roccoschili Chapter 79 The Financial Crisis of the Eighth Century
Chapter 79 The Financial Crisis of the Eighth Century
"……yes!"
Chen Wenbin turned around and looked at the middle-aged doctor who was the first to express his willingness to work at Robin Hospital, and said with emotion:
"Fortunately, the Bank of England acted decisively; otherwise, our business development would have been affected by this financial crisis!"
Financial crisis!
Financial crises actually occurred in the 18th century?
This was Chen Wenbin's reaction when he first heard about this from Franklin, Henry Coates, and others.
He subconsciously felt that a financial crisis would have to wait until after the European Industrial Revolution and the great development of capitalism... After all, capitalism had to come first before there could be financial and economic crises.
But the fact is that Europe did experience an international financial crisis last year that swept through the Netherlands, France, the UK, and Germany!
First, Dutch banking giant Denefville closed its operations on July 29 last year and refused to repay its debts, triggering a chain reaction.
In early August, all banks in Amsterdam announced their closure and refused to recognize the relevant bills.
In the following five months, 43 banks in the Netherlands went bankrupt, and countless small and medium-sized financial companies suffered losses, severely damaging Amsterdam's status as a European financial center!
Other European countries were quickly affected as well. Trade came to a standstill, payments were interrupted, bank notes became worthless, contracts were torn up, and the wealth of countless European nobles and millionaires vanished overnight!
If the Bank of England had not taken decisive measures to inject liquidity into the UK's financial markets and enhance the creditworthiness of banks, Britain would never be as peaceful as it is now.
What caused what may be the first international financial crisis in history?
It was the greed of the Dutch bankers!
Throughout the Seven Years' War, the Netherlands maintained a neutral stance, mediating and participating in negotiations between the warring parties through diplomatic means while simultaneously selling arms and supplies to both sides, making a fortune and further consolidating Amsterdam's position as a European financial center.
On the eve of the war's end, senior executives at the Denefville Bank predicted that food prices in North Germany would rise after the war, so they bought large quantities of oats from Russia and stockpiled them, intending to make a fortune.
Other Dutch banks and financial speculators also jumped on the bandwagon, either directly participating or providing speculators with leverage of up to fifteen times. Everyone was sharpening their knives, eager to fleece the North Germans, especially the Prussian fat sheep.
This is actually a common practice in Europe. Whenever there is a war in the German region, there is always a shortage of food, and food prices will inevitably rise. Speculators can always make excess profits from the Germans by manipulating food prices.
However, this time, King Frederick II of Prussia did not play by the rules.
Although Prussia suffered heavy losses in the war, losing one-tenth of its total population (about 30), devaluing its currency and experiencing hyperinflation, and being robbed by Russia during the war, Prussia had continuous financial support from Britain and had ample food reserves after the war.
As a result, all the Dutch banks and speculators involved in grain speculation were trapped. Prussia continued to sell grain, causing grain prices to fall continuously. The speculators' grain collateral depreciated, forcing them to sell and close their positions, which in turn further depressed grain prices, creating a negative feedback loop.
Ultimately, grain prices in North Germany plummeted by 75%, forcing Prussia to the brink of collapse, along with other grain speculators like the Dennefvel Bank, thus successfully achieving a financial counterattack!
Chen Wenbin certainly wouldn't believe that Britain wasn't involved behind the scenes, or even directly intervened.
After all, Amsterdam's status as a financial center has been shaken, the reputation of the Dutch banking industry has been damaged, and commercial paper denominated in Dutch guilders has depreciated. The biggest beneficiaries are Britain and London!
But he had no idea what the specifics were...
There wasn't much to see in the farm and wasteland, and with a light drizzle starting to fall, everyone got back into the carriage and returned to Chen Wenbin's Mayfair mansion.
As soon as he entered the room, he took off his top hat and handed it to a servant. He saw Henry Hopkins, an old acquaintance he hadn't seen for several days, sitting on the sofa chatting with Diana and a middle-aged man dressed in a nobleman's white wig. Richard, the butler, and Betty stood by serving him.
"...Betty! Who is he...?"
Chen Wenbin's heart skipped a beat. He looked at the little maid who was rushing towards him and asked in a low voice.
"Sir!" Betty whispered as she helped him take off his coat, "This is Master Robert, Miss's father!"
Oh!
Sure enough, my father-in-law has arrived!
Chen Wenbin immediately smiled sincerely and walked over calmly. He first gave Diana a reassuring look, and then looked at the two middle-aged men.
Henry Hopkins, his marriage negotiation representative, immediately fulfilled his duty upon seeing this, smiling as he stood up and introduced Chen Wenbin:
"Robin! I think you've probably guessed it, this is Mr. Robert George Spencer, your future wife's father!"
"Mr. Spencer, it's an honor to meet you! I'm Robin Chen, and I've often heard Diana say that you're a kind and forgiving father."
"dad!"
Before her father could speak, Diana couldn't contain herself any longer and stood up, taking Chen Wenbin's arm. She hurriedly declared, "Robin and I are truly in love...he is my Romeo!"
"..."
Seeing his daughter's determined expression, Robert's stern face broke down. He stood up, supporting himself on his knees, and shook his head helplessly, saying, "My little Diane... have you forgotten that Romeo and Juliet is a tragedy?"
Furthermore, I don't recall any animosity between the Spencer family and the Robin family!
Diana knew her father's reaction meant he approved of the marriage, and she was overjoyed. She gently patted her forehead and said, "...God! Look at me! I made a terrible analogy!"
"Darling! Dad! Let's sit down and talk!"
Chen Wenbin gave Diana a quick kiss, then sat down and was about to exchange a few pleasantries when he said, "Mr. Spencer..."
To his surprise, his father-in-law interrupted, "Robin! Call me Robert! You can call me Dad or by my name after you get married... Calling me Mr. Spencer is like reminding me that I'm a guy without any noble title!"
……All right!
Looking at the middle-aged man across from him, who was relaxed and self-deprecating, Chen Wenbin thought that his father-in-law's personality was actually easier to approach than he had expected... No wonder Diana, despite growing up without a mother and later having a stepmother, did not become strange or insecure; it turned out that she did not lack fatherly love.
If that's the case, then why was Diana sent to North America for a political marriage?