Holy Roman Empire

No money is always the most painful thing, especially when there are a large group of people pointing to eat, and solving the financial crisis is imminent.

St. Petersburg Winter Palace

The new Finance Minister Yevgenkis reported with a sad face: "Your Majesty, this is the most recent month's expenditure report. If no measures are taken, we will go bankrupt in up to three months."

This is not the first time that the Tsarist government has gone bankrupt.If it is the usual period, bankruptcy will be fine, and it will be a big deal to declare bad debts.

The problem now is that the wasteland movement just organized cannot stop, otherwise these tens of millions of people will be hungry.At that time, not only will the reform be destroyed, but even the Czarist Empire may collapse.

After taking a glance at the report, Alexander II was left aside and got up and wandered in the room.

The plan never changes fast, and the number of people actually participating in the wasteland development is far greater than the tsar government expected.Many people have great strength and great expenses.

After hesitating for a long time, Alexander II asked: "If we suspend international debt payments from now on, can we survive this crisis?"

Laying money is not an option, but the problem is that the Tsarist government really has no money.Whether it is continuing international loans or issuing bonds, the Tsarist government has tried it.

No one wants to lend money to the poor. Even if the Russians can take out the collateral, everyone is worried that the promise will not be fulfilled.

Because of the war, part of the fertile soil in Eastern Europe was lost, and the tsarist government's fiscal revenue also shrank significantly.

If it weren't for making a sum of money in the house, the Tsarist government would have gone bankrupt.War consumes a lot, and reform is also a golden beast, leaving little room for Alexander II to choose.

Finance Minister Yevgenkis replied after thinking about it: "If some projects are suspended and the wasteland development campaign is fully guaranteed, there should be no problem."

It was time to do the multiple-choice questions. After a loss of inconvenience, Alexander II formulated an ambitious Russian railway plan.

The whole line is up to 150,000 kilometers. Once this plan is completed, Russian Eastern Europe will be connected in series, and it is almost possible to declare that Prussia and Poland are finished.

Alexander II made a decisive decision: "Okay, then do so!"

The problem of development lags behind, and it is important to solve the problem at hand.On the surface, it is a good thing that the great wasteland has increased the amount of land and allowed farmers to have land.

In fact, there are still big hidden dangers.The biggest problem is that there will inevitably be too much grain output in the future. Everyone knows the reason that the valleys hurt farmers.

Perhaps for a capitalist economy, increased food production is a good thing, as it can reduce the cost of feeding workers.

Then, for farmers and nobles, this was a disaster.Many nobles are lagging behind, mainly because they are worried about their own interests in the future.

The Russian Empire was originally a big grain exporter, and if it continues to increase its production capacity, it will certainly not be able to consume internally, and exports have become the only option.

From the beginning, the Tsarist government was ready to bring down European food prices.Countries can dump industrial products to them, and they can also dump agricultural products in reverse.

It would be better if we could monopolize the food supply in continental Europe.To do this, we must first allow the grain of the Russian Empire to be shipped out.

The railway is an indispensable part. If the traffic problem cannot be solved, the plan will always stay on paper.

No one objected to Alexander II's plan. Compared with the great plan, it was still more important to get through the difficulties at hand.

As long as the first year has passed and the output on the land can guarantee the basic life of the people, then the problem will be solved later.

In this era, the Russian peasants were easy to feed, and had just changed from serfs to freemen. As long as they could fill their stomachs, they would not dare to have other requirements.

As long as the time of the most crisis is passed, the following problems will be easier to deal with.

On July 7, 1869, the tsarist government issued a note to major creditors, announcing that the Russian Empire was financially insolvent and unable to continue to fulfill its debts.

The European world is in an uproar. In recent years, no European countries have paid their debts, giving the public an illusion that the morality of governments of various countries has increased.

The Russians have now broken everyone's illusions. If there is no delinquency, it is a good financial situation for everyone.

If you really have no money, then you have to pay the bills.Anyway, I do n’t have any money, but I do n’t want to give it away.

