Since Nathan Rothschild had already taken on the posture of Mr. Constant back in 9/18, the subsequent actions were straightforward. It basically boiled down to everyone collaborating on how to deceive others. Their swift coordination left everyone astonished.
Both parties quickly reached a consensus on the basic operations and then agreed on the approximate timing for their actions. Nathan Rothschild, accompanied by Mr. Bovine, left the small drawing-room and returned to the backyard, where they continued to mingle and converse with other guests.
"You see, that's Rothschild for you," Mr. Bovine remarked to Jerome, watching Rothschild engage in lively conversation as if nothing had happened, "Cool-headed and rational to the point of being inhuman. He's truly a formidable fellow."
"Is that so?" Jerome replied. "He seems rather easily swayed to me."
"No," Mr. Bovine countered, "He just knows when to act. That's what makes him so formidable. If it weren't for your brother behind me, and the entire nation of France, I might not be able to match him."
"Mr. Bovine, you're rarely this modest," Jerome chuckled.
"That's because there are few occasions deserving of modesty," Mr. Bovine replied.
After the event concluded, Rothschild returned home and immediately began arranging matters. His first visit was to Metternich, who was preparing to return to Vienna. Metternich had performed admirably as an ambassador to France over the years and deserved a promotion long ago. However, Austria was concerned about whether his successor could fill Metternich's shoes, and Metternich himself was reluctant to leave his lucrative position as the ambassador to France. Compared to the wealth he gained in Paris, the salary he received from Austria was barely enough for Mrs. Metternich to buy handbags.
But with such a lucrative position, who in all of Austria wouldn't be envious? Even His Majesty, Emperor Francis II, felt a tinge of envy. Others naturally surrounded His Majesty, suggesting that Metternich was a talent wasted as a mere ambassador, and it would make Austria appear lacking in discernment and utilization of talent. Thus, they hoped His Majesty would recall Ambassador Metternich soon and entrust him with greater responsibilities...
Meanwhile, although Metternich was reluctant to part with the money, he knew that continuing to hold onto his position might lead to unforeseen consequences. Thus, he reluctantly accepted the domestic arrangements and prepared to return home to assume the role of foreign minister. His Majesty also privately informed him that he would undoubtedly become the future imperial chancellor.
While Metternich relaxed his grip, trouble arose in Vienna. Several influential nobles were vying for the lucrative position, leading to a temporary impasse. However, a new ambassador would undoubtedly be appointed by the end of the month.
Upon hearing of Rothschild's visit, Metternich received him in his reception room. Without much small talk, Rothschild directly explained to Metternich the possibility of a collapse in railway stocks. He then said to Metternich, "The collapse of railway stocks is inevitable, but this may not be a bad thing. If we plan ahead, we can also profit from it. Well, Mr. Bovine once said that the Great Depression may not be a bad thing, because only in the Great Depression can those truly valuable stocks return to their rightful owners." (This statement was made by the American tycoon, Morgan, in history.)
But Metternich had more to consider than Rothschild. Rothschild wasn't worried about the blame falling on the Jews, but Metternich needed to consider whether this blame might fall on Austria. Because he knew that if this matter turned into a major recession, it might very well lead to war. And no one wanted to become a target of France's war machine.
"We must proceed cautiously, at least until after the actions of the Bank of Rome," Metternich said.
"In that case, we'll make less money," Rothschild replied. "But after the Bank of Rome's move, with their appetite, there won't be many bargains left for us."
"Nathan, we're not like you. We have more political considerations," Metternich said. "It's truly a chaotic time. You must understand, every speck of dust in this era, falling on every individual, even falling on a country like Austria, is like a mountain. We cannot afford to be careless. However, you may operate my personal wealth as you see fit."
Rothschild then took his leave.
A few days later, just as the Paris stock market opened, news came that the Titan Railway Company was preparing to lower its fares. Subsequently, people began dumping railway stocks en masse, causing fluctuations in their prices. However, by the afternoon, railway stocks began to rise again. By the end of the day, although there was a slight decrease, it wasn't particularly significant.
However, after closing, new rumors emerged: because some banks had begun tightening their loans to railway companies, such as Rothschild Bank having sold off its railway company debts a few days earlier and no longer providing loans to railway companies, more railway companies had to lower their fares to gain a larger market share.
The next day, before the market opened, the Businessman Gazette published an article pointing out the systemic risks of railway stocks. The article also indicated that some railway companies, through vicious price wars, would further shrink the market.
The impact of this article immediately manifested after the market opened. Despite the bulls' resistance, by the end of the day, railway stocks had fallen by about ten percent.
However, the situation reversed soon afterward because the Businessman Gazette interviewed Mr. Henry, the general manager of the French Railway Company, who stated that the French Railway had no intention of lowering prices. Mr. Henry stated, "We will not engage in such deplorable behavior."
With this responsible statement from the French Railway Company, the market received a boost of confidence. Thus, on that day's market, railway stocks surged, almost completely recovering the lost ground from the previous two days.
However, people soon noticed a strange occurrence: someone was constantly dumping shares of the French Railway Company in large quantities, causing its price to decrease slightly even as other railway stocks were rising. If there was one railway company in the best condition, it was undoubtedly the French Railway Company. Such a
situation was naturally unusual. Therefore, various rumors began to circulate, with many speculating that there was a major problem with railway stocks and that the market makers were preparing to flee.
The Businessman Gazette once again interviewed some major shareholders of the French Railway Company, all of whom denied massively dumping the French Railway Company's shares. However, this time, the report had the opposite effect. After all, not everyone was a fool. If these fellows didn't dump a large number of shares, then were all those French Railway Company shares flooding the market being dumped by retail investors?
As a result, the situation once again reversed, and the French Railway Company's stock led a sharp decline. In just one day, the French Railway Company's stock plummeted by sixty percent. With its lead, the entire railway sector began a free fall. By the end of the day, the entire railway sector had lost nearly half its value.
The next day became even more brutal because the French Railway Company issued a statement, claiming that they were planning to lower prices to expand market share. Perhaps they intended to boost stock prices with this move, but it backfired. Other railway companies could not possibly win in a price war with the French Railway Company. Once the French Railway Company joined the price war, it was almost like announcing their own death sentence. Thus, the entire railway sector plummeted further. By noon, most railway stocks were only worth about one-tenth of their morning opening prices.
By afternoon, panic intensified, and people began irrationally dumping their stocks. Many railway enterprises, judged by their stock values, were heavily indebted. Panic spread from railways to banks, and the stock prices of banks with a large amount of railway debts also began to plummet.
By the end of that day, most railway companies' stocks had become nothing more than worthless scraps of paper, barely worth selling by the pound. Bank stocks also fluctuated by about twenty percent.
This fluctuation evolved into a run on banks rumored to have large amounts of railway stocks or debts the next day. Some banks immediately faced a cash shortage and had to forcibly close their doors. At this point, to save the banks, some bankers had to seek loans from the Bank of Rome or any other banks that could provide cash. Then, their equity and debt naturally ended up being pledged at frighteningly low prices to banks like the Bank of Rome.
"A market crash isn't necessarily a bad thing," Mr. Bovine said to Jerome. "Your elder brother, Academician Bonaparte, once told me that in the Great Depression, those truly valuable stocks would return to their rightful owners. What a profound statement! It makes perfect sense!" As he said this, Mr. Bovine had just used ten percent of the proceeds from selling the shares of the French Railway Company to buy back nearly twice as many shares of the French Railway Company.
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