Chapter 282 Bonds

Chancellor of the Exchequer Carr said happily: "Your Majesty, the 50 million pounds of bonds we issued in London have been sold out."

It was too smooth, or the British had too much surplus capital. Dominating most of the international trade market, the British have accumulated too much capital.

The domestic market cannot digest it, so naturally it can only face overseas. However, overseas markets also have thresholds. Not everyone is eligible to play. Those with insufficient strength can only invest in stocks and bonds.

The construction bonds issued by the Vienna government are high-quality assets in any way, and are naturally popular among small capitalists and the middle class.

The 50 million pounds were sold out in less than a week, and this speed is completely rushing. You must know that the annual interest rate of this bond is only 6.5%, which is not too high.

Of course, this is not the final cost of issuing bonds, but also the handling fees, publicity fees, printing fees of the bonds, and exchange fees when the money is in hand.

Franz asked with concern: "What about Paris and China?"

Since it is a bond issue, it is naturally impossible to only target the London financial market. Paris, Vienna and Frankfurt are also the financial centers of Europe. How could Franz ignore it?

The Chancellor of the Exchequer Carl replied: "The Paris side has sold 650 million francs, and the rest is expected to be sold out within a month; 94.8 million Aegis has been sold domestically, and it is expected to be sold out within two months."

(1 pound ≈ 2 Aegis ≈ 25 francs ≈ 7.32 grams of gold)

Franz asked in surprise: "How strong is Vienna's financial market carrying capacity?"

To play a full set, since the capitalists are to be fooled into jumping into the pit, the Vienna government must also have real money and silver in their hands. The capitalists are not fools, they are all masters who do not see the rabbit but not the eagle.

To this end, the Vienna government issued construction bonds of 350 million Aegis to the outside world, and guaranteed that the money would be used exclusively for domestic infrastructure construction.

Among them, 100 million Aegis bonds were issued to London, 80 million Aegis were issued to Paris, and the remaining 170 million Aegis were issued in Frankfurt and Vienna respectively.

According to Franz's estimation, with the carrying capacity of the domestic financial market, the economic crisis broke out before the construction bonds were digested.

When private funds buy bonds, the funds flowing into the stock market will decrease, and the funds flowing into the real economy will also decrease.

After the outbreak of the economic crisis, everyone's losses can be minimized, and the number of people who jump off the building should be reduced a lot, so as to preserve the vitality as much as possible.

Karl explained: "Your Majesty, Frankfurt has a strong presence in Central Europe, attracting investors from the German Federal Empire, Switzerland, Belgium and the Kingdom of Prussia, and has more bond sales than Vienna."

After pondering for a while, Franz suddenly understood. Under normal circumstances, it is impossible for Frankfurt to compete with Vienna, even if it attracts surrounding capital.

However, the capital consortium in Frankfurt has this strength. They can buy the bonds themselves first, and then slowly sell them to the outside world.

In doing so, in addition to showing goodwill to the government, they also meant to show their strength to the Vienna government in order to gain a higher political status.

It means that Franz understands it, and naturally knows that he has reciprocated. Frankly speaking, if Vienna is not the capital, has too many resources, and gathers a lot of rich people, otherwise it will not be able to compete with Frankfurt at all.

Frankfurt has been the financial center of the German region since modern times. In another time and space, in the 21st century, the largest financial center in Germany is Frankfurt.

Fortunately, Frankfurt is a free city. It has economic strength, but there is no possibility of becoming bigger, otherwise Franz will have a headache.

Franz thought for a while and said, "In the Navy's new shipbuilding plan, add another Frankfurt."

"Yes, Your Majesty!" Admiral Philcos replied happily

Franz said in person, the addition of sailing warships is naturally impossible, and now only ironclad ships are worthy of everyone's attention.

As a land-power country, the navy's military budget is naturally limited. Even if it has an advantage in this naval technological revolution, the Vienna government has no plan to expand the navy.

The Admiralty tried again and again, and finally got the budget for two ironclad ships. This is not a year, but a three-year shipbuilding budget.

One Reich, or the "New Holy Roman Empire," and the other Vienna.

There's nothing wrong with it, it's all full of strong political overtones. At this time, the addition of a Frankfurt is undoubtedly a reflection of the importance of Frankfurt in the empire.

This is Franz's affirmation of the goodwill of the Frankfurt capitalists. If the governments of other countries are willing to sell well to the central government, he does not mind adding a few more ironclads.

To put it bluntly, an ironclad ship is only a few hundred thousand Aegis, and the larger quantity is preferred. The cost of the first "Frederick" was 800,000 Aegis. Now the second batch of improved warships has seen a small increase in performance, but the cost has decreased.

Mainly in the early stage of research and development, testing new technologies, and increasing shipbuilding expenses. Now, two ironclad ships have been started at one time, and the unit price has dropped to 580,000 Aegis. If three ships are started, the unit price will continue to drop.

The number of states in the New Holy Roman Empire is not large. Even if each state is named one, it will only increase the cost of two or three million Aegis, which is completely within the range.

The real money-burning of the navy began in the age of dreadnoughts. A battleship moved millions of Aegis, and it was the real gold swallowing beast.

Moreover, military spending

Nor is it borne by one Austrian state, all states must share proportionally according to their respective fiscal revenues.

Franz said solemnly: "Since the raised funds have been obtained, we urge the winning capitalists to start construction as soon as possible, and all projects are carried out according to the contract.

The Ministry of Finance and local governments cooperate with each other, and the Anti-Corruption Bureau closely monitors them, and absolutely does not allow any violation of laws and disciplines. "

It is necessary to start construction, otherwise the economic crisis will break out, and the capitalists who won the bid will admit it and give up the deposit to leave the market, which would be embarrassing. It was rumored that people didn't say: the Vienna government defrauded everyone's security deposit.

In order to avoid this terrible outcome, Franz had to get everyone to work, and there were also small projects in so many projects, and these small projects might be completed in a few months.

After the completion of the settlement, as long as the money is obtained, no one can say that the Vienna government is cheating the security deposit.

Because of the outbreak of the economic crisis, the capital chain is broken and the large project cannot be completed, and that is the responsibility of the winning bidder. There is a price to pay for the project without the strength.

"Yes, Your Majesty!"

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