Chapter 294: Bargaining Rubber Companies
The good news is that not many other industries are involved in this rubber crisis, and the crisis is almost limited to the rubber industry.
Coupled with the strict supervision of the securities market in other European countries, corresponding policies were immediately introduced to manage the rubber stock market after the collapse. This resulted in the stock markets and economies of most regions, including Australasia, suffering. The fluctuations were not too large, and a large-scale economic crisis was avoided around the world.
In order to prevent the impact on the Sydney Stock Exchange from being too great, Arthur had the royal family consortium announce a high-profile acquisition of all rubber company stocks on the market when the price of rubber stocks plummeted to less than half of the issue price.
This move saved the economy of some Australasian rubber companies and also allowed some investors to sell their shares.
This action will not be too bad for Arthur. After all, the rubber company's stock has already fallen to its lowest price, and it will not fall any further.
Anyway, Arthur's royal consortium made a lot of money from this rubber event, so it is appropriate to spend a little bit of it to save the rubber market in Australasia.
As for the rubber market and rubber companies in other parts of the world, Arthur can only express his powerlessness.
Anyway, the rubber industry is facing such a huge crisis, which is largely caused by the greed of these small capitals.
In this rubber crisis, Arthur actually didn't make much. Although he knew that shorting the rubber company's stock could allow the royal consortium to earn a lot of profits, Arthur was not interested in such ill-gotten gains. After all, for a monarch, reputation is more important than money.
But there is a nation that went short in this rubber crisis and gathered a lot of funds.
This nation is the famous Jewish nation in history, but this has also led to a rise in hatred of the Jews among many people in Europe.
Anti-Semitic actions even broke out in some areas, making the lives of some lower-class Jews even more difficult.
This can be regarded as the Jews asking for trouble. After all, it is okay to be greedy, but it is not okay to be too greedy.
Facing such an extremely greedy nation, who would have a favorable impression of it?
Historically, after the end of World War I, the defeated Germans faced the phenomenon of 500,000 marks of bread, and the actions of the Jews were indispensable behind the scenes.
This also led in disguise to the massacre of the Jews after the Third Reich came to power. After all, in the hearts of all Germans at that time, the hatred for the Jews was engraved in their bones.
In early May 1911, Steward Kent came to Arthur with a happy face to report on the results achieved by the royal consortium during the rubber crisis.
Since its establishment, the royal consortium has invested nearly 2 million Australian dollars, established and invested in more than 40 rubber companies and more than 200 rubber production parks.
The Sydney Stock Exchange had not yet been listed on the Sydney Stock Exchange at that time, and Arthur was well aware of the losses caused by the rubber crisis to the stock exchange and the national economy. Therefore, the rubber companies established and invested by the royal consortium were generally listed in other foreign regions, including Including New York, London, etc.
"Your Majesty, our income during the stock sale period exceeded 13 million Australian dollars, and the income from cashing out stocks at high prices was as high as 31 million Australian dollars. After deducting a series of expenses during this period, our total profit should be as high as 35 million Australian dollars." Kent Butler smiled. Report to Arthur happily.
The royal family's annual profits are more than 35 million Australian dollars, which is why Butler Kent was not too moved when reporting.
But after all, this funding was obtained for free, which is enough to make people happy.
"How much did it cost us to recover stocks after this stock market disaster?" Arthur asked with interest.
The royal consortium's high-profile recycling of all rubber stocks on the market has made many Australasian stockholders grateful.
After all, if it hadn't been for the acquisition by the royal family consortium, I'm afraid the stock price would have been reduced by more than half, and by then it would really be worse than waste paper.
"There are not many rubber companies listed in Sydney. So far, we have acquired all the shares of most of the rubber companies listed in Sydney. This has cost us a total of 590,000 Australian dollars." Kent Steward continued.
Although there are only a dozen rubber companies listed in Sydney, if you want to acquire these companies before the rubber crisis breaks out, you will have to spend at least more than 10 million Australian dollars.
But now, a simple A$590,000, perhaps a fraction of the previous price, can buy all the shares listed in these companies.
Moreover, the rubber companies listed in Sydney generally have relatively good qualifications. These rubber companies are fully able to continue production after the rubber crisis.
Because according to Arthur's knowledge, even in later generations, synthetic rubber has not been able to fully replace natural rubber.
This also means that although these natural rubber plantations and rubber companies are currently suffering from a crisis, their overall value and role are still considerable.
