Chapter 293 The Delayed Rubber Crisis

When the European situation experienced the Second Moroccan Crisis and the Italo-Turkish War, Arthur and the Royal Consortium also took many actions in Europe.

First of all, it was because of the tense atmosphere in Europe during these two events and the upcoming war that many civilian factories and enterprises in Europe depreciated in an instant and even faced the risk of bankruptcy.

Not only in the stock markets of France and Germany, but also in the stock markets of countries such as Britain, Austria-Hungary and Russia, the stock market conditions were not very good. After the Italo-Turkish War, the stock market of Italy was also added.

Of course, the current depreciation is not too serious, at least compared with the war period in history.

Once the war breaks out, the depreciation faced by these companies will be more serious, which is also an opportunity for Arthur and the Royal Consortium and even the whole world to buy at the bottom.

After the war, a large number of industries in the defeated countries will face bankruptcy crisis at that time, which is dozens of times cheaper than the current acquisition.

At the same time, the Royal Consortium is also selling a large number of assets in Europe, including stocks of factories and enterprises invested by the Royal Consortium.

If you don't sell it now, you will never have the chance to sell it again. From now until the end of the war, these companies will basically be in a state of depreciation, except for those more important military factories.

But the problem is that military factories are also very important to the great powers, and the royal consortium currently does not have the ability to intervene in the important military factories of the great powers.

Moreover, the military factories of the defeated countries will also be liquidated after the war, and it will not be too late to buy some of the technology of Krupp military factories at that time.

The only thing that is not easy to withdraw investment is the United Automobile Factory built with the British and German local forces.

Whether it is the automobile factories in the UK or Germany, the current scale is already very large, with tens of thousands of workers, and it is impossible to withdraw investment easily.

But the good news is that Australasia currently has a good relationship with Germany and the UK. For Arthur's sake, whether it is the British or German automobile factories, they should not be covered by artillery fire.

Of course, occupation should be inevitable, but Australasia will surely be able to get back its own interests after the war.

It is worth mentioning that during the Second Moroccan Crisis, the rubber crisis that was supposed to break out in 1910 was finally delayed.

The reason for the delayed outbreak is that Benz cars ushered in a more glorious era for the rubber industry. The development of rubber in this world is far more exaggerated than in the history of the parallel world.

How exaggerated is it? Even in the few months from the end of 1910 to the beginning of 1911, there were as many as 200 rubber companies registered in East Asia.

But the problem is that the quality of these companies varies. Some are indeed legitimate rubber production companies, but some just bought a piece of vacant land in Southeast Asia and registered a rubber company shamelessly.

And the purpose of their registration of rubber companies is to list their own rubber company's stocks on the East Asian stock market and make a lot of profits for themselves by selling stocks.

You know, because cars are popular in the world in advance, the rubber industry has developed very rapidly.

This is because the development of cars is inseparable from tires, and tires are generally made of rubber.

This has led to countless tire factories in various countries. After all, even if they can't catch up with Benz car factories in terms of automobile technology, they can still produce tires and make a lot of profits as tire suppliers for car factories.

Take Australasia as an example. The royal consortium in Australasia owns several rubber companies, and there are more than a dozen tire factories of all sizes in the private sector.

Although the Sydney Stock Exchange in Australasia was established less than a few months ago, because of Australasia's more developed economy and the same culture, it has also attracted many companies from Europe to register rubber companies here.

However, Arthur attaches great importance to the Sydney Stock Exchange, and companies listed on the Sydney Stock Exchange also need to undergo certain audits.

At least those companies that only have enough money to buy a piece of land and want to register a rubber company will never be successfully listed on the Sydney Stock Exchange.

But the stock exchanges in East Asia are different. The stock exchanges in East Asia are in the hands of a corrupt country. This also means that the management of this stock exchange is very backward, and the power to supervise and manage foreign companies is insufficient.

Because of the lack of a unified and mature financial management system, the stock exchanges in East Asia have become the main target of foreign capital and companies to make a lot of money.

The international price of rubber has also risen from 2 shillings per pound of rubber at the beginning of the birth of the car to an exaggerated 17 shillings per pound of rubber.

This also led to a surge in the stock prices of almost every rubber company. The stock price of a newly registered rubber company could quickly multiply several times in a short period of time, and even eventually multiply by dozens of times.

The rubber companies of the royal consortium did make a lot of money because of this. Even if the securities company of the royal consortium only helped several companies to list rubber stocks, it made hundreds of thousands of Australian dollars.

Arthur even secretly supported many rubber companies to be established in Southeast Asia, and then listed them in East Asia to make a lot of profits.

