Returning from the South a few weeks after the events narrated in the previous chapter, Frank and I were met at Goldsboro by Preston and Selma, when the latter accompanied us to the North, and once more resumed her place in David's family.
On the first of February following, Frank, then not quite twenty-one, was admitted a partner in the house of Russell, Rollins, & Co., and, in the succeeding summer, was sent to Europe on business of the firm. Shortly after his return, in the following spring, he came on from Boston with a proposal from Cragin that I should embark with them and young Preston in an extensive speculation. Deeming any business in which Cragin was willing to engage worthy of careful consideration, I listened to Frank's exposition of the plan of operations. He had originated the project, and in it he displayed the comprehensive business mind and rare blending of caution and boldness which characterized his father. As the result of this transaction had an important influence on the future of some of the actors in my story, I will detail its programme.
It was during the Crimean war. The Russian ports were closed, and Great Britain and the Continent of Europe were dependent entirely on the Southern States for their supply of resinous articles. The rivers at the South were low, and it was not supposed they would rise sufficiently to float produce to market before the occurrence of the spring freshets, in the following April or May. Only forty thousand barrels of common rosin were held in Wilmington—the largest naval-store port in the world; and it was estimated that not more than two hundred thousand were on hand in the other ports of Savannah, Ga., Georgetown, S. C., Newbern and Washington, N. C., and in New York, Boston, and Philadelphia. Very little was for sale in London, Liverpool, or Glasgow, the largest foreign markets for the article; and Frank thought that a hundred and fifty thousand barrels could be purchased. That quantity, taken at once out of market, would probably so much enhance the value of the article, that the operation would realize a large profit before the new crop came forward. The purchases were to be made simultaneously in the various markets, and about two hundred thousand dollars were required to carry through the transaction. One hundred thousand of this was to be furnished in equal proportions by the parties interested; the other hundred thousand would be realized by Joseph Preston's negotiating 'long exchange' on Russell, Rollins & Co.
I declined to embark in the speculation, but the others carried it out as laid down in the programme; the only deviation being that, at Frank's suggestion, Mr. Robert Preston was apprised of the intended movement, and allowed to purchase, on his own account, as much produce as could be secured in Newbern. He bought about seven thousand barrels, paid for them by drawing at ninety days on Russell, Rollins, & Co., and held them for sale at Newbern, agreeing to satisfy his drafts with the proceeds. These drafts amounted to a trifle over eighty-two hundred dollars.
About a month after this transaction was entered into, our firm received the following letter from Preston:
'Gentlemen: An unfortunate difference with my son prevents my longer using him as my indorser. I have not, as yet, been able to secure another; and, our banks requiring two home names on time drafts, I have to beg you to honor a small bill at one day's sight. I have drawn for one thousand dollars. Please honor.'
To this I at once replied:
'Dear Sir: We have advice of your draft for one thousand dollars. To protect your credit, we shall pay it; but we beg you will draw no more, till you forward bills of lading.
'You are now overdrawn some five thousand dollars, which, by the maturing of your drafts, has become a cash advance. The death of our senior, Mr. Randall, and the consequent withdrawal of his capital, has left us with an extended business and limited means. Money, also, is very tight, and we therefore earnestly beg you to put us in funds at the earliest possible moment.'
No reply was received to this letter; but, about ten days after its transmission, Preston himself walked into my private office. His clothes were travel stained, and he appeared haggard and careworn. I had never seen him look so miserably.