Persian Empire 1845

Chapter 398 London Stock Exchange
The London Stock Exchange has experienced a period of volatility these days, with tin mining stocks falling while prices for coal, iron, and military equipment have risen.

The Malayan crisis in the Far East made many people rich, earning thousands or even tens of thousands of pounds with a single transaction. However, most of those who invested in tin mining stocks lost everything and had to quietly withdraw from the stock market.

"The recent problems in Malaya have made a lot of money for many people."

In the exchange's VIP room, several people were discussing the events of the past few days.

"However, Iran is quite formidable, openly confronting our country and the Netherlands. Their courage is commendable, but it's only temporary; they will soon submit."

Everyone nodded. In their eyes, Iran was just like those countries and tribes that had rejected British goodwill. A simple bombardment with cannons would be enough to make them surrender. If they still refused to compromise, they could simply set up cannons in the capital, leaving them no choice but to surrender.

"Oh dear, tin prices have fallen again." Someone got the latest stock prices.

"As expected, tin reserves will soon decrease, and prices will skyrocket. Those selling now are just unlucky ones who can't afford it; only we will have the last laugh."

Tin prices have fallen below £1, and like a rubber band, they are poised for a massive rebound.

In another room, two people were watching the panicked sell-off below. To some, their frantic expressions presented a lucrative opportunity.

"I didn't expect Mr. Gahraman to be so interested in stocks. If you're comfortable with that, why don't you entrust it to me? I'll double your principal."

The other party smiled and shook his head, "Mr. Rothschild, you flatter me. I was just a little lucky. If anyone is influential in London, it's definitely you and your father."

Lionel Rothschild, son of Nathan Rothschild, was someone Nathan was very attentive to cultivating in his sons' skills. In 1833, the British government borrowed £2000 million from the Rothschild Bank. Nathan entrusted Lionel with the management of this loan, and the process was a great success, which brought Lionel a prominent reputation in the British financial world.

In 1847, he was elected as a Member of Parliament for the City of London constituency, officially entering the political arena and beginning to exert his political influence. However, he was more interested in finance than politics.

"I'm just a small-time banker who got to where I am today by sheer luck. But I'm curious about the situation in your country in Malaya, since the sounds of war can be heard every day in London because of this."

Galahman laughed and said, "It's normal for there to be some friction between countries. Napoleon conquered most of Europe through war, but he was still driven to a small island by the British and spent the rest of his life there."

“That’s true,” Lionel nodded. “But have you noticed that of all the stocks, tin mining has suffered the most? And according to my investigation, some people are looking at tin mining acquisition contracts.”

"This situation should be quite common."

"Yes, but you should know that the tin mining contract is worth £120 million. To be able to come up with so much cash in such a short time, there must be supporters behind it."

Looking across the UK, Barings Bank, the second-largest bank, only has £50 in its accounts, and that's not even all at once. France, Prussia, and Austria are even less significant. For Iran, a newly emerging nation, to be able to come up with over £100 million must be due to Shah support.

"You're so clever, you must already know who it is, right?" Ghahraman sipped his tea from the Far East. "So what do you think I'll do? Report it to the Prime Minister, report it to the Queen? Haha, I learned a lot from my father, the most important thing being that money has no homeland; we just need to make money."

"Yes, all you need to do is make money. You must be making a lot of money in Europe and America. Countries depend on you and your bank loans to survive. Even the Ottoman Sultan is no exception."

Following the 1848 Revolution and the Crimean War, borrowing from Rothschild Bank increased for various countries. Italy alone received £800 million in loans, France and Austria received over £1000 million, and the Ottoman Empire also received loans.

“I understand that your bank wants to make money in London. However, I would prefer that we cooperate, for example, in investments in Austria and the Ottoman Empire.”

Iran's investment of over £1000 million in the Ottoman Empire and Austria has suddenly attracted the attention of banks worldwide, as it suggests that Iran has even more funds waiting to be invested. Imagine the annual remittance returns if the Shah could invest in European countries.

"I'm sorry, this requires the Shah's approval, but I believe the Shah would be happy to cooperate with you. But for now, let's just watch these people's revelry; after all, these are their last good days."

"makes sense."

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The Vienna talks continued, but the second and third days yielded no results. None of the three parties were willing to concede, but they all began various behind the scenes.

The Dutch government announced it would mobilize 3 troops, and three British warships would depart from Portsmouth for Singapore. Meanwhile, Iran has also prepared for war.

Russia added fuel to the fire, with Alexander II declaring his support for the just actions of Britain and the Netherlands, and saying that he would provide 20 troops if necessary.

This has led many to believe that war will eventually break out, and unlike Crimea, Iran lacks the support of Britain and France and will quickly fall. Then, it will be another frenzy for capital.

But ordinary people only need to shout slogans based on their emotions, while the government has to think much more. They struggle even with uncivilized countries and tribes, let alone Iran, which has already entered the initial stage of industrialization.

Moreover, Iran is now united. Unlike the Ottoman Empire, which was fragmented, Iran's finances will collapse if it cannot surrender within three months. Furthermore, guerrilla warfare would be even more costly.

"The Prime Minister has sent a telegram saying that if war really breaks out, they will need to prepare £1200 million, which is not feasible for our economy."

Lord Russell was certainly aware that the nation was in dire need of funds. The stench that had plagued London since 1858 had forced them to rebuild the city's drainage system. Furthermore, investments in the colonies required funding, not to mention the £2800 million in interest payments on the national debt. Minister Gladstone was forced to seek revenue again, perhaps by further increasing the national debt.

"But Iran is not compromising at all right now. I heard the London Stock Exchange is in a frenzy. Those businessmen can't wait for the fighting to start so they can continue to make money."

Lord Russell felt he had never encountered such a formidable opponent, but with news from Malaya and the British mainland growing increasingly worse, how could he possibly negotiate?
(End of this chapter)