Chapter 1325: The Loss of the World Financial Center (Crazy at the End of the Month)
Sure enough, things are indeed as British Prime Minister Gladstone imagined, and the London Stock Exchange, as well as other exchanges throughout London, is already in shambles, wailing all over the field.
The company's office in the bustling neighborhood of Westminster was empty, leaving only two cleaners, and when they saw the bailiff who seized the company, they hurriedly greeted him, claiming to call the police to demand wages - the damn owner of Honny's company even owed the cleaners' wages.
The final price of Honny's shares did not hit the point of 50 pounds per share, but at 64 pounds, it was completely unsellable. The huge run, the swarm of exodus, made the London Exchange unbearable.
And not long ago, an astonishing news came, which completely stunned the whole of London, and made the entire crazy people who held rubber stocks completely dead:
The Ministry of Agriculture of the Chinese Empire announced that after nearly seven or eight years of hard work, funded by the imperial court, 240,000 hectares of rubber economic belt that has been put into operation has been initially established in its own territory, and it is expected that the annual output will reach 90,000 tons in the near future and the rubber plantation planting base with an annual output of more than 120,000 tons in five years!
They are arranged on Qiongzhou Island, Luzon Island, Nha Trang in Vietnam, Songkhla in Malay Peninsula, Mazen in Borneo, Coconut City and Semarang in Java, and Medan in Sumatra.
In addition, in addition to the rubber plantations of these imperial state-owned capital, private capital has also begun to invest in rubber plantations on a large scale, and 30,000 hectares of rubber plantations have been built, with an annual output of nearly 9,000 tons, and it is planned to continue to expand 130,000 hectares in five years, bringing the private rubber plantations to 160,000 hectares, in order to cope with the growing demand for rubber and reduce the price of rubber. The Chinese Empire welcomes private capital from all over the world to invest there.
At the same time, in order to protect the rights and interests of rubber plantation owners in the Chinese Empire, the Imperial Court decided to restrict rubber from outside the Empire from entering the Chinese Imperial market.
As soon as this news came out, it immediately became clear to the entire London Stock Exchange that this was premeditated. But they couldn't say anything, because the news had been released a month earlier, and because of the long distance, and for unknown uncontrollable reasons, the news had only reached London at this time.
And with the arrival of this news, people who invest in rubber throughout Europe understand that the production of this rubber has increased significantly, and there will be more and more in the future, and even if the demand for rubber is high in the future, there will be no higher prices. The Chinese Empire restricted the import of rubber, and all the rubber needed was supplied by its own domestic production. The Chinese Empire is currently the world's largest rubber demander, and the production of cables and the use of pneumatic tires, as well as the strange ideas of making rubber into rain boots, raincoats, rafts, etc., are all made by them, and even they have other uses for rubber. The previous surge in international rubber prices was precisely due to the Chinese Empire's series of cable-laying plans and huge four-wheeled carriage order plans.
And now, all this has come to naught because of an executive order from the other party! But knowing that the other party is deliberate, but can not say anything, whether to purchase rubber or not, that is the freedom of a country, and this country is still the most powerful country in the world, and the main output of rubber in the world comes from the other party's plantations.
In fact, at this time, everyone also woke up from the fiery frenzy of rubber stocks. If the Chinese Empire's proclamation was not deceitful, there was no need for them to deceive, the Chinese Empire's rubber production alone is now nearly 100,000 tons per year! In the past few years, the total demand for rubber in the whole world has only been a few thousand tons. If the Chinese Empire did not use rubber, then the rubber they produced would have been greatly surplus, so the price of rubber itself was destined to be completely controlled by the Chinese Empire!
And before this news was digested, another news spread.
Sandersoni, the European shareholder of the company, claimed that he had made a mistake in his investment, and that the rubber plantation of the company was actually just a coconut grove, and the rubber output of the company actually referred to the output of coconut water. Of course, if the majority of investors want to continue to invest, he can cut down this coconut grove on behalf of Hongni Company and plant the best rubber saplings instead, this time to ensure that the wrong tree species will not be recognized again, and the majority of investors and shareholders can send representatives to accompany him to the plantation site and plant rubber saplings by hand.
And if the majority of shareholders are no longer willing to continue to invest, there are two options. First, everyone can share the rights and interests according to the shares, the coconut grove produces a lot of coconut water, to ensure that each share can get more than one pound of coconut every year, but maybe transportation is a problem, and when the coconut water is transported from the East Indies to Europe, I am afraid that it has stinked too much. The second is that he buys back everyone's shares on behalf of the Honi company, at a price of 3.5 pence per share, to buy back the shares in everyone's hands.
