Chapter 84:


    13. Golden War  8


    On10 February1813, a mass assaultand murder in front of theLondon Stock Exchange was enoughtoresonategreatly in theBritish society.


    Therewere some low-ss peoplewho werereally strugglingamongthe assants, but most of the peoplewho invested in securitiesand bondmarkets were upper-ss Britishmen, intellectuals, andpeople who belonged to thesessfulgroup thatmany envied.


    Thefact that suchupper-sspeople wieldedweapons andassaulted eachother, killingfive people, was news thatcaught the publics attention. But Britainstrue misfortune was notsocial but economic.


    London Post: Endless crash! Is it theend of Londons stock market?


    Weekly News: Fathers threw themselvesinto theRiverThames. Whodrovethem into acorner!


    Weekly News: The worst down shock since the South SeaCompany crash! What will be the impactonthe kingdoms economy?


    Oxford Gazette: Oxford economicsfaculty warning, theBritish financialmarkets could regress at least 10 years


    News Letter: The stock investors reasonable anger. Sowhat is thecauseofthis crash?


    Some might question the fact thatthe fallofthe value of bonds and securities could shake the whole economy of the kingdom, butthat wasbecause they did notknow theeconomicand industrialstructure of the country. It wasnoexaggeration to say that the UnitedKingdoms economywas acollection of numerous businesses.


    Therewere many foreigntradingpanies, including theEast India Company[1]thatwas devouring India, textile manufacturers including cotton, wool, etc.


    There wereminers who mined coal, neededfor mechanizedpower, silver andiron, and steel mills to processthem.


    In addition, businesses dealingwith canals, transportation, weapons manufacturing, chemicals, paperand ss industrieshad sprung up andwere developing one after another.


    Finance wasthe capitalfor entrepreneurswho established these businesses. Onlya fewpeople set up andrun abusinessentirelyontheirown capital.


    Most of the businessmen received investments from financial firms using their shares, family property, andnd.


    Britainseconomy wasrun by businessesinvarious industries. Andthe businesseswere runbycapital invested in thefinancial market.


    In the end, Britains finance and economy wereinseparable. If financecopsed, Britainseconomy copsed. In the meantime, a line of articles cameout. It wasenough to catch peoples attention.


    Daily Current: Whatcaused thisbig crash was the Cabsnew tax amendment? A low-level trick startedbyPrimeMinisterJenkinson destroyed thestockmarket.


    Now it waseveryones turn to lookatWestminsterand 10 DowningStreet.


    ===


    Thergest and oldestbank in theUnited Kingdomwas by far theBank of Ennd in the heart of theCity of London.


    In 1694, Britain, which wasatwar withFrance, established theBank of Ennd withinvestment from numerous investors to payfor the war, and even grantedthe solerighttomint theBritish currency, poundsterling.


    Therighttomint money wassimply apowerfulforcethat could shake a nations economy. But theBank of Ennd could not project as muchinfluence as it was given.


    First of all, this bank, which hadthe right to mintmoney, had been constantlychecked andmonitored by the British government.


    TheBritish royal family, Westminster Parliament, high-ranking hereditary aristocrats, Jewishmerchants, andeven foreign capital, heldthe banks sharesevenly.


    Noone could own theBank of Ennd entirely becausethey hadbeen wary of eachothers presence andthe emergence of overwhelmingmajorityshareholders who would control the bank. So whowouldseed theBank of Ennd?


    Althougheach businessman hada differentopinion on this, sixout of ten of them would pickBarings Bank.[2]


    Barings Bank was founded in 1762 and had a longhistory. Itwas hardtosee, butithad madeits nameknownnot onlyinthe United Kingdom but also in the internationalmunity, bytaking on manyfamous contracts andguarantees.


    The British EastIndiaCompany also recognizedthe value of the bank and invested hundreds of thousandsofpounds, andbought foreigncapital at a bargainpricewhen Amsterdamwas upied by France.


    It was Barings Bankthat established branches in Washington, Massachusetts, andVirginiaassoon as theUnited States becameindependent, and it wasalso in chargeofbroadcasting the Louisianatransactionbetween Franceand the UnitedStates.


    Basedonthe above significant sessand performance, Barings Bankhad grown intoa financialorganization thatcoulddeal with hugesize of capital, just nexttothe BankofEnnd.


