Chapter 156: Capital inflow

The Vienna Stock Exchange was established in 1771. It was the largest stock trading center in Eastern Europe in this era, bringing together investors from all over Europe.
At 6 o'clock in the morning on June 11, 1850, the Vienna Stock Exchange was already crowded at this time.
It is natural that a big event can take place if investors can come in line early. Austria's largest railway company, the Austrian Federal Railway Operating Group, is listed here today.
After so long gestation, the concept of railway stocks has been heated up for a long time. Almost everyone thinks that this rising industry can bring them rich returns.
A middle-aged man in a Chinese suit got out of the carriage and watched the crowd queue cursing: "Damn, why are there so many people today, is it rushing to Gehscheißen!" (Eat shit)
His actions quickly aroused people's anger, and the young policeman who maintained order came over and said dissatisfied, "Sir, please pay attention to quality. This is a high-end place, and swear words are prohibited."
The man in Huafu shut up obediently. He knew that if he continued, he might come down with a crime of disrupting public security.
It usually does n’t matter, it ’s a big deal to go to the police station and scold a few swear words. It ’s not a big crime at all, and you have to pay a fine.
But today is not enough. New stocks have always been the favorite of investors, not to mention railway stocks with unlimited potential. If you miss today, you will no longer have to buy a price.
Seeing his response, the youth police left with satisfaction.
There are no big shots coming here, the real big shots go directly into the VIP trading room upstairs.
The most important thing in Vienna is the wealthy. Don't look at these humble police officers. Maybe it's the side branch of a noble family.
In fact, this point is clear in terms of temperament. Upstarts and nobles are incompatible with each other and can be distinguished at a glance.
Time passed by one minute and one second, and the door of the trading hall opened at eight o'clock on time. Although everyone was anxious, they did not rush in.
Rules are important here. Look at the police standing in a row in front of you. You don't want to be invited to the police station for tea. If the trading time is missed because of this, then only crying.
In this era, there was no Internet, no electronic display, and even electricity was not available. All transactions were performed manually.
Big blackboards, on which staff write data. Shareholders looked at the data above and decided whether to go to the dealer to register a transaction.
At this time, a manager of the stock exchange came out and shouted, "The Austrian Federal Railways Operation Group is listed on the Vienna Stock Exchange today. The company's total valuation is 100 million dongs.
A total of 3 million shares were issued to the public, accounting for 30% of the total share capital. The issue price per share was 10 dongs. It is planned to raise 30 million dongs of funds externally. Friends who are interested are welcome to come and snap up. "
His voice had just fallen, and then staff repeated it in the crowd, so that everyone could understand this information as much as possible.
There is no way, this year's communication is relying on roar, if the voice is not loud enough, really can not eat this bowl of rice.
...
The transaction has begun. Although it is said that three million shares are issued externally, there are definitely not so many shares in circulation on the stock exchange. Banks and stock companies have subscribed for some in advance.
This is also the most common way to raise the stock price. If the liquidity is too large and the market is saturated, even high-quality stocks will collapse.
Many people pay attention to the stock price, which is related to your investment. The stock price of the Austrian Federal Railway Operation Group will directly determine your earnings.
Even Franz attaches great importance to this listing. If the federal railway stocks skyrocket, then Austria's next major railway construction will not have to worry about it, and the capital market can solve the funding gap.
As long as the railway is repaired, the effectiveness of the railway company has nothing to do with Franz.
Can't run? It doesn't matter, the Austrian government doesn't mind taking the lead.
In a big deal, when a statute is issued, the railway company will be nationalized if it cannot guarantee normal operations. Anyway, railways that do not make money, that is, repurchase of scrap iron prices.
In this issue, the criteria for judging value between the government and enterprises are completely different.
For the government, railways do not make money, as long as convenient transportation will promote the development of other industries, the taxes paid by these industries are also profits.
There are also political and military gains, which must also be counted. This is why many railway lines in the later generations have suffered a total loss, and governments of various countries will still allocate funds to maintain the normal operation of the railway.
In the evening, Schönbrunn Palace
"Your Majesty, as of the close of this afternoon, the share price of the Austrian Federal Railways Operation Group has increased by 56%, and the closing price is 15.6 shields per share." John Stewart said excitedly
Undoubtedly, how can the money-making business such as the stock market, as Austria's most influential Royal Bank, not intervene?
For example, if the federal railway is listed, let alone say that the handling fee for the issuance of stocks is hundreds of thousands of shields. Although this big deal is jointly done by everyone, it is not a small number.
