Xinshun 1730

Chapter 762 Dutch Disaster Year ([-])
At the beginning, William IV thanked Liu Yu.

I think Liu Yu is an idiot.

The coup d'état with the French ambassador in Russia has been going on for a long time, but the Russian-French alliance has not yet been reached. It seems to be a tool used by Queen Elizabeth and then discarded.

In the Netherlands, they wooed the Orangemen and signed the "free trade" traitorous treaty-free trade. For the Netherlands at this time, there was no more traitorous treaty than this.The average salary of textile workers in Leiden is two or three times that of the United Kingdom, and it also deserves free trade?

As a result, he failed to win over, and became angry from embarrassment. Before leaving, he acted like a heavenly kingdom and humiliated the Netherlands.As a result, it helped William IV to come to power in the opposite direction, and drove away the parliamentarians who were "not tough enough on China and the law".

But now this whole combination of punches has completely stunned William IV.

He wasn't a good guy.

Although he always thought about being Caesar and Augustus, relying on a series of military victories, he became the consul of the Netherlands.

But the physical condition does not allow it.

Secondly, the way of his mother's education can only be said to teach a child who is indecisive.

In terms of Chinese history, his ancestors, William II, William III, and even Prince Morris, were all at the level of Li Er and Liu San.But when it comes to him, it can only be said that in terms of political skills, comparing him with the Emperor of the Ming Dynasty is an insult to Yingzong.

It's okay that everything went well, who wouldn't be the master of success?We should compromise with the oligarchs, and we should confess our weakness.

However, everything is not going well.

After only one or two years in power, such a big thing happened.

The parliamentary faction still nodded and bowed to France at the beginning, and always told the French about the aid to Austria that they were only fulfilling the signature on the state edict, and hoped that France would not be angry.

But William IV is the son-in-law of the eldest princess of England, an orthodox British relative.And as soon as he came to power, he directly announced that he would declare war on France, and was ready to take advantage of it.It even directly assisted Austria with large sums of money and expelled the French ambassador to the Netherlands, with a clear-cut banner.

Now, the clear-cut William IV, faced with the French occupation of the Austrian Netherlands and the withdrawal of British troops to prevent Catholics and Scotland from taking over London, how would he know what to do?
If he was like his predecessor, Prince Maurice, it would be easy to say, just do it.

The problem is, he's not.

The diplomatic situation took a turn for the worse, and domestic opposition suddenly rose again.

At the beginning, many people were silent, and more people were because the oligarchic regency and financial capitalist faction were so bad that they were disgusting, so they came up with the idea of ​​"it's better to go back to the feudal era".

At the beginning, the people who supported Orange the most, apart from the soldiers and the nobles of the Orange faction, were the guilds all over the Netherlands.

It turned out that the guilds in the provinces absolutely supported the Orange faction.

Guilds should be swept into the dustbin of history. Compared with the financial capital of Amsterdam, the guilds of the feudal era must not be able to compete with the capital of the enlightenment era.

For example, the pottery guild in this city, the local pottery is controlled by the guild.The days are happy.

As a result, capital was engaged in business, and Yixing purple sand pots tens of thousands of miles away were frantically shipped to the Netherlands. What did the local pottery guild think?
Capital and guilds are inherently incompatible with each other.

The guilds of the old era were severely squeezed by capital. The guild hoped that the Orange family would come to power to fully support the revival of the guild, suppress capital, and return to the late Middle Ages.

The Orange family is aristocratic, has a manor, and is basically hostile to financial capital and the financial oligarchs of the provinces.

However, after William IV came to power, he quickly understood why his ancestors would rather go to England to become king than stay in Amsterdam.

The oligarchy capitalists in Amsterdam clearly told William IV that it is fine for you to be in power; however, without our consent, your order in Amsterdam is a fart.

The province of the Netherlands took 50% of the taxes of the seven provinces and left the Netherlands, and the government of the federal republic could not function.

Choose capital?Or choose a feudal guild?
William IV quickly gave the answer.

He changed his attitude when he was a manor owner in Friesland, no longer supported the revival of the guild, and did not hinder the extrusion of the old guild by commercial capital.

This contradiction has been suppressed for several years.

The registered members of the guild were considered the backbone of his support in the beginning.

Now, this contradiction is accompanied by the victory of France and the loss of the East India. The provincial guilds use this to exert pressure, hoping that William IV will have a clear statement.

The representatives of the provincial guilds gathered in The Hague and complained to the consul about the dangers of capital. They hoped that the consul could give a statement: If they promised to support the guild in the future, clear the capital, and restore the law of the ancestors, they would continue to support the Orange family. .

After being ambiguous for so long, I have to give an explanation, right?

While the guild was putting pressure on it, the shareholders of the East India Company and the Dutch financial oligarchs were also putting pressure on William IV.

8 month 12 number.

The news of Dashun's surprise attack on Southeast Asia was accompanied by ships arriving in the morning, and in line with the small size of the Netherlands, it quickly spread throughout the country.

Dashun lured and annihilated the fleet of the Dutch East India Company in Southeast Asia, captured Ceylon and Batavia, seized the command of the sea, and surrounded Malacca...

The news reached Amsterdam in the morning.

In the afternoon, the East India Company stock, originally priced at 2000 dong, fell from 2000 dong to 600 before it stopped.

Just so fast.

This is the "welfare" caused by the inconvenience of communication at this time.

If the communication is convenient, if a large number of Dutch people who have witnessed Dashun’s voyage to Nanyang can send the first-hand news back to Amsterdam as soon as possible, let alone 600, I am afraid that they will fall to 60 on the same day.

