Running out of money is always the most painful thing, especially when there is a large group of people pointing to eat, and it is imminent to solve the financial crisis.

St. Petersburg Hermitage

The new Chancellor of the Exchequer, Yevgenis, reported with a sad face: "Your Majesty, this is the latest month's expenditure report, and if we don't take measures, we will go bankrupt in three months at most." ”

Fiscal bankruptcy, the tsarist government is not the first time it has happened. If it is a normal period, bankruptcy is bankrupt, and it is a big deal to declare default.

The problem now is that the newly organized campaign for land reclamation cannot be stopped, otherwise these tens of millions of people will go hungry. At that time, not only will the reform be ruined, but even the Tsarist Empire may collapse as a result.

After taking the report and glancing at it, Alexander II threw it aside, got up and wandered around the room.

The plan never changed quickly, and the number of people who actually participated in the reclamation was much greater than the tsarist government had anticipated. There is a lot of power in numbers, and so is the expense.

After a long hesitation, Alexander II asked: "If from now on, we suspend international debt payments, will we be able to survive this crisis?" ”

Paying off the bill was not an option, but the problem was that the tsarist government really ran out of money. Whether it was to continue international loans, or to issue bonds, the tsarist government tried.

No one wants to lend money to poor people, and even if the Russians can come up with collateral, everyone is worried that they will not be able to keep their promises.

Because of the war, part of the fertile land in Eastern Europe was lost, and the financial revenues of the tsarist government were also greatly reduced.

If it had not been for the seizure of the house, the tsarist government would have gone bankrupt long ago. The war was very costly, and the reform was also a gold-eating beast, leaving Alexander II with little choice.

After thinking about it, the Chancellor of the Exchequer replied: "If some projects are suspended and the land reclamation campaign is fully guaranteed, it should not be a big problem." ”

When the time came for multiple-choice questions, Alexander II drew up an ambitious plan for the Russian railways.

The whole line was 150,000 kilometers, and once this plan was completed, Russian Eastern Europe was connected in series, and Prussia and Poland could almost be declared finished.

Alexander II made a decisive decision: "Okay, then do it!" ”

The problem of development lags behind first, and it is important to solve the current problem. On the surface, it seems that the large-scale reclamation has increased the amount of land and allowed the peasants to have land, which is a good thing.

In fact, there are still big hidden dangers here. The biggest problem is that there will inevitably be too much grain production in the future, and everyone understands the truth that grain is cheap and hurts farmers.

Perhaps for a capitalist economy, an increase in food production is a good thing, reducing the cost of feeding workers.

Then, for the peasants and nobles, it was a disaster. Many aristocrats are pulling back, the main reason is that they are worried about the damage to their interests in the future.

The Russian Empire was already a major exporter of grain, and if it continued to increase its production capacity, it would definitely not be able to consume it internally, and export would become the only option.

From the very beginning, the tsarist government was ready to bring down the price of food in Europe. Countries can dump industrial products on them, and they can dump agricultural products in reverse.

It would be great if there was a monopoly on the food supply of the European continent. To do this, the first step was to allow the grain of the Russian Empire to be able to be shipped out.

Railways are an essential part of the equation, and if they don't solve the traffic problem, the plan will always remain on paper.

No one objected to Alexander II's plan, which was more important than the great one.

As long as the first year is survived, and the output of the land can ensure the basic livelihood of the people, then the rest will be solved.

At this time, the Russian peasants were easy to support, and they had just changed from serfs to freemen, and as long as they could fill their stomachs, they did not dare to ask for anything else.

As long as we get through the most critical moments, the problems that follow will be easy to solve.

On July 7, 1869, the tsarist government sent a note to the major creditors, declaring that the Russian Empire was financially bankrupt and could not continue to pay its debts.

The European world is in an uproar, and in recent years there have been no European countries to pay their debts, which has given the public the illusion that the governments of the government have increased their discipline.

The Russians have now shattered everyone's illusions, and there is no time when everyone is in a good financial situation and has no time to repay their debts.

If you really don't have any money, then you have to pay the debt. Anyway, if you don't have money, if you don't give your life, let's watch the rest!

