The stock market crash introduced in this article occurred in 1910. At that time, there was a special entry called rubber stocks. The demand for rubber was indeed very strong at that time, but speculation amplified the immature financial risks at that time.

The first stock issued by the Chinese actually appeared in 1872, and the founder Li Hongzhang is the famous Li Hongzhang.

The stock market crash introduced in this article occurred in 1910. At that time, there was a special entry called rubber stocks. The demand for rubber was indeed very strong at that time, but speculation amplified the immature financial risks at that time. In the end, the pressure from the shopping mall was transmitted to the officialdom again, causing very serious consequences, namely, the death of the Qing Dynasty .

The ceiling of speculation: Maipian

On October 1, Ford Motor Company launched the Model T car, producing more than 15 million Model T cars between 1908 and 1927. Think about it, the demand for rubber surged due to the large-scale production of Ford Automobile . In addition, there was no so-called artificial synthetic rubber technology at that time, and it relied on natural planting and then transporting these overseas rubbers over, so the rubber company is actually a good business!

909, the price of rubber per pound in the London market was about 2 to 3 shillings. By 1910, the price of rubber per pound had risen above 12 shillings, which was equivalent to five or six times more than a year. And this is just a change in the price of commodity , not the change in the stock price of related companies (lithium battery stocks are soaring, the familiar taste).

There are two problems if you want to buy rubber company stocks:

First of all, China did not produce rubber at that time. The rubber originated in South America and later it was also planted in Southeast Asia. However, in the Qing Dynasty, Chinese people were still very unfamiliar with this thing, and almost all rubber companies were overseas companies. Just like when you are buying a US stock that you are not familiar with, you are always a little upset in your heart.

Secondly, China did not have the so-called mature stock trading system and trading venues at that time. Here is market information and trading venue issues.

talk about market information first. If you want to buy stocks at that time, there was no public information to refer to.

Now listed companies have prospectus, quarterly reports, annual reports, and various announcements of shareholders' meetings. At that time, at most, they would send you a small advertisement in the newspaper, which was already very impressive. Everyone knows that the rubber company is profitable, but they don’t know how to buy it. This has created the opportunity for to speculate for many people.

At that time, there was a small foreign company in Shanghai called Maibian Foreign Company. The boss Maibian was a British man. The company said that it was called a foreign company, which was actually a very small trading company. The business has not improved much, and Mai Bian wanted to make money like this. In 1908, he registered a Langezhi company with the Dutch East India government, and then traded Langezhi's stocks in the Shanghai market.

Chinese were very cautious about this kind of thing that they had never seen before. Stocks of these rubber companies were not very popular at first. The only way to advertise and create an atmosphere in is to be inspired at this time. At that time, he had an idea, that he went to Shanghai to buy a lot of pages to post soft articles to promote the glorious prospects of the rubber industry. (梦想!)

But now we have clear regulations on these prospectuses. You cannot clearly recommend it, nor can you make paid reports.

Of course, in addition to advertising, he also has another very powerful talent, which is to create atmosphere.Mai Bian first went to the bank to borrow some money, and then announced that Langezhi Company held a shareholders' meeting. The shareholders' meeting deceived the shareholders and said that there was good news in our place of origin and that the output was about to rise; then the other side was to give these shareholders dividends , and then the stock with a face value of 100 taels of silver per share, which can be dividends of 12.52, and it also pays dividends every three months (the yield rate is 12.52%, which is equivalent to an annualized yield of about 50%. Nowadays, the usury is not so high!). Interest rates are already a bit illegal, but in short, they are very tempting.

Afterwards, they cooperated with foreign banks and announced that investors can use Langezhi's stocks as collateral. Taking loans in the bank makes Langezhi's stocks very valuable!

is equivalent to the fact that he used some real money and silver dividends to make this matter very popular.

