Ren Juan Family and Country Chapter 79 Making Mistakes
The economic crisis was only slightly damaged, and Chinese Prime Minister Song Jiaoren was worried that the government would not be able to use labor for relief and stimulate the economy. In the United States, which has been hit hard on the other side of the ocean, President Dawys has become an ant on a hot pan, worried and restless all day long. But similar to China, the US finance and dollar issuance rights are also controlled by private bankers. In order to ensure that their deposits do not shrink, the US government cannot issue more currencies unless Wall Street finally agrees.
At this time, the only way Daoweis could think of is to increase tariffs and reduce imports to increase domestic employment opportunities. However, such an approach will inevitably cause revenge from other countries and eventually trigger a trade war among countries around the world. Another way is to increase imports from other countries, especially China, to boost the US economy and increase employment. This is actually the ultimate goal of the US delegation's visit to China. However, the situation is not as optimistic as before...
Two weeks before Christmas, the delegation returned to Washington, and Dawys immediately summoned the Secretary of Commerce Hoover, hoping to hear some good news from him.
"Mr. President, although our friends strongly suggest that Chinese Prime Minister Song Jiaoren implements a fiscal easing policy to formulate a four trillion package to stimulate the economy..."
"hat?!" President Doves, Secretary of State Stimson and others were shocked on the spot. Four trillion, praising Jesus Christ, the Chinese have been possessed by God, and America is saved!
"Sorry! Mr. President..." Hoover quickly wiped his sweat. He didn't know what happened. Four billion was always said to be 4 trillion. "It's four billion, four billion Chinese yuan. However, this plan has not been recognized by the Chinese Prime Minister. According to our friends, Mr. Ma Yinchu, the actual controller of the Chinese Ministry of Finance, privately revealed that the Prime Minister is very worried that once this plan is proposed, he will be impeached by Congress, and this Prime Minister's cabinet is likely to collapse."
"Maybe it's a good idea to start the printing press." A 4 billion package of investment is also extremely amazing. Among these 2 billion dollar investments, at least 20 to 30% will import American goods, which is equivalent to an export business of 40 to 600 million US dollars. So Treasury Secretary Andrew Mellon immediately presented a golden idea that could not be realized in the United States.
"Yes. Mr. Mellon, this is indeed a solution, but Huayuan's right to issue money is not in the hands of the Chinese government, but is controlled by the State Bank of China. It is somewhat similar to the Deutsche Federal Bank, which is composed of the merger of nineteen provincial banks and four banks, Northwest, Mongolia, Kanto and Overseas Chinese. Although we do not know the specific equity structure, it is obvious that the government cannot order the State Bank to start the printing press." Hoover explained, feeling that the entire cabinet, except himself, did not seem to understand China at all.
Hearing that the Chinese are not investing in large scale, President Dawes said in a little disappointed manner, "It seems that hope is not on the Chinese."
"Mr. President, the Chinese are ready to build the Eurasian Canal and Northeast Water Conservancy Project, with an investment of more than 300 million US dollars. In addition, the China Academy of Sciences just passed a government procurement plan before we came back, which involved more than 200 million US dollars, and it is estimated that at least 150 million US dollars will be used in the United States."
Since I went to China, Hoover always had to bring some achievements back, otherwise it would be contrary to his reputation as a Chinese official, but Treasury Secretary Mellon didn't think so. He smiled indifferently: "Chinese people only know how to purchase raw materials, which is not what we expect..."
"No, Mr. Mellon." Hoover smiled and shook his head. "This time we purchased mainly industrial equipment. With our kind advice, the Chinese government realized the backwardness of its industry. They are willing to purchase a large number of American equipment at this time to improve their industrial capabilities. By the way, Mr. Mellon, if you want to, the joint engineering and foundry company you control will have a business of about 20 to 30 million US dollars. Several aluminum companies in China hope to purchase a large stick wide rolling mill."
The $20 to 30 million business made Andrew Mellon's heart beat faster and his face flushed. But when he heard it was a big stick wide rolling mill, his face immediately returned to normal color and said proudly: "This is impossible! The advanced rolling mill just developed has not been installed even in the American Alcoa industry. Once sold to the Chinese, their military potential will be greatly improved."
