Chapter 1937 November 4th

Eight thirty in the morning, sitting in his office.

The news that three banks in the Japanese Concession had been robbed.

When it was specially notified to Director Pan's ears.

His reaction was greater than anyone else's.

In this world, apart from the soldiers of the Special Operations Company, he was now the only one who knew who had done it.

Director Pan was shocked: he had not expected that he had only given the information to Lin Fan last night.

And he acted in the middle of the night.

This Lin Fan was unwilling to delay even a day!

More importantly, they had succeeded.

How did they do it?

How did everything become so easy in the hands of the Special Operations Company?

The questions in his heart clawed at him.

But Director Pan knew that now was the time for all kinds of people to stretch their necks and look around for information.

Therefore, he neither called nor sent anyone to find Lin Fan and the others to inquire about the news.

He estimated that among the people in Shanghai now, at least three out of ten were watching their surroundings with wide eyes.

They had all accepted tasks from various gangs and organizations to find out who had robbed the three banks.

Director Pan quietly sent the news back to the rear.

Those who had received his telegram last night and had been discussing it enthusiastically without sleep.

Upon receiving the latest news from Director Pan, even those leaders who had the composure to remain unfazed when Mount Tai collapsed before them.

Could not help but look at each other. Li Desheng's Hunan accent blurted out:

"This Lin Fan and his Special Operations Company have the style of continuous operations during our Long March.

This is a good style! An excellent team is trained in this way.

Within twenty-four hours, they have stirred up three huge waves in Shanghai!"

Enlai also said: "This young comrade not only has ideas, but also has charisma when he does things!

Now, no outsider will suspect that they did it.

Someone who has just retrieved property from the three tycoons would not do anything else overnight."

"Yes! The little comrade said that fighting is about economics, and to put it bluntly, it's about money.

It is also a reminder to us that he wants us to engage in large-scale economic construction!"

"Although we are a border region, our economic production is weak.

But precisely because it is a border region, there is a lot of uncultivated wasteland.

It is still possible to engage in production and construction while fighting.

We can use this wasteland without encroaching on the interests of the people,

Nor will it cause damage to the landlords. It is a beneficial and harmless thing.

We must engage in large-scale production and strive for self-sufficiency in grain.

This is the only way to support the long-term war of resistance.

Moreover, we must engage in large-scale farmland water conservancy construction, which will not only benefit the land we have cultivated,

It can also irrigate the land of the surrounding masses.

It is conducive to the construction of a close relationship between the army and the people."

"This proposal is good! Very good! I support it!" Li Desheng said happily.

"I support it!"

"Support!"

……

A large-scale production and construction campaign in the border areas began at this time.

Lin Fan didn't know that because of his arrival, some things had changed.

Originally, this large-scale construction was started three years later, when the base area encountered difficulties.

Now it has started three years earlier.

At the same time, the Presidential Palace in Nanjing:

Chang Kai-shek was also gathering his staff to hold a meeting.

They were not surprised by the small farce in Huang Jinrong's Great World.

What these people were discussing was the emptying of the Japanese banks' vaults.

The already precarious finances of the National Government became even more difficult.

When a snow mountain collapses, no snowflake can escape.

What the three Japanese banks were about to face was clear to all of them:

A run on the banks!

A large number of withdrawals!

At this time, with the slightest disturbance, all the people in Shanghai would go to withdraw the money they had deposited in the banks.

If such a thing really happened: the Central Bank of the National Government would hardly be spared!

What to do?

All the people present frowned!

Of course, they knew what to do:

The Japanese, with their current momentum, would certainly not let these three banks go bankrupt.

But even if they transported cash from their home country, it would take time.

But time waits for no one!

Everyone present knew that at this time, as long as someone reached out and gave the three banks a large sum of money to tide them over.

After a few days, the matter would be over.

The entire financial crisis would disappear without a trace.

"Is this financial crisis good for us?" Chang Kai-shek asked.

His Minister of Finance shook his head: "It's not good!

This is a lose-lose situation.

The damage to us is actually greater.

Because if this crisis occurs in Shanghai,

Next, it will spread to the whole country.

Making our already fragile economy even worse."

Chang Kai-shek stared at his Minister of Finance: "Do you have a solution?"

Song Wen looked at Chang Kai-shek with a firm look in his eyes: "Yes! And we can make a lot of money from it.

But I'm afraid some people will say that I'm aiding the enemy!"

Chang Kai-shek asked: "Tell me about the solution first!"

Song Wen said calmly: "Let our Central Bank issue loans to Japanese banks through the United Kingdom and the United States."

As soon as these words came out, it caused an uproar among the experts present.

Chang Kai-shek understood that he was not on the same level as these experts, so he asked: "Tell me the reasons!"

"First, a financial crisis at this time is more harmful to us.

The Japanese only lose their reputation, and we lose real benefits.

Therefore, we cannot let it turn into a financial crisis.

This is the main reason.

Second, our legal tender has been devaluing since August.

Everyone here is clear about this.

In the foreign exchange war with the Japanese in the past few months, we have lost a lot of foreign exchange reserves.

