CHAPTER XXXVI
THE AFFAIRS OF SMITHERS & CO.
For more than a year the vast operations of Smithers & Co. hadastonished business circles in London. Formerly they had been consideredas an eminently respectable house, and as doing a safe business; but oflate all this had been changed in so sudden and wonderful a manner thatno one could account for it. Leaving aside their old, cautious policy,they undertook without hesitation the largest enterprises. Foreignrailroads, national loans, vast joint-stock companies, these were thethings that now occupied Smithers & Co. The Barings themselves wereoutrivaled, and Smithers & Co. reached the acme of their sudden gloryon one occasion, when they took the new Spanish loan out of the grasp ofeven the Rothschilds themselves.
How to account for it became the problem. For, allowing the largestpossible success in their former business to Smithers & Co., thatbusiness had never been of sufficient dimensions to allow of this. Somesaid that a rich Indian had become a sleeping partner, others declaredthat the real Smithers was no more to be seen, and that the business wasmanaged by strangers who had bought them out and retained theirname. Others again said that Smithers & Co. had made large amounts inCalifornia mining speculations. At length the general belief was, thatsome individuals who had made millions of money in California had boughtout Smithers & Co., and were now doing business under their name. Asto their soundness there was no question. Their operations were such asdemanded, first of all, ready money in unlimited quantities. This theywere always able to command. Between them and the Bank of Englandthere seemed to be the most perfect understanding and the most enviableconfidence. The Rothschilds spoke of them with infinite respect. Peoplebegan to look upon them as the leading house in Europe. The suddenapparition of this tremendous power in the commercial world threw thatworld into a state of consternation which finally ended in wonderingawe.
But Smithers & Co. continued calmly, yet successfully, their greatenterprises. The Russian loan of fifteen millions was negotiated bythem. They took twenty millions of the French loan, five millions of theAustrian, and two and a half of the Turkish. They took nearly all thestock of the Lyons and Marseilles Railroad. They owned a large portionof the stock of the Peninsular and Oriental Steam Navigation Company.They had ten millions of East India stock. California alone, whichwas now dazzling the world, could account to the common mind for suchenormous wealth. The strangest thing was that Smithers himself was neverseen. The business was done by his subordinates. There was a young manwho represented the house in public, and who called himself Henderson.He was a person of distinguished aspect, yet of reserved and somewhatmelancholy manner. No one pretended to be in his confidence. No onepretended to know whether he was clerk or partner. As he was the onlyrepresentative of Smithers & Co., he was treated with marked respectwherever he appeared.
The young man, whether partner or clerk, had evidently the supremecontrol of affairs. He swayed in his own hands the thunder-bolts of thisOlympian power. Nothing daunted him. The grandeur of his enterprisesdazzled the public mind. His calm antagonism to the great houses ofLondon filled them with surprise. A new power had seized a high placein the commercial world, and the old gods--the Rothschilds, theBarings, and others--looked aghast. At first they tried to despise thisinterloper; at length they found him at least as strong as themselves,and began to fancy that he might be stronger. A few experiments soontaught them that there was no weakness there. On one occasion theRothschilds, true to their ordinary selfish policy, made a desperateattempt to crush the new house which dared to enter into rivalry withthem. Widespread plans were arranged in such a way that large demandswere made upon them on one day. The amount was nearly two millions.Smithers & Co. showed not the smallest hesitation. Henderson, theirrepresentative, did not even take the trouble to confer with the Bank ofEngland. He sent his orders to the Bank. The money was furnished. It wasthe Directors of the Bank of England who looked aghast at this strugglebetween Rothschild and Smithers & Co. The gold in the Bank vaults sanklow, and the next day the rates of discount were raised. All London feltthe result of that struggle.
Smithers & Co. waited for a few months, and then suddenly retorted withterrific force. The obligations of the Rothschilds were obtained fromall quarters--some which were due were held over and not presentedtill the appointed day. Obligations in many forms--in all the formsof indebtedness that may arise in a vast business--all these had beencollected from various quarters with untiring industry and extraordinaryoutlay of care and money. At last in one day they were all poured uponthe Rothschilds. Nearly four millions of money were required to meetthat demand.
The great house of Rothschild reeled under the blow. Smithers & Co. werethe ones who administered it. James Rothschild had a private interviewwith the Directors of the Bank of England. There was a sudden andenormous sale of securities that day on Change. In selling outsuch large amounts the loss was enormous. It was difficult to findpurchasers, but Smithers & Co. stepped forward and bought nearly allthat was offered. The Rothschilds saved themselves, of course, but at aterrible loss, which became the profits of Smithers & Co.
