Chapter 31： Financial turmoil

After Romania’s announcement, foreign banks in Romania exploded. Because Romania’s own financial sector is weak, most of its capital is controlled by foreign banks. Among them, the Bank of England, the National Bank of Paris, the National Bank of Russia, and the German Empire Bank are among the best. I am quite dissatisfied with the Banking Act of the Romanian government.

Edel knows that if Romania’s financial sector is not regulated, most of its wealth will be sucked away by the big powers. Romania’s industrial development shouldn’t grow stronger. Now when major banks are overwhelmed by the economic crisis, they are caught off guard. The crown prince’s timing is now very good.

On the second day after the bill was announced, the heads of the Bank of England, the National Bank of Paris, the National Bank of Russia, and the German Reichs Bank in Romania sat together to discuss the countermeasures. Obviously, financiers are not vegetarians. The pursuit of profit by capital will not obediently submit to a financial bill. A battle must be taken to convince both parties.

Several persons in charge are discussing the issue intensively. The head of the National Bank of Russia in Romania, Tiromotov, took the lead to speak: “Romania is the persecution of our foreign banks. We can’t just succumb to it, otherwise this business will not be able to do it.” There is a reason for such excitement. The National Bank of Russia has the most business among several foreign banks in Romania, and the bill has the greatest impact on him.

As an ally of Russia, Mondric, head of BNP Paribas, also expressed support. "Mr. Tiromotov is right. We must show our attitude and not damage our interests." BNP Paribas has less than one-third of the Russians' business in Romania. Anyway, there are polar bears to support it. It doesn't matter. Losing is also the first bad luck for the Russians, and winning can expand the scope of business.

Ellison, head of the Bank of England, also expressed his views. "I think this bill can be appropriately revised. After all, we still have to do business in Romania. We still need a little respect for the government. We can pay 5% of the deposit. I heard that the Romanian government is relatively short of money recently. They paid 6 million pounds, which I believe will make Romania feel our sincerity."

Ellison's speech drew Tiromotov's questions. "Then what collateral do they take?"

"The seigniorage can be used as collateral." Ellison said calmly, this sentence aroused great interest of Tirotov. "If this is the case, then we can pay more for the Romanian government. I believe that 10 million pounds is also an acceptable figure." Obviously Russia has a grievance with Germany's previous purchases from Romania, which puts pressure on Russia's western land. increase.

"What does Mr. Cromander think of this proposal." The French chief Mondrick asked without saying a word, as if he was a transparent Cromander. As the head of Deutsche Reichsbank in Romania, Cromander, actually wanted to applaud the hard performance of the three people in front of him. Obviously they had negotiated it a long time ago, mainly because they were afraid that the German Reichsbank, which was the pocketbook of Wilhelm II, would attack them behind the scenes. Their worries about the current relationship between Germany and Romania are very reasonable. Cromander had been thinking about how to stab them in the back before.

It is normal for the two parties to be hostile now. Therefore, the three parties responsible for Britain, France, and Russia will focus on Cromander in this discussion.

"I need to report this matter to the country. It's beyond the scope of my duties." Cromander said with a slack, "Could it be that you can't make a decision on anything." As a feud, Mondrick, a Frenchman, did not forget to ridicule. a bit. Cromander pretended not to hear anything, picked up his jacket and gestured to the three. "Farewell."

After the three of them watched Cromander walk out of the room, Mondrick spoke up. "I knew that the Germans were unreliable." "At least he didn't refuse. This is good news." Ellison expressed his opinion.

Cromander returned to the office and asked his assistant, "Has the country not sent us any news?" "It hasn't been estimated that the government still needs instructions from the government." The assistant replied. Unlike private banks, which only cares about profits, Deutsche Reichsbank sometimes needs to bear some government requirements, which is also its responsibility as a central bank. At the end of get off work, the assistant came to Cromandel's office and handed a telegram to the person in charge in Romania. Cromander saw just a few words in the telegram, ‘help is precious when it’s most difficult. Cromander destroyed the telegram after reading it The next day, Mondrik asked straightforwardly after discussing it again. "Can you talk on behalf of the Deutsche Reichsbank?" "Mondrick, you are too direct. This is not a gentleman's work." Ellison said roundly, but he also looked at Cromander, obviously hoping to get an answer. Cromander's answer did not disappoint them. "I can now negotiate on behalf of the Reichsbank."

Tiromotov asked first, "Do you agree with yesterday's proposal?"

"Most of them are agreed, but the proportion of capital contribution to the purchase price needs to be discussed." Cromander said in a full act.

"A quarter of all of our four banks." Mondrick's seemingly fair proposal, "This is not going to be too unfair to our Deutsche Reichsbank." Cromander retorted loudly. It is obvious that these three are now one. At that time, it will be 75% vs. 25%. If Cromander agrees to such an obvious pit, Deutsche Reich Bank has enough reason to suspect that he is an undercover agent.

"Our bank's business in Romania should be the fastest to get 45% of the capital contribution ratio." Cromandel Lion said loudly, "This is impossible," Tiromotov almost jumped to retort. If they follow Cromander's plan, then they will use no energy, precisely because they want to suppress the German capital in Romania, so as to expand their share.

"The two hope that we can come up with an acceptable plan instead of the lion's open mouth." Ellison was also troubled by the quarrel between the two. After a fierce battle, the payment was finally set at 8 million pounds. Due to the need for France to win over Russia, Romania and France, which it values, have transferred part of the proportion. The final result is that the British invested 17.5%, France 15%, Germany 32.5%, and Russia 35%.