The Battle of Paris caused huge casualties of nearly 1.5 million people, which shocked all countries around the world. This huge number frightened other countries who were interested in fishing in troubled waters. It was too scary.
However, although most countries have vowed not to join this bloody war, there are still countries that are overjoyed.
Among them, the most important and most influential one is the United States.
As the world's largest industrial country, the United States, protected by two oceans, is often called the chosen country.
Abundant food and minerals and a superior external environment have created a unique industrial base in the United States.
The United States has always had a unique appeal to Europeans, especially the poor. The United States has brought abundant human resources and has also accelerated the progress of industrialization in the United States.
Especially the outbreak of World War I caused a large number of wealthy people to flee to America, which was far away from the war.
The rich and industrialized United States has become the first choice of the rich.
These wealthy Europeans who fled to the Americas brought a large amount of capital and technology to the United States. Take the New York stock market as an example. After the war broke out, the New York stock market was closed for four months in response to public panic. Then we saw the war getting worse and worse.
After the war became more and more brutal, Americans slowly realized that this war allowed the United States to provide ammunition, raw materials and other commodities to both warring parties, which would lead to a huge increase in public interest in stocks.
Sure enough, after the stock market opened, the stock index skyrocketed, with an increase of up to 5%, and then the stock index continued to rise. By October, the New York index had risen 120% compared to the close, and the situation was very good. The reason why the situation in the United States is better than in history is
The Allies attacked more violently, and the European Entente suffered greater losses than in history.
As for the United Kingdom, the mainstay of the Allied Powers, its Royal Navy, which is the foundation of the country, suffered two consecutive defeats in the North Sea and the Mediterranean, with considerable losses. This performance was really shocking, and it did not have the arrogance it had before the war began.
Not to mention the land battles, except for Austria-Hungary, which is a little more boastful, Germany and Italy are very fierce, and France has occupied a large area of territory. If it were not for the tragic victory in the Battle of Paris, the Allies would have been defeated this year, and the United States
You have to worry about the money you borrowed.
Yes, before the war broke out, Britain and France held US$3.7 billion in US debt and were creditor countries of the United States.
After the war started for more than a year, the United States has not only paid off its debts, but also owes the United States a debt of 2.3 billion U.S. dollars. The country that owes the most is France, which suffered the most losses, and owes a total of 1.4 billion U.S. dollars. The United Kingdom is much better.
, only owes US$700 million, and the remaining US$200 million is borrowed by Russia.
Compared with the Entente camp, the Alliance camp is much worse. Since the war began, the total amount has not even reached 100 million US dollars.
The main reason is that the Atlantic Ocean is basically filled with British and French ships. The German Navy is trapped in the North Sea, and Italy is in the Mediterranean. Currently, neither Germany nor Italy has the ability to open the Atlantic Ocean, so even if Rose wants to trade with the Allied camp, it will be quite difficult.
Of course, compared with Britain and France, which have accumulated wealth for hundreds of years, it is difficult for the Allied camp to earn much money. This is simply because American factory owners feel more comfortable putting away pounds and francs.
However, it is not good to collect more pounds and francs, because on the one hand, they depreciate, and on the other hand, they are difficult to exchange for gold. As a gold standard society, it is a huge social problem that the currency cannot be exchanged for gold. This will lead to a substantial devaluation of the currency.
, in addition, it will also make people unwilling to accept it.
Of course, the best way is to borrow money, so after the victory in the Battle of Paris, a wave of proposals for issuing national debt was submitted to Washington.
At this time, the issuance of debt by Britain and France in New York required the approval of the U.S. government. A series of previous defeats made British and French debt unsaleable in New York, even if the interest rates were raised. After all, although the people wanted the high interest rates, they were still afraid of not having it.
Received the principal.
Taking advantage of the opportunity of winning in Paris, Britain and France went all out to promote this victory, calling it a turning point in the war. They believed that after winning in Paris, Britain and France obtained the password to deal with the Germans. As long as they follow this method, they can
Use battle after battle to drive the Germans out of France, and then the British and French forces can invade Germany and push them across the Rhine River to Berlin.
Of course, this is the worst situation for the Germans to refuse to surrender. If everything goes well, they will declare surrender after crossing the Rhine River, because all their troops have been exhausted. Britain and France have huge colonial armies.
If ten of these people die and one German is wiped out, they all make a profit.
Don't underestimate the methods used by Britain and France to guide public opinion. A defeat can be promoted as a victory, let alone a victory in itself.
