Chapter 564 – The Money Exchange Order

“But then again, what do your French shareholders think of the good news from Libya. I think the key lies in the ability to get the French government to offer stabilization work in Libya. The current situation is clear, Britain and France, even if they stand together, can only hold out against pressure from one side, the US or the USSR, whereas we and France together still have twenty million square kilometers of colonies. The more our interests overlap, the easier it will be to cooperate.”

Relieved from not being able to breathe, Alan Wilson hadn’t forgotten to ask Pamela Mountbatten about the progress of the Libyan oil.

“I think it is not a problem, the French are very enthusiastic about this.” Pamela Mountbatten expressed optimism, “I’ve even specifically apologized to the French for this on a few occasions.”

“This? Well! Now is indeed the time for unity.” Alan Wilson opened his mouth, but it was hard to say anything.

If one was in the perspective of the French after the First World War, one saw things like this, Britain and the United States, who had fought side by side during the war, were now condemning France for being harsh on Germany. On the one hand they were lenient on Germany, on the other hand they gave Germany loans to invest and even called in the debts owed to France during the war.

France did not surrender in World War II either, but lost the war, and while France’s territory was considered large in Europe, it did not have the capital for a protracted war, and France inflicted 200,000 casualties on Germany in the short period of time before it lost the war.

Most of the countries in Europe have no margin for error, and now facing the Soviet Union is the same, so Allen Wilson even if he thinks in his heart, the Soviet Union will not really invade Europe, but also can not make to persuade others, after all, the current Europe is not allowed to make a mistake.

He would like to find a balance, but really started to look for only to realize that it is not so easy to find.

This day Allen Wilson received a telegram, is about the preparation of new banknotes in British Malaya, the new banknotes have been printed, ready to be put into the market. The basic conditions for monetary reform were in place.

Alan Wilson felt that this was a good time, after all, the Americans were busy, the Soviets couldn’t reach them. Sort of a time of stabilization! Rushing to Pamela Mountbatten leaked the news, “Darling, any interest in opening a bank?”

“In Malaya?” Pamela Mountbatten asked rhetorically, then saw Alan Wilson nodding, and pressed further, “Is there a reference for what you do in Malaya.”

“Probably about the same as the Hong Kong dollar.” Alan Wilson honestly said, using the Hong Kong dollar as an example, the Hong Kong dollar’s most prosperous time would have been in the early years of the Republic of China, and at that time, the Hong Kong dollar was not just the currency of a city, but the circulating currency of the entire Pearl River Delta.

After all, compared to the chaotic political situation at that time, Xiangjiang, which was managed by Britain, was considered very stable, not to mention that the Hong Kong dollar was pegged to the British pound.

“I need to discuss this with my mother!” Pamela Mountbatten paused for a moment and added, “Mother knows many bankers and has many friends with the Jews in the U.S. Of course we certainly won’t go against the interests of the British Empire. But this is the sort of professional thing I want to know about, don’t you think?”

“No problem! The issuance of the Asian pound will definitely require several banks to play a regulatory role.” Alan Wilson divulged, “If the exchange rates of the neighboring countries are unstable, the use of the Asian pound might even expand. It depends on whether or not British Malaya and the surrounding in the future to open up the gap in development.”

As for the Asian pound, it is definitely going to be spearheaded by the British pound and tied to the British pound for exchange rates. Where the Asian pound circulates, it will also become a reservoir for the pound.

Previously in the study of the value of the Asian pound, according to the local base conditions, Alan Wilson submitted a pound for six Asian pounds, this fixed currency value.

And Whitehall after the investigation, the exchange rate is set at one to eight, for example: if the current market exchange rate of eight Asian pounds to one pound, the bank can be seven point eight Asian pounds to one pound, so that every exchange of one pound can get zero point two Asian pounds of profit. Banks will buy pounds in the market to sell the Asian pound, the exchange rate down until close to the real rate.

If the current market rate is seven and a half Asian pounds to one pound, the bank could exchange seven and a half Asian pounds for one pound to the issuing bank, which would result in a profit of zero point three Asian pounds for every pound sold. The bank would buy pounds and sell Asian pounds in the market, and the exchange rate would rise until it approached the true rate.

This operation, the initiative lies entirely in the pound, so the basis for the implementation of the United Kingdom must find a way to maintain the value of the Asian pound, the value of the Asian pound must be more stable than the currencies of neighboring countries.

The means of stabilization include but are not limited to, financial support, industrial support and even military support. The CFA franc is to rely on the French military power in Africa to force the promotion in the French-speaking areas.

