Chapter 452: Bankrupt

No money is always the most painful thing, especially because there are a lot of people pointing to eat, and it is urgent to solve the financial crisis.
Winter Palace in St. Petersburg
The new Chancellor of the Exchequer Yevgenkis reported in tears: "Your Majesty, this is the most recent month's expenditure report. If no measures are taken, we will go bankrupt for up to three months.
It is not the first time that the tsarist government has suffered financial failure. If it is normal, bankruptcy will be fine, and the big deal will be announced.
The problem now is that the newly-developed wasteland campaign cannot stop, otherwise tens of millions of people will be hungry. By that time, not only will the reforms be destroyed, but even the Tsar Empire may collapse.
After taking a glance at the report, Alexander II was left aside and got up and wandered in the room.
The plan will never change quickly, and the actual number of people involved in the reclamation is far more than expected by the Tsarist government. There are many people with great strength and large expenses.
After hesitating for a long time, Alexander II asked, "If we suspend international debt payments from now on, can we survive the crisis?"
Laying accounts is not an option, but the problem is that the Tsarist government really has no money. The Tsarist government has tried both international loans and bonds.
No one wants to lend money to poor ghosts, and even if the Russians can take out collateral, everyone is worried that they will not fulfill their promises.
Due to the war, some fertile soil in Eastern Europe was lost, and the tsarist government's fiscal revenue also shrank sharply.
If it weren't for a copy in the home, the Tsarist government would have gone bankrupt. The war was costly and the reform was also a swallow of gold, leaving little room for Alexander II to choose.
Chancellor of the Exchequer Yevgenkis thought for a while and replied: "If some projects are suspended and the wasteland movement is fully guaranteed, it should not be a problem."
It's time to do a multiple choice question, and after a loss of inconvenience, Alexander II made an ambitious Russian railway plan.
The entire line is up to 150,000 kilometers. Once this plan is completed, Russian Eastern Europe will be connected in series, and Prussia and Poland can almost be declared dead.
Alexander II made a decisive decision: "Okay, then do that!"
The problem of development lags behind, and it is important to solve the problem at hand. On the face of it, it is a good thing that the land reclamation has increased the amount of land and allowed farmers to have land.
In fact, there are still many hidden dangers. The biggest problem is that there will inevitably be too much grain production in the future. Everyone knows the reason that Gu Chi hurts farmers.
Perhaps for a capitalist economy, increased food production is a good thing, as it can reduce the cost of feeding workers.
Then, for farmers and nobles, it was a disaster. Many aristocrats are dragging their hind legs, the main reason is that they fear that their own interests will be damaged in the future.
The Russian Empire was originally a big grain exporter. If it continues to increase production capacity, it will certainly not be consumed internally, and exports will become the only option.
From the beginning, the Tsarist government was ready to bring down European food prices. Countries can dump industrial products against them, and they can also dump agricultural products against them.
It would be better if there was a monopoly on continental European food supplies. To do this, we must first allow food for the Russian Empire to be shipped out.
The railway is an indispensable link. If traffic problems cannot be solved, the plan will always stay on paper.
No one opposed the plan of Alexander II, and it was more important to overcome the immediate problem than the great plan.
As long as the first year has passed, the output on the land can guarantee the basic life of the people, then the latter will be resolved.
In this era, the Russian peasants were very supportive and had just changed from serfs to free people. As long as they could fill their stomachs, they would not dare to have anything else.
As long as the most critical moment is passed, the later problems will be easy to handle.
On July 7, 1869, the Tsarist government issued a note to the major creditors, announcing that the Russian Empire was financially bankrupt and unable to continue to perform its debts.
The European world is in an uproar. In recent years, there have been no European countries that ran into debts, which has given the public an illusion that the government's moral integrity has improved.
The Russians have now broken everyone's illusions. It is a good financial situation for everyone, and it is not time for them.
