Xinshun 1730

Chapter 893 Britain Falls into the Trap ([-])
This trap is not a conspiracy, but a conspiracy.

Even Liu Yu could tell the British clearly and asked them to take the open-book exam, but they still had nothing to do.

The British East India Company is a joint-stock company.

The company wants to make a profit.

To give back to shareholders, we must pay dividends to shareholders.

Profit-oriented, this is the general premise.

There is another significant difference between the British East India Company and the Dutch East India Company.

That is the person who got on the car first from the Dutch East India Company, and welded the door to prevent the people behind from getting on the car.

The company was short of money, so it had to raise funds by issuing bonds from the Netherlands instead of issuing additional shares.

In the United Kingdom, the interest rate in the United Kingdom was much higher than that in the Netherlands before, and it has only dropped to about 5% in recent years. Before that, there was no way to issue bonds with extremely low interest rates like the Netherlands.

Therefore, he can only expand the stock offering and continuously increase the overall share capital.

Why do we have to increase the overall share capital?Because the company needs a lot of cash.

Why does the company need a lot of cash flow when it is clearly profitable?

Because there is only gold and silver here in Dashun, there is no such thing as exchanging goods for silver to buy silk tea.

It takes two years for a turnover, and the company also faces competition from various countries. Before that, there were several trade competitions between companies from various countries in Guangdong and Fujian, which required a lot of cash.

If you can't follow the example of the Dutch East India Company in issuing low-interest bonds, and you can't exchange ginseng and navy wool for money like France, then you can only increase the shareholding.

Excluding the shares held by the royal family, the number of shareholders of the East India Company is extremely large and the composition is complex.

About 5% have titles, at least knight titles; about 15% have knight titles.

Among the shareholding ratios, those between 3000 taels and 15000 taels accounted for about 30%.

It should be said that these shareholders of the East India Company also have a strong voice in British politics.

In fact, it's the same in Dashun. If you can invest 3000 taels to 15000 taels in the backbone, how can you have no say in this net worth?

These discourse powers cannot shake the association of wool aristocratic landlords and industrial capitalists in the United Kingdom, but other than that, it is no problem to strive for more support and policy preference.

These shareholders, of course, need to make a profit.

They invested their money in the East India Company not to spread English to Asia, but to get dividends during the Chinese New Year.

To get dividends, the company has to make money.

The company makes money, and now it is tied to Dashun's trade, at least 50% of the profits are bound. If it is cut off directly, such a large company will directly lose 50% of the source of profits, and the company will of course have problems.

Moreover, the company had just won the 20-year monopoly right before, because the East India Company reached a deal with the government during the Austrian Succession War - the company bought 300 million taels to 600 million taels of national debt and paid in cash; and The parliament wants to extend the company's monopoly and promise that there will be no more moths like the "East India Trading Company".

At that time, the war of Austrian succession was going to be fought, and money was short of money, so I naturally agreed.

Now that the newly renewed 20-year monopoly period has just begun, how can the company's shareholders want the company to be unprofitable and not receive dividends?

But Liu Yu was clearly looking for faults with the help of the opium issue. Even if trade in Dashun was still allowed today, what if they turned their backs tomorrow?

Therefore, under this threat, the company must find new profit growth points.

Then, just like Liu Yu and the emperor said, if you lack money and have no money to control the immigrants from the Huai River, you can go to India to collect taxes.

In the eyes of the British East India Company, what is the new profit growth point that is visible to the naked eye, can be effective in a short time, and can avoid the threat of Dashun's trade severance?

Obviously, India.

After Aurangzeb's death and the collapse of centralization, it is already the consensus of the world at this time that if you lack money, you will turn to India.

The Persians think so, the Afghans think so, Dashun thinks so, and Britain naturally thinks so too.

With the ATM in front of you, who can resist this temptation?
In Europe, Dashun still needs to continue to cooperate with France.

Therefore, Liu Yu beat France in India before, because he could not let France win in India.

