1855 United States Tycoon

Chapter 12

One day in March 1957, in the newly formed Clark Macdonald Rockefeller Company, the three founders of the company were holding a meeting.

The topic of this meeting is actually quite simple. At least, when the meeting was launched, Clark and Rockefeller both thought so. At this meeting, Clark relied on his previous experience to propose that in addition to grain spot trading, they could also go to Chicago’s grain futures market to buy some grain futures.

The shipment of wheat from United States to overseas relies heavily on water transportation in the Great Lakes basin. At that time, Chicago, located on the shore of Lake Michigan, was the most important food distribution center. Here, there is the world’s first futures market-Chicago Grain Futures Market.

Generally speaking, the price of futures will always be cheaper than the price of the spot, which makes it more profitable to buy grain from the futures market. Of course, farmers can also ensure that their own income is relatively stable through the futures market, so that they will not lose money due to planting the wrong crops, and they can also get money in advance, which is also a good choice.

In the view of Rockefeller and Clark, using a portion of the funds to buy futures grain is a very cost-effective approach, and it should be passed smoothly. However, as soon as this plan was proposed, it was opposed by Scrooge.

“I don’t approve of buying food futures like this.” Scrooge said to Rockefeller and Clark.

Rockefeller didn’t speak, Scrooge knew that he was waiting for his reason. Of course, Scrooge couldn’t tell him the truth. He couldn’t tell Rockefeller directly that I have traveled from later generations. I know that next year, the world’s first economic crisis that will sweep the world will happen, and this economic crisis is from Did the collapse of the food market begin? However, in his previous life, Scrooge has always heard such a saying that “crisis, crisis, is both a danger and an opportunity.” In the later United States, the foundations of the most influential consortia were basically laid down in several crises. Scrooge had already figured it out clearly, and the crisis that was about to begin could also provide him with an opportunity. First of all, the crisis will start in the grain market, because the United States’ grain planting area has expanded too fast, coupled with the bumper harvest brought by the good weather, and bumped into the unprecedented bumper harvest of Russian grain, leading to the supply of grain on the international market. Far exceeding demand, leading to a panic drop in food prices. Scrooge remembers that this year, the price of food fell below a quarter of the expected price, causing many businessmen to go bankrupt. However, for those who foresee this, this is an opportunity to make big money through short selling. Scrooge has been paying attention to this opportunity for a long time.

“John, do you know how much more wheat is cultivated near Cleveland this year than last year?” Since he had been eyeing this opportunity, Scrooge was of course already prepared to persuade his partner.

“I don’t know the specific figures.” Rockefeller said, “However, the company I used to work for also traded in grain, so I also understand the general situation. Affected by the strong grain prices in recent years, the cultivated area has expanded a lot this year. I guess it will be a quarter more than last year.”

“There are so many more in Cleveland, and the situation in the entire United States is probably similar.” Scrooge said, “It is even more terrifying in Europe… John, the international market last year, well, I’m talking about the wheat market in the London market. What are the prices? What are the prices of cotton and wool? You should know these.”

“I know.” Rockefeller nodded. He managed the accounts for a long time and knew all these things well.

“Then John, can you calculate if Europeans are more profitable to grow wheat, grow cotton or raise sheep if the price remains the same?”

This is not a question that can be answered by one mouthful. Rockefeller quickly took out his notebook and pencil and began to calculate. After a while, he replied: “If the land conditions in Europe are similar to those in the United States, then, at least on the more fertile part of the land, growing wheat will be more profitable than growing cotton and raising sheep… In fact, it is not only Europe, but also India. It will also be like this… Do you mean that the price of food might fall?”

“Yes, but I’m not sure yet.” Scrooge said, “So, John, we have to investigate the situation of wheat planting in United States first… Mr. Clark, we also need to understand the specific situation of wheat planting in Europe. You are English people, there should be some corresponding channels in Europe. It is up to you to understand the situation of wheat cultivation in Europe. Well, please pay special attention to the situation of wheat cultivation in France and Russia.” Scrooge said to Clark again.

“Well, leave this to me.” Clark replied, staring at Scrooge in amazement. When Rockefeller pulled Scrooge in, Clark didn’t put Scrooge in To put in one’s eyes—just a teenage boy, even if he was really a genius, where could he be so strong? Clark even thought that Rockefeller just couldn’t make enough money, and this little guy who looked like his little Little Brother was just rich and easy to control, so he was pulled in as a sheep by Rockefeller. It now seems that if the words just now were really thought up by this little guy, then he is really a genius. Although his share in the company is not as much as his own-in these two months, he got another 500 US dollars, which makes him still the largest shareholder in the company. But is there such a guy, can he really hold the control of the company firmly in his hands as he expected?

