Section 667 Once Upon a Time in the United States (1)
Canada and the United States want it, but the United States would rather not go to war with China for this.
The United States refers to the Northern Federation of the United States, and the Confederate States of America (the Confederate States of America) have become a country of their own, and since both sides have the three words "America" in front of their names, the outside world has begun to refer to the United States of America and the Confederate States of America respectively.
After the end of the civil war and the partition, both the United States and the Union States were in fact in a difficult time.
The main difficulties they faced after the war were all political. Because both the North and the South owe huge foreign debts, their taxes could not even pay interest at one time, because the two federal regimes, the central power is too weak, the state power is too large, and the federal government's ability to collect taxes is too weak, and basically only one tariff is a stable tax source.
The North is relatively better, they have strong industrial strength, relatively strong financial strength, and although there is no time to pay off their foreign debts, they still have the ability to borrow new debts and repay old debts.
The situation in the South is very bad, not only do they owe huge foreign debts, the economy is almost collapsing after the war, the credit of the Union dollar is gone, the value of the currency is less than 1 percent of the pre-war period, and it is still depreciating rapidly, and basically the American knife of the Southern Union has completely become waste paper.
In addition, the battlefield is mainly located in the south, so the loss of material wealth in the south is very huge, and it is also facing the severe task of post-war reconstruction.
Huge unpayable debts, collapsed hyperinflation and devastated contiguous ruins are the three impassable mountains that the post-war South faced.
So after the war, the South itself almost collapsed, and one million blacks were given free man status during the war, but five or six million blacks were still legally slaves, but in fact, many black slaves had been freed from the shackles of slave owners' plantations because of the war, and they became wandering slaves. After the war, a crime was introduced to protect the interests of slave owners, demanding that these slaves be returned to their owners, and as a result, more than a million middle-aged slaves fled to the north. The slaves who remained in the South, as well as those blacks who were given the status of free men, soon became difficult because they had no ability to survive, and the social order was extremely chaotic.
In the first three years after the war, let alone paying off foreign debts, the governments of the Confederate States were on the verge of bankruptcy many times, and many states were even on the verge of splitting again because they refused to take on foreign debts. It was only after receiving one emergency political loan after another from China that allowed them to maintain the government's existence.
After three years, the situation slowly stabilized, and the reason for the stability was that these political loans were only a small part, and the political loans could only maintain the operation of the government and maintain a basic social order, and the biggest reason for the improvement of the situation was that there began to be a large influx of foreign capital, and these influxes of private capital reactivated the economy of the south, and economic improvement was the solid foundation of social stability and political power.
Due to the lack of mineral resources and the conditions for industrial development in the South, the influx of capital was mainly agricultural capital, and the main capital came from Chinese capital on the other side of the Mississippi River.
On the territory of China west of the Mississippi River, a number of quite strong agricultural capitals have long been born, but it was not these agricultural capitals that were the first to invest in the southern part of the United States, because a large number of free blacks and Indians have become unstable factors after the war, and social order is very chaotic, and chaotic public order is obviously not a good place for investment.
The first influx of capital was actually very passive. Due to the development of a considerable cotton textile industry in the area of Little Rock, with the production of Nanjing cloth and plain weave cloth as the main pillars, cotton yarn mills and weaving factories are very large, and a large part of their raw materials, in addition to some self-produced, are actually from the United States on the other side of the Mississippi River, from Mississippi and Louisiana.
Because of these relations, the impact of the war, the local cotton textile industry has brought the cotton production of the Allied countries to a standstill, which makes these cotton textile industry raw materials insufficient, but they have business ties with those plantation owners, in order to restore the supply of raw materials as soon as possible, some textile mills in the form of advance deposits or even loans, from the plantation owners with whom they have a good relationship.
However, the turmoil of the social order, the release and flight of a large number of blacks, led to a serious shortage of labor, and many plantation owners during the war also had their bonds turned into waste paper due to financial collapse, so although they received a batch of loans, many plantation owners went bankrupt.
After bankruptcy, some of their most valuable assets, that is, plantations, were seized by the government and auctioned off to repay debtors, but in the case of social chaos and slave flights, agricultural development was not optimistic, and even at the reserve price, there were still a large number of real estate that no one was willing to take.
