Holy Roman Empire - Chapter 292

Chapter 292: Chapter 41, The Depressed Stock Market

For the common man, an economic crisis is a disaster, but for capitalist magnates, it represents an opportunity. Franz is now one of these big players, harvesting in the capital market.

As Emperor, he still paid attention to appearances, avoiding ostentation or making others comfortable in unorthodox ways.

Money can never be completely earned; there’s no need to sully one’s reputation for profit. Hostile reactions are certain when taking over businesses, but merely investing in them is different.

Everyone is short of cash now; how could they possibly refuse investment? The concept of investment companies had already been developed by Franz ahead of time.

Human energy is limited; even with a mature management team, it is not possible to expand indefinitely.

In such circumstances, it has become imperative to divest from non-core industries. As long as profits are secured through effective supervision, there’s no need for majority control.

Looking at the thick stack of acquisition cases in his hand, Franz was filled with emotion. Any single page represented a goal beyond the reach of ordinary people, yet now they failed to pique his interest.

After listening to the report, Franz said calmly, “Stop investing in the textile industry; the British advantage here is too strong. It will be at least twenty years before we can shake their position, and there’s no need to continue this cutthroat competition.

Focus instead on metallurgy, shipbuilding, mining, and machinery manufacturing to increase our economic influence.

The stock of the Canal Company will be issued soon. Send someone to buy it secretly, both domestic and foreign. As long as the stock price doesn’t double, we can sweep it up.”

Making money for the royal business is one aspect, but it’s also imperative to increase influence on the domestic economy as a precaution for the future.

Franz even subconsciously drew some nobility into forming several financial consortia, not just one.

Of course, officially, these consortia had no relations with each other; they were typical business groups that competed with one another.

Everyone is professional when it comes to using proxy; there are many ways to make a name for oneself without standing out on this front.

Junker served the Habsburg Family, his loyalty stretching back seven generations, making him one of the main persons in charge of the royal industries due to his strong capabilities and trustworthiness.

Junker warned, “Your Majesty, investing in the Canal Company is very risky; it’s too early to enter the market now. It would be more prudent to wait a few more years.”

At a certain level of capital, the importance of being the first diminishes. Even if one enters the market late, ample funding can still pave a way forward.

The investment in the Suez Canal is substantial, and its successful completion is uncertain, with political uncertainty being a part of the equation.

The Egyptian Government originally held fifteen percent of the shares, but with Austria’s participation, this stake was converted into a profit-sharing right. In name, France, Austria, and Egypt jointly managed the canal, but in reality, the Egyptians had been sidelined.

Bear in mind, the British opposed the construction of the Suez Canal. Who can ensure that, in the event of John Bull’s sabotage, the Egyptian Government won’t cause trouble for their interests?

Without the local serpent’s cooperation, where would the canal construction find so many free laborers? Even enslaving Africans from the continent incurs costs.

Clearly, like most people, Junker was unaware of the determination of the governments of France and Austria to dig the Suez Canal; otherwise, he wouldn’t have had such concerns.

As long as France and Austria remained resolute, the Egyptian Government would not dare to act rashly. If relations soured, the British could not protect them.

John Bull is not a good ally; it’s improbable to sacrifice for allies, but there’s a great chance to backstab them instead.

Franz explained, “Don’t worry about the project; the Suez Canal is crucial to the future strategies of France and Austria. We won’t give up on it.

Once the canal was open, our journey to the Indian Ocean would be greatly shortened, and we would also free ourselves from dependence on the Strait of Gibraltar.

There was even less need to worry about profits. Maritime trade was growing at a very fast rate, and in the future, this Golden Waterway would be the most profitable canal in the world.”

Seeing that Franz had made up his mind, Junker didn’t continue to argue. Investment in the Suez Canal seemed huge, but when broken down, it wasn’t much of an issue.

If the royal family wanted to invest, it was just a matter of a few million Divine Shields, and even if there were any accidents, they could cover for it. If they wanted to buy more shares, it wasn’t possible anymore, as Franz wasn’t the only one with foresight.

Moreover, for some shipping magnates, even if the Suez Canal didn’t make money, they had to get involved because it related to their future development.

At the Vienna Stock Exchange Center, a place that used to be bustling with people, had become deserted after the economic crisis.

For a good half year, there were no new stocks listed here, and stock traders had become listless, with no trades, how could there be any commissions?

The manager of the exchange, Mark, cursed angrily, “A bunch of lazy bones, all of you gather over here!”

“Eugen, you idiot, didn’t you hear me speaking? Stop sleeping!”

As he spoke, his foot had already kicked out.

“If you don’t want to be unemployed, then get spirited.”

When Eugen heard the word ‘unemployment,’ he immediately awoke from his drowsiness. In the midst of an economic crisis, losing a job meant that hard times were coming.

Seeing that people had snapped back to attention, Mark sternly said, “Listen carefully, everyone. The Suez Canal’s stocks will be listed on the exchange in three days. Start preparing now. If anyone screws this up, I’ll skin them.”

Days without business were tough, and now, not only were there no new stocks listed, but even the previous stocks were mostly locked-in, the type with a price but no market.

The listing of new stocks signified an end to the winter, an occasion the exchange center could not overlook.

Austria had more than just one stock market; Vienna alone had four exchange centers, and the entire New Holy Roman Empire had dozens of large and small stock exchange centers. There was competition among them.

Eugen asked in confusion, “Boss, isn’t the Suez Canal a government project? Why is it raising funds in the stock market?”

Mark glanced at him and said, “That’s none of your concern. What you need to do now is to inform those big clients about this news and work hard to convince them to buy the stocks.”

After feeling humiliated, Eugen decisively chose to keep his mouth shut. As a top stock trader, he had many privileges, such as sleeping during work hours and leaving early – but challenging the authority of superiors was certainly not one of them.

In an era without phones or cars, where travel relied on walking and communication on shouting, informing all the big clients within three days was by no means an easy task.

If it were a hot stock market period, they wouldn’t need to notify people personally. Simply publishing the news in the newspaper would have customers flocking to the doorsteps.

The situation was different now. The market was filled with cries of distress, countless stocks were locked-in, and people were worried about making a living. Who had the time to care about new stock listings?

This meant that the Suez Canal’s stocks would struggle to fetch a good price on the market, and they might even fall below the issuing price.

Under normal circumstances, no one would choose to list stocks at this time, and this was precisely why Eugen was puzzled.