Chapter 30 Crisis breaks out
The next morning, while George was still having breakfast at home, a rapid ringing of the phone rang. George walked to the phone and picked up the receiver. He heard Paul's voice ringing from the other side: "Boss, there is news from the exchange.
.Now that the market is falling, many stocks are falling. Among them, the agriculture-related stock futures you asked me to pay attention to are the most serious. Boss, what should we do next?"
"Well, okay, I understand. You'd better finish the contract with Lockheed first and sign it as soon as possible. I'll let you know what happens later. I'll go to the expo later. If you want to find me, just go there.
."
"Okay, boss, I'll make arrangements right away." After saying that, the two hung up the phone.
George stood at the entrance of the expo and found that most of the people at the expo had disappeared. Basically no one was hanging around. The only ones left were ordinary employees participating in the expo. Even with these few people left, they could still hear about the stock market crash.
There were many comments, but fortunately there was no ridicule such as stock trading.
Haha, George estimates that the ones left now are all people who don’t trade stocks. After knowing the news, stock traders will definitely deal with the stocks in their hands as soon as possible. How can they have the heart to stay at the exhibition honestly?
George walked around again and saw that Boeing was doing the same thing. They were packing their things and seemed to be preparing to move out early. George did not go up to ask for specific information, but George was looking forward to Boeing calling him.
.
Smiling and shaking his head, this stock market is indeed not for ordinary people to play. If George hadn't known the future trend, he wouldn't have dared to get involved here. He returned to the reception room of his booth and asked the service staff to make a cup of coffee.
, I keep thinking about future development in my head.
Until almost noon, Paul brought the Lockheed brothers, John, and a lawyer to the reception room.
George asked everyone to get a cup of coffee, and then picked up the contract that Paul had just handed over and read it carefully.
At this time, the three Lockheeds were extremely lucky. They already knew what had happened and understood the impact that the economic crisis would have on themselves.
After reading the contract and finding that there were no problems, a few people signed the contract on the spot. George also happily paid the cash check of 150,000. He also gave Paul a check of 500,000 US dollars in front of the three people.
He injected it into the company's account, and the company's money should be separated from personal money in the future. Then it was arranged that he and the three of them would go to Lockheed in two days to go through the procedures and resolve the arrears of wages and R&D funds.
At noon, several people had lunch together to celebrate the three of them joining the company. During the meal, the three Lockheed people were very interested in George's car. It can be said that from the startup to the interior, everything is in line with today's world.
The car we got on was different.
The three of them also thought about how to combine battery technology with aircraft manufacturing, and discussed more possibilities with George in depth.
After talking about the three people, George arranged for Paul to collect information about companies that currently produce hair dryers, electric fans, refrigerators, and washing machines. He wanted the top few information in each line.
It is estimated that today will be the last day of the expo. It can be said that this year's expo has ended hastily. George did not stay too long and asked Paul to go back to the villa after finishing the exhibition. George returned to the villa first.
George was sitting in the study looking at the wine glass on the table, recalling the events leading up to the crisis in the United States.
During World War I, the United States ostensibly adopted a neutral policy, but relied on military orders from Britain, France and other Allied Powers to solve its own market, employment, financial and other problems, thus promoting the abnormal development of the U.S. economy. It showed
In the following aspects:
One is the rapid growth of industrial production. During the war, the production of steel, oil and other arms-related industrial sectors in the United States developed rapidly. From 1913 to 1918, the industrial production index rose from 199 to 254, an increase of 30%.
The second is the prosperity of agriculture. During this period, industrial development expanded the demand for agricultural products, and the prices of agricultural products rose, which promoted the development of agricultural production in the United States. From 1914 to 1919, the agricultural production index rose from 100 to 105, and agricultural income also increased from 7.6 billion US dollars.
Expanded to US$17.7 billion.
The third is the increase in national wealth. With the development of industrial and agricultural production, the expansion of commodity exports and foreign trade, the national income of the United States has also continued to expand. From 1914 to 1918, the total national income of the United States also expanded from US$31.2 billion to US$57 billion. Per capita national product
The total value also increased from US$1,317 to US$1,401.
After the war, as the factors that stimulated wartime economic expansion disappeared, instability factors in the U.S. economy increased, and the economic crisis broke out. This was an overproduction crisis that broke out in the U.S. reproduction process.
The first is a crisis in industry.
First, industrial production plummeted. After the war, the United States shifted from a wartime economy to a peacetime economic track. The reduction in foreign military orders caused a sharp decline in coal, steel, and automobile industry production, and the decline in commodity exports led to difficulties in product sales.
Industrial production plummeted. For example, in 1921, the U.S. industrial production index dropped by 32% compared with 1920, steel production dropped by 74%, and industrial production of machine tools, locomotives, trucks, etc. decreased by more than 90%. Therefore, the crisis severely impacted the U.S. economy.
Industrial production. Lincoln automobile is the most obvious case.
The second is corporate bankruptcy. During the crisis, a large number of companies in the United States went bankrupt. For example, the number of bankruptcies in the United States in 1921 more than doubled compared with 1919, and the number of bank failures also increased more than six times.
The third is the increase in the number of unemployed people. In the autumn of 1921, the number of unemployed people in the United States surged to 5.75 million. The unemployment rate of workers in 1921 rose from 7% in 1920 to 23%. The real wages of employed workers also dropped significantly, reaching 1900 in 1900.
If the year is 100, it will drop to 99 in 1921.
The agricultural crisis and the industrial crisis are intertwined, which is an important feature of the American economic crisis. During this period, the agricultural crisis mainly manifested itself as:
First, there was a surplus of agricultural products and prices plummeted. In 1921, the wholesale price index of agricultural products in the United States fell by more than 41% compared with 1920, and the prices of some important agricultural products dropped by about 60%. As a result, farmers' incomes generally declined.
