Making Haste to Be Rich! CHAPTER 7.
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"If it is a rule of the Board, that no Director shall borrow money from the Bank, what benefit am I to derive from being one of said Directors?" asked Riddell of the President, shortly after his election.
"You will understand that better after a while," replied Partridge. "A rule of this kind is a very important one, for two reasons. To the public, it gives the impression that the Directors can have no control over the funds of the bank for their own use, and thus secures confidence. And it is, in the Board, a means of restricting accommodations to a few of the Directors, who are shrewd enough to get around the rule, without appearing to violate it."
Riddell was silent and thoughtful for some moments. The eyes of Partridge were fixed intently upon him.
"Do you understand?" asked the latter, breaking in, at length, upon the young man's reverie.
"I believe I do," he replied.
"Well, what do you think of it?"
"The Citizens' Bank, if I rightly apprehend the matter, is managed, solely, for the benefit of a few, and not for the many."
"Does that surprise you?"
"It ought not, I suppose."
"But it does."
"Not greatly. I was aware that there were wheels within wheels, as you before remarked; but I own that when I came to see these wheels actually in motion, things appeared a little different from what I had expected." Mr. Partridge smiled.
"Every man must take care of himself in this world, you know," he said.
"Yes. Every man for himself — and the devil take the hindmost!" replied Riddell.
"Exactly my sentiments; and I generally act up to them. You don't suppose I would invest so large a sum in the stock of this bank, go to the trouble of having myself elected President, and look as narrowly after its affairs as I intend doing — if I did not expect to reap some benefit?"
"No, I did not suppose any such thing."
"Of course not. Men are not, as a general thing, so wonderfully devoted to the public good as to be willing to sit on boards, and attend to the business of moneyed institutions — without expecting some reward. But, you asked, just now, what benefit you were to derive from being a director. I will tell you. It will put it into your power, for instance, to favor a friend, who, in time, will favor you in some other bank. This is a single instance of the benefit that can be made to arise to you from your new position; a fact that I thought you perfectly understood."
"So I did. But, from some things you said, I was led to infer that a more direct good was to be derived from my position."
"Not so eager, my young friend — not so eager. The indirect way is the safest and the surest in the end. Money is never to be picked up in the streets. A plain and direct way, is soon filled by crowds. The indirect way, which few know to exist, and fewer still have the shrewdness to find, and having found, the nerve to walk in — is the best way. But wait for a while. I have some undeveloped schemes in my head. At the right time I will divulge them, if I think I can depend upon you as a co-worker in carrying them out. In the meantime, be content to use the facility which your position as a bank director gives you. If you play your cards right, you can easily get the use of from ten to twenty thousand dollars."
On this hint, Riddell acted.
"Have you any good paper to offer, Bradley?" he inquired a few days afterwards of a merchant whom he knew to be a director in another bank, and who was aware that he held a like position in the Citizens'. The two men were on intimate terms.
"Yes, plenty," was replied. "Why? Can you push it through your bank for me?"
"I can try."
"For which favor, no doubt — you would like me to try what I could do for you," said Bradley, smiling.
"If it can be done, as well as not," returned Riddell, affecting indifference. "But are there not three or four impracticable old fellows on your board?"
"Impracticable at times. But I have never found any difficulty in managing them. Do you keep an account in our bank?"
"No. I have not done so yet."
"You'd better open one, hadn't you?"
"I suppose I had."
"Do it; and when you've any good paper to offer, let me know, and I'll work it through for you. In the meantime, I shall take advantage of your influence in the Citizens', as long as you are kind enough to offer to stand my friend there."
"On what days does your board meet?" asked Riddell.
"On Tuesdays and Fridays."
"Tomorrow is Tuesday. I'll make a deposit of a thousand dollars today, and on Thursday I will throw in about six thousand dollars of good business paper."
"City paper?"
"About one half of it."
"You'd better get another name on the country paper."
"I prefer not asking anyone to become endorser for me."
"Mr. Ackland's name would go through our bank without a question."
"No doubt of that. But he has already paid, and assumed to pay, of his own accord, about thirty-five thousand dollars for me, and that is as much as I can reasonably ask of him. No, I wish to go along, for the present, independent of him. The paper is perfectly good."
"Where is it payable?"
"Some in St. Louis, some in Cincinnati, some in Lexington, and some in Wheeling. My name ought to carry it through; especially as I am now the son-in-law of Mr. Ackland, who will stand by me if I should happen to get into any difficulty. This is to be taken into consideration."
"Very true. Well, I'll do my best for you; and you must do the same for me."
"You may depend upon my serving you to the extent of my ability."
"Are you on good terms with Partridge?" asked Bradley.
"On the very best of terms."
"All right then. Just give him a hint that you want such and such paper to go through — and the thing is done."
