Chapter 282: Bond

"My Majesty, our 50 million pound bond issued in London has been sold out."
It is too smooth, or the British have too much surplus capital. Dominating over half of the international trade market, the British have accumulated too much capital.
The domestic market cannot be digested, so naturally it can only face overseas. However, there are also thresholds in overseas markets. Not everyone is qualified to play. Those with insufficient strength can only invest in stocks and bonds.
The construction bonds issued by the Vienna government are high-quality assets, and they are naturally popular with small capitalists and the middle class.
Fifty million pounds sold out in less than a week. This rate is completely snapped up. You must know that the annual interest rate of this bond is only 6.5%, which is not too high.
Of course, this is not the final cost of issuing bonds, but also has to pay bond handling fees, publicity fees, printing fees, and exchange fees when the money is in hand.
Franz asked with concern: "What about Paris and the country?"
Since it is a bond issue, it is naturally impossible to target only the London financial market. Paris, Vienna and Frankfurt are also European financial centers. How can Franz ignore it?
Chancellor of the Exchequer Carl replied: "650 million francs have been sold out in Paris, and the remaining is expected to be sold short within one month; 94.8 million Aegis has been sold in the country and is expected to be sold short within two months.
(1 pound ≈ 2 Aegis ≈ 25 francs ≈ 7.32 grams of gold)
Franz asked in amazement: "How powerful is the financial market in Vienna?"
Doing a full set of dramas, since the capitalists are going to jump, the Vienna government must also have real money. The capitalists are not fools. They are all masters who don't see rabbits and eagles.
To this end, the Vienna government issued 350 million Aegis construction bonds to the outside world, and guaranteed that the money will be used exclusively for domestic infrastructure construction.
Among them, 100 million Aegis bonds were issued to London, 80 million Aegis bonds were issued to Paris, and the remaining 170 million Aegis bonds were issued in Frankfurt and Vienna, respectively.
According to Franz's estimation, with the carrying capacity of the domestic financial market, the construction crisis has not yet been digested, and the economic crisis has erupted.
If private funds buy bonds, then the funds flowing into the stock market will decrease, and the funds flowing into the real economy will also decrease.
After the outbreak of the economic crisis, everyone's losses can be minimized, and the number of people jumping from the building should be reduced a lot to save their energy as much as possible.
Karl explained: "Her Majesty, Frankfurt has a strong influence in Central Europe, attracting investors from the German Federal Empire, Switzerland, Belgium and the Kingdom of Prussia, and the bond sales have surpassed Vienna."
After a moment of contemplation, Franz suddenly understood. Under normal circumstances, Frankfurt cannot compare with Vienna, even if it attracts surrounding capital.
However, the capital consortium in Frankfurt has this strength. They can completely buy the bonds themselves and then sell them slowly.
In addition to showing their goodwill to the government, they also meant to show their strength to the Vienna government in order to gain a higher political status.
Meaning Franz read it, and naturally knew that it would be rewarded. Frankly speaking, if Vienna is not the capital and has too many resources, it also brings together a large group of rich people, otherwise Frankfurt will not be able to compete at all.
Since modern times, Frankfurt has been the financial center of the German region. In another spacetime, by the 21st century, Germany's largest financial center is Frankfurt.
Fortunately, Frankfurt is a free city. It has no economic strength, but it is not possible to grow, otherwise Franz will have a headache.
Franz thought for a while and said, "Another Frankfurt is added to the Navy's new shipbuilding plan."
"Yes, Your Majesty!" Navy Secretary Philcos replied with joy.
Franz himself said that the added nature could not be a sailing ship. Now only everyone should pay attention to the iron armored ship.
As a land power country, the navy's military budget is naturally limited. Even if it dominates this naval technological revolution, the Vienna government has no plans to expand the navy.
The Admiralty repeatedly fought, and finally got the budget of two iron armored ships. This is not a year, but a three-year shipbuilding budget.
One was the Empire, or the "New Holy Roman Empire," and the other was the Vienna.
There are no faults, and they are full of strong political color. At this time, the addition of a Frankfurt was undoubtedly the importance of Frankfurt in the empire.
This is Franz's affirmation of the Frankfurt capitalists' goodwill. If other state governments are willing to sell to the central government, he does not mind adding more ironclad ships.
To put it plainly, an iron armored ship also has hundreds of thousands of Aegis, and the quantity is favorably. The cost of the first "Frederik" was 800,000 Aegis. Now the second batch of improved warships has seen a slight increase in performance, but the cost has decreased.
This is mainly due to early research and development, testing of new technologies and increasing shipbuilding expenses. Now when two iron armored ships are started at one time, the unit price has dropped to 580,000 Aegis. If three units are started, the unit price will continue to fall.
The number of states in the new Holy Roman Empire is not large. Even if each state names a ship, it will only increase the cost of two or three million Aegis, which is completely within the tolerance range.
The real burning of the navy's money began in the era of the fearless ship. A battleship moved several million Aegis.
Moreover, military expenditures are not borne by one Austrian state. All states must be apportioned according to their respective fiscal revenue.
Franz said solemnly: "Since the funds raised have been obtained, the bidders are urged to start construction as soon as possible, and all projects are carried out in accordance with the contract.
The Ministry of Finance and local governments cooperate with each other, and the Anti-Corruption Bureau closely monitors, and absolutely does not allow any violation of regulations and discipline. "
It is necessary to start construction, otherwise the economic crisis broke out, and the winning bidders acknowledged it and gave up the deposit to leave, which would be embarrassing. It was said that others did not say: The Vienna government cheated everyone's security deposit.
In order to avoid this terrible result, Franz has to start everyone, and so many small projects are also indispensable. These small projects may be completed in a few months.
It will be settled after completion. As long as the money is obtained, no one can say that the Vienna government is cheating on the security deposit.
Because of the outbreak of the economic crisis and the breaking of the capital chain, no big project can be completed, which is the responsibility of the successful bidder. Without the strength to mess up projects, it also needs to pay a price.
"Yes, Your Majesty!"
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