Capítulo 421: Chapter 420
Chapter 420: Peace of Mind
"There is no hope at all!" Klein roared in pain, collapsing in the trading hall. The staff around him looked on with sympathy, though no one offered comforting words. Such scenes had become all too common.
Klein, desperate, issued a soul torture: "Who can save us now?"
The answer was silence. The stock market, inherently a high-risk gamble, left investors to bear the risks themselves. The exchange had always shied away from responsibility, akin to the health warning on cigarette packages.
The collapse of the stock market would undoubtedly have a severe negative impact on the Austro-Hungarian economy. While a government with strong execution ability, like Germany, might weather the storm, the Austro-Hungarian Empire, plagued by economic instability, imbalances, and protectionism, faced a dire situation.
Real capitalists in Austria were attempting every means to pass on the crisis, with Hungary next door also in their crosshairs. The great nobles of Hungary, on the other hand, sought to sell their agricultural products swiftly while raising tariffs. The central government, however, could only watch helplessly, lacking the financial means to rescue the market.
Meanwhile, at the Vienna branch of the Bank of Hechingen:
"President Nakins, your bank is the only one capable of providing excess funds during this economic crisis. You can't just ignore it!"
"Mr. Sellers, I'm truly sorry. The entire Vienna banking industry is in turmoil right now. We are just barely maintaining operations and ensuring the safety of depositors' accounts. There's nothing more we can do at this time."
"President Nakins, we are old friends. My company just has a small problem with its capital chain. We don't need much. We can survive the crisis with only 350,000 guilders."
"Three hundred and fifty thousand guilders is not a small amount, and it is not something I can transfer at will. Mr. Sellers, if you listen to my advice, you should sell all the factories in your hands at a low price! The business you do is highly tied to the railway industry. According to the current market conditions, if you keep it in your hands for one more day, you will lose a lot of money. Don't think about the order. It is estimated that your customers will not even be able to pay liquidated damages."
"Well, actually, I want to sell it, but now I can't sell it at a high price, and no one will take it over."
"Then there's no other way. It's better to declare bankruptcy directly than to hold on. Employees will cause trouble if they don't receive their wages."
Sellers, perceptive, saw that the Bank of Hechingen was running smoothly despite the crisis.
In fact, Hechingen Bank's success during the crisis was a result of its previous efforts. Months ago, it had proactively addressed potential risks, streamlining operations, reducing interest rates, raising loan thresholds, and selling non-performing assets. This foresight now set them apart from their struggling competitors.
As Sellers left, Andy, Nakins' assistant, voiced concern: "President, affected by the crisis, our bank's recent business does not seem to be very good, and we don't know how long this crisis will last."
Nakins, sipping coffee leisurely, reassured: "Don't worry, the market is just cold in winter. Just because there's snow in winter doesn't mean people won't go out! The economy will still operate, but it won't be as hot as before. We just have to do our own thing well. We have accumulated enough credit during this crisis, and it will be obvious who our customers will choose next time. Maybe because our competitors have been eliminated, our business will be better in the future."
"By the way, President, here is a telegram from the headquarters that just arrived. The headquarters requires all branches to continue to lower the deposit interest rate by one or two percent."
Nakins, undisturbed, responded: "Then we will announce it tomorrow morning! Now that other banks and companies are experiencing thunderstorms, there is really no need to continue to maintain such high interest rates."
At dusk, Wiggins observed the chaos outside. As he walked out of the bank door, he saw the clerk of his old rival Cruz Bank arguing with depositors.
"Don't worry, everyone, it's time to get off work now, we are closing!"
"Asshole, you guys want to get off work before we have withdrawn our money. Aren't you treating everyone as fools?"
"That is, if you don't cash out the money today, we won't let you go."
"I heard that the railway company went bankrupt and you couldn't collect your debts. The capital chain has been broken. Why do you want to trick everyone into going bankrupt with you?"
"Repay our deposit!"
"Money back!"
Looking at this lively scene, Nakins clicked his tongue and said: "What a troubled time!"
The Bank of Hechingen was a sure winner, but due to the economic downturn, everyone's enthusiasm for saving money had decreased. Many depositors had withdrawn their money. However, it had no significant impact on Hechingen Bank, which had already slimmed down. The bank had faced a similar situation months ago when the economy was still thriving, and it had even made a lot of money.
Now, due to the drag on the entire industry, Hechingen Bank's number of depositors had decreased temporarily. However, Nakins was confident that, in time, everyone would recognize who the real winner was in the crisis.
(End of this chapter)
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