My Italian

Chapter 687 Collateral

The huge casualties of nearly 1.5 million people in the Battle of Paris shocked all countries in the world. This huge number scares other countries that want to fish in troubled waters. It is too scary.

However, although the vast majority of countries have vowed not to join this **** war, there are still countries that are very happy about it.

Among them, the most important and the most influential one is the United States.

As the world's largest industrial country, the United States, protected by two oceans, is often called the chosen country.

Abundant grain and mineral resources and superior external environment have created the unique industrial foundation of the United States.

The United States has always held a unique attraction for Europeans, especially the poor. The United States brought abundant human resources and accelerated the pace of industrialization in the United States.

In particular, the outbreak of World War I caused a large number of wealthy people to flee to America, which was far away from war.

The United States, which is rich and industrialized, has become the first choice for the rich.

These wealthy Europeans who fled to the Americas brought a lot of capital and technology to the United States. Take the New York stock market as an example. After the war broke out, the New York stock market was closed for four months in response to public panic. After seeing the war getting bigger and more violent, the Americans gradually realized that this war allowed the United States to provide ammunition, raw materials, and other commodities to the warring parties, which would lead to a huge increase in public interest in stocks.

Sure enough, after the stock market opened, the stock index skyrocketed, with an increase of up to 5%, and then the stock index rose all the way. By October, the New York index had risen by 120% from its closing date, and the situation was very good. The reason why the United States is better than in history is that the Allies attacked more violently, and the European Allies suffered more losses than in history.

As for Britain, the mainstay of the Allied Powers, the Royal Navy, which was the foundation of the country, suffered two consecutive defeats in the North Sea and the Mediterranean, and the losses were not small.

Not to mention land battles, except for Austria-Hungary, which is a little more exaggerated, Germany and Italy are very vigorous, and France has occupied a large area of ​​territory. If it weren't for the disastrous victory in the Battle of Paris, the Allied Powers would have been defeated this year, and the United States would have to worry about the money it lent.

That's right, before the war broke out, Britain and France held US$3.7 billion in US debt and were creditors of the US.

After more than a year of war, the United States has not only paid off its debts, but also owed the United States 2.3 billion U.S. dollars in debt. Among them, the most owed is France, which has suffered the worst loss, with a total debt of 1.4 billion US dollars. The United Kingdom is much better, only owes 700 million US dollars, and 200 million is borrowed from Russia.

Compared with the alliance camp, the alliance camp is much worse. Since the start of the war, all of them have not even added up to 100 million US dollars.

The main thing is that the Atlantic Ocean is basically British and French ships. The German navy is trapped in the North Sea, while Italy is in the Mediterranean Sea. At present, neither Germany nor Italy has the ability to get through the Atlantic Ocean, so even if Rose wants to trade with the alliance camp, it is quite difficult.

Of course, compared with Britain and France, which have accumulated wealth for a hundred years, it is much harder for the alliance camp to earn money. This is nothing more than that it is much easier for American factory owners to put away pounds and francs.

However, it is not good to collect more pounds and francs, because on the one hand, they are devalued, and on the other hand, it is difficult for them to exchange for gold. As a gold standard society, it is a huge social problem that currency cannot be easily exchanged for gold. This will lead to a substantial depreciation of the currency, and it will also make people unwilling to accept it.

Of course, the best way is to borrow money, so after the victory in the Battle of Paris, a wave of proposals to issue national debt was handed over to Washington.

At this time, the issuance of debt by Britain and France in New York required the approval of the US government. A series of previous defeats made the debt of Britain and France unsalable in New York, even if the interest rate was raised. After all, although the people want high interest rates, they are still afraid of losing their principal.

Taking advantage of the opportunity of Paris' victory, Britain and France went all out to publicize the victory, calling it a turning point in the war. It is believed that after the victory in Paris, Britain and France obtained the code to deal with the Germans. Next, as long as this method is followed, the Germans can be driven out of France in a series of battles, and then the British and French allied forces can invade Germany and push them across the Rhine all the way to Berlin.

Of course, this is the worst situation for the Germans not to surrender. If they go well, they will surrender after they cross the Rhine, because their troops are exhausted. Fighting to consume troops, Britain and France have huge colonial armies, even if ten of these people die and wipe out one German, they will still make money.

Don't underestimate the methods used by Britain and France to guide public opinion. A defeat can be advertised as a victory, let alone a victory in itself.