As a result, under the victorious publicity, the application submitted by Britain and France to issue bonds of up to 1.5 billion US dollars in New York was not placed in front of President Wilson. Such a large bond issuance amount cannot be decided by the New York Stock Exchange.
President Wilson, who had been in office for almost two years, pondered for a while while looking at the bond sale application submitted by the British and French Treasury Departments.
"What was the reaction from Wall Street?"
Faced with the president's inquiry, the stock exchange said, "Wall Street hopes to undertake the issuance of this debt."
Wall Street must be supportive. This time Britain and France offered huge profits. It is not Wall Street's style to make money without making money. What if Britain and France fail and their bonds depreciate or become waste paper?
This is a problem for those who buy bonds. Bonds are risky and they must be cautious when entering the market. They can definitely ask the government to help them demand wages by force. Wall Street is very willing to provide financing to the government.
After asking the stock exchange, President Wilson looked to others. "Do you think this debt can be issued?"
Facing the president's words, Secretary of the Navy Josephus Daniels said, "I don't know whether to allow the issuance of this debt, but I think we cannot lack the ability to collect debt."
The Secretary of the Navy, a former publisher, is a model of the civilian navy. As soon as he took office, he rejected the request of naval officers to establish a staff, and believed that this was to Prussianize the U.S. Navy. Later, he suppressed the top brass of the Navy.
He conspired with his supporters to formulate naval reforms and dismissed seven high-ranking naval officers who had conspired.
It can be said that he suppressed the navy from top to bottom and was quite skillful.
Of course, he also developed the navy and constantly applied for shipbuilding. Of course, in addition to expanding the strength of the navy, he also gave benefits to the then chairman of the U.S. Senate Naval Affairs Committee, Benjamin Tillman (the backer), and handed over orders to him.
Although the companies in the constituency were a little slow in building warships for the first time, the Navy Minister was not in a hurry, and now he is not in a hurry to go to the battlefield.
Under the leadership of this wise Secretary of the Navy, the current training level of the U.S. Navy is sky-high. With a reloading speed three times lower than that of the navies of Great Britain, Germany, Italy, etc., it has a dispersion area that is more than twice as high. If others knew
, my jaw must have dropped, what kind of African navy is this?
Daniels' words made the audience burst into laughter.
At this time, Army Secretary Newton Buck said with a smile, "I agree with Daniels's opinion. Our Army also needs to increase its ability to collect debts to ensure that the money lent can be recovered."
It is obvious that these two military leaders are asking for more military spending.
Regarding these two words, Wilson said nothing and looked at the other one, Secretary of State Robert Lansing.
"I think the current situation is because we have agreed to debt applications from Britain and France, but the amount has to be reduced to some extent. In addition, we can ask for a mortgage, such as the Bermuda Islands."
Okay, everyone understands what Secretary Lansing said. This requires taking out collateral.
Faced with the Secretary of State's proposal, Wilson looked to the others. "What do you think of Lansing's idea?"
"Yes, that's entirely possible. At least there must be collateral, otherwise our risk will be too great."
"Yes, we only need those we can get. Those from the Americas and the Atlantic are very good."
…
In the midst of everyone's discussion, President Wilson finally agreed with the Secretary of State's words, and then President Wilson looked at the Secretary of the Treasury, Mr. McAdoo.
"President, please rest assured that I will work with the Secretary of State to express our attitude to Britain and France."
After receiving the answer from the Secretary of the Treasury, President Wilson looked at the two secretaries of the Navy and the Army. "Your proposal is good. I will push for it to be passed in a while, and you will come up with a feasible and feasible plan."
"OK."
As for why the United States actually asked for collateral, in the final analysis, it was because the Entente camp was too weak. Although it made a great effort, the United States was afraid of weakening again, so it was not surprising that it asked for collateral.
In the face of the United States' request for collateral, Britain and France are naturally unwilling. However, as the Finance Minister and Secretary of State insist on insisting that if you want to issue huge debts in the United States, you must have collateral. This is their responsibility to the American people. Faced with
The Americans refused to let go of the conditions, and coupled with the urgent domestic needs, Britain and France had to bite the bullet and agreed. They took out American islands and colonies as collateral.
However, since a mortgage was required, Britain and France naturally had to borrow more. After packing up a large package of North American islands, Caribbean colonies, etc., Britain and France asked for a debt of US$2.5 billion. After some bargaining, it was finally reduced to US$2 billion.
From then on, the bond issuance was completed.
Compared with the unhappy Americans, the British and French are happier. I am not afraid that you will become my creditor, but I am afraid that you will not lend me money.
