African Entrepreneurship Record

Chapter 433: Chapter 110: As Stable as Mount Tai

”Can’t see any hope anymore!”

Klein let out a painful howl and then collapsed in the trading hall, surrounded by staff who looked at him with sympathy. However, since everyone’s days were not going well, no one stepped forward to offer comforting words. This kind of thing had become commonplace.

Klein issued a soul-searching question: ”Who can save us now?”

The answer was nobody. The stock market is inherently high-risk gambling, and naturally, investors must bear the risk themselves. From the day the stock exchange was established, responsibility has been completely offloaded, much like the health warnings on tobacco packaging.

Of course, a stock market collapse would also have significant adverse effects on the economy of Austria-Hungary. Active government intervention could still reduce some losses.

If it were Germany, a country with a strong government capacity, it might be possible. But for Austria-Hungary, it is hopeless. In terms of economic policy, Austria-Hungary’s fiscal condition has always been unstable, and its economy has been characterized by imbalances and protectionist tendencies, especially between Austria and Hungary.

Now the real capitalists in Austria are trying to shift the crisis elsewhere, with Hungary next door being one of their targets. Similarly, the Hungarian aristocracy is eager to sell off their grain quickly. You want to dump industrial goods on me, but I also want to dump agricultural products on you! Both sides are raising tariffs.

As for the Central Government, it can only watch helplessly. The finances are usually difficult, let alone having funds for market rescue. Now even the banks are barely holding on, with nowhere to borrow money from.

Meanwhile, at the Heixinggen Bank Vienna branch.

”President Nagins, during this economic crisis, your bank is the only one capable of providing extra funds. You can’t just stand by and watch us die!”

”Mr. Cyrus, I’m really sorry. The entire banking industry in Vienna is on edge, and we’re just barely keeping operations going while ensuring the safety of depositors’ accounts. So, at this time, we are also powerless.”

”President Nagins, we’ve known each other for a long time. My company just has a small cash flow problem. It’s not much, just 350,000 gulden to get through the crisis.”

”350,000 gulden is no small amount and not something I can mobilize at will, Mr. Cyrus. If you’ll take my advice, sell all your factories at a low price quickly! Your business is highly tied to the railway industry. According to the current market conditions, keeping them even one more day results in significant losses. You shouldn’t even think about orders; your clients probably can’t even pay the penalty for breach of contract.”

”Sigh, actually, I want to sell, but right now, the prices are too low, and no one wants to take over.”

”Then there’s no way around it. Declaring bankruptcy is better than stubbornly holding on. If employees don’t get paid, there will be trouble.”

Cyrus, also a smart man, could see the Heixinggen Bank’s well-functioning status even in the turbulent times.

In fact, this wasn’t difficult to notice. With some investigation, one could detect early signs. Other banks were laying off staff or going bankrupt. Only Heixinggen Bank was sitting back and watching the situation unfold.

The employees of Heixinggen Bank did not show any distress, standing out among their peers, proving Heixinggen Bank’s confidence, which could only be supported by ample funds and a healthy state of operation.

Of course, Heixinggen Bank could remain carefree mainly due to previous efforts. If the time were reversed a few months, it would be a different story.

At that time, Heixinggen Bank took a careful review of its existing issues and timely cleared any potential risks. After all, Heixinggen Bank was a newcomer among European banks, with many areas of inexperience.

Heixinggen Bank restructured itself, streamlined staff and institutions, lowered deposit interest rates, increased thresholds for loan applications, and sold off non-performing assets, causing a stir back then.

Many clients turned to other banks and financial institutions because of it, but when the economic crisis erupted, they completely regretted their decisions, and Cyrus was among them.

Therefore, Nagins remained indifferent to Cyrus’s request. Of course, even without this incident, Nagins would not prioritize any past relationships.

”All right, Mr. Cyrus, it’s better to rely on yourself than others. You must fend for yourself now!”

Cyrus still wanted to make an effort: ”...”

However, Nagins directly instructed his assistant, ”Andy, see the guest out.”

After Cyrus was sent away, Andy said, ”President, due to the crisis, our bank’s recent business doesn’t seem promising, and it’s unclear how long this crisis will last.”

Nagins replied, ”Haha, don’t worry, it’s just a market winter. Do people stop going out just because it snows in winter? The economy will operate as usual, just not with the previous fervor. We just need to do our job well. Moreover, during this crisis, we have built enough credit. When clients choose who to trust next, it will be obvious. We might even do better because our competitors have been eliminated.”

”By the way, President, we have just received a telegram from headquarters asking all branches to continue lowering the deposit rates by 0.12%.”

Nagins leisurely sipped his coffee and said, ”Announce it tomorrow morning, then! With other banks and companies going bankrupt now, there’s indeed no need to maintain such high interest rates.”

In fact, since the last adjustment, Heixinggen Bank’s deposit rates were already at quite a low level. Reducing it by another 1% means depositors could almost ignore the interest gains.

After all, with client losses, corporate bankruptcies, worker unemployment—a series of chain reactions—the banking industry is not very profitable now, even incurring losses. Reducing benefits for depositors is a normal operation, and while the interest has decreased, it’s much better than losing everything, giving a small reason to be happy.

At dusk,

Wiggins left work and, just after exiting the bank’s entrance, saw employees of his old rival, the Cruise Bank, arguing dejectedly with depositors.

Wiggins approached a bit to listen closely to what people were saying:

”Everyone, please don’t rush. It’s already closing time, and we need to close up!”

”Damn it, we haven’t withdrawn our money, and you are thinking about closing? Are you taking us for fools?”

”Exactly. If you don’t cash out our money today, we won’t let you leave.”

”I heard the railway company went bankrupt, causing you to be unable to collect dues, that your cash flow has already broken, and you’re trying to drag us down to bankruptcy with you?”

”Give us back our deposits!”

”Refund!”

...

Watching this bustling scene, Nagins clicked his tongue and said, ”Truly a volatile season!”

Heixinggen Bank was confidently thriving, but due to the economic winter, people were less inclined to deposit money, and Heixinggen Bank was also affected as many depositors withdrew their funds. However, the streamlined Heixinggen Bank was largely unaffected. A few months ago, it already experienced a similar situation when the economy was still thriving, supported by many opportunists. They profited greatly then. Now, Heixinggen Bank’s depositors, dragged by the overall industry, have reduced, but this situation is only temporary. In time, everyone will realize who the true winners are during this crisis.