Chapter 292: The Delayed Rubber Crisis
At a time when the situation in Europe was experiencing the second Moroccan crisis and the Italian-Turkish war, Arthur and the royal consortium were also doing a lot in Europe.
First of all, because of the tense atmosphere and the upcoming war shown in Europe in these two events, many civilian factories and enterprises in Europe have depreciated in an instant, and even faced the danger of bankruptcy.
Not only in France and Germany, but also in countries such as the United Kingdom, Austria-Hungary and Russia, to which the Italian stock market was added after the Italian-Turkish War.
Of course, the current depreciation is not too severe, at least compared to the wartime period in history.
In the event of a war, the depreciation of these companies will be even more severe, and this is also an opportunity for Arthur and the royal consortium and even the world to buy the bottom.
A large number of industries in the defeated countries after the war will face bankruptcy at that time, and it will be dozens of times cheaper than the current acquisition.
At the same time, the royal consortium is also selling off a number of assets in Europe in large quantities, including shares in factories and businesses in which some of the royal consortium has invested.
If you don't sell now, you won't have a chance to sell again, and now until the end of the war, these companies will basically be in a state of depreciation, except for those more important military factories.
But the problem is that the military factories are also important to the great powers, and the royal consortium is not yet capable of interfering with the important military factories of the major powers.
What's more, the arms factories of the defeated countries will also be liquidated after the end of the war, and it is not too late to buy and pack some Krupp arms factory technology at that time.
The only thing that is not easy to divest is the United Automobile Plant, which was built with British and German forces.
Car factories in both the UK and Germany are already huge, with tens of thousands of workers, and it is impossible to easily divest from them.
But the good news is that Australasia currently has good relations with Germany and the United Kingdom, and for Arthur's sake, whether it is a British or German car factory, it should not be covered by artillery fire.
Of course, the occupation should be unavoidable, but presumably Australasia will be able to regain its own interests after the war.
It is worth mentioning that during the Second Moroccan Crisis, the rubber crisis, which was supposed to break out in 1910, was finally delayed.
The reason for the delay in the outbreak is that Benz Motors has ushered in a more glorious era for the rubber industry, and the development of rubber in this world is far more exaggerated than in parallel world history.
How exaggerated is that? Even in the months between the end of 1910 and the beginning of 1911, there were as many as 200 rubber companies registered in East Asia.
But the problem is that the quality of these companies is uneven, some are indeed serious rubber production enterprises, but some just buy a vacant land in Southeast Asia, and then they are ashamed to register rubber companies.
The purpose of their rubber company registration is to list the shares of their rubber companies on the East Asian stock market and make a lot of profits for themselves by selling the shares.
You know, because the car was popular in the world in advance, the development of the rubber industry was very rapid.
This is because the development of automobiles is inseparable from tires, which are generally made of rubber.
As a result, there are now many tire factories in various countries, after all, even if they can't catch up with the Benz Automobile Plant in terms of automotive technology, they can produce tires and make a lot of profits as a tire supplier for automobile factories.
Take Australasia as an example, the Australasian royal consortium owns several rubber companies, and there are more than a dozen private tire factories.
Although the Sydney Stock Exchange in Australasia has only been established for less than a few months, Australasia's more developed economy and culture have also attracted many European companies to register rubber companies here.
However, Arthur attaches great importance to the Sydney Stock Exchange, and companies listed on the Sydney Stock Exchange also need to undergo a certain amount of review.
At least companies that want to register rubber companies just enough to buy a plot of land will not be able to list on the Sydney Stock Exchange.
But stock exchanges in East Asia are different. East Asia's stock exchange is in the hands of a rotten state. This is also doomed to the fact that the management of this stock exchange is very backward, and the power to supervise and manage foreign enterprises is insufficient.
In the absence of a unified and mature financial management system, East Asian stock exchanges have become the main targets for foreign capital and companies to make a lot of money.
The international price of rubber has also risen from 2 shillings per pound of rubber since the birth of the automobile to an exaggerated 17 shillings per pound of rubber.
This has also led to the rise of the stock of almost every rubber company, and the stock price of a newly registered rubber company can quickly increase several times in a short period of time, and even eventually increase dozens of times.
The rubber companies of the royal consortium have indeed made a lot of money because of this, and even even the securities companies of the royal consortium have only helped a few companies to list rubber stocks as agents, which is enough to make hundreds of thousands of Australian dollars.
Arthur even secretly supported the establishment of many rubber companies in Southeast Asia, and then listed in East Asia to make a lot of profits.