The Rothschilds retreated from the conflict utterly routed, and glad toescape disaster of a worse kind. Smithers & Co. came forth victorious.They had beaten the Rothschilds at their own game, and had made atleast half a million. All London rang with the story. It was a bitterhumiliation for that proud Jewish house which for years had never metwith a rival. Yet there was no help, nor was there the slightest chanceof revenge. They were forced to swallow the result as best they could,and to try to regain what they had lost.
After this the pale and melancholy face of Henderson excited a deeperinterest. This was the man who had beaten the Rothschilds--the strongestcapitalist in the world. In his financial operations he continued ascalm, as grave, and as immovable as ever. He would risk millionswithout moving a muscle of his countenance. Yet so sagacious was he, sowide-spread were his agencies, so accurate was his secret information,that his plans scarcely ever failed. His capital was so vast that itoften gave him control of the market. Coming into the field untrammeledas the older houses were, he had a larger control of money than any ofthem, and far greater freedom of action.
After a time the Rothschilds, the Barings, and other great bankers,began to learn that Smithers & Co. had vast funds every where, in allthe capitals of Europe, and in America. Even in the West Indies theiroperations were extensive. Their old Australian agency was enlarged, anda new banking-house founded by them in Calcutta began to act on the samevast scale as the leading house at London. Smithers & Co. also continuedto carry on a policy which was hostile to those older bankers. TheRothschilds in particular felt this, and were in perpetual dread of arenewal of that tremendous assault under which they had once nearly gonedown. They became timid, and were compelled to arrange their businessso as to guard against this possibility. This, of course, checked theiroperations, and widened and enlarged the field of action for theirrivals.
No one knew any thing whatever about Henderson. None of the clerks couldtell any thing concerning him. They were all new hands. None of themhad ever seen Smithers. They all believed that Henderson was the juniorpartner, and that the senior spent his time abroad. From this it beganto be believed that Smithers staid in California digging gold, which hediligently remitted to the London house.
At length the clerks began to speak mysteriously of a man who came fromtime to time to the office, and whose whole manner showed him to possessauthority there. The treatment which he received from Henderson--at oncecordial and affectionate--showed them to be most intimate and friendly;and from words which were dropped they all thought him to be the seniorpartner. Yet he appeared to be very little older than Henderson, ifas old, and no one even knew his name. If any thing could add to theinterest with which the house of Smithers & Co. was regarded it was thisimpenetrable mystery, which baffled not merely outriders but even theclerks themselves.
Shortly after the departure of Langhetti and Beatrice from Holby two menwere seated in t
he inner parlor of the office of Smithers & Co. One wasthe man known as Henderson, the other the mysterious senior partner.
They had just come in and letters were lying on the table.
"You've got a large number this morning, Frank?" said the seniorpartner.
"Yes," said Frank, turning them over; "and here, Louis, is one for you."He took out a letter from the pile and handed it to Louis. "It's fromyour Brandon Hall correspondent," he added.
Louis sat down and opened it. The letter was as follows:
"August 15, 1840.
"DEAR SIR,--I have had nothing in particular to write since the flightof Miss Potts, except to tell you what they were doing. I have alreadyinformed you that they kept three spies at Holby to watch her. One ofthese returned, as I told you in my last letter, with the informationthat she had gone to London with a party named Langhetti. Ever sincethen _they_ have been talking it over, and have come to the conclusionto get a detective and keep him busy watching her with the idea ofgetting her back, I think. I hope to God they will not get her back. Ifyou take any interest in her, Sir, as you appear to do, I hope you willuse your powerful arm to save her. It will be terrible if she has tocome back here. She will die, I know. Hoping soon to have something moreto communicate,
"I remain, yours respectfully,
"E.L.
"Mr. Smithers, Sen., London."
"LANGHETTI IS ALIVE."]
Louis read this letter over several times and fell into deep thought.
Frank went on reading his letters, looking up from time to time. At lasthe put down the last one.
"Louis!" said he.
Louis looked up.
"You came so late last night that I haven't had a chance to speak aboutany thing yet. I want to tell you something very important."
"Well!"
"Langhetti is alive."
"I know it."
"You knew it! When? Why did you not tell me?"
"I didn't want to tell any thing that might distract you from yourpurpose."
"I am not a child, Louis! After my victory over Rothschild I ought to beworthy of your confidence."
"That's not the point, Frank," said Louis; "but I know your affectionfor the man, and I thought you would give up all to find him."
"Well!"
"Well. I thought it would be better to let nothing interpose now betweenus and our purpose. No," he continued, with a stern tone, "no, noone however dear, however loved, and therefore I said nothing aboutLanghetti. I thought that your generous heart would only be distressed.You would feel like giving up every thing to find him out and see him,and, therefore, I did not wish you even to know it. Yet I have kept anaccount of his movements, and know where he is now."
