THE RUN ON THE BANK.
Not long after the bank opened a number of people came in who asked
for gold in return for some bank-notes which they offered. This was an
unusual circumstance. The people also were strangers. Potts wondered
what it could mean. There was no help for it, however. The gold was paid
out, and Potts and his friends began to feel somewhat alarmed at the
thought which now presented itself for the first time that their very
large circulation of notes might be returned upon them. He communicated
this 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 and
people of the neighborhood brought back the notes, demanding gold. By
about twelve o’clock the influx was constant.
Potts began to feel alarmed. He went out, and tried to bully some of the
villagers. They did not seem to pay any attention to him, however. Potts
went back to his parlor discomfited, vowing vengeance against those who
had thus slighted him. The worst of these was the tailor, who brought in
notes to the extent of a thousand pounds, and when Potts ordered him out
and told him to wait, only laughed in his face.
“Haven’t you got gold enough?” said the tailor, with a sneer. “Are you
afraid 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 too
eager 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 they
couldn’t.
The day dragged on till at last three o’clock came. Fifteen thousand
pounds had been paid out. Potts fell into deep despondency. Clark had
remained 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 more
security 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 broker
and have it sold. It will give me hundreds of thousands--twice as much
as all the bank issue. Then I’ll pay up these devils well, and that
d----d tailor worst of all. I swear I’ll send it all down to-day, and
have every bit of it sold. If there’s going to be a run, I’ll be ready
for 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 on
a piece of paper, which he showed to Clark:
California Company.................£100,000
Mexican bonds ..................... 50,000
Guatemala do. ..................... 50,000
Venezuela do. ..................... 50,000
--------
£250,000
“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 from
twenty to twenty-five per cent. dividends. They’ll sell for three
hundred 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 thing
forever.”
“I thought you had some French and Russian bonds,” said Clark.
“I gave those to that devil who had the--the papers, you know. He
consented to take them, and I was very glad, for they paid less than the
others.”
Clark was silent.
“Why, man, what are you thinking about? Don’t you know that I’m good for
two 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 that
they’d back down.”
“Pooh! What! Back down from a man with my means! Nonsense! They know how
rich I am, or they never would have begun. Come, don’t be a fool. It’ll
take three days to get gold for my stock, and if you don’t help me the
bank may stop before I get it. If you’ll help me for three days I’ll pay
you well.”
[Illustration: 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 you
have the fifty thousand for three days.”
“All right. You’ve got me where my hair is short; but I don’t mind. When
can I have the money?”
“The day after to-morrow. I’ll go to Plymouth now, get the money
to-morrow, and you can use it the next day.”
“All right; I’ll send down John to London with the stock, and he’ll
bring up the gold at once.”
Clark started off immediately for Plymouth, and not long after John went
away to London. Potts remained to await the storm which he dreaded.
The next day came. The bank opened late on purpose. Potts put up a
notice that it was to be closed that day at twelve, on account of the
absence of some of the directors.
At about eleven the crowd of people began to make their appearance as
before. Their demands were somewhat larger than on the previous day.
Before twelve ten thousand pounds had been paid. At twelve the bank
was shut in the faces of the clamorous people, in accordance with the
notice.
Strangers were there from all parts of the county. The village inn was
crowded, and a large number of carriages was outside. Potts began to
look forward to the next day with deep anxiety. Only five thousand
pounds remained in the bank. One man had come with notes to the extent
of five thousand, and had only been got rid of by the shutting of the
bank. He left, vowing vengeance.
To Potts’s immense relief Clark made his appearance early on the
following day. He had brought the money. Potts gave him his note for
sixty thousand pounds, and the third day began.
By ten o’clock the doors were besieged by the largest crowd that had
ever assembled in this quiet village. Another host of lookers-on had
collected. When the doors were opened they poured in with a rush.
The demands on this third day were very large. The man with the five
thousand had fought his way to the counter first, and clamored to be
paid. The noise and confusion were overpowering. Every body was cursing
the bank or laughing at it. Each one felt doubtful about getting his
pay. Potts tried to be dignified for a time. He ordered them to be
quiet, and assured them that they would all be paid. His voice was
drowned in the wild uproar. The clerks counted out the gold as rapidly
as possible, in spite of the remonstrances of Potts, who on three
occasions called them all into the parlor, and threatened to dismiss
them unless they counted more slowly. His threats were disregarded.
