Holy Roman Empire

Chapter 153: Capital pours in

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The Vienna Stock Exchange, established in 1771, was the largest stock trading center in Eastern Europe in this era, bringing together investors from all over Europe.

At six o'clock in the morning on June 11, 1850, the Vienna Stock Exchange was already crowded.

It is natural that a major event has occurred that can make the investors come to line up early. Austria's largest railway company, the Austrian Federal Railways Group, is listed here today.

After such a long period of deliberation, the concept of railway stocks has long been hyped, and almost everyone believes that this sunrise industry can bring them rich returns.

A middle-aged man in Chinese clothes got off the carriage, looked at the crowd in line and cursed: "Damn, why are there so many people today, are they rushing to Gehschei?en!" (eat shit)

His actions quickly aroused people's glares, and the young police officer who maintained the order came over and said dissatisfiedly: "Sir, please pay attention to the quality, this is a high-end place, and the use of swear words is prohibited."

The man in Chinese clothing shut up obediently, he knew that if he continued, he might be charged with disturbing public order.

In normal times, it doesn't matter. It's a big deal to go to the police station and swear a few swear words. It's not a serious crime at all, and you pay a fine and you're done.

But not today, new stocks have always been the favorite of investors, not to mention railway stocks with infinite potential. If you miss today, you will not be at the same price if you want to buy them again.

Seeing his reaction, the young policeman left with satisfaction.

There will not be any big people queuing here, and the real big people will directly enter the VIP trading room upstairs.

The most important thing in Vienna is the rich and powerful. Don't look at these inconspicuous little police officers, they may be the offshoots of a certain noble family.

In fact, this point can be understood by looking at the temperament. The upstarts and the nobles are incompatible when they stand together, and they can be distinguished at a glance.

Time passed by, and the door of the trading floor opened on time at eight o'clock. Although everyone was in a hurry, they did not rush in.

The rules are very important here. Look at the police standing in a row in front of you. Everyone doesn't want to be invited to the police station for tea. If you miss the trading time because of this, you will only cry.

In this era, there is no Internet, no electronic displays, or even electricity, and all transactions are carried out manually.

There are big blackboards on which the staff write data. Investors look at the data above and decide whether to go to the trader to register the transaction.

At this time, a stock exchange manager came out and shouted: "The Austrian Federal Railway Operation Group is listed on the Vienna Stock Exchange today, and the company's total valuation is: 100 million rupiah.

A total of 3 million shares have been issued, accounting for 30% of the total share capital. The issue price per share is 10 rupiah. It is planned to raise funds of 30 million rupiah. Interested friends are welcome to snap up. "

His voice just fell, and then another staff member repeated in the crowd, trying to let everyone understand the information as much as possible.

There is no way, communication in this era is just by shouting, if the voice is not loud enough, I really can't eat this bowl of rice.

The transaction has already started. Although three million shares are said to be issued to the public, there are definitely not that many shares in circulation on the stock exchange. Banks and stock companies have subscribed part of it in advance.

This is also the most common way to raise stock prices. If there is too much liquidity and the market is saturated, even high-quality stocks will also collapse.

Many people pay attention to the stock price, which is related to everyone's investment. The stock price of the Austrian Federal Railway Operation Group will directly determine everyone's income.

Even Franz attaches great importance to this listing. If the Federal Railways stock skyrockets, then Austria will not have to worry about the construction of large railways in the future, and the capital market can solve the funding gap.

As long as the railway is repaired, the efficiency of the railway company has nothing to do with Franz.

Can't operate? It doesn't matter, the Austrian government doesn't mind taking the bottom line.

The big deal is that a decree will be issued at that time, and if the railway company cannot guarantee normal operation, it will be nationalized. Anyway, the unprofitable railway is the scrap iron repurchase.

On this issue, the standards for judging value by the government and enterprises are completely different.

For the government, railways do not need to make money, as long as the convenient transportation will drive the development of other industries, the taxes paid by these industries are also profits.

There are also political, military and other benefits, which must also be counted. This is also why many railway lines are in a mess in future generations, and governments of various countries will still allocate funds to maintain the normal operation of railways.

Schönbrunn Palace in the evening

"Your Majesty, as of the close of trading this afternoon, the Austrian Federal Railways Group's share price has increased by 56%, and the closing price is 15.6 rupiah per share." Johann Stewart said excitedly.

There is no doubt that the profitable business of the stock market, as the most influential Royal Bank in Austria, how could it not intervene

For example, the listing of the Federal Railways, aside from other things, the handling fee for the issuance of shares is hundreds of thousands of rupiah, although this kind of big business is done jointly by everyone, the share is not a small sum.

