Chapter 461: Conspiracy of the Vested Interests
"Let me think about when there will be another chance to benefit!" Sheffield was still thinking about when and with what kind of face to show up. After Blair proposed the interest rate cut policy, he would definitely be attacked a lot. How and when to maintain it were all matters of concern.
Although I have thought about it a thousand times in my mind how to benefit from this financial crisis, there is always a gap between imagination and reality. How to get the benefits is still a very difficult problem, and when to end it is still a very difficult problem.
"It's John's call!" Edith Rockefeller answered the phone and said to Sheffield while covering the receiver. "It's for you."
Edith Rockefeller took the microphone from behind and sat quietly listening to the conversation between the two. "It would be impossible for the manager of the Union Bank to make a statement at this time without your instruction. I didn't expect that you also sensed it in advance."
"Not as early as you!" Sheffield smiled and said cynically, "I was actually a little surprised at the time. How could two speculators, Heinze and Morse, set their sights on the copper mine? Now it seems that they must have received tacit approval or even instigation from some people. Dear John, who can give them such great confidence, if not Morgan, then who do you think it was?"
There was silence on the other end of the microphone, and then Rockefeller Jr. said, "It was me, but I didn't encourage it. They should blame themselves for what happened today. And I know your strength, and you will not let their speculation succeed. But now it seems that you want more than just teaching them a lesson."
"Thank you for thinking so highly of me, John!" Glancing at Edith Rockefeller's sad face, Sheffield put his free hand on Edith Rockefeller's leg and rubbed it, signaling her not to be nervous. He kept saying, "I agree with Blair's call for a rate cut. When it comes to protecting my employees, I will not listen to anyone's advice."
"I just wanted to teach these two speculators a lesson, but now it seems that things have gotten out of hand." Rockefeller Jr. did not expect that just fooling two speculators seemed to have an impact beyond the bankruptcy of a company.
"Economic prosperity or economic crisis, has no major impact on a company like ours. As for those individuals and groups that are not strong enough, they should be eliminated. Survival of the fittest is an unchanging truth. I will not sympathize with them, so I can accept any outcome of this turmoil." Sheffield had no intention of stopping from beginning to end, but just used these words to fool Rockefeller Jr.
"What is your purpose?" This is the question asked by Rockefeller Jr.
Sheffield's answer to this question was, "The current situation is unclear and no one knows where to go next. Don't you think it's too early to talk about the goal? Business owners certainly have much more information than citizens, but they are not prophets!" What he said really makes sense, he could go to work in the Ministry of Foreign Affairs.
No matter what Rockefeller Jr. asked, Sheffield kept repeating the same old questions over and over again, and finally the head of Standard Oil realized that it was impossible to get any information from the slave owners.
Finally, the helpless young Rockefeller decided to talk to his sister Edith Rockefeller. This was of course possible. Sheffield and Edith Rockefeller switched positions, and when Edith Rockefeller answered the phone, he lay down directly with his head resting on Edith Rockefeller's thigh, full of the unique temperament of lying flat.
Edith Rockefeller chatted for a few words and then put down the phone. She lowered her head and whispered, "Are you blaming John? He just wanted to teach the two speculators a lesson. The two speculators are upstarts in New York and don't respect some big companies. At least John just wanted to teach them a lesson. As for knowing that the two were interested in the copper mine, he took a tacit attitude, mainly because the United Company was strong in the mining industry and would not be affected by speculation."
Edith Rockefeller explained what Rockefeller Jr. had said, and then looked at the slave owner's reaction. Considering the relationship between United Oil and Standard Oil, concealing this matter was indeed a bit too much. Edith Rockefeller was even prepared to be beaten by the slave owner, as long as he was not angry.
"I don't believe a word he said, but since you're relaying it, I'll take it as the truth." Sheffield remained lying flat, smiling coldly and comforting, "Edith, there's actually nothing to explain. Just like John said, although I was taken advantage of, the two speculators never had the chance to beat me from beginning to end. Because of you, the relationship between United Oil and Standard Oil is generally harmonious, but we both have to be responsible for our own companies, so from each other's perspective, I can understand this concealment, so I'm not angry."
Edith Rockefeller listened to Sheffield's words with tears welling up in her eyes. She lowered her head and kissed the slave owner who hadn't spoken yet. Her hair blocked their faces and only the sound of kissing could be heard.
Forget about the relationship between United Oil and Standard Oil. The relationship between the United States and Japan in later generations was enough to be an ally. When the Diamond Princess incident happened, the United States forced Japan to dock the Diamond Princess, but in fact it was a United States ship, leaving all the risks and testing to Japan, and only bringing back citizens who were not infected.
