremely anxious about this, so in 970, copper coins were banned from entering Sichuan, attempting to control inflation through financial controls, but the result was that the price of iron coins fell, and it fell 10 times that year.

Then came Zhang Guaiya's rule over Shu.

After the famous minister sorting out and the regulations on Jiaozi, the iron currency exchange rate began to return to 5.

But soon, Zhang Guaiya left office.

During the reign of Zhenzong, the exchange rate of iron coins returned to 10

There was no way, and the Northern Song Dynasty began to cast large iron coins, which was to make ten coins.

In the present, it is printing money.

According to the memorial of Ling Ce of the seventh year of Dazhong Xiangfu, the magistrate of Yizhou, it can be seen that each iron coin weighs twelve kilograms per silo (Song jin, 2kg today, and the average weight of each iron coin is about 3 grams, which is close to 4 times the weight of the small flat copper coin at the same time).

However, it is a mess.

The exchange rate of large iron coins and copper coins returned to 10 after eight years of minting.

The printing of money in the Northern Song Dynasty failed.

For a long time afterwards, the exchange rates of Sichuan iron coins and copper coins remained stable at this level.

It was not until the reform of Emperor Shenzong Xining that he began to attack Sichuan Tieqian again.

Through various means, the value of iron coins is increased at the official level.

For example, in the field of calculating stolen goods (calculating the case value of a criminal case), convert the exchange rate of iron coins and copper coins into 2 to 1.

At the same time, it may also improve the iron coin casting technology and use better quality iron.

The price of private iron coins in Sichuan may therefore remain relatively stable within a certain time range.

But soon, with the end of the era of the Emperor Sect.

The iron coins began to fall again.

In the Shaosheng era, he fell 5 to 1, Huizong Daguan 5 to 1, and then 10 to 1, returning to the origin.

Through these we can now know that the Northern Song Dynasty iron coins and copper coins are normal, and the generally recognized stable exchange rate is 10%

Note that here refers to a large iron coin that is ten folded.

It is what Ling Ce said, which always weighs 12 kilograms, equivalent to 2 kilograms of iron, and is cast and issued in Sichuan.

In border areas such as Xihe, cast iron coins are used, and after opening the border from Wang Shao of Xining, they have been mixed with a large amount of other impurities for a long time, making the value of these iron coins in melting and re-casting infinitely close to zero.

Therefore, the value of iron coins in these areas is definitely much lower than that in Sichuan.

There are also many records of Qian Qianqian from Xihe and Shaanxi in history books.

Therefore, when the local iron coins in Xihe were returned to the Zong and Gao Gongji had not gone, I personally assumed that it was at the exchange rate of 15 to 1.

Note that I still use the big iron coins mentioned by Ling Ce, not small flat coins.

Therefore, when Xiang Zonghui was in office, the exchange rate of iron coins and copper coins on Xihe Road was 15% compared with the exchange rate of iron coins and copper coins on Xihe Road.

And they are in charge of the money bags on Xihe Road.

The Xihe Border Finance and Economics Department, which has an annual financial allocation of 4-6 million stagnes of copper coins.

In other words, at the beginning, the local exchange rate of Xihe in June of the eighth year of Yuanfeng was 15.

what does that mean?

Bianjing makes money and spend money on Xihe!

A huge arbitrage space emerged.

This is also the profit method of Xihe Cotton Village.

I have said repeatedly in the book that Xihe Road was reclaimed in the second half of the eighth year of Yuanfeng, and the number of cotton fields was actually very small.

During the second half of the eighth year of Yuanfeng, the two people took office from June to November, and the total number of cotton fields on Xihe Road was about 50,000 to 60,000 mu (many people initially dealt with it symbolically, but they did not reclaim more. The Bao family and Zhao family supported each other and reclaimed a little more, but the two families combined did not exceed 10,000 mu, so Xiang Zongji took Wang Dafu to reclaim the land).

This is also the scale of cotton fields sown in spring in the first year of Yuanyou.

but……

Starting from the spring of the first year of the Yuan Dynasty, Xihe suddenly fell into the cotton farm fanaticism.

Why?

Because the arbitrage space was discovered.

Because, in the second half of the eighth year of Yuanfeng, in order not to be wasted, many people planted soybeans, alfalfa, barley, and barley.

Then, everyone was stunned.

The cotton shop has made money before it has been harvested.

Xiang Zonghui, the Border Defense Finance Department controlled by Gao Gongji, used official prices to acquire the output from the land.

Because at that time, they were the real landlords in Xihe.

Buy your own output, so you are generous and fair.

Directly follow the court's policies.

It is equivalent to buying Xihe's products with the prices of Bianjing.

You have seen this situation in many parts of the world today. I believe you can understand what this must lead to?

Everyone is crazy!

The Han, Fan tyrants in Xihe, and even Xibawen in Tubo, Wen Xixin was so determined and followed Xiang Zong back and Gao Gongji to leave.

It is precisely because of seeing the benefits.

Xiang Zong replied that in order to maximize his own interests, Gao Gongji began to dopant impurities in the iron coins.

Therefore, the value of the iron coins in Xihe began to rise.

After the spring of the first year of Yuanyou, it should be on par with Sichuan and reach a 10-to-1 currency value.

Then, some readers may ask.

Why, no one has discovered that no one has used these methods before?

The answer is that the Northern Song Dynasty had a shallow understanding of economy and finance.

Sima Guang's "The world's wealth has its own fixed number, and it is not in the government, but in the people" and Wang Anshi's "financial management" technique are the mainstream.

In most cases, the so-called financial management can be understood as raising taxes or making profits through monopoly.

Then there is the situation in Xihe area, which is very special.

The number of Hu people here is far more than that of Han people.

Even the army and armed forces are mostly owned by the leaders of ethnic minorities.

For example, the Bao Shun family was the number one thug in the Xihe area of ​​the Northern Song Dynasty all year round.

He participated in wars as the main force many times.

For example, the Zhao Sizhong brothers, etc.
To be continued...