In addition to the creditors, the European people have become melon-eating masses, and their eyes are set on Vienna, and their gloating expressions are overflowing.

Austria has been doing well recently, which naturally makes many people jealous. As the largest creditor of the Russians, many people are now watching Austrian jokes.

You must know that now the Russians have to pay 3,068,400 aegis in principal and interest every month, which is 36,820,800 aegis every year.

This astronomical figure is enough to shatter the Russian-Austrian alliance. No matter how good the relationship is, it can't withstand the destruction of interests.

Franz was not as frightened as the outside world imagined, and when he refused to provide loans to the tsarist government, he was prepared for the Russians to pay their debts.

No, it should be said that this was prepared earlier. After all, the tsarist government's financial situation has always been poor, and it is not easy to support it until now.

No matter how well you prepare, you must also do the aftermath work. Most of these loans were guaranteed by the Vienna government, otherwise few banks would have dared to take orders.

In addition to the problems, the Vienna government also has responsibilities. Fortunately, the vast majority of loans were secured, and it was now the job of the Vienna government to urge the Russians to secure the collateral.

Prime Minister Felix frowned and reported: "Your Majesty, the contract signed at all, we have made a preliminary estimate, even if the Russians fulfill the mortgage, we will bear the compensation of 38 million Aegis within the scope of the guarantee."

This money cannot be borne directly by us, the Russians must be held accountable for it. Now that there is no money in the treasury, let them postpone their repayment, and the tsarist government will not be able to go bankrupt forever. ”

Franz nodded, other people's debts can be ignored, and their own accounts will always be recovered. Even if there is no money, it is necessary to let the tsarist government admit the account first, otherwise it will be difficult for the Vienna government to account to the people.

"The Ministry of Foreign Affairs communicated with the Russians and urged them to fulfill the contract. If you are unable to pay your debts, you can defer payments. ”

It is the uncle who owes the money, and the current tsarist government is this uncle.

It is impossible to collect debts by force, and this little money is simply not enough for military spending. Unlike Mexico, which is so easy to bully, the woolly bear still has strength.

The tsarist government has no money, which does not mean that the tsarist nobles have no money, and the accumulation of hundreds of years can support a war no matter how much it is.

The aristocracy and the tsarist government were both in loss and in glory, and when foreign enemies invaded, they quickly became like a family.

The Russians have many creditors, and in line with the principle of bullying the weak and fearing the hard, it is estimated that the debts of small countries will be relied upon, and the debts of large countries are generally deferred.

The debts that are deferred in payment are also divided into three or six or nine categories, and those guaranteed by various governments must be repaid on a priority basis, and most of the private commercial loans that are not guaranteed by the government can be relied on, and if they cannot be relied upon, they will be delayed.

After picking and choosing, the Russians reduced their foreign debt by at least 400 million Aegis in this debt repayment. If the tsarist government had been tough enough, there might have been more.

To Franz's relief, the Russians had already repaid their foreign debts during the Near Eastern War, not to mention the interest income, at least the principal was returned.

The debts in the Russo-Prussian War, it is not to be said that they were naturally not recovered. The banks with the strongest business capabilities have also recovered 30 or 40 percent of their costs at most.

The Austrian government is not losing money, most of the loans are tied to the conditions, through these years of trade between the two countries, driving economic development, the increase in tax revenue is enough to make up for the loss.

Financial institutions are different, if there is a guarantee from the Vienna government, then it is easy to do, even if the Russians are in debt, and the Vienna government is responsible for ensuring the safety of the principal.

If you don't get a secured business loan, you're in big trouble. Financial institutions are responsible for this kind of loan.

Phillip Potter is one such unlucky guy, he is not a banker, he is just the owner of a securities company.

Because he coveted the high rebates offered by the Russians, he sold a batch of bonds on behalf of the tsarist government, and now the Russians have declared financial bankruptcy, and according to Austrian law, his securities company will be jointly and severally liable.

A middle-aged fat man hurriedly ran and said, "Mr. Phillippot, the news of the Russians declaring bankruptcy must have spread, and now the people outside are demanding that we pay our bonds in advance." ”

At this time, the securities management system in Austria can be described as rude, and the securities company issued bonds on behalf of the people, and had to be responsible for the people who bought the bonds.

