.

It is not difficult to find. At this time, the ICAC already has a very professional scheming of corrupt officials. It describes it as "a huge octopus with tentacles everywhere. It greedily captures the unfortunate person and then smashes this person!"

Faced with such bad comments, the Director of the Independent Commission Against Corruption once answered:

"There is no way, who has made so many corrupt animals in this world, so sometimes, I really hope to grow more tentacles and remove these bastards!"

Soon, the ICAC found a prey, a bank director. Although he was the least valued director of the logistics department, he could already know a lot of inside information. Soon, these inside stories were exposed:

"The president accepted large amounts of unknown donations, and directly donated them to a foundation to avoid possible inspections."

"It is impossible to find out who donated the money, but it has something to do with the amount of silver coins exported by our bank. For about one yuan export, I will have an extra cent on my account."

Then, the Independent Commission Against Corruption used this tainted witness to quickly control the bank's Finance Director and obtained more real data. These financial experts had no room for resistance against the Independent Expert and easily revealed the inside story.

"We exported a total of 235 silver dollars this year and received a subsidy of 1.41 million US dollars from Citibank. Then we divided the money into five cents, three cents, and two were deposited in long overseas accounts."

This is true, but unfortunately, although the Independent Commission Against Corruption is very fast, this speed is still much slower than the ever-changing financial market. In fact, as a financial war, the defense of enemies who have been carefully prepared for many years usually suffer heavy losses. What determines the outcome here is the depth of understanding of the market, not determined by ordinary states or financial resources.

During this period, the amount of Chinese silver flowing overseas through public and smuggling channels was astonishing. From 1910 to mid-1912, = 7.11 million ounces. Add to the 21,820 ounces smuggled exports in recent years, the two totaled 645.31 million ounces, and its main destination was in the United States. Statistics show that from 1910 to 1911, the United States purchased silver overseas from the United States, and two-thirds of the silver imported from the United Kingdom came from China (China headquarters or through Hong Kong).

1911 was the 536 million net silver imports in US history, the highest year of net silver outflows in Chinese history (21.854 ounces). Leverage was caused by the US Silver Acquisition Act in 1910 | After that, the total number of silver outflows in China (64,500 ounces) accounted for China's silver circulation at that time (1280 million ounces: + the unbalanced Far East situation became more complicated.

Since China has used silver as a means of exchange for thousands of years, until November 1911, China was still a silver-based country. The decrease in silver immediately had a significant impact from three aspects: one was the decline in prices due to the rise in silver prices; the second was the depletion of silver, which led to credit tightening, which led to the rise in interest rates; the third was the rise in the foreign exchange rate of China's currency due to the appreciation of the currency (the rising silver price). It suffocated China's exports.

The result was that China suddenly faced a deflation crisis - industrial and commercial adjustments, financial decline, import and export decline, and rural bankruptcy. The national wholesale price index fell by 6.5% in 1910, and fell by 3% in 1911...;|, market interest rate was 5% in July 1910, and reached 12% by September.

The rise in silver prices has boosted the foreign exchange value of China's currency, thus further weakening the competitiveness of China's exports in the world market. In 1910, the export volume of raw silk, a major export commodity in China, was only 21 in 1930.=

This year, Shanghai's export price index plummeted to 71.98 years as the base). With the impact of falling prices and rising interest rates in the year, 1,000 industries and 20 banks in Shanghai went bankrupt;

China's Chinese yarn mills (the largest industry in China at that time, with the largest number of employees), calculated by yarn, shutdowns reached 60%. Due to the reduction of demand for raw materials by factories and the reduction of exports, coupled with floods and droughts, agriculture is about to go bankrupt, accounting for 80% of China's population and the agricultural output value of GDP, down from 24.4 billion yuan in 1907 to 1910 (a year when silver began to flow out in large quantities.

above.

In the past, some silver-loving members in the US parliament advocated raising the silver price in order to "save China". One of the lawmakers even painted a terrible picture of the decline in silver prices in tears. He said that the "terrible scenes of China and India are indescribable. Their only currency silver immediately depreciated, prompting trade to pause, and causing hunger and millions of deaths throughout the province."

There was also a very influential inspirator at the time, Father Kang Keling, who was influential at the time, constantly advocated the price increase of silver through the "Radio Alliance" that he controlled, which had obediences of 10 million, and shouted that "the United States should restore the purchasing power of the East." In 19,104, he hoarded more than 500,000 ounces of silver in the name of his secretary. (Later, after investigation by the Morgan Consortium, Morgan found that Miss Koh Keling's "Radio Alliance" led by Father Kang Keling was actually a silver speculator. The Ministry of Finance listed her on the list of silver speculators in the newspaper).

In order to "save China" and to save the United States from economic panic, the gentlemen of the Silver Group always link the price of silver, purchasing power, and sales of American goods as an unproportionate relationship, believing that as long as the silver price rises, the purchasing power of Chinese people will increase and American goods will have better sales in China.

This is indeed a very inspiring theory for the sake of winning votes or other purposes. However, the facts are much more complicated than they thought, and their "theory" often goes against the facts. From 1898 to 1907, it fell by 58.

But China is a country with a silver standard. The decline in silver prices essentially plays a role in depreciation of currencies, which is conducive to exports and restricts imports. At the same time, it attracted a large number of overseas Chinese remittances and silver imports, increased China's monetary reserves, and formed a slight inflationary state. In 2019, the world economic panic was at the bottom, and the world price index was only 73 of 1898. However, during the same period, China's wholesale price index rose by 53% in various places respectively (Guangdong (North China), 26.: (Shanghai).

Before 1910, China's import index basically: the import machinery required for model construction, even if it is considered to be a miracle. Since the decline in Chinese silver foreign exchange was lower than the level of world prices, the decline in silver prices formed a positive factor in protecting China's economy at that time, allowing it to safely survive the weak early stages of capitalism.

The facts prove that the decline in silver prices did not show the horror scenes exaggerated by silver tycoons. On the contrary, the US silver acquisition law in 1910 prompted the buying power "not "increased ten times", while the large outflow of silver caused China to fall deeply into an economic crisis. If foreign trade is based on 1909 (125.6 million customs twelve), it will drop to 79.11 and then fall to 76.

Imports fell even more, with a drop of 76.: and 68.: in the past two years (these figures do not include the Northeast region occupied by China). The US export to China did not follow the "theory" of silver tycoons. In 1907, silver prices fell +:.00 US dollars, but in 1911, when silver prices soared, the US exported US$5,800 to China (declined 8).

It is worth noting that since China is a country that implements a gold standard and is not affected by the rise in silver prices, the US output to the daily volume increased by 30% during the same period (from US$156 million to US$20,300). China's economic difficulties caused by the rise in silver prices have made it difficult for American companies in China to escape the misfortune. In 1911, three American companies in China: US Oriental Bank, US Oriental Finance Company and Asian real estate companies announced their closure.

524 Oriental Bank president Rifen said: "In short, this situation can only be attributed to the US's silver purchase plan. This measure plundered China's silver, and there was no silver to trade." By December 1910, American economist, Silver:}. Chudi realized that the US's trade with China was seriously affected by the silver policy.
Chapter completed!