Chapter 415 Dividends
Austria Vienna.
The whole city is like a huge market, and the streets and alleys are crowded with people. Lively and prosperous are not enough to describe the scene at this time, but on the other hand, the Austrians' heavy use of anticipatory banknotes made surrounding countries feel uneasy.
Especially Saxony and Prussia, since Austria joined the German Customs Union, their trade with them has been at a disadvantage, the deficit has been increasing, and precious metals have continued to flow out.
Coupled with the fact that Austrians were using large amounts of anticipatory banknotes for payments at this time, they were afraid of what would happen if the system collapsed.
"The Austrian Empire intends to pass on the economic crisis to Germany and the Apennines."
This view caused an uproar as soon as it was proposed, and it was the new Prussian Finance Minister Friedrich List who proposed this view.
As a result, neighboring countries have sent ambassadors to seek explanations from Austria. It would be best if the expected banknotes in their hands could be exchanged for real gold and silver.
Because Austria has indeed made a lot of money from the German and Apennine countries over the years, otherwise these countries would not agree to accept such things as expected banknotes.
But now the Austrian Empire is openly giving money to the people. God knows what kind of chain reaction there will be. In addition, Austria has recently issued large orders to various countries, which has aggravated the uneasiness of surrounding countries.
The exception is Russia. First, they received the news relatively late, and second, their financial system is at a very low level.
Vienna, Lion's Pride Hotel.
Solomon Rothschild said it with certainty.
"Now that the German states and the Apennine states have forced their way to Vienna, the expected banknotes in your hands will become waste paper if they are not exchanged."
"Then what should we do? The Austrian bank won't exchange money for us." said an old man in luxurious clothes.
"Yes, the price on the black market has dropped to 80% now, and it is still falling. Your Majesty Solomon, please save us." A young gentleman said.
In fact, because expected banknotes actually had purchasing power, the price on the black market was almost the same as normal minted coins.
But some recent bad news has upset this balance, and the price of banknotes is expected to plummet.
"You should go shopping! Place a massive order"
After Solomon finished speaking, everyone present looked at each other and asked them to hoard goods again. This scene was familiar to everyone, but the result last time was not good at all.
"Mr. Solomon, what's the use of buying so many things? No matter what happens, we only have one mouth and one pair of hands..." the old man said first.
"Yes, there are too many goods, and we can't even pay the warehousing fees."
Solomon cleared his throat and continued.
"You have to think carefully. If you continue to sell the expected money now, the price will continue to plummet. Who can afford the combined expected money in your hands? At least you won't lose so much if you buy something, and if you want to buy it, buy some necessary items. Goods, such as grain and coal, can be used sooner or later."
After the party, everyone left thoughtfully.
Some of them planned to follow Solomon's advice and immediately buy some commodities such as grain, wood, and coal.
Some people plan to find ways to convert their expected banknotes into gold and silver and leave the country to avoid the upcoming crisis. Of course, some people plan to wait for the crisis to break out and take advantage of the low land prices.
Solomon returned to the room alone and let out a disdainful laugh.
Because his goal has been achieved, no matter what these people do, they will aggravate the crisis.
As expected, the price of expected banknotes on the black market fell below 50% within a few days, and it continues to decline.
All prices are rising, especially daily necessities, which are in short supply.
Vienna, temporary headquarters of the German Customs Union.
"We demand that the Austrian Empire immediately exchange the expected banknotes in our hands. Otherwise, we will stop the supply of goods to Austria." Friedrich List stood up and said.
"right!"
"support!"
"Agree!"
They are obviously a group of high-ranking officials, but they give people the impression of a quarreling shrew in a market.
Baron Brooke tapped his fingers on the table. He felt very awkward sitting in the swivel chair, so his expression was more serious than usual.
These swivel chairs are new products from Austria, which can make people sit more comfortable and convenient. But for some more rigid people, this feeling of laziness is their enemy.
This kind of moving chair makes them feel uncomfortable all over, and Baron Brooke happens to be such a person.
"Are you all finished?"
As soon as Baron Brooke spoke, the entire venue fell silent.
On the one hand, this is the growing reputation of the Austrian Empire among the German states at this time, and on the other hand, it is also the reputation and majesty of Baron Brooke himself.
"I said listen, as long as the expected exchange period is reached, banknotes with a face value of less than 100 florins can be exchanged in full, banknotes with a face value of more than a hundred florins and less than a thousand florins can be exchanged in half, and banknotes with a face value of more than a thousand florins can be exchanged in half. We only pay interest on the amount below ten thousand florins.”
"Baron Brooke, you can't do this"
Before he could finish his words, he was interrupted by Baron Brooke.
"This has nothing to do with me. Rules are rules. As long as you follow the rules, we will be allies. If anyone wants to break the rules or make a new one, you can give it a try."
All the German states shut their mouths. To be honest, the Austrian Empire at this time was something they could not afford to offend. Whether it is economic or military means, few countries can resist sanctions.
At this time, it is no longer possible to invite this great god out of the Customs Union, because even the headquarters of the alliance has been moved to Vienna.
Seeing that all the envoys from the participating countries had shut their mouths, Baron Brooke sighed helplessly.
"It was just a joke. You can use the expected banknotes to exchange gold with our Austrian Empire. This year we will exchange 300 million florins. The proportion that each country can exchange is based on your trade with our Austrian Empire. calculate."
In fact, Baron Brooke did not want to do this, but since his trip to North America, he has habitually given people a showdown at the beginning.
And his reputation and Austria's strength at this time made ordinary countries dare not bargain with him. As for Prussia's Friedrich List, he was a man who wisely protected himself and did not want to be the leader.
In fact, this time Austria suddenly let out blood, not just California's gold. There is another more important reason, which is to balance the trade surplus with surrounding countries.
Due to the appearance of Franz, Austria has become an even weirder existence than in history. This country has Europe's top entertainment industry, coupled with Franz's hard work, the industry is ahead of its time.
At the same time, this country is also an agricultural power in Central Europe, which means that it is not only self-sufficient, but also sucks blood from surrounding countries.