Chapter 16: The Cotton Crisis
The British were worried that Franz naturally did not know, and at this time he was still having a headache for the Suez Canal project.
There are two main problems:
First, the Canal Company's extensive use of slave labor aroused the condemnation of European public opinion;
Second, the construction of the canal is overrun, and it is necessary to increase investment.
The second problem is easy to solve, the canal company has decided to issue additional shares to raise funds, and it will not be long before the problem is solved.
Under normal circumstances, it is not difficult for France and Austria to join forces to suppress public opinion in Europe. There weren't many Marys in those days, and few people would come out for a gang of Egyptian slave laborers.
Moreover, these slave labors were provided by the Egyptian government, and the canal company paid the Egyptian government.
Previously, even if there was a report in the newspapers, it was aimed at the Egyptian government. After all, the labor was organized by them, and their salaries were withheld.
Anyway, Egypt is not a European country, and European public opinion is a god, and they can't feel it, so it's better to take the blame.
Now it was different, and in order to promote cotton cultivation in Egypt, the British had to compete with the Canal Company for labor.
The Suez Railway, built by the British, was also in competition with the Canal Company.
Conflicts of interest between the two sides are unavoidable, and contradictions arise. In order to crack down on the Canal Company, John Bull provoked public opinion to put pressure on the Canal Company.
As soon as the-stirring stick is shot, the fig leaf is not enough. France and Austria are not charitable, and the canal company wants to save costs, which inevitably reduces labor costs.
Now the Canal Company pays the Egyptian government 1 million Aegis a year, which seems to be a lot, but it is divided among the 150,000 laborers, which is 6.66 ......per capita Aegis.
This figure is less than a month's salary for an average Austrian worker. What's more, this money also includes land acquisition compensation, labor management fees, and so on.
Not only did John Bull reveal all of this, but he also attached several photos, including photos of the laborers' lives and work.
The bloody photographs, accompanied by artistically processed text descriptions, Franz was overflowing with sympathy when he saw it.
If you look closely, you will also see that the overseer of the violence is Egyptian, which is the only good news.
The benefits of labor subcontracting have appeared, and there is one more top mine. If John Bull hadn't deliberately created public opinion, the Canal Company would have shifted the blame to the Egyptian government, and nothing would have happened.
Franz asked: "What are the French going to do?" ”
Now it is the French who are leading the construction of the canal, the same French who are at the center of public opinion, and the French government who is under the greatest pressure.
After all, the French people have an internationalist spirit. Newspapers in France are attacking the Canal Company, and even directly attacking the French government, demanding that the Paris government be held accountable.
When the same thing arrives in Austria, public opinion will be much more relaxed, and the newspapers will be responsible for fair and objective analysis, and will resolutely not carry this black pot.
The Egyptian government was the first to be criticized, and mainstream public opinion believed that the Egyptian government had failed to fulfill its responsibilities and had to pay the main responsibility.
The second is the poor supervision of the Canal Company, which is the responsibility of the company's management.
If there is a problem with a listed company or a multinational joint-stock company, it is naturally not the business of the Austrian government. If minority shareholders are responsible for this, aren't all shareholders responsible?
Foreign Secretary Wesenberg replied: "The French are still hesitating and have not given a clear attitude. Public opinion in France has put a lot of pressure on them.
News came from the embassy that the people of Paris had taken to the streets to march, and that the headquarters of the canal company in Paris had been surrounded by marchers many times, and it was no longer possible to work normally.
Our representatives have proposed to the Board of Directors of the Canal Company the relocation of the headquarters to Vienna to ensure that the office can be carried out normally, which is still under discussion. ”
The question of the relocation of the headquarters, Franz did not doubt. Historically, there are not one or two companies that have been forced away by the French people, and the companies cannot work normally, and they cannot move without moving.
As an investor, Franz did not want the French government to admit intimidation and interfere in the operation of the canal company.
Anyway, the reputation of the canal company is not in the scope of investors' consideration. Unless the government intervenes, the canal management will have to fight to the end.
The current situation is much better than it was in history. Everyone knows that the Suez Canal is a joint project between France and Austria, but the non-governmental newspapers have scolded it, and the governments of various countries have not expressed their opinions.
Politicians are not stupid, and now it is Britain, France and Austria that are engaged in a political game, and to show their attitude is to take sides diplomatically.
The British are indeed very bullish, but on the European continent France and Austria speak more weightily, and even the younger brother of the British now knows that silence is golden.
Franz thought for a moment and said, "Well, since the British broke the rules first, you're welcome."
