Wall Street of the third generation chaebol

Chapter 73

＜ Dreadnought. (1) >

A $7.5 billion maritime security law.

Decades of naval budgets of many European powers have passed the US Congress at once by snatching them. European powers were trying to get up like dogs because of American money.

– this···. It’s not a pure naval budget, is it?

In fact, not much of the $7.5 billion was actually used to build the Navy’s warships.

The majority went to the reconstruction of US naval bases and naval shipyards ruined by the Civil War, and the budget was for the establishment of naval bases and naval ports for supply ships on the Pacific front, and colonization.

So it is not a naval law or a warship law, but a ‘naval security’ law.

In the end, the budget passed by the U.S. was enormous, ten times the annual naval budget, but the U.S. lacked the infrastructure for its navy due to its long isolationism.

Although I was surprised by America’s huge Show Me the Money,

In fact, the U.S. Navy is only now starting to lay the foundations of the navy that they have built for decades.

It was uncomfortable, but it wasn’t an unacceptable amount at all.

– Let’s wait and see.

This is the stance of the European powers.

The US maritime security law was open to the public, so it was easy to investigate. In reality, the cost of building a naval ship was more than three times the budget of the naval powers of Europe, but it was not at a level that was incomprehensible enough to return to the wartime system. Moreover, the United States is an isolationist country and a country beyond the Atlantic Ocean.

Isn’t it even a second-rate power defeated by Spain, a pseudo-African? Rather, the European powers tilted their heads.

– Can it overwhelm the Spanish fleet?

However.

The British government, aware of the naval restrictions contracts with Detroit Morgan, Barclays Bank and the Spanish government, had no choice but to look at the United States with a very unpleasant eye.

10 Downing Street.

1st Naval Officer Frederick Richards and Prime Minister Salisbury immediately met with each other, and after three days of careful discussion, they had no choice but to convince themselves of the US naval plan.

“The U.S. Navy currently has little international naval militancy in the current isolationist climate. For this reason, it is believed that there is no choice but to lack of marine measurement data and navigation data. There is no naval base right now, so we are using England’s Hong Kong garrison.”

“Then this is the budget to build that foundation. If that is the case, then the U.S. maritime security laws and naval plans are not unacceptable.”

“Yeah, I don’t think it’s a bit lacking compared to the wartime tactics.”

However, the British Empire did not dispel doubts until the very end, and 1st naval officer Frederick Richard applied for a one-on-one stand with US Navy Secretary John Long.

Unlike Britain, which lent Hong Kong garrison, the European powers did not have a direct cause to intervene in the incident, so they focused on Sir Richard’s actions.

“This is Navy Secretary John Long. Nice to meet you.”

“Yes, this is 1st Marine Inspector Frederick Richard.”

The two men continued a heated discussion for over 10 hours in the secret room (Den) of the Naval Department building.

“According to the U.S. Navy’s construction plan, there is a possibility that the British Empire’s coastal security and international maritime hegemony may be disrupted. I hope the U.S. Navy will come up with a countermeasure for this.”

The British Empire shouts ‘Anyway, the sea is mine’.

“I understand that the British Empire recently had one clash with the Kaiser Marines of the German Empire. Besides, I know that you are leading various negotiations under the water with Japan recently, and didn’t you invite the Japanese Navy to the British-U.S. military training?”

“Is that something wrong?”

“I understand the intention of entrusting it to the Japanese Navy to protect order and security in the Pacific Ocean. But that role. Isn’t that something the U.S. Navy can do?”

“…!!!”

‘Are you tired of the Pacific?’ Conciliatory United States.

When the US Navy begins to pour its budget into building warships, it will have the capability to rank first and second at once. This would inevitably increase spending under the British naval law.

After intense debate, Sir Richard and Secretary of the Navy John Long reached an agreement.

Long-Richard Esoteric.

The Atlantic Ocean is under the common jurisdiction of the United States and Great Britain.

Jurisdiction over the Caribbean Sea and the Pacific Ocean is left to the United States, while the rest of the waters, including the Indian Ocean and Mediterranean Sea, are left to the British Empire.

In fact, it was possible because the United States and Britain were allies. From the British standpoint, they also needed a hand to pressure Russia from the Pacific side.

For them, the Japanese Empire’s hand, which has not yet been verified, was not enough.

“Thank you.”

crunchy crunchy-

A secret agreement was thus concluded between the two countries, and Sir Richard returned to England with a somewhat satisfied expression.

and.

