Year: 1873

Although l thought, continued Mir. X., ''his ideas none of the soundest, there was at any rate the positive fact that his company would in week or two pay 8 dividend at the rate of thirty per cent. per annum, and then the advice of my wife to increase my income came wildly before me. In fact. for many hours after I was in bed, could not close my eyes, and it was only when at last had resolv- ed that the next morning would meet W. in the City, and talk over with him the advisability of investing some of my capital in his company, that was able to obtain any sleep.

 ''I will not detain you by narrating the particulars of my interview with W. Suf- fee it to say, invested e5, ,OO0 of my cap- ital in his company. True bought the shares at an enormous premium, but then, as he pointed out to me, had purchased them with the dividend about to be declared, which would make great difference ln my favor. told my wife what I had done. and she complimented me highly on what she termed my pru- dence and foresight. Months passed on, and during their progress, so far from having cause to regret my venture, the shares rose to a premium considerably

 

 had realized at the time, should have made very large profit. Instead of do- ing this, however, I purchased more shares. though not to any great amount. Then there came Hull, and their price re- mained stationary till the next dividend was declared, which was of the same amount as the last The directors in their report apologized that the dividend was not higher, but at the same time re- minded the shareholders that at thirty per cent. their profits contrasted very fa- vorabiy with those of many of the lead ing companies of the day.

 ''The price of the shares now remained stationary for some months, when sud- denly there was a considerable fall. I inquired of w. the reason, and he told me 1t arose solely from the immense num- Der of bubble companies which were start ing up, and drawing off such a vast amount of capital. At the same time there was not the slightest reason for me to be under any uneasiness, for they were go- ing on in most satisfactory manner.

 "A further fall in the shares took place, and again called on ". for information. Although he received me in his usual frank manner, 1t struck me there was an expression of great anxiety on his fea- lures. When l spoke to him on the ob- iect of my visit, he said, after little hes itation, Well, I will tell you candidly the cause of the present fall The fact is, We have lost considerably by one of our speculations, and we shall pay no divi- dend this half year, notwithstanding that we have made large profit, which we think better, however, to place as capital especially as we can now see our way to an admirable investment. If you will take my advice, while the shares are so low you should invest in them. have | done so, being fully persuaded that be- 1 fore,three months have elapsed, they will be higher than they ever have been.'

 Although" continued MT. K, "there was considerable amount of reason in all he said, declined making any further purchases from the company. True, l | deliberated for some time, when friend, who was himself largely engaged in fnan- c1ai operations, and who was aware that had invested III W.'s company, and that 1 there was no chance of dividend that half year, told me 1t was always danger. ous to be holder of shares in compa nies which proposed to pay such an enor- nous dividend, their security generally being the more doubtful in proportion as the dividend they paid was the higher. Now said he, If you really want to in- vest in q good thing, will tell you oi one. They are going to form Overend and Gurney's into company which will be as sure as the bank. will put your name down for a couple of hundred shares. if you ike-that is to say, if I can get them. for they will be much sought after; and mark my words, they will be is' sued at good premium

 Well, l followed his advice and in vested in them, and his prophecy came true At one time could have sold my shares for more than G2,00O profit. then invested in the Peruvian railways and the Credit Foncier of England, the Marseilles Improvement Company and other enterprises of the same description all of which for some time progressed admirably. Even W's company, to { great extent, recovered itself, although never to the price had paid for my shares in it. was now the possessor of very large income, and began to consider my self an adept in financial operations And now admitted my wife was correct in sending the boys to Eton.

 s'Things went on smoothly enough til one day we were to have 8 large dinner | high spirits to see how things were going on in the City, and did not return till il was barely time to dress for dinner, II fact I kept the company waiting for more than half an hour before made may ap pearance. What took place at that dinner party, or who were the guests. I cannot now remember, nor could perhaps have answered the question five minutes after they had left the house. As soon as we were alone, my wife said to me, Are you not we'll, dear? You look so pale; every body noticed 1t, and you were so silent at table. I looking at her for 0 moment and was upon the point of telling her tha' not only had in the course of the day re ceived intelligence that WIS company was found to be in state of utter insolv ency, and the money I had invested in ii was lost, but that so deplorable was the state of it's finances, that in all probabili ty should have to pay 1000 on the unpaid calls on my shares. The idea however, struck me that it would be use less to annoy my wife on such matters and merely replied that had violent headache, and would go to bed. The Peruvian Company then collapsed, and was again loser Still 1 said nothing tc my wife on the state of things. OverenG Gurney Go. stopped, and was followed by several other companies in which wal deeply involved. In fact, so agitated anc anxious did become, that I was afraid my mind would sink under 1t. -

 s'When I now look back and consider my behavior on many occasions during the time these occurrences took place, I won der how my,mind|ever could have recovered its proper tone One time when drawing check signed the bankers name to i instead of my own. Fortunately it was at the bank, and in presence of the cash iers, so that any suspicion of want of in tegrity on my part could not have arisen I now remember the cashier looking a me with peculiar, significant glance which seemed to tell me he was perfectl. we'll aware of the cause of my blunder-- the disturbed state of my mind from tn numerous losses I had lately sustained Again, when met old acquaintances il the sEreets- I could hardly remembe