Isn't the East India Company without the East India an empty shell?

Moreover, this is not just a matter of the East India Company.

A company with a scale of hundreds of millions is on the verge of bankruptcy, and it is not just a company like the East India Company that is affected.

The East India Company has been in a state of tearing down the east wall to make up for the west wall in recent years. In the past, it borrowed from foreign countries, and a large part of its cash needs to be solved through loans.

Various triangular bonds, various loans, bonds, the purchase of national bonds of various countries, investment in various countries, and a large part of the income of the East India Company are maintained by these things.

When the East India Company had an accident, the entire financial market in Amsterdam collapsed.

Does the East India Company still have assets?
Have.

The warehouses in Persia, the trade office in Africa, the Cape Colony, the fleet, the cargo ships, and the headquarters building of the company, these are definitely assets that Dashun cannot take away for the time being.

And, the intangible assets developed by the East India Company over the past 100 years, market inertia, spice monopoly sales channels... all kinds of things.

They are all assets, and they are assets of high value.

The question is, will these things hold up to the East India Company?
Can a large number of middle-class citizen shareholders want Persian warehouses?Or can you ask for those spice sales channels?
In their eyes, a penny is worthless.

They only want one thing, that the company stocks that were previously in their hands should not be turned into waste paper that is too hard to wipe their buttocks.

The Dutch never thought that the East India Company would go bankrupt.

In 1720, the first European-wide financial crisis triggered by the Mississippi bubble and the South Sea bubble broke out, and the stock of the East India Company remained strong.

The stock of the East India Company, in the eyes of the Dutch, is not paper money, but gold.

It is different from the high return rate blown by John Law playing drums and passing flowers.

VOC has really paid the highest annual interest rate of 57%, and the 50% annual interest return has lasted for nearly four years!
Even during the financial crisis in 1720, 16.5% annual interest was still paid.

banknotes?Banknotes are also matched with VOC's stock ratio?Even comparing gold to that little bond stock is an insult to VOC stock.

VOC can borrow a loan with a very low interest rate in China, because no one does not believe that VOC can not pay back. The reason VOC seldom borrows domestically is that it hides its accounts. It is more expensive than rich and poor, and if it really borrows too much domestically, it is easy to go wrong.

No Dutchman would have thought that Dashun would come up with such a trick to get rid of the bottom line.

For any large company with problems, no one knows its internal financial situation before a major incident occurs.

Once such a big thing happens, many problems that were hidden before will burst out in an instant.

The stocks at this time are not the same as the stocks in later generations.

Investors mainly earn, or dividend annuity.The company made a promise before that if they don’t want to hold shares anymore, they can recycle at the original price. The company can either keep it for the directors or sell it to others.

It's just that almost no one sold it before, and the price of the stock on the Amsterdam Stock Exchange must be higher than the share capital.

Many companies closely related to the East India Company, such as marine insurance, spice and oriental cargo futures, sugar futures, loan banks, etc., almost all broke out on the afternoon of August 8. Serious crises broke out.

In fact, Liu Yu's choice of this time point is not just a simple draw from the bottom of the pot.

The collapse of the Dutch financial market, very simple.

More importantly, the timing was chosen so that the large amount of spare capital after the European financial turmoil had nowhere to go.

Before the systemic financial crisis triggered by the South Sea bubble in 20 years, the share capital of various joint-stock companies in the UK was 5000 million pounds, equivalent to [-] million taels of silver.In this day and age, it's just too hot.

After the bubble burst, the UK realized the importance of national supervision and introduced the "Bubble Act".In theory, unless it is authorized by the parliament or a company chartered by the royal family, it cannot issue shares at will, so as not to engage in drumming and fraud.

However, how difficult is it to obtain royal charter and parliamentary authorization?

In addition, after the explosion of the South China Sea bubble, another wave of the Mississippi bubble exploded, causing investors to cry for their fathers and mothers.

And this has caused a subtle psychological impact: European capital generally believes that private joint-stock companies are unreliable, or state-guaranteed bonds are reliable.The national debt may be 5.00% or 80% per year, but it is stable; the return of Mississippi Company is claimed to be [-]% per year, which is enough, but dare to buy it?
The Netherlands has continued to decline in recent years, and the French stock exchange trades for one hour every day, leaving a large amount of capital with nowhere to invest.

Either buy treasury bonds or government bonds.And some high-quality company stocks, such as the Dutch East India Company with an annual interest rate of 1612% in 57, are simply not available.

In this context, detonating the financial crisis in Amsterdam will definitely have additional benefits for Dashun.

The United Kingdom cannot afford so much financial capital at this time. Either the "Bubble Act" will be revised, or a technological revolution will break out in the United Kingdom. These two things are impossible to happen in a short time.

Not to mention France.

When the financial crisis exploded, a large amount of capital always looked for profits, just like flies looking for shit.

Not to mention that Dashun does not eat alone, let European financial capital cooperate with Dashun to open up the European and American markets together.

Let me just talk about another benefit: Dashun has demonstrated its national strength, and Europe has a lot of capital, and after 20 years, people generally trust official bonds and national bonds, and seek stability... Does this mean that Dashun has found a company that can issue national bonds? where?
Dashun cannot issue national debt in China.Dashun’s usury interest is too high, the land value is too high, and no one buys the national debt. Buying land for 100 taels of silver in a disaster year is definitely more profitable than buying government bonds.

However, such an accident, coupled with the aftermath of the impact of the 20-year investment crisis.

Assuming that if Dashun hits the Netherlands again in the future, it is absolutely possible to raise the national debt of the Netherlands in the Netherlands.

(End of this chapter)