The turbulence in the stock market soon rippled through the entire society.


    Before the curtains were fully drawn back, capitalists had created a false market boom to transfer their losses, but that was no longer needed now.


    Once the thin veil was pierced,panies beganying off employees and reducing production. The economic crisis hadn’t even started yet, but the wave of unemployment had already arrived.


    The news that had been concealed was now open for all to see. It was only at this point that everyone realized the so-called good news waspletely fabricated.


    The so-called purchase orders did indeed exist, but they were not signed by the Russian Government or the British Government; instead, they were signed by a series of newly established shellpanies.


    Since they were shellpanies, they naturally didn’t represent the government’s stance. The so-called entrusted procurement was fake to the core.


    Put bluntly, this game was not very clever. Perhaps in other countries, there might be government-entrustedpany procurement, but in the Russian Empire, it was utterly inconceivable.


    The Tsarist Government had the most exasperating and resentful bureaucratic team. How could such tedious work possibly be outsourced?


    The department known as the most incorruptible procurement office in the Russian Empire absolutely would not tolerate such middlemen milking profits and wasting the nation’s wealth.


    Before the crisis struck, the ability of the French finance group to unite numerous capitalists to act together and control mainstream opinion, artificially creating a market boom, all evidenced their immense power.


    Phaidon Machinery Factory, as a rising star in French manufacturing, was established in 1867 and had now be the leading enterprise in French mechanical equipment.


    Industrial technology requires time to mature. Having stood out from among manypetitors in just twenty years, Baron Friedrich, the founder, had rendered great service.


    Sir Friedrich, who should have been basking in sess, was now puffing on a cigar, steadily exhaling swirls of smoke.


    His secretary reported softly, "Your Excellency Baron, ording to thetest statistics, eighteenpanies including Sed Textile Factory, Aidolon Canned Food Factory, and Allensburg Spinning Mill, have requested to return their orders.


    The total value of these returned products is approximately 30 million Francs, of which about 6.57 million Francs in final payments have not yet been received by us.


    Furthermore, twenty-sevenpanies that have not yet received their machinery equipment have dered their orders void and will not be making any further payments.


    We had already arranged the production of this machinery equipmentst year, and it’s toote to stop production now.


    If we cannot find new buyers, our preliminary estimate of our losses will be as high as 54 million Francs. The forfeiture of deposit can offset about 14 million Francs, so the final loss will be around 40 million Francs."


    Birds of a feather flock together. As an aristocratic capitalist, Baron Friedrich had a rather ordinary rtionship with the domestic capital circle.


    In this retreat strategy nned by the finance group, Baron Friedrich had been excluded and became one of the victims.


    The Phaidon Machinery Factory, engaged in the manufacture of mechanical equipment—an upstream industry—had its main markets domestically and virtually no international orders.


    The aging Baron Friedrich,cking sensitivity to international market fluctuations, had no prior inkling that the Ennd and Russia war would lead to overproduction.


    A momentarypse in judgment had brewed the present bitter oue. Thepany took a pile of orders, only to receive breach notifications before delivery waspleted.


    After a brief pause, Baron Friedrich said sternly, "Tell them, returning goods is out of the question.


    As long as there is no problem with the product quality, we do not provide a return service. They better hurry up and make the follow-up payments as well.


    For the orders that are in breach, ording to the contract, we will pursue their liability for the breach.


    Instruct them to suspend production of all orders temporarily. Send someone to contact the remaining customers to confirm that the orders can be delivered smoothly before continuing production.


    As for orders confirmed to be in breach, immediately reallocate them to other orders if possible. If that’s not feasible, then use the parts separately! Discover exclusive tales on NovelBin.C?m


    Right now, we simply can’t find buyers, we must cut our losses in time."


    Mechanical equipment, unlike other products, incurs maintenance costs once produced. The longer it is held in inventory, the higher the cost to thepany.


    From the current situation, Baron Friedrich did not believe that the market would warm up again anytime soon.


    Prior to the emergence of the problem, it might have been overlooked due to the market’s optimism; now that the problem had erupted, Baron Friedrich naturally perceived the deeper reasons behind it.


    The Anglo-Russian War’s material consumption did not meet expectations, but it merely detonated the focus of the conflict. Essentially, it was the cyclical phase of capitalist economic development that had arrived.


    Based on past experience, overcapacity would not only be a problem for France, but the entire capitalist world would struggle to fend off the impact.


    In these days, there were only a few countries qualified to experience an economic crisis. France, with its higher industrial production costs than those of the Anglo-Austrian two countries, was naturally at a disadvantage in internationalpetition.


    Now faced with a crisis, the first to be unable to hold out were naturally French enterprises. The French finance group, set on making a fortune from the war, became the earliest victims.


    However, these guys reacted very quickly. Before the crisis erupted, they started to shift risks, letting the shareholders bear the brunt.


    The crisis erupted so swiftly not because the finance group had already filled its coffers, but mainly because there was little money left in the market.


    In the era of the gold standard, constrained by gold reserve limits, the issuance of the franc was limited, and even less capital circted in the market.


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    You need the leeks to grow before you can harvest them, the bullish trends earlier had already lured the retail investors in. Those who didn’t escape were effectively trapped.


    Now everyone ended up as stockholders because of stock spection, and if the harvest wasn’t performed soon, it would be impossible once the news leaked.


    Based on past experience, Baron Friedrich could assert that, barring any idents, this crisis wouldst for one to two years.


    The market would need even longer to recover and warm up once the crisis was over.


    In this rapidly changing era, no one knew when the mechanical equipment would need updating and recement.


    Having a bunch of mechanical equipment on hand was simply asking for trouble. It not only posed the risk of aplete loss of capital but also consumed the precious cash flow of thepany.


    It was akin to dismantling half-finished equipment, thepany’s loss could be as high as fifty to sixty percent of the production cost, and continuing production might result in losses several times the production cost.


    The secretary reminded him, "Baron, in the contracts we previously signed, there was an agreement for a partial refund if the product fails to satisfy.


    If..."


    Baron Friedrich interrupted him impatiently, "Don’t fuss over that. If they’re not happy, they can sue us in court.


    At this point, are we afraid ofwsuits?"


    All of a sudden, there were losses of tens of millions of francs, and Phaidon Machinery Factory, which was operating well, was directly dragged into the mire.


    The banks’ collection calls were almost driving Baron Friedrich to the brink. The telephone with the cord unplugged on his desk was the most telling evidence of his state.


    "Thump, thump, thump," the sound of knocking rose. Baron Friedrich said coldly, "Come in!"


    A middle-aged man spoke softly, "Baron, people from Paris Bank have arrived and are resting in the parlor."


    As soon as he finished speaking, two middle-aged men in suits walked in.


    The leader said, "I apologize, Baron Friedrich. Our visit this time is certainly presumptuous. It’s mainly because..."


    Baron Friedrich interrupted directly, "I understand why you’re here. However, there is still a month left before the bank loan is due.


    We can talk about any issues at that time, or you can contact our public rtions department. Please do not disturb my work right now.


    Thank you!


    Fick, please take the gentlemen to rest."


    Upon hearing the words of Baron Friedrich, Fick, the middle-aged man, immediately gestured invitingly and said, "Gentlemen, please follow me."


    The leading middle-aged man stood firm, "Baron Friedrich, you’ve misunderstood. We’re here today to solve your problems, not for early collection of the loan.


    If it’s convenient for you, please spare us half an hour. The following discussion needs to be confidential, and it would be best tomunicate privately."


    Baron Friedrich was taken aback...