Neither Riddell nor Bradley found any difficulty in pushing through the paper they wished to favor. The first operation made, the two men followed it up with others, and Riddell became easy again in money matters, for he could, without any difficulty, turn the bills of customers into cash, through the interest of his friend Bradley.
This was the beginning of his financiering operations, and on the strength of it he immediately extended his business; for he saw that, by a similar arrangement with directors in two or three other banks, he could always get as much money as he wanted.
About this time an occurrence took place, that, assailing his predominant love, tried still farther his integrity of character. A customer from the country, named Wieland, a man of honest principles, who owed him ten thousand dollars, called in one day, and bluntly told him that, on account of recent heavy losses, he was unable to meet his payments, and, on settlement of his affairs, would not be able, he feared, to pay over fifty percent of what he owed.
"That's bad; very bad," said Riddell, looking grave, as well he might; for the whole of his customer's paper had been discounted, and would have to be provided for by himself.
"It is bad, I own," was replied. "But what can't be helped, can't be. If I hadn't been cheated most outrageously, I would not have been in my present condition. But, I am here to arrange for an assignment for the mutual benefit of all. I wish to retain nothing for myself. Let my business be closed up, and all that can be got from it realized."
Riddell mused for some time. Then he asked —
"Is this matter known to your other creditors?"
"No, I have come to you first, because I owe you most."
"Very well. For the present, say nothing about it. Let me have time to think over the matter. It is a pity for you to be broken down, if there is any hope of saving you. I dislike, above all things, to see a merchant fail. It is a bad precedent, to say the least of it."
"I'm afraid, Mr. Riddell, that my case is hopeless," said the debtor.
"No, I will not admit that. But let me have twenty-four hours for reflection. Perhaps I may be able to suggest something. Call tomorrow, at this time, Mr. Wieland; and be sure not to mention what you have told me to anyone, or it will put it out of my power to serve you, as I feel strongly inclined to do."
As requested, Wieland called on the next day. Riddell received him with unexpected cheerfulness.
"I've thought about you a good deal since you were here," he said, "and it seems to me, that you ought to make an effort to struggle through. You are a man of business habits, and able to make money if you only have a chance. But, I don't believe the country is the place for you. You would stand a far better chance here."
"In this city!"
"Yes. In this city."
Wieland shook his head.
"I know you would," said Riddell positively. "A man like you should never vegetate in the country. Take my advice, and close up your business forthwith. I have thought it all over, and am satisfied that it is your very best course. I will extend your payments, and sell you as freely as before. This will enable you to meet your other notes and retain your credit unimpaired."
"But my stock will not sell here. It is for another market."
"That must be sold off. Go home, and close up everything in the quickest possible time; collect as much as you can, and then come here. In the meantime I will look out for a good store, where you can open with a fresh stock of goods. By forcing sales, you will, as a natural consequence, have to make sacrifices; but then you will get in a good deal of ready cash, the importance of which you know as well as myself."
Wieland was not carried away at once by this proposition; but Riddell met every objection, and pointed out the advantages of a city over a country business, in such strong colors, that he at last yielded, and announced his intention of closing up where he was, and removing to the city. To everyone who alluded to the subject, Riddell spoke in terms of approval, and said that Wieland was a man of the right stamp, and would soon make his weight felt in the community.
When Wieland at last came, Riddell sold him goods freely, and others, on the strength of his example, did the same. For four or five months, the victim, for such in reality he was to be, had free play, and then Riddell began to draw in with a steady hand. He required heavier and heavier reduction upon each renewal of the old account, and managed to diminish the amount of sales to Wieland, and drive him to other businesses, for the purchase of goods. This went on until, finally, Riddell declined to sell to him at all, but was very careful not to let a whisper of the fact get wind.
The cause of this change, Wieland could not at first understand. He was too honest himself to suspect the real truth, and hurt that one who had so befriended him, and towards whom he entertained such a lively feeling of gratitude — should, from any cause, alter the good opinion he had once held. What added still more to the pain he felt, was the fact, that he was getting once more embarrassed, and could not see clearly his way through his difficulties. Half of the amount originally due Riddell had been paid, and the new indebtedness was but small, the bulk of Wieland's purchases, for over six months, having been from other businesses.
Painful as it was, poor Wieland, no very long time after Riddell had virtually refused to credit him any longer, was obliged to ask an extension of the entire balance of the old indebtedness, which stood at five thousand dollars.
"Renew the whole! It is out of the question, Mr. Wieland," replied Riddell, expressing surprise at such a proposition. "The fact is, I am so pressed for money, that I don't see how I can help you at all. Your note is discounted, and, therefore, beyond my control. I was compelled to realize on it. It is unfortunate, but there is no help for it."
