Rise of Empires: Spain.

Chapter 247 Foreign Capital (Happy New Year!)

At eight o'clock in the morning on March 1879, 3, Barcelona Stock Exchange, Spain.

It was just an ordinary day, but the Barcelona Stock Exchange was already packed with people.

The reason why these investors came to the stock exchange early in the morning was naturally that the Spanish government announced a new third five-year development plan yesterday.

Although the development plan announced by the government was not detailed, it also mentioned the construction of industry and railways. Stockholders had expected this, and the reason they came to the stock exchange early in the morning was to buy shares of the Spanish Railway Company.

Unlike other European countries, Spain has not suffered from a serious economic crisis, which also makes Spanish investors very confident about the stock market.

With the emphasis on railway construction in Spain's two five-year development plans, several large railway companies were born in Spain, the most famous of which are the Spanish National Railways and the Spanish Royal Railways.

These two railway companies with official backgrounds have become the main force in Spain's railway construction. Under them are a large number of railway companies with private backgrounds, which have also contributed their efforts to the development of Spain's railways.

Many of those waiting in line have already benefited from the last five-year development plan. After the last five-year development plan was issued, the stock price of Spanish Railways soared, and those who bought the stock made a lot of money.

It just so happened that the last five-year development plan was issued against the backdrop of the economic crisis that was raging in Europe, which prevented many people from buying stocks due to concerns about the economic crisis.

The economic crisis is now basically over. With the Spanish government once again issuing a five-year development plan, stock investors can no longer sit still. They are scrambling to buy shares of railway companies, or at least buy shares of related industries so that they can get a piece of the pie in the stock market wave.

Most of the people in the queue were ordinary people, but there were also many nobles and capitalists dressed in luxurious clothes.

Unfortunately, because the crowd had completely blocked the door of the stock exchange, these nobles and capitalists had to queue up because they could not get in at all.

"Damn, why are there so many people today?" Among the huge and crowded crowd, a middle-aged man in luxurious clothes stuck his head out of the carriage, cursing.

He was a nobleman and could come by carriage, but the problem was that the road in front of the stock exchange was completely congested and the carriage was stuck.

The noble lord was unwilling to stay with the common people, so he could only curse inwardly and then retreat back into the carriage.

"We can't help it. Yesterday the government announced a five-year development plan. These people are like cats smelling fishy smells. They all want to eat some fish. I just don't know how many of them are real fish here?" Another man in luxurious clothes in the carriage said with a smile. Although the crowd was crowded, he was not in a hurry at this time. He seemed to be in a very good mood.

"Hmph! Only nobles like us can make money in the stock market. These damn commoners can't withstand any waves. Sooner or later they will drown in the ocean of the stock market." The noble who was cursing also nodded and stopped complaining.

There were many carriages trapped in the crowd, and it was not uncommon to see nobles or capitalists wearing luxurious clothes.

In fact, this is indeed the case. Most of those who were trapped on the road were nobles with little status and power, or even just a poor baron.

These people don't have any privileges, and no matter how dissatisfied they are, they have to follow the common people and line up obediently.

Those who are truly powerful, or those who have some influence, have already entered the stock exchange before it opened, and have been respectfully invited to the VIP trading room on the second floor.

Because the crowds were too crowded, the Barcelona City Government also deployed a large number of police to maintain order. As the second largest city in Spain, Barcelona's security force is still sufficient.

With these police officers constantly patrolling among the crowd, some violent incidents and crimes can be prevented.

After all, the more people there are, the more disorder there is. In this era without surveillance cameras, theft and robbery are not uncommon in such crowded places.

Some people will even take advantage of the opportunity to take advantage of others, and as long as they are not caught, basically nothing will happen.

With the deployment of a large number of police officers, the above incidents have indeed been effectively avoided. Carlo attaches great importance to the public security order in Spain, which also leads to the public security department's heavy punishment for illegal and criminal incidents.

Even if it is just a common disturbance of public order, there will be fines of varying amounts, and sometimes even forced imprisonment for a period of time.

Such laws may be a bit harsh, but they have indeed effectively reduced the crime rate in Spain. In Madrid and Barcelona, ​​the crime rate has been reduced to a level that is completely acceptable to the public.

After about a few minutes, the doors of the stock exchange officially opened.

People did not rush into the stock exchange because there were many policemen at the door to maintain order. The stock exchange was not large, which meant that only a few people could enter at a time, and they had to queue up to enter.

Those who want to cut in line or force their way in will basically have no chance of entering the stock exchange once they are discovered by the police.

Looking at the policemen lined up at the door, people who were originally very anxious became tactful and gradually became less anxious.

Under such circumstances, people consciously lined up in long queues and then entered the stock exchange one by one.

Inside the stock exchange, there are huge blackboards with some stock exchange data written on them. Stockholders need to check the stock market data on the blackboards and then find a trader to register the transaction.

Unlike later times, all transactions on the stock exchange at this time were conducted manually, which made stock trading very troublesome and took longer than in later times.