    Rothschild, DIsraeli, Mendelssohn, andotherJewish families fromcontinentalEurope wereestablishedinLondon and emerging in thefinancial sector, but theywere still small seedlingswith potentialgrowth. Butthereisa true giant thatcan sinrger, heavier, anddeeper, reaching thedepths of the ground. The only realfinancial conglomerate in this era whocan say this withconfidence is theBaring family. Theyre theones whocan contrnd leadall thisfrom behindThe authorofthis columnisvery imaginative.


    Well, thats not quite wrong, though. I dont feelsobad becausethat shows howmuch ourfamily rised, right, brother?


    Themiddle-agedman who nervouslid down the newspaperwas Thomas Baring, the eldestson of the Baringfamily.


    The rtivelyyoungman witha twirling smile next to him wasHenryBaring, thethirdson. Barings Bank, as you could seefrom itsname, was owned by the Baringfamily.


    After the death of itsfounder Francis Baring, his sonsran the giant bank, cooperating with eachother, following their fathers teachings.[2]


    Andthey didsowhiletrying not to deviate fromthe Cabs line as muchaspossible. But nowthe story was differentwhen there wasa crossroads betweenBaringsinterests and thedirection of the British Cab.


    PrimeMinisterJenkinson seems to be suspiciousofus, right? Wonderingifwehave ledthis big crash. And about gettingmediaexposurebefore the taxamendment was released.


    Its nota very absurd im. But theyshouldnt me their failures on us. Howmuch money didthey steal from our family?


    Theirtone wassoft, but the Baringbrothers eyeswere cold. It wastrue that theyhad soldhuge securities and bonds in themarket before thecrash.


    Butthe Baring familywas not theonly odoso, as numerous financial institutionsthat foresaw astockmarket contraction did thesame. Itwas onlynatural. Noinvestorwouldwant to hold securitiesknowing that acrashwasing.


    However, Prime Minister Jenkinson andhis currentcab were describingitinthe media as if it werethe doing of the Baringfamily and Barings Bank.


    It wasunbearable to theBaring brothers. As they werethinkingabouthow to repay this, one personcame to them, as if sent by fate.


    This is a letter from the boss of L.V.C. Financial.


    The rulers of Barings Bankrecalledthe nameofL.V.C. Financial, with itsfacelessand nameless boss.


    It wasa group with sophisticatedconcealments whose identity could not be revealed even by those who controlled information in the underworld. They did notknow where they were, but they werevery professional. It smelledsuspicious, but theydid not care.


    Itdid not matterwho theywere in this world anyway. Therewas onlyone thing to argue about, andthat waswhether it would be beneficial to themornot.


    Inthat sense, the letter brought by Barings butler andthe words contained in it were verysatisfying to them.


    We havebeen leading aboring war fortoo long. Itstime to wrap thisup.


    Thomas Baring foldedthe letter nicely. Peace could bring wealth andmoneytomany people, but warpresented enormous wealth to a few people.


    However, there wasalso an expiration date. War wasthe closestword to destruction after all. If handledwell, itcouldgive convenience, otherwise it could be seenasa dangerous, bloody toy.


    TheBaring brothers thoughtitwas timetosort outthe dangerous toys. Some people mightugh at this.


    How could the ownersofa bank stopa warbetween thepowerspeting forsupremacy in Europe?


    However, at least in thissituation, it hadbe possible. Because theyhad the power of theBaring family, the ruler of Londons financial district.


    ===


    Investorswho purchased securities or bonds, whether small orrge, flocked to the front of thePce of Westminster and 10 Downing Street to demandthe truth.


    Another group stageda sit-ininfrontofBarings banksheadquarters, saying, spit out themoneyyou earned from unjustified spection.


    The royal familyremainedassilent as ever, the prime minister came to the residencethrough theback door as if he was fleeing, andBarings Bank remained calm.


    Whigs men, including Charles Grey, attacked Prime Minister Jenkinson, and the media stabbed and attacked himeverywhere, revealing their presence (in order to gain advertising).


    Cabfigures putthe me on eachother, and economists poured outcrisis and apocalyptic theories as if it were the endofthe century. As societybecame extremely chaotic, they shotateach other.


    But thereal crisiscame without asound. And that was howthey found themselves drowning in the abyss when it camepiercingtheirchestand splitting their heart.


    Londons biggeststeelmaker, Marias, went bankrupt!


    ===


    Prime Minister RobertJenkinson, whohad not slept well in the past few days, barelygrabbed hisforeheadwith a darkface. The Cabofficials and bureaucrats were all speechless.


