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The 1910 stock market crash that killed the country

100 years ago that summer, a global f forexbonusrebateancial cr forexdiscountbrokersis triggered the collapse of Chinas Shanghai stock cashback forex forex discount brokers because of the Chinese stock market in the unique collusion between business and government, official battles, the system rotten and many other elements, this simple market crisis is not only the degree of harm is infinitely magnified, and quickly transformed into a political crisis violation of the market and heavy losses of the Chuanhan Railway into financial difficulties, and on the The issue of compensation for losses and the central government continued to contradict, triggering a movement to protect the road, which became a precursor to the Xinhai Revolution … … Our columnist Xueer this issue to scan the most critical link in the chain: Shanghai rubber stock market crash 1910 summer, Shanghai was shrouded in a stern cold   a huge bear, across the ocean and came, the bear paw swept the Shanghai Bund The stock market collapsed completely, the forexrebatesbrokers changers have collapsed, foreign banks have suffered heavy losses, only to be free of those increasingly high new houses, it has become the end of peoples dreams of wealth shattered, created with the times, no one before the suicide way jumping the world with this cold, this global financial crisis, not only to the Qing Dynasty on a global economic integration of the big lesson, and with its harsh palm wind The financial crisis, in one fell swoop, hollowed out the foundations of the Qing Dynasty The wind has risen ......  profiteering In the spring, the city seems to have taken a great tonic aphrodisiac, full of exuberance, as brilliant as the rape flowers in the surrounding fields This aphrodisiac, is the rubber stock A rubber company called Lange Chi (Langkate), the stock market in Shanghai drew a majestic steep yang, towering into the clouds, global attention, leading The general market soared together Langkate stock face value of only 100 taels, but was quickly pulled up over the 1,000 taels mark:  March 2 1080 taels; March 18 1300 taels; March 21 1600 taels; March 29 1675 taels…… In the Shanghai Stock Exchange (Shanghai Zhongye Gongsi, the TheShanghaiStockExchange) listed almost all the rubber stocks, have performed the same myth and rubber companies in Southeast Asia, about 1/3 listed in Shanghai, Shanghai, Qing Dynasty, has become one of the engines of the global rubber capital market sought after, of course, there is a reason for the account is very good: each pound of rubber mining costs 1.6 Shillings, while the market price is at 12 shillings, a difference of up to 7.5 times, not chasing rubber stocks, what else can be chased?  The global boom of rubber, originated in the United States industrial upgrading 1900, that is, the Qing Dynasty is busy with the Boxer Rebellion, the automobile has begun mass production in the United States and by 1908, the United States Ford launched the famous Model T, priced at less than $ 500, and soon dropped to $ 300, equivalent to the salary of an average American worker a year This not only pulled down the price of cars by 90%, transforming cars from luxury goods to mass consumer goods, but also made the United States quickly entered the automobile era, the rubber needed for automobile tires became hard currency for a while, and the global rubber market was immediately crowded with capital so those familiar with the Chinese market, the foreign banks Taipan, have joined this money movement HSBC, Jardine Matheson and other famous companies in the Chinese market, there are executives who do not hesitate to resign from high-salaried positions to open their own rubber companies in the capital began to accelerate, the production line of rubber companies also began to accelerate: a small number of syndicate companies that hold resources, a large number of enclaves in Malaya, even before the rubber saplings are planted, these rubber plantations will be divided and resold to the new company in Shanghai to collect cash, or to collect the shares provided by the new company  In June 1910 alone, 30 new rubber stocks were listed for trading in one month, rolling away a whopping 13.5 million taels of silver, with each company raising a huge average of 450,000 taels This was an amazing performance that made the London capital market gasp and feel ashamed of itself An Englishman named McBain (GeorgeMcBain), who had previously opened a He opened a rubber company called Langezhi, but quickly became the leader of the Shanghai stock market McBain is a successful master planner, he placed large advertisements in the English and Chinese newspapers in Shanghai as well as paid reports to promote the glory of the rubber industry, which is full of fictitious data and promises about the operation of the Langezhi company His first step of planning was to publish a long article of tens of thousands of words in various newspapers, "The Rubber World of the Future". At