America 1919-Chapter 854 - 292, The complete look of Atlantic City_2
Chapter 854: 292, The complete look of Atlantic City_2
“Wait a moment, wait a moment!”
Paul Warburg finally couldn’t help but interrupt Donnie’s words.
“Mr. Block, do you know how much investment is needed to realize your plans? It will take at least hundreds of millions of US Dollars, to achieve what you aspire for!”
Donnie nodded, saying as a matter of course: “Of course I’m aware of that, which is exactly why this is not something I can do on my own. It requires the involvement of more consortia to be possible. Therefore, the claims that I have been monopolizing Atlantic City’s business environment are incorrect. I have never been against someone investing in Atlantic City.
But what I oppose are those without the capability who insist on breaking in. They won’t bring any benefits to the business environment of Atlantic City. Instead, they’ll only bring more vicious competition.
And ruin the investment atmosphere here.
What Atlantic City needs is the participation of capable consortia, consortia that are truly willing to invest in Atlantic City wholeheartedly.
For such consortia, we in Atlantic City are never unreasonably demanding!”
The embarrassment on Paul Warburg’s face was fleeting, and with a smile, he said, “It seems that those people have misunderstood your intentions, Mr. Block!”
Donnie nodded and said: “Indeed, they have!”
Paul Warburg: “…”
“So Mr. Block, do you mean to say our Kuhn, Loeb & Co. consortium meets the qualifications you have in mind for investing in Atlantic City?”
“Actually, the Kuhn, Loeb & Co. consortium isn’t suitable!” Donnie shook his head, negating Paul Warburg’s confidence, “To put it bluntly, the Kuhn, Loeb & Co. consortium is on the decline. After Harding’s administration took over and refuted many policies of Woodrow Johnson, it indirectly resulted in the consortium receiving less support from the White House and Congress.
Also, the Kuhn, Loeb & Co. consortium made some wrong choices during the war, leading to a decline in their reputation among the American public, all of which could cause the consortium to continue to sink in the future.
Therefore, I don’t believe the Kuhn, Loeb & Co. consortium is suitable for investing in Atlantic City!”
Donnie’s words left Paul Warburg embarrassed once more.
“Then what do you imply, Mr. Block?”
Donnie explained: “But there’s no choice; amongst the many consortia across the nation, Kuhn, Loeb & Co. does have advantages that I absolutely need, which is why I have invited you here today, Mr. Warburg!”
Afterward, Donnie went on to elucidate the advantages of the Kuhn, Loeb & Co. consortium to Paul Warburg.
“Firstly, Kuhn, Loeb & Co. controls a large amount of steel plants and railway companies in Philadelphia, and even in the whole of Pennsylvania, especially Bethlehem Steel whose steel plates are most suited for use in ship decking, and Philadelphia’s workers are one of the most important tourist groups for Atlantic City.
Secondly, there’s your status in the Federal Reserve and the position of the Kuhn, Loeb & Co. in New York’s financial industry.
Venus Bank has been established now, but it lacks the influence needed to earn the trust of more American citizens.
Atlantic City currently has Morgan, Mellon, and Breton banks, and even though its citizens trust me more, they still prefer to deposit their savings with Morgan and Mellon rather than Breton Bank.
It’s even more so for tourists who come to Atlantic City.
Therefore, I need a strong institution to endorse Venus Bank and Breton Bank, and without a doubt, the Federal Reserve is the best choice!”
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Paul Warburg nodded and seriously said, “Mr. Block, I am grateful for your frankness, but there are things I need to clarify. You should know that joining the Federal Reserve is not an easy task. It requires the unanimous approval of the Federal Advisory Council, the Board of Governors of the Federal Reserve, the chairmen of the 12 Federal Reserve Banks, as well as the White House and Congress, before Venus Bank’s participation is allowed.
I’m aware of your relationship with Morgan and Rockefeller, Mr. Block. Given such relations, why have you not sought their help instead and are looking to collaborate with Kuhn, Loeb & Co.?”
This was where Paul Warburg’s doubt laid most heavily.
He knew Donnie’s goal was definitely to become a shareholder in the Federal Reserve, but Donnie’s first choice should have been the help of Morgan or Rockefeller with whom he had more cooperation. Why would he come to him?
Donnie said with ease: “It’s simple, even with their help, in the end, it would come down to your participation, Mr. Warburg. Besides, while I am in a partnership with them, our cooperation is business-oriented.
If I seek their help, it means I would have to pay even more, and as both Morgan and Rockefeller are at the peak of their power, consortia of such magnitude naturally have larger appetites.
Even if I’m willing to pay, in the end, it will still require cooperation with Kuhn, Loeb & Co., and at that point, Mr. Warburg, you’d definitely still need to enter Atlantic City.
Since the result is the same, why shouldn’t I just directly collaborate with Kuhn, Loeb & Co.?”
Paul Warburg nodded, agreeing with Donnie’s analysis.
If it were him in Donnie’s shoes, he would have done the same!
However, this did not mean Paul Warburg wanted Venus Bank to join the Federal Reserve.
Although the Federal Reserve hasn’t reached its pinnacle in terms of influence, its central bank characteristics have already manifested. One could say that entering the Federal Reserve is tantamount to truly standing at the summit of power in the United States.