They went back, and paid out as rapidly as before. The amounts required
ranged from five or ten pounds to thousands of pounds. At last, after
paying out thousands, one man came up who had notes to the amount of ten
thousand pounds. This was the largest demand that had yet been made. It
was doubtful whether there was so large an amount left. Potts came out
to see him. There was no help for it; he had to parley with the enemy.
He told him that it was within a few minutes of three, and that it would
take an hour at least to count out so much--would he not wait till the
next day? There would be ample time then.
The man had no objection. It was all the same to him. He went out with
his bundle of notes through the crowd, telling them that the bank could
not pay him. This intelligence made the excitement still greater. There
was a fierce rush to the counter. The clerks worked hard, and paid out
what 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 put
forward twenty minutes, and there was a great riot among the people on
that account, but they could not do any thing. The bank was closed for
the day, and they had to depart.
Both Potts and Clark now waited eagerly for the return of John. He
was expected before the next day. He ought to be in by midnight. After
waiting impatiently for hours they at length drove out to see if they
could find him.
About twelve miles from Brandon they met him at midnight with a team of
horses 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. The
gold was taken out and deposited in the vaults, and the three went up to
the Hall. They brought out brandy and refreshed themselves, after which
John 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 the
broker. He said that American stocks, particularly those which I held,
had undergone a great depreciation. He assured me that it was only
temporary, that the dividends which these stocks paid were enough to
raise them in a short time, perhaps in a few weeks, and that it was
madness to sell out now. He declared that it would ruin the credit of
the Brandon Bank if it were known that we sold out at such a fearful
sacrifice, and advised me to raise the money at a less cost.
“Well, I could only think of Smithers & Co. I went to their office. They
were all away. I saw one of the clerks who said they had gone to see
about some Russian loan or other, so there was nothing to do but to
go back to the broker. He assured me again that it was an unheard of
sacrifice; that these very stocks which I held had fallen terribly, he
knew not how, and advised me to do any thing rather than make such a
sacrifice. But I could do nothing. Gold was what I wanted, and since
Smithers & 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 he
drew from his pocket a paper which he handed to the others. They looked
at it eagerly.
It was as follows:
100 shares California @ £1000 each. 65 per
cent, discount........................£35,000
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
-------
£67,000
The faces of Potts and Clark grew black as night as they read this. A
deep 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 sent
back to you. So I’ll trouble you to give me my sixty thousand; and I
advise you as a friend to hold on to the rest.”
“Clark!” said Potts, “you’re getting timider and timider. You ain’t got
any more pluck these times than a kitten.”
“It’s a time when a man’s got to be careful of his earnings,” said
Clark. “How much have you out in notes? You told me once you had out
about £180,000, perhaps more. Well, you’ve already had to redeem about
£75,000. That leaves £105,000 yet, and you’ve only got £67,000 to pay it
with. What have you got to say to that?”
“Well!” said Potts. “The Brandon Bank may go--but what then? You forget
that 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 have
to 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 can
easily explain to them. If they had only been in town I shouldn’t have
had 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 you
security 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; but
whenever you fetch one I’ll do it.”
“I’ll get one to-day, and you’ll sign the papers this evening. In my
opinion by that time the bank’ll be shut up for good, and you’re a fool
for 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 not
large. 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 quantity
of 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 beside
him. Of course this imperative claimant had to be paid or else the bank
would have to stop, and this was a casualty which Potts could not yet
face with calmness. Before it came to that he was determined to pay out
his last sovereign.
On paying the thirty thousand pounds it was found that there were only
two bags left of two thousand pounds each.
The other man who had waited stood calmly, while the one who had been
paid was making arrangements about conveying his money away.
It was now two o’clock. The stranger said quietly to the clerk opposite
that 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 only
an 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 man
could endure was felt by him at that moment.
Half an hour afterward the shutters were up; and outside the door stood
a wild and riotous crowd, the most noisy of whom was the tailor.
The Brandon Bank had failed.