As soon as I returned from solving the steel problem, I had a private meeting with the Secretary of the Navy, John Long, as a naval advisor.

I couldn’t hold back my laughter when I heard the full story of all this.

“ね. This is the second Treaty of Tordesias.”

The age of naval warfare in the past.

It was almost identical to the Treaty of Tordesillas, in which Spain and Portugal divided the Earth’s oceans in half. In fact, it was the result of a combination of the overwhelming naval power of the British Empire and the overwhelming capital power of the US Navy.

Navy Secretary John Long laughed.

“This is the first time in my life that I have negotiated on an equal footing with the 1st Naval Officer of the British Empire. How arrogantly they have been oppressing the naval forces of each country. Ugh, I’m fed up.”

He trembled with a look of tiredness. Considering the status of the US Navy, which fell due to the devastating defeat of the American-Spanish War, his feelings were understood a hundred times.

There was something more important than that.

“Didn’t you say anything about the warship construction plan under the Maritime Security Act?”

“Didn’t the Maritime Security Act specify the number of units to be built such as battleships, armored cruisers, and destroyers? They asked me every single question, so I just told them to look at them. I had to write it down in detail to convince the people and the House of Representatives.”

f*ck.

I smiled meaningfully.

“Is that over?”

“…that was the end of it. But why are you smiling so cruelly?”

“no.”

Dreadnought.

A battleship that even the Minister of the Navy does not know yet.

Later, War Minister Roosevelt said he would come back, but it seems that hasn’t happened yet.

“It’s good that this is over.”

“right. With this, the U.S. Navy will also properly rise to the ranks of great powers.”

In fact, there was a statistical trap hidden in the contents of the Maritime Security Act. The mere fact that the British Empire was missing from that provision, which he and Roosevelt had tied his head to, was enough.

– A battleship of 12,000 tons or more.

It is an item written in the provisions of the Maritime Security Act.

And the British Empire accepted it as a battleship.

I will soon shed tears of blood.

‘haha.’

Displacement of over 12,000 tons.

This range includes most battleships. To those unfamiliar with the dreadnought class, it may seem like a simple battleship.

However, if the British Empire had known of the existence of the Dreadnought class, it would never have happened. I would have never allowed this crazy provision.

Why?

Dreadnoughts were monsters that could displace 17,000 tons and soar up to 30,000 tons.

12000 tons.

15000 tons.

30000 tons.

more than that.

They were all the same ‘battleships with a displacement of 12,000 tons or more’.

This is the scope trap.

And by the time they realized this, the British Empire would have been late.

“Good for you.”

“…?”

I smiled brightly as I looked at the bewildered naval minister.

In this way, the national interest of the United States was defended.

and. I just ride comfortably on the soaring United States.

Absolutely asymmetrical power.

The world will be astonished by the dreadnought that will destroy Spain.

‘I’m looking forward to it.’

I leisurely crossed my legs.

***

Japanese Empire.

First Bank (Daichi Kinko).

“Itou. As you said, Korean banknotes have come to the point where they cannot keep up with our national banks of Japan.”

The secret room of the office building.

Former Prime Minister Hirobumi Ito and First Bank President Shibusa Eichi were having a private conversation. These two were the elders of Japan’s modernization from the early days of the Meiji Restoration.

palak-

Ito passed the file folder.

With a sharp gaze, he put the numbers on the file folder in his head.

“The deposit amount of Jeil Bank last year was 2,252,650 won. The deposit amount of the 18th National Bank is 164,000 won and the deposit amount of the 58th National Bank is 85,544 won.”

“The amount of deposits of the National Bank of Japan that entered Korea, including Woori First Bank.”

“…Isn’t it obvious that Joseon’s revenue was 8 million won?”

Ito looked at Shibusawa, the bank president, with glaring eyes.

The president of the bank, Shibusawa, nodded with satisfaction.

“A total of $250,000. A quarter of Joseon revenue is deposited in our Japanese bank.”

“her. After all, you are a talented person specialized in finance.”

“Don’t paint your face too hard. Aren’t these all incomes from the interests you received ‘concessions’ from Joseon?”

customs duty.

First Bank held the customs rights of Joseon. All goods entering and departing from Korea were deposited and managed by First Bank, so it was not surprising that they had 1/4 of Joseon’s revenue.

Hirobumi Ito shaved his beard.

“Shibusawa. How much longer do you think it will take to bring all of Joseon’s economic power?”

“My estimate is that everything will be completed in about five to ten years. If we can even print the Korean currency, it will be even faster.”