If you really run out of money, you have to rely on accounts. Anyway, I do n’t want the money, or I do n’t want to give it. The rest is up to you!
Except for the creditors, the European people have turned into melon-eating crowds and set their sights on Vienna.
Some recent developments in Austria are very good and naturally make many people jealous. As Russia's biggest creditor, many people are watching Austrian jokes now.
You know, the Russians now pay the principal and interest of 30.684 million shields per month, which is 3,682.08 million shields per year.
This astronomical figure is enough to destroy the Russian-Austrian alliance. No matter how good a relationship is, it can't withstand the destruction of interests.
Franz was not as scared as he had imagined. He had already prepared the Russians to settle accounts when he refused to provide loans to the Tsarist government.
No, it should be said that this idea was prepared earlier. After all, the financial situation of the Tsarist government has not been embarrassing, and it is not easy to support it until now.
No matter how well prepared, the aftercare work must be done. Most of these loans are guaranteed by the Vienna government, otherwise few banks dare to take orders.
In addition to the problems, the Vienna government also needs to take responsibility. Fortunately, the vast majority of loans are secured, and now the job of the Vienna government is to urge the Russians to implement the collateral.
Prime Minister Felix frowned and reported: "Your Majesty, we have made a preliminary estimate of the contract that was signed. Even if the Russians have fulfilled the mortgage, we will have to bear 38 million Aegis compensation within 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 finances, let them postpone the repayment, and the tsarist government cannot continue to go bankrupt. "
Franz nodded, others' debts could be ignored, and his own account would always be recovered. Even if there is no money, the tsarist government must be allowed to acknowledg the account first, otherwise it will be difficult for the Vienna government to explain to the people.
"The Ministry of Foreign Affairs communicated with the Russians and urged them to fulfill their contracts. They were unable to pay their debts and could defer payment."
It is the uncle who owes money. The current tsarist government is this uncle.
It is impossible to collect debts by force. At this point, the money is not enough for military expenditure. Unlike Mexico, which is so good at bullying, fur bears still have strength.
The fact that the Tsarist government has no money does not mean that the Tsarist nobles have no money. The accumulation of hundreds of years can no longer support a war.
The aristocracy and the tsarist government are all damaged and all prosperous. When foreign enemies invade, they will soon be close to one another.
Russians have many creditors. Based on the principle of bullying and fearing hardships, it is estimated that the debts of small countries will be owed, and the debts of large countries are generally deferred.
The deferred debts are also divided into three or six grades. The guarantees guaranteed by governments of various countries must be repaid first. Non-governmental commercial loans that are not guaranteed by the government are mostly relied on, and delayed if not.
After picking, the Russians reduced their foreign debt by at least 400 million Aegis this time. If the Tsarist government is tough enough, there may be more.
Franz was pleased that the Russians had already had seventy-eight thousand eighty-eight foreign debts in the Middle East War. Not to mention interest income, at least the principal was taken back.
The debt in the Prussian war cannot be said to have been taken back. The banks with the strongest business capabilities also recovered at most 30-40% of the costs.
The Austrian government has no losses, and most of the loans are subject to additional conditions. Through the trade between the two countries over the years, economic development has been promoted, and the increased taxes are sufficient to make up for the losses.
Financial institutions are not the same. If a guarantee is provided by the Vienna government, it will be easy to handle, even if the Russians lie on their books, and the Vienna government is responsible for ensuring the security of the principal.
Without a secured commercial loan, that's a big deal. Financial institutions are responsible for such loans.
Philip Potter is such a bad guy, he is not a banker, just the owner of a securities company.
Because of the high rebate given by the Russians, he sold a batch of bonds on behalf of the Tsarist government. Now the Russians have declared financial bankruptcy. According to Austrian law, his securities company will bear joint and several liabilities.
A middle-aged fat man hurried to say, "Mr. Philip Potter, the news that the Russians have declared bankruptcy must have spread. Now the people outside require us to pay the bonds in advance."