Except for the creditors, the European people have become melon-eating people, turning their attention to Vienna, and the expression of gloating is overwhelming.

Some recent developments in Austria have been very good, and naturally have made many people jealous.As the largest creditor of the Russians, many people are now watching Austrian jokes.

You know, the Russians now pay the principal and interest of 30.684 million Aegis every month, which is 3682.08 million Aegis every year.

This astronomical figure is enough to destroy the Russian-Austrian alliance.No matter how good the relationship is, it cannot withstand the destruction of interest.

Franz was not as frightened as the outside world imagined. When he refused to provide loans to the tsarist government, he was ready for the Russians to pay their debts.

No, it should be said that this thought was prepared earlier.After all, the financial situation of the Tsarist government has not been good, and it is not easy to support it until now.

No matter how fully prepared, the aftercare work must be done.Most of these loans are guaranteed by the Vienna government, otherwise few banks dare to take orders.

In addition to problems, the Vienna government also needs to take responsibility.Fortunately, most of the loans are secured, and now the work of the Vienna government is to urge the Russians to implement the collateral.

Prime Minister Felix frowned and reported: "Your Majesty, we have basically estimated the contract we signed. Even if the Russians fulfilled the mortgage, we will also have to pay 38 million Aegis in the scope of the guarantee.

This money cannot be directly borne by us, the Russians must be held responsible for it.Now that they have no money, let them postpone repayment, and the Tsarist government cannot go bankrupt all the time."

Franz nodded, others' debts can be ignored, and his own debts must always be recovered.Even if there is no money, the tsarist government must first approve the account, otherwise the Vienna government will have difficulty explaining to the people.

"The Ministry of Foreign Affairs communicates with the Russians and urges them to perform their contracts. If they are unable to repay their debts, they can defer payment."

It is the uncle who owes the money, and the current tsarist government is the uncle.

It is impossible to recover debts by force. At this point, money is simply not enough for military spending.Unlike Mexico, who is so easy to bully, a bear still has strength.

The Tsarist government has no money, it does not mean that the Tsarist nobles have no money, and the accumulation of hundreds of years can support a war no matter what.

The aristocracy and the tsarist government are at the expense of each and every glory. When foreign enemies invade, they will soon be close to each other.

There are many Russian creditors. Based on the principle of bullying and fear, it is estimated that the debts of small countries will be rejected. The debts of large countries are generally delayed.

Deferred debts are also divided into three, six, and nine grades. Those guaranteed by governments of various countries must be repaid first. Non-governmental commercial loans that are not guaranteed by the government are mostly rejected if they can be relinquished.

After the pick-and-pick, the Russians reduced their external debt by at least 400 million Aegis for this campaign.If the Tsarist government is tough enough, there may be more.

Franz was gratified that the Russians had already paid back the foreign debts during the Near East War, not to mention the interest income, at least the principal was recovered.

Naturally, the debt in the Russian-Russian war was not naturally recovered.The bank with the strongest business capability also recovered at most 30% or 40% of the cost.

The Austrian government has no losses, and most of the loans are conditional. Through these two years of trade between the two countries, economic development has been promoted, and increased taxes are sufficient to compensate for the losses.

Financial institutions are different. If there is a guarantee provided by the Vienna government, it is still easy to handle. Even if the Russians fail to pay the debts, the Vienna government is responsible for ensuring the safety of the principal.

If you don't get a secured commercial loan, then you're in trouble.Financial institutions are responsible for such loans.

Phillipport is such a bad luck, he is not a banker, just the owner of a securities company.

Because of the high rebates given by the Russians, a series of bonds were sold on behalf of the tsarist government. Now the Russians declare financial bankruptcy. According to Austrian law, his securities company will bear joint liability.

A middle-aged fat man hurriedly said, "Mr. Phillip Porter, the news that the Russians declared bankruptcy must have spread. Now the people outside ask us to redeem the bonds in advance."

