Chapter 206: It Is Our Duty!

A train loaded with gold quietly drove out of the train station in Washington and headed for New York.

This special train not only had officials from the Treasury Department, but also half a regiment of Marines.

Fillmore attached great importance to this batch of gold. For the sake of insurance, Fillmore ordered the highest commander of the Marine Corps, Colonel Commander Fox of the Marine Corps, to personally escort this batch of gold to ensure the safety of this batch of gold.

This is gold worth 5 million US dollars! This is still calculated based on the exchange rate of 117:100. According to the current exchange rate, the actual value of this gold has exceeded 6.5 million US dollars.

Cowen looked at the gold on the train reluctantly. Thinking that this gold would be put on the market after arriving in New York, Cowen couldn't help but feel heartbroken.

After the gold from the federal treasury arrived in New York, the Secretary of the Treasury gave a speech on Wall Street. Cowen bluntly denounced the speculation in the gold market and announced that in order to maintain the stability of the value of the US dollar, it proved that the US dollar is still a very credible and strong currency.

The federal government will participate in the rescue and release more than $15 million worth of gold reserves to the gold market on Wall Street in New York to stabilize the exchange rate between the dollar and gold.

Once Corwin announced this news, Wall Street and the entire state of New York exploded instantly.

The effect of Corwin's speech on Wall Street was immediate.

In just half an hour, the exchange rate between the dollar and gold plummeted from 158:100 to 141:100.

A large number of gold speculators were eager to exchange their gold futures and gold for dollars, hoping to get out of the quagmire of the gold market.

However, the gold futures and gold that were still being snapped up an hour ago have now become abandoned in the market.

No one is willing to buy these rapidly depreciating things.

Of course, there are also a few people who are lucky enough to think that the Treasury Secretary is exaggerating and deliberately releasing a smokescreen to deliberately cause panic in the market.

They felt that the news that Corwin announced that the federal government would invest $15 million worth of gold to rescue the market was an outright lie. After all, no one had seen the gold that the government had put into the market so far.

Soon, these speculators regretted it, because the Marines from Washington, fully armed, escorted carts of gold through the city and entered the gold exchange on Wall Street in New York.

Along with the gold, officials from the Treasury Department also entered the gold exchange.

Speculators flocked to the trading hall of the gold exchange to trade.

Looking at this scene, Corwin, who seemed calm on the surface, was actually panicking inside, because the value of the gold invested by the government to rescue the market was only $5 million, not the $15 million he promised in his speech.

If this gold is not enough, the Treasury will continue to move gold from the federal vault to rescue the market.

"Mr. Corwin."

Liang Yao walked to Corwin with a smile on his face and said to Corwin.

"In order to ease the government's rescue pressure, Bank of America will take out $1 million worth of gold to participate in the government's rescue activities.

Stabilizing the value of the US dollar is to stabilize the American economy, and stabilizing the American economy is the unshirkable responsibility of all American commercial banks."

New York Governor Hunter has helped Liang Yao obtain permission from the New York State Assembly to open a branch of Bank of America in New York.

The New York branch of Bank of America has been established for three days. Although the staff has not yet been recruited, many businesses have not yet been launched.

But it is more than enough to concentrate the existing staff to handle the exchange of gold and US dollars.

"Really? Thank you so much." Cowen rolled his eyes at Liang Yao unhappily.

"Should I also present a banner to your Bank of America?"

Cowen is not a fool. He knows very well that the sharp rise in the price of gold in New York is inseparable from the gold tycoon in front of him. It's just that he has no evidence.

"There is no need for a banner." Liang Yao said with a smile.

"But sir, I have to remind you that both the newly emerging futures market in New York and the futures market in Chicago have big problems, and it is easy for speculators to take advantage of loopholes. This time, it's just that someone speculated on gold. At most, there will be more bankrupt speculators jumping off buildings on Wall Street tomorrow."

"You might as well make your words clearer." Cowen said.

"Next time, if someone manipulates Chicago wheat, the problem will not be as simple as some speculators jumping off buildings. You know that the folk customs in Yinlino and Yinzhou have always been very simple." Liang Yao said.

"The leverage ratio of the futures market is too high, only 1%, and the threshold for speculation is very low. It is inevitable that some speculators are willing to take risks."

Liang Yao wanted to say illegal speculators, but then he thought that there was no law or regulation in the United States to regulate the new thing of futures. The malicious speculation of futures cannot be said to be illegal, at most it is immoral.

And the restraint of morality on people is far less than that of law.

"The leverage ratio of the futures market does need to be controlled, but too low a leverage ratio will also reduce the utilization rate of funds and make the futures market lose its vitality."

Cowen thought carefully and asked Liang Yao.

"What do you think is the appropriate leverage ratio?"

"You are the Minister of Finance, I think you are better at this than me." Liang Yao thought for a while and said.

"If it is the futures trading market in California, I would suggest that the state legislature legislate to control the maximum leverage ratio to more than 5%."