    Marias Corporation copsed. The newsitself was a shock, buteveryonehere knew it was just the beginning.


    The steel industry is alreadyina semiastate. Thepaniesare on the verge of bankruptcy for failing to pay their workers sries andare demanding bailouts from the government.


    Goddamn it! The governmenthas no money right now!


    Though theyare in alittle better shape than the steel industry Paper, ssand textileindustries arealso allina state of emergency. Financial firms andbanks, which havesquandered capital in the stock market, are in dangerofbeingoverthrown as they withdraw investments.


    It could not have happened ifpanies were in goodfinancial shape. Theproblem wasthat Britainsunstableeconomy, a long war, and acut in the trade market(Europe) caused by the continental blockade hadbeen constantly damaging their financial base. Andthe difficulties in theNew World trade market were adding to it.


    Whenthe continental trade blockade was implemented at theinitiative of France, Britainturned its eyes to the marketonthe new continent.


    Spains colonial countries, including Nueva Espaa, did notfollow the policies of their home country(at thattime Spain wasfightingagainst Britain along withFrance) andcontinued their business withBritain.


    Then, as the warbrokeout betweenSpainand France, the total volume of trade over the Antic Ocean exploded, and Britainwas abletomake up forits lossofnot being abletotradewith Europe.


    Merchantsinthe United Kingdompetitivelyincreased their credit limitsbyselling goods. Gold from the NewWorldwas whatmerchants wanted most.


    However, asalways, theinternational situationchanged dramatically. Social andeconomicturmoil came as countries in theNew World raised their weapons to gainindependence fromSpain.


    Customersinthe New World putoff paying with goldormoneytheirpotential enemies, the British merchants. The chain effect urred immediately.


    Manchesterand sgowbusinesses went bankrupt one after theother, and even Londons major banks stumbled and thevalueofthe pound plunged. Thiswas exactlywhat happened between September andOctober 1812.


    Never! No more damage shouldbedone to themarket! Even if we drawupanextrabudget right now, wemust prevent businessesfrom going bankrupt! Otherwise, thingsmay get outofhand!


    Economic officialswho participated in themeeting spoke in unison. The bossesand businessesthat hadbeen recently hitwere reeling fromthe shock.


    A small gapcouldbreakdown an embankment. If onecopsed, theentire Britishindustrycouldcopseasrapidly as falling dominoes.


    These fuckingcapitalists! You look at the current situation anddare saythis!


    Prime Minister RobertJenkinson grittedhis teeth. Thecapitalistsonly took careoftheirown profit until theend, no matterwhat happened to thecountry.


    Prime Minister Jenkinson andthe Torycab hadset up emergency aidfor businessesatrisk of bankruptcy. As technology and industry develop day by day, the wealththey generatedwas on the rise.


    The trade values andresources broughtfrom theexpandedIndian colonies by the East India Companymade it no longernecessary to relyonthe New World andthe European continent.


    Obviously, ifthey gotthrough this crisis, Britain would be able to enter aboom again. Everyoneinthe Cabthought so.


    The problem, however, wasthat thethreshold of thischallenge was too high. Theembankment that began to burst was unstoppable with onlysmallrepairs. The fundinghad melted away.


    The paperpany, Courant, wentbankrupt. The ss factory in Norwichclosed. Thebankruptcy procession happened in an instant, likedominoes.


    It took onlyeightdays formajorindustrial citiesinthe United Kingdom to be paralyzed, including Birmingham, Manchester, Nottinghamand sgow.


    Tens of thousands of unemployed people wholost their jobs poured outinto thestreets. Some of them wereworkers whocontinued to workwith unpaidwagesbecause of thedifficulties in theirpanies.


    Whenbusinesses went bankrupt and could noteven paywages, the tools they usedintheirjobs suddenly turnedinto weapons.


    Comrades! Lets getour rightful rights back intoour hands!


    If youdontstandfor yourself, this damncountry wont do anything foryou!


    Bread andwagesfor the workers!!


    Theangryworkers rantothe factories andbusinesses they had been workingfor. Their huge hammersbrokethe gates withouthesitation. And theysmashed themachines. It was an extreme machinedestruction, the re-emergenceofthe Ludditemovement.[3]


    TL notes


    [1]EastIndiaCompany


    [2]IntheBaring family,Francis Baringfounded theBarings Bankin 1762, and withdrew from business in 1804, leavingthe bankinthe hands of his three eldestsons:Thomas,AlexanderandHenry.


    [3]Luddite movement