Arthur learned that the real reason for the rubber crisis was because of the news from Germany that Germany had successfully researched the technology of synthetic rubber, and Germany hoped that the synthetic rubber factory it created could establish a cooperative relationship with the Benz car factory and even become one of the designated tire suppliers of the car factory.

Historically, it was the technology of synthetic rubber, coupled with the fact that the development of rubber had almost reached its peak, that led to the outbreak of the rubber crisis in 1910.

After learning that Germany had successfully developed synthetic rubber technology, Arthur did not hesitate at all and directly ordered Kent, the housekeeper, to order the royal consortium to sell all the rubber company stocks in its hands as quickly as possible, and the Sydney Stock Exchange Company temporarily stopped the listing of rubber company stocks.

It was not possible not to sell. After the outbreak of the rubber crisis, not only did the price of rubber fall several times in a short period of time, but the stock price of rubber companies also fell directly to the limit in a short period of time.

If you continue to hold the stocks of rubber companies, you will lose more than what you earned before in the future rubber crisis.

However, in order to smoothly sell the stocks of rubber companies in his hands, Arthur still shamelessly requested the German side in his private name, asking the German side to temporarily postpone the announcement of synthetic rubber technology.

As compensation to the German side, Arthur directly patted his chest and agreed that the German synthetic rubber factory would become one of the tire suppliers of the automobile factory.

Anyway, the German rubber factory also supplies the German automobile factory. It is nothing more than changing a tire factory. Let the Germans worry about it themselves.

In mid-April 1911, the royal consortium finally completed the sale of all rubber company stocks.

A few days later, on April 20, Germany announced in a high-profile manner that Germany had successfully developed commercial synthetic rubber technology and would build a synthetic rubber factory to replace the original rubber company.

As William II happily announced the news, the stocks of rubber companies in Germany fell on the same day.

Of course, this is just the beginning of the rubber crisis.

Immediately afterwards, important rubber importing countries such as Germany, Britain, Australasia, and the United States announced that this year (1911) rubber imports would temporarily remain at last year's level, which also means that the development of world rubber has reached saturation, and the golden age of rubber in the past few years has ended.

This news is more fatal to the current rubber market, because the joint announcement of several major rubber importing countries means that the development of rubber has reached its peak and the demand for rubber has reached saturation.

In the future, companies and enterprises that enter the rubber market will not only fail to make money, but may even threaten the current rubber market.

What's more terrible is that soon, the German branch of the world's largest automobile brand, Benz Automobile Factory, announced that it would reach a cooperation with the synthetic rubber factory to be established in Germany to replace natural rubber tires with synthetic rubber tires.

You know, the role of automobiles can be said to be not small for the rubber boom to develop to such a large scale.

The four Benz Automobile Factory in Germany, the United States, the United Kingdom and Australasia are the four largest automobile factories in the world.

This means that the rubber market will not only not expand again, but will shrink rapidly in a very short time.

These pieces of news are a devastating blow to the rubber market, and also caused the rubber stocks of various stock markets to plummet rapidly.

At the end of April, the price of rubber had dropped sharply from 17 shillings per pound to 11 shillings per pound, and the price had dropped by more than one-third in less than ten days.

Of course, the more serious is the rubber stock. As of the end of April, the price of rubber stocks in the London Stock Exchange had generally dropped to one-tenth of that a dozen days ago, and the price reduction has even been getting faster and faster.

Previously, the stock of rubber companies was as high as tens of pounds, but now most of the rubber companies' stocks are less than ten pounds, and even generally have dropped to about two or three pounds.

Of course, it is not so bad in the stock exchange market like London, which is subject to strict supervision.

In the stock exchange market in East Asia, such a plunge is even more serious.

Because there is not much supervision, the number of stock companies in the stock exchange market in East Asia is very large, and there are a large number of shell companies.

When the stock gold was listed, there were a lot of people who bought the stocks of stock companies, but now people are dumbfounded.

The stocks that were worth thousands of gold before may not even be enough to eat a meal now. What's more serious is that no one wants to take over the stocks they want to sell in the stock market, which also causes them to sit back and watch the stocks in their hands continue to plummet.

In just over a month, the price of a single stock has plummeted from tens of pounds to ten pounds, a few pounds, and even to less than one pound.

Such a price can't even reach the issue price of the stock, which is enough to prove how severe the impact of this rubber crisis on the rubber industry and rubber companies is.

According to Arthur's guess, especially in Southeast Asia, at least thousands of rubber companies went bankrupt due to the rubber crisis, and the total amount of money lost was even countless.

The few rubber companies that were able to get the news early had already cashed out when the stock price was the highest, and quietly left with a large amount of pounds earned during this period.

And those ordinary stockholders who didn't know the news at all could only react when the crisis came, but it was too late at this time. The stock market was full of people who wanted to sell stocks, so who would buy stocks?

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