CHAPTER XLIX.
THE RUN ON THE BANK.
Not long after the bank opened a number of people came in who askedfor gold in return for some bank-notes which they offered. This was anunusual circumstance. The people also were strangers. Potts wonderedwhat it could mean. There was no help for it, however. The gold was paidout, and Potts and his friends began to feel somewhat alarmed at thethought which now presented itself for the first time that their verylarge circulation of notes might be returned upon them. He communicatedthis fear to Clark.
"How much gold have you?"
"Very little."
"How much?"
"Thirty thousand."
"Phew!" said Clark, "and nearly two hundred thousand out in notes!"
Potts was silent.
"What'll you do if there is a run on the bank?"
"Oh, there won't be."
"Why not?"
"My credit is too good."
"Your credit won't be worth a rush if people know this."
While they talked persons kept dropping in. Most of the villagers andpeople of the neighborhood brought back the notes, demanding gold. Byabout twelve o'clock the influx was constant.
Potts began to feel alarmed. He went out, and tried to bully some of thevillagers. They did not seem to pay any attention to him, however. Pottswent back to his parlor discomfited, vowing vengeance against those whohad thus slighted him. The worst of these was the tailor, who brought innotes to the extent of a thousand pounds, and when Potts ordered him outand told him to wait, only laughed in his face.
"Haven't you got gold enough?" said the tailor, with a sneer. "Are youafraid of the bank? Well, old Potts, so am I."
At this there was a general laugh among the people.
The bank clerks did not at all sympathize with the bank. They were tooeager to pay out. Potts had to check them. He called them in his parlor,and ordered them to pay out more slowly. They all declared that theycouldn't.
The day dragged on till at last three o'clock came. Fifteen thousandpounds had been paid out. Potts fell into deep despondency. Clark hadremained throughout the whole morning.
"There's going to be a run on the bank!" said he. "It's only begun."
Potts's sole answer was a curse.
"What are you going to do?" he asked.
"You'll have to help me," replied Potts. "You've got something."
"I've got fifty thousand pounds in the Plymouth Bank."
"You'll have to let me have it."
Clark hesitated.
"I don't know," said he.
"D-n it, man, I'll give you any security you wish. I've got moresecurity than I know what to do with."
"Well," said Clark, "I don't know. There's a risk."
"I only want it for a few days. I'll send down stock to my London brokerand have it sold. It will give me hundreds of thousands--twice as muchas all the bank issue. Then I'll pay up these devils well, and thatd----d tailor worst of all. I swear I'll send it all down to-day, andhave every bit of it sold. If there's going to be a run, I'll be readyfor them."
"How much have you?"
"I'll send it all down--though I'm devilish sorry," continued Potts."How much? why, see here;" and he penciled down the following figures ona piece of paper, which he showed to Clark:
California Company.................L100,000 Mexican bonds ..................... 50,000 Guatemala do. ..................... 50,000 Venezuela do. ..................... 50,000 -------- L250,000
"What do you think of that, my boy?" said Potts.
"Well," returned Clark, cautiously, "I don't like them American names."
"Why," said Potts, "the stock is at a premium. I've been getting fromtwenty to twenty-five per cent. dividends. They'll sell for threehundred thousand nearly. I'll sell them all. I'll sell them all,"he cried. "I'll have gold enough to put a stop to this sort of thingforever."
"I thought you had some French and Russian bonds," said Clark.
"I gave those to that devil who had the--the papers, you know. Heconsented to take them, and I was very glad, for they paid less than theothers."
Clark was silent.
"Why, man, what are you thinking about? Don't you know that I'm good fortwo millions, what with my estate and my stock?"
"But you owe an infernal lot."
"And haven't I notes and other securities from every body?"
"Yes, from every body; but how can you get hold of them?"
"The first people of the county!"
"And as poor as rats."
"London merchants!"
"Who are they? How can you get back your money?"
"Smithers & Co. will let me have what I want."
"If Smithers & Co. knew the present state of affairs I rather think thatthey'd back down."
"Pooh! What! Back down from a man with my means! Nonsense! They know howrich I am, or they never would have begun. Come, don't be a fool. It'lltake three days to get gold for my stock, and if you don't help me thebank may stop before I get it. If you'll help me for three days I'll payyou well."
THE RUN ON THE BANK]
"How much will you give?"
"I'll give ten thousand pounds--there! I don't mind."
"Done. Give me your note for sixty thousand pounds, and I'll let youhave the fifty thousand for three days."