On the other hand, foreign banks like this are endorsed by . This also enhances everyone's sense of trust, and then the atmosphere is hyped up! After

, several rubber companies opened. Foreign companies also learned the Langezhi gameplay and also paid dividends from shareholders, and the dividend intensity was even greater than Langezhi.

Then, plus the rubber price in the international market did rise at that time. By around 1909, the enthusiasm for rubber stocks in the Shanghai market was ignited.

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html In the early 120th century, ordinary people mainly bought stocks to foreign companies. Just like when you go to a store to buy things, you pay the money in one hand, and then central bank gives you the stock warrants in one hand. Then foreign banks will put your stock buying funds in a special bank account, and many of these banks are also foreign banks. exchange money also uses the stock to exchange the corresponding bank for money. At this time, the stock is like a check.

So in addition to the hype method of advertising dividends mentioned earlier, can reassure ordinary Chinese people. Another point is that many of the rubber stock transactions involved are famous big banks and big banks, and their reputation can also be used to make some guaranteed . Foreigners are very skilled. They find that the more Chinese people believe in this, the more I want to use this.

There is a company called Xiangmao Foreign Company that has done this kind of thing. Xiangmao Foreign Company was in charge of the stock of an eraser company. They asked all subscribers to go to , HSBC Bank, to pay one day before they could get the stock paper back. Results On that day, in addition to the shareholder HSBC Bank, there were also a large group of tutors invited by Xiangmao Foreign Bank. They said they were some hooligans. Then as soon as the door opened, everyone squeezed in to pay the money, and even started fighting directly at the door. The scene was very chaotic, and HSBC closed directly and said that we were suspended today ( looking for tutors to queue up, isn't it a very familiar recipe? ).

Then Xiangmao finished creating the situation and said hypocritically, because there are too many people subscribe, I decided to shrink it to you in proportion. For example, if you wanted to buy 100 shares before, I can only give you 10 shares. I can refund you this extra money. Pure hunger marketing (This is really nothing new under the sun) .

But the investors at that time were indeed quite crazy. I would buy it no matter what. So by the spring of 1910, the entire Shanghai market basically stopped talking about nothing, only rubber stocks. (For a while, I didn’t talk about anything, just talk about house ).

These not only are the price itself very expensive, but the content is also nothing, and you have to make an appointment before signing the version. Then in order to buy real stocks, you can imagine that ordinary investors basically have to empty your pockets, and you also have to find various ways to buy them.

The atmosphere has exploded!

In addition, these banks directly accept that you use this stock to mortgage and loan, and then you can buy rubber stocks with the one you bring. is very interesting, which is equivalent to constantly adding to yourself leverage . If the oak stock crashes, the bank will face a double kill at this time. First, the money released cannot be collected, and second, the mortgaged stocks are not valuable. (Is it a familiar taste? How similar to the current housing market).

Langezhi's stock, in 1908, the trading price of Langezhi was 60 taels of silver per share, which was significantly lower than its face value. By May 1909, the stock was 1162 per share, and was equivalent to an increase of 18 times. Then in May 1910, another year later, he continued to find every 1650 taels. The price fluctuation had far exceeded the price fluctuation of rubber itself .

Another data is the change in the trading volume of the market. According to a statistics from Japanese scholar Kikuchi Takakura, he believes that in the past few years when rubber stocks were most popular, the total funds invested by Chinese merchants in this type of stock were about 40 million taels to 44 million taels of silver, and at that time, the Qing government's annual fiscal revenue of was 100 million taels of silver. More than 40% of

GDP! Think about what a terrible number!

The stock price and capital volume are very dangerous, because many people buy them with leverage. If the stock does not rise, it means a decline, because many people have to pay interest on leveraged funds, which will cause serious problems later.

crazy money dealer

actually has another more important buyer money dealer and bank (now called "institutions"). It is impossible for retail investors to reach half of the annual fiscal revenue level in . The opportunity for stocks is indeed too tempting, and rich institutional investors can't stand it.

money bank is a private lending institution with Chinese background. Many of them are small-scale. Of course, there are some big money bank with strong chain strength in the country. For banks, they are mainly foreign banks, which are relatively standardized and have more money.