“This is probably what Rockefeller taught him.” Clark thought this way, and he felt that this was the really acceptable explanation.

“Because of this risk, we blindly invest funds in the purchase of grain and we will lose our money if we don’t do well. Therefore, we must first conduct investigations and studies before making a decision. I hope that we can form a consensus in our company. This kind of ethos is: without investigation, there is no right to speak!” Scrooge did not blush and took the famous saying of a great man as his own.

“Well, that’s a good sentence! Now there is a blind optimism in the grain market. Many guys do business not on a serious analysis of the market, but on going with the crowd. The more this is, the easier the market will be. There is a problem. I propose that we assign a job.” Rockefeller took out paper and pen and recorded the sentence Scrooge said, “No investigation, no right to speak”, and said, “Scrooge and I will go to Chicago. To understand the situation there, Clark, you should have acquaintances in Europe, contact them as soon as possible to understand the situation in Europe, we better set off immediately. Once it is confirmed that things are the same as we inferred, we will do a big deal . What do you think?”

“What does it mean to make a big one?” Clark asked.

“In other words, we use short-selling methods. First, we borrow and sell a batch of grain in the futures market. After the grain price collapses, we buy grain to return it. If we operate well, this business will at least allow We make more than 50% of the profit.” Rockefeller’s eyes shone brightly.

“But the risk is not small,” Clark said.

“Wealth and wealth are in insurance! There are high-profit businesses in the world, either with high thresholds or high risks.” Shi Gaozhi said.

Clarke glanced at Scrooge in surprise, “Even if Rockefeller taught him the previous statement, but this sentence just came out of the context. It shouldn’t be anyone who can teach him first. This is really a genius, but I don’t know if he has genius luck.”

“As long as we are fully prepared and the investigation is clear, there will be no problems.” Rockefeller said.

“Well, let’s do it for the time being. I have some friends in the UK, and I will write to them right away. However, it will take a certain amount of time-letters across the ocean are too slow, and my friends It will take time for us to collect this information. Your investigation will also take time. I think we will know the general situation by about May.”

Unlike the Chicago that Scrooge knew all his life, Chicago at this time is far from being the third largest city in the United States with a population of several million. Now, it has only a population of more than 200,000. China’s standard is at most a county.

To say that the Chicago that now appears in front of Scrooge and Rockefeller is a bit similar to those small county towns in later China. The streets are very narrow, houses and houses are close together, and there are construction sites for new houses and fire hazards everywhere. There is no plan for municipal construction, and the layout of the city is messy. Scrooge knew that Chicago would not have a more overall layout design until after the fire was rebuilt in 1870.

Along the shores of Lake Michigan, there are many piers, where all kinds of boats are moored. A lot of food shipped to Europe departs from here. There is a large road leading from the warehouse area to the dock area. Almost any time, you can see a carriage full of grain slowly walking along this road. And Scrooge’s destination, the Chicago Grain Futures Exchange, is on one side of this road.

Scrooge and Rockefeller came to Chicago by train. In the 19th century, the train speed was relatively slow. Although it was not too far from Cleveland to Chicago, the train ran all day. So by the time Scrooge and the others arrived, it was already afternoon.

“Now the market is closed. Let’s stay here and wait until tomorrow. I know that there is a hotel that is very cheap. Well, the conditions are average, but it’s still clean.” Rockefeller said to Scrooge.

Scrooge knew that, in addition to doing business, Rockefeller was basically a turtle in terms of Life. In later generations, there is such a legend about Rockefeller. It is said that after Rockefeller became a rich man, every time he traveled on business, he always stayed in the cheapest hotel when he stayed. So someone asked: Why do your sons live in the most luxurious suites every time, but you only live in the cheapest? Rockefeller replied: It was because their father was richer than my father.

Therefore, Rockefeller said that the conditions are general, and it is estimated that it is really general. “Well, when I get rich in the future, I can’t live like Rockefeller, a terrapin. Well, I have to build an ultra-luxury yacht like Morgan. If I’m fine, I will call a bunch of guys from the Millionaire Club. Go up to the Atlantic Ocean to open a’Haitian Feast’ or something. That is the life of a tycoon. Or, what do you do to make money?” Scrooge thought. However, if he were to live in a comfortable and expensive hotel, Scrooge would be reluctant, because every penny now must be used to bring more money.