In order to recover the losses, some of the textile capitalists gritted their teeth and took over the land, and after having plantations, they were trying to find a way to resume production, but there were no slaves. Fortunately, they are Chinese, the agricultural culture is deeply rooted in the bone marrow, and there is no habit of using slaves. Chinese landlords are accustomed to hiring long-term laborers or leasing land.
As a result, some landlords began to hire free blacks, while others chose to recruit tenant farmers. The long-term system and the tenancy system began to spread in the Allied States, and after the most difficult two or three years, they began to take effect.
In fact, the cost of hiring blacks is not much higher than that of maintaining slaves, and hiring free labor, although the short-term cost may seem higher than that of slaves with free labor, does not require the payment of an expensive fixed cost of buying slaves, and the initial investment is very low. The tenant system is even less risky, and the land is divided into pieces and rented to black families for cultivation at a fixed rent, which is not very profitable, but it is very stable.
After tasting the sweetness, a large amount of Chinese capital began to pour into the Allied States, at first they looked for bankrupt land that no one cared about, and then they began to buy land in patches after all the land was carved up. This bottom-buying investment lasted for three years, until land prices almost returned to pre-war levels, and then gradually subsided.
This influx of commercial and agricultural capital, which swept through one-third of the arable land in the South in three years, was also of great benefit to the Union Powers, and the influx of investment became a flow of money into the economies of the Union Countries, and this living water stimulated the economies of the Union Countries. At the same time, the influx of capital also reshaped the agricultural economy of the Union countries, so that the pillar industry of the Union countries, cotton cultivation, gradually recovered.
After the most difficult three years, the economy is starting to recover, the deferred debt is slowly being repaid, and the government is not only paying enough to keep itself afloat, but also to fund some infrastructure repairs.
However, the economy of the Union State has been basically controlled by China, and a large amount of large agricultural capital of more than 100,000 mu has been formed here. The long-term labor system and the tenant system began to slowly replace slave labor. Even those plantation owners who still used slave labor gradually discovered that it was better to hire long and short laborers in the free labor market than to buy slaves at great expense, and the millions of blacks who were granted free status during the war were the first laborers in this free labor market. Then a large number of runaway slaves survived by selling their labor.
Although the abolition of slavery had not yet been declared, some plantation owners gradually began to take the initiative to free slaves. It was mainly the old and weak blacks who were the burden, who were almost driven out of the plantations, and who became the second group of free laborers. Due to the pre-war slavery, which led to the lack of a well-established free market in the South, and the widespread discrimination and exclusion of black slaves who had been freed in the early days, these blacks were crowded into a small free labor market, resulting in very low wages. Compared with the Chinese territory on the other side of the Mississippi River, the advantages are huge.
So three years later, after the law and order environment became more stable, the first investors, who had already succeeded in the Union market, saw an opportunity. Some of the first investors were textile industry capitalists, who found that black labor was very cheap, and through contact with black people, they found that these black men who had been slaves were actually quite tame. Having succeeded in resuming cotton cultivation by employing blacks, some capitalists began to move their factories to the territory of the Confederates. At this time, this investment was very cost-effective, on the one hand, because of the decline in black wages, and on the other hand, the financial collapse of the Union countries, which led to the serious overvaluation of the purchasing power of the Chinese currency on the gold standard, and the cost of investment was extremely low.
The only constraint was that the blacks were very incompetent, and they gradually moved factories, first ginning, then spinning, and five years later, the cotton yarn produced by the Confederates had already occupied a huge share of the North American territory.
Due to the distance, the province of Central South where Little Rock is located is the most convenient way to transfer the local low-end industries to the territory of the Union State, and the low-end industries here have quickly transferred under high labor costs after a short period of prosperity, but the wealth accumulated during the boom period has not disappeared, but has become an investment. In addition, the textile industry has passed through here, and it is not that a leaf is not touched, they have left a set of industrial systems. The textile industry is gone, the machinery industry developed by the textile industry is still there, the textile industry is gone, but the local industrial chain is not broken, but upgraded.
Of course, the industrial transfer can not be completed in a year and a half, but the signs are obvious, the trend has emerged, and those who do not conform to this trend will either withdraw or eliminate, and in the end will only leave the high-end textile industry, leaving high value-added industries such as design, garment, machinery and equipment.
It took about five years for a large number of cotton mills in the Central South Province to move across the river, to Louisiana, with New Orleans as the center.
Along with the transfer of industry, the economic improvement of the Union was accompanied by the further bankruptcy of slavery.