Second, the price gap between industrial and agricultural products has expanded. On the one hand, the prices of industrial products rise faster than the prices of agricultural products; on the other hand, the prices of industrial products remain unchanged while the prices of agricultural products plummet; on the other hand, the prices of industrial products fall sharply.
In terms of the rate of decline in agricultural product prices, etc.
Third, a large number of small and medium-sized farms went bankrupt. During the crisis, the U.S. government announced in June 1920 that it would stop purchasing wheat and abolished agricultural product purchase contracts, which led to a sales crisis for agricultural products and expanded the difficulties for farmers in production and operation. As a result, a large number of small and medium-sized farmers and
The bankruptcy of the small-scale farmer economy has resulted in the unemployment of a large number of agricultural workers, causing the agricultural production index to drop by 11% compared with before the crisis. Ultimately, the U.S. agriculture has entered a chronic crisis and strengthened the instability of the U.S. economy.
It was not until 1921 that the United States gradually emerged from the crisis and entered a period of relative stability for capitalism in the 1920s. During this period, the U.S. economy achieved relatively stable development.
There are opportunities and challenges here. For example, the timing of George's wheat futures card this time is very delicate. It is just before the U.S. government announces that it will stop purchasing. Moreover, in the economic crisis in the next year, George can also use this opportunity to absorb some high-quality assets.
.
The next day, Paul and others left New York and returned to Santa Barbara, California, to handle the company's affairs there. George's arrangement for them was that only those who were directly necessary would stay, and all others who were willing would be temporarily dismissed.
George plans to arrange a merger of the two companies if he can win over Boeing.
The next day, George asked his family driver to buy some electrical appliances and some tools, and began to think about some home appliance inventions at home.
Here George has just drawn the first improvement method for the agitator washing machine. His improvement method is to install a vertical shaft in the center of the drum. The motor drives the vertical shaft to perform periodic positive and negative movements.
Swinging makes the clothes and water flow continuously tumble and rub against each other to wash away dirt.
On this basis, George also developed the dryer technology. This one just uses the principle of centrifugal force to open small holes in the barrel and spin it at high speed to dry the water.
Just as he was about to make a prototype, George discovered that although plastic had been invented, the injection molding machine was still quite old-fashioned.
In 1868, Hyatt developed a plastic material that he named celluloid. Celluloid had already been invented in 1851 by Alexander Parkes. Hyatt improved it so that it could be processed into finished shapes. Hyatt
Tet, together with his brother Isaiah, patented a plunger-type injection machine in 1872. This machine was relatively simpler than those used in the 20th century. It operated basically like a giant hypodermic needle. This
A huge needle (diffuser) injects plastic into the mold through a heated cylinder.
Moreover, with the application and development of plastics, the market for injection molding machines will reach tens of billions in the future. I have also visited injection molding machine exhibitions in my previous life, and I have seen real objects and listened to theoretical explanations of second-generation mechanical injection molding machines.
Moreover, I now need to use plastic to make washing machines, air conditioners, and hair dryers.
So after George completed and filed the patents related to the washing machine, he started to design the injection molding machine.
The working principle of the injection molding machine is similar to that of a syringe for injection. It uses the thrust of the screw (or plunger) to inject the plasticized plastic in the molten state (i.e. viscous flow state) into the closed mold cavity.
The process of obtaining products after solidification and shaping. Injection molding machines can be divided into vertical, horizontal and vertical-horizontal combined types according to the arrangement of the injection device and mold clamping device.
The first injection molding machine designed (copied) by George used a horizontal structure. The injection process was completed by air pressure, but the mold clamping still required manual work.
Its injection molding is a cyclic process. Each cycle mainly includes: quantitative feeding - melting and plasticizing - pressure injection - mold filling and cooling - mold opening and removal. After taking out the plastic parts, the mold is closed again to proceed to the next cycle.
It seems very simple, but in actual operation, the specific mastery is not so simple. For example, the injection process actions, feeding actions, injection pressure, injection speed, selection of ejection type, and temperature control of each section of the barrel are carried out separately.
Monitoring, adjustment of injection pressure and back pressure, etc. If any step here is not done well, then the plastic part will not be successful.
However, the application range of plastics is too wide. With the development of industry, plastics have directly become a basic material that is as widely in demand as metal. It is indispensable.
Just when George had prepared the patent materials and drawn the structural drawings, and was about to wait for Paul to come back and apply for the patent first, and then go find a mechanical processing factory to make the prototype, George received a call. It was Wei Wei.
A call from Thomas Corleone.
"Hello, Mr. Corleone"
"Hello, Paul, just call me Vito, my friends all call me that. Haha"
"Haha, okay, Vito. Is there any news about what I asked you to find out for me last time?"
"Yes, Paul, there is news from Luciano, the godfather of the Jewish gang, that he wants to meet you in Reno to talk."
"Do I have to go to meet him to talk? Okay, you tell them, I will go to see him as soon as possible. Thank you, Vito."
"Haha, you're welcome, we are friends."
After saying that, the two exchanged a few words and hung up the phone.
The last time George went to visit Corleone, through chatting with Corleone, George learned that the underground world of this world is not like the five largest families in the Godfather movie.
In this world, there are also the five Italian families of Corleone, Bassini, Tattaglia, Scurazzi, and Cuccio from the Godfather world, as well as Irish gangs, black legions, Asian gangs, Jewish gangs, etc.
Gangs, nearly 20 of the largest gangs in this world form an organization called the Underground Committee, and the five largest gangs are called the Five Families.
Chapter completed!