Chapter 77: Recovery
As soon as Lu Bowen left, Gu Yansheng still had to notify Wu Sibao, lest he moved too fast and Lu Bowen ran out of goods.
“How’s the sealing up going on your end?”
“Hahahaha, full harvest! Let me tell you, these unscrupulous merchants had warehouses piled so high they couldn’t fit anymore, and now it’s all in our hands, hahahaha.”
Even over the telephone, Gu Yansheng could tell how smug Wu Sibao’s face was.
Gu Yansheng laughed, “We can’t put it that way. If we do this, won’t we become extortionists?
Tone it down a bit on your end, slow down the actions, but don’t stop completely, just pause yours for now.
The intimidation effect today is about enough. I’ve sent people to receive goods. These businessmen should be scared half to death by now, fearing the Japanese will forced requisition and leave them with nothing. If you stop now, my people will go negotiate. Those willing to sell at low prices, we’ll properly buy over. That’s called doing business—one willing to hit, one willing to take it. No one can say anything.
If there really are those unwilling to sell, then go seal them up later. It’ll also teach these greedy unscrupulous merchants a lesson.”
“Won’t that still cost money?”
“What’s wrong with spending money? Wu Sibao, let me tell you, never begrudge spending money!
Think about it—these many businessmen, who knows what big and small relationships they’re hooked up with behind the scenes. We make money, sure, but there’s a long future ahead. Don’t stir up public outrage.
Seal some, receive some, buy some more—that’s enough for us. If you really piss everyone off and make them run, collapsing Shanghai’s economy, how will you explain it to the Japanese?”
“Alright, alright, I’ll listen to you, okay? But you have to press the prices lower. I reckon these unscrupulous merchants now will sell as long as there’s money.” Wu Sibao was greedy, not stupid. What Gu Yansheng said made reason, so he had to listen.
Recalling what Li Shiqun had said, he added:
“But just now my brother sent word that the mayor’s side demands his warehouse and some British persons’ private warehouses be sealed up. I have to execute that.”
“There’s such a thing?”
Gu Yansheng was stunned listening to it. Thinking it over, he could roughly guess it was Fu Xiao’an’s strategy for the stock market, but it had nothing to do with him—receiving cotton yarn was the priority.
“Since it’s his demand, just seal it. Anyway, you wouldn’t dare touch his meat.
As for the British persons’ private warehouses, heh, what are they? Said to be private warehouses, but the registration owner isn’t them, right? Do I need to say how to handle it? Giving them one cent would mean I, the Deputy Division Chief of Judicial Department, held the position for nothing.”
“Hahaha, good! I know what to do. I’ll get to work first, and we’ll drink together tonight to talk more.”
Zhongye Public Office.
Half an hour before the stock market closing.
The stockholders trading futures could finally confirm at this moment that the futures rebound led by cotton yarn to 90 bucks was thoroughly a washout by the main force.
Those who went long in that wave were now all trapped.
And after 90, cotton yarn price staged declines, with several rebounds each time thought to be the bottom, but actually all washouts. Now, cotton yarn price didn’t even bother performing, endlessly hitting new lows.
Directly down to 22 bucks!
22 bucks cotton yarn—Shanghai hadn’t seen such a cotton yarn price since the Republic of China.
At this price, it didn’t even cover the cost of receiving cotton, let alone labor costs and machinery costs.
Normally, at this price, they’d mortgage houses, sell pots and pans to buy in.
But today, they really didn’t dare bottom fish.
Because once Japanese forced requisition started, these futures contracts in hand would be waste paper too stiff even for wiping butts—worthless.
And now outside, forced requisition was playing out, with Agent Headquarters teaming up with Japanese Gendarmes to seal warehouses—the news spread here lightning fast. Facts beat rumors.
Rumor has it many merchants were urgently trying to dump their goods.
Grain was okay—opening the warehouse to sell could always move some, the cheaper sold, the happier SH citizens bought, clearing faster.
But cotton yarn couldn’t be handled at all.
Merchants wanted to sell, but no one would take it!
Cotton yarn was controlled supplies. Caught by Japanese selling without permits meant jail time.
Even if they forced sales, honest cloth shop and clothing store bosses wouldn’t risk it for that bit of cotton yarn—one pack was 181 kg, how much could a clothing store use? Not worth it.
And merchants wanting to break it into bits to sell cheap to citizens was even more impossible—this wasn’t cloth, it was cotton yarn, raw materials, still several processes away from making clothes.
No way to clear inventory before Japanese Army forced requisition.
As stockholders, pooling wisdom while watching the spectacle, they’d already racked brains for these cotton yarn bosses on any salvage possibilities, but after thinking it over, the final conclusion was: as long as Japanese forced requisition, no salvation—wait for death.
