The Spenders: A Tale of the Third GenerationWilson, Harry Leon
General
The Spenders: A Tale of the Third Generation
Wilson, Harry Leon
Inheritance and succession -- Fiction; United States -- Social life and customs -- Fiction
One day the wind backs and shifts. A change portends. Even the herds of
half-frozen range cattle sense it by some subtle beast-knowledge. They
are no longer afraid to lie down as they may have been for a week. The
danger of freezing has passed. The temperature has been at fifty
degrees below zero. Now, suddenly it begins to rise. The air is
scarcely in motion, but occasionally it descends as out of a
blast-furnace from overhead. To the southeast is a mass of dull black
clouds. Their face is unbroken. But the upper edges are ragged, torn by
a wind not yet felt below. Two hours later its warmth comes. In ten
minutes the mercury goes up thirty-five degrees. The wind comes at a
thirty-mile velocity. It increases in strength and warmth, blowing with
a mighty roar.
Twelve hours afterward the snow, three feet deep on a level, has
melted. There are bald, brown hills everywhere to the horizon, and the
plains are flooded with water. The Chinook has come and gone. In this
manner suddenly went the Bines fortune.
April 30th, Consolidated Copper closed at 91. Two days later, May 2d,
the same ill-fated stock closed at 5l--a drop of forty points. Roughly
the decline meant the loss of a hundred million dollars to the fifteen
thousand share-holders. From every city of importance in the country
came tales more or less tragic of holdings wiped out, of ruined
families, of defalcations and suicides. The losses in New York City
alone were said to be fifty millions. A few large holders, reputed to
enjoy inside information, were said to have put their stock aside and
"sold short" in the knowledge of what was coming. Such tales are always
popular in the Street.
Others not less popular had to do with the reasons for the slump. Many
were plausible. A deal with the Rothschilds for control of the Spanish
mines had fallen through. Or, again, the slaughter was due to the
Shepler group of Federal Oil operators, who were bent on forcing some
one to unload a great quantity of the stock so that they might absorb
it. The immediate causes were less recondite. The Consolidated Company,
so far from controlling the output, was suddenly shown to control
actually less than fifty per cent of it. Its efforts to amend or repeal
the hardy old law of Supply and Demand had simply met with the
indifferent success that has marked all such efforts since the first
attempted corner in stone hatchets, or mastodon tusks, or whatever it
may have been. In the language of one of its newspaper critics, the
"Trust" had been "founded on misconception and prompted along lines of
self-destruction. Its fundamental principles were the restriction of
product, the increase of price, and the throttling of competition, a
trinity that would wreck any combination, business, political, or
social."
Public-domain text, read in full here on John Shaqi.
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