In this era, Austria's securities management system can be described as rude. Securities companies must issue bonds on behalf of the people and must be responsible for the people who buy them.
Simply put, the right to review bonds is in the hands of securities companies. This is not just a good thing. Now that we have the right to review, we must also bear the corresponding responsibilities.
For example: to ensure that bonds can be dealt with normally, to explain the risks to the people who bought the bonds in advance, and if there is a case of debt reliance, the securities company needs to bear certain compensation liabilities.
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 solicit business.
None of Austria's claimed capital-protected securities companies is one of two, and Philippot's securities company happens to be one of them.
According to the promise, now that the Russians are on their books and unable to pay the bonds normally, Philippot's securities company will pay the principal on their behalf.
The promises you give yourself must be fulfilled. Philip Potter now regrets it, the Russians give up to 15%, which is not normal at first, but unfortunately did not resist the temptation.
Philip Potter asked with concern: "Berge, how much money do we have in our accounts?"
It's impossible to run, and the police have followed him. If he ran, Austria would be arrested if he couldn't figure it out.
Finding ways to deal with the aftermath is king. Losing money is a must. Now these bonds are obviously impossible to sell at par, but after discounts, there may be people who dare to take orders.
After all, this is a treasury bond issued by the Tsarist government. Even if the bankruptcy fails to pay it now, in the future the Russians may still repurchase if they want to rebuild their credibility.
Ordinary people don't see that far, or wait that long.
Berger thought for a while and said, "A total of 38.946 million Aegis on the account, but after deducting the operating expenses of the securities company, only 3.356 million Aegis can be used.
Mr. Philip Potter, there are many people asking for payment in advance, I am afraid this money is not enough to pay. "
Philip sighed and said, "I know, send someone out to appease the people first and tell them we agree to pay in advance according to the contract.
I remember that there was an agreement in the original sales contract. When the force majeure caused the bonds to be unable to be properly dealt with, we were indeed responsible.
However, this time of responsibility is after the bond expires. Now they require early payment, which is a breach of contract. They need to bear 20% of the liquidated damages. We only need to pay 80% of the principal.
The news was released. After three days, we started to pay the bonds in advance, only opened a window, increased the review steps, and delayed the time as much as possible.
I'm going to check the news and see if things turn around. With such a big thing happening, it is impossible for the Vienna government to remain unresponsive.
Rest assured, this thing will not hit us. We have issued more than 8 million Russian bonds. It is impossible for all people to demand early payment, right?
You can also inquire and see if anyone in the market buys Russian bonds. Even if we make a half-fold, we may accept it. "
The profits of securities companies have always been very rich. When he founded this company ten years ago, Philip Potter had invested less than 300,000 Aegis, and the current liquidity is more than ten times this number.
In recent years, the profit dividends he has drawn from securities companies have also exceeded millions of SHIELDs. This crisis has caused him a lot of losses, but as long as he handles them properly, there is hope for the crisis.
Philip Potter had to be thankful that the Russians themselves had a bad reputation and their bonds were unpopular in the market. Otherwise, if he sold tens of millions of SHIELD at one time, he would have to jump to the rooftop.
Of course, if he can sell tens of millions of SHIELD, he will not be able to do this business.
Austrian law is not a child's play. Governments will interfere in the issuance of bonds that exceed their carrying capacity.
Otherwise, register a purse securities company, issue bonds in the market to collect money, donate to run after the sale, and declare bankruptcy. Isn't it possible to quickly get rich?
Obviously, this way of getting rich overnight is clearly written in law and astronomy.
Unlike other companies, securities companies' bankruptcy is the most stringent. Both management and shareholders are subject to scrutiny, and unless all operate strictly in accordance with regulations, basically no one can run away.
Strictly speaking, the bond issued by Philip Potter for the Russians was even a side ball.
Naturally, there is no problem if nothing happens. If something happens now, if the police don't do the repair work as soon as possible, he will probably go to jail when the police get involved.
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