Make France Great Again-Chapter 930 - 921: Harvest Crisis

The servant who delivered the invitation returned to the Tuileries Palace to report back to Bashirio and informed him that Baron James Rothschild had returned to Germany.

"What? Baron James Rothschild has left?" Bashirio, upon hearing that Baron James Rothschild had already left Paris, displayed an expression of surprise and said to the servant.

"Yes, Chief Steward!" the servant dutifully responded to Bashirio.

"Since Baron James Rothschild has already left, then how did your invitation reach him!" Bashirio continued to ask.

"Chief Steward, although Baron James Rothschild has departed, his son, Alphonse Rothschild, has not left!" the servant responded to Bashirio.

"Oh, right!" Bashirio suddenly realized, "Look at my memory; Alphonse Rothschild is still there!

Well then! You may return to your work now!"

Bashirio waved his hand to dismiss the servant, then proceeded alone to the study to report the situation to Jerome Bonaparte.

Standing at the doorway, Bashirio gently knocked on Jerome Bonaparte’s door. At this moment, Jerome Bonaparte was sitting on the sofa, continuing to read the newspaper.

Bashirio’s appearance prompted Jerome Bonaparte to put down the newspaper in his hand and inquire, "How did it go? Was the invitation delivered?"

"Your Majesty!" Bashirio replied to Jerome Bonaparte with his head lowered, "The invitation has been delivered to James Rothschild’s residence, but Baron James Rothschild is no longer in Paris!"

"No longer in Paris!" Jerome Bonaparte put down the newspaper in his hand and turned towards Bashirio: "Where did Baron James go? And if he’s not in Paris, why did you still deliver it?"

Bashirio first informed Jerome Bonaparte that James Rothschild had gone to Germany, and then told him that the current head of the Rothschild family is Alphonse Rothschild.

"Oh! Oh!" Jerome Bonaparte expressed an enlightened expression, then praised, "Alright! The matter was handled quite well!"

"It’s all part of my duty!" Bashirio modestly responded to Jerome Bonaparte.

Afterwards, Bashirio left the study, and Jerome Bonaparte continued to peruse the newspaper, searching for useful information.

In an economic section of a British newspaper, Jerome Bonaparte unexpectedly saw a headline titled "How Far Away is 1846 from Us?"

Curious, Jerome Bonaparte began to read.

After reading it in detail, Jerome Bonaparte couldn’t help but sigh, "I didn’t expect such individuals to exist in Britain!"

Despite the article’s headline stating 1846, its content discussed the United States of America.

The article compared data released by the United States of America with data from the Kingdom of Britain in 1846, concluding that the United States might face the same situation that Britain did in 1846. It also released the types and real-time prices of the bonds listed on the London Stock Exchange, including U.S. Treasury Bonds, railway bonds, and some bank-issued bonds.

The conclusion was reached: If the United States faces an economic downturn, then the Kingdom of Britain would also be impacted. Thus, it called on banks in the Kingdom of Britain to withdraw from the United States as soon as possible.

If the banks in the Kingdom of Britain really did as suggested, then British capital might indeed withdraw.

However, among the data provided for various U.S. bonds by the article’s author, the growth rate of the U.S. railway bonds and some bank-issued bonds has far exceeded people’s fear of an economic crisis.

It’s not that they don’t know an economic crisis is approaching; even if every one of them knew the economic crisis was imminent, they would still confidently believe they could withdraw in time.

Banks are the same; the larger the bank, the more it thinks it can survive the tide.

When the day comes that the flood rises, those who drown are often those who believed they had learned to swim.

However, banks can transfer risk to retail investors. Large banks only need to announce increasing their discount rate to a certain height, and they could deter retail investors.

Retail investors unable to make ends meet make up only a small part. As long as the losses caused by the bank itself are less than the bank’s capital, they can afford to pay the retail investors who can’t make ends meet.

Alternatively, if a bank is large enough that its bankruptcy would harm more interests, the state will step in to bail it out.

The retail investors are out of luck, putting all into the stock market only to end up "deserving what they get."

Even more unlucky are those who put their money in the bank, simply wanting to secure their money and earn interest/annuities, but facing the harm caused by the bank’s investment losses.

Worse still, if the bank declares bankruptcy, those who control the bank can easily leave while remaining billionaires, and those who put their money in the bank can only cry in vain.

[PS: Historically, after the collapse of the Parisian Bank, the Pereire brothers, as founders, did not go bankrupt. Each of them still held billions in assets, enjoying wealthy lives while publishing books and writing their insights.

During this period, due to Jerome Bonaparte’s intervention in the Industrial Bank founded by the Pereire brothers, the Industrial Bank did not blindly speculate like the previous Parisian Bank.

Although the Industrial Bank did have certain deficits, they were far better than the historical tenfold leverage.]

In conclusion, although this article was well written and its arguments could hold ground, no one would be willing to heed their advice.

