Chapter 44 The Legend of the Red Currency

In 1921, the Communist Party of China was a tiny political party with only 57 members. She had neither money nor guns.However, 28 years later, she led an army of millions to sweep across the world and seized the national power in one fell swoop!At the beginning of the founding of the People's Republic of China, at the time when everything was waiting to be rebuilt, it defeated the coalition forces of 16 countries in North Korea.Not since 1840 has China had such a moment of complete independence.Peng Dehuai's words should represent the aspirations of all Chinese people: "The history that imperialism can conquer a country or a nation by setting up a few cannons in the East is gone forever!"

The overall victories of the Communist Party of China in the political, military, and financial fields all stem from the same system of thought and wisdom. The three pillars supporting this system are: serving the people, independence, and practice orientation. The right to issue currency is one of the most important powers in human society, and how to exercise this power is an important test for currency issuers.There is an essential difference between issuing currency for the benefit of the people and issuing currency for the benefit of a few people.The so-called "the one who wins the hearts of the people wins the world", the people are smart, the people are wise, the people's eyes are discerning, and the interest orientation of the currency issuer is actually clear at a glance.The issuance of currency in the Soviet area, including the issuance of "Red Army Tickets" in Zunyi, is to safeguard the fundamental interests of the people, which is completely consistent with the reason why the red regime can survive and develop.Only when the people's currency serves the interests of the people can it gain the support and trust of the people and have the strongest, most durable and unbreakable currency credit!

The currency in the Soviet area followed a completely independent path. Under the state of military "encirclement and suppression" and economic blockade, it experienced enormous pressure that the normal currency system could not bear.The founders of the Red Central Bank started from scratch without external assistance, without external consultants, and without an external frame of reference. They were completely autonomous, operated independently, and formed their own system.This is also in line with the practice of the "red separatist regime" of the Chinese Communist Party.Whether it was Stalin or Chiang Kai-shek, no one believed from the very beginning that the idea of ​​"encircling the cities from the countryside" could be successful.In the world, this is an unprecedented major innovation.For the Soviet area government that created this new model, ridicule, suspicion, accusations, and suppression from within the party, as well as hostility, sabotage, blockade, and "encirclement and suppression" from the outside, constitute tangible and invisible pressure at all times.The spirit of independence is by no means a flower cultivated in a greenhouse and in good times, but more like a weed that survives stubbornly in the cold and harsh conditions.The red currency in the Soviet area grew little by little under extremely simple conditions, every step was created, and every achievement came from practice.

"From practice, to practice." This seemingly very common cliché is a truth sublimated after thousands of successes and failures.The creators of the red currency have neither rich currency experience nor profound theoretical knowledge, but they have the courage and wisdom to surpass ordinary people's practice!They don't only focus on books, foreign countries, and superiority, and all measures are oriented towards solving practical problems.In the process of solving problems, the keenness and amazing skills of genius are revealed all the time and everywhere.Practice creates experience, practice sublimates ideas, and practice guides theory!

From 1932 to 1934, although the Red Central Bank in the Central Soviet Area existed for only three years, it brought the unique financial thinking and wisdom of the Communist Party of China to the extreme.The three years when the National Bank was in the Soviet area was the first time that the people of the Soviet area owned their own bank and controlled their own financial rights and interests, and it was also the first three years when the Chinese Communists established an independent financial system. After reading the history, the Chinese Communists understand that the Paris Commune did not take over the Bank of France and blood was spilled on the Lachaise Cemetery; seeing the practice of the Soviet Union, they understand that only by controlling the Bank can they consolidate the regime.When it was my turn to do it myself, I truly realized that without money, it would be difficult to move forward, and without money, I had to obey the will of the "big brother" who gave me money!

Mao Zedong found the way to establish an independent political power in the countryside, the hot land of revolution, and also started the process of opening up the road to financial independence.Holding the gun in one hand and the money bag in the other, the Soviet area survived Chiang Kai-shek's "encirclement and suppression" and the suspicious eyes of the Soviet Union for 7 years! The founder of the Red Central Bank has gone through untold hardships for the red currency.They don't have much education, experience, and even start-up funds, but they believe that as long as they serve the common people, they can overcome any difficulties through practice and practice!

The purpose of issuing currency by the National Bank is completely different from that of the banks of the Kuomintang and Western powers.The Bank of China issues currency to facilitate people's livelihood and meet the needs of economic development. It is not a means of "shearing sheep" to plunder the people, it is not the KMT's "golden coupons" that compete with the people for profit, and it is not enough to label it as "quantitative easing" today. Bad dollars! The National Bank has prepared sufficient silver dollar reserves for the issuance of currency. Through practice, they realized that the currency is still just a piece of paper with gold and silver as collateral without corresponding material preparations.What ordinary people need to live is firewood, rice, oil, salt, not gold and silver.Banknotes that can buy material goods have credibility in the eyes of the masses, and the government that issues them has prestige!The credit of currency is the foundation of the country and the key to maintaining the red regime.

Having understood the basic principle of currency credit, the Chinese Communists tried and tested repeatedly in the War of Resistance Against Japan and the War of Liberation. The more they used it, the more mature they became, and finally established an independent RMB system and a strong financial high frontier.