Mammon and Co Part 41

CHAPTER IX

THE SLUMP

The London evening papers that day were full of the extraordinary scenes that had taken place on the Stock Exchange. Before the opening of the market that morning Carmel had been eagerly inquired for, owing to the activity produced by the very extensive purchases on the day before, and an hour before mid-day news had been cabled from Australia that there was very strong support in the market there for the same, Mr. Richard Chava.s.se alone having purchased fifty thousand pounds' worth of the shares. Closely following on this came news from the mine itself: the last crushing had yielded five ounces to the ton, and a new, unsuspected reef had been struck. The combination of these causes led to one of the most remarkable rises in price ever known. The market (so said one correspondent) completely lost its head, and practically no business was done except by the mining brokers. The shares that day had started a little above thirty shillings, and by four o'clock they had reached the astounding figure of 5 12s. 6d. A well-known broker who had been interviewed on the subject said that never in the course of a long experience had he known anything like it. Sober, steady dealers, in his own words, went screaming, raving mad. A boom in Westralian gold, it is true, had long been expected, but nothing could account for this extraordinary demand. No doubt the fact that Mr. Alington had purchased largely the day before had prepared the way for it, for he was considered among mining operators the one certain man to follow.

But the sequel to this unparalleled rise was even more remarkable.

Buying, as had been stated, was much stimulated by the news of strong support in Australia (indeed, it was this that had been the signal for the rush); but about four o'clock, when the shares were at their highest, and some considerable realizations were being made, though the buying still went on, a sudden uneasiness was manifested. This was due to the fact that the telegram announcing the strong support in Australia was contradicted by another and later one, saying that the market in Carmel was absolutely inactive. Upon this, first a general distrust of the telegrams from the mine itself was manifested, and then literally in a few minutes a panic set in, as unaccountable as the previous rise; business came to a standstill, for in half an hour everyone was wanting to sell Carmel, and buyers could not be found. A few of the heaviest plungers cleared out, with thousands to their credit, but the majority of holders were caught. The shares became simply unnegotiable. The market closed on a scene of the wildest confusion, and when the Exchange was shut the street became impa.s.sable. To a late hour a mob of excited jobbers continued trying to sell, and just before going to press came a report that Mr. Alington, who had left town that day, but suddenly returned, was picking up all the shares he could lay hands on at a purely nominal figure. Settling-day, it would be remembered, occurred next week. A committee of the Stock Exchange was going to investigate the matter of the false telegram.

Kit and Jack had come down to Goring that day to join Toby and his wife there. Kit was steadily gaining strength, but this evening, being a little tired, she had gone to bed before dinner, and now, dinner being just over, Lily had left the others to see how she was. Neither Jack nor Toby was given to sitting over wine, and as soon as Lily went upstairs, they removed into the hall to smoke. The evening paper had just come in, and Jack took it up with some eagerness, for his stake in Carmel was a large one. He read through the account of what had taken place quite quietly, and leaned back in his chair thinking. Unlike Lady Haslemere, a few nights ago, he did not let his cigarette go out. At length he spoke.

"I expect I have gone smash, Toby," he said. He threw him over the paper. "Read the account of what happened to-day on the Stock Exchange,"

he added.

Toby did not reply, but took the paper.

"The only thing to be thankful for is that I didn't sell out just before the panic," remarked Jack.

Toby read on in silence till he had finished it.

"Why?" he asked.

"Because it would look as if I had known that the first telegram was false. What extraordinary nerve Alington must have! Do you see that he has been buying every share he can lay hands on?"

"I don't understand about the first telegram," said Toby.

"Nor do I, thank G.o.d!"

"Supposing it is a real smash, will you have lost much, Jack?"

"Eight thousand pounds--more than that, indeed, unless the price goes up again before settling-day, for I've only paid for about half my shares."

Toby was silent a moment, wondering how Jack had ever had eight thousand pounds to invest of late years. The latter understood the silence, and acknowledged the justice of his difficulty.

"I made three thousand over Carmel East and West," he explained. "That with my year's salary as director, makes eight. I invested it all, and bought more."

Toby looked up.

"Did that fellow give you five thousand a year as director?" he asked.

"That fellow did."

Toby whistled.

"A committee of the Stock Exchange is going to investigate the whole affair, it appears," he said. "Won't that be rather unpleasant if they get into salaries?"

"Exceedingly. Mind you don't let Kit know, Toby, until one has more certain news."

He took a turn up and down the room in silence.

"Extremely annoying," he said, with laudable moderation; "and I can't imagine what has happened, or who is responsible for the first telegram.

Alington cannot have caused it to be sent merely to make the market active, for it was certain to be contradicted."

A man came into the room with a telegram on a salver, and handed it to Jack.

"Reply paid, my lord," he said.

Jack turned it over in his hand without opening it, unable to make the effort. Then he suddenly tore it open, and unfolded the thin pink sheet. It was from Alington.

"Can you meet me to-morrow morning at my rooms, St. James's Street?" it ran.

He scribbled an affirmative, and gave it back to the man.

"I shall have to go up to-morrow," he said to Toby; "Alington wants me to meet him in London; I shall go, of course. What a blessing one is a gentleman, and doesn't scream and sweat! Now, not a word to anyone; it may not be as bad as it looks."

Jack started off early next morning, and drove straight to Alington's rooms. Sounds of piano-playing came from upstairs, and this somehow gave him a sense of relief. "People _in extremis_ do not play pianos," he said to himself, as he mounted the stairs. Alington got up as soon as he came in.

"I am glad you were able to come," he said; "it was expedient--necessary almost--that I should see you."

"What has happened?" asked Jack.

Mr. Alington took a telegram from his pocket, and handed it to him.

"The unexpected--it always does: this, in fact."

Jack took it and read:

"Chava.s.se left for England by P. and O. yesterday."

"You don't understand, my dear Conybeare, do you?" he said. "It is a very short story, and quite a little romance in its way."

And, in a few words, he told Jack the story of the burglary, Chava.s.se's confession, and his idea of using him as an independent operator in Australia.

"I make no doubt what has occurred," he said. "The man has drawn out the somewhat considerable balance I left at Melbourne for him to invest when ordered, and has taken it off with him. He has also, I expect, got hold of his own confession--a clever rogue."

"But the telegram?" asked Jack. "Who sent the telegram about the strong support in Australia?"

Mr. Alington opened his mild eyes to their widest.

"I, my dear fellow!" he said; "at least, of course I caused it to be sent. As usual, two days ago, I despatched one cipher telegram to this valet of mine, telling him to invest, and another to my manager telling him to wire, 'Strong support in Australia.' He did as I told him; Chava.s.se did not. That is all."

Jack was silent a moment, but it did not take him long to grasp the whole situation, for it was very simple.

"And what next?" he said.

Alington shrugged his shoulders.

"Unless the shares go up again before next settling-day, I shall almost certainly be bankrupt," he said.