Republic of China: Ace Pilot

Chapter 111, Question 110: Accumulated Interest on Certificate-Type Treasury Bonds? First Arrival in Berlin
The deal for Farman is nearing completion.

To ensure the legality of the transaction, a company must be established in France to conduct the transaction with Farman in the name of this company.

In addition, Farman also needs to complete the aircraft scrapping process as soon as possible.

Two things happening at the same time.

Fang Wen has Chinese friends who are willing to help.

They took the initiative to inquire and find out what it took for a foreigner to start a company in France in 1933.
First, you need a name, and you must make sure that it doesn't have the same name as other companies in the same region.

This requires submitting a name approval application to the Paris Business Bureau, which typically takes 1-5 business days.

Then, the company's registered address must be a valid address within France, which can be a business place or a residential address.

Mr. Chen, who owns a restaurant on Rue au Maire, is willing to use his restaurant as the place of business registration.

Then, the prepared registration documents are submitted to the Paris Business Bureau for approval. If the application is approved, the Business Bureau will issue a company registration certificate, at which point the company is officially established and can operate.

The whole process was quite complicated and involved many procedures, but thanks to everyone's help, the company registration was completed in a short time.

Fang Wen's side is ready. There's also some activity on Farman's side.

During a 'chance' test flight, F.220 prototype No. 1 suffered an accident.

The accident report stated: the engine was damaged, and the fuselage was broken in various places, making it beyond repair.

This was originally a prototype that had lost its value. The scrapping process was approved and included in the financial statements.

Therefore, it was removed from the company's assets and became depreciation.

And so, F.220 was transferred to Fang Wen's 'Scrap Metal Recycling Company' through a transaction agreement.

The agreement requires the scrap metal recycling company to pay a total of US$18, with an initial payment of US$10 and the remaining US$8 to be paid upon delivery to the port of Kolkata.

With everything in black and white, signed and stamped by both parties, and notarized, everything was legal and compliant, and the F.220 became Fang Wen's asset.

On the day the contract was signed, Fang Wen sent a telegram home to inform his family of the matter.

Shanghai Airport, 7:30 PM, Fang Wen's residence.

Upon receiving the notification, members of Fang Wen's small group all rushed over.

They all knew something about airplanes, and while waiting for the telegram, they couldn't help but discuss it.

Sun Debiao asked with concern, "The general manager said he bought a large airplane. Just how big is it?"

“Very big, very big.” Shunzi’s reply caused laughter, and he was hit hard on the head by his father, Fang Shouxin.

Among these people, Pan Jiafeng and Shao Sishen were pilots, so they naturally knew the most, and everyone looked at them.

Pan Jiafeng quickly waved his hand: "I don't understand. Let Teacher Shao explain."

Shao Sishen stood up and looked around the courtyard.

"It's even bigger than this place, two stories high, and has the carrying capacity of four Boeing 247s."

This analogy astonished everyone. Could the host family possibly acquire such a massive aircraft?

It is said that you should love what you do. Everyone who works at Taishan Airlines naturally hopes that the company can have a high-performance large aircraft, which is the face of the airline.

Naturally, everyone started discussing it enthusiastically.

Half an hour passed quickly, and at exactly eight o'clock, everyone consciously stopped talking.

Manager Liu listened to the sounds coming from the telegraph machine, wrote down the contents on paper, and then translated them.

After finishing, he got up and handed it to Kuang Mingzhu.

Looking at the paper in her hand, Kuang Mingzhu read aloud:
"The purchase contract has been signed today, stipulating that the goods will be delivered to Kolkata. We need to send someone there to pick them up and contact the British people in Kolkata through Neil to confirm the airport departure arrangements."

Everyone got excited and was about to cheer and celebrate when Manager Liu quickly waved his hand to stop them: "There's more."

Kuang Mingzhu continued, "Domestic arrangements also need to be made as soon as possible, registering the company's assets under the name of transport aircraft, and widening the runway at the company's own airport to facilitate aircraft take-off and landing."

These telegrams contained several tasks, all aimed at preparing for the smooth arrival of the F.220 in China.

Everyone enthusiastically volunteered to take on the responsibility.

They took over all the domestic affairs.

For the overseas side, Kwong Ming-chu will be in charge. The Kwong family's connections are all in South Asia, making this the most suitable time to do it.

After the talks concluded, Fang Wen's small group went home.

Manager Liu was just one step behind. He handed a small note to the maid Chuncao: "For the young mistress, this is another part of the young master's telegram."

After saying that, Manager Liu picked up the telegraph machine and left.

Kuang Mingzhu took the note that Chuncao brought her; it read:

"Another $8 needs to be prepared and taken to Kolkata to pay the remaining balance on the plane."

Kuang Mingzhu tore up the note and muttered to herself, "I should learn how to send a telegram, otherwise I won't be able to contact my husband when I go to Calcutta."

1 month 15 day.