Therefore, we need foreign exchange.

More importantly, we need foreign exchange to buy planes, cannons, and food.

Now there is such an opportunity: we use legal tender to order weapons and equipment from the United Kingdom and the United States.

They use this batch of legal tender to provide targeted loans to these five Japanese banks.

Our legal tender will be exchanged for foreign exchange and become the materials we need." Song Wen finished his explanation.

The experts present also understood: if the National Government directly lends money to the Japanese, it would be like throwing meat buns at a dog—a one-way trip.

But if the United Kingdom and the United States lend money to the Japanese, the Japanese would not dare not to repay it.

Good calculation!

Chang Kai-shek thought for a moment: "If we do this, aren't our friends, the British and Americans, suffering a loss?

They will eat people if they suffer a loss."

Song Wen heard that Chang Kai-shek was not concerned about whether he was aiding the enemy or not.

But he was concerned that his friends were suffering a loss.

He said with a smile: "Our friends will not suffer a loss. They receive legal tender from us and lend it to the Japanese.

We can specify in the contract that it will be calculated at a fixed exchange rate.

Let the Japanese repay them in US dollars and British pounds.

In this way, they can not only receive interest, but also receive the profit from the exchange rate difference.

Of course, there are also the large purchase orders we have placed.

As for legal tender, I think everyone understands what it is!"

A smile appeared on Chang Kai-shek's face: "Legal tender is our legal currency!

This still needs to be maintained."

Everyone present knew that legal tender was issued by the Central Bank of the National Government.

Thinking about issuing a few hundred million more is not a big deal at all.

Everyone applauded Song Wen's idea enthusiastically.

Chang Kai-shek ordered: "From now on, all the experts present will have to be inconvenienced.

You must not leave!

We must not take the initiative in this matter. We must wait until the Japanese are desperate.

Then we will do it."

When it came to money, Chang Kai-shek's shrewdness was immediately revealed.

Not letting the people attending the meeting leave was to prevent the news from leaking.

This matter would be resolved in at most two or three days.

Let these experts be inconvenienced!

Song Wen also began to go out to make preparations.

Today, the Japanese Concession was in chaos.

The robbery of three banks was even more worrying to these Japanese than the bombing of Jiangwan Airport.

Jiangwan Airport belonged to the Empire, and the deposits in the banks belonged to them.

The emptying of the bank vaults immediately caused everyone who had deposited money in these three banks to be afraid.

These people, waving their deposit slips, crowded outside the gates of the three banks, angrily clamoring.

They were ready to swarm in at any time. They all wanted to withdraw their money.

The headquarters of Mitsubishi Bank, Taihe Bank, and First Bank were robbed.

They had several branches in Shanghai, which were now surrounded by crazed people.

People were waving their passbooks in their hands, just wanting to withdraw their own money.

The cash in these branches could not cope with such a run on the banks.

In less than half an hour, all the cash in these stores was withdrawn.

The Japanese Concession authorities had to send troops to disperse the depositors crowded in front of the banks.

As for the entrance of the three headquarters, it was already guarded by soldiers of the Japanese Shanghai Naval Landing Force.

No one was allowed to enter or leave!

Including those employees who had just gone to work this morning.

As for all the employees in these three banks, they were now all under surveillance.

The ordinary people who had deposited money outside the bank, no matter how much they吵闹 (chǎo nào – make noise, clamor), as long as they did not approach the cordon set up by the military.

The soldiers would not attack. As soon as they dared to approach, they would immediately be greeted with rifle butts, fists, and feet.

After trying a few times, those grief-stricken depositors dared not challenge them anymore.

Most of these depositors were Japanese expatriates.

The money they earned in Shanghai was of course deposited in their own country's banks.

Today, they just wanted to withdraw their money!

The other branches of these three banks were soon facing the point where there was no money to withdraw.

At this time, no bank dared to reach out to lend money to Mitsubishi Bank, Taihe Bank, and First Bank.

Originally, it was not uncommon for banks to temporarily borrow some money from each other in case of emergency.

Rather, it was a very common problem, but now no one knew whether these three banks would go bankrupt.

In fact, the best way for the three banks was to go bankrupt.

Anyway, if they went bankrupt, they would not have to repay the money.

This was the idea of ordinary people.

The run on the banks was not only happening in the Japanese Concession.

Even the two Japanese-funded banks in the Public Concession were also experiencing large-scale runs.

Those who had deposited their money two months ago because the Japanese banks had raised interest rates.

They were now frantically squeezing in, trying to get all the money out.

These two banks, which were originally able to operate normally, were suddenly subjected to such a run.

They immediately could not bear it.

Their request to borrow money from their peers was rejected.

No matter how high the interest rates they paid, no bank was willing to lend a hand.

They had to urgently reach out to other banks in the concession, hoping to get assistance.

But at this sensitive moment, no bank dared to take the risk.

All the banks were seizing the opportunity to recover funds, preparing to deal with the possible run on the banks that would follow.

