Chapter 832 Economic Crisis of 1847 (Part 2)

Chapter 832 Economic Crisis of 1847 (Part 2)

Historically, the U.S.-Mexico War was started by Polk, but it was obviously unrealistic to use troops against Mexico at this time.

Expanding the border to the north is also unwise, but that is another matter if it can be resolved through negotiation.

If land could be gained for the United States at the expense of some people's interests, Polk was more than willing to do so.

As a result, the British and American senior officials hit it off immediately, 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 United States' sphere of influence.

The factory owners in the north were wailing, while the plantation owners in the south were already buying up. But people in this world who betray their own class interests usually don't end well, and Polk is no exception.

Mr. President was ambushed by gunmen on a small road. Mr. Polk, who was strong and strong, pulled out his pistol and fought back. During the pursuit, he was hit in the back of the head by a bullet from an unknown source and fell to the ground.

Vice President Dallas took office temporarily. As a well-known trade protectionist, he abolished the trade agreement signed by Polk and the British as soon as he came to power.

But when it came to changing their faces, the British did not give in. 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 then abrogated, became the famous "two pieces of waste paper" in the mouth of later historians.

In addition to external affairs, the British also have internal measures, which are to limit the decline in grain prices and ensure the interests of grain merchants through official pricing.

Food is not something you can wait to buy like other commodities. People need 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 has been extremely cold, and all walks of life have been affected. The number of factories closing down in one month is equivalent to that in the past year.

At this time, the British government's bailout policy also included using government debt to purchase large amounts of grain to ensure the rapid return of grain merchants' funds.

As for the debt owed by the government, it is naturally left to the wisdom of future generations. If all the money is used to bail out the market, then the Spanish Civil War will naturally not be fought.

However, their opponents, the French, were not much better. French Jewish bankers lent money to the British government in order to earn high profits.

As a result, France, which should have benefited, also fell into financial difficulties. The elite soldiers and generals of the Foreign Legion could not work without military pay, and even helped.

Because soldiers of the French Foreign Legion were owed military pay, they began to slack off in the war and even carried out gang robberies, which turned the Spanish Orthodox rear upside down.

Although the Spaniards no longer have the generosity of their ancestors, they have the pride of never bowing down. The Spanish people began to spontaneously organize guerrillas to fight against the French Foreign Legion.

Not to mention the French army without military pay at this time, even the undefeated division led by Napoleon could not conquer Spain.

Soon the Foreign Legion was on the verge of collapse due to the inability to pay troops and excessive casualties. At this time, Louis Philippe had to withdraw the army to prevent the situation from deteriorating further.

Successive years of poor harvests have caused French agriculture to collapse, and prices for almost all crops have increased fivefold.

In fact, the French did not make no efforts. They bought a large amount of grain from Russia in the hope of alleviating the domestic food crisis.

But the reality is that the German region next door is flooded, while they themselves are plunged into drought.

Due to drought, the water level of the Rhone River dropped, making the river impassable for large ships, and the French railway had not yet been completed. The grain purchased from Russia could only stay in Marseille.

Note: Marseille is a port in southern France with convenient water transportation.

In fact, this railway was contracted by Franz's leather company. He only purchased the construction rights through bribery and other means but did not start construction.

This was not all because Franz wanted to take advantage of the French. In fact, Franz felt that he was completely overly worried.

Because most of the railway lines in France have not started construction, Franz did not start construction either in order to be less unconventional.

In addition to the collapse of agriculture in France, the industry is not doing much better. The great development in the past few years has caused factory owners to increase investment.

But Louis Philippe and Guizot jointly ignited the war in the colonies. Heavy taxes greatly reduced the purchasing power of the colonies and even caused widespread uprisings.

Texas, once a model colony, had become the least secure area among the French colonies, and violent tax resistance was common.

In order to suppress the uprising in the colonies, the French invested much more than they gained in taxes.

The most critical thing is that almost all of France's colonies are in rebellion, and there is a strong rebel force in each place, so France has to devote all its energy to fighting.

The previous boom in textiles also benefited from trade with the East, but in order to solve their own economic crisis, the British decided to monopolize India and the Far East.

The British began to squeeze out French businessmen. The gap in Eastern influence between the two sides was too large, and the French were defeated without any suspense.

At the same time, because Franz opened up the Japanese trade route, a large amount of cheap Japanese raw silk began to pour into the European market, which was another fatal blow to France.

At this time, only Lyon in France and the Venetian region of Austria produced raw silk on the European continent, so France could make huge profits every year.

Due to all the above, the profits of France's textile industry have plummeted, and due to excessive investment in the past, which has led to overproduction, coupled with the reduction in sales, factories have to resort to large-scale layoffs and shutdowns to protect themselves.

The result is that a large number of workers are unemployed and unemployed, giving rise to a large number of beggars and jobless vagrants.

France's coal and iron industry has also begun to shrink. Because of the previous wave of railway construction, investors have poured into the steel and coal industries hoping to get a share of the pie.

However, the imagined wave of railway construction did not appear. Many projects have not been launched yet. There is no market for steel, and the demand for coal is naturally not that strong.

Eventually, the entire business community collectively looked down on the steel and coal industries. In 1847, France's pig iron production fell by 21.8%, wrought iron production fell by 27.7%, and coal production fell by 22.4%.

The most exaggerated thing is steel production, which was almost cut in half in one year.

Louis Philippe's series of operations, such as lending money to the Russians (to purchase Alaska), transporting souvenirs from Egypt, etc., coupled with France's own natural and man-made disasters, and the intensification of colonial conflicts.

At this time, the Orleans Dynasty's deficit rate was as high as 45%, up to 630 million francs. Historically, the deficit rate of the Orleans Dynasty has remained above 25% all year round. However, in the book, France is more radical and richer, so the deficit rate is higher.

In fact, before 1843, the Bank of France still had reserves of up to one billion francs. That was the peak of the French, but with the expansion of the ruling class of Louis Philippe and the Orleans Dynasty.

A large number of wars and construction caused gold to disappear like running water. At this time, there were only less than 30 million francs in gold reserves in the French treasury.

But at the very moment when Louis Philippe needed his bankers most, French financiers chose England.

My family member is hospitalized and I am here to take care of him.