Napoleon in 1812
Chapter 84:

13. Golden War – 8 S~ᴇaʀᴄh the NovᴇlFɪre .ɴᴇt website on Gøøglᴇ to access chapters of nøvels early and in the highest quality.

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

Therewere some low-class peoplewho werereally strugglingamongthe assailants, but most of the peoplewho invested in securitiesand bondmarkets were upper-class Britishmen, intellectuals, andpeople who belonged to the‘successfulgroup’ thatmany envied.

Thefact that suchupper-classpeople wieldedweapons andassaulted eachother, killingfive people, was news thatcaught the public’s attention. But Britain’strue misfortune was notsocial but economic.

London Post: Endless crash! Is it theend of London’s 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 kingdom’s 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 UnitedKingdom’s economywas acollection of numerous businesses.

Therewere many foreigntrading companies, 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 glass 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, and land.

Britain’seconomy wasrun by businessesinvarious industries. Andthe businesseswere runbycapital invested in thefinancial market.

In the end, Britain’s finance and economy wereinseparable. If financecollapsed, Britain’seconomy collapsed. In the meantime, a line of articles cameout. It wasenough to catch people’s attention.

Daily Current: Whatcaused this‘big crash’ was the Cabinet’snew tax amendment? A low-level trick startedbyPrimeMinisterJenkinson destroyed thestockmarket.

Now it waseveryone’s turn to lookatWestminsterand 10 DowningStreet.

===

The largest and oldestbank in theUnited Kingdomwas by far theBank of England in the heart of theCity of London.

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

Therighttomint money wassimply apowerfulforcethat could shake a nation’s economy. But theBank of England 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 bank’s sharesevenly.

Noone could own theBank of England entirely becausethey hadbeen wary of eachother’s presence andthe emergence of overwhelmingmajorityshareholders who would control the bank. So whowouldsucceed theBank of England?

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 international community, 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 occupied 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 successand performance, Barings Bankhad grown intoa financialorganization thatcoulddeal with hugesize of capital, just nexttothe BankofEngland.

“Rothschild, D’Israeli, Mendelssohn, andotherJewish families fromcontinentalEurope wereestablishedinLondon and emerging in thefinancial sector, but theywere still small seedlingswith potentialgrowth. Butthereisa true giant thatcan sinklarger, heavier, anddeeper, reaching thedepths of the ground. The only realfinancial conglomerate in this era whocan say this withconfidence is theBaring family. They’re theones whocan controland leadall thisfrom behind…The authorofthis columnisvery imaginative.”

“Well, that’s not quite wrong, though. I don’t feelsobad becausethat shows howmuch ourfamily rised, right, brother?”

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

The relativelyyoungman 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 father’s teachings.[2]

Andthey didsowhiletrying not to deviate fromthe Cabinet’s line as muchaspossible. But nowthe story was differentwhen there wasa crossroads betweenBaring’sinterests and thedirection of the British Cabinet.

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

“It’s nota very absurd claim. But theyshouldn’t blame 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 onetodoso, as numerous financial institutionsthat foresaw astockmarket contraction did thesame. Itwas onlynatural. Noinvestorwouldwant to hold securitiesknowing that acrashwas coming.

However, Prime Minister Jenkinson andhis currentcabinet 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 Baring’s butler andthe words contained in it were verysatisfying to them.

“We havebeen leading aboring war fortoo long. It’stime 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 might laugh at this.

How could the ownersofa bank stopa warbetween thepowers competing forsupremacy in Europe?

However, at least in thissituation, it hadbecome possible. Because theyhad the power of theBaring family, the ruler of London’s financial district.

===

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

Another group stageda sit-ininfrontofBarings bank’sheadquarters, saying, ‘spit out themoneyyou earned from unjustified speculation’.

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).

Cabinetfigures putthe blame 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.

London’s biggeststeelmaker, Marias, went bankrupt!

===

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

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

“…The steel industry is alreadyina semi-comastate. The companiesare on the verge of bankruptcy for failing to pay their workers’ salaries 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, glassand 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 if companies were in goodfinancial shape. Theproblem wasthat Britain’sunstableeconomy, 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.

Spain’s colonial countries, including Nueva España, 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 Atlantic Ocean exploded, and Britainwas abletomake up forits lossofnot being abletotradewith Europe.

Merchantsinthe United Kingdom competitivelyincreased 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 occurred immediately.

Manchesterand Glasgowbusinesses went bankrupt one after theother, and even London’s 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 onecollapsed, theentire Britishindustrycouldcollapseasrapidly 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 Torycabinet 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 Cabinetthought so.

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

The paper company, Courant, wentbankrupt. The glass factory in Norwichclosed. Thebankruptcy procession happened in an instant, likedominoes.

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

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

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

“Comrades! Let’s getour rightful rights back intoour hands!”

“If youdon’tstandfor yourself, this damncountry won’t 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

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