Chapter 482 The Storm Dies Down
"Today I realized that you are simply a gentleman." Sheffield raised his hand to take the wine glass. The three people's glasses made a crisp sound when they touched each other. Why is the wine so sweet today? It is true that a free environment is different.
Sheffield cherishes the opportunity for harmony in the Morgan Building. After all, after this round, no one knows what will happen in the future. It is estimated that there will not be a second time in the next 20 years to save the market with unity and joy. As for 20 years later, who can guarantee that there will still be a response? The world changes so fast.
After all the calculations, Sheffield still feels that he has made a profit and does not regret the loss of some petty profits. If Wall Street bankers, especially Morgan, were allowed to become the Federal Reserve, and if there were conflicts in the future, his industry would be against Morgan, which would be like fighting a company that used external plug-ins, which would be very unfair.
If the opposite is still acceptable, the Federal Reserve has huge benefits. If you don’t have a share of it, it means there is no benefit and it should not exist.
From the moment the three of them stood together, the financial crisis was over. The effect was immediate. A large amount of funds were injected into the stock market, which strongly reversed the situation and the stock market closed up 2.4% that day. For a stock market that is two-thirds of yesterday's and two-thirds of the day before yesterday, a 2.4% increase can be considered the most recent surge.
Sheffield's first step was to repurchase the shares of listed companies in its own industry, which of course can be regarded as part of the rescue plan, but the first thing to save is itself. Saving high-quality assets, who dares to say that companies like United Fruit Company and Coca-Cola are not high-quality assets?
The trickle-down effect is such a good theory. Only when I am well fed can everyone be well fed. If big businesses are not well fed, how can small businesses benefit? The stabilization of the stock market is the first step to restore market confidence. The feeling brought by the cessation of the plunge is the most intuitive, especially in places like New York.
"In fact, the outbreak of this financial crisis is mainly due to the lack of a central bank." Seeing that the stock market has returned to stability, Morgan Jr. said this seemingly unintentionally.
"Oh?" Sheffield knew that Morgan Jr. had not given up the idea of establishing the Federal Reserve, but he pretended not to understand and replied, "Let the federal government establish a national bank? What will it be called this time? The Third Bank?"
"You misunderstood me, William!" Morgan Jr. said expressionlessly, "This kind of bank cannot be in the hands of any central government. If it appears, how can we monitor it? We don't know what it wants to do. Even if it wants to issue waste paper, should we continue?"
Sheffield nodded in ignorance. This is indeed a problem. Turning on the printing press to fill the banknotes harms the interests of everyone. Why did the Cannon Party collapse? It was because the printing press started to smoke, causing the economy to collapse.
In fact, this situation has occurred many times before. Historically, the Yuan Dynasty court had few advantages and its governance level was almost non-existent. Except for sending people to collect taxes once a year, the people usually did not feel the existence of the court.
However, the monetary policy of the Yuan Dynasty was one of the few bright spots. It tried its best to maintain the stability of paper money until its collapse. As for the later Ming Dynasty, its monetary policy could be said to be the worst. The court could use paper money to purchase supplies, but the people could not use paper money to exchange for money from the court. As a result, paper money quickly disappeared from the country. As soon as the Hongwu Dynasty was over, it was no longer recognized by the people. In the early Ming Dynasty, there were many old Yuan Dynasty veterans, which led to the Hongwu Emperor having to strictly order that everyone must serve when summoned.
The Hongwu Emperor of the Ming Dynasty was a famous ruthless man in history. Even if there were serious problems with the monetary policy, which led to complaints from the people, he could easily keep it under control. But if it was someone like the Cannon Party, the country would collapse immediately after doing so.
Private banks in the United States will not allow the central government to have a strong banking system. In this way, the authority of the federal government will be greatly increased. When it really comes to a last resort, the printing presses must be started and smoke will be produced. Everyone's interests will be harmed. A dollar in the hands of a citizen is one dollar, and it will not become two dollars in the hands of a banker. Once wealth is diluted, it will definitely affect everyone. It will not distinguish between bankers and ordinary citizens.
Everyone wants to have this kind of institution in their own hands, and if it can become a tool for them to fleece others, that is completely acceptable.
