Chapter 1024: Chain Reaction
The young man pointed toward the stock exchange behind him. "Let the British see our resolve!"
"Since they want to destroy the Dutch East India Company, they can forget about getting any investment from the Netherlands. Everyone, follow me! Let's sell off our shares in the Birmingham Kovac Steel Company!"
As this Security Bureau agent led the charge into the trading hall, hundreds of Amsterdam citizens swarmed in behind him.
They didn't go looking for individual stockbrokers. Instead, they moved to withdraw their capital from investment firms. Most of these people couldn't afford a full trading unit on their own, so investment companies specialized in pooling small amounts of public capital to purchase bulk shares.
Naturally, upon receiving a flood of withdrawal requests, these investment firms had no choice but to sell off their stock to liquidate the necessary cash.
The following day, newspapers carried the headline: "Birmingham Kovac Steel Company Sold Off by Angry Amsterdam Citizens."
Since this matter had nothing to do with the Dutch East India Company, it fell outside the scope of news censorship. Consequently, many newspapers joined in, inciting the public to participate in the sell-off.
In just two days, the value of the British steel mill plummeted, with the exchange rate shifting from 760 to 782 shares per trading unit.
The power of the common citizen was ultimately limited, but a trend had begun to emerge.
Three days prior, he had returned all the "borrowed" East India Company stock and walked away with nearly 100,000 Dutch guilders in profit from his short-selling maneuvers.
Now, his traders were armed with fresh capital, scouting for anyone holding large blocks of Kovac Steel stock.
Using the same tactics as before, a massive sell-off worth over a million Dutch guilders flooded the market within a few days. The value of Kovac Steel nose-dived to 1,070 shares per trading unit.
Indeed, this company's market capitalization was far smaller than that of the Dutch East India Company, and it lacked the protection of the Dutch government. Crushing it was a far simpler task.
Initially, the citizens of Amsterdam had sold out of anger, but now, they were selling out of pure necessity. When the market value shrinks by more than 20% every day, who wouldn't be terrified?
The major capitalists had even sharper instincts. As soon as the price broke the psychological barrier of 1,000 shares per unit, they had already begun liquidating their positions to cut their losses.
Over the next three days, Kovac Steel crashed through the floor to 1,800 shares per trading unit.
The only reason it didn't drop further wasn't a lack of sellers, but because it repeatedly triggered the 30% circuit breaker. Otherwise, it likely would have plunged straight past 3,000.
Soon, fueled by an explosion of nationalist sentiment, the crisis surrounding Kovac Steel began to spread to other British companies.
De Witt followed up with ruthless efficiency, concentrating his attacks on five large British firms whose revenue reports were already looking bleak.
The process remained largely unchanged. It started with small-time investors selling based on emotion, followed by De Witt's short-selling capital entering the fray, which forced the major Dutch financial institutions to sell as well to avoid being buried in losses.
Whenever he encountered a large capitalist attempting to stabilize the market—usually because they were too heavily invested in a particular British company—De Witt didn't waste time struggling with them. He simply shifted his target immediately.
There were over thirty British companies listed in Amsterdam; it didn't matter which one he tore down.
Furthermore, through this continuous short-selling, the capital in De Witt's hands grew larger and larger.
With the dual guarantee of catastrophic news and investor panic, his short positions were virtually guaranteed to succeed. In a little over a month, he had pocketed 270,000 Dutch guilders.
While De Witt was busy in the stock market, the Security Bureau was equally active.
Public opinion was steered toward the narrative that "all British stocks are facing major risks." Even British companies that hadn't been targeted saw their share prices decline to some degree.
At the Amsterdam Schouwburg Opera House...
The actors on stage were pouring their hearts into their performance, but in the VIP boxes on the second floor, several titans of the Dutch financial world had no interest in the show. They were huddled together, whispering with furrowed brows.
"I know those British companies are definitely oversold, but in the current climate, who knows when a turnaround will come?"
"If you want to capitalize on an oversold opportunity, I suggest you choose the East India Company instead. Once the business with the Cape of Good Hope blows over, the Parliament will certainly step in to stabilize their stock."
"Quite right. In fact, I've already purchased 200 units of East India stock." A thin, elderly man took a sip of wine and added, "However, I believe the Cologne Coal Development Company is worth an investment."
"A friend of mine wrote to me recently, saying that every day in Paris, one can see countless carriages transporting honeycomb coal back and forth."
"This company provides a third of all the coal used in Paris."
"Are you referring to the company that owns the 'Ink of the Lord' mine? Their stock price is indeed low, and there is massive room for appreciation."
"The Wickson Ironworks is also worth considering. I heard France has established a '33 Iron Bridge Plan' with direct government funding. Their future profit prospects should be excellent."
He was referring to the ironworks located north of Trier.
As for the "33 Iron Bridge Plan," it was a proposal put forward by the French Bureau of Transportation at Joseph's request, claiming they would build thirty-three iron bridges across France's major rivers.
Of course, when exactly they would all be completed was anyone's guess. But such a gimmick was perfect for stimulating the investment market.
With this brief discussion in a private box, the fate of over 1.5 million Dutch guilders was decided.
Following this "explosion" in the Amsterdam stock market, more than 7 million Dutch guilders—roughly 90 million francs—were withdrawn from the East India Company and various British firms.
Just as Joseph had predicted, this money was desperate to find a new home.
Although the "Rhineland-affiliated" companies had seen a slight dip in their share prices due to the general market downturn in the Netherlands, they looked like stellar performers compared to the British companies.
Over the following period, led by the Cologne Coal Development Company, the stock prices of the Rhineland group began to climb steadily.
And De Witt, acting on orders from Versailles, used the profits he had gained from shorting to buy heavily into these companies, driving their prices even higher...
West of Reims Province, France.
Outside Meition Village.
A convoy of five carriages was moving slowly along a winding, narrow path.
Rochefort, sitting on the lead carriage, showed no sign of impatience. He hummed a little tune as he re-checked his recent ledgers.
He knew that if it weren't for the poor transportation links to the village ahead, it wouldn't be his turn to make this money.
Half an hour later, the convoy finally entered the village. A dozen or so children trailed behind the carriages, shouting happily: "The coal is here! The coal is here! The flames will roar, so get the funnels ready!"
The convoy had come to deliver honeycomb coal—a trip every two months was enough to satisfy the entire village's needs.
Soon, the carriages came to a halt in the open space before the village church. Father Carlo hurried over, calling for the children to notify the adults to come and buy their coal.
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