Chapter 287: Stock Exchange
As time moved into September 1910, the floods in several provinces in East Asia became increasingly severe, with famine and desperate refugees rising up across various regions, leaving the population in dire straits.
It was at this time that Australasia had the perfect opportunity to gain goodwill. Arthur grandly announced that, on behalf of Australasia, 100 tons of food and 50,000 Australian dollars would be sent to the disaster areas to show the peaceful and friendly nature of the country.
As expected, the announcement of this aid was widely publicized by the local government, and the disaster-stricken citizens were deeply grateful to Australasia.
What they didn't know was that the revenue from the sale of grain by Australasia during this disaster was far greater—hundreds of times more than the aid they had received.
At the beginning of September, Sydney established the first stock exchange in Australasia. Arthur personally participated in the opening ceremony of the stock exchange and gave a speech emphasizing its importance.
In fact, stock trading had already begun in 1602 in Amsterdam, Netherlands, when the Dutch government issued the world's first stock for the Dutch East India Company. By the 17th and 18th centuries, countries such as the Netherlands, Germany, France, the UK, and the US had all established their own stock exchanges, a practice that has been ongoing for over a century.
Even in what appeared to be a less developed country like the Island Nation, two stock exchanges were established in 1878.
Looking at it from this perspective, the establishment of Australasia's stock exchange in Sydney was considerably late compared to other nations.
The newly established Sydney Stock Exchange was under the jurisdiction of the Treasury and was not designed for profit. However, the establishment of the stock exchange and the stock market held significant importance for the development of the nation and private enterprises.
Private businesses could now choose to list on the stock exchange and divide their company into shares, selling them to others. This would allow companies in need of capital to raise funds in the market to meet the large financial needs required for construction and development.
Apart from raising funds, the stock market also helps to diversify investment risks, leading to an increase in private business assets. This would benefit the development of Australasian businesses and attract a significant amount of foreign capital, helping drive the country's progress.
Considering the population and economic scale, the stock exchange in Sydney was more than enough. Sydney was the only city in Australasia with a population exceeding one million, and as the political, economic, and cultural center of the country, it naturally attracted more capital.
With the stock exchange now established, it was believed that small and medium enterprises in Australasia would experience certain growth.
As September passed slowly, Arthur's attention began to turn toward the European situation.
According to the historical timeline, the Second Moroccan Crisis was about to erupt.
The Moroccan Crisis was a political conflict between Germany and France in Morocco, which also intensified the competition in Europe and worsened relations between Germany and other countries.
After the First Moroccan Crisis, in March 1907, France used the pretext of a murdered doctor to invade and occupy the eastern Moroccan province of Oujda. Then, in August 1907, France used the excuse of several French workers being killed (who, in fact, had damaged a Muslim cemetery during construction) to forcibly land in Casablanca, occupying five port cities on Morocco's Atlantic coast.
After France occupied Casablanca, the French authorities clashed with the German consulate over the capture of deserters, which greatly strained relations between France and Germany.
At the time, Germany chose an unexpected approach of de-escalation, agreeing to arbitration to resolve the issue peacefully. This decision was influenced by two main reasons: First, the Bosnian Crisis had already made the European situation very tense, and Germany did not want to add more fuel to the fire. Second, Germany had realized that France's control of Morocco was inevitable, and rather than continuing to fight over Morocco, Germany chose to compromise in exchange for economic benefits and compensation from France in Morocco.
Thus, on February 9, 1909, France and Germany signed the "Franco-German Agreement," in which France acknowledged Morocco's independence and territorial integrity and recognized Germany's equal economic rights in Morocco. In return, Germany acknowledged France's special political rights in Morocco and agreed not to interfere with France's actions to maintain peace and stability in Morocco.
The signing of the Franco-German Agreement greatly satisfied the politicians and high officials of both countries and significantly alleviated tensions between them, shifting their conflicts to the negotiation table instead of the battlefield.
Unfortunately, France's reconciliation with Germany caused significant concern for the British.
Ultimately, with Britain in the picture, France and Germany were unlikely to reach an understanding. Both Germany and France held hegemonic status in Europe. If these two countries formed an alliance, they could dominate the entire continent, which was something Britain could not allow.
After all, despite the vast colonial holdings of Britain and France, most of the profits were still controlled by Britain. If France and Germany reconciled, their natural enemy would inevitably become Britain.
Could Germany, after reconciling with France, not also reconcile with Russia? How would Britain stand in that case?
Although Britain and France were the two largest colonial powers, the majority of the profits were controlled by Britain. If the major European powers reconciled, Britain would be left isolated.
The Anglo-German rivalry was Britain's primary concern, and if France and Germany reconciled, the most significant shift would be a shift from Anglo-German rivalry to a race for world domination between the two greatest powers.
Given the growing tension in Europe, Arthur was acutely aware that this was a situation that could lead to war. While the First Moroccan Crisis was resolved relatively peacefully, no one could guarantee that this time, the Moroccan crisis wouldn't serve as the spark for a larger war.
Though there was still no certainty, it was necessary to prepare for the possibility that this conflict might lead to war.
The Second Moroccan Crisis would most likely lead to heightened tensions, particularly as Britain would likely align itself with France, increasing the hostilities with Germany.
Furthermore, the Second Moroccan Crisis had already caused the focus of the major powers—Britain, Germany, and France—to be concentrated on this issue, leading to opportunities for other ambitious countries to expand their interests.
This included wars like the Italian-Turkish War and the Balkan Wars that broke out during the crisis.
Notably, the Ottoman Turkish Empire, which was in decline, played a significant role in both wars. It was interesting that the assassination of Archduke Ferdinand, the trigger for the First World War, was also connected to the Balkan Wars.
After two Balkan Wars, the region split into two factions, one supported by the Allied Powers and the other by the Central Powers, with Serbia's ambitions at the center of it.
These conflicts, combined with Serbia's desire to unify the Balkans into a Greater Serbia, led to further tension with Austria-Hungary, whose territory had a large Serbian population, and who had already annexed Bosnia and Herzegovina.
Ultimately, the tension between Austria-Hungary and Serbia would lead to a series of events that would culminate in the assassination of Archduke Ferdinand, sparking the First World War.
(End of Chapter)
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