Chapter 71: The Economic Crisis of 1847 (Part II)
Historically, the Mexican-American War was started by Polk, but it was obviously unrealistic to use troops against Mexico at this time.
Extending the border to the north is also irrational, but it would be a different matter if it could be resolved through negotiations.
If some people were sacrificed, they could win land for the United States, and Polk was more than willing to do so.
As a result, the British and American high-level hit it off, and the two sides began to exchange interests. The United States allowed British goods to enter the American market, and the British colonies recognized the American sphere of influence.
The factory owners in the north are wailing, while the manor owners in the south are already buying out. But people in this world who betray their own class interests usually end well, and Polk is no exception.
Mr. President was ambushed by gunmen on a small road, and Mr. Polk, who was growing stronger, drew his pistol and returned fire, and was killed in the back of the head by a bullet from nowhere in pursuit.
Vice President Dallas took office temporarily, and as soon as he came to power, he annulled the trade pact between Polk and the British.
However, when it comes to changing faces, the British are not far behind, and they immediately tore up the border agreement between the two countries and sent troops to expel the Americans and American troops.
These two agreements, which were quickly signed and quickly abolished, became the famous "two pieces of waste paper" in the mouths of later historians.
In addition to the external situation, the British also have internal measures, that is, to limit the decline in food prices, and to ensure the interests of grain merchants through official pricing.
Food is not another commodity that can be bought later, and people have to eat if they want to live. Although the grain merchants were saved, people had no money for other consumption.
As a result, this economic winter is exceptionally cold, and all walks of life have been affected, and the number of factories that have closed in one month is as high as that of the past year.
At this time, the British government's bailout policy also included the government borrowing money to buy a large amount of grain to ensure the rapid return of funds from grain merchants.
As for the debts owed by the government, it will naturally be handed over to the wisdom of future generations. If all the money is used to save the city, then the Spanish civil war will naturally not be able to fight.
But their opponents, the French, were not much better, and the French Jewish bankers lent money to the British government in order to make high profits.
As a result, France, which should have benefited, also fell into financial difficulties, and the elite soldiers of the foreign legion could not work without military pay, and even helped them.
The soldiers of the French Foreign Legion, due to the arrears of their salaries, began to slack off and even carried out gang robbery, turning the rear of the Spanish orthodox faction upside down.
Although the Spaniards did not have the grandeur of their ancestors, they had the pride of never bowing their heads, and the Spanish people began to organize guerrillas to fight against the French Foreign Legion.
Not to mention that the French army, which had no salaries at this time, even the undefeated army led by Napoleon could not conquer Spain.
Soon the Foreign Legion was on the verge of collapse due to the lack of pay and casualties, and Louis Philippe had to withdraw his troops to prevent the situation from deteriorating further.
Successive poor harvests have brought down French agriculture, with the price of almost all crops rising fivefold.
In fact, the French did not make any efforts, and they bought large quantities of grain from Russia in the hope of alleviating the food crisis at home.
But the reality is that the next neighbouring region of Germany is flooding, and they themselves are in a drought.
Due to the drought, the water level of the Rhône River was lowered, the river was impassable for large ships, the French railway was not built, and the grain bought from Russia had to stay in Marseille.
Note: Marseille is a port in the south of France with convenient water transportation.
In fact, the railway was contracted by Franz's leather bag company, and he only bought the construction rights through bribery and other means, but did not start construction.
It's not all because Franz wants to play against the French, in fact, Franz feels that he is completely overthinking.
Because most of the railway lines in France have not been started, Franz has not started construction in order to be less unconventional.
In addition to the collapse of agriculture, industry in France has not fared much better, and the great development of the previous years has caused factory owners to increase their investment.
But Louis Philippe and Guizot worked together to ignite the colony's beacons, and heavy taxes greatly reduced the purchasing power of the colonies, and even caused large-scale uprisings.
Texas, once a model colony, has now become the least secure area in the French colonies, and violent tax resistance is common.
In order to suppress the uprising in the colonies, the French invested much more than they received from taxes.
The most important thing is that almost all of France's colonies are in rebellion, and there are strong rebel armies everywhere, so France has to devote all its energy to fighting.
The boom in textiles was also due to trade with the East, but the British decided to monopolize India and the Far East in order to solve their economic crisis.
The British began to crowd out the French merchants, and the gap between the two sides' influence in the East was too large, and the French were defeated without any suspense.
At the same time, due to Franz's opening of trade routes to Japan, a large number of cheap Japanese raw silk began to pour into the European market, which was another fatal blow to France.
At this time, only Lyon, France and Venesia in Austria produced silk on the European continent, so France was able to make huge profits from this every year.
As a result of all this, the profits of the French textile industry have plummeted, and due to the overproduction caused by the previous overinvestment, coupled with the reduction of sales, the factories have had to resort to mass layoffs and shutdowns to protect themselves.
As a result, workers were unemployed and unemployed, giving rise to large numbers of beggars and vagrants.
France's coal and iron industry has also begun to shrink, as investors have flocked to the steel and coal industries in hopes of getting a piece of the pie due to the previous wave of railway construction.
However, the imaginary wave of railway construction did not appear, many projects were delayed, there was no market for steel, and the demand for coal was naturally not so strong.
In 1847, pig iron production in France fell by 21.8%, wrought iron production by 27.7%, and coal production by 22.4%.
The most exaggerated is the production of steel, which has almost been cut in half in one year.
Louis Philippe's series of operations, such as lending money to the Russians (to buy Alaska) and transporting souvenirs from Egypt, were coupled with France's own natural and man-made disasters and the intensification of colonial contradictions.
At this time, the deficit rate of the Orleans dynasty was as high as 45%, up to 630 million francs. Historically, the deficit rate of the Orleans dynasty has been maintained at more than 25% all year round, but the French are more aggressive and richer in the book, so the deficit rate is higher.
In fact, before 1843, the Banque de France had reserves of up to one billion francs, which was the pinnacle of the French, but with the expansion of Louis Philippe and the ruling class of the House of Orléans.
A great deal of war and construction made gold disappear like water, and at this time there were less than 30 million francs of gold reserves in the French treasury.
However, at this moment when Louis Philippe needed his bankers the most, the French financiers chose England.
My family was hospitalized and went to accompany me.
(End of chapter)