The date of the down payment for the aircraft transaction was also the day Fang Wen left Paris for the Weimar Republic.

Fang Wen got up very early.

Drag the wooden bed aside, tear off the wallpaper, and remove the leather bag from the wall.

Fang Wen checked carefully and found that all 300 government bonds inside were present.

He took out 120 of them and put them into his canvas bag, while he put the leather bag in his pocket and hid it close to his body.

Then put everything back in its original position.

After doing all this, Fang Wen went out and went downstairs with Lin Shuiwang and Lin Baoluo, who were waiting outside.

Many Chinese people were waiting outside the hotel downstairs to see him off.

Fang Wen said goodbye to them one by one.

Afterwards, Fang Wen and Lin Shuiwang went to a nearby notary office.

Under the witness of the notary office, Fang Wen took out one hundred government bonds and inquired about them.

"Are you willing to accept US Treasury bonds to complete the payment?"

These days, paper government bonds offer interest, are easy to store, and are more valuable than currency, so the other party is naturally willing to accept them.

But we need to verify whether it's real or fake.

To this end, the people from the Farman Company contacted a government bond trader from a nearby bank.

This assessment was made by a trader who frequently deals with government bonds.

"It's true. It's a 1928 U.S. 10-year long-term Treasury bond, which is very valuable, as it contains five years of unpaid interest."

Fang Wen was surprised. He had never been exposed to paper government bonds in his previous life, and he had not discussed government bonds with his father-in-law before leaving.

But I never expected that each government bond would also have interest included.

He suddenly realized that many people treat paper government bonds like gold and keep them safe. Who would exchange them for interest every year? The interest alone would be considered an increase in value.

No wonder government bonds are so popular these days.

He understood that this was due to his father-in-law's kindness; he wanted to give his son-in-law more so that he wouldn't suffer losses in Europe.

Thinking of this, Fang Wen couldn't help but ask:
What is the value of a $1000 Treasury bond with interest?

After calculation, the bond trader replied: "According to the calculation, a 10-year, $1000 paper bond can be exchanged for $1316."

Fang Wen retrieved 24 government bonds, keeping 76, and completed the transaction with Farman for $10.

Farsun pledged to deliver the plane to the port of Kolkata by mid-February this year and signed a supplementary cargo transport agreement.

After the notarization was completed and the Farmans people left, Fang Wen spoke with the government bond trader.

"Hello, I have some government bonds that I'd like to exchange for currency. Can your bank do that?"

"No problem, this is my job. If you want to switch now, please come with me to the bank. Only there can the transaction be guaranteed."

Immediately afterwards, Fang Wen and Lin Shuiwang followed the government bond trader to the bank.

In the bank lobby, Fang Wen took out 44 treasury bonds with a face value of 1000 yuan each and handed them to the other party.

After checking, the bond trader asked, "Based on the calculations, 44 10-year US dollar paper bond certificates can be exchanged for $57904. You can also exchange them for other currencies."

Listening to Lin Shuiwang's translation, Fang Wen thought for a moment.

If things continue to develop this way, the Weimar Republic is likely to collapse this year.

Their currency, the Deutsche Mark, will depreciate significantly in the process, rendering it useless.

The franc has a stable value, while the pound sterling has better international liquidity.

He then exchanged 44 government bonds for three currencies: the largest amount in pounds sterling, and a small portion each in dollars and francs.

After exchanging the banknotes.

Fang Wen gave Lin Baolu a sum of money.

"This money is for your expenses. Please keep an eye on Farman during this time. If there are any issues, send a registered telegram to Shanghai, and they will relay it to me." Lin Baoluo initially refused to accept it, but took it after Fang Wen insisted.

Afterwards, Fang Wen and Lin Shuiwang went to Paris Airport to take a flight from Paris to Berlin.

The plane departed from Paris and arrived in Berlin.

Fang Wen and Lin Shuiwang disembarked with the passengers.

It seemed that from the moment he set foot on the soil of the Weimar Republic, Fang Wen sensed a complex atmosphere of oppression and impending explosion.

The people here are serious and reserved; some might call them resilient.

But in Fang Wen's view, they were numb and repressed about life.

After the defeat in World War I, the people of the Weimar Republic lived in unimaginable hardship.

From 1919 to 1923, there were four years of extremely severe inflation.

There have been instances of people pushing carts filled with ten billion marks to buy a loaf of bread.

It can be said that it was exactly the same as the gold yuan issued by the later Nationalist government.

This year marks its limit; people, pushed to their breaking point, will be seduced by the mustachioed maniac's frenzied speeches and finally erupt.

As he walked, Fang Wen followed the crowd out of the airport.

He looked around; it was very deserted.

“Mr. Fang, look there.” Lin Shuiwang tugged at Fang Wen’s sleeve.

Fang Wen turned his head and looked at the sky, following Lin Shuiwang's direction.

There floated a huge, cigar-shaped flying machine over there.