"He is here in London," said Frank, with deep emotion.
"Yes, thank God!" said Louis. "You will see him, and we all will be ableto meet some day."
"But," asked Frank, "do you not think Langhetti is a man to be trusted?"
"That is not the point," replied Louis. "I believe Langhetti is one ofthe noblest men that ever lived. It must be so from what I have heard.All my life I will cherish his name and try to assist him in everypossible way. I believe also that if we requested it he might perhapskeep our secret. But that is not the point, Frank. This is the way Ilook at it: We are dead. Our deaths have been recorded. Louis Brandonand Frank Brandon have perished. I am Wheeler, or Smithers, or Forsyth,or any body else; you are Henderson. We keep our secret because wehave a purpose before us. Our father calls us from his tomb to itsaccomplishment. Our mother summons us. Our sweet sister Edith, from hergrave of horror unutterable, calls us. All personal feeling must standaside, Frank--yours and mine--whatever they be, till we have done ourduty."
"You are right, Louis," said Frank, sternly.
"Langhetti is in London," continued Louis. "You will not see him,but you can show your gratitude, and so can I. He is going to hire anopera-house to bring out an opera; I saw that in the papers. It is athing full of risk, but he perhaps does not think of that. Let us enablehim to gain the desire of his heart. Let us fill the house for him.You can send your agents to furnish tickets to people who may make theaudience; or you can send around those who can praise him sufficiently.I don't know what his opera may be worth. I know, however, from what Ihave learned, that he has musical genius; and I think if we give hima good start he will succeed. That is the way to show your gratitude,Frank."
"I'll arrange all that!" said Frank. "The house shall be crowded. I'llsend an agent to him--I can easily find out where he is, I suppose--andmake him an offer of Covent Garden theatre on his own terms. Yes,Langhetti shall have a fair chance. I'll arrange a plan to enforcesuccess."
"Do so, and you will keep him permanently in London till the time comeswhen we can arise from the dead."
They were silent for a long time. Louis had thoughts of his own, excitedby the letter which he had received, and these thoughts he did not careto utter. One thing was a secret even from Frank.
And what could he do? That Beatrice had fallen among friends he wellknew. He had found this out when, after receiving a letter from Philipsabout her flight, he had hurried there and learned the result. Then hehad himself gone to Holby, and found that she was at Mrs. Thornton's. Hehad watched till she had recovered. He had seen her as she took a drivein Thornton's carriage. He had left an agent there to write him abouther when he left.
What was he to do now? He read the letter over again. He paused atthat sentence: "They have been talking it over, and have come to theconclusion to get a detective, and keep him busy watching her with theidea of getting her back."
What was the nature of this danger? Beatrice was of age. She was withLanghetti. She was her own mistress. Could there be any danger of herbeing taken back against her will? The villains at Brandon Hall weresufficiently unscrupulous, but would they dare to commit any violence?and if they did, would not Langhetti's protection save her?
Such were his thoughts. Yet, on the other hand, he considered thefact that she was inexperienced, and might have peculiar ideas abouta father's authority. If Potts came himself, demanding her return,perhaps, out of a mistaken sense of filial duty, she might go with him.Or, even if she was unwilling to do so, she might yield to coercion, andnot feel justified in resisting. The possibility of this filled himwith horror. The idea of her being taken back to live under the power ofthose miscreants from whom she had escaped was intolerable. Yet he knewnot what to do.
Between him and her there was a gulf unfathomable, impassable. She wasone of that accursed brood which he was seeking to exterminate. He wouldspare her if possible; he would gladly lay down his life to save herfrom one moment's misery; but if she stood in the way of his vengeance,could he--dared he stay that vengeance? For that he would sacrifice lifeitself! Would he refuse to sacrifice even _her_ if she were more dearthan life itself?
Yet here was a case in which she was no longer connected with, butstriving to sever herself from them. She was flying from that accursedfather of hers. Would he stand idly by, and see her in danger? That wereimpossible. All along, ever since his return to England, he had watchedover her, unseen himself and unsuspected by her, and had followed herfootsteps when she fled. To desert her now was impossible. The onlyquestion with him was--how to watch her or guard her.
One thing gave him comfort, and that was the guardianship of Langhetti.This he thought was sufficient to insure her safety. For surelyLanghetti would know the character of her enemies as well as Beatriceherself, and so guard her as to insure her safety from any attemptof theirs. He therefore placed his chief reliance on Langhetti, anddetermined merely to secure some one who would watch over her, and lethim know from day to day how she fared. Had he thought it necessary hewould have sent a band of men to watch and guard her by day and night;but this idea never entered his mind for the simple reason that he didnot think the danger was pressing. England was after all a country oflaw, and even a father could not carry off his daughter against her willwhen she was of age. So he comfo
rted himself.