Cotton yarn bosses going bankrupt was certain, cotton yarn options worthless, impossible to even claim compensation with such options.
Playing cotton yarn now, the only expectation was betting Japanese Army would abandon this strategy—pure gamble.
After all, cotton yarn price now was truly tempting.
Once winning, not counting leverage, there’d be several times the revenue.
Otherwise cotton yarn should’ve been beaten to one cent.
Three o’clock, stock market closing.
Cotton yarn closing price held at twenty bucks eight dimes eight, while other commodity futures prices were also quite ugly.
From two thirty to three, no miracles happened. Even Fu Xiao’an himself didn’t come out to say a word of clarification. Even Fu Xiao’an’s own warehouses were increasingly sealed—the last shred of bullish possibility shattered. Forced requisition was now a nailed-down certainty in everyone’s mind.
This stock market scene spread rapidly mouth-to-mouth via dispersing stockholders.
Before tomorrow’s stock market opening, it turned into massive pressure weighing on all hoarding merchants’ heads.
They hoarded goods, Japanese wanted to raid their nests!
Even Fu Xiao’an couldn’t hold—should they hard resist waiting for clearer situation, or cut tail to survive before their turn?
Choice not hard.
Market began intense reaction.
Massive goods thrown out—unlike previous days’ high prices with sales limits, now it wasn’t flat selling, it was panic selling, fire selling: as long as money given, take whatever wanted, all carted away.
Citizens excitedly hit streets for massive shopping.
Judicial Department.
Liu Xiaolou back from patrol, came in to report, face beaming with smiles, and handed Gu Yansheng a pack of food.
“Division Chief, long lines now on the market, massive citizens out grabbing purchases: rice, sugar, chocolate. Except fewer fresh vegetables, everything else abundant. Their expressions—truly thrilled to death, cheap and plentiful.
Here, I bought two chocolates, please have one. As a member of SH city, on behalf of SH citizens, thanking you for racking your brains over Shanghai’s prices.”
Chocolate now was imported luxury good—however cheap, still expensive, not for ordinary people to afford.
Gu Yansheng peeled off outer wrapper, popped in mouth to taste.
“Tastes good. Buy a few more, I’ll reimburse tomorrow. After buying, get off work and go street strolling—streets should be lively today.”
Since market supply restored, Gu Yansheng grabbed coat and left—time to go to No. 76 for dividing spoils; his 6000 bucks principal was still in there.
Jisiweier Road No. 76.
Last time Gu Yansheng came, gatekeeper blocked entry, even sneakily teased by gatekeeper.
This time, just honked horn, showed face, gatekeeper bowed with smile and opened gate wide. And just parked car, Li Shiqun already notified, personally came out to welcome.
Never mind Gu Yansheng just Deputy Division Chief—bottom line, chief official of a real power department, and red man at consulate. Li Shiqun had to give this face.
“Director Gu honors us with visit, our humble abode shines.”
“Western-style villa still humble? Director Li, you’re too modest.”
Current No. 76 undergoing major construction, looked like expanding quite some turf.
“Come, upstairs please.”
Gu Yansheng followed Li Shiqun into second floor reception room.
Li Shiqun also chatty, mouth full of praise: “I hear Judicial Department now handling foreigners smuggling. Britain and America folks rampant for long; their doings extremely thorny for Japan to handle. But seeing today’s situation, Director Gu already has victory in grip.
Congratulations—solving such difficult problem, Brother Gu, you’ve earned major merit before Japanese. That ‘deputy’ in Deputy Division Chief removable any day.”
Gu Yansheng smiled, “Whether my ‘deputy’ stays or goes makes no difference. Unlike you, Director Li—though extra ‘deputy’, in terms of ability handling Shanghai matters today, few match Deputy Director Li’s ability.
My success also thanks to your Agent Headquarters’ help—only by finding Brother Sibao did it work. Otherwise just sealing warehouses, even scattering all Judicial Department staff, effect probably not one ten-thousandth of your Agent Headquarters making a move.
So came specially to thank.”
No beating around bush with smart people—using Wu Sibao to strike Fu Xiao’an, even if Gu Yansheng didn’t say, Li Shiqun likely guessed. Him saying it showed sincerity.
“Sigh.” Li Shiqun waved hand, “All for Shanghai’s peace and stability—what thanks? Besides, he still gained. Clearly Director Gu had chance to get rich, and brought along rotten wood Wu Sibao.
Ah, Jiqing you’re here. Director Gu, let me introduce—my wife, Ye Jiqing.”
Ye Jiqing in qipao walked in from door, smiling and nodding at Gu Yansheng.