that time, Chinese and foreign journalists, unaware of the authors ulterior motive, thought that he would shine a bright light on the world industry, also wrote to encourage it (Qing, Yao Gonghes "Shanghai Gossip") There were once barnyard stories about how Du Yuesheng had helped Mai Bian Yangtze to build up its momentum. The companys business is not only a small opening, but also has no ability to support the market for foreign companies McBain then joined forces with foreign banks to do the bank, first from the bank quietly loaned out for shareholders to pay dividends every three months, each share payout of up to 12.5 taels, which is equivalent to 12.5% of the face value of the subsequent, the banks announced that they could accept the Langezhi company shares for mortgage loans, to create the Langezhi stock resistance. to create the appearance of Langezhis stock being risk-resistant and co-speculation With the lure of huge profits, various brokers and promotion agencies, not hesitating to conduct large-scale misleading propaganda, at least three companies admitted to deceiving and misleading investors after being traced by the stock exchange, one of which admitted to depicting the stumps as rubber, and another company was found to have only half of its land But the stockholders of the Qing Dynasty, who had come here for speculation, did not care about these even the high-powered Judge Guan Tongzhi of the Concessions Court (the Court of Session), had to ask for favors to buy a little of the original shares of the rubber company. As long as I am willing to sell, immediately sign on behalf of customers to buy and sell a variety of rubber shares, and even has become a lot of foreign companies outside the door signboard In mid-March 1910, KotaBahroeRubberEstatesLtd (KotaBahroeRubberEstatesLtd) in Shanghai to issue new shares, the first day of subscription, the original issue time of the stock for 10 a.m. But in the middle of the night in the queue of people, so that the bank temporarily decided to open the door early 9:10 a.m., the first transaction completed; an hour later, the original stock subscription indicators are all exhausted, the bank no longer accept later subscriptions worth 100,000 taels of silver shares, absorbing a full 1.6 million taels of subscription funds  money changers, ticket houses and other domestic financial institutions to actively promote, have lowered the The loan threshold, not only to speculators to provide credit loans, but also to accept stock pledged loans, indirectly involved in speculation money bankers themselves also bare knuckles, using their credit advantages, the big issue of bank notes (equal to their own money printing), directly involved in stock speculation since then more and more Chinese money bankers, ticket number involved, and through their business network throughout the country, absorbing the money in all corners of China, forming the China The largest ever national stock speculation movement crash capital market is always the game of the strong Just when everyone is hotly debated when the Shanghai stock market reached its next peak (June 1910), the face of the global rubber bubble, as the largest consumer of the United States, suddenly announced austerity policies galloping cattle suddenly turned into a bear, the international rubber prices took a big dive London rubber trading market a bear howl, and caused a total collapse of the Shanghai stock market, mainly in the rubber sector, tied to the London market stockholders of the Qing Dynasty had just seen the great benefits of global integration, and began to swallow its huge bitter fruit first got the news of foreign banks immediately tightened funds, increased efforts to withdraw loans from major local money changers, resulting in a further tightening of the silver root July 22, illegal entry into the market The first time, the foreign banks to see the situation, in order to avoid the disaster of pond fish, ready to withdraw all the funds lent to the Chinese money changers, which is equivalent to adding fuel to the fire then, Senyuan, Yuanfeng, will be large, Xie Da, Jin Da and other money changers have closed down closed down the Zhengyuan, Qian Yu, Zhaokang three money changers The company has a common boss: Chen Yiqing Chen system of money is the main force of Shanghai rubber stock speculation Chen Yiqings calculations are not bad: the use of their own money and relations in the foreign side, snatching up stocks and then sell at a higher price, should be a short and fast business that is not very risky this business is getting bigger and bigger, Chen Yiqings capital chain began to tighten in Chen Yiqings capital chain In Chen Yiqings capital chain, there is a far more powerful backstage than the foreign banks such as Citi, which is the Chuanhan Railway Company (referred to as Chuan Road Company)   This state-owned enterprises, although restructured into commercial two years ago, but from the appointment of management to the management of enterprises, there is no difference with state-owned enterprises Shi