Especially since the current Kingdom of Britain is enduring the impact of the East India Company’s deficit (valued at tens of millions of British pounds in East India Company stock, now fallen to only one-fifth of its original value), banks are speculating wildly to cover the East India Company’s losses.

No one will care about their opinion.

After finishing a section, Jerome Bonaparte continued reading. Upon seeing the news of the Kingdom of Prussia increasing its grain production, Jerome Bonaparte suddenly remembered that the economic crisis of 1857 wasn’t solely due to the steel bubble; the grain surplus was also one of the contributing factors.

"I recall that this year, the United States of America also increased its production!" Jerome Bonaparte muttered to himself.

At this moment, a knock on the door sounded, and Jerome Bonaparte responded, "Come in."

A secretary from the Secretary’s Office entered the room, carrying a pile of urgent documents that the office had selected.

Jerome Bonaparte quietly waited for the secretary to place the documents on the table, then stopped him and said, "Do you have last year and the first half of this year’s market trends for the United States and the weather conditions in the grain-producing areas for the first half of the year in our Secretary’s Office?"

Upon hearing Jerome Bonaparte’s request, the secretary’s expression stiffened.

If His Majesty only needed the wheat prices from last year and the first half of this year in the United States’ markets, the Secretary’s Office could grit its teeth and find them.

The News Section under the Secretary’s Office is specifically responsible for collecting and summarizing news from various countries.

However, the weather conditions in the United States’ grain-producing areas for the first half of the year were indeed a challenge for the Secretary’s Office.

Such specifics from the grain-producing region are truly difficult to obtain, and visiting those areas in the USA is not feasible.

Without the option to visit the grain-producing areas, we can only piece together information from bits and pieces in newspapers.

This is undoubtedly a significant undertaking.

"Is there a problem?" Jerome Bonaparte inquired.

"No!" The secretary shook his head and replied to Jerome Bonaparte.

After all, the duty of the Secretary’s Office is to relieve the burdens of leadership.

If such trivial matters cannot be handled well, there’s no need for the Secretary’s Office to continue.

"Your Majesty, please allow me to return to the Secretary’s Office to organize the information you need!" the secretary then replied to Jerome Bonaparte.

"Hurry back!" Jerome Bonaparte nodded in response to the secretary and then added, "By the way! Also find last year and the first half of this year’s grain production and prices for France!

If not, get it from the Ministry of Agriculture and Commerce!"

"As you command!" The secretary bowed to Jerome Bonaparte and then left.

Another two and a half hours passed, and Secretary General Lucien Murat appeared before Jerome Bonaparte, placing documents in front of him and introducing each one, "Your Majesty, here is the compilation of last year and the first half of this year’s grain production and market trends in the United States, along with the weather conditions in the first half of the year! And here is the data for France from last year and the first half of this year!"

"Thank you for your hard work, Lucio!" Jerome Bonaparte nodded slightly to the man nearly 20 years his senior.

"It’s nothing! It’s all part of my responsibilities!" Lucien Murat smiled warmly, responding to Jerome Bonaparte in a composed tone.

Jerome Bonaparte flipped through last year and the first half of this year’s grain prices in the United States. According to the published data, wheat prices in the USA this year are about 30% lower than those in the same period last year.

To some extent, the price of grain reflects its production, and the USA seemed to have fared quite well in the first half of the year.

Subsequently, Jerome Bonaparte glanced at the weather conditions in the grain-producing areas of the United States, which were compiled (or rather pieced together) by the Secretary’s Office.

From the consolidated results, the United States did not experience adverse weather in the first half of the year, suggesting a likely good grain production for the latter half.

Compared to last year, this year could indeed be considered a bountiful year for the United States!

Immediately afterward, Jerome Bonaparte picked up and compared the market trends for France last year and this year.

When he saw that grain prices in France also fell this year, with the price of wheat in June 1856 at 32 francs and 42 centimes per liter, and this June at 27 francs and 9 centimes,

He realized that if U.S. wheat is imported, the purchase price of French wheat will further decrease.

This is not conducive to supporting their farmers. With this thought, Jerome Bonaparte slightly furrowed his brow.

Standing next to Jerome, Lucien Murat noticed this and softly inquired, "Your Majesty, are you dissatisfied with the data?"

Jerome Bonaparte shook his head and said to Lucien Murat, "Murat, your Secretary’s Office did very well! I’m just not satisfied with the prices!"

Pointing to the prices in the data, Jerome Bonaparte said to Lucien Murat, "Look at our grain prices from last year and this year!"

After glancing at the grain price comparison, Murat responded to Jerome Bonaparte, "Your Majesty, minor fluctuations in grain prices are quite normal!

When there’s a poor harvest, prices naturally rise! Conversely, with high yields, prices follow suit and decline!"

"If the fluctuations are within a reasonable range, it’s indeed fine, but have you considered!

If the United States and our grain both experience bumper harvests simultaneously, what kind of situation will our farmers face?" Jerome Bonaparte countered to Lucien Murat.