To put it simply, the right to review bonds is in the hands of the securities company. This is not only a good thing, since you have obtained the right to review, you also have to bear the corresponding responsibility.

For example, to ensure that the bonds can be dealt with normally, and explain the risks to the people who buy the bonds in advance, the securities company needs to bear a certain amount of compensation liability in the event of default.

This compensation standard is jointly determined by the securities company and the government. The standard set by the government is not less than 50% of the principal, and securities companies often set a high standard in order to attract business.

None of the securities companies in Austria claim to be capital guaranteed, and Philippot's securities company happens to be one of them.

According to the promise, now that the Russians are in default and cannot afford to pay the bonds normally, Phillipport's securities company will have to repay the principal on their behalf.

The promise you give yourself must be fulfilled. Phillip Potter regrets it now, the Russians gave a commission of up to 15%, which was not normal, but unfortunately he did not resist the temptation at the beginning.

Phillip Potor asked with concern, "Berg, how much money do we have in our accounts?" ”

It is impossible to run away, and the police have already targeted him. If you run away, you probably won't be able to get out of Austria and be arrested.

Finding a way to deal with the aftermath is the king, and losing money is a must. Now it is obviously impossible to sell these bonds at a fair price, but after the discount, there may be people who dare to take over.

After all, this is a government bond issued by the tsarist government, and even if it is bankrupt and unable to pay it now, it is still possible for the Russians to buy it back in the future if they want to rebuild their credibility.

Ordinary people can't see that far, or can't wait that long.

Berg thought for a while and said: "There are a total of 3,894,600 Aegis in the account, but after deducting the operating expenses of the securities company, only 3,560,000 Aegis can be used.

Mr. Phillippott, there are a lot of people out there who are asking for early payment, and this money may not be enough to pay out. ”

Philip Potor sighed and said, "I know, first send someone out to appease the people and tell them that we agree to pay in advance according to the contract."

I remember that there was an agreement in the original sales contract that if the bonds could not be dealt normally due to force majeure, we were indeed responsible.

However, this is after the maturity of the bond. Now they are asking for early payment, which is a breach of contract, and we need to bear 20% of the liquidated damages, and we only need to pay 80% of the principal.

After three days, we began to pay the bonds in advance, only opening one window, increasing the review steps, and delaying as much time as possible.

I'm going to find out if things have turned around. Something so big happened that it was impossible for the Vienna government not to react.

Rest assured, this thing won't hit us. We have issued more than 8 million bonds to the Russians, and it is impossible for all the people to demand early payment, right?

You can also inquire and see if there are any people in the market who buy Russian bonds, even if it is a discount, we may accept it. ”

The profits of securities companies have always been very lucrative, and when Phillip Potter founded this company ten years ago, he only invested less than 300,000 Aegis, and now the liquidity alone is more than ten times that of this figure.

Over the years, he has also withdrawn millions of profits and dividends from securities companies, and this crisis has brought him great losses, but as long as he copes with it properly, there is still hope for getting through this crisis.

Philip had to rejoice that the Russians themselves were inherently discredited, and their bonds were unpopular in the market. Otherwise, tens of millions of Aegis were sold at one time, and he would have to jump to the rooftop.

Of course, if he could sell tens of millions of Aegis, he wouldn't be able to do this business.

Austrian law is not child's play, and the government will interfere with the issuance of bonds that exceed its carrying capacity.

Otherwise, if you register a leather bag securities company, issue bonds in the market to make money, and donate money to run away and declare bankruptcy after selling it, wouldn't you be able to make a fortune quickly?

Obviously, this way of getting rich overnight has been clearly written in legal astronomy.

Unlike other companies, securities companies are the most strictly responsible for bankruptcy. Both management and shareholders are subject to scrutiny, and unless everything is strictly regulated, basically no one will be able to run away.

Strictly speaking, the bonds issued by Phillip Porto on behalf of the Russians can be regarded as a sideline.

If nothing happens, there is no problem, but now that something happens, if he doesn't do a good job of dealing with the aftermath as soon as possible, and when the police intervene, he will probably go to prison.