Ordinary people are not necessarily rational. When they see that they cannot withdraw money from Japanese banks.

They will worry about whether their own banks will be like this.

Even if only five out of a hundred people have such concerns.

If they go to the bank to withdraw their money, it will create a demonstration effect.

It will drive more people who originally did not want to withdraw their money to withdraw their money and hold it in their hands.

Maybe this money will return to the bank again in a few days.

But whoever can't survive this wave will only go bankrupt.

The entire financial community of Shanghai was shivering.

The money that banks receive from depositors is not all kept in the vault.

They need to lend this money out and collect interest.

Only in this way can they give interest to depositors, and at the same time, they can have profits.

If all depositors withdraw their money at the same time, the bank will only have to close down.

Japanese banks are now facing this problem.

All other banks in Shanghai are urgently recovering funds.

Preparing to deal with this sudden event.

Waiting for this black swan that suddenly fell from the sky to fly away.

The entire Japanese stock market suddenly plummeted, especially bank-related stocks and bonds.

For the sake of the Empire's honor and the bank's reputation.

The five Japanese banks in Shanghai were looking for support everywhere.

But in their current situation, no foreign bank dared to lend a helping hand.

After begging all the foreign banks in Shanghai, the bankers of the five banks who still had nothing to show for it.

They had to sit down together and take stock of which banks they had not yet gone to for help in Shanghai.

They disdained to seek help from those small banks.

Small banks simply cannot handle a big scene.

What they need now is not a shortage of tens of thousands or hundreds of thousands.

They estimated that the five banks combined would need at least 100 million pounds to save the market.

"Or, let's declare bankruptcy and withdraw from Shanghai." One banker suggested.

"No! If we declare bankruptcy here, our bank's reputation in the international community will be completely lost.

We must not go bankrupt no matter what. We only need three days.

We can transfer funds from our home country in three days.

Gentlemen, you must work hard!"

"But we have searched all the powerful banks in Shanghai!

None of them are willing to lend a helping hand."

"No! There is one big bank that we have not tried." One banker shouted loudly.

"Which one?"

"The Central Bank of the National Government!"

"They will only laugh at us. How can they lend a helping hand?

You must know that we are at war!"

"No matter what, we should try to work hard!

For the sake of the Empire!"

"Alright!

For the sake of the Empire!"

Bankers are never lacking in people who are willing to pull chestnuts out of the fire.

When these Japanese bankers really came to the Central Bank of the National Government.

They were actually received normally.

Regarding their proposed request for a turnaround.

The Central Bank did not reject it outright.

They only proposed: to use gold and foreign exchange as collateral in exchange for legal tender to cope with this sudden run.

The five banks immediately stated: they agreed to this plan.

However, their inventory of gold and foreign exchange was not enough to cope with this run.

Therefore, they also needed a loan of 100 million pounds.

For the Central Bank of the National Government, anyway, they printed legal tender themselves.

On the other hand, since the beginning of the war, the unfavorable war situation has caused the devaluation of legal tender, which has been out of control.

Now that there was such an opportunity to exchange a large amount of legal tender for hard currency such as gold and foreign exchange, they were unwilling to let it go.

With this batch of gold and foreign exchange, they would have a better chance of winning the financial war with the Japanese in the future.

But lending money to Japanese banks, and in pounds.

The Central Bank of the National Government immediately refused.

Although there were cannons rumbling outside the concession, there was another set of rules inside the concession.

However, they proposed a plan that both parties could accept.

Not only did the two Japanese banks outside the concession immediately exchange a large amount of legal tender from the Central Bank of the National Government by mortgaging.

Even Mitsubishi, Taihe, and First Bank, the three banks in the Japanese Concession, reached out to the Central Bank of the National Government.

The three of them had no gold or foreign exchange to mortgage.

The Central Bank of the National Government was not nervous at all.

It immediately gathered the bankers of the United Kingdom and the United States to discuss a plan: the three Japanese banks would borrow money from the British and American banks.

The funds would be provided by the National Government in legal tender, and this money would be used to order weapons, ammunition, and aircraft from the United Kingdom and the United States.

When the five Japanese banks repaid the money, they would repay it in pounds and dollars.

The exchange rate would be fixed according to the exchange rate this morning.

Everyone was happy!

The British and American bankers skimmed profits from it, and their military industries received a large number of orders.

Most importantly, the three Japanese banks were preserved, which could eliminate a potential financial crisis.

The National Government directly exchanged legal tender for urgently needed aircraft, cannons, weapons, and ammunition.

This business was a win-win-win situation.

What is legal tender?

In peacetime, this is the legal currency of the country, but now it is wartime, and even if there is a little inflation, it cannot be helped.

Moreover, it is now possible to use these paper-like things to exchange for genuine materials.

The minimum amount of this subprime loan was 60 million US dollars plus 60 million pounds.

On the first day, the Central Bank of the National Government had to provide the Japanese with the minimum amount of loan currency.

The maximum amount was 200 million US dollars plus 200 million pounds, a total of 400 million.

This amount would need to be determined later, depending on the needs of the Japanese.