Of course, the commission is only a small income, and the real profit lies in being a dealer. The imperfect stock market management system in this era leaves more room for the dealer to operate.
The plate of the traditional industry in the financial market has long been divided up, and under normal circumstances, everyone will not venture out of bounds. Otherwise, you swept my plate today, and tomorrow I smashed your field. Make money.
Emerging industries are different. Now is the time for horse racing. Even the financial giants can't do anything in the face of a sudden kill.
Stewart is also mixed in the financial circle. Knowing this so-called rule, in fact, first look at the background, then the capital, and finally the ability.
There is definitely no way for Royal Bank's capital to compare with its peers. The trading ability is only for the newcomers and the old birds, but it can't stand the background.
In this case, everyone can only cooperate.
As the first trader, it was undoubtedly a bright spot when the stock price soared. Stewart was naturally excited.
Franz joked: "You have done a good job, and it looks like your year-end awards are down this year."
Once the management system is established, it cannot be frustrated. It is impossible for Franz to make random bonuses like that.
Now that rules and regulations are in place, they must be handled in accordance with regulations. What kind of performance is achieved, get as much return as possible.
In the short run, everyone is happy, but after a long time, you will find it easy to break the rules and difficult to re-establish the rules.
Not all projects make the same money. Some projects are laborious and labor-intensive, and no returns can be seen in the short term, but someone needs to do it?
The boss broke the rules, and the trouble to the management is undoubtedly huge, and some can't make up for it at all.
...
Railroad stocks skyrocketed, which has something to do with the global economy. Since the British economy broke out in 1847 and the European Revolution of 1848 detonated, the world economy has experienced recession to varying degrees.
By 1850, the world economy had emerged from the crisis and began to grow cyclically, while Austria's economic growth rate was still higher than the world economic growth rate.
The Austrian government launched a large railway program that attracted capital from all over Europe. The influx of hot money naturally caused the stock price to skyrocket.
Franz has always refused to come to these capitals. Money is not guilty. Who is his master?
Even if someone bought the shares of the railway company from the shareholders, he pretended not to see it, as long as he paid taxes to the government, these were legal acts.
At this time, the Austrian government did not have the idea of ​​excluding foreign capital. At the critical moment of industrialization, a large amount of capital was needed.
Using only local capital, who knows when industrialization was completed that year? It is impossible for Franz to refuse to use foreign capital to speed up this progress.
Just think about how the British invested in the construction of American railways, and they repaired more than 30,000 kilometers from 1848 to 1858. In the end, it was a complete mess.
We must know that in this era, only two-thirds of the population of Austria was in the United States, and the population was so scarce that the population was scarce. From the perspective of investment science, Austrian railways are obviously more economically valuable.
It was not surprising to be able to divert some of the funds, but Franz still underestimated the extent of the British capital surplus.
As the earliest industrialized country, the British took advantage of this time difference to make a lot of profits from the world, and these profits were turned into cash pouring into the UK.
The extra money is always used. The British colonial expansion is still in progress. Rebellions from time to time have occurred everywhere, and the risk of investing in colonies is too great.
The money was looking for markets all over the world. Against this background, the Austrian government's large railway plan attracted their attention.
Just a little analysis, you will find that Austria's population density is ten times greater than that of the United States. Since the Austrian government completed the reform, the domestic economic development speed has taken the fast track.
British capitalists have not let go of the United States, far from the other side of the ocean. Naturally, Austria from Europe should not let it go.
A lot of hot money poured in, and the money didn't just flow to the railway industry. The agricultural processing industry and manufacturing industry supported by the government have all been favored by capital.
By the second half of 1850, the Austrian economy had experienced an explosive growth, with almost all industries growing savagely.
In this era, the government rarely intervened directly in the market, and everyone still has no such awareness.
Franz knows that such economic development is very unhealthy. If it is not restricted, Austria will have an economic crisis due to overcapacity in a few years.
Should we limit it? At this moment Franz hesitated, the losses caused by the economic crisis were heavy, but the explosive economic growth also promoted the great development of Austrian industry and increased Austria's national strength.
This is also a wild wave in the popular name. In a short period of time, crazy expansion of production capacity will occur. After the development reaches its limit, an economic crisis will occur.
After hesitating again and again, Franz decided to wait and see. Anyway, this started to erupt. Is it too early to overcapacity?
The world economic crisis has just passed and will not erupt again in a short time. Since the danger is not yet here, it is too late for the government to intervene before the limit is reached.
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