Ordinary small businessmen cannot afford to invest in stocks with a high price of tens of pounds. Once there is a large-scale sell-off, it will be an avalanche of bad market conditions."

Song Biao nodded slightly.

Regarding this matter, Song Biao once discussed this matter carefully with Zhang Kangren. Zhang Kangren suggested that Song Biao directly purchase one-year futures in the London and Chicago futures markets. During this period, the price per pound of rubber in the London futures market has slowly increased to

2 shillings and 7 pence are slowly rising towards 3 shillings.

If the actual price can rise to 10 shillings, you can earn about 4 times the profit, and investing in securities should be similar. It just depends on the capacity and scope of speculation of the two markets. Because the scope of securities investment is large, theoretically it has a greater margin.

room for growth.

Zhang Kangren provided another suggestion to Song Biao, which is to buy long-term contracts in the futures market and mortgage the contracts to banks in exchange for funds to buy stocks. He just considered that the current capital market is a seller's market and loan interest rates are high unless prices skyrocket.

More than 15%, otherwise this kind of speculation will not only not make much profit, but also bear great risks.

Song Biao decided to take a gamble. He actually didn't have much working capital in hand. Instead, he mortgaged the shares of Petroleos Mexicanos, which had already produced oil, to foreign banks, raising about seven million pounds from it, plus other

Some funds were collected to cover the cost of 10 million pounds.

If Song Biao used borrowed money to buy futures and then borrowed money to buy securities, he would only make money. If he didn't make money, he would suffer too much. The huge interest on the two borrowings could cut off all the profits of Far East Commercial Bank's main business.

The Far Eastern Trading Company sold 1.12 million tons of soybeans in the international market before December 1907. Including its own 40,000 acres of land to cultivate fine bean seeds and plant soybeans, the overall income was 7.22 million pounds. This is the real main business of the Far Eastern Trading Company. However,

, the Far Eastern Commercial Bank itself invested heavily in industry through bank lending. Even excluding railway investment, which also relied on foreign debt, the cumulative total investment in various industries in 1907 reached 63.4 million silver dollars.

In other words, even if all kinds of real estate are included, Far Eastern Commercial Bank's debt ratio is very high. It can operate normally because it adopts internal debt methods, and most of its debts come from Far Eastern Bank.

In the past two years, Song Biao has hardly withdrawn a penny of profits from the Far East Commercial Bank for military expenditures. He has used hidden taxes, issuance of government bonds, borrowing funds from other banks, and other foreign aid to ensure that

expansion of the army.

Song Biao, who seems to be as stable as a mountain, has actually been taking risks.

Although there is an erupting gold mine waiting for him in Pemex, and there are currently six oil wells with medium and high output of several thousand tons, it is still far away from the actual explosion. Even if it is sold now, it will be worth at most one thousand.

million pounds, which is why he was able to borrow only seven million pounds from the Rockefeller Foundation through Cones Vanderbilt's introduction.

Development is always unpredictable. Maybe others can develop the legendary oil well with a daily output of 10,000 tons in the next few years, but it is normal for you to be unable to bear fruit. There is no need to blame others.

God is very fair most of the time.

Song Biao, who was spending money like water, had to find a way to make a bet. If he failed, he would sell Pemex, which may be worth over 100 million pounds, to the American Standard Oil Company at a low price of 7 million pounds.

If that were the case, Song Biao would definitely find a piece of tofu and kill him. (Your support on this site..com is my biggest motivation.)
Chapter completed!