How to buy stocks in the bank?

One method is to lend money to shareholders mentioned above. Some shareholders are credit loans, while some are money banks directly say that they are rubber stocks or other physical mortgage loans.

Another way is that the money bank buys stocks directly after the situation, because some money bank bosses are also compradors in the bank or senior executives in the bank, and their positions are very convenient.

There is a man named Chen Yiqing who has several large-scale money shops in his hands, the largest of which is called Zhengyuan Money shop, and there are two more called Qianyu and Zhaokang, and it is also the comprador of Maohe Central Bank, Xinqichang Foreign Bank and Lihua Central Bank. Chen Yiqing, who has so many positions, feels that it is unreasonable to make some money without relying on his left hand to make a little money with his right hand.

money dealer and bank deposit a large part of the money purchased by the depositors before. There is another type that Chinese-funded money bank borrowed from foreign banks.

last one is more exciting. The money bank will write a lot of short checks to buy stocks (it is simply using air to trade stocks). As long as you don’t use this silver note to cash out, there is actually no problem.

Summary: Banks use savings to trade stocks, borrowed money to trade stocks, and use short checks to trade stocks.I added three more leverages to myself. Adding the two levers in front, there are now five levers. If something happens to the "Five Daogang Comrades" immediately kills five times, which is enough to kill five times! The high risk of

is because the entire Qing Dynasty's financial industry system was very imperfect at that time. Basically, there is no system, and this is not a problem of loopholes. There are few places that are not airtight.

You can imagine that this matter can easily develop in the worst direction.

htm6 honeymoon period is over, and you have to pay it back when you come out.

By the summer of 1910, this round of madness would have to pay a heavy price.

Rubber was the United States. At the end of June 1910, it suddenly announced a monetary tightening policy, and also restricted the consumption of rubber. Therefore, the rubber prices in the international market and the stocks of rubber companies fell in response. As soon as he heard that the market was not good, Langezhi, the editor of the editor, quickly packed up the fine and soft, and fled back to the UK with his own conspiracy.

In addition, because the rubber plantation is far away in Nanyang, there is a serious problem of false propaganda. For example, a newspaper in Nanyang at that time called the Straits Times. It is still conducting investigations in a very powerful newspaper. They found that some rubber companies would insert branches into the soil to pretend to be saplings in order to deal with the inspection. Some companies said that my land was actually planted with trees, but when you go to the scene, you may find that only half of it was planted. One of the more common problems of is that the rubber tree in the plantation is insufficient in the years, insufficient rubber production, etc. (where is the scallops in the Qing Dynasty "Zhanzidao").

market is bad. If these problems are disclosed again, the market's confidence will be "Bengbu ".

Especially when institutional investors saw that the bosses of the top companies had run away, one of the most anxious people was Chen Yiqing, the financier who was both Chinese and foreign. At that time, Zhengyuan Money Bank first bought about 3 million to 4 million taels of rubber stocks by itself.

followed by Zhengyuan Money Bank formed an alliance with other small money banks, borrowed a little money from foreign banks, and then issued a lot of bank notes to shareholders to trade stocks, and then many of these bank notes fell back to foreign banks. After the stock market falls, not only will you withdraw a loan from a foreign bank, but you will have to return the money you borrowed to me in advance, but you will also say that your banknotes cannot be cashed in with me. Chen Yiqing, who was killed by

5, was drained from cash flow in an instant.

In addition to the cash flow crisis, there is also a bigger crisis, which is that he used to speculate on rubber stocks at that time. The 2.1 million taels of this money came from the then Chuanhan Railway Company , This money was used to build railway projects. It turned out that it was kept by the Sichuan-An Railway's total revenue and expenditure instruments in Shanghai (similar to the role of CFO). According to regulations, this money cannot be used to speculate on stocks because the risk of stock trading is too high (the pensions of many local governments are not allowed to enter the stock market now).