But in an era without electronic technology, manual labor is indeed the only solution. Fortunately, the Barcelona Stock Exchange had anticipated today's grand occasion and sent additional staff in advance, which effectively accelerated the speed at which people bought stocks.

In the stock exchange, managers are registering the stocks issued by enterprises one by one. The most popular ones today are railway companies, followed by some factories and enterprises related to railways.

Railway companies were particularly popular, and it could even be said that investors would buy as many shares as the railway companies released.

A small railway company owned by the Spanish royal family also went public today, issuing a total of 200 million shares, accounting for a total of 30% of the shares.

The issue price per share is 5 pesetas, and the company plans to raise 1000 million pesetas from external sources.

The manager recorded the message and read it out loud. In addition to the blackboard, the manager's shouting was also the main way to convey the message.

After all, there is no loudspeaker, and whether shareholders can hear some key information depends on the loudness of the managers' voices.

The listed railway company was indeed a small business, and Carlo invested less than 500 million pesetas in it.

It has to be admitted that the real economy of this era was indeed profitable. After contracting several small railway projects, this railway company with an investment of no more than 500 million pesetas was able to successfully go public and raise more than 1000 million pesetas.

The shares issued by the railway company only account for 30% of the shares, which means that as long as all the shares can be sold, the total market value of this railway company, which originally invested only 500 million pesetas, will exceed 3300 million pesetas, a full 6.6 times increase.

And this is just the beginning. As long as the subsequent operation of the railway company goes smoothly and the railway company undertakes more projects, the shares issued by the company will become more and more valuable.

As the stock price rose, the railway company's market value even exceeded the threshold of 5000 million pesetas, instantly becoming a large enterprise in Spain.

To complete this step, one only needs to contract a few railway projects and list them on the stock exchange. This step is very simple for those capitalists and aristocrats, which is why the Spanish Stock Exchange has strengthened its review.

There is no way. If the review is not strengthened, the number of companies listed on the two major stock exchanges in Spain will probably reach thousands or even tens of thousands every day.

Does Spain need so many companies? Of course not.

Only high-quality companies can be listed on the Spanish stock exchange, and those empty-package companies will be eliminated by the strict review system. This is also an important means to prevent Spain from suffering from an economic crisis.

These empty-bag companies have no resistance at all when facing an economic crisis. The bankruptcy of a large number of companies will seriously affect the stock exchange. If the stock exchange collapses directly, it will affect the economic operation of the entire country.

The Spaniards obviously also know that the companies listed on the stock exchange have all been audited, so every announcement of news is accompanied by a large number of shareholders scrambling for shares, and the stocks of these newly listed companies are also constantly rising.

Although the listed railway company of the royal family issued 200 million shares, only a little over 100 million were actually circulated on the stock exchange. Long before the stock was circulated, those who really had power, namely the two major official banks in Spain and some securities companies established by dignitaries, had subscribed for part of it in advance.

Of course, they understand that this is the royal family's industry, and they also naturally understand that there are no empty contract companies for royal industries.

Investing in railway companies is a sure win because Spain will not abandon its policy of developing railways in the short term.

Although the third five-year development plan does not have such aggressive requirements for railway mileage, the railway maintenance and renovation projects are equally large, and Spanish railway companies will still be busy in the next five years.

Subscribing to stocks in advance is also a means of stock price operation. If the circulation of stocks is too large, the market will become saturated.

Once the market is saturated, stock prices will collapse even if the stocks and companies themselves are of high quality.

After all, if the market is saturated, investors will not be able to sell their stocks. If stocks cannot be sold, the stock price will naturally fall.

As a newly listed railway company, it is necessary to properly maintain the stock price. Only by ensuring that the stock market is not saturated can the stock price maintain positive growth.

The two major official banks and some aristocratic securities companies subscribed to the railway company's shares in advance, which also means that the stock price of this railway company is related to everyone's income.

This amount of money was not much for Carlo, but it was still a lot for the nobles. The new nobles also participated in this transaction. Because the new nobles did not have much land, their income was all from industry and finance.

This also made Carlo attach great importance to this listing. If the stock of this railway company could rise, it would also mean that these new nobles could get a piece of the pie and make their own family assets richer.

Both the new nobility and the old nobility are Spanish nobility, but because the new nobility was granted by Carlo himself, Carlo is obviously closer to the new nobility.

Of course, this may also be because the new nobles pose no threat to Carlo, but are instead a great help to Carlo.

The old-style nobles were too powerful in Spain, and sometimes they would not obey Carlo's orders. Compared with the old-style nobles who were not very obedient, Carlo trusted the obedient new-style nobles more, even if they did not have much power.

The prerequisite for being a good ruler is to ensure that those who follow you can share certain benefits. Even if you eat meat and others drink soup, you must ensure that everyone can drink.

The listing of the railway company was actually a gift from Carlo to some new nobles. These new nobles received the news in advance that as long as they bought the shares of this railway company, they would basically not lose money.

