New York (N.Y.) -- Social life and customs -- Fiction; Wall Street (New York, N.Y.) -- Fiction
On the next day came the second chapter of the big Turpentine deal. Mr.
Sharpe, having received the pool’s 114,400 shares, divided it into three
lots, 40,000 shares, 50,000 shares, and 24,400 shares. The market had
held fairly strong, but the lynx-eyed room traders failed to perceive
the usual “support” in “Turp” and began to sell it in order to make
sure. There was enough commission-house buying and belated
short-covering to keep it moderately steady. Then the room traders
redoubled their efforts to depress it, by selling more than there were
buying orders for; also by selling it cheaper than was warranted by the
legitimate demand for the stock. It was a favorite trick to offer to
sell thousands of shares lower than people were willing to pay, in order
to frighten the timid holders and make them sell; which in turn would
make still others sell, until the movement became general enough to
cause a substantial fall.
Slowly the price began to yield. All that was needed was a leader.
Whereupon Mr. Sharpe took the first lot of pool stock, 40,000 shares,
and hurled it full at the market. The impact was terrible; the execution
appalling. The market reeled crazily. The stock, which after selling up
to 72¾ had “closed” on the previous day at 71⅞, dropped twenty points
and closed at 54. The newspapers said that the corner was “busted”; that
the “squeeze” was over. Hundreds of people slept ill that night. Scores
did not sleep at all.
On the next day he fired by volleys 50,000 shares more at the market.
The stock sank to 41¼. Such a break was almost unprecedented.
The Street asked itself if it were not on the eve of a crash that would
become historic in a district whose chronology is reckoned by big market
movements.
Greenbaum rushed to Sharpe’s office. The terrible break gave him courage
to do anything. A Wall Street worm will turn when the market misbehaves
itself.
“What’s the matter?” he asked angrily. “What are you doing to
Turpentine?”
Sharpe looked him full in the face, but his voice was even and
emotionless as he replied: “Somebody has been selling on us. I don’t
know who. I wish I did. I was afraid I might have to take 100,000 shares
more, so I just sold as much as I could. I’ve marketed most of the
pool’s stock. If it had not been for the jag of stock I struck around 60
and 62, Turpentine would be selling at 85 or 90 to-day. Come again next
week, Greenbaum; and keep cool. Did you ever know me to fail? Good-by,
Greenbaum; and don’t raise your voice when you speak to me.”
“This has gone too far,” said Greenbaum, hotly. “You must give me an
explanation or by Heaven I’ll——”
Public-domain text, read in full here on John Shaqi.
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