The real reason why Arthur learned that the rubber crisis was coming was because of the news from the German side, Germany had successfully developed the technology of synthetic rubber, and the German side hoped that the synthetic rubber factory could establish a cooperative relationship with the Benz Automobile Factory, and even become one of the designated tire suppliers of the automobile factory.
Historically, it was precisely because of the technology of synthetic rubber, coupled with the fact that the development of rubber had indeed reached its peak, that led to the outbreak of the rubber crisis in 1910.
After learning that Germany had successfully developed synthetic rubber technology, Arthur did not hesitate at all, and directly ordered the Kent butler to order the royal consortium to sell all the shares of the rubber company in his hands as quickly as possible, and the Sydney Stock Exchange temporarily suspended the listing of the shares of the rubber company.
After the outbreak of the rubber crisis, not only did the price of rubber fall several times in a short period of time, but the stock price of rubber companies also fell directly to the limit in a short period of time.
If you continue to hold the shares of rubber companies, you will lose more than you made in the rubber crisis in the future.
However, in order to smoothly sell the shares of the rubber company in his hands, Arthur still cheekily asked the German side in his private name to ask the German side to temporarily postpone the announcement of synthetic rubber technology.
As compensation to the German side, Arthur patted his chest directly and agreed to the German synthetic rubber factory to become one of the tire suppliers of the automobile factory.
Anyway, the German rubber factories are also German car factories, and it is nothing more than a tire factory, and the Germans can just worry about it.
In mid-April 1911, the royal consortium finally completed the sale of all the rubber company shares.
A few days later, on April 20, the German side announced in a high-profile manner that Germany had successfully developed a commercially available synthetic rubber technology and would build a synthetic rubber factory to replace the original rubber company.
With Wilhelm II happily announcing the news, the shares of rubber companies on the German side fell on the same day.
Of course, this is just the beginning of the rubber crisis.
Subsequently, Germany, the United Kingdom, Australasia, the United States and other important rubber importing countries have announced that this year's (1911) rubber imports are temporarily maintained at last year's level, which also represents the development of the world's rubber has reached saturation, and the golden era of rubber in the past few years has ended.
This news is more fatal for the current rubber market, because the joint announcement of several major rubber importing countries represents that the development of rubber has reached its peak, and the demand for rubber has become saturated.
In the future, companies and enterprises that enter the rubber market will not only fail to make money, but may even threaten the current rubber market.
What's more, soon, the world's largest car brand, the German branch of the Benz Automobile Factory, announced that it would reach a cooperation with the soon-to-be-established synthetic rubber factory in Germany to replace natural rubber tires with synthetic rubber tires.
You know, the rubber boom can develop to such a huge scale, and the role of automobiles is not insignificant.
And the four Benz car factories in Germany, the United States, the United Kingdom and Australasia can be said to be the four largest car factories in the world.
This means that the rubber market will not expand again, but will shrink rapidly in a very short period of time.
These news were devastating blows to the rubber market, and also caused rubber stocks in various stock markets to plummet rapidly.
By the end of April, the price of rubber had fallen sharply from 17 shillings per pound to 11 shillings per pound, a price reduction of more than a third in less than ten days.
Of course, more serious are rubber stocks. By the end of April, the price of rubber stocks on the London stock market had generally fallen to one-tenth of what it was a dozen days ago, and the price reduction was even getting faster and faster.
In the past, the stock of rubber companies was as high as tens of pounds per share, but now the stock of most rubber companies is less than ten pounds per share, and even generally reduced to about two or three pounds.
Of course, a heavily regulated securities exchange like London is fine.
In the East Asian stock exchange market, the plunge was even more severe.
Because there is not much regulation, the number of stock companies in the East Asian stock exchange market is very large, and there are a large number of shell companies.
When the stock gold was listed, there were a lot of people who bought shares of stock companies, but now people are dumbfounded.
Stocks that were worth thousands of dollars may not even be able to eat a meal now. What's more, they want to sell their shares in the stock market and no one takes over, which also leads them to sit back and watch their stocks continue to plummet.
In just over a month, the price of a single stock plummeted from a few dozen pounds to ten pounds, a few pounds, and finally to less than a pound.
Such a price is not even up to the issue price of the stock, which is enough to prove how drastic the impact of the rubber crisis has been on the rubber industry and rubber companies.
According to Arthur's speculation, especially in Southeast Asia, there are at least thousands of rubber companies that have gone bankrupt as a result of the rubber crisis, and the total amount of money lost is even greater.
The few rubber companies that were able to get the news early had already cashed out at the highest price of their shares and quietly walked away with the large amount of pounds they had earned during this period.
And those ordinary shareholders who don't know the news at all can only react when the crisis comes, and it is too late at this time, and the stock market is full of people who want to sell their stocks, and who will buy them?
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(End of chapter)