France won in India, and the alliance between Dashun and France came to an end. Dashun couldn't interfere with too many European affairs, and could only eat India.France won, and the Sino-French conflict was inevitable.

How can France withdraw from India with "dignity" and "full of gratitude" and let Dashun take over?
That is to allow the UK to continue to increase investment in India.

It's like two people sitting at a gambling table, constantly raising the stakes, and the French either calls or rolls off the table.

Follow... Liu Yu is sure, France can't afford to follow.

On the one hand, France's naval power is not enough to attack from all sides.

On the other hand, the ginseng and mink trade between Liu Yu and France has greatly increased the value of Canada and North America. If you can't attack from all sides and can only choose one of the two, should you choose North America?Or choose India?
This choice between the two was doomed from the day when the first French ship, packed with Canadian ice, loaded with American ginseng and mink, and the "Dongzhu" of the Great Lakes, came to China and sold out in an instant.

Liu Yu often said a word:

Back then, the Houjin Tartars could raise thousands of soldiers with ginseng, mink and oriental pearls from Liaodong; it was not a problem for France to raise thousands of North American troops with ginseng, mink and oriental pearls from the Great Lakes and Canada.

First sell a few shipments of ginseng pearls and make a fortune in silence.Backhand armed thousands of Indian allies.British also armed Indians?But don't be afraid, Dashun sent some people to pick up the cowpox for the Indian allies of France. The Indian allies of Britain could not win against the Indian allies of France.

He, Duplex, imagined training soldiers in India, engaging in tax collection, and relying on land tax to support the East India Company, so that France would lean towards India.

The assumption is correct, but the question is who will pay for the initial investment?

After 20 years of economic crisis in France, investment is sluggish. They feel that land is the most valuable, and capital is afraid to take risks.

In terms of painting pancakes, isn’t the Mississippi pancake painted by John Law more fragrant than that painted by you Duplex?
The results of it?
Once bitten by a snake for ten years and afraid of well ropes, heard about the big cake back then and went bankrupt countless times, now if you listen to the big cake again, you will put all your wealth on it?
Listen to an unknown Indian land tax pie that has just been beaten by the British; why not invest in the Canadian ginseng mink freshwater pearl pie that has already seen real money?

The United Kingdom continues to increase its size in India. Even if Duplex has the ability, he is still a clever woman who can't cook without rice. How can he increase his size if he has no money?

At that time, the French will of course have no choice but to choose North America instead of India, hand over the cities in India to Dashun with a smile, and drag Dashun into the quagmire of the Anglo-French war.

This is to save face for the French and maintain the "friendship" between China and France.It is Yangmou.

When the French understand it, they can only follow the route Liu Yu planned for them.What else can we do?Even if he knew he was being tricked, he still had to wear a smile on his face.

But for the British East India Company, Liu Yu's move is still a conspiracy.

Liu Yu has been collecting information on the British East India Company over the years, and has detailed data on the British East India Company's equity composition, dividend ratio, and profit sources.

With this data, Liu Yu has a very clear perspective on how to increase the company's profits from the perspective of the shareholders of the East India Company.

Liu Yu can be sure of one thing.

The British East India Company, in terms of its trade model, the 1770s was a watershed in history.

From being driven out of Southeast Asia by the Dutch until the 1770s, the British East India Company’s profits in India depended on buying cotton cloth from India and shipping it back to the UK for sale. The British woolen and cotton textile industries were so expensive that they were not enough to resist India. cotton.Or, use Indian cotton cloth to sneak around the Dutch, go to Southeast Asia to exchange spices, and then transport the spices back to Europe.

From the 1770s to before its disbandment, its profit model in India became to buy cotton from India, send it back to the UK to be spun into cloth, and then transport the British cloth back to India, sell the money, and then buy cotton—this is exactly Liu Yu's most desired model.

Of course, this is only in the direction of India.

