Rise of Australia

Chapter 293 The Delayed Rubber Crisis

When the situation in Europe experienced the second Moroccan crisis and the Italian-Turkish war, Arthur and the royal consortium also took many actions in Europe.

First of all, because of the tense atmosphere shown in these two incidents in Europe and the upcoming war, many civilian factories and enterprises in Europe have depreciated in an instant, and even faced the danger of bankruptcy.

Not only the stock markets in France and Germany, but also the stock markets in countries such as Britain, Austria-Hungary, and Russia were not very good. After the Italian-Turkish war, the Italian stock market was added.

Of course, the current depreciation situation is not too serious, at least compared to the war period in history.

Once the war breaks out, the depreciation faced by these enterprises will be even more serious. This is also an opportunity for Arthur, the royal family consortium and even the whole world to buy the bottom.

After the war, a large number of industries in the defeated country will face bankruptcy crisis at that time, which is dozens of times cheaper than the current acquisition.

At the same time, the royal consortium is also selling some assets in Europe substantially, including the stocks of some factories and enterprises invested by the royal consortium.

If you don’t sell them now, you will never have a chance to sell them again. From now until the end of the war, these enterprises will basically be in a state of depreciation, except for those more important military factories.

But the problem is that military factories are also very important to the great powers. The royal consortium currently has no ability to intervene in the important military factories of the major powers.

What's more, the military factories of the defeated countries will also be liquidated after the war, and it is not too late to pack some Krupp military factory technology by then.

The only thing that is not easy to divest is the joint automobile factory built with the British and German local forces.

Whether it is an automobile factory in the UK or in Germany, the current scale is already very large, with tens of thousands of workers at every turn, and it is impossible to easily withdraw capital.

But the good news is that Australasia currently has good relations with Germany and the United Kingdom. For Arthur's sake, whether it is a British or German car factory, it should not be covered by artillery fire.

Of course, occupation should be unavoidable, but presumably Australasia will be able to regain its own interests after the war is over.

It is worth mentioning that during the second Moroccan crisis, the rubber crisis that was supposed to erupt in 1910 was finally delayed.

The reason why the outbreak was delayed was because Benz Motors ushered in a more glorious era for the rubber industry. The development of rubber in this world was far more exaggerated than in the history of the parallel world.

How exaggerated?Even in the few months from the end of 1910 to the beginning of 1911, there were as many as 200 rubber companies registered in East Asia.

But the problem is that the quality of these companies varies. Some companies are indeed serious rubber producers, but some just bought a vacant land in Southeast Asia and registered rubber companies without shame.

And their purpose of registering the rubber company is to list their own rubber company's stock in the East Asian stock market, and earn a lot of profits for themselves by selling the stock.

You know, because cars are popular in the world in advance, the rubber industry has developed very rapidly.

This is because the development of automobiles is inseparable from tires, and tires are generally made of rubber.

This has led to the current number of tire factories in various countries. After all, even if they cannot keep up with the Benz Automobile Factory in terms of automobile technology, they can still produce tires and obtain a lot of profits as tire suppliers for automobile factories.

Take Australasia as an example. The royal consortium in Australasia owns several rubber companies, and there are more than a dozen private tire factories, large and small.

Although the Sydney Stock Exchange in Australasia has only been established for less than a few months, because of the more developed economy and the same culture in Australasia, it also attracts many companies from Europe to register rubber companies here.

However, Arthur attaches great importance to the Sydney Stock Exchange, and companies listed on the Sydney Stock Exchange also need to undergo certain reviews.

At least those companies that want to register a rubber company just enough to buy a piece of land are unlikely to be successfully listed on the Sydney Stock Exchange.

But stock exchanges in East Asia are different.East Asia's stock exchanges are in the hands of a corrupt state.This also means that the management of this stock exchange is very backward, and the power to supervise and manage foreign enterprises is insufficient.

Because of the lack of a unified and mature financial management system, stock exchanges in East Asia have become the main targets of foreign capital and companies wantonly accumulating wealth.

The international price of rubber has also risen from 2 shillings per pound of rubber since the birth of the automobile to a very exaggerated 17 shillings per pound of rubber.

This has also caused the stock price of almost every rubber company to rise. The stock price of a newly registered rubber company can quickly multiply several times in a short period of time, and even eventually it can increase several times.

The rubber company of the Royal Consortium has indeed made a lot of money because of this, and even if the securities company of the Royal Consortium just helps several companies list rubber stocks as an agent, it has earned hundreds of thousands of Australian dollars.

Arthur even secretly supported the establishment of many rubber companies in Southeast Asia, and then made a lot of profits by listing in East Asia.

