《1855 American Tycoon》Chapter 19: The Lost Captain

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The uncle went on to tell his daughter a story about how the Mexicans cowardly attacked, and then they used horse guns, pistols, and sabers, well, mostly sabers, to make those Mexican scum human again in a minute.

"It was a Mexican cavalry unit, a little more than we had. They were probably on the same mission as we were, and the cowards shot at us as soon as they saw us. Well, you know, those crappy guns they had couldn't shoot that far, and at that distance, they could only hear a shot. We are not the same, we directly pulled out the saber, towards this group of cowards rushed over, Grant rushed in the forefront, and I followed closely behind him ......"

"Daddy, you're not as brave as Uncle Grant." Little Laurie said, "Every time your story, Uncle Grant always rushed in front of you."

"That is because Grant is small and lighter, so the horse carrying him can run faster." The uncle defended a sentence, and then continue to tell his story.

"Those Mexican cowards, once they saw the shiny saber, immediately scared out of their wits. They turned their horses and ran, and to run faster, some guys even lost their guns. However, when their horses turned around, we had already rushed on them, and I swung my knife and cut down one ......"

In fact, with the rhythmic rocking of the train, little Laurie has been a little sleepy, after listening to a story, little Laurie hugged her father's arm, and directly fell asleep.

"The company's main business is to provide a wide range of products and services to its customers. The company's main goal is to provide the best possible service to its customers.

"It's okay, we love what you're saying, don't we, John?" Scrooge said.

"Yeah." Rockefeller said, "I never thought we'd meet a war hero here." Rockefeller said the same thing Scrooge said.

"A hero?" The old man sighed and shook his head slightly, but didn't say anything more.

"Uncle, where are you going?" Scrooge asked.

"Oh, I'm going to Cleveland with my daughter."

"What a coincidence, we are also going to Cleveland." Scrooge said, "Are you traveling or visiting relatives?"

"Neither. I'm going to work. There's an equestrian club in Cleveland that needs a riding instructor, and they know I was in the cavalry, so they gave me this job." The uncle's voice was very low.

It was just a kind of manual labor. Well, besides teaching people how to ride, he did all the horse breeding and so on. Of course, compared to carrying bags on the docks or goods, not long ago Rockefeller resigned from that job, but a lot worse. How could a cavalry officer who had fought in the Mexican-American War do such a job at such an age?

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"We are from Cleveland. Which riding club are you in? I'd like to learn how to ride, too." Scrooge continued.

"The Cleveland Dragoon Club, if you want to learn, you can come to see me, oh, I have not asked your names. My name is Robson, a retired cavalry captain." The older man replied.

"My name is Scrooge, and the guy across the street is John, uh, Rockefeller. Rockefeller." Scrooge introduced himself to him as well.

"Nice to meet you guys." Captain Robson nodded to them.

So the three men continued to talk. Scrooge and Rockefeller learned that Captain Robson was kicked out of the army as soon as the war was over because he was talking nonsense to a reporter about how the U.S. Army was killing Mexican civilians.

"I blame my mouth, I was young and dared to say anything." Captain Robson lamented this.

Robson's bad luck is not the only thing, two years ago, his wife was seriously ill, although Robson back to save his wife, almost all his savings, and even debt, his wife was called by God to go, leaving him and a son and a daughter in this world.

"What about your son?" Rockefeller asked.

"Oh, he is a sailor on a sea vessel. I haven't seen him for most of the year." Robson replied.

After burying his wife, Captain Robson began to follow people to trading, so that the money earned from trading to pay off debts and support the family. At first, his luck was not bad, business was going well, and although the money earned can not make him rich, but also considered having enough to eat, but did not want, a week ago, a storm suddenly came, and the price of food almost to a high dive like the speed of the wild. The storm broke Robson's bankruptcy, if not for the sake of his children, he almost even had the idea of suicide.

He was able to find out about his plight and introduced him to the equestrian club ......

Listening to Robson's story, Rockefeller also had some heart mantle. If Scrooge hadn't first noticed the problem of oversupply of food, perhaps he would have lost as much as Captain Robson in the food trade. So he once again took out his little book and marked on it: "Do not be deceived by the hot market, but always be alert to whether the supply has exceeded the demand. The better the market situation, the more vigilant you must be!"

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......

Only a few days after returning to Cleveland, the effects of the collapse in food prices began to be felt, first in the transportation system, as the food was no longer worth the money, and naturally, there was no need to ship it out to sell. In the case that the profit from buying food to Europe was not even enough to support the shipping cost, who would hire the ships? Therefore, the docks near the canal were now deserted, and almost all the boats had dropped anchor and lowered their sails. The sailors had also left their boats and were hanging around the pier. Since they could not go to sea, these sailors naturally had no wages. The sailors used to get money quickly and spend it in a big way, plus most of them were jury members, and now they had no money at once, so they fought and robbed more and more.

Not only shipping, but railroads also followed the problem, food is not transported, and empty large sections of wagons were. And the reduction of transport demand has reduced the demand for new railroads and locomotives, and the reduction of demand for these has made it impossible to sell things like steel in Europe, and then one thing led to another, and almost all industries were in a panic.

For such a panic, Scrooge was prepared, Scrooge knew that the crisis of the financial system was coming, but he did not panic now, because he had already exchanged the dollars in hand for gold. At this time, gold is still reliable.

......

In this economic situation, Clark, Scrooge, and Rockefeller joint venture of the company now the regular business is certainly not much better. The good thing is that, unlike other companies, they did not stockpile high-priced food before, so compared to similar other enterprises, it is not bad, although not too profitable, in Rockefeller's efforts, it did not lose money.

"The crisis will continue for some time, and it's enough for the company to stay afloat in the meantime." In the company's shareholders' meeting, Scrooge opened the door to say this.

Because of their success in shorting food, Clark and Rockefeller are now somewhat subservient. But Rockefeller still said.

"Scrooge, can you analyze with me the reason why you made such a judgment?"

"Ah, this is a long story." Scrooge smiled, "I'll try to make it as short as possible."

"Well, have you ever thought about what is implied in the price of a commodity?" Scrooge asked.

"What's in it?" Clark didn't get it yet.

"I think the price of a product should be equal to the final profit plus the wages we pay out plus some other costs. That's true for any business or any item. Do you have any questions about this?"

Rockefeller thought about it, and then looked at it with Clark, and then shook his head together and said, "No problem with that."

"Considering the so-called other costs, is the purchase price of goods of other enterprises, for example, we want to transport a ship of grain to New York, including the price of local grain, transportation, and labor prices. Transportation and labor are all commodities provided by other companies. So if you look at the whole world, the total price of goods in the world is equal to the total profit plus the total wage. This conclusion is not a problem, right?"

This time, Rockefeller took a little longer, then nodded and said, "That's right, no problem!"

"But there's a serious problem here." Scrooge paused briefly, "Wages alone are not enough to buy all the goods, must also join the purchase of profits, production, and sales to balance. But how can profits be used entirely for consumption? So the question arises. Well, John, do you see what the problem is?"

Rockefeller thought for a while and finally said, "So, no matter what, there are always some goods that can't be sold?"

"Very good! Then think about what you do if you find that you have goods that do not sell?"

"Reduce production, reduce losses," Rockefeller said.

"Good, that means you have to lay off employees?"

"Of course. I can't afford to keep my workers at a loss."

"Well, you're not the only one who thinks that way, others do too. So, the total wage is even lower, and the goods are even less sellable, so it's one step closer - and then the vicious circle. This is the economic crisis!"

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