The current problem is, on the one hand, Rockefeller started a new business, and the Republican government watched him as a troublemaker, and was preparing to take the opportunity to deal with the "Morgan Trusts". Rockefeller's spokesperson took the opportunity to start activities around, preparing to take the opportunity to seize the financial dominance of Wall Street and even the entire United States. On the other hand, distrust appeared within his group. Some banks believed that Morgan took advantage of the situation and even suspected that he wanted to take the opportunity to eat the small fish.

The cooperation with the Jews and Zhou Tongxu certainly helped him make a lot of profits, but also accumulated a lot of jealousy and even hostility. The Treasury Secretary of the Republican government, whether it was George Bruce Cotlew of the Theodore Roosevelt administration, or Franklin McVeigh, who had just taken office, all believed that it was Jack Pyrmont Morgan and those "Morgan Financial Trust Tycoons" who caused this disaster and made great profits.

"The United States is not China." Old Morgan said with a silence for a while, "Your country has an emperor, and he can solve China's problems... But the United States, you must know that since President Andrew Jackson closed the Second American Bank, we have not had a central bank for seventy years. This is a free federal, and politicians full of democratic ideas and free ideas are instinctively afraid of everything with the word "central". What they think every day is that they must not "restore" the royal power."

"But the problem now is beyond the scope of the people's capabilities." Xue Dongcheng spread his hands, "Neither you, nor Mr. Rockefeller or Mr. Vanderbilt, can no longer rely on your own efforts to get rid of this nightmare. You must admit that if things continue, Wall Street will close within half a year and the United States will go bankrupt."

An invisible cold current made everyone tremble slightly.

"If we face such danger, what plans will the antitrust 'warriors' of the Republican government propose?" Xue Dongcheng smiled, "The establishment of a state-owned Federal Reserve Bank to supervise Wall Street. Arrange the Justice Department to investigate the financial markets, and even promote Congress legislation to grant the Justice Department privileges... At that time, Wall Street will be in sorrow, and the American industry will be in trouble: if this continues, banks will leave one after another, and the United States will go bankrupt first, and even wait for the establishment of a savior-like state-owned central bank. The Democrats will fight to the death to revive this move aimed at restoring the royal government. State governments will protest against the federal government's violation of autonomy, and the United States will fall into chaos."

"If at that time there was a respected Republican senator, such as our respected Senator Aldridge, the chairman of the Congressional Finance Committee, came forward to propose a more easing plan, and the banking community would lead the change and establish a Federal Reserve Banking system led by banks in various regions," Xue Dongcheng paused, "and at this time, a respected and powerful industrialist on Wall Street. For example, a respected Scottish oil tycoon came forward and decided to lead the establishment of such a reserve bank, friends. How do you think Americans would face this idea?"

"Republican conservatives and the overwhelming government will compromise, the business community will be impatient, and Wall Street will regard them as saviors and rush into it." Xue Dongcheng said. "As for the people who are angry with the trust and want to eat raw meat on Wall Street, they will learn the truth from the respected Republican senators on Capitol Hill from the White House antitrust fighters in the head of Morgan Bank and the Tammonique upper-level Wall Street banks and the degenerate Democratic upper-level kidnapped the United States, and they caused the United States to fall into such a disaster."

Old Morgan's hand trembled slightly.

"Well, I admit it." Old Morgan was still silent, Vanderbilt had surrendered happily. "We don't want the Republican radicals to succeed, because it violated the foundation of the United States: free competition, and they are more like some trusts than to attack trusts. I also admit that unless we now cash out all our assets and take out the last copper plate to rescue all banks, there is no possibility of saving the crisis. And even if we do, we may not succeed. I must also admit that I have no good feelings for people like Rockefeller."

"Maybe we can immigrate to China." Little Jack Pyrmont Morgan looked at his father's heavy face and joked casually. Then his father glared at him fiercely and immediately sighed, "Okay, I admit that this joke is a bit cold..."

"So, Donald." Vanderbilt ignored Morgan and son and spread his hands at Xue Dongcheng, "What antidote can you bring to us? Who will save us? Is God himself?"

"Maybe it's not God himself, it's better to call him an angel." Xue Dongcheng smiled, "As for God himself, maybe he hasn't arrived yet, and it won't be too long... I suggest making a call, friends. When you see him, I think there will be some different gains."

"who?"

"Our common friend, a true financial genius." Xue Dongcheng said slowly, "Paul Waberg, senior partner of Kuhn Loeb."

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The conference room door of the China Palace was tight, and the windows were pulled with velvet curtains and incandescent lamps were turned on.

The important officials of the cabinet all looked solemn.

