Chapter 605

After the conclusion of the Austrian Agricultural Economic Conference, the Government of Vienna announced to the outside world that part of the strategic grain reserve would be replaced before the new grain harvest.

This happened almost every year, but it was usually bought when the international grain price was low and sold when the price was high.

This time was obviously an exception. Although no one knew how much grain the Government of Vienna was going to sell, the international grain market was still in turmoil.

Compared to the beginning of the year, the international grain price had fallen by 9%. Now, due to the impact of the Government of Vienna, the price of grain suddenly plummeted by 4%.

The capitalists couldn't hold on any longer. The Anglo-Russian deal had made them lose a lot, and now Austria was adding another knife.

Fortunately, the Government of Vienna announced a replacement, not a simple sale. Otherwise, the impact would be more severe.

In the London grain market, a middle-aged man dressed in fine clothes was learning about the market price as usual.

The middle-aged man was called James, a small capitalist who owned a flour mill. Since the signing of the Anglo-Russian grain agreement, he panicked.

Before Russia's cheap grain could enter the market, the shares were divided by the capitalists. By the time James reacted, it was already too late.

Of course, it was useless no matter how fast he reacted. He wasn't qualified to share this fat meat. Originally, James wanted to buy local wheat for processing, but now he couldn't.

Domestic wheat wasn't so cheap. If he lowered the purchase price, he would probably be kicked out.

In order to find a cheap source of grain, James turned his attention to the grain market. Affected by the international grain price, the grain price here had fallen much more.

Suddenly, James saw Austrian wheat on the billboard, and he immediately stopped. One had to know that in the last decade or so, Austrian wheat had rarely appeared in the international market. What appeared in the market were processed flour.

"Raul, what's wrong with this batch of grain? Why is the price so low? I remember that Austria doesn't export wheat to the outside world. Is this a smuggled goods? "

James asked half-jokingly. It was no wonder he was surprised. The main reason was that the price was so low that it was beyond James' imagination.

"Mr. James, you really know how to joke. If we really want to smuggle, we won't smuggle grain! This kind of bulk commodity is inconvenient to transport, and the tax rate is low. There is no need to take risks. "

James ignored Raul's joke. He grabbed a handful of wheat and looked at it. His initial judgment was that it was old grain, but that was not the reason for the low price.

"Stop talking nonsense. Tell me, what's wrong with this batch of grain? Don't tell me that it's our turn to take advantage of this! "

Raul smiled indifferently and took out a newspaper and handed it to James.

"Mr. James, as you can see, this batch of grain is old. Not long ago, the government of Vienna announced that they would replace the grain reserves, and the old grain in the warehouse would be sold at a discount.

You are also a professional, and you must know that the old grain will be sold at a discount. The grain has been stored for more than three years, and the taste will definitely be affected after being processed.

In Austria, this kind of grain was usually not processed into flour. Instead, it was used to brew wine or be processed into animal feed.

This time, the Vienna government released a large amount of grain, which was why it entered the international market. "Vienna" of Vienna said. "King of the Vienna grain is cheap.

The Russians' new grain is already so cheap, so the old grain must be even cheaper. Otherwise, who would they sell it to? "

It was obvious that Raul had a deep grudge against the Government of London. The Anglo-Russian trade agreement allowed companies to directly sign contracts with the Russians, so the middlemen's business was naturally gone.

If they didn't bring back the old grain from Austria, they would have to close down. The price of grain in the international market was not as cheap as Russia's.

James put down the wheat in his hand and grabbed another handful to rub in his hand.

"Are you sure there is no problem with the grain?"

Raul said, "Of course. If there is a problem, I will go to hell!"

Seeing that James was still hesitating, Raul added, "Mr. James, if there is any doubt, you can check it yourself.

This kind of opportunity is rare. No matter how low the international grain price is in the future, it will not fall to this level.

You should know that if we sell it at this price, farmers all over the world will go bankrupt. This has already fallen below the production cost, and there's only this batch. "

James was tempted. If there was no problem with the grain and it was just old grain, then it was completely worth buying. He gritted his teeth and seemed to make up his mind.

"I want thirty thousand tons. Can you make it cheaper?"

This was almost all the money James could muster. However, in order to obtain greater benefits, he decided to gamble.

The price of this batch of grain was 15% cheaper than the grain the Government of London received from the Russians. On the surface, it was normal to have a price difference between old and new grain. In fact, the price was too low.

