Chapter 200: 199, Republic Of China Karaoke, Gold Surges 75% Overnight
The conversation inside the Royal Palace bar continued.
Everyone had no response to Fang Wen’s proposal for the Gold Company, as they were not familiar with each other and could not yet establish the premise for cooperation.
Also, although Taishan Airlines was the organizer of the Flying Club, in terms of strength, they were not on the same level as these people, and they had concerns.
Fang Wen had anticipated this and did not continue the topic of the Gold Company; this setup needed to proceed slowly.
He clapped his hands.
The lights in the palace became soft, and Bai Zeshan, who had not yet returned to Europe to continue his studies, was operating the equipment.
This was a music system that Fang Wen had specially prepared for the Flying Club.
Siemens tube amplifier equipment, vinyl record player, and some output equipment added by Bai Zeshan.
Tube amplifier refers to a vacuum tube audio amplifier, a specialized audio system of this era, equipment for advanced music enthusiasts and used in ballrooms and cinemas.
（Audio equipment from the Republic of China era, vacuum tube amplifier.）
This kind of audio has a unique sound effect, so Republic of China songs have a special flavor.
But Fang Wen was not having singers perform in the palace bar.
He made some changes with the mindset of a future person.
In this private environment, why still have singers perform? Why not sing yourselves?
Like the future KTV mode.
This was not hard to achieve; he had Bai Zeshan make some modifications, creating the first Republic of China karaoke.
It was just very expensive, perfectly suited for private entertainment activities in such high-end clubs.
A waiter walked over holding a booklet, waiting.
What was this about?
The Flying Club members were very curious.
“Anyone want to sing a song?”
Fang Wen asked with a smile, standing up to demonstrate. “I specially had someone make this setup and record the discs. If you want to sing, select a song from them, and you can start.”
For a better demonstration, Fang Wen picked a simple English song, and Bai Zeshan adjusted the stylus on the vinyl record player to play the corresponding accompaniment.
Under the song’s accompaniment, Fang Wen held the microphone and sang the song.
This was too much fun.
Normally, these people maintained their dignified status in their own territories and acted with great decorum, but here, with no one watching, they no longer needed to keep up their disguises, and their entertainment spirits immediately came alive.
The Raja of Sarawak was the first to try; he selected for a long time and chose an English folk song, then sang along with the accompaniment.
Listening to a song and singing it yourself felt completely different, especially when you had an audience while singing.
Not to mention singing in a state of unrestrained relaxation.
The Raja of Sarawak happily finished singing; though a bit off-key, the applause gave him a great sense of accomplishment, and he smiled and returned the gesture, then raised the microphone.
“This is the most fun game I’ve ever encountered. I suggest everyone give it a try; don’t worry about performing poorly. Like me, I’m just happy doing it; no need to care about others’ opinions.”
He indeed set a good example; even those tone-deaf could take the stage, and with the backing track, they even sounded decent.
Immediately after, someone else took the stage and showed off their singing.
The atmosphere livened up accordingly; KTV was indeed the best way to energize the mood.
Watching all this, Fang Wen grew even more confident in his ability to carry this setup forward.
The first gathering of the Flying Club’s inaugural members continued joyfully.
Staying in the Royal Palace, with delicacies, fine wine, diverse entertainment activities, and flight training during the period.
To make the Flying Club live up to its name, Fang Wen equipped two low-speed seaplanes.
This aircraft had a speed of 150 kilometers per hour and took off and landed on the water surface.
For piloting, the requirements were very low and easy to get the hang of.
Under his guidance, several club members willing to learn flying all tried piloting aircraft into the sky.
This series of preparations further brought Fang Wen closer to the club members; he was ready to lay his cards on the table.
January 18th night, still in the palace bar of the Royal Palace.
This time only six people: Fang Wen, the Raja of Sarawak, King of Afghanistan, Nanyang Ye family and Liu family, Indonesian local king Sao Olad.
Fang Wen got straight to the point.
“Today I want to discuss the Gold Company with you all. My news comes from Europe and the US mainland; the US Congress will pass the Gold Reserve Act, and the Federal Reserve’s gold acquisition price will rise from 20 US dollars per ounce to over 30 US dollars. If we can acquire a large amount of gold before the end of the month, we can earn at least 30% profit through this time difference.”
So that’s it; the participants in the private talk were tempted.
They were richer and more powerful than Fang Wen, but lacked his information advantage; combining forces would be a win-win.
