Words for the Wise Part 15

After two or three instalments have been paid, you can draw out two-thirds of the amount on stock notes."

"Indeed! That's the way it's done?"

"Yes. You ought to take about a hundred shares, which will make it easy for us to have you put into the Board of Directors."

"I'll do it," was the prompt response to this.

"And take my word for it, you will not be many months a bank director, if you improve the opportunities that will be thrown in your way, without having a good deal more money at your command than at present."

The charter for the People's Bank was obtained, and when an election was held, Lawrence went in as a director. He had not held that position many months, before, by favouring certain paper that was presented from certain quarters, he got paper favoured that came from certain other quarters; and in this was individually benefited by getting the use of about fifteen thousand dollars additional capital, which came to him really but not apparently from the bank in which he held a hundred shares of stock. For the sake of appearances, he did not borrow back his instalments on stock notes. It was a little matter, and would have looked as if he were pressed for money.

From this time Sidney Lawrence became a financier, and plunged deep into all the mysteries of money-raising. His business operations became daily more and more extended, and he never appeared to be much pressed for money. At the end of a couple of years, he held the office of director in two banking inst.i.tutions, and was president of an insurance company that issued post-notes on which three per cent. was charged.

These notes, as the inst.i.tution was in good credit, could readily be pa.s.sed through almost any bank in the city. They were loaned pretty freely on individual credit, and also freely on real estate and other collateral security.

It is hard to serve two masters. The mind of man is so const.i.tuted, and the influences bearing upon it are so peculiar in their orderly arrangements, that the more it is concentered upon one object and pursuit, the more perfection and certainty attend its action. But if it be divided between two objects and pursuits, and especially if both of these require much thought, its action will be imperfect to a certain degree in both, or one will suffer while the other absorbs the most attention.

Thus it happened with Lawrence. While ardently engaged in financiering, his business received less attention. Instead of using to the best possible advantage the money already obtained in his financiering operations, he strove eagerly after more. In fact, too reckless an investment, in many instances, of borrowed capital, from which no return could be obtained perhaps for years, made his wants still as great as before, and kept in constant activity all the resources of his mind in order to meet his accommodations and steadily to increase them.

Ten years from the time when Sidney Lawrence started in business have pa.s.sed. He is living in handsome style and keeps his carriage. Five or six years previously, he was married to a beautiful and lovely-minded woman, connected with some of the best families of the city. He has three children.

"Are you not well, dear?" asked his wife, one day about this period.

They were sitting at the dinner-table, and Mr. Lawrence was hardly tasting his food.

"I haven't much appet.i.te," he replied indifferently.

"You eat scarcely any thing; hardly enough to keep you alive. I am afraid you give yourself too much up to business."

Mr. Lawrence did not reply. He had evidently not heard more than half of his wife's last remark. In a little while he left the table, saying, as he rose, that he had some business requiring his immediate attention. Mrs. Lawrence glanced toward the door that closed after her husband with a troubled look, and sighed.

From his dwelling Mr. Lawrence hurried to his store, and spent an hour there in examining his account books, and in making calculations. At five o'clock he met the directors of the insurance company, of which he was still president, at an extra meeting. All had grave faces. There was a statement of the affairs of the company upon the table around which they were gathered. It showed that in the next two weeks post-notes, amounting in all to one hundred and fifty thousand dollars, would fall due; while not over fifty thousand dollars in bills receivable, maturing within that time, were on hand, and the available cash resources of the company were not over five thousand dollars. The time was, when by an extra effort the sum needed could have been easily raised. But extra efforts had been put forth so often of late, that the company had exhausted nearly all its resources.

"I do not understand," remarked one of the directors, looking up from the statement he had been carefully examining, "how there can be a hundred and fifty thousand dollars of post-notes due so soon, and only fifty thousand dollars in bills receivable maturing in the same time.

If I am not mistaken, the post-notes were never issued except against bills having a few days shorter time to run. How is this, Mr. Lawrence?"

"All that is plain enough," the president replied promptly. "A large portion of these bills have been at various times discounted for us in the People's Bank, and in other banks, when we have needed money."

"But why should we be in such need of money?" inquired the director earnestly. He had been half asleep in his place for over a year, and was just beginning to get his eyes open. "I believe we have had no serious losses of late. There have been but few fires that have touched us."

"But there have been a good many failures in the last six months, most of which have affected us, and some to quite a heavy amount," returned the president. "Our post-note business has proved most unfortunate."

"So I should think if it has lost us a hundred thousand dollars, as appears from this statement."

"It is useless to look at that now," said Mr. Lawrence. "The great business to be attended to is the raising of means to meet this trying emergency. How is it to be done?"

There was a deep silence and looks of concern.

"Can it be raised at all? Is there any hope of saving the inst.i.tution?"

asked one of the board, at length.