"Sir, if we don't sell it, then Germans, British, and even French people will find ways to sell the rolling mill to them." Hoover emphasized, "There are also hydraulic presses. The Chinese also want to buy a hydraulic press, at least two. The German Krupp Company, their representatives have been in Beijing. If we do not participate in the Chinese procurement bidding meeting and actively participate in the bidding, most of the orders of these 200 million US dollars will be obtained by the German Krupp Company.
Gentlemen, China's procurement is not necessarily just for itself. This procurement plan has added a lot of equipment needed by Russia. They are holding a bidding meeting with the Chinese to jointly purchase. We cannot be indifferent to this and lose this opportunity. After the economic crisis, the only ones in the world that are likely to purchase on a large scale are China and Russia. In the absence of establishing diplomatic relations with Soviet Russia, it may be a good choice to sell goods to China as an agent."
Due to political factors and the debts owed during World War I, the United States and the Soviet Union have never established diplomatic relations. For some reason, the Russians have been seeking China in the five-year plan. Therefore, although the joint procurement between the two countries is abrupt, it is reasonable to think about it carefully. After all, the more months you buy, the stronger the bargaining power of the purchaser.
However, as Doves, Mellon and others gradually nodded, War Minister Patrick J. Heli coughed, and he asked without hesitation: "Herbert, there are news that the Chinese and the Bolsheviks are plotting to divide the world, and there are news that Chinese scientists are studying a secret weapon. Have you heard of this news when you go to China this time?"
Hurley was originally a bachelor of law. He joined the Expeditionary Force as an artillery officer during the European War. Later, he joined the Sigmaz Brotherhood and was eventually able to become the Minister of War in the presidential cabinet. Although his status has risen, his thoughts are still very concerned about street stall conspiracy theories. The content he said is no different from the Fu Manchu series written by British novelist Lomore.
Hoover wanted to laugh, but seeing President Dawes and Secretary of State Stimson looking at him solemnly, he had to hold back his smile and said seriously: "Mr. Hurley, I have not heard of such a conspiracy, at least this time. Just like Japan is just as careful about us, the only thing China is wary of is Soviet Russia. Although the two countries signed the Petersburg peace treaty more than ten years ago, it is not much different from the Brest peace treaty.
Because of this, the Chinese team, especially the army, retained an elite force of more than 100,000 people in the northeast and northwest. In the pass, which is what we call China headquarters, the army is simply dissatisfied with the unit. Each division has only about 3,000 to 4,000 people; the police and tax police have also been greatly reduced due to stable public security and reduced taxpayers; most of the navy's shipbuilding plans have been reduced or temporarily suspended. The Chinese seem to want to spend every penny on industrial investment, and I don't think they will join the Russians to unite to divide the world."
"But the military expenditure in their fiscal budget is obviously disproportionate to the number of troops," Heli insisted. "In the annual budget of the China Academy of Sciences, the military expenditure is as high as 400 million Chinese yuan, obviously not commensurate with the current size of China's military. Although we cannot evaluate how much the Chinese armored divisions need every year, I still feel that the Chinese are hiding something that we don't know."
Although the budget of the China Academy of Scholars has not been announced to the public, it is not difficult to obtain this not-so-secret information. Hurley and the Army General Staff believe that China's military expenditure calculations last year and this year were seriously overestimated, with the overestimated amount reaching 200 million Chinese yuan each year. The whereabouts of this money are extremely worrying.
"Mr. Minister, China is a semi-democratic and state-run country. The great group has a huge influence in domestic politics. It is obviously incorrect to calculate the expenditure of the army alone. In addition, as far as I know, the Chinese government is very concerned about the martyrs and military families, and the expenses in this regard are extremely huge. Gentlemen, in such a country, it is difficult to spend every penny on the military, and it is likely to turn into a generous reward from Cuban cigars or eight major alleys."
Hooverdao, "Also, our army does not have an armored division, and we don't know how the Chinese armored division is organized and how to train. This is the most expensive place. But in my opinion, even if the Chinese spend most of their money on building tanks, it will not harm our interests. The Philippines and mainland China are separated by a vast ocean. Can the Chinese armored divisions rush to Manila across oceans?
According to Colonel House, it is in the interests of the civilized world that China and Russia have a feud. We should not worry about the increase in military expenditure of the Chinese army and the air force. We must worry about the increase in military expenditure of the Chinese navy. However, this time I visited the Jiangnan Shipyard and Nanjing Shipyard, the largest shipyard in China, where the docks are covered with weeds, and most of the workers are producing Chinese boxes..."