The entire Hongni shareholders gathered on the London Stock Exchange were completely furious!
Most of them bought Honny shares at £350, but everyone was looking for double their earnings, and who wanted to pay £350 per share just to ship the stinky coconuts back to Europe?
Not just a few months ago, when £350 per share was spent, only to be sold now at 1/24,000 for 3.5p per share!
These losses were so heavy that they even lost all their savings, and even went bankrupt with a lot of debts to the point that they could not repay the shareholders of Hongni Company in the next life.
Stockholders, filled with anger and despair, stormed the London Stock Exchange and smashed the gold-swallowing house to pieces, and the crazy robbery incident occurred at once. Desperate stockholders carried everything they could from the London Stock Exchange, and the police and military began to suppress it. The people, who had lost their minds, were completely unafraid of the armed forces of the military and police, and went straight to meet them, and the bloodshed broke out quickly.
Not only the London Stock Exchange, but also other large and small exchanges in London, as well as various exchanges throughout Great Britain and even Europe, there were smashing and looting, and everything was out of control in front of the people who lost everything and lost everything.
And just when the rubber shareholders were smashing and looting and wreaking havoc, British Prime Minister Gladstone dispatched a large number of manpower to begin to investigate the bad financial incident that made the already precarious British Kingdom worse.
According to preliminary statistics, in this premeditated financial war, the British alone invested 220 million pounds in the rubber stock exchange in London, and about 73 million pounds in other European markets such as Paris.
The most important thing is that it is not only those who directly buy rubber stocks that have suffered losses, but also the major commercial banks in London and Europe, especially Lloyds Bank and Barclays Bank, two of the largest private commercial banks in the United Kingdom, which provided credit guarantees for the Honny Rubber Company, have also suffered huge losses. But even then, it was too late, and the total net worth of the two commercial banks, only twenty or thirty million pounds, and the shares they borrowed in exchange for mortgage were now almost worthless.
More private lending, especially the mutual lending between underground banks and small commercial banks, especially some loan sharks, followed the stock crash and went bankrupt. Some smart small commercial banks, or lending companies and underground banks, saw that the situation was not good, and sold their pledged stocks in advance or released the pledge to recover the cash, and escaped.
The founders of some more privately capitalized rubber companies, like the major shareholders surnamed Hong, have long taken advantage of the asymmetric advantage of the time difference in information dissemination or their own sensitivity to crises to sell their company shares one after another when the stock price is at a high level, and fled to Britain and even Europe early with huge sums of money, and among them, there are many capitalists from the East and the Americas.
Unfortunately most of the bankrupts. Not just shareholders who hold shares, but also related parties, depositors who are pledged by shares, or who borrow money from commercial banks and underground banks in London and Paris. These large number of small banks or money banks, due to the sharp drop in the price of rubber stocks and even now almost waste paper, and the serious failure of capital turnover, had to frantically declare bankruptcy and bankruptcy, and the funds they lent to those who bought rubber stocks were not their own, but borrowed from other money banks, commercial banks, factory owners, merchants, and aristocrats, so that the money owed to other money banks, banks, and private capitalists involved more and more complicated. According to British Prime Minister Gladstone's investigation, the deficit involved has reached a total of 100 million2 pounds, which has a strong impact on the financial and social aspects of London and the entire Kingdom of Great Britain.
Due to the external, systematic, transmissive and risky nature of the financial market, after suffering the devastating losses of the rubber stock incident, a number of well-known commercial banks such as Lloyds Bank, Barclays Bank, Macquarie Bank, Standard Chartered Bank, Midland Bank, and Westminster Bank were implicated in the collapse of the financial market, and the financial market fell into panic.
Even Prime Minister Gladstone immediately took measures to raise funds from France and borrowed funds from the Kingdom of Great Britain, but France not only refused to lend, but also complained that the British had affected their French financial circles, and the Kingdom of Great Britain's finances were also very poor.
Even Gladstone was prime minister, but there was nothing he could do to prevent the ripple effects of the financial crisis from worsening.
A number of managers and business representatives of underground banks, loan sharks, and commercial banks have absconded with the assets and customer deposits they can control, resulting in greater losses in financial chaos, and even other banks that have not yet gone bankrupt have also run on them, and other industrial factories have also begun to be urged by the banks to repay the debt funds they have borrowed, and have been forced to sell assets cheaply, which has greatly affected the factory industry. The British factory industry, originally because of the extreme recession of the textile industry, coupled with this financial turmoil, is even more miserable, and all walks of life have begun to be more depressed.
In this way, London's status as the world's financial center was shattered at once.
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