Business; Capitalists and financiers -- United States; Speculation; Wall Street (New York, N.Y.)
After nearly a year’s absence Keene was surprised to find, on his
return, that mining stocks had taken a prodigious bound upward and
carried the one in which he had invested with them. The mine had turned
out to be a veritable bonanza, and the stock which had cost him only a
few hundred dollars was then worth over $200,000.
Had Mr. Keene’s health not required his absence from the scene of
speculation the chances are that he would have disposed of his stock as
soon as it should have realized a few thousand dollars.
This was a wonderful realization for one who had been comparatively
poor, and was sufficient to turn the head of any ordinary man; but it
only made Keene more anxious for greater success, which he set himself
diligently to achieve.
The speculative craze was then intense and epidemic. Waiters and
chambermaids bloomed into millionaires with the rapidity of mushroom
growth. Mr. Keene secured a seat in the Board, and began to do an
immense business.
Flood, Mackay, Fair and O’Brien were then the prominent operators. The
speculative contagion spread rapidly over the coast, and soon imparted
its influence to the entire continent. Keene’s further investments were
crowned with similar success to that of his first venture, and even in a
greater ratio of profit.
Seeing the great and rapid advance in the stocks of the Comstock mines,
he naturally reasoned, like old Daniel Drew, that what had gone up so
high and so fast was bound to come down. There were but few people on
the coast at that time, however, in a mood to reason so soberly, and it
required more than ordinary nerve to make the experiment of selling
“short.” Mr. Keene, however, had the courage of his convictions, and
made an onslaught upon the market.
There Was a strong contingent to oppose him, for the wealthy syndicate
just named, with the Bank of California behind them, were his bitter
foes, and they did their best to crush him. In spite of their efforts,
however, the market began to yield under the pressure of Keene’s “short”
sales. In a little while the list gave way and stocks began to topple
from their dizzy eminence, even quicker than they had climbed to that
unprecedented height. Keene netted millions in their fall. He cleared
two and a-half millions in the Belcher and Crown Point mines, and over
half a million in Ophir.
So, in a few years, this poor lawyer, journalist, curbstone broker and
invalid, found himself the happy possessor of millions, his name covered
with speculative glory, and the fame of his fabulous fortune heralded in
every city, town, hamlet and mining camp between the two oceans.
Keene was still found on the right side of the market when the great
bubble burst, when the Bank of California went under, and its president,
Mr. Ralston, committed suicide while pretending to take a bath in the
Pacific Ocean.
Public-domain text, read in full here on John Shaqi.
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