Chapter 276 Capital without Borders
In July 1856, the Vienna government officially began to implement the "hold-up plan". The government increased investment in infrastructure and opened tenders to the outside world.
At the same time, the railway network has also begun to be re-planned, and almost every city has been planned on a railway line, and then tendered.
This time, not only domestic railway companies can participate, but overseas railway companies can also participate in the bidding without any investment restrictions.
It is still the old rule that a railway line is only authorized to one railway company, and repeated construction is not allowed to waste resources, so as to satisfy everyone's desire for monopoly operation.
It looks very beautiful. The premise is that the railway company must start and finish on time. If you can't do it, be ready to cry!
According to the new plan, once the construction of the railway network is completed, the total railway mileage of the new Holy Roman Empire will reach a staggering 97,000 kilometers.
At present, the total railway mileage in the country is only 15,800 kilometers, and the railway projects under construction are only 32,100 kilometers, which is now almost doubled.
Considering that some of the newly planned railway routes are too remote to make a profit, in order to attract investors, the Vienna government has also promised to permanently tax the remote sections.
Good news fooling ordinary investors is okay. Smart people know that this is just a tempting picture. But in the age of market frenzy, who cares so much?
Smart people know that whether the project succeeds or fails in the end, as long as they do not become the last taker, they can all make money from it.
Although none of the Austrian railway companies have ever made a profit, railway stocks have been bullish all the way and are very optimistic about the capital market.
At present, all railways open to traffic are making profits, which creates a misconception for many people that railway companies are a business that can make a profit without losing money, especially the Austrian railway can monopolize the operation.
Regarding the bidding projects, the Vienna government is also boasting to the fullest. For example, the current economic development speed of the New Holy Roman Empire, the demand for railway transportation, and the high population growth rate are all good news.
After being packaged like this, many speculators have been recruited. In theory, all these railway lines will be profitable. Even the most remote railway in Bosnia and Herzegovina will be profitable in the future.
These figures don't lie, it's really just a matter of time before the railroad makes a profit. There were no automobiles, no planes, and no means of transport that could compete with railroads in land transportation.
The territory of the New Holy Roman Empire is not large, there is no too remote place, there is no uninhabited frontier, and there is potential for discovery in the future.
Franz estimated that if the Vienna government did not impose restrictions on railway transportation prices, after ten years, more than 70% of the routes could be profitable; after 20 years, more than 90% of the routes could be profitable; Years later, all routes are profitable.
This profit is based on not considering the construction cost, but the pure operating income exceeds the operating cost. I don't know that it will take a long time to recover the investment.
The construction cost of the railway has not yet been recovered, and it needs to be overhauled again. No matter how well maintained, most of the rails and sleepers will need to be replaced after a few decades.
Since it's a painted cake, Franz doesn't mind making it look a little more attractive. For example, the Vienna government has promised to subsidize serious loss-making routes to ensure the normal operation of the railway.
This promise is actually the same as no railway line, and the railway company will definitely give up on the railway line that cannot recover the operating costs!
The Vienna government, as the takeover man, must ensure the normal operation of the railway in the end, whether it gives subsidies or not. It is the responsibility and obligation of the government to ensure the smooth flow of basic transportation facilities, and this money is simply indispensable.
Moreover, before that time, the economic crisis broke out, the capital chain of the railway company broke, and it became inevitable to accept the government's shareholding. After a few more economic times, the largest shareholder became the Vienna government.
Why break the rules when you can hold a controlling stake in the railway within the rules?
Using economic means to get a controlling stake in the railway is much smarter than overturning the table and rudely declaring the state of the railway.
Moreover, the management system of the joint-stock cooperative company is much lower than that of bureaucrats directly appointed by the government.
...
London
Barclays Bank now has some of the prototype of the Barclays Bank consortium. Apart from not publicly announcing the establishment of a consortium, the capitalists who are essentially attached to the bank's periphery already have the strength of a consortium.
The capital of Barclays Bank itself has exceeded 100 million pounds, the funds that can be mobilized through the financial market have exceeded 300 million pounds, and the industry affected by it has exceeded 500 million pounds. It is also ranked among the top few consortia in the UK.
President Genos took out a stack of materials and distributed it to everyone, and then said: "Everyone, not long ago, the Vienna government suddenly announced that it will invest heavily in infrastructure.
Including: railways, ports, urban drinking water projects, municipal engineering reconstruction, and even some water conservancy projects, all included in the scope of bidding.
It is estimated that the total investment amount is as high as 480 million Aegis, or 240 million pounds, which will drive the surrounding industry market to exceed 500 million pounds. This is a capital feast, but also accompanied by very serious challenges.
How to win the biggest cake while controlling the risk to the lowest point is the topic we are going to discuss today.
The information has been sent to everyone, and it is basically the same as what we have learned before, but now it is more detailed and involves specific projects. "
Simon, the big capitalist, questioned: "Mr. Genos, as far as I know, the total fiscal revenue of the Vienna government last year was not
Over 121 million Aegis, and it will not exceed 128 million Aegis this year. Can they come up with this huge amount of money to invest? "
Genos replied calmly: "Austria's economy has developed rapidly in recent years, and the Vienna government took the opportunity of the Near East War to successfully get rid of its financial difficulties.
Especially after the annexation of several German states, the total population of the newly born New Holy Roman Empire exceeded 50 million, and the total economic volume exceeded that of the French, and that's all for us.
