To be honest, if there were signs of capital infiltration from the same nationality behind the scenes, regardless of the capital's intentions, William Sheffield couldn't help but feel uneasy. Especially since Texas itself was adjacent to Mexico. With Mexico just a stone's throw away, he, as a neighbor, hoped for stability above all else.
Instability was acceptable to a certain extent, but it shouldn't devolve into a state where it would be infested with drug traffickers for generations to come. Such a situation would undoubtedly impact Texas. Wouldn't it be better if Mexico bordered the northern states instead? William Sheffield wasn't opposed to a source of chaos affecting others, but the key was not to affect oneself.
In the late 19th century, Mexico was chaotic, but it wasn't as dire as the future portrayed it to be. In the future, Mexico's internal situation wasn't just a showdown between drug traffickers and the government; that would be an insult to Mexico's private militias. They were, in fact, a group of true warlords, raising funds through drug trafficking, essentially a quasi-civil war, a watered-down version of a republic.
The United States didn't subdue Mexico through force until much later. Present-day Mexico had almost been reduced to a wasteland by a war with the United States. However, Mexico's pride remained, and the time it took for that pride to be crushed was almost equivalent to the timeline of the Cold War becoming clear.
When Reagan was the President of the United States, he launched a decisive counterattack against the Soviet Union, and the cost was more than just a lot of bloodshed. Mexico, as a neighboring country right next to the United States, became a primary target for releasing the pressure of capitalist forces.
So, even before the Soviet Union recognized neoliberal economics, neoliberal economic principles had already been introduced to Mexico. In order to pay off their debts, the Mexicans initiated large-scale privatization of industry and agriculture. They attracted foreign investment in exchange for funds to repay their debts. At the same time, they eliminated protective tariffs and agricultural credit subsidies for most agricultural products, aiming to join the North American Free Trade Agreement (NAFTA) and expand their exports to the U.S. and Canadian consumer markets.
Subsequently, the United States used its economic prowess, far superior to Mexico's, to see what effect the treatment applied to Mexico would have if used on the Soviet Union. The results were quite surprising.
What happened a century later had nothing to do with Mexico's current debt, but it could serve as a reference. Even Sheffield didn't trust the financial capital's principles. In case Morgan did get hold of Mexico, it seemed that the Joint Company would be in a passive position.
"By the side of one's own bed, one does not allow others to sleep soundly!" Sheffield coldly dropped a remark.
"William, what did you say?" A big question mark appeared over Little Rockefeller's head. What language was the other person speaking just now?
"It's an Eastern proverb. I myself hold a Bachelor's degree in history from the University of Texas at Austin," Sheffield said as he fiddled with his fingers, but his mind was already praising himself. Self-praise had become a habit for Sheffield.
After self-praise came naturally to thought. Was it worth preempting Morgan before he acted? If it weren't for Little Rockefeller's connections in the financial industry, Sheffield wouldn't have known about this...
Coming out of his thoughts, Sheffield blinked at Little Rockefeller, flashed a smile, and asked, "My dear partner, why did you tell me this? What's your motive? Did you come all this way to remind me to be wary of Morgan? Should I thank you?"
Why did Little Rockefeller voluntarily bring up this matter, especially when he was so focused on Cuba? Was it out of friendship for his business partner? Who would believe that excuse?
"It's naturally a counterattack against the financiers entering the industry!" Little Rockefeller didn't hide his intentions, and after being questioned by Sheffield, he didn't offer any further explanations. "As financial bankers entering the industry, the Rockefeller family believes that the Morgans' reach has become a bit too long. In fact, this is a consensus among many companies. We hoped that the actions of the Morgans could be stopped, but in the current domestic environment, our Rockefeller family doesn't dare to act rashly. Almost every day, Standard Oil is battling the anti-trust laws, and our goals are already too ambitious. Because of our partnership with the Joint Company, part of the pressure to counteract the anti-trust laws has now shifted to the Joint Company."
"Should I thank you for the reminder?" Sheffield interrupted with an unfriendly expression. However, in this matter, one party was willing to act, and the other was willing to bear the risks together. There was no question of who was taking advantage of whom.
"Thanks for that; there's no need to mention it," Little Rockefeller waved his hand. To have an ally like the Joint Company in the fight against the anti-trust laws was beneficial, and he had also done his best to alert the Joint Company about the actions of the Morgan father and son. Given the domestic environment's focus on anti-trust laws, Standard Oil naturally couldn't act recklessly.