Find an opportunity to sell the black history of Britain we have collected to the Canal Company. Let's get our hands on it at the Canal Company and push this counterattack. ”
It's not the best way, but it's the most effective. In this era of colonial empires, no one is much cleaner than others.
If the British can expose the black history of the Canal Company, then the Canal Company can naturally expose the black history of the British.
Anyway, behind the Suez Canal Company are France and Austria, and the British government is on the right side, so there is no need to coax it at all.
When everyone is pulled to the same level, public opinion is busy, and it will not continue to stare at the canal company.
News only attracts everyone's attention because it is new. When the turmoil passed, the management of the Canal Company announced that it would improve the labor conditions, such as adding one potato a day and buying a few newspapers to wash it.
This is a matter of policy, and the Canal Company cannot admit it at present. No matter what you do, it is unlikely to satisfy everyone, and it may even cause a bigger storm.
……
In West Africa, Carlos, a large plantation owner, welcomed an uninvited guest to his estate.
"Sir Carlos, we have come to buy cotton very sincerely. We can add another 10 percent to last year's cotton price. ”
Carlos smiled slightly and said, "It's a pity Mr. Max, I really didn't feel the sincerity you said.
With the outbreak of the American Civil War, this year's cotton production reduction is a foregone conclusion. Coupled with the blockade by the northern government, the question of how much cotton can be shipped out in the end is a problem.
Last year's cotton harvest was bumper, and the price was already low. Under so many favorable conditions, cotton prices will definitely be guaranteed.
As far as I know, the price of cotton in the London futures market has risen by 56 percent. ”
Max explained casually: "Sir Carlos, the price of cotton in the futures market is speculated.
You should know what a 56 percent increase in cotton prices means, and the market simply cannot afford this sky-high price. ”
This is a fact, the price of cotton has risen by 56 percent, and the cotton spinning industry is simply unacceptable. Otherwise, even if the cotton cloth is produced, it will not be sold in the end.
In this era, the market's ability to bear it is limited. Industrial cotton cloth can be popular, mainly because it is cheap. Suddenly, the price is increased by half, and the people simply cannot afford to consume it.
The two fell silent, and after a half-time the price was quoted by Sir Carlos: "Forty percent above last year's price, and I will sell you all my cotton this year." ”
Max shook his head and said, "Twelve percent on last year's price, which is already the highest price for cotton in nearly a decade." ”
Sir Carlos sneered: "As far as I know, it seems that the purchase price of cotton from the Felik Trading Company this year is also about to increase by twelve percent, if it is the same price, why should I sell it to you?" ”
Max quoted again: "Okay, I'll raise it by two more points, it's always okay, right?" ”
Sir Carlos shook his head: "Mr. Max, Felik Trading Co., Ltd. has been buying cotton in West Africa for a long time, and your Davel company has always bought cotton in the United States.
It's a good multiple-choice question, and I can't offend a long-time partner for a small profit, which is not something that plantation owners in all of West Africa do.
If you just want to buy a batch of cotton for emergencies, then I suggest you buy it directly from Felik Comptoir! ”
Max had a headache, which was the biggest trouble. It is precisely because the supply of cotton in the United States cannot be guaranteed this year that he is allowed to buy cotton in West Africa.
But there are people in the market here who have already done it, and they want to get involved, and there is no way to do it except raise the price.
As for buying from cotton merchants, it is strange not to be extorted. Originally, he wanted to make a time difference and fool the ill-informed plantation owners, but he failed at the beginning.
……
At the headquarters of the Darvel Cotton Acquisition Company in London, news of a failed rush to buy cotton from West Africa is being discussed.
Kenneth, head of purchasing, said: "It's clear now that news of the American Civil War has arrived. Unless we raise the price of cotton by a large margin, we will not be able to win against the Austrians.
You know, we buy cotton from West Africa, and we have to pay import and export duties, which is much more expensive than them.
If there is a price war now, even if you buy enough cotton, you may not be able to make money. ”
This is a real problem, and it is still unknown whether the cotton from the United States can be shipped back, which is related to the price of cotton next year.
If the northern government had blockaded the south, the price of cotton would have skyrocketed, and they, the merchants who hoarded cotton, would have to make a lot of money. On the contrary, it is necessary to consider how to sell the cotton in hand.
"Because of the civil war, U.S. cotton production has fallen by at least three layers this year, because the cotton harvest in war-torn India has been out of harvest for three consecutive years," said Marti, head of marketing.
Even if there is a bumper cotton harvest in West Africa, international cotton production is still on a downward trend on the whole, and the rise in cotton prices has become inevitable.
Now the day of the cotton harvest is not far away. If we want to grab enough cotton, we have to be fast. ”
……