.

The Xiong "Economic Weekly" once pointed out that these propaganda are just helping people, hug them together and create noise, and can fight for government subsidies for some unimportant speculators." But the problem is not only that, but the problem is that their economic "theory" (called "purchasing mechanics theory") involves "save" China on the other side of the Pacific Ocean of the United States, and reflects it over, playing a magical role in "save" the United States from the economic recession.

The actual purpose is to completely eliminate China's economic blood, then kill this economic giant, and taste the victorious wine on his body. This sinister trick is naturally not afraid to get it on the table, so in the next few years, the US government suddenly became hesitant and had no control.

This is completely different from the performance of the Spanish-American War in 1898: it blocked almost everyone. Until a hundred years later, the Chinese still believed that the US government was friendly, but they did not realize the conspiracy of the Silver Group.

Things are far from as beautiful as they imagined. The economic "theory" of silver tycoons was not accepted by economists from the beginning. Economists believe that a country's external purchasing power mainly depends on domestic production capacity and export sales capacity, rather than on its monetary value.

Just when the Silver Group used their theory to put pressure on President Roosevelt, 85% of the members of the American Economic Association voted against raising the silver price; the National Committee of Economists also made a written proposal, proposing to stop the acquisition of silver, which they believed that raising the silver price was not good for both domestic industry and foreign trade. At this time, Americans did not realize that this was a huge benefit to the US economy, so a few years later, when silver profits rolled in, American economists began to absent and avoid talking about the harm of the silver policy to China.

Some famous economists such as Alter and Bright pointed out that the "purchasing mechanics theory" promoted by the Silver Group is wrong in theory and practice. In his letter to the US Congress, German economist Alter pointed out that artificially raising the silver price will only lead to China's economic austerity.

If the increase in the world's silver price is not accompanied by the increase in the prices of other commodities, it will affect China's balance of payments, forcing China to only export a large amount of silver to make up for the difference. (Later facts proved that Elter's foreseeable misfortune was worse than he thought).

Silver tycoons turn a blind eye to the criticism of these economists, as one historian said: if critics have reasonable and sound arguments, then silver tycoons have political power and the conditions for conducting monetary experiments. In other words, silver tycoons are more willing to see this situation, which means that silver profits have a sharp rise.

The presidential election in 1908 was a "power" and general election. Both parties wanted to please the silver group. They had promises to save the silver crisis in their campaign programs. Roosevelt was particularly attentive to the silver tycoons. In order to win the votes of this group, he promised to "do something for silver" during the election. After being elected president, he was destined to be the power of this group in parliament. He did not dare to offend them.

These seem to be the place where they are established. The US government made some concessions because it was afraid of certain interest groups. However, in 1898, the US government firmly chose to reduce grain subsidies in the face of the strong interest farmers' groups, and did not take into account the power of the stronger agricultural groups. However, after 10, it was doubtful that it would make concessions to the weak silver groups in many places. Zhao Gang once said an intriguing sentence:

"If your neighbor brought a vicious dog, he accidentally let the dog out and shook himself hard, then who was the person who was the one who was the one who was early? Is that dog or the owner of the dog!"

Therefore, President Roosevelt, who was always tough, retreated because he was particularly "feared" that the boycott of the Silver Sect members in the Senate would cause his series of legislative plans to abort frequently. Under the president's suggestion, the Silver Sect members certainly knew how to use their political advantages.

The first showdown was Senator Bidmen. When he repeatedly forced Roosevelt to increase subsidies for silver production but failed to get what he wanted, he threatened not to take legislative actions against the new business law, forcing Roosevelt to agree to increase subsidies for silver production. Roosevelt also exchanged this for Bidmen's support for commercial neutrality legislation (Bidemen was the chairman of the Senate's very authoritative business committee at the time).

What is funny is that at that time, the ruling American party had an absolute minority in the Senate. Even if Bidmen was added, the business law was still not passed, and the votes were too different. Even if Bidmen's vote was added, it would be useless. Moreover, the person who appointed Bidmen as the chairman of the Business Committee was President Roosevelt.

