Wild North America 1846

Chapter 395 Two Good News

"Your Majesty, I think Argentina will soon fall into its own big trouble, and has neither the energy nor the ability to expand to its southern neighbors. However, Chile has already taken the first step. The imperial government has given a warning to this, believe them Can understand the meaning of negotiations." Prime Minister Liu Xianjunhui reported.

"It's just a small country in South America, don't worry about them." Li Cha waved his hand and said with disdain.

Argentina, which is dominated by descendants of Spanish white immigrants, has many foreign troubles and internal strife.Buenos Aires and other provinces have sharp internal conflicts. One side hopes to establish a central power state, while the other hopes to establish a federal state with great autonomy for each province, so as to avoid being dominated by Buenos Aires Province Right, the struggle between the two sides has been fierce.

The important thing is
The relationship between Paraguay, Brazil and Argentina is very tense. As a landlocked country, Paraguay has always hoped to have access to the sea since independence. This desire was jointly suppressed by Brazil and Argentina. Disputes between the three parties continued, and they almost met each other with swords.

Speaking of the troubles in Argentina, all the ministers present laughed.

Everyone knows
The relationship between Argentina and its neighbors is not very good. A few years ago, it just fought a war with Bolivia in the northwest. Fortunately, it won and cut a large piece of land from Bolivia.

Today, Argentina has hostile relations with Paraguay in the north and the Mapuche in the south, and the relationship with Chile, its neighbor on the west, is also tense. The surrounding situation can be described as a mess.

In particular, the Mapuche were not weak. If Argentina had not possessed more advanced weapons and its overall combat effectiveness was higher, it would be time to worry about the invasion of the Kingdom of Patagonia.

in the original history

After the Argentines solved the troubles of their neighbors, it was not until 15 years later that they launched the second desert expedition, which completely solved the enemy of the Kingdom of Patagonia and expanded the southern territory to Tierra del Fuego.

Now, there is definitely no such opportunity.

Chang'an City

Over the past year, many new changes have taken place on the broad streets of Chang'an City. The trams running from south to north have replaced horse-drawn public carriages and become the main force of urban public transportation.

Because of its convenience and low cost, trams quickly spread in various cities of the Tang Empire and became a beautiful landscape in the city.

Relying on the tram industry, Datang Empire has rapidly developed dozens of tram factories. Today's products have received orders from many continents, and the momentum of development is very bright, and this has become a new industry in the empire.

Innovating in many fields, the development of the Datang Empire in the chemical and electric power fields has become increasingly prosperous, and it has become an advanced country leading the second industrial wave, and its performance is very eye-catching.

And this is inseparable from the vast market of Datang Empire, sufficient financial support and a policy environment suitable for the development of scientific and technological talents. In suitable soil, more scientific and technological inventions have been bred.

There are also cars with novel shapes appearing on the streets, and these expensive cars are often driven by some aristocratic children, attracting a lot of attention.

Compared with the rapid popularity of trams, new things like cars have been around for several years.The Datang Empire also has more than a dozen automobile manufacturers, producing automobiles of various shapes.

However, most of these cars are expensive and have low driving reliability. They are often playthings in the hands of those aristocratic children who like to try new things, and there is still a long way to go before popularization.

After the North American War

The Tang Empire has truly ushered in a golden period of economic development. The expanded market demand has brought opportunities to all walks of life. With the money in hand, the imperial government has also expanded the scale of infrastructure construction, thereby creating more employment opportunities. .

After the war, the Datang Empire enjoyed high annual loan principal and interest repayment income from the United States of America and the Confederate States of America. This amounted to tens of millions of yuan each year, which greatly enriched the financial strength of the empire and allowed the government to have money to do more. many things.

The royal family of the Tang Empire extensively participated in the investment in banks and important mines, weapons industry, emerging power telegraph, petrochemical and steel industries, and controlled a large number of important enterprises related to international people's livelihood, so it became the richest royal family in the world.

The huge investment in the North American War in the early stage produced a steady stream of generous war dividends in the later stage.

The changes visible to the naked eye are the launching of a large number of municipal construction projects, the widening and asphalting of roads, the construction of more bridges and reservoirs, the construction of dozens of thermal power plants across the country, and the asphalting of main roads in developed coastal provinces. Roads and rural feeder roads were also repaired and tarred.