Corwin nodded thoughtfully, then sent away the secretary beside him, spread his palms, and asked Liang Yao in a low voice.

"Can $5 million worth of gold bring the exchange rate between the US dollar and gold back to 117:100?"

Liang Yao quickly reacted. Corwin only brought $5 million worth of gold to Wall Street to save the market this time.

If Liang Yao had not started selling gold futures and gold, it would be hard to say whether $5 million worth of gold could save the market.

But Liang Yao had already secretly sold all the gold futures and more than $3 million worth of gold he held, overdrawing a large part of the rising potential of gold in advance.

The price of gold has actually reached its limit, not as strong as Corwin imagined.

"It's $6 million worth of gold, Mr. Minister."

Liang Yao said to Corwin.

"The exchange rate between the US dollar and gold will soon return to the original point, or even lower."

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"Sir, as you expected, the government has stepped in to rescue the market! The price of gold has fallen by a full 30 points in one day! It is estimated that it will continue to fall when trading opens tomorrow!"

Charlie had just returned home from get off work at the telegraph office, and Gould had already been waiting for Charlie at the door of Charlie's residence.

Seeing Charlie return, Gould said to Charlie very excitedly.

"Sir, you are really as good as a god! In just over a week, we made $530,000! A full $530,000!"

Charlie was not as excited as Gould, but just took out the key to open the door of the rental house and said indifferently.

"We only made $530,000, while someone made at least more than $1 million, or even more than $2 million."

After entering the house, Charlie closed the door, habitually locked the door, walked to the desk and sat down, took out a piece of white paper from the side and spread it flat on the table, then filled the pen with ink and began to write.

"Are you talking about Liang Yao? There's no way, Liang Yao has invested much more money than us." Gould bit his lip and said.

"Sir, one day you will become a multimillionaire!"

"Maybe after I become a multimillionaire, he will become a billionaire." Charlie said helplessly.

After writing the article, Charlie took out a check from Barings Bank from the side, filled in the amount of $100 on the check with his left hand, and handed the check to Gould.

"This is Mrs. Brannan's living expenses for next month."

Gould habitually took the check handed to him by Charlie and muttered.

"Sir, every time I handed the check to Mrs. Brannan, she always complained to me that $100 a month was not enough for living expenses."

"Don't pay attention to her complaints, please remember that you are working for me and you only need to be responsible for me." Charlie said seriously.

"A living expense of $100 a month is enough for her to live a life of luxury in New York. I can live well on a salary of $12 a month and save three or four dollars."

"I understand, sir." Charlie nodded.

"The bonds of Yinli Railway Company are very cheap now. The $53 earned in the gold market this time will be used to buy the bonds of Yinli Railway Company."

Charlie took a pot of water and put it on the coal stove to boil.

Boiling water can kill the germs in the water and reduce the chance of infection with cholera. It is one of the successful experiences of New York in preventing and controlling cholera.

After cholera, many New Yorkers have developed the habit of drinking boiled water. Compared with contracting cholera and dying, it is more cost-effective to spend more coal money.

After all, money can be earned again, but life is only one.

"Yes, sir."

Gould agreed to Charlie's explanation without any questions.

Gould believed in the vision of this employer, although after Vanderbilt and Liang Yao announced that they would enter the eastern railway market with new technologies.

The railway company stocks on Wall Street plummeted, and there was widespread grief, but just like the gold market. The railway company stocks will also usher in its turning point. Gould himself also believes that the railway industry is a very promising industry.

Vanderbilt and Liang Yao's interference is not a bad thing for the railway industry.

At least it can eliminate some railway companies that should have been eliminated.

Charlie's ideas are more complicated than Gould's. Charlie not only believes that the railway industry is very promising, but he is also very optimistic about James, the president of Yinli Railway Company, and believes that James is a very capable and courageous person who is capable of leading Yinli Railway Company out of crisis.

Moreover, according to the New York General Railway Act promulgated by the federal government in 1850, the bonds of railway companies are allowed to be converted into shares.

The railway industry is currently in a downturn, and the price of these bonds issued by Yinli Railway Company has plummeted from US$10 per share to US$3 per share, which is worse than the stock price of Yinli Railway Company.

Buying these bonds of Yinli Railway Company now is a good investment. As long as the stock price of Yinli Railway Company rises and the company becomes profitable again, the $53 he spent today will become $1.53 million or even $2 million.

By then, as long as he converts debt into equity, he can become a major shareholder of Yinli Railway Company.

Charlie saw that the handwriting on the paper had almost dried up, so he picked up the paper on the table, folded it and stuffed it into the envelope.

"Send my article to the editor of the New York Post."

Charlie handed the envelope to Gould and said.

Gould took the envelope and left Charlie's residence without any other instructions.

"Liang Yao, Liang Yao, although you have made a lot of money in the gold market, I will make the money you earn turn into a hot potato."

After Gould left, Charlie had a proud smile on his face.