“Huh, the fact that the yen has not yet been converted into gold is my concern these days. I want to catch up with Western currencies quickly.”

“Oh, if that’s the case, there is a way.”

Shibusawa a few days ago. I pulled out the letter that was handed to the director of First Bank.

It was a letter from an American company called a Philippine company in Southeast Asia.

“What is that letter?”

“Filipino company. A letter from an American company that has recently been gaining influence in trade transactions in East Asia and Southeast Asia. They say their mother is the Great Nordan Railroad in the United States.”

“What? The Great Nordan Railroad is the transcontinental railroad of the United States. I know that Mitsubishi Corporation and Mitsubishi Line have connections with large Japanese trading companies, but why is that company?”

Ito seemed to be interested, and pulled his upper body forward.

The cotton transported by the Great Northern Railroad was a company he knew well as it was produced as cotton fabric in an industrial complex in Japan and sold to Korea.

“They have been proposing a currency swap.”

“Currency swap? Exchange currency?”

“I think the Yankees have a knack for finance.”

Shibusawa’s explanation was as follows:

A Philippine company that has a lot of pesos and not enough yen.

A Japanese trading company with a lot of yen but not enough pesos.

Since each has a lot of what each other lacks, the two exchange pesos and yen.

Then, the two companies can trade more actively and their cash flow improves.

“But what about this? Let me explain in more detail.”

“You still don’t know? If the swap is successful, monetary stability will increase and its value as a trade currency will also increase.”

“….!!!”

“Yeah, it means that the international status of the Japanese yen will increase.”

When the two currencies are successfully swapped, transactions between the two countries become more active. Because there is no money stagnant.

Fund transfusions from trading companies including Mitsubishi Corporation are also increasing.

Since the yen was converted to gold two years ago, it will rise even more with wings.

“In other words, if the yen swap is actively done internationally, will it be possible to catch up with the currencies of great powers?”

“If it goes well, it will happen, but there are more important uses than that.”

Shibusawa raised an eyebrow.

“The merger between the Korean economy and the Japanese economy can be accelerated. In addition, is trade more active with the currency issued by Woori First Bank? Can the currency of Joseon be able to function?”

“…!!!”

Itou patted his knee.

“That’s excellent!!”

“But currency swaps are still an untested system. So I think it would be a good idea to experiment with other currencies instead of Japanese yen.”

“Other currencies?”

Isn’t there one decent fiat currency in Europe?

In addition, the currency of Spain, which achieved a great victory over the United States.

It is also a trade currency that is still used in Southeast Asia and South America.

“One peso.”

You need pesos.

That too a lot.

***

“It says…”

Japanese Empire.

A coffee shop near First Bank.

Hororok-

Samuel Sachs, who smuggled into the country, drank tea while facing the director of First Bank. Sachs, dressed in a black kimono, fell on his knees in deep thought.

“Well. You said that you responded positively to a currency swap with a Philippine company. At the same time, we are also looking for pesos volumes to use for currency swaps in trade.”

“Yes.”

“It’s a good flow.”

The director of First Bank in front of me bought it with money.

Instead, he detailed information about the Philippine company and the benefits of currency swaps he had heard from the Detroit director, and worked his way to Shibusawa.

Jewish banks, including Goldman Sachs, create a subsidiary A in the name of an offshore company. The peso transaction will be done through this company A.

Since there is no disclosure obligation, there will be no way for them to know the name of Goldman Sachs.

‘The Great Northern Railroad has a justification for swapping pesos and yen simply for trade. And when the Japanese banks that need pesos are in a hurry to save the peso cargo volume, our subsidiary A reaches out to us.’

The words of the Detroit director who said that if they staked Joseon as bait, they would snatch it up at once. Because of that, he predicted that Japanese banks would experiment with the peso to see if the currency swap system really worked.

Since he hinted at the Philippines, he must have immediately thought of the peso.

‘It must have been sweet for Japan. I’m sure you’ll snatch it all at once.’

The Japanese Empire was possessed by the bait of Joseon’s economic power.

The foresight of the Detroit director was exactly right.

widely-

Samuel Sachs put down his teacup.

“First of all, we should sell the peso.”

There are a total of 153 national banks in Japan.

Some of them merged and went bankrupt, but that doesn’t matter. The time has come to work on the divided banks, from Bank 1 to Bank 153.

‘First, we dispose of all the pesos held by Goldman Sachs.’

Short selling of the peso.

Currency swap of the peso.