"...The above is the current situation. The cabinet's overall opinion, the cabinet's response measures have achieved certain results, but the trend of the national economic downturn has not been fundamentally improved. At present, the cabinet's next action proposals are two: the first is mainly to increase the intensity of credit issuance and government expenditure: the base loan interest rate is reduced from 4% to 3%, and the reserve requirement ratio has dropped to 2%. The Ministry of Finance can issue the first special treasury bonds in 1909, and issue treasury bonds with a face value of 400 million Chinese yuan to supplement the national use by the Dutch-style bidding method."

"According to the plan, the Ministry of Transport, the Ministry of Industry and Commerce, the Ministry of Agriculture, etc. have also drafted additional plans for public utilities investment, which are summarized by the cabinet, and requested the Congress to add an additional annual state budget of 500 million yuan to further expand the coverage of social security, build railways and roads and several river bridges, build thermal power stations, accelerate the construction of public rental housing, and even raise salaries to teachers in public schools to support the popularization of education."

"The second plan is roughly similar in monetary and fiscal policies, but in terms of government expenditure, it will focus more on military restructuring. The National Defense Outline will be revised in 1906. The total scale of the national military will not be expanded, but the army expenditure needs to be increased on a large scale. In recent years, although the increase in military income has not been slow, compared with the popularity of many industries. It is inevitable that there will be some glory no longer. Military schools at all levels also have voices, reflecting the gradual decline in the quality of students... The military's clothing

Preparation, over the years, has been only constantly testing, and there is a need to expand the scale of changing gears. The transportation infrastructure and military facilities in the north and southwest must be vigorously strengthened... and the construction will include many engineering companies that are militarized and organized, not in the name of the army. But in fact, it mainly recruits unemployed workers, and conducts militarized training and organization in the construction to expand the reserve force... The main purpose is to further enhance national defense capabilities to cope with the international turmoil that may be caused by the economic crisis."

After Tang Shaoyi finished speaking, he bowed and sat down.

"Thank you, Prime Minister." The emperor turned to Finance Minister Lee Dengyun, "What is the situation of the state's revenue, expenditure and liabilities in the Ministry of Finance?"

"Last year, the national revenue and expenditure generally improved, with a surplus of 15 million Huayuan. In 1907, the deficit was 141 million Huayuan, mainly due to the decline in the amount of state-owned industries invested in fixed assets, the end of the theater reconstruction investment, and the increase in fiscal and tax revenue."

"In terms of debt, the total debt of the central government has reached 8.3 billion Chinese yuan, of which 100 million pounds of foreign debt must be paid within the year. At present, there is still a limit of 1.7 billion Chinese yuan before the maximum bond issuance approved by Congress."

"How is the situation on the central bank?"

"Currently, the central bank's hard currency reserves, including precious metals and foreign exchange, exceed 800 million pounds, and private foreign exchange is estimated to be no less than 230 million pounds. The total deposits of the national bank have reached 22.5 billion huayuan, and the total tier 1 capital of the bank is 5.4 billion huayuan."

After asking around, Zheng Yu never commented.

Until everyone finished speaking, looking at the de facto highest decision-maker, Zheng Yu slowly spoke: "I know that many people privately feel that it is a mistake for me to fail to take timely actions to quickly turn the situation around. I also know that many people, even some of them here, are secretly worried that I will take this opportunity to monopolize power, weaken the Congress and the cabinet, and seize the people's expectations."

Everyone exchanged their eyes secretly and smiled bitterly in their hearts. Although they had long experienced this person's sharp style, they were really nervous when they were revealed to each other in person.

"I won't blame you for thinking this way, because this is human nature. However, it doesn't mean I will accept it." The emperor said calmly, "We have been together for so long, and we still have to have some trust... But I won't force you. Today, I think there are some things that should be exchanged."

"There are four reasons why you have been summoned to agree on this matter until now," Zheng Yu said. "First, the situation itself is not that serious. After all, the root cause is the bankruptcy of European and American banks and the bursting of speculative bubbles, which is just an industrial reshuffle and wealth transfer between countries and within countries. It is not a problem based on the economic ontology. So many economic crises have been tormented, and it will happen every few years, so no one should be worried about this."

After hearing this, everyone couldn't help but breathe a sigh of relief.

"Secondly, the situation is still unclear, and the cards in our hands are limited. If there is any problem in the future, it will be difficult to end. At that time, once something unexpected happens, big problems may occur."

"Third, China is also time to experience a real economic crisis and reshuffle."

Everyone was stunned.

"This principle is actually not complicated." Zheng Yu said, "For example, when you farm, you need to clean the weeds in the fields regularly. For example, when you plant fruit trees, if they don't grow well, they have to prune them or even eliminate them. The same is true for the economy. Long-term economic development, especially with too much government intervention, can easily lead to distortion of market information transmission. Many economic organizations with low economic efficiency can not only exist for a long time, but will even develop rapidly in abnormal shapes."

"Long-term rapid economic development will also lead to general irrationality in enterprises and greed for big and fast speed. These factors accumulate, namely the crisis in the prosperous times and the corruption hidden under the rapid economic development."