As for China... It can only be said that the profit model of the British East India Company has not changed except for opium. It buys Chinese goods, exchanges them for silver in Europe, then brings the silver to China, and then buys more Chinese goods. Go back to Europe and sell more silver.

The current Dashun is not a paramecium-like dynasty that is passive and can only be stimulated and reacted by others.

It was a celestial dynasty trying to seize the initiative in trade, so the British East India Company's trade in China was in the hands of Liu Yu.If you are allowed to make money, you can make it; if you are not allowed to make it, you cannot make it.

Looking at India, since the 1770s, the transformation of the British East India Company’s profit model in India is, on the one hand, the start of the British Industrial Revolution.

On the other hand, India, which was originally a small-scale peasant economy, collapsed in an instant that year.

Why was the small peasant economy and the originally developed handicraft industry so easily washed away?
It was simple, but Dashun couldn’t learn it—there was a great famine in Bangladesh, and more than 2000 million people starved to death, which directly collapsed the small peasant economy, and five-sixth of the textile workers in Dhaka starved to death.

Here, the small peasant economy was destroyed by natural disasters in 1769. Over there, in 1769, Britain invented the water-powered loom and the mule loom.

Just in time.

when?

Destiny also?
The reason why Dashun couldn't learn from it was not because the emperor had a good heart, but because Dashun was going to have such a situation that would directly collapse the small peasant economy and handicraft industry. How could the people of Dashun be willing to starve in safety?
It must be eating his mother and drinking his mother. King Chuang didn't pay for food when he came.

He didn't remember that a large-scale uprising broke out in Bangladesh that year, but he knew that if it happened in Dashun, there would definitely be a big uprising.

Therefore, Liu Yu must win India 60 years ago, that is, within a dozen years.

The so-called gentlemen stay away from the kitchen, the disaster in Bengal is not the drought caused by him calling the wind and rain.

The emerging class who are worried about Dashun may lead to the bankruptcy of small farmers and cause a big uprising. Isn't this a godsend?An excellent market, an excellent opportunity to transfer the bankruptcy of small farmers brought about by industrialization.

The industrial revolution will always be accompanied by the disintegration of the small peasant economy and cause huge disasters, either in Dashun or in India.

Of course, he will be very kind and benevolent and not be as cruel as the British. Appropriate relief still needs relief. It is impossible to distribute 2500 taels of silver to the 27000 million people affected by the disaster like the British, which is equivalent to a copper coin for each person; But appropriate relief does not prevent the instant collapse of the small peasant economy.

But before that, he had to open up European trade to ensure that before the 70s, the emerging class in Dashun would continue to develop and accumulate enough technology, capital, and workers, so that the production capacity would explode instantly when that day came.

It is impossible that when that day comes, without previous accumulation, these production capacity and industrial power will burst out out of thin air.This requires a solid foundation ahead.

This is interlocking, and one wrong step will not get out of the vicious circle of the Celestial Dynasty.

At this point in India, it is composed of the current profits of the British East India Company. The trap set by Liu Yu made the British and French have to fall into it.

The British East India Company must understand one thing. 50% of the company's current profits lie in Liu Yu's words.

Therefore, what Liu Yu had to do was to put pressure, intimidation, and then use some means to force the British East India Company to consider changing the profit structure.

He has a criminal record.

He and Holland were still smiling on the face, and then stabbed a knife in the back and went to Nanyang.

Therefore, after Liu Yu exerted pressure and intimidation, he only needed to generously allow the British East India Company to continue its trade in China to make the British East India Company uneasy.

I wonder if Liu Yu is planning to make bad news, so that the British East India Company will continue to expand its trade with China, making the British East India Company more dependent on trade with China, so that it will be cut in the future, just like the Dutch East India Company, let the British East India Company Indian companies went bankrupt instantly due to a broken capital chain.

When Fazakle paid homage to Liu Yu, Liu Yu just cursed in general, and did not mention a very clear word such as "severing trade".

This is more frightening than his direct threat of "severing trade".

(End of this chapter)