1850 American Gold Tycoon.

Chapter 209 Unshirkable!

A train full of gold quietly left the train station in Washington, headed for New York.

On this special train were not only officials from the Treasury Department, but also half a regiment of Marines.

Fillmore attached great importance to this batch of gold. To be on the safe side, Fillmore ordered the Supreme Commander of the Marine Corps, Colonel Commander Fox of the Marine Corps, to personally escort the batch of gold to ensure the safety of this batch of gold.

This is $500 million worth of gold!This is still based on the exchange ratio of 117:100. According to the current exchange ratio, the actual value of these golds has exceeded 650 million US dollars.

Curwen looked at the gold on the train reluctantly, and thought that the gold would be put on the market after it arrived in New York, and Curwen couldn't help feeling ashamed.

After the gold from the federal treasury arrived in New York, the Secretary of the Treasury gave a speech on Wall Street. Corwin unceremoniously rebuked the speculation in the gold market and announced that in order to maintain the stability of the value of the dollar, it proved that the dollar was still very credible and valuable. Very strong currency.

The federal government will participate in the bailout and put gold reserves worth more than 1500 million US dollars on the gold market on Wall Street in New York to stabilize the exchange rate between the US dollar and gold.

As soon as Corwin's news was announced, Wall Street and even the entire New York State exploded instantly.

The effect of Corwin's speech on Wall Street was immediate.

In just half an hour, the exchange rate between the US dollar and gold plummeted from 158:100 to 141:100.

A large number of gold speculators are eager to convert their gold futures and gold into dollars, hoping to get out of the quagmire of the gold market.

However, gold futures and gold, which were still being snapped up an hour ago, have now become outcasts in the market.

Nobody wants to buy something that is rapidly depreciating in value.

Of course, there are also a few people who are lucky and think that the finance minister is exaggerating and deliberately releasing a smoke screen to cause panic in the market.

They feel that Corwin's announcement that the federal government will invest $1500 million worth of gold to rescue the market is an out-and-out lie. After all, so far, no one has seen the gold that the government has put into the market.

Soon, these speculators regretted it, because the Marine Corps soldiers from Washington in full armor escorted carloads of gold to the gold exchange on Wall Street in New York.

Along with gold, officials from the Ministry of Finance also entered the gold exchange.

Speculators flocked to the trading floor of the gold exchange to trade.

Looking at this scene, Corwin, who was calm on the surface, was actually panicking in his heart, because the value of the gold that the government invested in the bailout was only US$500 million instead of the US$1500 million he had promised in his speech.

If the gold is not enough, the Treasury Department will continue to move out the gold in the federal treasury to rescue the market.

"Mr. Corwin."

Liang Yao walked up to Ke Wen with a smile on his face, and said to Ke Wen.

"In order to ease the government's rescue pressure, Bank of America will take out gold worth 100 million US dollars to participate in the government's rescue activities.

Stabilizing the value of the U.S. dollar means stabilizing the U.S. economy, and stabilizing the U.S. economy is the unshirkable responsibility of every commercial bank in the U.S. "

New York State Governor Hunter has helped Liang Yao obtain a permit from the New York State Assembly to open a branch of Bank of America in New York.

The Bank of America New York Branch has been established for three days. Although the manpower has not been recruited yet, many businesses have not yet been carried out.

However, it is more than enough to concentrate the existing manpower to handle the exchange of gold and US dollars.

"Really? Thank you so much." Ke Wen gave Liang Yao an angry look.

"Should I still have to give your Bank of America a pennant?"

Corwin is not a fool. He knows very well that the sudden rise in gold prices in New York is inseparable from the gold tycoon in front of him.It's just that he doesn't have any evidence.

"There is no need for banners." Liang Yao said with a smile.

"However, sir, I have to remind you that whether it is the futures market that has just emerged in New York or the futures market in Chicago, there are big problems. It is easy for speculators to take advantage of the loopholes. This time it is just someone speculating on gold. At most, there will be more on Wall Street tomorrow. A speculator who went bankrupt and jumped off a building."

"You might as well make it clear," Corwin said.

"Next time someone operates Chicago's wheat, the problem will not be as simple as some speculators jumping off a building. You know that the folk customs in Illinois have always been very simple." Liang Yao said.

"The leverage ratio in the futures market is too high, only [-] percent, and the threshold for speculation is very low. It is inevitable that some speculators are willing to take risks."

Liang Yao originally wanted to say that he was an illegal speculator, but then he thought about it. There are no laws and regulations in the United States to regulate the new thing of futures. The behavior of maliciously speculating on futures is not illegal, but immoral at most.

Morality is far less binding on people than law.

"The leverage ratio in the futures market really needs to be controlled, but too low a leverage ratio will also reduce the utilization rate of funds and make the futures market lose its vitality."

After thinking carefully, Ke Wen asked Liang Yaodao.

"What do you think is the appropriate leverage ratio?"

"You are the Minister of Finance, I think you are better at this than me." Liang Yao thought for a while and said.

"If it is the futures trading market in California, I would suggest that the state legislature legislate to control the maximum leverage ratio above 5%."

