The Factor was the first to suffer. The downfall of the barter trade, which Magnus predicted, had already come to pass, and the Factor's business had tumbled to pieces like an unbound faggot. There is always a good reason to kill a fat ox, and while people said, "The Factor gives the farmers what he likes for his wool and charges them what he pleases for foreign produce," the true ground of the attack upon his business had been his intimidation of the town at the time of Oscar's election.
Oddsson, the defeated candidate of that day, never rested until he had established a company on the cash principle. Even then the Factor would have borne down all opposition, for the Factor was rich while the farmers were poor, but Oddsson had secured an ally in the most powerful person. As the smith uses the tongs to spare his fingers, so Oddsson had used the Governor to save his company.
The Governor knew full well that Oddsson was his enemy, and that if his party got the upper hand they would upset the old order, but he could not resist the temptation to join him when he was trying to destroy the Factor. By his help the preferential tariff with Denmark was broken down and the Iceland markets were opened to English produce, and that was the death-blow to the barter business.
For three months the Factor kept his doors open by selling at less than cost price and buying at more than market value, but the end was sure. It was whispered at the bank that he was parting with his securities in stocks and shares and his estate in land and loose property, and that sooner or later he would come down with a crash. Nobody pitied him, and at the bottom of his tortured heart one man rejoiced.
But the smiter has often short joy of his stroke, and when Oddsson and his party, having done with trade, turned their attention to constitutional subjects the Factor, though he hated them, joined their agitation. The winter had been severe, there had been many deaths among the older members of Parliament and as often as a by-election had occurred the Factor had thrown the weight of his remaining influence and the force of his diminishing fortunes into the scale of reform. By the end of the spring it had become certain that the next session of Althing would witness the passing of a bill for the reconstruction of the Constitution and the abolition of the Governorship.
Thus each of the two men who had stood shoulder to shoulder for fifty years destroyed himself in destroying the other, and the prophecy of long ago was fulfilled that if the Governor and the Factor ever ceased to be friends they would become the bitterest of enemies.
Meantime Anna had tried to make peace and failed. When the quarrel was young, and chiefly about the children, she had attempted a tone of sympathetic protest. "Come, come, Stephen, pardon is the best punishment--you must make peace with the Factor."
"He might have saved my son by the lifting of his hand and he would not do so--I shall never make peace with him," said the Governor.
"Oscar Neilsen," said Anna, meeting the Factor in the street, "when are you coming to see Stephen? If you stay away much longer the house-dog will fly at you."
"The house-dog flew at me when I was there last, Anna--I shall never trust him again," said the Factor.