Chapter 852

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 moment, everyone suddenly realized that the so-called benefits were completely fabricated out of thin air.

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 entrusted procurement couldn't be any more fake.

Frankly speaking, this game wasn't that brilliant. Perhaps in other countries, there might be government commissioned companies to purchase, but in the Russian Empire, it would never exist.

The Tsarist government had the most annoying bureaucratic team. How could this kind of hard work be outsourced?

Known as the most honest procurement department in the Russian Empire, they absolutely could not 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. These all 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, and to be able to stand out from 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, including Sade textile factory, Eidolon cannery factory, and Ellenburg textile factory, 18 companies have requested to return goods.

The total value of these returned goods is around 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, we estimate that our losses this time will be as high as 54 million francs. The forfeiture fees can be used for about 14 million francs, and the final loss will be around 40 million francs. "

Birds of a feather flock together, and as a noble capitalist, Fidoren's relationship with the domestic capital industry was very ordinary.

Baron Philon had been excluded from the group's planned retreat, becoming one of the victims.

Fidoren Machinery Factory was engaged in the machinery and equipment manufacturing industry, and its main market was in the upstream industry.

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 brewed the current bitter result. 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 for breach of contract according to the contract.

"Suspend the production of all orders and send someone to contact the remaining customers. After confirming that the orders can be successfully delivered, we will continue production.

"Immediately transfer the orders that can be transferred to other orders that are in breach of contract. "If it really doesn't work, 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 in their hands, the higher the cost the company had to pay.

Judging from the current situation, Baron Fidoren 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 market, but now that the problem had erupted, Baron Fidoren naturally noticed the deeper reason.

The war between Britain and Russia did not consume as expected, and it was only the focus of the conflict. In essence, the cycle of capitalist economic development had arrived.

Based on past experience, overcapacity would not only be a problem for France, but the entire capitalist world would not be able to avoid it.

There were only a few countries that had the qualifications to have an economic crisis. France's industrial production costs were higher than Britain and Austria, and 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 money from the war, became the earliest victims.

However, these guys reacted very quickly. Before the crisis erupted, they began to transfer 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 circulating 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 escape.

Now that everyone had become shareholders through speculation, 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 their hands 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 Fidoren 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, the Fidoren machinery factory, which was operating well, was directly brought into the gutter.

The calls from the bank had already made Baron Fidoren feel like he was about to collapse. The phone on the table that had its cable unplugged was the most realistic portrayal.

Knock, knock, knock. Baron Fidoren 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 living room."

As soon as he finished speaking, two middle-aged men in suits and leather shoes walked in.

The leader said, "My apologies, Baron Fidoren. We took the liberty to visit this time, mainly for … "

Baron Fidoren 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 Fidoren's words, the middle-aged man from Fick immediately made an inviting gesture and said, "The two of you, please follow me."

The leader of the middle-aged men was unmoved, and said, "Baron Fidoren, 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 Fidoren was stunned …