Could it be that Roosevelt tried his best to help

Is it a disobedient person? In the next few decades, Bidmen's performance was clearly a dog of Roosevelt. However, in order to avoid completely angering China, this one-man show will continue. The US president and his puppet still pretended to be ignorant and tried to fool other people.

So in order to please Bidmen, Roosevelt appointed him as a representative of the World Economic Conference held in London in 19097. The US representative, who spoke endlessly for his beloved silver at the London Conference, made the other representatives drowsy. During the conference, he once angrily pursued an advisor to the American delegation whom he thought was not enthusiastic enough to silver in the corridor of the Clarkian Hotel where he lived.

The trick of wielding a long knife was certainly not repeated in the United States, but in the following years, he did continue to wield the "silver stick" in the corridor of Congress, successfully "forced" President Roosevelt and the Morgan Consortium of Treasury Secretary General to continuously raise the silver price. Although President Roosevelt firmly denied the compulsory silver legislation, he finally compromised with the silver tycoons from a political perspective. The result was the "1910 Silver Acquisition Act" promulgated on June 19, 1910.

There are good reasons to prove that when the U.S. administration decided to take this step, it fully understood the serious consequences it might have internationally. However, domestic political factors are given priority. Although there are many statements, it is generally accepted that "Roosevelt's surrender to the Silver Group finally led the United States to adopt a policy that seriously damages China's economy and thus seriously damages the international balance. The consequences are extremely serious."

According to the Silver Purchase Act, the Minister of Finance either increased the amount of silver acquired to an equivalent quarter of the monetary reserve; or increased the world silver price to the level of one dollar and nine cents per ounce. As the amount of gold reserves is increasing, the reserves that constitute one quarter of the silver also increased accordingly. From the passage of the Silver Purchase Act (June 19) to the end of 1910, due to the increase in gold reserves, the amount of silver reserves also increased by 104 (from 120 ounces to 12500 ounces), and there is a trend of increasing year by year.

This means that the pressure on the US government to purchase silver is increasing, and the world's silver price is destined to continue to rise. Then President Roosevelt issued a state-owned silver order based on the seventh paragraph of the silver purchase law, setting the domestic silver price of US at 50 cents per ounce. At the same time, the United States purchased a large amount of silver overseas, so the world's silver price rose sharply like a wild horse that broke the reins.

Silver speculators in the international financial market are like competing with the US Treasury Department to see who is more capable of raising the silver price. By 1911, the silver price per ounce in New York was equivalent to 2 in 1908. This violent fluctuation in the price of silver was mainly due to artificial political factors in the United States. Two things became the key to things:

First, a behavior that occurs only for certain domestic interest groups often affects, restricts, and sometimes even changes the US foreign policy. Historical records show that in order to maintain or raise the silver price, the tycoons of the silver group have long hands, great pressure, and a wide range of interventions.

With President Roosevelt's consent to send Rogers to investigate the financial situation in the Far East, it could be invalid due to the opposition of the Silver Group; the Chinese government's suggestion that the sending representatives to the United States for talks to resolve the silver crisis was also firmly opposed by Bidmen, so President Roosevelt had to give up.

These visits and visits would have objectively communicated, which may help the United States adjust its silver policy and even its foreign policy. However, the Silver Group estimated that these activities may prevent the rise of silver prices and try every means to make them fruitless or unfulfilled. Although Bidemen participated in the signing of the London Silver Agreement on behalf of the United States, it was Bidemen who prompted the sharp rise in silver prices, which directly violated the spirit of the International Silver Agreement.

Second, as the direct victim of the silver policy, China's response is somewhat slow. Although some people foresee the harm to China, most banks still do not take precautions. Large-scale silver calls can be seen everywhere among banks. Although this loose financial environment will help to develop the economy quickly, the risks it contains are also huge.

Not only that, but more serious is that since the central government did not force the establishment of a central bank, the financial system is actually an independent kingdom and is not controlled by the central government. Under the nature of merchants chasing profits, the interests of the financial system have nothing to do with any system in China, which is also a huge hidden danger.

In the subsequent silver crisis, these hidden dangers finally broke out, and China began to pay the price for its immatureness!
Chapter completed!