"In my opinion, none in the world," was replied by another. "I have thought of little else but the affairs of the company since yesterday, and I am satisfied that all hope is gone. There are thirty thousand dollars to be provided to-morrow. Our balance is but five thousand, even if all the bills maturing to-day have been paid."

"Which they have, I presume, as no protests have come in," remarked the president.

"But what is the sum of five thousand dollars set off against thirty thousand? It is as nothing."

"Surely, gentlemen are not prepared to give up in this way," said the president, earnestly. "A failure will be a most disastrous thing, and we shall all be deeply sufferers in the community if it takes place. We must make efforts and sacrifices to carry it through. Here are twelve of us; can we not, on our individual credit, raise the sum required? I, for one, will issue my notes to-morrow for twenty thousand dollars. If the other directors will come forward in the same spirit, we may exchange the bills among each other, and by endorsing them mutually, get them through the various banks where we have friends or influence, and thus save the inst.i.tution. Gentlemen, are you prepared to meet me in this thing?"

Two or three responded affirmatively. Some positively declined; and others wanted time to think of it.

"If we pause to think, all is ruined," said Mr. Lawrence, excited. "We must act at once, and promptly."

But each member of the board remained firm to the first expression.

Nothing could be forced, and reflection only tended to confirm those who opposed the president's views in their opposition to the plan suggested. The meeting closed, after two hours' perplexing deliberation, without determining upon any course of action. At ten o'clock on the next day the directors were to meet again.

Mr. Lawrence walked the floor for half of that night, and lay awake for the other half. To sleep was impossible. Thus far, in the many difficulties he had encountered, a way of escape from them had opened either on the right hand or on the left, but now no way of escape presented itself. A hundred plans were suggested to his mind, canva.s.sed and then put aside. He saw but one measure of relief, if it could be carried out; but that he had proposed already, and it was not approved.

The unhappy state in which she saw her husband deeply distressed Mrs.

Lawrence. Earnestly did she beg of him to tell her all that troubled him, and let her bear a part of the burden that was upon him. At first he evaded her questions; but, to her oft-repeated and tenderly urged pet.i.tion to be a sharer in his pains as well as his pleasures, he mentioned the desperate state of affairs in the company of which he was president.

"But, my dear husband," she replied to this, "you cannot be held responsible for the losses the inst.i.tution has sustained."

"True, Florence; but the odium, the censure, the distress that must follow its failure,--I cannot bear to think of these. My credit, too, will suffer, for I shall lose all I have invested in the stock, and this fact, when known, will impair confidence."

"All this is painful and deeply to be regretted, Sidney," said the wife, speaking in as firm a voice as she could a.s.sume. "But as it is a calamity that cannot now be avoided, and is not the result of any wrong act of yours, let a clear conscience sustain you in this severe trial.

Let the public censure, let odium be attached to your name--so long as your conscience is clear and your integrity unsullied, these cannot really hurt you."

But this appeal had little or no effect. The mind of the unhappy man could not take hold of it, nor feel its force. It was repeated again and again, and with as little effect. Finally he begged to be left to his own reflections. In tears his wife complied with his request. That night she slept as little as her miserable husband.

On the next day the ---- Insurance Company was dishonoured, and "went into liquidation." On the day following Sidney Lawrence suspended payment. Trustees were appointed to take charge of the effects of the company, who immediately commenced a rigid examination into its affairs. Lawrence made an a.s.signment at the same time for the benefit of his creditors.

One evening, about a week after his failure, Mr. Lawrence came home paler and more disturbed than ever. There was something wild in the expression of his countenance.

"Florence," said he, as soon as he was alone with her, "I must leave for Cincinnati in the morning."

"Why?" eagerly asked the wife, her face instantly blanching.

"Business requires me to go. I have seen your father, and have made arrangements with him for you to go to his house, with the children, while I am away. This property, as I have before told you, has to be sold, and the sale will probably take place while I am gone."

"How soon will you return?"

"I cannot tell exactly; but I will come back as quickly as possible."

There was something in the manner of her husband, as he made this announcement, that startled and alarmed Mrs. Lawrence. She tried to ask many questions, but her voice failed her. Leaning her head down upon her husband's breast, she sobbed and wept for a long time. Lawrence was much affected, and kissed the wet cheek of his wife with unwonted fervour.

On the next morning, early, the unhappy man parted with his family. His wife clung to him with an instinctive dread of the separation. Tears were in his eyes, as he took his children one after another in his arms and kissed them tenderly.

"G.o.d bless you all, and grant that we may meet again right early, and under brighter skies!" he said, as he clasped his wife to his bosom in a long embrace, and then tore himself away.

On the third day after Mr. Lawrence left, one of the city newspapers contained the following paragraph: