The turbulence in the stock market quickly spread to the entire society.
Before the curtain opened, the capitalists artificially created a hot market in order to transfer their losses. Now, there was no need for that.
After the window paper was pierced, the companies laid off their employees and reduced their production. The economic crisis had not yet begun, but the unemployment wave had already arrived.
The news that was originally covered up no longer needed to be hidden. At this time, everyone suddenly realized that the so-called benefits were completely fabricated.
The so-called purchase orders did exist, but the ones who signed the contracts were not the Russian government or the Government of the United Kingdom, but the newly established shell companies.
Since they were shell companies, they naturally did not represent the government's position. The so-called commissioned purchase couldn't be any more fake.
Frankly speaking, this game wasn't that brilliant. Perhaps in other countries, the government may entrust the company to purchase, but in the Russian Empire, it would never exist.
The Tsarist government had the most annoying bureaucratic team. How could such hard work be outsourced?
The procurement department, known as the most honest in the Russian Empire, would never tolerate middlemen making a profit and wasting the country's wealth.
Before the crisis, they were able to unite many capitalists to act together, control the mainstream public opinion, and artificially create a market boom. All these proved the power of the French consortium.
Fidoren Machinery Factory, as a rising star in the French manufacturing industry, was founded in 1867, and had now become the leading company in French machinery and equipment.
Industrial technology needed time to settle. To be able to stand out from the many competitors in just 20 years, the founder, Baron Fidoren, deserved a lot of credit.
Sir Feidolon, who should have made a name for himself, was smoking a cigar in his mouth and puffing out clouds of smoke.
The secretary reported in a low voice, "Sir Baron, according to the latest statistics, 18 companies, including Sade Textile Factory, Eidolon Cannery Factory, and Ellenburg Textile Factory, have requested to return the goods.
The total value of these returned goods is about 30 million francs, of which there is a balance of about 6.57 million francs that we have yet to receive.
In addition, there are 27 companies that have not delivered the machinery and equipment, and they have directly announced that they will not pay the follow-up fees.
We have already arranged the production of these machinery and equipment last year, and it is too late to stop now.
If we can't find a new buyer, the initial estimate is that our losses will be as high as 54 million francs. The forfeiture can be used to pay about 14 million francs, and the final loss will be around 40 million francs. "
Birds of a feather flock together. As a noble capitalist, Feidolon's relationship with the domestic capitalists was very ordinary.
Baron Philon had been excluded from the group's planned retreat, becoming one of the victims.
Fedoron Machinery Factory was engaged in the manufacturing of machinery and equipment, which belonged to the upstream industry. The main market was in China, and there were almost no international orders.
The old Baron Philon was obviously not sensitive enough to the changes in the international market. He did not foresee that there would be excess production during the war between England and Russia.
A momentary error in judgment had resulted in the current bitter consequences. Companies received a bunch of orders, but before they could complete the delivery, they received a breach of contract notice.
After pausing for a while, Baron Philon said fiercely, "Tell them that a refund is impossible.
As long as there is no problem with the quality of the product, we do not have a refund service. He also asked them to pay the rest of the money as soon as possible.
As for the orders that were breached, they would be held liable according to the contract.
Give the order to suspend the production of all the orders, and send someone to contact the remaining customers. After confirming that the orders can be successfully delivered, continue the production.
For the orders that were confirmed to be breached, transfer the other orders that can be transferred immediately. If it really can't be done, then dismantle the parts and use them!
At this juncture, we can't find a buyer at all. We have to cut our losses in time. "
Machinery and equipment were different from other products. Once it was produced, there would be maintenance costs. The longer it was kept in the hands of the company, the higher the cost the company had to pay.
Judging from the current situation, Baron Philon did not think that the market would recover in a short period of time.
Before the problem occurred, it might have been overlooked by the good things in the market. Now that the problem had erupted, Baron Philon naturally sensed a deeper reason.
The war between England and Russia did not consume as expected, and it was only the focus of the conflict that erupted. In essence, the cycle of capitalist economic development had arrived.
Based on past experience, overproduction would not only be a problem for France, but the entire capitalist world would not be able to escape.
In this day and age, there were only a few countries that were qualified to have an economic crisis. France's industrial production costs were higher than England and Austria's, so it was naturally at a disadvantage in international competition.
Now that there was a crisis, the first to fall was naturally the French companies. The French consortiums, who were determined to make a fortune from the war, became the earliest victims.
However, these guys reacted very quickly. Before the crisis erupted, they began to shift the risk, causing the shareholders to bear the brunt.
The crisis erupted so quickly, not because the consortiums were full, but mainly because the market was running out of money.
In the era of the gold standard, limited by the gold reserves, the circulation of francs was limited, and there was even less money in the market.
Harvesting leeks had to wait for the leeks to grow, and the initial benefits had already fooled the individual investors. Those who did not escape would not be able to do so.
Now that everyone was a shareholder from speculating in the stock market, if they did not harvest it now, once the news leaked, they would not be able to harvest it.
Based on his past experience and judgment, Baron Ferdinand could conclude that this crisis would last for one to two years if nothing unexpected happened.
When the crisis ended and the market began to recover, it would take even longer.
In this era of rapid change, no one knew when it would be time for machinery and equipment to be replaced.
Keeping a pile of machinery and equipment in hand was simply asking for death. Not only would they risk losing everything, but it would also deplete the company's precious cash flow.
It was equivalent to dismantling semi-finished equipment, and the company's losses could be as high as 50 to 60% of the production cost. If they continued to produce, they might lose several times the production cost.
The secretary reminded, "Sir Baron, in the contract we signed previously, there was an agreement to refund part of the money if the use is not satisfactory.
If … "
Baron Philon impatiently interrupted, "Don't care so much. If they are not satisfied, they can go to court to sue.
At this point, are we still afraid of a lawsuit? "
With a loss of tens of millions of francs, Philon's machinery factory, which was operating well, was directly brought into the gutter.
The calls from the bank had already made Baron Philon feel like he was about to collapse. The phone on the table that had its cable unplugged was the best portrayal of the situation.
Knock, knock, knock. Baron Philon said coldly, "Come in!"
A middle-aged man said in a low voice, "Sir Baron, the people from BNP Paribas are here. They are resting in the reception room."
As soon as he finished speaking, two middle-aged men in suits walked in.
The leader said, "Sorry, Baron Philon. We took the liberty of visiting this time, mainly for … "
Baron Philon directly interrupted, "I know what you are here for, but there is still a month before the bank loan is due.
If there are any problems, we can discuss it when the time comes, or contact the people from the public relations department. Please do not disturb my work now.
Thank you!
Fick, bring these two gentlemen to rest. "
Hearing Baron Philon's words, the middle-aged man from Fick immediately made an inviting gesture and said, "The two of you, please come with me."
The leader of the middle-aged men was unmoved, and said, "Baron Philon, you have misunderstood. We are here today to help you solve your problem, not to collect the loan in advance.
If it is convenient for you, please give us half an hour. The following conversation needs to be confidential. It is best if we communicate alone. "
Baron Philon was stunned …
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