"In the past few economic crises, the government has adopted so-called counter-cyclical regulation without exception, that is, expanding demand by relaxing credit and expanding government fiscal expenditure. But after a few rounds, whether it is a consortium, a company, or even the imperial and state-owned industries, it is inevitable to come to a conclusion: not afraid of oversupply, the government always needs to provide a bottom line; not afraid of inefficiency, as long as the enterprises are large enough, the government always needs to save it. As a result, the year is good and the year is bad and the year is bad and the year is bad and the production needs to be expanded. This cycle has certainly quickly improved the country's overall production capacity and supported it.

The country's industrialization and urbanization even supported a national war, but in the long run, it was tantamount to quench thirst. In the end, the government's debt became heavier, the enterprise's laziness became stronger and stronger, the survival of the fittest could not be completed, and advantageous enterprises could not absorb the effective assets of disadvantaged enterprises at low costs. In such a market failure environment, bank credit could not truly fulfill the risks, and the result was that banks were lazy, and they tried their best to save overdue enterprises, relying on borrowing new and repaying the old to support the government to save the economy. In the end, multiple problems continued to accumulate."

"At present, even if the empire is released into the world, it is no longer a drop in the ocean. In the past few years, it has mainly relied on local construction, the reconstruction of newly restored territory, Russia's reconstruction, European and American speculation trends, and the further rapid expansion of domestic production capacity. Although all industries are prosperous, they are inevitably uneven. If they are not cleaned up in time, they will just be a headache to treat the head and feet, and the entire economy will rely on expanding spending and increasing debts just like taking drugs. In the end, the country's credit goes bankrupt and the economy collapses."

"Some people think that this kind of cleanup should be enough for the government to pay more attention to investment guidance and other aspects. But looking back, why have state-owned industries never competed for private industries in areas with a relatively high marketization? Why do they still have to rely on government protection in the end? Administrative monopoly can live a more prosperous life? The royal family has changed over and over again, and in fact, the royal family has gradually released the shares in their hands. Whether it is the government's policy "guidance" or "guidance", the final effect is very limited, and it even plays a negative role. Collusion between officials and businessmen, enterprises do not do their jobs, and use policies to deceive loans and subsidies. On the contrary, those industries that the government does not support are more vibrant by the people themselves."

"Economic production ultimately requires continuous survival of the fittest. This choice is not determined by the government bureaucrats' fingers, but by the result of fair competition. What the government needs to do is to ensure that there is a fair competition environment within the country and achieve the continuous survival of the fittest of domestic productivity."

"So, the crisis itself is a cleaning process, washing away the rotten parts and allowing the stronger and healthy parts that survive to produce antibodies. They will face the overall economic situation more rationally in the future and learn to make prudent decisions."

The emperor's words made many people think. Xie Zhong and Tang Shaoyi looked at each other and were a little surprised.

"This crisis is to remind everyone with bloody facts. The government will understand that everything should not be too optimistic and should keep a hand at all times. Business owners will understand that the key is not to just seek speed and expand blindly, nor to crazily borrow money to expand production, but to focus on product quality, internal management, market channels, and subsequent innovation; workers will understand that the economy is not always upward, and enterprises will also have difficulties. If the price for wages and benefits is too high, even if there is no problem with them, the enterprises may collapse in fluctuations, and finally lose the outcome."

Having said that, none of the people present were stupid. Everyone understood the emperor's meaning and couldn't help but be amazed.

If you have a long-term vision, this person can be regarded as a peerless genius.

Even the late emperor Zheng Ying and the first prime minister Chen Lei have never proposed this principle. In the past, in the face of crises, they basically relied on borrowing, repairing projects, expanding arms, and reducing taxes. But this time, this person put forward an unprecedented new view: using the crisis to clean up the weak parts of the economy, improve the overall health of the economy, and improve development potential.

"The crisis itself is normal, there is no need to worry. The United States has experienced so many crises, but the economy is getting healthier and healthier, which is proof of this." Zheng Yu said, "This time, my idea is to use the economic crisis to achieve economic transformation, truly get rid of the ills and rotten parts accumulated over the years, and achieve light work. The imperial economy after the crisis will be healthier, more dynamic, and more maximal."

"From now on, enterprises must understand that they cannot rely on the government one-sidedly, but should respect market laws and truly use wisdom and perseverance to improve their survivability."

"The government is not a nanny for the enterprise, but a cleaner. They just ensure that the enterprise grows in a clean and tidy environment. The real growth lies in the enterprise itself correctly understanding itself, the market, and the use of laws. In the long run, enterprises are the main body of economic development. The government only plays an auxiliary role, and must focus on the overall situation and the long-term."

All the important officials of the cabinet stood up and bowed: "As Your Majesty said, we are amazed."

"Actually, there is another point, which is also very important." Zheng Yu's words stunned everyone again, "To a large extent, this is the direct reason why I made an appointment with you today."!~!

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