At present, the total debt of their government is less than 80 million Aegis. This debt ratio can be said to be quite low. If they want to finance externally, surely everyone will not refuse it? "
Refuse, how to refuse? Who can't get along with money, British people with a serious excess of capital are looking for places to invest these days. In the face of a high-quality customer, how can you refuse for no reason?
If the financial market of the new Holy Roman Empire can be influenced through loans, the potential benefits are even greater.
Simon replied without hesitation: "Of course, the Vienna government is now a high-quality customer, as long as they are willing to join the pound-gold system, there is no problem in providing them with loans.
But they will not join. The Austrians still want to engage in the Aegis-gold system, and it is impossible to easily compromise with the London government.
In this case, should we still do this business? "
The capitalist Bernat asked rhetorically: "Why don't you do business that makes money?
Controlling their financial markets through loans, and then influencing the decision-making of the Vienna government through finance, allowing them to accept sterling gold - the system, this is a long-term job.
Our approach is consistent with the government's strategy, but it will take a little time. The New Holy Roman Empire is also a big country, and it is not an overnight thing to let them compromise, it is more secure to take it slow. "
Except the first sentence is true, the latter is all bullshit. Controlling financial markets through lending can indeed be done, but in a theoretical state.
Austrian capital is not a fool. For its own interests, it will also resist their capital invasion. It is very obvious which side the Vienna government will stand on.
Never heard that a single loan controls the finances of a big country.
Unless they can make the Vienna government financially problematic and rely on overseas loans for a long time, it will inevitably be affected by them.
But in this way, high-quality customers have become inferior customers, and there is no need to continue the business.
Genos said solemnly: "The London government's plan, let them implement it themselves, we can support them, but the premise is that it does not harm their own interests.
Don't forget that the bait thrown by the Vienna government is poisonous. They require investors to advance construction funds and pay a security deposit.
Once there is a change in the middle, the capital chain of the project is broken, not only the previous investment will be lost, but the deposit will be confiscated, and all the risks will be borne by the investors.
This kind of project that squeezes a lot of money seems to be specially prepared for us, which is too abnormal.
From the analysis of the current economic situation, this round of economic development seems to be reaching its limit. The fruit is ripe, and the day of harvest is not far away.
When the economic crisis was approaching, the Vienna government threw out this big plan, and I highly suspect that they were trying to defraud the security deposit. "
Bernat said without hesitation: "Even if they cheat the security deposit, it is based on the premise that the project is unfinished. As long as it is successfully completed, they have to pay. I don't think the Vienna government will default.
Compared with the security deposit, I think they are more likely to pull people into the water. Once everyone invests funds in these infrastructures that cannot be performed, even if the economic crisis breaks out, there is no way to withdraw funds from Austria.
In order not to let the previous investment go to waste, investors have to continue to invest. As long as these projects are under normal construction, the impact of this economic crisis on Austria will be minimized.
However, I am very skeptical that there will be an economic crisis in Austria?
Although the capitalist economy has developed to the present, more and more countries are affected, but the impact on conservative Austria should not be great.
Even they have never felt it, what is the real economic crisis like, is it used to make such a fuss? "
Simon sneered: "Bernart, you should still think a few years ago! Since 1850, the Austrian market has become the most popular area for British capital.
So far, the total investment of British capital in the New Holy Rome area should exceed 180 million pounds, and the investment of French capital there will not be less than 50 million pounds.
Barclays alone has invested more than 15 million pounds there. If we all pull the funds and leave together, the economic crisis in Austria will break out immediately. "
They have arrogant capital. This era was the time when the capital of the British Empire was at its greatest, and even the nearest French couldn't match it.
Genos glanced at everyone and said, "No matter what conspiracy the Austrians have, as long as it doesn't prevent us from making money, we can continue to cooperate.
Based on the information we currently have, it is very unreliable to guess their plan. No matter what the conspiracy of the Vienna government, the project they put out this time does have many high-quality assets.
We just need to filter out the high-quality assets here, and then find a way to get them. Whoever likes to take over the remaining junk assets will let whoever takes over.
If possible, we can also work hard to see if we can throw some good-looking junk projects to our competitors.
In my personal opinion, the urban safe drinking water pipe network project is very good and can be swallowed. Once this project is completed, you can imagine that it will monopolize the profits of a city's tap water supply. "
Simon said very cooperatively: "Genos, you are still so good, you can pick the most effective value project at a glance.
Several of our water companies have always been the most stable source of income and are hardly affected by market fluctuations.
However, I think as long as the Austrian bids are high enough, they can undertake some municipal engineering projects. By the way, we can also help them issue construction bonds to solve the project's financial needs. "
Obviously, what he was looking at was not a municipal construction project, but the issuance of bonds.
These bonds were not eaten by them, but were sold on the London financial market for the Vienna government. Whether they could be cashed or not had nothing to do with them, anyway, the handling fee and exchange fee were earned first.
Burnett added: "Our railway companies can't be idle either, and now the domestic business growth has almost stagnated, and the development potential is not much.
No matter what, we should take this opportunity to win a few railway lines, push the stock price up again, and then find another home to take over. "
Obviously everyone knows that there is a crisis here, but this does not prevent them from making money. As long as the profit is large enough, who cares what the Vienna government wants to do?
Everyone's different opinions actually represent their own different interests. In the same consortium, it is impossible for everyone to develop in the same direction.
Everyone has their own goals. Only when there is no conflict of interest can we achieve close cooperation.
If this is not possible, then the family should be separated. To put it bluntly, the consortium is just a combination of interest groups. Once everyone has too much conflict of interest, it is very natural for them to fall apart.