Early in July came the panic. It seemed as if over night all the money in the country had disappeared. In Wall Street fabulous rates were bid for money. Banks and bankers said they had none. Where was it?
When the stock market collapsed and values had depreciated hundreds of millions, money was found by the large insurance companies and the powerful factors of Wall Street to pick up the bargains in shares, but it was some time before merchants could get it. Meanwhile, this class all over the country, after a long period of good times, were caught by the panic with their lines greatly extended. Great houses rating "a million and over" had no actual cash. Property?—Lots of it. Solvent?—Absolutely so, but they could not pay their obligations, nor take deliveries on contracts that required payments against delivery.
Our sales for July delivery amounted to nearly a million of dollars; less than fifty thousand was taken according to contract. The rest we had to carry and our bankers had to carry us. We shall never cease to be grateful for the generous help they gave us in that critical period.
Under these financial conditions it was only natural that all merchandise markets should be greatly depressed.
Our market was weak at eighteen cents, although not a pound could now be imported below twenty-two cents. The large stock seemed to hang as a wet blanket, but as a fact most of it was concentrated in three strong hands. We were the largest holders. I called on the other two and told them it was absurd to sell at the ruling price, and if they would assure me we would not have to take their stock—in other words, if they would hold it off the market—we would buy the floating lots and advance the price close to the importing point. I further offered to give them an equal share of the purchases if they so desired. They asked how much I thought we would have to buy? To which I replied, "Not over five hundred tons."
The agreement was made on the basis of an equal division of the purchases. Slowly but steadily we raised the price, and when the end we sought was accomplished we had bought four hundred and ninety tons. The operation and consequent advance in the market made a difference in the value of our holdings of seventy thousand dollars.
CHAPTER XXXIII
FAREWELL TO "REDSTONE"
All through the summer of 1893 we had been discussing the advisability of leaving "Redstone" and taking up a permanent residence in New York.
Our children were now at a period when good schools were imperative for their proper education, and such did not exist at Knollwood. Our social life was almost entirely with our New York friends, and though two families of the "Immortal Ten" had become residents of Knollwood they were to leave at the end of the term for which they had rented. The Banfords occupied "Sunnyside," while George Lawton, who had removed to Orange, rented his house to the Todds.