"All right. You've got me where my hair is short; but I don't mind. Whencan I have the money?"
"The day after to-morrow. I'll go to Plymouth now, get the moneyto-morrow, and you can use it the next day."
"All right; I'll send down John to London with the stock, and he'llbring up the gold at once."
Clark started off immediately for Plymouth, and not long after John wentaway to London. Potts remained to await the storm which he dreaded.
The next day came. The bank opened late on purpose. Potts put up anotice that it was to be closed that day at twelve, on account of theabsence of some of the directors.
At about eleven the crowd of people began to make their appearance asbefore. Their demands were somewhat larger than on the previous day.Before twelve ten thousand pounds had been paid. At twelve the bankwas shut in the faces of the clamorous people, in accordance with thenotice.
Strangers were there from all parts of the county. The village inn wascrowded, and a large number of carriages was outside. Potts began tolook forward to the next day with deep anxiety. Only five thousandpounds remained in the bank. One man had come with notes to the extentof five thousand, and had only been got rid of by the shutting of thebank. He left, vowing vengeance.
To Potts's immense relief Clark made his appearance early on thefollowing day. He had brought the money. Potts gave him his note forsixty thousand pounds, and the third day began.
By ten o'clock the doors were besieged by the largest crowd that hadever assembled in this quiet village. Another host of lookers-on hadcollected. When the doors were opened they poured in with a rush.
The demands on this third day were very large. The man with the fivethousand had fought his way to the counter first, and clamored to bepaid. The noise and confusion were overpowering. Every body was cursingthe bank or laughing at it. Each one felt doubtful about getting hispay. Potts tried to be dignified for a time. He ordered them to bequiet, and assured them that they would all be paid. His voice wasdrowned in the wild uproar. The clerks counted out the gold as rapidlyas possible, in spite of the remonstrances of Potts, who on threeoccasions called them all into the parlor, and threatened to dismissthem unless they counted more slowly. His threats were disregarded.They went back, and paid out as rapidly as before. The amounts requiredranged from five or ten pounds to thousands of pounds. At last, afterpaying out thousands, one man came up who had notes to the amount of tenthousand pounds. This was the largest demand that had yet been made. Itwas doubtful whether there was so large an amount left. Potts came outto see him. There was no help for it; he had to parley with the enemy.
The man had no objection. It was all the same to him. He went out withhis bundle of notes through the crowd, telling them that the bank couldnot pay him. This intelligence made the excitement still greater. Therewas a fierce rush to the counter. The clerks worked hard, and paid outwhat they could in spite of the hints and even the threats of Potts,till at length the bank clock struck the hour of three. It had been putforward twenty minutes, and there was a great riot among the people onthat account, but they could not do any thing. The bank was closed forthe day, and they had to depart.
Both Potts and Clark now waited eagerly for the return of John. Hewas expected before the next day. He ought to be in by midnight. Afterwaiting impatiently for hours they at length drove out to see if theycould find him.
About twelve miles from Brandon they met him at midnight with a team ofhorses and a number of men, all of whom were armed.
"Have you got it?"
"Yes," said John, "what there is of it."
"What do you mean by that?"
"I'm too tired to explain. Wait till we get home."
It was four o'clock in the morning before they reached the bank. Thegold was taken out and deposited in the vaults, and the three went up tothe Hall. They brought out brandy and refreshed themselves, after whichJohn remarked, in his usual laconic style,
"You've been and gone and done it."
"What?" asked Potts, somewhat puzzled.
"With your speculations in stocks."
"What about them?"
"Nothing," said John, "only they happen to be at a small discount."
"A discount?"
"Slightly."
Potts was silent.
"How much?" asked Clark.
"I have a statement here," said John. "When I got to London, I saw thebroker. He said that American stocks, particularly those which I held,had undergone a great depreciation. He assured me that it was onlytemporary, that the dividends which these stocks paid were enough toraise them in a short time, perhaps in a few weeks, and that it wasmadness to sell out now. He declared that it would ruin the credit ofthe Brandon Bank if it were known that we sold out at such a fearfulsacrifice, and advised me to raise the money at a less cost.
"Well, I could only think of Smithers & Co. I went to their office. Theywere all away. I saw one of the clerks who said they had gone to seeabout some Russian loan or other, so there was nothing to do but togo back to the broker. He assured me again that it was an unheard ofsacrifice; that these very stocks which I held had fallen terribly, heknew not how, and advised me to do any thing rather than make such asacrifice. But I could do nothing. Gold was what I wanted, and sinceSmithers & Co. were away this was the only way to get it."