Dianzhang, a former official who served as the mayor of Guangzhou City (governor), as appointed by the central Chuan Road Company CFO (general revenue and expenditure), has been sitting in Shanghai for five years, responsible for revitalizing the huge sum of 3.5 million taels on hand, capital operations Shi Dianzhang is Chen Yiqings biggest backer in Chen Yiqing control of Zhengyuan, Zhaokang and Qian Yu three money changers, Shi Dianzhang in Zhengyuan deposits up to 500,000 taels, in Zhaokang 380,000 taels, in Qian Yu reached 255,000 taels, the three together 1.135 million taels and according to The companys internal risk prevention requirements, the public money in Shanghai money bank deposit, each banks deposit limit shall not exceed 150,000 taels In addition, Shi Dianzhang will also be another huge sum of 950,000 taels, also deposited in Chen Yiqing as a buyer of foreign banks Lihua Bank, in fact, after the review of the two task forces in Jiangsu and the central government, this deposit is a private lending, and Lihua Bank has nothing to do with Shi Dianzhang to Chen Yiqing for capital. The public money handed over to Chen Yiqing for capital management amounted to more than 2 million taels, accounting for 1/3 of the total amount of bank notes issued by the Chen family of money changers, which was not only Chen Yiqings main reserve in a bearish trend at the time, but also a sure thing that he dared to let go of. The pawnbroker will be able to really revitalize the public money, fame and fortune: not only to build a career for the company, but also his own set up in the head of the various rat positions, etc., will be covered under the halo of political achievements However, the end of the beautiful dream is a nightmare bailout on the day of the closure of the Zhengyuan money bank, the Shanghai Municipal Government will be related to the money banks relevant personnel and books, etc. control custody of Shanghai Daotai Cai Naihuang and the Chamber of Commerce emergency consultation, determined to government rescue July 18, Cai Naihuang with the Chamber of Commerce President (Prime Minister) Zhou Jinzheng took a special car to Nanjing, Zhang Renjun, Governor of the two rivers to report to his boss for instructions, back on the way to Suzhou to another boss Jiangsu Governor Cheng Dequan asked for instructions at the time the credit of the money bank has collapsed, from foreign banks to borrow again, the government must step in to guarantee Zhang Renjun immediately telegraphed to the central government, and then approved by Beijing. Beijing then approved, agreed to the government to guarantee the money bank borrowing from foreign banks to maintain the market Beijing Ministry of Foreign Affairs will be this rescue decision to the ministers in China August 4, HSBC, McGarry, Edward, Dawei, Dawei, Zhengjin, Oriental Exchange, Citi, Holland, Warby and other nine foreign banks, to Shanghai to lend a total of 3.5 million taels of money, the money bank will be the corresponding amount of debt notes bet to Bank, by the Shanghai Road in the debt note stamp endorsement, as a government guarantee, the money bank to repay the debt note to the Road to cancel such a large amount of emergency loans, the foreign banks did not take advantage of the opportunity to charge high interest rates, only 4% per annum, much lower than the market rate, which is equivalent to financial assistance but in order to prevent the Qing characteristics of the death of the political interest, the contract specifically agreed to this loan by the current Road and the subsequent Road fully guaranteed  In addition to guaranteeing the loan, the Qing government to mend the sheep, arrest the responsible persons of the financial institutions August 17, the shareholders of the Zhengyuan money bank Chen Yiqing arrested, but under the pressure of the U.S. side, can only be held in the court of the trial, the U.S., British and other countries consular intervention, Chen is an important employee of foreign companies, there are still many outstanding matters, not only refused to extradite Chen to the Chinese side, but also refused the Chinese side proposed in the court of the trial together The Chinese side not only refused to extradite Chen to the Chinese side, but also rejected the Chinese request for a joint trial in the public court Chen Yiqing was arrested, although he was sheltered by the Americans and imprisoned in the more civilized public court, but under great mental pressure, he committed suicide, said to have taken poison This, including Shi Dianzhang, many people, any hope of recovering losses were dashed October 8, an even greater blow hit the country one of Chinas largest money changers, with 17 branches One of the largest money changers in China, with 17 branches of the Yuan Feng Run, which previously did not seem to be affected by the rubber stock trend, suddenly collapsed, owing a total of public and private money up to 20 million taels Shanghai dozens of factories immediately shut down, more than 300,000 industrial workers immediately unemployed, the