Ke Wen nodded thoughtfully, then dismissed the secretary beside him, spread his palms, and asked Liang Yaodao in a low voice.

"Can $500 million worth of gold get the dollar to gold ratio back to 117:100?"

Liang Yao quickly realized that Corwin only brought $500 million worth of gold to Wall Street to rescue the market this time.

If Liang Yao hasn't started selling gold futures and gold, it's hard to say whether gold worth 500 million US dollars can save the market.

But Liang Yao had already secretly sold all the gold futures he held and gold worth more than 300 million U.S. dollars, overdrawing a large part of the upside potential of gold in advance.

The price of gold has actually come to an end, and it is not as strong as Corwin thought.

"It's gold worth six million dollars, Your Excellency."

Liang Yao said to Ke Wen.

"The exchange rate between the dollar and gold will soon return to the original point, or even lower."

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"Sir, just as you expected, the government came forward to rescue the market! The price of gold dropped by a full 30 points in one day! It is estimated that it will continue to fall when the market opens tomorrow!"

Charlie had just returned home from get off work at the telegraph office, and Gould had already been waiting for Charlie at the gate of Charlie's residence.

Seeing Charlie's return, Gould said to Charlie very excitedly.

"Sir, you are so good at predicting things! In just over a week, we earned $53! A full $53!"

Charlie was not as excited as Gould, he just pulled out the key and opened the door of the rental house, and said calmly.

"We only made $53, and someone made at least $100 million, maybe even $200 million."

After entering the room, Charlie closed the door, locked it habitually, went to the desk and sat down, took out a piece of white paper from the side and spread it on the table, then filled the pen with ink, and began to write at the desk.

"You mean Liang Yao? No way, Liang Yao invested far more than us." Gould bit his lip and said.

"Sir, one day you too will be a multi-millionaire!"

"Maybe he will become a billionaire after I become a multi-millionaire." Charlie said helplessly.

After finishing the article, Charlie pulled out a Barings check from the side, wrote $100 on the check with his left hand, and handed the check to Gould.

"Here's Mrs. Brannan's living expenses for the next month."

Gould habitually took the check that Charlie handed him, muttering.

"Sir, every time I pass a check to Mrs. Brannan, she always complains to me that $100 a month is not enough for living expenses."

"Don't pay attention to her complaints, please remember that you are working for me, and you only need to be responsible to me." Charlie said seriously.

"The living expenses of $100 a month are enough for her to live as a rich wife in New York. I can live well on a monthly salary of $12 and save three or four dollars."

"I see sir." Charlie nodded.

"The bonds of the Erie Railway Company are very cheap now, and all the $53 earned in the gold market this time were used to buy the bonds of the Erie Railway Company."

Charlie took a pot of water and put it on the coal stove to boil.

Boiled water can kill the bacteria in the water and reduce the chance of cholera infection, which is one of the successful experiences of cholera prevention in New York.

After cholera, many New Yorkers had the habit of drinking boiled water. Compared with dying from cholera, it was more cost-effective to spend more money on coal.

After all, money can be earned again, but there is only one life.

"Yes, sir."

For Charlie's explanation, Gould agreed without any doubt.

Gould believed in the vision of this employer, although after Vanderbilt and Liang Yao announced that they would enter the Eastern Railway market with new technology.

The stocks of the railroad companies on Wall Street plummeted and there was a lot of grief, but it was the same as the gold market.The stocks of railway companies will also usher in its inflection point. Gould himself believes that the railway industry is a very promising industry.

It is not a bad thing for the railway industry that Vanderbilt and Liang Yao came forward to disrupt the situation.

At least some railway companies that should have been eliminated can be eliminated.

Charlie’s ideas are more complicated than Gould’s. Charlie not only believes that the railway industry is very promising, but he is also very optimistic about James, the president of the Erie Railway Company. He believes that James is a very capable and courageous person who has the ability to lead the Erie Railway. The company is out of crisis.

And according to the "New York General Railroad Act" promulgated by the federal government in 1850, the bonds of the railway company were allowed to be converted into shares.

Now that the railroad industry is in a downturn, the price of these bonds issued by the Erie Railroad has plummeted from $10 a share to $3 a share, worse than the Erie Railroad stock.

Buying these Erie Railroad bonds now is a good investment. As long as the Erie Railroad stock price rebounds and the company returns to profitability, the $53 he spent today will become $153 million or even $200 million.

At that time, as long as he converts debt to equity, he can change himself and become the major shareholder of the Erie Railway Company.

Seeing that the handwriting on the paper had almost dried, Charlie picked up the paper on the table, folded the paper and stuffed it into an envelope.

"Send this article of mine to the editor-in-chief of the New York Post."

Charlie handed the envelope to Gould and said.

Gould took the envelope and saw that Charlie left Charlie's residence without any other instructions.

"Liang Yao, Liang Yao, although you have made a fortune in the gold market, I want to make the money you make a hot potato."

After Gould left, Charlie had a smug smile on his face.

(End of this chapter)