Chapter XXVIII. Investment
At the end of 1922, the Huntelaar consortium was completely reorganized. Pen ~ fun ~ pavilion www.biquge.info
After selling off all the non-core companies and transferring a large number of patented technologies, John made up to $800 million in cash. Combined with the gains made over the years, especially in World War I, he had more than three billion dollars in cash on hand - all of which was his personal property!
Huge numbers, shocked the US government!
Although few people know the exact amount because it is not listed, as a bank under the federal system, Huntelaar Bank must be regulated. So when the U.S. government - and a very small number of people, of course - learned of John's fortune, President Mr. Kent immediately came to New York to visit his big financiers!
Three billion dollars, almost one-twentieth of the GDP of the United States!
After some detailed discussions with the President, the Huntelaar Bank began to mobilize these funds on a large scale, sending them to the Far East and Europe! By the end of 1925, $2.2 billion had flowed into China, and $600 million had flowed into Germany!
And as early as 1922, the Chinese government began their ten-year plan!
With these funds from the Huntelaar consortium, the Chinese government began to invest heavily in infrastructure, both to improve the situation at home and to cope with the post-war economic depression. For this reason, John even gave up continuing to subsidize the students studying in the United States on a large scale to return to China to start their own businesses, except for ensuring that there were enough funds for publishing and education to continue to develop, everything else could only be carried out within the scope of the Far East branch of the Huntelaar Bank.
Huge plans, naturally, require huge sums of money.
According to the plan of the Chinese government and the advisers of the Huntelaar consortium, from 1923 to 1933, China planned to build at least 20,000 kilometers of railways, 100,000 kilometers of roads, increase the output of steel to more than 5 million tons, produce more than 100 million tons of coal, generate more than 30 billion kilowatt hours of electricity, produce more than 50,000 automobiles, more than 500 aircraft, and produce 300,000 tons of ships......
Without a doubt, this is a very large plan.
Historically, in 1933, because of the mistakes in development, China's steel production was almost negligible, and although the coal output was more than 20 million tons, it was only half of Japan's; Only a little more than 100 kilometers of railways are built every year, and you can't even think about cars, planes, or anything. But because of the emergence of John, there are already many international students and experts in steel, automobiles, airplanes and ships, as long as they have capital and equipment, they can produce, and the output of coal and electricity is at least five times higher than that of the same period in history!
If completed, China's steel and coal production in 1933 would have reached the level of the United States at the end of the 19th century, and the power generation and automobile production would have reached the level of the United States in 1914. As for the gap between railways and roads, it is difficult to compare, but there is no doubt that if these plans can be completed, China will no longer have to worry about the country to the east!
This kind of strength will far surpass that of Japan.
With such a foundation and strength, by 1929, China had a certain ability to cope with the impact of the Great Depression, and even took the opportunity to usher in its own good opportunity to rise! And then in the following World War II, together with the United States, became the biggest beneficiary of the war......
In addition to China in the Far East, another $600 million was invested in Germany by John.
At the beginning of 1923, John? Huntelaar personally traveled to Europe and signed a huge investment program with the German government. According to the agreement signed by the two parties, the Huntelaar consortium will provide mineral resources, machinery and equipment and other materials at a low price to help Germany rebuild its industrial system; At the same time, the Huntelaar Foundation will provide grain and other agricultural products as well as various daily necessities to Germany at low prices to help Germans return to normal life. But in return, Germany had to provide advanced mechanical, optical, chemical and other technologies, and allow the Huntelaar consortium to recruit a large number of teachers and skilled workers to work in the Far East.
With the help of the Huntelaar consortium, Germany began to recover.
With a strong industrial base and a large number of talents, and with funds and resources, the Germans took the opportunity to update the machinery and equipment that had been stolen by the Entente, improved productivity and product quality, and greatly increased their competitiveness. Moreover, through exchanges with the Huntelaar consortium, the Germans also obtained the technology they desperately needed, such as automobiles, radios, airplanes, etc., and the products produced quickly occupied the European market, especially those countries that were originally part of the alliance......
Of course, while receiving, the Germans also gave a lot.
The various technologies and patents accumulated over a long period of time quickly made up for the shortcomings of the Huntelaar consortium and were sent to the Chinese branch by them at the same time. At the same time, due to the inability to provide sufficient jobs and salaries in a short period of time, about 40,000 Germans with knowledge and technology left their homeland, a small number of them went to North America to join the Huntelaar consortium, and most to the Far East. Outstanding teachers become teachers in various universities, primary and secondary schools and technical schools, and start teaching careers for at least five years; A larger number of engineers and skilled workers joined the construction army, rushing to work on railways, power plants, steel mills, coal mines, and other construction sites......
All of this is on the surface.
In addition to these people, at least 3,000 top talents have gone to the Far East, joining Chinese weapons manufacturing companies, tank factories, aircraft factories, and the five largest shipyards. While working in Chinese companies and mentoring Chinese students, these people also worked with Chinese to begin research on the next generation of aircraft, tanks and warships, trying to use Chinese funds to serve the future of Germany......
The participation of the Germans immediately relieved China's urgent need.
At the beginning of the 20th century, Germany undoubtedly had the best talent in the world, and if it were not for John's foresight, it would have been almost impossible to lead Germany in the fields of aircraft and tanks. And while there has been a large number of international students in the past two decades, there are still too few of them for the huge China and the equally large 10-year plan. The arrival of more than 30,000 German talents has undoubtedly alleviated this dilemma. All China needs to pay is a salary of more than $1,000 per person a year – money that is not even given by the Chinese government, but by the Huntelaar, Rockefeller, and Morgan consortiums.
The numbers are huge, but they are definitely worth it in John's opinion.
In five years, these Germans laid a solid foundation for China. In the same five years, the Germans earned hundreds of millions of dollars in salaries to send back to Germany, supporting their families and replenishing some vitality for Germany, while some elites also maintained their own level, helping Chinese develop shipbuilding and military industry, while also avoiding the post-war sanctions on German armaments, allowing them to save a lot of time......