Chapter 639: Capital Operations
Chapter 625 Capital Operations
Paris, inside a luxury club that was not open to the public, several oligarchs of the French financial sector gathered together.
A kindly old man asked with a smile, “I heard that little guy Nino is in trouble, how is it now, did he accomplish his mission?”
If it wasn’t a familiar person, no one would know that this kindly looking old man was the biggest vampire in the French financial sector.
The most scary thing was that no matter what the situation was, he had a smiling expression, including killing people.
“Alright, old Duke put away this face of yours, we are all old acquaintances, who doesn’t know who ah! Acting out day after day, you’re not too tired for us to watch.”
The one who spoke was Dumas, because of their interests, the two often clashed.
Conflict to conflict, but this does not affect the cooperation of everyone together to make money, in order to the Panama Canal project, and now everyone is sitting up again.
In order to avoid the escalation of the conflict, this party host Beiers decisively cut to the chase: “The two business is important, let’s talk about the canal project first!
The Suez Canal, as we all know, was originally thought to be a money-losing project, and the entire investment was recovered in less than seven years after it was opened to navigation.
Now every year can provide investors with a generous return, earnings also with the development of overseas trade and growth, if no accident, this return will continue for hundreds of years.
Of course, this is a special case. The Mediterranean Sea, with its special topography, is not everywhere, and it is almost impossible to replicate the success of the Suez Canal.
The Panama Canal is supposed to be the closest to the Suez Canal, and once it is open to navigation the distance between the east and west coasts of the Americas will be brought closer, and the gains can be imagined.”
Old Duke shook his head, “It’s not that simple, the Panama Canal is different from the Suez Canal, politically we don’t get support.
The Austrians don’t want to see the canal open, the British don’t want it open, and even the Paris government may not support the Panama Canal opening.
The reasons for this should be clear to you. The Mediterranean countries benefited the most from the opening of the Suez Canal, and France and Austria were both beneficiaries, and it was only for strategic reasons that the two countries pushed the project through British pressure.
What about the Panama Canal? The biggest beneficiaries were the United States of America, followed by the Republic of Colombia, and other American countries more or less.
But we and the British and Austrians gained so little that, apart from the canal itself, France gained almost nothing.
Austro-Central America is not a large enough area to build a railroad to meet transportation needs, there is no need for it, or they would have dug it themselves, and the Nicaragua area could have been equally well served by a canal.
British Canada, needless to say, the typical sparsely populated, simply not so many commodities need to be transported.
In the opinion of politicians, it would be better not to start such a project that cheapens others.
As for the benefits of the canal, I’m sorry to say I don’t see the Panama Canal catching up with the Suez Canal.
Looking at the economy of the Americas, perhaps not as many ships pass through each year as one of ours passes through the Suez Canal.
If the economies of the Americas develop later on, perhaps they will be able to make a profit, but if things go on as they are now, the project will lose almost one hundred percent.”
It’s true, there are hidden benefits behind the Panama Canal, but hidden benefits are not something governments can get their hands on.
Compared to the high investment, just collect navigation fees, the opening of the Panama Canal in this era is indeed a big loss, or the original time and space would have been delayed until the opening of the First World War.
Without the government’s participation, but also to face other countries stabbing knife, the Panama Canal can smoothly open the strange.
Beiers smiled slightly: “Panama Canal profit or not, can navigate, this is none of our business?
As long as the outside world thinks that this project has great potential, just like the current Suez Canal, it can make a lot of money and that’s enough.
My preliminary estimation is that this project, if operated, can leverage capital of one to two billion francs. If you add in the peripheral income, this figure will be even larger.
We just need to bite off a piece of meat from it and that’s enough, whether the canal project succeeds or fails, that’s for God to decide.”
The people have calculated up how much they can profit, no doubt this is a shocking scam, but this is also the most basic operation of capital, if you do not compile a beautiful dream, how can investors be willing to enter the pit?
For financial capital, never care about the success or failure of the project, as long as the operation can be listed, they can get a handsome return, long-term operation is never a problem they need to consider.
Old Duke nodded: “What you said makes sense, we are not God, how do we know whether the Panama Canal project can succeed?
What I think is still to take the canal development rights as soon as possible, and then operate the listing.
If possible, it’s best to bring in Anglo-Australian Capital to do it together. Only when we make the cake bigger can we get the most delicious portion.
Especially on the Austrian side, someone has to lobby the Vienna government, or at least delay them from stepping in.”