The Japanese response was also very clear. It didn't matter that the form was stronger than the people, and they couldn't oppose it openly, so they were perfunctory in testing until the United States took the people away. They went through the normal procedures and told the citizens brought back by the United States that several test reports had come out and there were still infected people in them.
Even with the huge disparity in national power between the two countries, they were still able to trip each other up, not to mention that United Oil and Standard Oil were both powerful companies. So this matter was very normal. Sheffield did not mean to blame Rockefeller Jr. The slave owner said from the bottom of his heart that it was natural for him to be responsible for himself.
This made Edith Rockefeller feel guilty, and the slave owner had to comfort her, "Can such a large enterprise be influenced by personal feelings? I wouldn't do that either."
These are all routine operations and nothing special, just like Spain later declared a state of emergency across the country, but it would not be officially implemented until two days later. It meant using a loudspeaker to say that citizens were given two days to escape. The direct consequence was that citizens who felt unsafe in the country would quickly flee Spain, infecting other EU countries as well.
But will it be announced publicly? Absolutely not. Under the procedures of procedural justice, a decision was made to cheat others. What's so strange about this? Not to mention that Rockefeller Jr. claimed that it was unintentional. Even if he did it on purpose, Sheffield would not take it to heart, because he felt that there was nothing wrong with his company. Being cheated only meant that some companies did have problems.
Whether it was unintentional or not is no longer important now. Whether actively or passively, the two companies that concealed the truth from each other have been involved in this crisis. After three days of persistence, the Knickerbocker Trust and Investment Company finally succumbed to the surging bank run. Heinze and his partner could not stand it anymore, and they took separate actions, one to appease the depositors who were in the bank run, and the other to immediately seek help from the New York Clearing House.
Bankers in New York learned from the practice of the London Clearing House and established the New York Clearing House. The purpose of the New York Clearing House is to eliminate the cost of bilateral clearing and separate clearing between banks, and to improve clearing efficiency and reduce risks as the number of banks in New York City continues to increase. After the establishment of the New York Clearing Center, in addition to providing interbank clearing services, it also assumed the important functions of risk management and anti-crisis for the banking industry.
The New York Clearing House has demonstrated its ability to effectively control panic and has successfully resolved financial crises many times. Its anti-crisis mechanism is mainly divided into three steps: First, the clearing house usually requires its members to submit balance sheets regularly and publish them through the clearing house or state regulatory authorities.
Therefore, at the beginning of the financial crisis, clearing houses operating on a membership basis were able to conduct timely investigations, obtain asset and liability information of member banks, and use this to judge the solvency of member banks in distress and decide whether to provide assistance.
After confirming the rescue, the clearing house will organize its member banks to cooperate, uniformly allocate the reserves of each bank, and provide loan rescue for the distressed bank. If the reserves of the clearing house are not enough to cope with the crisis, the clearing house will issue a clearing house loan certificate, which will circulate among the member banks as a temporary emergency currency. The loan certificate of the New York Clearing House is a temporary letter of credit. The borrower and lender of the loan certificate must pay interest and repay it in a short period of time. If overdue, they will be fined with high interest. The clearing house acts as an intermediary and guarantees that the borrower will repay on time.
But this time Heinze and Morse's expectations were dashed. Rockefeller Jr. had already informed the bankers of the New York Clearing House and prevented the Clearing House from providing assistance to the two men on the grounds that the bank run crisis of the Knickerbocker Trust and Investment Company had spread to other banks. To put it clearly, the member banks of the Clearing House did not want to continue to provide assistance.
The two speculators' requests for help had been strangled by Rockefeller Jr. at the source. Heinze had to continue to publicly announce, "The Knickerbocker Trust and Investment Company has no problem with its funds, and its own bank is also very healthy. I have not sold a single share of my stock, and I still control the Commercial National Bank. The current dire situation is caused by the actions of the Clearing House Committee. Instead of saying in their statement that the bank is fully solvent, they exaggerated its loan balance, thus triggering a run. This group of people actually hopes to attract depositors to their institutions."
With nowhere else to go, Heinze and Morse turned their attention to the New York Clearing House, believing that this was a conspiracy by the clearing house.
"This is all a conspiracy by the vested interests!" the two shouted loudly to the depositors who were running on their banks.
Damn, I typed the wrong chapter title yesterday, and thought about changing it today, but I ended up posting an even more outrageous wrong chapter. I'm so drunk.
(End of this chapter)
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