William Sheffield understood this point as well. The next major topic was, "In Mexico, Standard Oil isn't threatened by anti-trust laws. Directly confronting Morgan and his son in the steel industry would have a significant impact. Furthermore, as you mentioned, William, the steel industry has giants like Carnegie. It won't be a problem in the short term. So, Standard Oil and the Joint Company can make some moves domestically, taking a certain share of the steel industry without attracting the attention of federal anti-monopoly investigators. Then, invest the majority of the funds in Mexico, where Standard Oil won't face such restrictions."
"Brilliant! I have to admire your tactics, Uncle Rockefeller," Sheffield remarked, acknowledging Little Rockefeller's clever strategy.
"Wait a minute," Little Rockefeller paused suddenly, as if realizing something, "I misspoke. My father and Mrs. Anna are contemporaries."
"My apologies, I understand," Sheffield thought to himself. He hadn't made a mistake in addressing them. Although both John D. Rockefeller and J.P. Morgan were contemporaries, they didn't know each other. Sheffield had a close relationship with Edith Rockefeller, so there was no mistake in his choice of address.
Little Rockefeller belatedly realized that Sheffield had already extracted the strategy of misdirection from him, not out of his own initiative, but because his father had instructed him.
The implication here was that domestically, Standard Oil had already found it challenging to maintain its dominance in the petroleum sector due to the threat of anti-trust laws. However, as leaders in industrial capital, Standard Oil possessed considerable financial power, albeit not as strong as the Morgan father and son. It was sufficient for general operations.
The issue of Mexico's debt could be the battleground for countering the Morgan father and son's entry into industrial entities.
"What do you think about the situation in Mexico? You should have a better understanding than I do," Little Rockefeller asked with a humble tone. Any financing required profitability, and even if Standard Oil was a giant in the industry, it couldn't afford to throw money away in opposition to the Morgan father and son if the prospects weren't favorable.
Considering Morgan's long-standing sharpness in such matters, Little Rockefeller thought it wasn't a problem, and it could be a foreign challenge without triggering anti-trust laws. However, he was somewhat afraid that it might be a diversion. That's why he sought the opinion of William Sheffield, who had experience dealing with Mexicans as neighbors.
"It should be doable," Sheffield thought for a moment and replied, "Mexico, although defeated by the United States, still has development potential. At this stage, it hasn't come close to its maximum potential. Additionally, when taking on debt, there must be certain assets as collateral. Even the Joint Company, which you consider to have zero financial reserves, is aware of this basic operation."
Sheffield and Little Rockefeller exchanged glances and simultaneously said, "Let's go with this plan." Since the Morgan father and son were using the steel industry as their entry point into industrial entities, Standard Oil and the Joint Company would seize the opportunity in Mexico.
Once they undertook this debt, it definitely wasn't something that two companies could handle through cooperation alone. In fact, most of the money Morgan was using wasn't his but belonged to other allies, even ordinary citizens who saw potential profits.
Regarding the Mexican bonds, this matter was even more important to Sheffield. The Joint Company's headquarters were in Texas, and even though he had transferred some of the newly expanded industries to California, Texas wouldn't be abandoned. This joint counterattack against the Morgan father and son in their field of expertise required careful planning. It wasn't the ongoing Spanish-American War, but it was still a certainty that they would win.
Unlike Morgan, who believed strongly in the credit of the financial industry, achieving success in a field where the Joint Company wasn't skilled, even with the assistance of Standard Oil, wouldn't be easy. Furthermore, the financial industry itself consisted mostly of a few authorities and a majority of fraudsters. There were too many fraudsters, and there weren't enough fools to go around.
In order to find enough takers for this bond, they could utilize the Joint Company's appeal in the South. However, it would be better not to use that appeal. Once they took over the Mexican bonds, how could they justify it?
They would definitely have to announce it, even though there was a risk that it might fall into the hands of Standard Oil and the Joint Company. All the losses would have to be borne by the two companies, and the negative impact might lead to questions about the two young captains of industry. Sheffield was more comfortable with this aspect; most of his industries were not publicly traded. However, the most important industry for the Rockefeller family was Standard Oil, which was not part of the Joint Company.
So, even if Sheffield suggested that both companies could handle Mexico's bonds entirely and assume all profits or losses themselves, Little Rockefeller wouldn't agree. The two companies' models were fundamentally different, and Little Rockefeller didn't have the same degree of freedom as Sheffield.
"Even if you think the prospects are good, we should find citizens to take on the bonds," Little Rockefeller vigorously shook his head, indicating that Sheffield's approach wasn't financial but rather gambling.
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