The Ye family head looked at Fang Wen and asked: “You’re telling us this now; aren’t you afraid we’ll ditch you and do it alone?”
“If you do that, I just lose partners, which doesn’t matter much to me. But if you’re willing to establish the Gold Company together, we’ll be friends, and there might be more games to play together in the future.”
Fang Wen smiled, stood up, and raised his glass.
“Those willing to drink this cup with me will be shareholders of the Gold Company. Those unwilling remain Flying Club members, but cannot join the following discussion; please go to the karaoke hall next door for entertainment.”
He waited; those willing to drink with him at this moment would be allies of Taishan Airlines, not just for the Gold Company, but potentially more cooperation in the future.
The Liu family head and Indonesian local king Sao Olad hesitated and stood up to leave.
The remaining three raised their glasses.
“Alright, we’re in now; tell us your plan.” The Ye family head asked, and the Raja of Sarawak and King of Afghanistan were also curious about Fang Wen’s arrangements.
Fang Wen recited his long-prepared draft.
“Mr. Ye’s words reminded me; with the Federal Reserve acquiring gold at such high prices in such large quantities, it’s definitely not just for US economic recovery. They want to control the world’s gold price.”
Ye family head Ye Honglin nodded, and the Raja of Sarawak and King of Afghanistan agreed with this judgment.
At their level, they could see many issues clearly.
But they could never have the foresight of a future person.
Fang Wen continued: “If it’s just controlling the gold price, I think that’s not enough; their risk is still too great. Related to gold is not only the US dollar, but also something else: silver. I think it won’t be long before the Americans target silver.”
Ye Honglin showed a surprised expression; following Fang Wen’s line of thinking, he immediately connected more dots.
“Yes. The US is the world’s largest silver producer and exporter. If silver surges, they’ll definitely benefit.”
“Not just that.” Fang Wen continued: “The silver the US exports is far from offsetting the Federal Reserve’s gold acquisitions; their target is bigger—China.”
Ye Honglin, as the head of a Nanyang Chinese business family, immediately understood.
He exclaimed:
“The Americans are targeting China!”
“Yes.” Fang Wen clapped and said loudly: “Manager Liu, you can come out now. Tell our partners about the Americans’ scheme.”
Liu the accountant entered the room, slightly bowed in greeting, and said: “China has used silver as a payment method since the Ming and Qing dynasties, and in the Republic of China, it’s still the case. Currently, silver dollars, silver taels, Spanish silver coins, Mexican silver coins can all serve as payment methods. Thus, our Republic of China uses silver, not banknotes. Last March, the National Government issued the 《Silver Standard Coin Minting Regulations》 to unify the entire currency with silver dollars, but with little effect.”
As Liu the accountant spoke, Fang Wen translated for the two local kings.
During the Great Depression, with deflation, gold prices were firm, while silver was in a price slump.
Thus, China’s purchasing power had always been poor.
Meanwhile, China had always been a net silver importer, with large domestic silver reserves.
The Americans had their eyes on China’s silver reserves and wanted to make a big move.
Soon, silver would surge along with gold.
Causing silver to flow back to the US.
After this discussion, the three new Gold Company shareholders finally understood Fang Wen’s plan.
Gold’s price surge was hard to position for; the Gold Company he established was for silver.
He wanted to borrow the power of the three families to collect and hoard silver, then sell after the silver price rise.
The three had no objections and agreed to the cooperation.
They also agreed that share allocation would be determined by the amount of silver each provided.
With the negotiations concluded, the cooperation plan was set; the Raja of Sarawak and King of Afghanistan went to the karaoke hall next door to continue playing karaoke.
After they left, Fang Wen said: “Father-in-law, you can come out.”
Father-in-law Kuang Shanming emerged from the darkroom, smiling as he sat next to Ye Honglin; the two had known each other for a long time, and this setup succeeded thanks to Ye Honglin’s cooperation.
The three raised glasses to celebrate the agreement, but Ye Honglin was somewhat worried.
“The Americans have big ambitions; if they acquire silver at high prices, our silver will flow out massively, collapsing the silver standard system. Without enough silver, they’ll have to issue paper currency, but without silver backing, the issued currency will depreciate continuously. After China’s domestic assets depreciate sharply, the Americans will buy up assets cheaply; I’ve seen what they did in the Weimar Republic.”
Kuang Shanming sighed: “Old Ye, you and I have some personal wealth, but compared to China, it’s just a hair on a cow; national finance is handled by capable people, no need for us to worry.”