In fact, the real reason for this rubber crisis is that in addition to the saturation of synthetic rubber and rubber production, the rubber market is relatively chaotic. There are a large number of empty shell companies in Southeast Asia, the main rubber production area.
After this rubber crisis eliminates most rubber companies and those empty-shell rubber companies, the rubber market will return to stability in a few years. After discussing with Steward Kent for a long time, Arthur decided to start a large-scale acquisition of stocks in Southeast Asian rubber companies and rubber estates after some rubber estates and company stocks in Southeast Asia reached their lowest point.
This is almost the best time to buy, and you can even buy hundreds of rubber companies with just a few million Australian dollars.
More importantly, Southeast Asia is very close to Australasia, and Australasia still has influence in this area.
After acquiring these rubber companies and estates, Arthur also has the ability to fully control them, thereby affecting rubber prices in Southeast Asia and the entire world.
With Arthur's approval, the royal consortium is expected to invest at least 8 million Australian dollars to acquire rubber companies and estates in Southeast Asia.
As for rubber companies in other regions, they are not considered by the royal consortium for the time being. After all, Australasia's hands cannot be stretched that far for the time being, and the benefits of the rubber market are not something that Arthur can capture alone.
Of course, after acquiring the stocks of these rubber companies, delisting must still be done.
It is definitely impossible to make money from the stocks of these rubber companies. At least within ten years, the rubber market will never return to its pre-crisis state.
For the stock market at this time, selling the stocks in hand is the dream of all investors.
Therefore, when the royal consortium aggressively acquired rubber stocks, a large number of investors began to sell their stocks. This also allowed the royal consortium to acquire stocks in many rubber markets in Southeast Asia in a short period of time, totaling more than 100 rubber companies and 200 rubber estates.
The acquisition lasted for more than half a month, and the royal consortium also increased the number of rubber companies it acquired to more than 500, and the number of rubber estates reached more than 1,000.
At the same time, other rubber companies on the market were also acquired, and a vigorous rubber crisis ended.
The royal consortium currently owns more than 500 rubber companies and more than 1,000 rubber estates. These rubber companies combined are not a small business.
After careful consideration, Arthur decided to unite all the rubber companies in Southeast Asia to establish the Australian Rubber Company and operate it independently.
After all, the current scale of the royal consortium is already very large. Even if Arthur can control it now, it may not be able to be controlled by the next monarch or every subsequent monarch in the future.
It is better to prepare in advance for the split of the royal consortium, split the royal consortium into giants in various industries, and the royal family can be the controller behind the scenes.
Isn't it better to be able to get a large amount of dividends every year without showing up, than to work so hard to control a group and still be remembered?
As time enters May, several more important news are ushered in around the world.
The first is that the Qing Dynasty in the East officially began to implement the responsible cabinet system. But Arthur is not too optimistic about such changes, because after all, those who can enter the cabinet are still royal nobles, and ordinary people basically have no qualifications to get involved.
In addition to establishing a responsible cabinet, the Qing also nationalized the country's railways, which also stoked domestic anger.
In Europe, the Italian-Turkish war was also becoming more and more intense.
On May 1, more than 20,000 Italian troops landed in Tripoli, officially starting the first battle of the Italian-Turkish War.
Compared with the Turkish garrison, the Italian army has obvious advantages in terms of equipment and numbers.
Italy, one of the great powers, also used its fleet to blockade the coast of Tripoli, and even dispatched military airships and aircraft to participate in this war.
As in history, this is the first time in the history of human warfare that aircraft have been used in war.
However, due to the previous influence of Australasia, the progress of aircraft research and development in European countries is generally not fast. The military aircraft dispatched by Italy are even further behind than those they dispatched in history.
However, the development of Italian airships has made some progress, and this time more airships than aircraft were dispatched to participate in the battle.
The superiority from the air made the Turkish army miserable, and the British directly prohibited Turkish reinforcements from passing through Egypt, leaving the Turkish army in Tripoli without any reinforcements and directly trapped in a lonely place.
This act of the British helping the Italians made the Turkish government and people very angry. But at the same time, the contradiction between Turkey and Italy also deepened sharply, which is why the Turkish people still did not choose to join the Allies after being hostile to the British.
Arthur shook his head while looking at the war reports coming from Europe. He wondered if the historical incident that directly led Turkey to join the Allies would happen again in this world?
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(End of chapter)