Sheffield knew what Morgan meant, but he still pretended to be a financial novice who didn't understand what he said, because he was also thinking about this problem. Morgan hoped that this tool for shearing sheep would be controlled by the system he led, but Sheffield didn't think so. Could it be that Morgan was handsome? The slave owner still thought that he was the most suitable person to hold the scissors.
But with the current strength of the financial system, the Morgan and Rockefeller families are stronger than themselves, so the Federal Reserve should not appear. Besides, how bad is the reputation of bankers now? It is better to whitewash yourself first and then think about this matter.
"In fact, we can establish a federal bank based on each state. This will take care of state rights. Wouldn't it be great if rights belong to each state?" Sheffield made it clear as soon as he opened his mouth that Morgan Jr.'s indirect attack this time was a complete failure.
Sheffield is a Texan. From the perspective of population and area, he is not inferior to any state. Moreover, he can strengthen the power of the state government. Can he check and balance the federal government? At first he was just talking nonsense, but as soon as he said it, the slave owners felt that his idea made so much sense.
This is equivalent to two people talking about cats, Morgan said lions, Sheffield said tigers. They both look like big cats, but they are actually very different.
Unlike the general republics we are familiar with, the United States is not a republic, but a united states. To be more specific, at the beginning, it was just a confederation of thirteen independent states. Strictly speaking, the states of the United States should not be called states, this is just a habitual translation error. Strictly speaking, the states of the United States should be translated as "states". The struggle between state rights and federal power has continued to exist until the 21st century.
Sheffield, who was born in Texas, has the most say on state rights. Hasn't he seen the Southern Cross flag of the Confederacy still flying high? The Lone Star Republic can become independent at any time. This is a fundamental fact that every citizen born in Texas should know from the beginning of their education.
If a Texan does not put the rights of Texas above the federal government, he does not deserve to be called a Texan. Being able to be independent at any time is a basic right of Texas citizens. The history textbooks that the United Company prints for public colleges every year for free are white-haired. Only history textbooks are printed for free, but this has fully demonstrated the conscience of the United Company.
During the half month when banks were closed nationwide, the three major companies were fully operational. Sheffield also established its own financial institution, the United Trust Company, and invited people like Morse, Heinze and Barney to join the trust company. As for the United Bank, Blair was still in charge.
In this way, these direct witnesses of the financial crisis were recruited by Sheffield. When it comes to mergers and acquisitions, slave owners have always been willing not to kill off others, but to make money together.
For the few people who are close to bankruptcy, this is the best possible outcome. However, for the countless bankrupt depositors in the country, this outcome seems a little unfair. It’s not just that it seems, but it is very unfair.
Maybe this is life. Sometimes things like this happen. There are not so many fair things. Didn’t the Red Alliance that often called for equality eventually disintegrate? This is a free United States. Ordinary citizens and slave owners have the right to express freedom, but compared with ordinary citizens, the right to speak is in the hands of slave owners, so this kind of opposition voice can be ignored.
"Dear gentlemen, this storm is over for you. Congratulations on not having to find a balcony to end your life like many others. Of course, this is not absolute. If it is more in line with national conditions, congratulations on not having to shoot yourself in the head." At the former headquarters of Knickerbocker Trust Company, now the headquarters of United Trust Company, Sheffield raised his glass with an arrogant attitude, "There is still a long way to go in life, and temporary setbacks are nothing."
Heinze and Morse both came with their families. It must be said that Morse's daughter was a very beautiful girl. Of course, Sheffield had no intention of disrespecting her and just praised her a few words.
If Morse knew that Sheffield had just looked at his daughter a few more times, he might have decided to let his daughter marry him. It was a pity that such a great opportunity slipped away.
For these upper-class people who should have fallen from grace and whose wives and children fell to the bottom of society, this experience is enough to be remembered. From this perspective, sacrificing their daughter's body is not a big deal. If they really go bankrupt, who knows which poor guy will benefit from it.
For them, this crisis is over, but for most citizens of this country, the crisis has just begun. The three major companies joined forces to rescue the market, but they only pulled the economy out of free fall. It is impossible to restore it to the previous state. This is not a game. How could the losses in the stock market and banks not have some impact on the national economy?
After this period of free fall, the national economy will enter a slow recession and it will take at least one or two years to recover, but compared with the thrilling period, it is like living in heaven.
(End of this chapter)
Continue read on readnovelmtl.com
