Chapter 10

"However, Scrooge, I didn't expect you to grow so quickly. So, all this money is still in the bank as fixed deposits. If we withdraw it now, there won't be as much. Well, this money can't be touched for another two years. You can use these two years to familiarize yourself with how to do business... Well, starting tomorrow, you will follow me and take charge of the accounts first. Carola, you should also learn, after all, this shop will eventually be yours." Old Joseph said this.

Two years from now will be 1857. In his previous life, Scrooge had read economics as a second major while in college. During his elective course in economic history, he learned that the world's first global economic crisis erupted in 1857, and this crisis was the first to originate from the United States rather than from the then world leader, Britain. During this crisis, 62 out of 63 banks in New York stopped payments, and the discount rate even exceeded 60%. Joseph's money would not be available until 1857, which was not good news. So, Scrooge quickly asked:

"Father, I want to know when this money will mature."

"What's wrong? Can't wait?" Old Joseph laughed, "My son, it's good to have lofty ambitions, but you still need to be down-to-earth. Follow me for two years first; it won't delay you."

Following Old Joseph for two years and starting a business after 1857 wouldn't be too late. Catching the wealth train of the Civil War would definitely not be a problem. In fact, Rockefeller didn't start his business until 1858. But what Scrooge was most worried about now was the safety of the deposit. So, he had to ask clearly, but he couldn't directly tell his father that a global economic crisis would occur in 1857, and many banks would go bankrupt. In the current prosperity, no one would believe it. So, he had to change his approach. Scrooge thought for a moment and said:

"Father, I just want to know the time so I can make arrangements in advance."

"You're thinking quite far ahead." Joseph said, "Alright, I'll tell you. This money matures in January."

"January?" Scrooge let out a long breath. Although he couldn't remember exactly when the 1857 economic crisis started, he vaguely remembered that the financial system issues were triggered in the fall of that year. The banks stopped payments and began to go bankrupt in large numbers in October.

Generally, before an economic crisis, there is a period of economic frenzy. The 1857 economic crisis was no exception. In the period leading up to it, a large amount of European hot money flowed into the American railway industry, causing the American railway to develop wildly and disorderly, with the length of railway built even exceeding the total of all other countries in the same period. The U.S. government, which was controlled by the Democratic Party based in the South, continuously reduced import tariffs to ensure the interests of Southern plantations and to ensure that Southern agricultural products could enter Europe with low taxes, in exchange for European countries opening their markets to American agricultural products. Although the door to the American market for European agricultural products was indeed opened, the door to the American market for industrial products was also opened to Europe. At that time, American industry was far from being able to compete with Europe, especially Britain. Therefore, although theoretically, the booming American railway industry should have driven the development of its metallurgical industry, in reality, the production of pig iron in the United States stagnated for a long time, and the growth rate of the cotton textile industry was also very slow. Meanwhile, the import of iron rails, pig iron, locomotives, cotton cloth, and other British industrial products grew rapidly. British products flooded the American market and crushed American manufacturing, ultimately leading to the outbreak of the crisis. That year, American agriculture was also unlucky. The unprecedented bumper harvest of American wheat coincided with the historic bumper harvest of Russian wheat, resulting in a sharp drop in the price of American wheat, and many grain companies went bankrupt.

With the outbreak of the crisis, a large number of American banks, financial companies, and industrial enterprises went bankrupt. In 1857 alone, nearly 5,000 companies went bankrupt. Grain production was in excess, grain prices and grain exports fell, and the intense competition from British industrial products deepened the American economic crisis. In turn, the British economy was also hit by the American crisis, and the banks, railways, and commercial companies that had invested in the United States went bankrupt, causing British investors' securities to sharply depreciate. The sharp contraction of the American market also dealt a severe blow to British companies that relied on the American market.

Economics was not Scrooge's main focus in his previous life, so he only vaguely remembered these general things. As for the details, he knew nothing. However, this big trend was enough to help Scrooge make money. For example, the grain market in 1857 was a great opportunity. Scrooge knew that a few years earlier, in 1851, the world's first grain futures market had appeared in Chicago. Due to the stable grain prices in previous years, the price of grain futures had been high. However, the global bumper harvest would eventually drive the price down to an unimaginably low point. Seizing this opportunity to short the grain market could earn a large sum of money.

"Rockefeller started by trading grain, right? By 1857, he should have some savings. At that time, I can team up with him for a big deal." Scrooge thought.

Scrooge knew that shorting futures was a risky business, and luck played a significant role. Even knowing the big picture, one still needed luck to make money smoothly. As the future richest man in America and the world, Rockefeller's luck should be very strong. Moreover, the company Rockefeller worked for also traded grain, and he would become very familiar with the grain market over the next two years. Partnering with such a person would definitely be a good move.

John Rockefeller, who was unaware that Scrooge was planning something, was already exhausted after a day's work. Today, he had completed the accounts and was tasked with negotiating the rental of a ship with a client. After finishing his work, the frugal Rockefeller didn't even take a public carriage but walked through the entire city to get home. Now, the exhausted Rockefeller hastily finished his dinner, fell onto the bed, and almost fell asleep without even taking off his shoes—before becoming a great vampire, one must first learn to suck one's own blood. His mother, Almira, gently took off his shoes and covered him with a blanket. Then she walked out of his room. As she was about to leave, she heard John Rockefeller sneeze, turn over, and throw the blanket aside, mumbling something indistinctly.

Almira smiled and quietly went over to cover her son with the blanket again.

...

"Sir, you mean you plan to end my probationary period early and hire me?" In Tattle's office, John Rockefeller was trying to suppress his joy and speak as calmly as possible to Tattle.

"Yes, Mr. Rockefeller, we have been observing your work over the past month, and we can see that although your work is far from perfect, as a newcomer, you have performed very well. We are very optimistic about your future and hope that we can have a pleasant cooperation in the days to come." Tattle extended his hand to Rockefeller.

"Thank you, sir!" Rockefeller shook Tattle's hand, slightly excited, "I will work hard to prove that you have not made a mistake."

"John, we can only offer you a weekly salary of $5 for now. After all, you are still a newcomer, and if you earn too much at once, other employees might have thoughts. However, if your performance is satisfactory in the future, we will increase your salary." Tattle continued.

...