However, at that time, Shanghai Rubber Stock had a very high investment return rate, and everyone was jealous of it. So he broke the rules and put the money in Chen Yiqing's money shop, and then helped him get it to the market to speculate on rubber stocks. Later, Shi Dianzhang was also brave, so he embezzled another 700,000 taels of project payment and bought Langzhi's stock himself.

is very imaginable. If the price of rubber stocks falls, Shi Dianzhang and Chen Yiqing can meet directly on the rooftop. But who will remember when the stocks rise? ! Even if I think of it, it's a moment.

At this time, Chen Yiqing's money shop was about to go bankrupt. Chen Yiqing was already standing on the edge of the cliff and was about to fall down. The last straw he thought of: foreign banks, he went to discuss with foreign banks that you will not withdraw loans or runs, and secondly, can you borrow some more money to help me stabilize the investors.

I think it’s so beautiful!

For example, HSBC immediately announced that it would stop borrowing from some Shanghai money banks and then recover the previous loans with all efforts. Then, these foreign banks stopped the policy of using rubber stock mortgage loans, which was equivalent to directly overwhelming the stock money dealers in Shanghai. For Chen Yiqing, he originally wanted to let others pull him, but he kicked you down.

The cruelty and ruthlessness in the capital market is completely revealed at this moment. When the disaster comes, everyone is fleeing. When you are on the edge of a cliff, you will always step on you than you.

The United States proposed this policy at the end of June 1910. By July 15, the three banks, Zhengyuan Bank, Qianyu and Zhaokang, were all dragged down by rubber stocks and went bankrupt. Then, a group of small and medium-sized banks with loan-to-borrow relationships with these three banks also went bankrupt.

Chen Yiqing wanted to run away at that time, but was controlled by Cai Naihuang, the Shanghai Daotai at that time. Cai Naihuang's move was very critical, because at that time, the so-called systemic risks had already occurred in the Shanghai money dealer industry. The problem of rubber stocks had affected the other two largest money dealers in the country. , one was called Yuanfengrun, and one was called Yishanyuan (two major banks in the Qing Dynasty) . These two money dealers were crowded with people to withdraw money every day at the entrance of the Shanghai branch code, and the most important thing was that there were still a lot of official silver deposits in the accounts of these two companies, such as the Shanghai customs tariffs and government finance and taxation at that time.

is equivalent to if he does not take action at this time to save the market , the risks on the financial market side will soon be transmitted to the government level.

On the other hand, if Cai Naihuang could preserve Yuanfengrun and Yishanyuan, the two largest banks, to stabilize the Shanghai market, it would have been a very powerful achievement.

so he took a dangerous move. Cai Naihuang himself went to find 9 largest foreign banks in Shanghai at that time to borrow a total of 3.5 million taels of silver, and at the same time he also drew 3 million taels of Shanghai official silver that he could dispatch, which was equivalent to more than 6.5 million taels of deposited all into these two banks in one go.

Then by mid-August, it basically suppressed the run in the Shanghai market at that time.

However, this 6 million taels of silver only lasted for two months, and after two months, it could not be suppressed. This is because the capital chain that can only be barely maintained has the last straw at this time.

1 In October 1910, the Qing government wanted to hand over a Boxer Indemnity through Jiang Customs located in Shanghai. The money of Jiang Customs at that time was not cashed, and its money was all included in Yuanfengrun and Yishanyuan. The two money banks suddenly took such a large sum of money, and the market would definitely continue to panic, so Cai Naihuang gave a memorial, hoping that the government could draw 2 million from its own bank first. withdraws 1.9 million taels of tax silver from here, which is similar to pulling it back from the person who has just been transfusion. The patient's mental health is very physically unbearable.

You will know what the result will be.