He looked at Fang Wen: “Right, good son-in-law?”
Fang Wen showed a trace of confusion; he knew the future National Government massively printed legal tender and Gold Yuan, which depreciated sharply—could China really be harvested by the Americans in the future?
But that held no meaning for him; not in the position, not fit to plan—like the last newspaper ad, who would believe it?
“Right, not for us to worry about.”
He shook off his thoughts, downed the wine in his cup, and headed to the karaoke hall with father-in-law Kuang Shanming and Ye Honglin.
The first Taishan Flying Club was successfully held.
Members could stay in the club for 3 months with their membership.
Of course, it couldn’t be free forever; this was essentially a high-end resort, and Taishan Airlines was no charity.
Membership fee: 50,000 US dollars per year, with a personally named palace and ability to bring two partners.
All members paid the fees; this expense was negligible for them.
They had a great time and proactively mentioned introducing more friends to join the Taishan Flying Club.
Meanwhile, the three Gold Company shareholders formally cooperated with Taishan Airlines.
The newly established Gold Company was set up in Switzerland, Europe; silver was transported from Kabul and Sarawak via Taishan Airlines aircraft to Europe and stored in Swiss silver vaults.
Subsequent operations were also arranged.
Once the US announced high-price silver acquisitions, the Swiss silver vaults would ship via sea to the US for physical delivery to the Federal Reserve or direct offshore delivery with US banks.
Time flew by; before they knew it, it was January 31st.
That day, late night, 9 p.m.
Nighttime Shanghai suddenly bustled.
A piece of news quietly spread.
Reportedly: New US President Roosevelt had just issued an announcement: “The dollar’s value has fallen to 59.6 cents, and the government’s gold acquisition price is set at 35 US dollars per ounce.”
The announcement was released during US daytime; Shanghai received the news at night.
The first to receive the telegram information was the intelligence dealer.
Due to timeliness, he spread the information for free, causing a huge uproar in Shanghai.
After managers, compradors, bank staff, businessmen, and speculators in Shili Yangchang learned of this major news, they went crazy.
Gold had actually risen to 35 dollars per ounce!
Note that at the Shanghai Gold Exchange, the gold price was still under 21 US dollars per ounce.
This meant gold rose 75% overnight, while the dollar depreciated 40%.
Overnight, gold holders became rich, while those with large dollar holdings saw their wealth shrink by 40%.
So much joy and so much sorrow.
Meanwhile, at Shanghai Airport outside the urban area, Fang Wen’s small circle was holding a celebration.
At the Fang Residence, Pan Jiafeng, Shao Sishen, Howard, Shopkeeper Liu, and Sun Debiao from Shanghai all came.
But the food was quite special.
Fang Wen introduced: “This is something I brought from Chongqing, called hot pot, a local specialty food. The way to eat it is to put the food in, boil at high temperature, and it’s ready.”
Hot pot hadn’t yet left Sichuan in this era, so everyone was very curious.
A special yin-yang copper pot: one side milky white big bone clear soup, the other red oil spicy soup base, with charcoal fire burning below.
The table was filled with various ingredients; pick what you want and put it into the boiling soup base.
This food warmed the body, quite suitable for late January in Shanghai.
While eating the celebration banquet, Fang Wen arranged the follow-up.
“Manager Liu, cash out the gold purchased with the company’s own funds. Tomorrow go to the city and cash it into silver dollars and US dollars as soon as possible; our daily operating funds are tight.”
“Yes, General Manager; I’ll go tomorrow.” Shopkeeper Liu’s face was flushed, whether from the spicy soup base or excitement.
The next day, Shopkeeper Liu took people to the urban area.
The urban area was chaotic: some laughing, some with disheveled hair acting crazy.
Among them were no shortage of usually arrogant foreigners.
For countrymen who liked hoarding gold, today was a great joy, but the concession’s foreigners preferred banknotes, and this sudden US action had badly burned them.
Witnessing this panorama of finance along the way, Shopkeeper Liu was deeply moved.
When the car passed the Shanghai Gold Exchange, the madness there opened Shopkeeper Liu’s eyes even wider.
Overnight, gold rose 70%, and the Gold Exchange gates were nearly burst open.
Some brought gold to trade, others were acquiring gold in large quantities.
But Shopkeeper Liu’s destination today was not there; the car continued and stopped outside HSBC Bank.
Power outage at home today, typing outside, couldn’t focus, so only one chapter now. Sorry, one update today.