So under the publicity of victory, the application submitted by Britain and France to issue bonds of up to US$1.5 billion in New York was not placed in front of President Wilson. Such a large amount of bond sales cannot be decided by a mere New York Stock Exchange.

At this time, President Wilson, who had been in office for almost two years, pondered for a while looking at the bond sale application submitted by the British and French treasury ministries.

"What's the reaction from Wall Street?"

Facing the president's inquiry, the stock exchange spoke up. "Wall Street wants to take on this debt issuance."

Wall Street must support it. This time, Britain and France have made a huge profit. It is not Wall Street's style to make money without making money. What if the bonds of Britain and France fail to depreciate or become waste paper?

This is a problem for those who buy bonds. Bonds are risky and must be cautious when entering the market. They can go to the government and ask it to help them pay by force. Wall Street is very willing to provide financing for the government.

After asking the stock exchange, President Wilson looked at the others. "Do you think this debt can be issued?"

Facing the president's words, Secretary of the Navy Josephs Daniels spoke at this time. "I don't know whether this cup of debt is allowed or not, but I think we cannot lack the ability to ask for debt."

The secretary of the Navy, a former publisher, was the poster child for a civilian navy. As soon as he took office, he rejected the request of the naval officers to set up a staff department, and believed that this was to make the US Navy Prussian. Then he suppressed the conspiracy of the Navy's top leaders and supporters to formulate naval reforms, and relieved the seven plotters in one go. Naval middle and senior officer positions.

It can be said that the submissiveness of suppressing the navy from top to bottom is quite skillful.

Of course, he also developed the navy and continued to apply for shipbuilding. Of course, in addition to expanding the strength of the navy, he also gave benefits to Benjamin Tillman (the supporter behind him), then chairman of the US Senate Naval Affairs Committee, and delivered the order to him. Enterprises in the constituency. Although it was a little slow to build a warship for the first time, the Minister of the Navy was not in a hurry, and now he was not in a hurry to go to the battlefield.

Under the leadership of this wise Secretary of the Navy, the current training level of the U.S. Navy has broken through the sky, with a loading speed that is three times lower than that of the navies of Britain, Germany and Italy, and a spread area that is more than twice as high. If others find out, their jaws will definitely drop. What kind of African navy is this?

Daniels' words made the scene burst into laughter.

At this time, Secretary of the Army Newton Barker said with a smile, "I agree with Daniels' opinion. Our Army also needs to increase its ability to ask for debts to ensure that the money borrowed can be recovered."

It is clear that the two military chiefs are asking for more military spending.

Regarding what these two said, Wilson looked at the other, Secretary of State Robert Lansing, without saying a word.

"I think this is the case now, because the UK and France's debt applications are agreed, but the amount will be reduced to some extent. In addition, we can ask for mortgages, such as Bermuda."

Well, everyone understands what Secretary of State Lansing said. If this is to take collateral.

Facing the Secretary of State's proposal, Wilson looked at the others. "What's Lansing's idea?"

"Yes, it can be done like this. At least there must be collateral, otherwise we are too risky."

"Yes, only what we can get, the American and Atlantic ones are very good."

…

Amidst everyone's discussion, the Secretary of State's words were finally approved, and then President Wilson looked at the Secretary of the Treasury, Mr. McAdoo.

"President, don't worry, I will express our attitude to Britain and France together with the Secretary of State. UU Reading www.uukanshu.com"

After receiving the reply from the Secretary of the Treasury, President Wilson looked at the two Ministers of the Navy and Army. "Your proposal is good. I will promote it for a while, and you can come up with a feasible and feasible plan."

"OK."

As for why the United States actually needs collateral, in the final analysis, the front of the treaty camp is too broken. Although it has risen up, the United States is afraid that it will wither again, so it is not surprising that it needs a collateral.

Faced with the United States' request for collateral, Britain and France were naturally unwilling. However, as the Secretary of the Treasury and the Secretary of State bite to death, if you want to issue huge debts in the United States, you must have collateral, which is responsible to the American people. Faced with the conditions that the Americans insisted on, coupled with the urgent domestic demand, Britain and France had to grit their teeth and agree. Take out the American islands and colonies for mortgage.

However, since they want to mortgage, Britain and France will naturally have to borrow more. After packing a large package of North American islands and Caribbean colonies, Britain and France will issue a debt of 2.5 billion U.S. dollars. After some haggling, it was finally reduced to $2 billion.

Since then, the issuance of bonds has been completed.

Britain and France were happier than the unhappy Americans. I'm not afraid of you being my creditor, but I'm afraid that you won't borrow.

(end of this chapter)