As expected, because this memorial was a financial problem, it came to a department called Du Branch. Du Branch said that you are unreasonable. You threatened the court in the name of so-called market panic, so you not only rejected his demand, but also gave Cai Naihuang's request to dismiss his position. You must pay me the Boxer Indemnity within two months.

Naihuang was furious and I stopped saving the market. I saved myself first, and then took 1.9 million taels away from these two money banks.

The direct result of this action is that Yuanfengrun announced its bankruptcy in October 1910, which triggered a more serious second wave of stock market crash, that is, a bunch of money banks went bankrupt again. This time, the Shanghai Daotai could only rely on the Shanghai Daotai to rescue the market itself. Later, it was found in the market that could use 3 million taels to stabilize the market. The money was borrowed by the Governor of Liangjiang from three foreign banks. is equivalent to using greater face, and then going to foreign banks to urgently put out the fire.

In 1911, the Bank of Communications ushered in a new letter called Sheng Xuanhuai . In order to crack down on the power of Yuan Shikai in the Bank of Communications system, Sheng Xuanhuai said that I would thoroughly investigate the accounts of Bank of Communications. When the bank saw that it was about to be exposed, it took back the turnover money, so Yishanyuan could not hold on until March 1911 (the two major banks in the Qing Dynasty were destroyed at this time).

Because Yuanfengrun and Yishanyuan we mentioned earlier that it is a national-level chain money bank. The stock market crash escalated to the third step, which directly triggered a national-level financial crisis , major industrial and commercial cities across the country, such as Beijing, Hankou , and Guangzhou, in fact, were in panic. is equivalent to the stock market crash transmitted from the securities market to the Shanghai financial market, and then further spread to the national financial market.

Before, Sichuan-Han Railway Company was used to trade stocks for project funds. Shi Dianzhang This person was quickly exposed for using project funds. So at that time, some shareholders of the railway company were chasing the accounts while impeaching the company. They soon found that the part of the 2100,000 taels in the bank was gone, and there was nothing at all.

followed by Shi Dianzhangself embezzled 700,000 taels to speculate on Langzhi stocks, and now the stock price has shrunk to 300,000 taels. The company lost 2.5 million taels at that time, and basically no money is left.

Another important railway is implicated by the rubber stock called Guangdong-Han Railway , and both companies, Guangdong-Han Railway and Sichuan-Han Railway , fall within the jurisdiction of the aforementioned Tourist Ship Department. Sheng Xuanhuai had great power at that time. He plans to nationalize the two companies to solve this problem.

But the solution he came up with at that time caused a big disaster!

He is relatively good to the shareholders of Guangdong Han. The shareholders of Guangdong Han were able to get back the stocks they bought at that time, and most of the 12 parts of the principal could be converted into interest-free treasury bonds.

But not only did the shareholders of Chuanhan basically turn into waste paper, but the rest said that I would take away all the funds on your company's books.

Because the shareholders of Guangdong Han are mainly some large businessmen, they are also very close to bureaucrats! However, many of the shareholders of Sichuan-Han Railway Company are ordinary Sichuan people (, this is really a big deal, and the people's money is 50% off )!

However, Sichuan people really want to build railways by raising money, and this is a contradiction that is out of control! Finally it evolved into the road protection movement in Sichuan, and triggered the subsequent Wuchang Uprising , and then finally triggered the Xinhai Revolution .

Conclusion:

There is no difference between Chinese and foreigners in the matter of greed and creating financial bubbles. The state-owned rubber in the Qing Dynasty, and Dutch has tulips.

There were several opportunities to save this endgame, but the power struggle actually exacerbated the process of the financial bubble burst.

If you have to make a blow between the people and the rich, you must not wave this blow to the people. The rich will not fight to the desperately, but the people will.

This crazy speculation was not the entire reason for the demise of the Qing Dynasty, but it was the fuse that ignited the dynasty's ashes to destroy the explosive barrel, and Sheng Xuanhuai accidentally became the person holding the torch.