Of course, even if they cannot buy it, the new aristocrats will eventually be able to get some stocks because some securities companies have already subscribed for the stocks in advance.

It may not be much for old-fashioned nobles, but for new-fashioned nobles, it will be a considerable income, which can make their lives more affluent and pursue more luxurious consumption habits.

After all, they are nobles, and Carlo does not want them to live a life no different from that of ordinary people. The Spanish people have more ways to become new nobles, and new nobles are also a major means for Carlo to attract Spaniards to be loyal to him.

If the new nobility did not live a very good life, then the Spaniards would naturally not have much interest in becoming new nobility.

This also represents one thing, that is, the life of the new aristocrats must be good, at least the gap between them and the common people must be far greater.

After all, new aristocrats are also aristocrats. If aristocrats cannot even afford some luxury goods, then are these people still aristocrats?
The listing is also very important for the railway company itself. The listing can raise at least 1000 million pesetas, which will also allow the railway company to have no shortage of project funds for a long time in the future.

As long as it can ensure that truly capable railway companies obtain financing, Spain's railway development will not lag behind.

Even if a railway company goes bankrupt due to poor management, the royal family and the Spanish government will take over and provide a guarantee. In short, it will not affect Spain's railway plans.

Railway companies may still worry about the profits from building railways, but for Carlo and the Spanish government, the direct profits from railways are not that important.

Even if building a railway would result in a loss, Carlo was willing to do it because the railway would drive the development of other industries, and the tax revenues from the development of these industries would also be a potential benefit of the railway.

As the old saying goes, if you want to be rich, build roads first. Railways are of course a type of road, and they are quite important in this era.

Railway construction will also make it easier for Spanish troops to reach various regions, which is also very important for strengthening national stability.

Of course, there are also political benefits. If one region has more developed railways, while another region has no railway coverage, wouldn’t this make the people who don’t enjoy the convenience of railways angry?

Although it is impossible to treat everyone equally, at least we have to ensure that some important cities have access to railways. This is why Spain is still building railways.

If we only consider the demand for railways in Spain's large cities, the existing scale of railways is actually more than sufficient for the use of the Spanish people.

The capitals of all the regions are connected to the railway, and some of the more important cities are also within the coverage of the railway. This kind of railway construction is definitely quite complete, if not the best.

It is precisely because the potential benefits brought by railway construction are so great that many countries are willing to do it even if building and operating railways is unprofitable.

Even if operating a section of railway is a continuous loss, there will be countries willing to provide continuous funding to keep the railway running.

Because Carlo attached great importance to the development of the stock market, at around four o'clock in the afternoon, the stock exchange submitted the development of the stock market to the palace.

Butler Loren found Carlo with the stock market data of the two major stock exchanges and reported the good news to Carlo: "Your Majesty, the stock prices of our two railway companies listed in Madrid and Barcelona have increased by at least 30%.

Among them, the railway company's share price on the Madrid Stock Exchange rose by 36.7%, and by the close of trading, the share price had reached 13.67 pesetas.

The railway company's shares, listed on the Barcelona Stock Exchange, rose as much as 41.2 percent to 7.06 pesetas per share before the close of trading.

Carlo was stunned, a little surprised at the rise in stock prices.

It is inevitable that the prices of these newly issued stocks will rise, but the increase should not be so exaggerated.

After all, the number of shares issued was large. The small railway company in Barcelona alone issued 200 million shares with a total value of 1000 million pesetas.

Although only about half of the shares are actually in circulation, it is obviously impossible for them to be wiped out in such a short period of time.

Before the issued shares are sold out, the stock price should not have such an exaggerated growth. This also means that the shares issued by the railway company are likely to have been sold out. Do Barcelona's shareholders really have such strong purchasing power? Or are there other capital involved?

The Spanish can see the development potential of the Spanish Railway Company, and the capital can certainly see it as well.

Investing in railway companies is a lucrative business, so it is not surprising that it attracts some foreign capital.

Judging from the proportion of the increase in the share prices of the two railway companies, there is a high probability that there is intervention from foreign capital.

"According to the news from the Barcelona Stock Exchange, an unknown Frenchman has purchased a large number of stocks." Butler Loren said with a smile: "The French joining us sold out our stocks in a short period of time. Some shareholders even paid a higher price to buy stocks, which also led to a significant increase in our stock price in a short period of time."

When Carlo heard that the French were involved, his doubts completely dissipated.

French capital is still very strong, and coupled with the economic cooperation between Spain and France, it is not surprising that some French capital is attracted to flow into Spain.

Coupled with the fact that Spain's third five-year development plan is a hotly debated issue, it is not surprising that French capital is paying attention to Spanish railway companies.

Of course, this is a good thing for Carlo. The higher the share price of the railway company, the more profit Carlo can get. The new nobles and other enterprises that eat meat and drink soup will naturally get more profit.

5400 words two-in-one section, please support!



(End of this chapter)