But for Britain, military support alone is not enough, there must be financial and industrial support. Not many countries would necessarily chip away at the French roots because of poor Africa.

But in the case of British Malaya, not necessarily, the Strait of Malacca is not generally important. After all, although the United Kingdom and France are the same colonial empire, but the two countries occupy the value of the colonies can not be compared.

The logic can be roughly understood by replacing gold in the gold standard with money. When a store that issues paper gold has less and less gold in its own reserves, it means nothing for the paper it issues out. Similarly, when a central bank’s currency reserves fall, it means something for the yuan.

Compare the difference between a high spending country and a high saving country and you’ll see that the Eurozone is where the latter is extremely indebted, and rising indebtedness means that deflation occurs when the flow of broad money declines, when the business owes money and money becomes more expensive equals rising real indebtedness. And when the size of debt is climbing, the central bank has to do the opposite, make money cheaper, which equates to lessening the liabilities of businesses and preventing a deflationary spiral from occurring.

There are benefits and drawbacks to each. It’s like Prime Minister Adderley said, we need to combine the virtues of capitalism and socialism to create a socialist union of Great Britain ……

There can be more than one bank issuing Asian pounds, for example, the Hong Kong dollar in Xiangjiang is three;

If Malaya wants to issue Asian pounds, it must surrender one pound and receive a certificate of indebtedness before it can start printing money. When the issuing bank wants to take back the banknotes, it has to take out the certificate of indebtedness to redeem the pound from the bank and then exchange it for the Asian pound from the market.

There were twists and turns that Pamela Mountbatten didn’t understand, and Allen Wilson knew nothing about, but her mother, Edwina Ashley, understood very well, and meeting her good son-in-law, who was a high commissioner in British Malaya, divulged the pertinent issues.

Edwina Ashley immediately told her daughter that this was an opportunity to be seized and even came straight over to find out more about the situation with Alan Wilson.

“At this stage it’s just going to be a currency exchange exercise, replacing the previously mobile currency with a new version of the Asian pound.” Alan Wilson pondered for a moment and said, “The formal currency reform is going to start after the old banknotes end their circulation, and I think it can start in a few months.”

Involving the issue of currency, Alan Wilson can not dare to wave his hand and start patting his chest, he to very much want to be as domineering as the old fairy Modi, a abolition of banknotes order, a short period of time to get everything done.

But people are Hindu populist support, Allen Wilson can not, he not only did not, he is still the head of the local colonial government, a pure foreign colonizer.

The British Empire was different from the average European colonial power, similar to France and Portugal who both ruled. Britain could be described as united but not ruled, and is only now just beginning to make the shift to direct administration. He wouldn’t dare to head off in Malaya!

Mess up Malaya, Britain now can not have another colony suitable for a spare tire, even if it is again confident, Allen Wilson does not think, he can lead a group of black uncle in Africa, and Japan both born Yu He Liang.

“That means it’s in the money changing phase now, and you’ve got Pamela setting up a bank that will act as part of the central bank’s duties when the time comes.” Edwina Ashley plotted, “Does it feel like it will go well?”

“It shouldn’t be a problem, the initial decision was made to share the central banking duties with three banks.” Alan Wilson said with reservations, “Of course I’m a civil servant and I don’t understand everything about finance, it’s just the idea.”

“No Alan, you actually do understand it.” Edwina Ashley didn’t mince words of praise, “Pamela is completely taken with your talent.”

Talent? One had that sort of thing? Alan Wilson asked himself, wasn’t it the ability to bankroll?

Alan Wilson heard the word talent used on himself and immediately thought of the saying, you think you can’t be found if you hide here? It’s useless, like you so outstanding man wherever, are like the Ying firebug in the night as distinctive outstanding ……

Touching the sighing stubble on his chin, Allen Wilson’s gaze appeared melancholy.

Accompanied by the fierce engagement of the Pusan defense circle, the exchange of money in British Malaya was also officially launched, such an important occasion, Allen Wilson people in Europe glanced at the loss of connection, indeed, some can not say.

But there is no way, if the distance is not too far away, he would like to go to the United States a trip to comfort the nervous filming of the great British treasure, even so, he also and Vivien Lei keep running frequent contact, to and fro telegrams pouring out the thoughts of the national treasure.

“When I settle the movie pay, will go to Malaya to buy a manor to accompany you.” Fei Wenli looked at her son in the middle of the stroller, filled with the shadow of that man.

Ms. Vivien Lei, the major shareholder of United American Pictures, walked over and picked up her son high in the air, feeling that life was full of light.