James wisely didn't explore the deeper reason. As long as he could make a fortune, he didn't care!

…

Starting from May, grain from Austria quickly appeared on the British market. As soon as this cheap grain appeared, it was sought after by unscrupulous capitalists.

Everyone was smart and knew that this price was abnormal. Some even speculated that Austria was trying to sabotage the Anglo-Russian trade. However, this did not prevent them from making a fortune.

Grain was different from other goods. It could be stored for three to five years. Anyway, it was old grain. No matter how long it was stored, it would still be old grain.

It was a small problem if the taste became worse. As long as the processed flour was cheaper, there was no need to worry about the market.

It was good enough to fill one's stomach. Ordinary British people were not that generous to pursue the taste of food.

Such a high-profile action naturally attracted the attention of the Government of London. However, this action was not done by Austria alone. There was also a group of British capitalists involved.

The trade between the Government of London and the Russians would not benefit everyone. Many capitalists would suffer losses.

If they didn't take action, it would be difficult for them to survive when Russia's grain flooded in.

Under such circumstances, they naturally didn't mind cooperating with Austria. It was legal trade anyway. The Government of London had no right to interfere.

They wanted to set restrictions to prevent Austria's grain dumping. Sorry, it was not easy to get through the Congress. For the sake of their own interests, the opponents raised the banner of free trade, and Benjamin's cabinet could do nothing about it.

The free trade system could not be overturned. This was the core of Britannia's economic policy. Of course, this annoyance had little effect on Prime Minister Benjamin.

The new round of election results had come out. He was now the former prime minister. The worry was the Liberal cabinet that was being formed. This could be considered a trap for his competitor, William Juert Gelston.

At the critical moment of the change of power, Benjamin's cabinet responded passively. After the handover of power, it was too late for the Government of London to take measures.

In just a few months, Austria had dumped 8.5 million tons of rye, 3 million tons of wheat, 4.3 million tons of corn, and 3.2 million tons of soybeans to Britannia …

What happened in Britain also affected the international grain market. This time, it really collapsed. It suddenly plummeted by 15%.

The cheap grain of the Russians had not yet appeared in the international market, but the price had almost fallen.

At the beginning of the year, rye was still 25 D. L. per ton. Now it had fallen to 18.6 D. L. per ton. Corn had also fallen from 18.8 D. L. per ton to 14.1 D. L. per ton …

In short, the prices of all staple grains were plummeting. Even the prices of other agricultural products were greatly affected. The fear in people's hearts was the main culprit behind all of this.

At this point, everyone would just have to lose money together. Everyone knew that the current price was not the lowest point. After the autumn harvest, grain prices would usher in a new low.

With the grain supply exceeding demand, the good days of the major grain exporting countries would come to an end. If it weren't for the Anglo-Russian Grain Loan Agreement and the dumping of grain by the Vienna government, the agricultural crisis would have slowly broken out.

Now it was impossible. The crisis had just approached and it would explode. 1872 was destined to be a tragic year. The unsalable grain would become a hot topic in the second half of the year.

It was no longer a problem of price. It was simply that it could not be sold. The best way to stabilize grain prices was to reduce grain production and destroy the surplus agricultural products.

As a responsible country, Austria naturally had to take active measures. In July, the Austrian Ministry of Agriculture issued a call to the major grain producing countries in the world, hoping that they would reduce grain production at the same time.

On August 12, the Government of Vienna introduced the Land Fallow Law. The law clearly stated that the land used to grow grain must be fallow. The specific time of fallow would be determined by the local government according to the actual situation.

It seemed to be an effective law, but in reality, its influence was very limited. Austria had a tradition of agricultural fallow. It was only this time that it was explicitly stipulated.

According to the Ministry of Agriculture's estimate, Austria's grain production would be reduced by about two to three percent. This was not a small number, and it could alleviate the crisis of overproduction.

On August 15, the Government of Vienna introduced the Land Reclamation Law. It clearly stated that wheat, corn, rye, potatoes, and other crops were prohibited from being planted on newly reclaimed land in Europe for five years.

These measures were far away and could not quench the immediate thirst. In any case, the crops that had been planted in the ground could not be uprooted.

The grain production of Austria in 1872 would still not decrease. It would not affect the international grain market in a short period of time.