Currency Dividend

Joseph was not surprised that Brienne had such worries. After all, the latter had never been exposed to the financial-colonial concepts of later generations; even his use of Paper Money was still stuck at the most elementary stage.

He looked toward the Minister of Finance. "Archbishop Brienne, in reality, as long as these countries accept our Paper Money loans and agree that they can only be used for trade, not exchanged for gold at the French Reserve Bank, then this money will not affect our financial stability."

Brienne, Bayei, and the others exchanged glances, their expressions filled with confusion.

Joseph could only patiently explain it to them. "To put it simply, a country that accepts a loan in Franc Paper Money has, in fact, acknowledged the value of these 'pieces of paper.'

"Even if they immediately used all this money to buy our country's goods—in reality, that's impossible. Transactions have delays, and in the course of trade, at least one-third of it will flow into their own production and sales channels.

"Now let's only discuss the extreme case, where all this money really does return to France through trade. Then next, the debtor country that received the loan will have to consider repayment. The method of repayment is nothing more than repaying with gold and silver coins, or repaying with Franc Paper Money.

"If it's gold and silver coins, then it is equivalent to us exchanging Paper Money for precious metals, which is a major profit. It could even cause the value of Paper Money to rise.

"Of course, most debtor countries will choose to repay with Paper Money. Then they must have a means of obtaining Paper Money, and that can only be achieved by selling goods to our country. In other words, the Franc will become a currency