Double-track projects were generally launched on main railway lines across the country, more roads connected coastal and inland provinces, and wireless telegraph companies were also greatly developed.

In particular, the Royal North American Telegraph Company is planning to lay a submarine cable connecting Europe, and this will be an eye-catching super project that has the ability to change the current situation of lagging transatlantic information transmission between Europe and the Americas.

After the beginning of spring in 1863, the Tang Empire received two good news successively.

The first is that after more than one year and seven months of negotiations, an agreement was finally reached on the acquisition of shares in the Appalachian coalfield. Investors led by Royal Red Oak Bank and Royal Changan Bank made a package investment commitment worth 1 million yuan , in exchange for a 4.3% stake in the above-mentioned coal field.

This includes investment in mining machinery and equipment worth no less than 5000 million yuan, which will help increase the annual output of the Appalachian coalfield from the current 3800 million tons to 5600 million tons, greatly increasing the income and value of the coalfield.

Another cash investment worth 3.8 million yuan was used to repay and replace the high-interest loans in the hands of usurers such as Britain and France. This is also an important part of the debt restructuring of the United States of America.

through the above means
The United States of America (Northern) can reduce the total amount of 13.75 billion international high-interest loans to less than 10 billion, reduce the overall loan interest rate to an average annual level of 5.6%, and bring the overall debt into a sustainable range.

This move is conducive to stabilizing the high inflation in the United States of America, stabilizing the country's financial situation, laying the foundation for the issuance of new dollars linked to the Tang Yuan, and completely solving the hidden dangers of high social inflation and the prevailing dollar phobia.

More than 10 Imperial Bank investors led by Royal Red Oak Bank and Royal Chang'an Bank provided cash worth 3.8 million Tang Yuan, which was mainly settled by bank loans. These powerful big banks have enough means to use Alaba It only takes time for the annual income of the Chia coal field to fill the debt hole.

After the production of the Alabachia coalfield reaches 5800 million to 6000 million tons, the gross profit is close to [-] million, and the profit level is even higher.

It is estimated that within 12 to 13 years, all investment costs can be recovered, and stable high dividend income can be enjoyed.

Through this move, the Datang Empire further deepened its economic control over the United States of America. After controlling the eastern railway network, central railway network and major coastal ports of the United States of America, this is another major economic penetration action.

In addition, the powerful imperial banking industry is still sparing no effort to control the Wall Street banking industry and penetrate at a relatively low price. It has successively controlled a series of banks such as Bank of America, Bank of New York, Citibank, and World Bank, and has mastered the right to speak on Wall Street.

Besides
Since the Tang Empire held a huge war indemnity claim with a total amount of 5 million Tang yuan, and thus controlled the customs of the United States of America as collateral, it actually controlled the country's finances, so it had a decisive influence.

During the entire 25-year principal and interest repayment period, calculated on the basis of an average annual interest of 5.5%, the United States of America has to repay a huge principal and interest of up to 3070 million yuan every year, which is an astonishing figure.

The shortfall can only be solved by borrowing.

This means that even 25 years later, the United States of America will still have difficulty escaping the debt trap, and has to endure the terrible situation of pumping blood every year to feed back the economy of the Tang Empire, and its citizens are facing high tax squeeze.

This is also the original intention of the government of the United States of America having to sell high-quality assets in a large amount in an attempt to reduce the total debt.

After the overall economy recovers slightly, the government of the United States of America plans to continue selling assets in order to reduce the debt principal and interest paid to international loan sharks such as Britain and France.

Another piece of good news came from the Confederate States of America. Out of the same considerations, after intense political competition within the Confederate States of America, they finally passed a parliamentary vote with a narrow majority to sell Texas to the Datang Empire.

No way, the debt burden is too heavy.

The Confederate States of America, which won the war, found that they could not afford to repay the high war loan of 5.8 million yuan owed to the Tang Empire (the debt of 3.75 million yuan has been removed and transferred to the Yankees). Let alone 25 years, it is 50 million yuan. I can't afford it all year.