"Well!" cried Potts, eagerly. "Did you get it?"
"You saw that I got it. I sold out at a cost that is next to ruin."
"What is it?"
"Well," said John, "I will give you the statement of the broker," and hedrew from his pocket a paper which he handed to the others. They lookedat it eagerly.
It was as follows:
100 shares California @ L1000 each. 65 per cent, discount........................L35,000 50 shares Mexican. 75 per cent, discount 12,500 50 shares Guatemala. 80 per cent, dis- count ................................ 10,000 50 shares Venezuela. 80 per cent discount 10,000 ------- L67,000
The faces of Potts and Clark grew black as night as they read this. Adeep execration burst from Potts. Clark leaned back in his chair.
"The bank's blown up!" said he.
"No, it ain't," rejoined Potts.
"Why not?"
"There's gold enough to pay all that's likely to be offered."
"How much more do you think will be offered?"
"Not much; it stands to reason."
"It stands to reason that every note which you've issued will be sentback to you. So I'll trouble you to give me my sixty thousand; and Iadvise you as a friend to hold on to the rest."
"Clark!" said Potts, "you're getting timider and timider. You ain't gotany more pluck these times than a kitten."
"It's a time when a man's got to be careful of his earnings," saidClark. "How much have you out in notes? You told me once you had outabout L180,000, perhaps more. Well, you've already had to redeem aboutL75,000. That leaves L105,000 yet, and you've only got L67,000 to pay itwith. What have you got to say to that?"
"Well!" said Potts. "The Brandon Bank may go--but what then? You forgetthat I have the Brandon estate. That's worth two millions."
"You got it for two hundred thousand."
"Because it was thrown away, and dropped into my hands."
"It'll be thrown away again at this rate. You owe Smithers & Co."
"Pooh! that's all offset by securities which I hold."
"Queer securities!"
"All good," said Potts. "All first-rate. It'll be all right. We'll haveto put it through."
"But what if it isn't all right?" asked Clark, savagely.
"You forget that I have Smithers & Co. to fall back on."
"If your bank breaks, there is an end of Smithers & Co."
"Oh no. I've got this estate to fall back on, and they know it. I caneasily explain to them. If they had only been in town I shouldn't havehad to make this sacrifice. You needn't feel troubled about your money.I'll give you security on the estate to any amount. I'll give yousecurity for seventy thousand," said Potts.
Clark thought for a while.
"Well!" said he, "it's a risk, but I'll run it"
"There isn't time to get a lawyer now to make out the papers; butwhenever you fetch one I'll do it."
"I'll get one to-day, and you'll sign the papers this evening. In myopinion by that time the bank'll be shut up for good, and you're a foolfor your pains. You're simply throwing away what gold you have."
Potts went down not long after. It was the fourth day of the run.Miscellaneous callers thronged the place, but the amounts were notlarge. In two hours not more than five thousand were paid out.
At length a man came in with a carpet-bag. He pulled out a vast quantityof notes.
"How much?" asked the clerk, blandly.
"Thirty thousand pounds," said the man.
Potts heard this and came out.
"How much?" he asked.
"Thirty thousand pounds."
"Do you want it in gold?"
"Of course."
"Will you take a draft on Messrs. Smithers & Co.?"
"No, I want gold."
While Potts was talking to this man another was waiting patiently besidehim. Of course this imperative claimant had to be paid or else the bankwould have to stop, and this was a casualty which Potts could not yetface with calmness. Before it came to that he was determined to pay outhis last sovereign.
On paying the thirty thousand pounds it was found that there were onlytwo bags left of two thousand pounds each.
The other man who had waited stood calmly, while the one who had beenpaid was making arrangements about conveying his money away.
It was now two o'clock. The stranger said quietly to the clerk oppositethat he wanted gold.
"How much?" said the clerk, with the same blandness.
"Forty thousand pounds," answered the stranger.
"Sorry we can't accommodate you, Sir," returned the clerk.
Potts had heard this and came forward.
"Won't you take a draft on London?" said he.
"Can't," replied the man; "I was ordered to get gold."
"A draft on Smithers & Co.?"
"Couldn't take even Bank of England notes," said the stranger; "I'm onlyan agent. If you can't accommodate me I'm sorry, I'm sure."
Potts was silent. His face was ghastly. As much agony as such a mancould endure was fe
lt by him at that moment.
Half an hour afterward the shutters were up; and outside the door stooda wild and riotous crowd, the most noisy of whom was the tailor.
The Brandon Bank had failed.
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