Bells: “That’s why I invited everyone here, there are too many relationships that need to be coordinated for a project of this magnitude, it’s necessary for everyone to work together in good faith in order to accomplish it.”
Obviously, it wasn’t as simple as it appeared, just a Panama Canal project wasn’t worth so many bigwigs in the French financial world joining forces.
As long as the bull is blown up, then it is not a canal project. It will also involve maritime transportation, processing and manufacturing, banking ……
Perhaps when this project is operational, it will be a new round of bull market; when the project is finished, it will be the time when the stock market crash breaks out.
……
There are still a lot of smart people, far away in New York Morgan, with their own financial markets on the sharp sense of smell, quickly found that something is not right.
The Panama Canal simply does not need the United States to participate in, even if it is involved, in addition to providing money, other than they can not do anything.
The United States of America is full of internal contradictions, the federal government is weak, there is no ability to mobilize the real strength of this country. In addition, there are also the Union State in the side of the tiger watching intently, they do not dare to move.
If they were to confront Austria, the federal government would be powerless to do anything other than protest. Without the government’s intervention, what can these consortiums do? Could they organize mercenaries to defend the Panama region?
Not Morgan underestimate themselves, the power of the consortium is indeed big, but that depends on what to do. If the organization of mercenaries and a great power head-on confrontation, it is estimated that they will die a very miserable death.
Not only the United States, even Spain is not much better. It seems that Spain in the Caribbean is not small, in fact, the colonies in this region has long been the Union’s prying eyes.
Did not take action, on the one hand is afraid of the strength of Britain, France and Austria, worried about the hostility of the European countries; on the other hand, it is with the United States of America mutual constraints, risking troops easily by the enemy to take advantage of the opportunity.
Even if the Panama Canal benefits again rich, the Spaniards are unlikely to offend Austria at this time, give themselves a big trouble.
Not to mention, the Philippines in the South Seas region is under the eyes of Austria. The Spaniards were able to keep this land, relying on the good diplomatic relations between the two sides, rather than the so-called military strength.
Since neither of the two opposite friends was strong, the French had to pull them in, and the problem became very obvious.
The truth was surmised, but it increased Morgan’s determination to cooperate with France. The money that was sent to the door, it was not worth not earning, as for who pitted who in the end, it would be up to the means of each.
To know the Morgan consortium can develop to this point now, is to rely on the pit of the British outbreak, the British can pit, pit the French naturally have no pressure.
……
Vienna Palace, looking at the hands of the intelligence, Franz hesitated, he did not know whether to cooperate with these consortium action.
Purely from the interests, he seems to have no reason to refuse. The benefits promised by the French were still very generous.
But doing it broke his bottom line again. Although the Imperial Consortium was also engaged in financial business, it had never played a shocking scam before.
After hesitation, Franz made a decision: “Tell the people below, can cooperate with the French, but the Panama Canal can not be listed in Austria, participate in that step they decide by themselves.”
There was no reason not to take the money that was delivered to the door, as long as the Panama Canal Company was not allowed to be listed in Austria, even if there were repercussions, the consequences would not be too serious.
If any investor ran off to Paris to buy stock, he deserved to be sheared.
The Austrian Securities Commission is still very strict, and this kind of enterprise without a single hair, unless it is endorsed by the government, it will not be able to pass the listing audit at all.
Franz does not think that the government of Vienna will endorse the Panama Canal, and the top government officials know very well that unless Austria changes its national policy, this project will not succeed at all.
The French attempted to pull the Austrian consortium into the field, the most critical thing is still to make Vienna not to sabotage, listing in Austria is not even thought of.
The reason is very simple, according to the Vienna government’s latest securities law: enterprises listed in Austria have strict performance requirements, unless it is a government-approved project, don’t enterprises must be more than three consecutive years of profits of more than 100,000 guilders.
The Panama Canal project, no matter how it is played out, before the canal is open to navigation, it is impossible for capitalists to come up with financial statements that are profitable for three consecutive years.
Of course, the benefits are not so easy to take. There must be additional conditions, and it is impossible to pick up money for nothing. What exactly needed to be done, which would require further negotiations to determine, was not Franz’s concern.
Payment and benefit are directly proportional, this plan is the French planning, they will naturally take the lead. The other participants would have to share the spoils according to the size of their contribution.
This is only a preliminary distribution of intentions, the final amount of revenue can be obtained, in fact, or according to their own means. Capital is bloodstained, competition is everywhere.
(End of chapter)