Del looked at the telegram handed to him by the guard, which described in detail the outbreak of the crisis. This was another act of committing suicide on Wall Street.
The Knickerbocker Trust Company, the third largest trust company in the United States, borrowed heavily to acquire shares of United Copper Company on the stock market. However, the failure of the move triggered a panic on Wall Street and rumors that Knickerbocker was about to go bankrupt. Banks called in loans one after another.
The stock market plummeted, people ran on stocks, and several major banks were on the verge of collapse.
Seeing this news, Edel became more vigilant about capital. In later generations, the two best examples of state control of capital and capital control of the country are China and the United States. As a person with experience in later generations, capital
It has no borders and will follow profits. As long as it cannot find high profits in one country, it will look for them everywhere in the world.
Eder can now take advantage of the fact that Romania's capitalists have not developed and completed the strategic layout first. Let the people feel the benefits of royal capital, and they will not let the people be influenced by capital. Anyway, Romania only has a population of 7.5 million, and it can be driven by royal capital.
Let the people be grateful to the royal family. It was also called national capital in later generations. In fact, Edel came from the largest developing country in later generations.
In the following days, the financial crisis in the United States continued to ferment, and rumors suddenly began to spread in New York that Knickerbocker, the third largest trust company in the United States, was about to go bankrupt. The rumors quickly infected the entire New York like a virus, and terrified citizens queued up all night in front of various trust companies.
Withdraw their deposits. The bank required the trust company to repay the loan immediately. The trust company, which was double-sided, had no choice but to borrow money from the stock market. The interest rate on the loan suddenly shot up to a sky-high 150%. By October 24, the stock market trading almost came to a halt.
state.
Morgan appeared as a savior at this time. When the chairman of the New York Stock Exchange came to Morgan's office to ask for help, he said with a trembling voice that if $25 million could not be raised before three o'clock in the afternoon, at least 50 traders would go bankrupt.
, he would have no choice but to close the stock market. At two o'clock in the afternoon, Morgan held an emergency meeting of bankers. Within 16 minutes, the bankers raised enough money. Morgan immediately sent people to the stock exchange to announce that the loan interest would be 10%
The exchange immediately cheered when the supply was opened. Only one day later, the emergency rescue funds were exhausted and interest rates skyrocketed again. Eight banks and trust companies had collapsed. Morgan rushed to the New York Clearing Bank and asked for the issuance of bills as temporary currency to cope with the severe crisis.
cash shortage.
On Saturday, November 2, Morgan began his long-planned plan to "rescue" the still-precarious Moores Lane Company. The company has fallen into $25 million in debt and is on the verge of bankruptcy. However, it is the largest company in Tennessee Mining and Industry.
The main creditor of the iron and steel company, if Mooresley is forced to go bankrupt, the New York stock market will completely collapse, and the consequences will be disastrous. Morgan invited all the big names in the New York financial circle to his library, and the commercial bankers were arranged in the east study.
The boss of the trust company was placed in the west study room, and the financiers who were in panic all day long were anxiously waiting for the fate that Morgan had arranged for them.
Morgan knew very well that the iron ore and coal resources in Tennessee, Alabama and Georgia owned by the Tennessee Mining and Iron Company would greatly strengthen the monopoly position of the steel giant that Morgan founded - U.S. Steel. In antitrust
Under the constraints of the law, Morgan has always been unable to swallow this piece of meat, and this crisis created a rare merger opportunity for him. To get this piece of fat, Morgan still has to pass the final hurdle, then
It was President Roosevelt who was unambiguous about antitrust. On the night of Sunday, November 3, Morgan sent people to Washington at night to get the president's approval before the stock market opened the next Monday morning. The banking crisis caused a large number of companies to collapse.
, tens of thousands of angry people who lost their life savings formed a huge political crisis. Roosevelt had to rely on Morgan's power to stabilize the overall situation. He was forced to sign a city alliance at the last moment. At this time, there was only one day before the stock market opened on Monday.
5 minutes!
Morgan acquired the Tennessee Mining and Ironmaking Company at an ultra-low price of US$45 million, and the company's potential value, according to John Moody's assessment, was at least around US$1 billion.
It is obvious that this financial crisis is another precisely targeted explosion that has been planned for a long time.
The impact of this incident on the United States was that the United States established its own central bank and the birth of the Federal Reserve. Unfortunately, the U.S. central bank is completely controlled by bankers. This is a symbolic event that the United States is controlled by capitalists.
The decline in production caused by this crisis was more severe than any previous one. In monthly figures, steel production fell by nearly 60%, pig iron by 38%, locomotives by 69%, freight cars by 75%, and new railway construction by 46%. In 1908,
New construction contracts fell by 23%, and more than half of the companies owned by steel trusts were suspended. The number of unemployed people was higher than ever before.
This crisis quickly spread to other countries. The United Kingdom, which has close economic ties with the United States, was the first to be affected. The depth of the crisis was second only to the United States. In 1907, ferrous metal consumption decreased by 20%, pig iron production fell by 11%, steel production fell by 19%, and the tonnage of new ships
A decrease of 48%, cotton consumption dropped by 14%. From 1906 to 1909, the price of pig iron fell by 25%.
The crisis was also very serious in Germany. In 1907, ferrous metal consumption fell by more than 20%, steel production fell by 13.1%, and the tonnage of completed merchant ships decreased by one-third. The construction industry suffered the most heavy losses, and business volume shrank by 36%. Correspondingly,
, cement and other building materials industry output fell by nearly half. The losses in the light industry were also not small. The export of cotton yarn and cotton cloth decreased by 18%, and the price of cotton cloth fell by 23%. It is worth noting that although the consumption of ferrous metals has shrunk, due to the high degree of monopoly in this industry
, the price of ferrous metals increased by 14%.
In 1907, France's industrial production dropped by 6.5%. Among them, the crisis in the silk spinning industry was the most serious, and silk fabric exports dropped by 24%. The crisis not only worsened the lives of workers, but also affected the lives of teachers and state civil servants, and trade union activities became active.
.In 1909, at the University of Posts and Telecommunications in Paris, telecommunications were temporarily interrupted.
During this period, Edel watched the crisis continue to ferment, but he had no choice but to control Romania's domestic capital. There are currently no capitalists in Romania, and the royal family is the largest capital in the country. In this crisis
The biggest impact is on Volkswagen, which originally expected 35,000 vehicles in the European market. During this crisis, many entrepreneurs canceled orders, making Volkswagen no longer dare to produce trucks at full capacity.
After Edel discussed with the king, Romania announced the establishment of its own central bank, the National Bank of Romania. Foreign banks with financial operations in Romania need to pay a 15% deposit for their business in Romania to the central bank. Regarding the domestic government's announcement, in view of Romania's
Domestic banks are weak and will be merged into three medium and large banks. They will also have to pay a margin of 15% to the central bank.