"You know that I can't pay the whole amount of your note, Mr. Riddell," said the distressed debtor.
"How would I know it? But that is neither here nor there. The paper has been discounted, and I shall not be able to lift it."
"You can get my note through bank again."
"While this remains unpaid, it would be folly to offer your paper again."
"If I can succeed in borrowing the amount required," said Wieland, after thinking hurriedly for a moment, "would you be willing, after the present note is lifted, to offer another for, say, four thousand, five hundred dollars, and hand me the proceeds?"
"Certainly," was the prompt answer.
"Is there a reasonable hope that the discount will be obtained?"
"I think so."
"It will not do to have any uncertainty in a matter like this, Mr. Riddell."
"I can obtain the money on your note without doubt. I always get what I ask for."
With this assurance, Wieland borrowed, from various sources, enough to lift his note. On the day after it was taken up, he called upon Riddell with a new note at sixty days for four thousand, five hundred dollars.
"When will it be done?" he asked.
"The discount day in the bank where I intend offering it, is the day after tomorrow."
"On Saturday, then, I can get the money?"
"Yes, I presume so."
There was something in Riddell's manner, that Wieland did not like. After he went out, the "enterprising" young merchant laid the note carefully away in a great pocket-book, where it remained, undisturbed, until Saturday morning. Wieland came in about nine o'clock with a look of anxiety on his face.
"Have you got the money for me, Mr. Riddell," he said.
"I am sorry to say no, Mr. Wieland," was replied. "Most unexpectedly to me, your note was thrown out. One of the directors, to whom I complained of the matter, said that the offerings yesterday were three times as large as they could venture to discount."
Poor Wieland became very pale, and with a feeling of hopelessness, dropped into a chair.
"Two-thirds of the amount borrowed must be returned today," he said. "It is positively promised."
"I'm sorry; but cannot help it," coldly responded Riddell.
"Two thousand belong to Bradford and Jordan. Jordan let me have it on the express assurance that I would return it this morning. He said it was money that had been accumulating for some time to pay a note given for machinery that falls due today. I would not fail in my promise for the world. It might prove their ruin."
"That's bad," remarked Riddell, "very bad. Jordan did not act wisely."
"He acted on the strength of your assurance to me, that my note would be discounted."
"But didn't he know, and didn't you know, that no positive calculation is to be made on a discount in bank? I could only offer your note; I could not compel its passage through the board."
"Will you offer it again?" asked Wieland.
"Yes," was replied indifferently. "I have no objection to try it for you again; but I have my doubts of being able to get it done. Money has become scarce all at once."
"Mr. Riddell," said the unfortunate man, speaking with emphasis, "you must not leave me in this unhappy predicament. You must not allow me to become the instrument of ruinto those who have generously assisted me in paying my indebtedness to you. Doubtless you can, if you will, lend me at least enough to return the amount borrowed of Bradford and Jordan, and repay yourself when my note is discounted."
"I don't know," replied Riddell, with the air of a man who felt offended, "I have done all I promised to do, and that is everything you have to expect."
"You will not, then, lend me enough to return what is due to Bradford and Jordan?" said Wieland.
"I have use for all my money," was returned coldly.
"Mr. Riddell," said the distressed, yet indignant Wieland, who felt that he was betrayed, "If I am made the instrument of injury to these men — you will be the guilty cause."
"Mr. Wieland," returned Riddell, opening his desk as he spoke and taking therefrom a slip of paper, "Here is your note; take it. The thanks I get for having stood your friend, is your insults."
"God help all who expect to live by your friendship," replied Wieland with bitterness, as he took the little piece of paper and looked at it attentively for a moment. "It is all plain now. My note has never been in bank."
"It is false!" exclaimed Riddell, while a flush that betrayed his treachery, mantled his face.
"I have double evidence of what I affirm," replied Wieland, looking sternly upon the man who had held him up until he could secure his own — and then let him fall without a sigh over his ruin. "Basely betrayed!" he added — "basely betrayed; and under the guise of sympathy!"
"Will you please to leave my store, sir!" said Riddell, recovering his self-possession.
Wieland hesitated a moment, as if he were about to add something more; but feeling, perhaps, the utter folly of giving further vent to what was in his mind, he turned away quickly and left the store. As he retired, Riddell muttered:
"That's all over. My ten thousand dollars are safe. Let others look to their own interests. I'm sorry for my old friend Jordan; but I can't help it. He should know better than to lend so much money to a man about whose real standing, he knew nothing. But it's just like him."
He did not name Bradford, even mentally; but rather forced himself not to think of him at all. As heartless as he was, he could not bear the thought of Anne's father to come into his mind, and with it, the consciousness that, in securing his own selfish ends, he had again done him an injury.
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