situation became very serious, the police and request for instructions of the telegram snowflake sent to the two rivers Governors Yamen in Nanjing and the military office in Beijing Yuan Feng Run is The most bullish money bank on the Shanghai Bund, the boss Yan Yibin is not only a red-top businessman, and red to the top: his money bank absorbed a large amount of state-owned funds on deposit, including not only customs tariff revenue and regular payments to the war reparations to the powers, even by the government guarantee, just borrowed from foreign banks to the stock market bailout money, a large part of it first existed in the account The Qing Dynastys foreign reparations, generally by The governments guarantee of the stock market bailout money just borrowed from foreign banks is also a large part of its account first The foreign reparations of the Qing Dynasty are generally apportioned by the provinces, remitted to Shanghai on time, centralized and then unified external payment 1904, the Qing Ministry of Commerce (Ministry of Commerce) on this state-owned funds, to the Empress Dowager Cixi called a report, said this state-owned funds idle is also a waste, it is better to pay to the powers, before the interest, calculated at nearly 500,000 taels per year, allocated to the Ministry of Commerce to use, in fact, in the business benefits in the officials swore, the old Buddha agreed to the use of the Ministry of Commerce. The old Buddha agreed to invest the money in the Yinshui Zhuang interest on the surface, it seems to be a win-win situation for both the government and the people, but how to choose the Yinshui Zhuang, how to calculate the interest, it is entirely within the scope of the research of the officials who run the study Source Feng Run is the main Yinshui Zhuang selected More gas, the pure state capital of the customs revenue, according to the regulations should be in the official silver, but the customs silver source pass is also This Yans assets under the name of such a red and professional money changer, in the crisis will be like a mainstay, and officials are to maintain the old Yan is the same as maintaining the stability of Shanghai such a grand reason, the public money as long as possible to stay on its account The problem is that the bull through the source of Feng Run but has been outside the strong in dry: Yans another money changer De Yuan, serious losses in the stock market crash, the source of Feng Runs funds were drawn heavily To save Deyuan, source Fengrun has actually been mothballed September 27, is the Qing government to the Western powers to pay the current Gengzi reparations 1.9 million taels of the last date; but in the 9 days left, Shanghai Daotai Cai Naihuang suddenly called the Ministry of Finance (Department of Support), said the reparations dedicated 2 million taels of silver are in the money changers, can not be withdrawn, requested by the Qing bank to urgently allocate 2 million taels of silver advance  Department of The Ministry of Finance believes that this is to take the stability of the market as an excuse, the bones of the local officials are recklessly private, immediately impeached Cai Naihuang, and warned that if this time no silver response, outsiders will have a branch, the mischief is unimaginable take a look at may cause diplomatic trouble, the central government was enraged, immediately ordered Cai Naihuang dismissed, and ordered the governor of the two rivers, Jiangsu governor, etc. with Cai Naihuang, must be in two months to pay off all the money in hand  In the central thunderbolt, a huge amount of public money was withdrawn, which is equivalent to draining the last drop of blood from the source of Feng Run, it finally could not support, and collapsed with a bang source of Feng Runs collapse, the chain reaction throughout the north and south of the Yangtze River, inside and outside the Great Wall, equal to the country brought an economic crisis, its huge impact far more than rubber stocks, in fact, from the financial and economic level, emptied the last trace of vitality of the Qing Dynasty  …… After the bear market overturned the Shanghai stock market, half of the capital of Sichuan Road Company 3.5 million taels almost lost and the biggest feature of this railroad company is that the funds are almost all taken from the rent shares forcibly apportioned to the peasants, are the people a little bit of the anointed blood, class by pouring family bankruptcy, knocking the bones and sucking the marrow from the  70 million Sichuan people were shocked and enraged, many petitions, asking the central government to thoroughly investigate a shocking corruption case opened the curtain at the same time, a time bomb enough to move the ground also buried: how to deal with this huge loss, become a huge problem hanging in front of the central government, and will become the fuse to destroy the Qing dynasty a year after a gunshot in Wuchang, the empire collapsed, and one of the root causes is the rubber stock market crash
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