Isn't this the famous Zeppelin airship from World War I?
Driven by curiosity, Fang Wen and Lin Shuiwang walked over.

There were many people watching, along with banners and people using loudspeakers to spread the word.

Lin Shuiwang, who had spent half his life on boats, was most proficient in languages, and he immediately translated the German he heard.

"Celebrating the completion of the Grafzell airship's round-the-world flight."

"Riding on the same type of airship as the Graf Zeppelin allows you to tour the sky and enjoy a variety of airship meals."

After finishing the translation, Lin Shuiwang asked, "Is riding an airship the same as riding an airplane? Should we try it?"

Upon seeing the airship in the sky, Fang Wen's first reaction was to refuse.

It was just an oversized hot air balloon; any mistake or accident could lead to irreparable danger.

He replied, “Think about it, if you fly into the sky in one of these paper lanterns, and it catches fire, or cracks open and air holes appear, the thing will immediately fall apart and fall from a height of several thousand meters.”

Lin Shuiwang shuddered and lost all interest in riding the airship.

He asked, "So where should we go now?"

"Where?"

Fang Wen didn't know how to answer for a moment.

He came to the Weimar Republic to try his luck.

But there's no idea where to go or who to see.

He thought that if he couldn't find anything in the Weimar Republic, he would try his luck in France or England.

At the very least, one can witness the rise of Mustache to power and the fall of the Weimar Republic.

With this in mind, he replied, "Let's go to the city and take a look first."

The two then searched for a vehicle outside the airport and began their journey to the Weimar Republic.

1 p.m. on January 15.

Airport shuttle buses stop in downtown Berlin.

Before getting out of the car, Lin Shuiwang spoke a few words with the driver and then explained to Fang Wen.

He said, "This is it. There's a protest ahead, and the company requires us to only drive this far."

"Where is this?" Fang Wen asked.

“Downtown,” Lin Shuiwang replied.

Berlin’s city center is very large, and Fang Wen took out a Berlin tourist map.

A 30s Berlin tourist map, in English, contains very little description of Berlin place names and only records some tourist attractions.

Lin Shuiwang said from the side.

"The driver just said this place is called Alexanderplatz. Where is the plaza?"

Fang Wen pointed to a spot on the map, "Here."

With an excellent sense of direction, he looked towards the northwest.

A tall pillar can be vaguely seen in the distance.

According to the map, that is the Victory Column in Alexanderplatz.

It is also a place for festival gatherings in Berlin.

Oh, by the way, the driver said there was a parade ahead.

It should be over there.

Fang Wen and Lin Shuiwang walked in that direction.

The pillars looked close from a distance, but it took quite a while to get there.

The closer you are to that side, the more people there are.

But people split into two camps.

Some people waved flags and shouted slogans.

Lin Shuiwang translated in a low voice: "They are shouting 'Down with fascism!'"

Fang Wen looked them over; they were all dressed smartly and looked very energetic.

But they are a minority.

More often, dressed in simple clothes and with unhealthy complexions, they stood by indifferently on the roadside.

They didn't speak, they just watched quietly.

Suddenly, chaos erupted in the distance.

A group rushed out, wielding sticks, and engaged in a chaotic battle with the protesters.

Dressed in black clothes, hats, and pants, with white Nazi symbols on their arms, they acted brutally, scattering the protesters.

At this moment, the ordinary people watching actually cheered for their actions.

See, this is a sign of the rise of Nazism.

Fang Wen tugged at Lin Shuiwang, and the two turned and left this place of trouble.

They walked for a long time, probably until they left the center of Berlin.

Lin Shuiwang pointed to the house next to him: "This should be a family-run hotel. I've stayed in similar ones before."

Fang Wen looked at the direction Lin Shuiwang was pointing to. There was a wooden sign hanging outside the door. There were no words on it, but it was a frame of a house with a knife, fork and key inside.

The two walked up the steps and opened the slightly ajar door.

Not far behind the door, a middle-aged woman sat behind the reception desk.

A little girl with curly hair ran over and asked in German.

Lin Shuiwang translated: "She asked us if we needed accommodation?"

Looks like we've found the right place.

Fang Wen and Lin Shuiwang entered the house, and Lin Shuiwang acted as the translator to communicate.

After some conversation, we rented two rooms in the hotel and also learned about the situation there.

The hotel is run by this middle-aged woman and has only four rooms: two on the second floor and two on the third floor.

The first floor is where the hotel receives guests and provides dining facilities. The mother and daughter also live in a small house at the back of the first floor.

Now, due to the economic downturn and the chaos in the city, the original tenants are moving out one after another.

Fang Wen and Lin Shuiwang are the only two guests at the moment.

With a place to live, Fang Wen finally settled down.

in the room.

He checked the time and saw that there were still ten minutes until the agreed-upon time to send the message. He then took out the telegraph machine and prepared to send the message.

(End of this chapter)