When Hoover talked about weeds, everyone at the meeting laughed, and everyone was glad that they separated from China from the two oceans. Otherwise, more than 500 million yellow people would subdue the entire United States. Now, as long as China and Japan are restricted on the navy and ensure the security of the Philippines and the Pacific islands, the entire civilized world will be safe.
After laughing, Secretary of State Stimson, who did not fully agree with Hoover's view, said, "Herbert, what I should worry about most is not China's military spending, but China's industry. All over the world, cheap and high-quality Chinese goods are seizing various markets, and many people are worried that Chinese goods will eliminate American goods..."
"No! Mr. Stimson, this is impossible!" Hoover said confidently: "Maybe Chinese goods are really cheap and high-quality, but their production efficiency is extremely low. The price of high-quality is inefficient, and the root cause of cheapness is that Chinese workers earn only one-thirty to one-forty of American workers. For ordinary Chinese families, they can earn ten dollars a month, except for the high-consumption city in Shanghai, they can live a comfortable and good life in any city."
"That is to say, if China is allowed to develop industry, their low-priced goods will completely defeat us in decades?" Treasury Secretary Mellon asked. As a major shareholder of Aluminum, Gulf Oil Company, and United Steel, his biggest concern is to compete with China Aluminum and Benxi Special Steel.
"Although it's a pity, there is this possibility." Hoover said helplessly that even though the usual contempt made the US delegation not see the advanced nature of China's production model, the potential contained in China frightens every member of the delegation. At this time, China is very similar to the United States in the early stage of the Civil War. Most of the population was engaged in agriculture. But in a time, in fifty years, she will build a larger industry than the United States. By that time, it will be a huge question whether the civilized world can still rule the world.
"I understand!" Andrew Mellon remained silent as always. This was the result he expected, but it was just confirmed again.
"Okay, gentlemen. I think the delegation's trip is still fruitful. In the depression, I think American companies should actively participate in the Chinese government's bidding to get most of the orders." After reporting the brief situation at Hoover, Dawys made a decision, and then he remembered another thing and asked: "When will the Chinese bidding end?"
"It should be before next fall," Hoover said. "Of course it's just some specially customized large equipment. Some small equipment will end the tender in the spring."
"It seems we can only increase tariffs next fall." Dawys looked at the Secretary of Agriculture Arthur Hyde. As for the current U.S. economy, agriculture is one of the worst-hit industries. Even so, foreign agricultural products are still being shipped to the United States.
"It's better in the summer, Mr. President." Minister of Agriculture Arthur Hyde stressed. "Only in the summer, foreign agricultural products will not flood the country on a large scale, making the agricultural crisis worse."
"I will definitely consider this carefully." Doves thought of the tragic situation of agriculture and had to focus on the key points...
The White House presidential cabinet meeting discusses relations and trade with China and determines the policy of this presidential term. Another meeting is also being held in the Harold Platt building in downtown New York, more than 300 kilometers away. It can affect more than the decisions of this president. The resolutions drawn here will change the whole world.
"Gentlemen, because of my experience in Germany six years ago, I don't like Chinese people." On the side of the big round table, banker Otto Herman Kahn, coughed and spoke. Although he kept coughing, the old guy still smoked hard with his pipe in his mouth. "They ordered large-scale goods from German companies on the verge of bankruptcy, which made our acquisition plan not complete. They only acquired 4,300 German companies, instead of the original plan 4,600. Although they lost only 300 companies, these companies were of great value, and what's worse, this gave the Germans hope.
I don't think anyone hopes that when they are enjoying the steak, a fly suddenly flew over and pulled a bunch of fly shit on the corner of the steak. Including now, I know that Chinese people are very cautious in everything and don't want to disturb anyone's meals, but flies are flies, and they always fly around in the restaurant, affecting our meals..."
"No, Mr. Kahn, the Chinese just happened to order goods in Germany. As long as we can tell them in advance, such a thing will not happen." John Davidson Rockefeller, the top leader of the roundtable, interrupted Otto's words. Since the founding of Greater China, the interests of the Rockefeller family have penetrated into it. Now, he also has oil fields in the Caspian Sea and Nanyang.