The real reason why Arthur learned that the rubber crisis was coming was because of the news from Germany that Germany had successfully researched the technology of synthetic rubber, and the synthetic rubber factory that Germany hoped to establish could establish a cooperative relationship with the Benz Automobile Factory, and even Become one of the designated tire suppliers for automobile factories.

In history, it was precisely because of the technology of synthetic rubber and the fact that the development of rubber had indeed reached its peak that the rubber crisis broke out in 1910.

After learning that Germany had successfully developed synthetic rubber technology, Arthur did not hesitate at all, and directly ordered the Kent steward to order the royal consortium to sell all the rubber company's shares in his hands as quickly as possible, and the Sydney Stock Exchange temporarily suspended the rubber company's shares. listing.

After the rubber crisis broke out, not only the price of rubber fell several times in a short period of time, but the stock price of rubber companies also fell directly to the limit in a short period of time.

If you continue to hold the stocks of rubber companies in your hands, you will lose more than you earned in the rubber crisis in the future.

However, for the smooth sale of the shares of the rubber company in his hand, Arthur still shamelessly requested the German side in his personal name to temporarily postpone the announcement of synthetic rubber technology.

As compensation to the German side, Arthur patted his chest directly and agreed to the German synthetic rubber factory to become one of the tire suppliers for the automobile factory.

Anyway, the rubber factory in Germany also supplies the automobile factory in Germany. It is nothing more than changing a tire factory, and let the Germans worry about it.

In mid-April 1911, the royal consortium finally completed the sale of all rubber company stocks.

A few days later, on April 4, Germany announced in a high-profile manner that Germany had successfully developed commercially available synthetic rubber technology and would build a synthetic rubber factory to replace the original rubber company.

As Wilhelm II happily announced the news, the stocks of rubber companies on the German side fell on the same day.

Of course, this is only the beginning of the rubber crisis.

Immediately afterwards, important rubber importing countries such as Germany, the United Kingdom, Australasia, and the United States successively announced that their rubber imports this year (1911) would remain at the level of last year for the time being. The golden age of rubber in [-] is over.

This news is quite fatal to the current rubber market, because the joint announcement of several major rubber importing countries represents that the development of rubber has reached its peak, and the demand for rubber has become saturated.

Companies and enterprises that enter the rubber market in the future will not only lose money, but may even threaten the current rubber market.

What's more terrible is that soon, the world's largest car brand, the German branch of Benz Automobile Factory announced that it will reach a cooperation with the synthetic rubber factory to be established in Germany to replace natural rubber tires with synthetic rubber tires.

We must know that the rubber prosperity can develop to such a large scale, and the role of the car is not insignificant.

The four Benz automobile factories in Germany, the United States, the United Kingdom and Australasia are the four largest automobile factories in the world.

This means that the rubber market will not expand again, but will shrink rapidly in a short period of time.

These few pieces of news were a devastating blow to the rubber market, and also caused rubber stocks in various stock markets to plummet rapidly.

By the end of April, the price of rubber had fallen sharply from 17 shillings per pound to 11 shillings per pound, a reduction of more than a third in less than ten days.

More serious, of course, is rubber stocks.As of the end of April, the price of rubber stocks in the London stock market has generally dropped to one-tenth of what it was more than a dozen days ago, and even the price reduction has become faster and faster.

In the past, the stocks of rubber companies were as high as tens of pounds per share, but now the stocks of most rubber companies are less than ten pounds per share, or even generally reduced to about two or three pounds.

Of course, a heavily regulated stock market like London is fine.

In the East Asian stock exchange market, such a plunge was even more serious.

Because there are not many regulatory reasons, the number of stock companies in the stock exchange market in East Asia is very large, and there are a large number of shell companies mixed in.

When the stock gold was listed, there were a lot of people who bought stocks of stock companies, but now people are dumbfounded.

Stocks that were worth thousands of dollars before may not even be able to eat a meal now.What's more serious is that no one will take over the stocks they want to sell in the stock market, which also causes them to sit back and watch the stocks in their hands continue to plummet.

In just over a month, the price of a single stock plummeted from dozens of pounds to ten pounds, to a few pounds, and finally to less than one pound.

Such a price can't even reach the issue price of the stock, which is enough to prove how severe the impact of the rubber crisis on the rubber industry and rubber companies is.

According to Arthur's guess, especially in Southeast Asia, there are at least thousands of rubber companies that have gone bankrupt due to the rubber crisis, and the total funds lost are even countless.

The few rubber companies that were able to get the news in advance had already cashed out when the stock price was at its highest, and quietly left with a large amount of pounds earned during this period.

And those ordinary investors who don't know the news at all can only react when the crisis comes. By this time, it is already too late. The stock market is full of people who want to sell stocks, and who will buy stocks?

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(End of this chapter)