In this era, Austria ’s securities management system was rude. Securities companies issued bonds on their behalf and must be responsible for the people who bought them.

In simple terms, the right to audit bonds is in the hands of securities companies.This is not just a good thing, since it has the right to review, it also has to bear corresponding responsibilities.

For example: to ensure that bonds can be dealt with normally, and to explain the risks to the people who purchase bonds in advance, and the account-debt situation has occurred, securities companies need to bear certain liability for compensation.

This compensation standard is determined jointly by the securities company and the government.The standard set by the government is no less than 50% of the principal, and securities companies often set a high standard in order to solicit business.

Austrian securities companies claiming to protect capital are not one or two, and Phillipport ’s securities company happens to be one of them.

According to the promise, now that the Russians are paying their debts and are unable to pay the bonds normally, Phillipport ’s securities company will have to repay the principal on their behalf.

The promises given by oneself must be fulfilled.Phillipport regretted it now. The Russians gave up to 15%, which was not normal, but unfortunately did not resist the temptation.

Phillipport asked with concern: "Berg, how much money do we have in our accounts?"

It is impossible to run, and the police have already stared at him.If you run away, it is estimated that Austria can not be arrested.

Finding a way to recover is king, and losing money is a must.Now these bonds are obviously impossible to sell at a parity, but after discounts, some people may dare to take orders.

After all, this is the national debt issued by the tsarist government. Even if it is now bankrupt and unable to pay it, in the future, if the Russians want to re-establish credibility, it is still possible to buy back.

Ordinary people cannot see that far, or wait for so long.

Berg thought for a while and said, "A total of 3.946 million Aegis on the account, but deducting the operating expenses of the securities company, only 3.56 million Aegis can be used.

Mr. Phillipport, there are a lot of people asking for redemption in advance. This money is probably not enough to pay."

Phillipport sighed and said, "I know, first send someone out to appease the people and tell them that we agree to pay in advance according to the contract.

I remember that there was an agreement in the original sales contract. If the bond cannot be dealt with normally due to force majeure, we are indeed responsible.

However, this responsible time is after the bond expires.Now they demand early redemption, which is a breach of contract and requires a 20% penalty. We only need to pay 80% of the principal.

The news was released. After three days, we began to redeem the bonds in advance. Only one window was opened to increase the review steps and delay the time as much as possible.

I have to check the news to see if things change.Such a big thing happened, the government of Vienna cannot be unresponsive.

Rest assured, this thing won't hit us.We have issued more than 8 million Russian bonds. It is impossible for all the people to demand early redemption?

You may also ask to see if anyone in the market has bought Russian bonds. Even if we make a half-off, we may accept it."

Securities companies have always been very profitable. When he founded this company ten years ago, Phillip Porter only invested less than 300,000 Aegis, and now the working capital is just over ten times this number.

The profit dividends he withdrew from securities companies over the past few years also amounted to millions of Aegis. This crisis has caused him great losses, but as long as he responds appropriately, there is still hope to survive this crisis.

Phillipport had to be thankful that the Russians themselves had poor reputation and their bonds were not popular in the market.Otherwise, if tens of millions of Aegis were sold out at once, he would have to go to the roof.

Of course, if he can sell tens of millions of Aegis, he can't do this business.

The Austrian law is not a child ’s play. The issuance of bonds that exceed its own carrying capacity will be interfered by the government.

Otherwise, register a purse securities company, issue bonds in the market to accumulate wealth, donate and run away, declare bankruptcy after selling, can not quickly make a fortune?

Obviously, this way of getting rich overnight has been clearly written in legal astronomy.

Unlike other companies, securities company bankruptcy accountability is the most stringent.Management and shareholders are subject to strict investigation, unless all are strictly in accordance with regulations, otherwise basically no one can run away.

Strictly speaking, the bonds issued by Phillip Porter for the Russians are considered to be a sideline.

Naturally, there is no problem if there is no accident. If something happens now, if the aftermath is not done as soon as possible and the police intervene, he will most likely go to prison.