"Well," said he, at last, rousing himself from his abstraction, "how isPotts now?"
"Deeper than ever," answered Frank, quietly.
"The Brandon Bank--"
"The Brandon Bank has been going at a rate that would have foundered anyother concern long ago. There's not a man that I sent there who has notbeen welcomed and obtained all that he wanted. Most of the money thatthey advanced has been to men that I sent. They drew on us for the moneyand sent us various securities of their own, holding the securitiesof these applicants. It is simply bewildering to think how easily thatscoundrel fell into the snare."
"When a man has made a fortune easily he gets rid of it easily," saidLouis, laconically. "Potts thinks that all his applicants are leadingmen of the county. I take good care that they go there as baronets atleast. Some are lords. He is overpowered in the presence of these lords,and gives them what they ask on their own terms. In his letters hehas made some attempts at an expression of gratitude for our greatliberality. This I enjoyed somewhat. The villain is not a difficult oneto manage, at least in the financial way. I leave the denouement to you,Louis."
"The denouement must not be long delayed now."
"Well, for that matter things are so arranged that we may have 'thebeginning of the end' as soon as you choose."
"What are the debts of the Brandon Bank to us now?"
"Five hundred and fifteen thousand one hundred and fifty pounds," saidFrank.
"Five hundred thousand--very good," returned Louis, thoughtfully. "Andhow is the sum secured?"
"Chiefly by acknowledgments from the bank with the indorsement of JohnPotts, President."
"What are the other liabilities?"
"He has implored me to purchase for him or sell him some Californiastock. I have reluctantly consented to do so," continued Frank, with asardonic smile, "entirely through the request of my senior, and he hastaken a hundred shares at a thousand pounds each."
"One hundred thousand pounds," said Louis.
"I consented to take his notes," continued Frank, "purely out of regardto the recommendations of my senior."
"Any thing else?" asked Louis.
"He urged me to recommend him to a good broker who might purchase stockfor him in reliable companies. I created a broker and recommended him.He asked me also confidentially to tell him which stocks were best, soI kindly advised him to purchase the Mexican and the Guatemala loan. Ialso recommended the Venezuela bonds. I threw all these into the market,and by dextrous manipulation raised the price to 3 per cent, premium. Hepaid L103 for every L100. When he wants to sell out, as he may one daywish to do, he will be lucky if he gets 35 per cent"
"How much did he buy?"
"Mexican loan, fifty thousand; Guatemala, fifty thousand; and Venezuelabonds, fifty thousand."
"He is quite lavish."
"Oh, quite. That makes it so pleasant to do business with him."
"Did you advance the money for this?"
"He did not ask it. He raised the money somehow, perhaps from our oldadvances, and bought them from the broker. The broker was of coursemyself. The beauty of all this is, that I send applicants for money, whogive their notes; he gets money from me and gives his notes to me, andthen advances the money to these applicants, who bring it back to me.It's odd, isn't it?"
Louis smiled.
"Has he no _bona fide_ debtors in his own county?"
"Oh yes, plenty of them; but more than half of his advances have beenmade to my men.
"Did you hint any thing about issuing notes?"
"Oh yes, and the bait took wonderfully. He made his bank a bank of issueat once, and sent out a hundred and fifty thousand pounds in notes. Ithink it was in this way that he got the money for all that Americanstock. At any rate, it helped him. As he has only a small supply of goldin his vaults, you may very readily conjecture his peculiar position."
Louis was silent for a time.
"You have managed admirably, Frank," said he at last.
"Oh," rejoined Frank, "Potts is very small game, financially. There isno skill needed in playing with him. He is such a clumsy bungler that hedoes whatever one wishes. There is not even excitement. Whatever I tellhim to do he does. Now if I were anxious to crush the Rothschilds, itwould be very different. There would then be a chance for skill."
"You have had the chance."
"I did not wish to ruin them," said Frank. "Too many innocent peoplewould have suffered. I only wished to alarm them. I rather think, fromwhat I hear, that they were a little disturbed on that day when they hadto pay four millions. Yet I could have crushed them if I had chosen, andI managed things so as to let them see this."
"How?"
"I controlled other engagements of theirs, and on the same day Imagnanimously wrote them a letter, saying that I would not press forpayment, as their notes were as good to me as money. Had I pressed theywould have gone down. Nothing could have saved them. But I did not wishthat. The fact is they have locked up their means very much, and havebeen rather careless of late. They have learned a lesson now."
Louis relapsed into his reflections, and Frank began to answer hisletters.