"As far as I feel, the Chinese abide by the contract, they are not hostile to Christians, but to those vulgar yellow people who only envy the United States but do not believe in Christ. China's laws do not completely limit foreign capital, but the local tradition is completely different from the United States, but what does this have to do? The purpose of investment is profit. As long as the profit can be obtained, it is not unacceptable for factories to hire Chinese people and manage them completely in the Chinese way..."
"Mr. Rockefeller, the lifelong employment system is completely unacceptable!" The topic revolved around the bottom of the round table, Henry Ford, "This is an evil system, and accepting it will only bring immeasurable damage to American factories! And, this is completely contrary to God's will, the Chinese factory is simply a devil factory. The hard-working workers are whipped by the foreman and suppressed by torture. Even after get off work, workers are forced to stay in the workshop to work. Their daily wages are only one-forty of American workers, and they still have to..."
"Mr. Ford, I remember talking about one-thirty before." Paul Warberg, on the Rockefeller side, smiled, and he also held his pipe in his mouth and sprayed smoke into the air.
On Wall Street, Paul Waberg had a huge influence. As soon as he spoke, Modimer Schiff and others laughed loudly. This forced John William Davis, who was in charge of the abbot, to speak: "Mr. Ford, more than 100 countries in the world, American workers have the highest wages. We cannot call on people to be hostile to this country just because the wages of workers in a country are low. This is contrary to God's will and does not conform to the rules of a civilized world."
"Mr. Davis, you may be right, but this country has more than 5 million square miles of land and a population of 530 million. No one can count but is extremely rich in mineral resources, evil and long-standing civilizations, and a more efficient political system than the American democratic system; she also has a powerful marine allies like Japan, a waterway connecting the Mediterranean, a powerful industry and technology that is rising and daunting. It is conceivable that in a few decades, this country will definitely surpass the United States and become the world's largest industrial country. By that time, can we still sit here so peacefully?"
Henry Ford has been silent since visiting the Dalian Automobile Factory. After returning to the United States, he did not return to Detroit immediately. Instead, he asked Chairman Davis to hold a meeting and then waited patiently in New York for the bigwigs of the Diplomatic Relations Association to come from all over the country. He had too many feelings to share with other members of the association.
"Now, she may be a poor country, but her industrial potential is unparalleled. Maybe not twenty years, the overseas market of American goods will be snatched away by her. Forty years, the World Financial Center will not be New York, but Shanghai. Gentlemen, please don't look at me in such a surprise. When I see those different styles of cars coming off the same production line, I have such a premonition in an instant. This is the revelation given to me by God.
I am not worried about Chinese cars and Ford's competition, after all, they only account for a very small share. Their navy is the same, compared to countries around the world, but this is precisely the cleverness of the Chinese. What they do does not want to anger anyone or stimulate anyone, they only need time. As long as time is enough, China will naturally develop into the largest industrial country in the world; as long as time is enough, China will naturally accumulate much more wealth than us; as long as time is enough, the Chinese fleet will cover the entire Pacific Ocean. Gentlemen, what we must do! Just like what we have to do with Argentina!"
Henry Ford, who was not good at speaking, deeply touched everyone attending the meeting, but it was not the only one who considered the China issue at this time. Before that, when the Paris Peace Conference was preparing to establish this diplomatic relations association, the China issue and the Sino-Japanese alliance issue were the common topics of the association.
For such a giant country, the best way to break up the Sino-Japanese alliance and then win over Japan. Even if a war occurs, it will be just a even naval battle. The only thing to worry about is the Chinese submarine force, but the only thing that submarines can harm is Japan.
"Mr. Ford, China is not Argentina..." Davis, chairman of the association, reminded. "It is not that we have not done anything, but that the time for it has not yet come. For China now, it is no longer possible to find a way from the inside. After they established the state religion, the defense of the fortress has been strengthened to the greatest extent.
In addition, they also have a magical wizard like Satan, a great leader comparable to Washington. If any of these two people did not die, the country would be as hard as granite, unable to crush, infiltrate, and unable to subvert. Mr. Charles Holland's research believes that if Yang cannot defeat Yang in thought, there is no possibility of stone breaking; while Mr. Toynby of the Royal International Affairs Association of Britain believes that Yang's theory is difficult to defeat because this is God's will, but it was described by Yang in the form of civilization reincarnation. The only way to defeat China is to wait for them to make mistakes."
"What if the Chinese don't make mistakes?" This time, the question was not Henry Ford, but the financier Paul Warberg.
Chapter completed!