Of course, the handling fee is only a small income, and the real profit lies in being a bookmaker. The stock market management system in this era is not perfect, leaving more room for the bookmaker to operate.

The plate of traditional industries in the financial market has long been divided up. Under normal circumstances, everyone will not rashly cross the line. Otherwise, you will sweep my plate today, and tomorrow I will smash yours. No one should think about it. make money.

Emerging industries are different. Now is the time to staking a horse. Even the financial giants are helpless in the face of the sudden entry of Royal Bank.

Stewart is also in the financial circle. Knowing this so-called rule actually depends on the background first, then the capital, and finally the ability.

The capital of Royal Bank is definitely not comparable with its peers. The trading ability is only a newbie but also a veteran, but can't stand the backstage

That being the case, then everyone can only cooperate.

As the first trader, it was undoubtedly a good luck that the stock price soared, and Stewart was naturally excited.

Franz joked: "You guys did a good job, it looks like you got your year-end awards this year."

Once the management system is established, it can't be messed around randomly, like the kind of random bonuses that are taken for granted, which is impossible for Franz.

Now that there are rules and regulations, it must be done in accordance with the rules. What kind of performance is made, how much is the reward.

Everyone is happy about spamming bonuses in the short term, but after a long time, you will find that it is easy to break the rules and difficult to re-establish them.

Not all projects are equally profitable. Some projects are laborious and labor-intensive, and there is no return in the short term, but someone needs to do it

The boss breaks the rules, and the trouble it brings to the management is undoubtedly huge, and some have no way to make up for it.

Railroad stocks soared, and the global economy has something to do with it. Since the outbreak of the British economy in 1847 and the detonation of the European Revolution in 1848, the world economy has experienced recessions to varying degrees.

By 1850, the world economy had come out of the crisis and began to grow periodically, and Austria's economic growth rate was still higher than the world economic growth rate.

The large railway plan launched by the Austrian government has attracted capital from all over Europe, and the influx of a lot of hot money has naturally caused the stock price to skyrocket.

For these capital Franz has always been open to anyone, money is not sinful, who cares who his master is

He even pretended not to see that someone bought the railway company's stock from shareholders, as long as the tax was paid to the government, these are all legal acts.

In this era, the Austrian government did not have the idea of rejecting foreign capital. At the critical moment of industrialization, a large amount of capital was needed.

Just using local capital, who would have known that the industrialization would be completed by that year? It is impossible for Franz to refuse to be able to use foreign capital to speed up this progress.

Just think that the British invested in the construction of American railways, and they built more than 30,000 kilometers from 1848 to 1858. Naturally, they lost a mess in the end.

You must know that in this era, the population of the United States is only two-thirds of Austria's, and the land is so sparsely populated that it is disintegrating. From the perspective of investment, Austria's railways are obviously more economically valuable.

It is not surprising to be able to divert some of the funds, but Franz still underestimated the extent of the capital surplus of the British.

As the first country to complete industrialization, the British took advantage of this time difference to make a lot of profits from all over the world, and these profits were converted into cash and poured into the UK.

Too much money will always be used out, but the colonial expansion of the British is still in progress, and rebellions occur from time to time, and the risk of investing in colonies is too great.

This money is looking for a market all over the world. In this context, the large railway plan launched by the Austrian government has attracted their attention.

Just a little analysis, you will find that the population density of Austria is ten times larger than that of the United States. Since the Austrian government completed the reform, the domestic economic development speed has embarked on a fast track.

Even the United States, which is far on the other side of the ocean, and the British capitalists have not let it go, and Austria, which is close to Europe, naturally cannot be let go.

A lot of hot money is pouring in, and it's not just going to the railway industry. The agricultural product processing industry and manufacturing industry supported by the government have been favored by capital.

By the second half of 1850, the Austrian economy had shown an explosive growth, with almost every industry growing savagely.

In this era, the government rarely directly intervenes in the market, and everyone does not yet have this awareness.

Franz knew that this kind of economic development was very unhealthy. If it was not restricted, Austria would have an economic crisis due to overcapacity in a few years.

Should you limit it? Franz hesitated at this moment. The economic crisis brought heavy losses, but the explosive economic growth also led to the great development of Austria's industry and increased Austria's national strength.

This is also commonly known as a reckless wave. In a short period of time, the production capacity has been expanded wildly. When the development reaches the limit, an economic crisis will occur.

After hesitating again and again, Franz decided to wait and see. Anyway, this just started to break out. Is it still early before overcapacity

The world economic crisis has just passed, and it will not break out again in a short time. Since the danger will not come, it is too late for the government to intervene before the limit is reached.

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