Chapter 900:
Chapter 882 Conspiracy
The turmoil on the stock market soon spread to the whole society.
Before the curtain was pulled back, the capitalists had artificially created a hot market in order to transfer their losses, but now there was no need for that.
After the windowpane was broken, companies laid off workers and cut production. The economic crisis has not yet begun, and the wave of unemployment has already come first.
The news that had been covered up now didn’t need to be hidden. It was only at this time that it dawned on everyone that the so-called good news was a complete fabrication.
The so-called purchase orders did exist, only that the contracts were signed not by the Russian government or the British government, but by newly-established companies.
Since it is a company, it naturally does not represent the position of the government. The so-called commissioned purchases are even more bogus.
Frankly speaking, this game is not clever. Maybe in other countries, there may be a government commissioned procurement, but in the Russian Empire it can never exist.
How could the Tsarist government outsource such hard work when it had the most exasperated team of bureaucrats?
The Procurement Department, which was claimed to be the cleanest in the Russian Empire, could never tolerate this kind of middleman making a difference in price and wasting national wealth.
To be able to unite a large number of capitalists to act together, to control mainstream public opinion, and to artificially create a market boom before the onset of the crisis are all proof of the strength of the French consortium’s power.
Fidoron Machinery Works, as a latecomer to the French manufacturing industry, was founded in 1867 and has now become a leading company in French machinery and equipment.
Industrial technology is the need for time precipitation, can in just twenty years, from the many competitors stand out, the founder of Baron Fidoron is a great credit.
Sir Fidoron, who should have been successful, is now holding a cigar and swallowing clouds.
The secretary reported in a low voice, ”Your Excellency the Baron, the latest statistics show that eighteen companies, including the Said Textile Factory, the Eidolon Cannery, and the Allenburg Spinning Factory, have requested to return their products.
The total price of these returned products is around 30 million francs, of which there is still a final payment of around 6.57 million francs that we have not received so far.
Twenty-seven other enterprises that have not delivered their machinery and equipment have simply declared their orders to be in default and will not make any subsequent payments.
We arranged for the production of these machinery and equipment as early as last year, and it is now too late to stop work.
If we can’t find a new buyer, the preliminary estimate of our losses this time will be as high as 54 million francs, with the forfeited defaults offsetting about 14 million francs, and the final loss will be in the neighborhood of 40 million francs.”
Things come in small packages, and as an aristocratic capitalist, Fidoren had a very general relationship with the domestic capitalist community.
This time the consortium planned the retreat, Baron Fidoren was excluded and became one of the victims.
The machinery and equipment manufacturing that Fidoran Machinery Factory was engaged in belonged to the upstream industry, and its main market was in the domestic market, with almost no international orders.
The aged Baron Fittorun, whose sensitivity to changes in the international market was obviously insufficient, had not anticipated in advance that there would be overcapacity during the Anglo-Russian War.
A momentary lapse in judgment, it brewed the bitter fruits of the present. The enterprise took a bunch of orders, and as a result, without waiting for the delivery to be completed, it received a notice of default.
After pausing for a moment’s effort, Baron Fidorian said fiercely, “Tell them that returning the goods is impossible.
As long as there is no problem with the quality of the product, we don’t have a return service. And tell them to hurry up and pay the subsequent final payment.
For the subsequent defaulted orders, pursue them for their breach of contract according to the contract.
Order to go down to suspend the production of all the orders, send people to contact the remaining customers to make sure that the orders can be delivered smoothly, and then continue to organize the production.
Determine the defaulted orders that can be transferred to other orders, immediately deployed. If you really can’t, just dismantle the parts and use them!
Now at this juncture, there is no way to find a buyer, we must stop the loss in time.”
Mechanical equipment is different from other products, once it has been produced, it will also incur maintenance costs. The longer the backlog in the hands of the enterprise to pay the higher the cost.
From the current situation, Baron Fidoron does not think that in a short time, the market has the possibility of rebound.
Before the problem occurs, it may be ignored by the favorable market; the problem has erupted, Baron Fidoron naturally perceived the deeper reasons.
The Anglo-Russian war material consumption was less than expected, just the focus of the detonation of the contradiction. Essentially it is still the cycle of capitalist economic development has arrived.
According to past experience, overcapacity will not just be a problem in France, the entire capitalist world can hardly be left alone.
These days, there are only a few countries that are eligible for an economic crisis. France’s industrial production costs are higher than those of Britain and Austria, and it is naturally at a disadvantage in international competition.
Now encountered a crisis, the first can not hold out naturally is the French enterprises. The French consortium, which was determined to make war money, became the earliest victim.
Only these guys, the reaction is very fast. Before the outbreak of the crisis, began to transfer the risk, so that the shareholders topped the mine.
Detonate the crisis so quickly, not the consortium has eaten enough, mainly because the market is almost out of money.
In the era of the gold standard, subject to the limitations of gold reserves, the issue of francs is limited, and there is even less money circulating in the market.
Cutting leeks also need leeks to grow out of the line, the previous favorable has lulled the retail investors in. Did not escape, in fact, has been unable to get out.
Now we are speculation into the shareholders, and then do not harvest, once the news leaked that can not be harvested.
Judging from past experience, Baron Fidorian can conclude that, in the absence of accidents, this crisis will last one to two years.
When the crisis ends and the market begins to warm up, it will take even longer.
In this era of rapid change, no one knows when it is time for mechanical equipment to be updated again.
Keeping a bunch of machinery and equipment in hand is simply tired of living. Not only do you risk losing your money, but it also depletes your organization’s valuable cash flow.
Equivalent to the demolition of semi-finished equipment, business losses may be as high as five or six percent of the cost of production, continue to produce it is possible to lose the cost of production a little several times.
The secretary reminded: “Baron Sir, previously we signed a contract, there has been the use of unsatisfactory, return part of the payment agreement.
If ……”
Baron Fidoren impatiently interrupted, “Don’t care so much, if they are not satisfied they can go to court.
At this point in time, are we still afraid of a lawsuit?”
All of a sudden there were tens of millions of francs of losses, and the Fidoren machine shop, which was running well, was taken directly to the ditch.
The bank’s calls for collection had been so great that Baron Fidoren was on the verge of collapse. The phone on the table with the telephone line unplugged is the truest picture.
“Knock, knock, knock” knocked on the door, Baron Fidoran coldly said: “Come in!”
A middle-aged man whispered, “Your Excellency, the Bank of Paris has come and is resting in the parlor.”
As soon as the words fell, two middle-aged men in suits walked in.
The first one said, “I’m sorry, Baron Fidorian. We took the liberty of visiting this time, mainly for ……”
Baron Fidoren directly interrupted, “I know what you are here for, but there is still a month before the bank loan expires.
If there are any problems, we can talk about them then, or contact the PR department, please don’t disturb my work now.
Thanks!
Fick, take the two gentlemen to rest.”
Hearing Baron Fidorian’s words, Fick’s middle-aged man immediately made a look of invitation and said, “Both of you, please follow me.”
A middle-aged man at the head of the group was unmoved and said, “Baron Fidorian, you’ve misunderstood. We came today to solve your problem for you, not to collect the loan in advance.
If it is convenient, please give us half an hour. The conversation that follows needs to be kept confidential, and it’s best for us to communicate alone.”
Baron Fidorian froze ……
(End of chapter)