The Confederate States of America had a typical agricultural economic structure. Compared with the industrial and metropolitan trade economic structure of the Yankees, its solvency was worse, its profitability was lower, and the government's annual income did not exceed ten million yuan.

However, more than 3400 million loan principal and interest have to be repaid in one year, which is really unaffordable even if it is sold.

Reluctantly persisted for a year, and finally repaid the principal and interest of the loan for one year through a new debt of 2900 million.

This year the Confederate States of America had a very painful time. Almost all the troops were demobilized, and government expenditures were reduced to a very pitiful level. Any government investment was completely rejected, and they dared not spend any money.

Even so
It's just less than 500 million yuan, and this amount of money is a drop in the bucket for the huge loan principal and interest.

Thinking about living a hard life like this for 50 years or more, those congressmen and hardliners in the Confederate States of America who boasted about insisting that the interests of the Southerners and the territory were inseparable were the first to collapse.

The words are tough, but the body is honest.

So the wind shifted quietly, the voices of fierce opposition disappeared, and the rhetoric for selling Texas rose.It seems that not to sell this state is to make things difficult for the southerners, to be unpatriotic, and to be a rebel and a spoiler in the eyes of everyone.

The rest of the negotiation with the Tang Empire was full of twists and turns. The attitude of the Tang Empire was very ambiguous. If you want to sell it, I don’t necessarily want to buy it?

And that... how about the price?
The two sides have been arguing repeatedly for more than half a year, mainly because of the price. The Confederate States of America are really poor and crazy, and they are clinging to the price of 2.8 million yuan.

In the end, it was the Emperor of the Tang Empire, Richard, who personally invested 2.8 million yuan to buy Texas in the name of the royal family.

In fact, he was left-handed and right-handed, because the huge loan to the Confederate States of America came from the Royal Holding Bank. Since most of them were delivered in kind, the price was very high.

For this huge loan of 2.8 million yuan, it would be nice to be able to pay 5000 to 6000 million in kind.

Now spending money to buy it back is equivalent to going around the bank account, canceling the 2.8 million debts of the Confederate States of America, and just doing an account without paying actual funds.

Richard knows that Texas is rich in oil and gas resources and mineral resources, and the money will come back in a year, and it will definitely not be a loss if you buy it.

Thus

The scope of the Datang Empire includes Texas, the territory directly under the royal family, which has also become the 39th provincial administrative division of the empire, increasing the area of ​​the Datang Empire by 69.6 square kilometers, with a total area of ​​1082 million square meters kilometer.

Following these two major transactions, the Confederate States of America (South) successively sold some railway construction rights and ports. A total of more than a dozen transactions reduced the country's total debt to 2.52 million yuan.

After the above operation

The Confederate States of America (South) need to repay the loan principal and interest of 2.52 million yuan per year. Based on the preferential interest rate of 5.2% per year, the average annual repayment of principal and interest has dropped to 1450 million yuan, which is close to the limit of tolerance.

Since there were no other major products to sell in the country, the Confederate States of America could only count on the introduction of new populations, the expansion of cotton production and slave plantations, and the squeeze of more profits from black slaves to repay, but no other way.

The shadow of debt will also become a long-term headache for the Confederate States of America. As the founding father of the two consecutive Confederate States of America, Jefferson Davis has completed his historical mission and become an immortal great figure of the new country.

His statues will be erected all over the Confederate States of America, and Richmond is also busy preparing for the construction plan of the Presidential Memorial Hall. President Jefferson Davis has completed the sacred mission entrusted by history and will soon be retired.

And his successor is General Robert Lee, who won lofty honors in the North American War. This person has already won the presidential election and is sure to become the next president of the Confederate States of America, thus completing the historic inheritance.

After selling Texas, the Confederate States of America can easily face the future, which makes them breathe a long sigh of relief.

As for the huge loan principal and interest of more than 1450 million to be repaid every year, it will be a headache for the next government.

Thinking optimistically, when the economy develops, the population grows, and the tax power increases, there will always be a day when the debts will be paid off.

The Confederate States of America did not mortgage the customs to the Tang Empire, and they were not obsessed with repaying debts, nor did they feel oppressed, so they just let nature take its course.

Take a look at the hard-working neighbors in the north, it will make you feel better.

(End of this chapter)