The Financier by Theodore Dreiser

He was not long in wonder. A second despatch posted on ‘change read: “New York, September 18th. Jay Cooke & Co. have suspended.”

Cowperwood could not believe it. He was beside himself with the thought of a great opportunity. In company with every other broker, he hurried into Third Street and up to Number 114, where the famous old banking house was located, in order to be sure. Despite his natural dignity and reserve, he did not hesitate to run. If this were true, a great hour had struck. There would be widespread panic and disaster. There would be a terrific slump in prices of all stocks. He must be in the thick of it. Wingate must be on hand, and his two brothers. He must tell them how to sell and when and what to buy. His great hour had come!

Chapter LIX

The banking house of Jay Cooke & Co., in spite of its tremendous significance as a banking and promoting concern, was a most unpretentious affair, four stories and a half in height of gray stone and red brick. It had never been deemed a handsome or comfortable banking house. Cowperwood had been there often.

Wharf-rats as long as the forearm of a man crept up the culverted channels of Dock Street to run through the apartments at will.

Scores of clerks worked under gas-jets, where light and air were not any too abundant, keeping track of the firm’s vast accounts.

It was next door to the Girard National Bank, where Cowperwood’s friend Davison still flourished, and where the principal financial business of the street converged. As Cowperwood ran he met his brother Edward, who was coming to the stock exchange with some word for him from Wingate.

“Run and get Wingate and Joe,” he said. “There’s something big on this afternoon. Jay Cooke has failed.”

Edward waited for no other word, but hurried off as directed.

Cowperwood reached Cooke & Co. among the earliest. To his utter astonishment, the solid brown-oak doors, with which he was familiar, were shut, and a notice posted on them, which he quickly read, ran: September 18, 1873.

To the Public—We regret to be obliged to announce that, owing to unexpected demands on us, our firm has been obliged to suspend payment. In a few days we will be able to present a statement to our creditors. Until which time we must ask their patient consideration. We believe our assets to be largely in excess of our liabilities.

Jay Cooke & Co.

A magnificent gleam of triumph sprang into Cowperwood’s eye. In company with many others he turned and ran back toward the exchange, while a reporter, who had come for information knocked at the massive doors of the banking house, and was told by a porter, who peered out of a diamond-shaped aperture, that Jay Cooke had gone home for the day and was not to be seen.

“Now,” thought Cowperwood, to whom this panic spelled opportunity, not ruin, “I’ll get my innings. I’ll go short of this—of everything.”

Before, when the panic following the Chicago fire had occurred, he had been long—had been compelled to stay long of many things in order to protect himself. To-day he had nothing to speak of—

perhaps a paltry seventy-five thousand dollars which he had managed to scrape together. Thank God! he had only the reputation of Wingate’s old house to lose, if he lost, which was nothing. With it as a trading agency behind him—with it as an excuse for his presence, his right to buy and sell—he had everything to gain.

Where many men were thinking of ruin, he was thinking of success.

He would have Wingate and his two brothers under him to execute his orders exactly. He could pick up a fourth and a fifth man if necessary. He would give them orders to sell—everything—ten, fifteen, twenty, thirty points off, if necessary, in order to trap the unwary, depress the market, frighten the fearsome who would think he was too daring; and then he would buy, buy, buy, below these figures as much as possible, in order to cover his sales and reap a profit.

His instinct told him how widespread and enduring this panic would be. The Northern Pacific was a hundred-million-dollar venture.

It involved the savings of hundreds of thousands of people—small bankers, tradesmen, preachers, lawyers, doctors, widows, institutions all over the land, and all resting on the faith and security of Jay Cooke. Once, not unlike the Chicago fire map, Cowperwood had seen a grand prospectus and map of the location of the Northern Pacific land-grant which Cooke had controlled, showing a vast stretch or belt of territory extending from Duluth—“The Zenith City of the Unsalted Seas,” as Proctor Knott, speaking in the House of Representatives, had sarcastically called it—through the Rockies and the headwaters of the Missouri to the Pacific Ocean.

He had seen how Cooke had ostensibly managed to get control of this government grant, containing millions upon millions of acres and extending fourteen hundred miles in length; but it was only a vision of empire. There might be silver and gold and copper mines there. The land was usable—would some day be usable. But what of it now? It would do to fire the imaginations of fools with—nothing more. It was inaccessible, and would remain so for years to come. No doubt thousands had subscribed to build this road; but, too, thousands would now fail if it had failed. Now the crash had come. The grief and the rage of the public would be intense. For days and days and weeks and months, normal confidence and courage would be gone. This was his hour. This was his great moment. Like a wolf prowling under glittering, bitter stars in the night, he was looking down into the humble folds of simple men and seeing what their ignorance and their unsophistication would cost them.

He hurried back to the exchange, the very same room in which only two years before he had fought his losing fight, and, finding that his partner and his brother had not yet come, began to sell everything in sight. Pandemonium had broken loose. Boys and men were fairly tearing in from all sections with orders from panic-struck brokers to sell, sell, sell, and later with orders to buy; the various trading-posts were reeling, swirling masses of brokers and their agents. Outside in the street in front of Jay Cooke & Co., Clark & Co., the Girard National Bank, and other institutions, immense crowds were beginning to form. They were hurrying here to learn the trouble, to withdraw their deposits, to protect their interests generally. A policeman arrested a boy for calling out the failure of Jay Cooke & Co., but nevertheless the news of the great disaster was spreading like wild-fire.

Among these panic-struck men Cowperwood was perfectly calm, deadly cold, the same Cowperwood who had pegged solemnly at his ten chairs each day in prison, who had baited his traps for rats, and worked in the little garden allotted him in utter silence and loneliness.

Now he was vigorous and energetic. He had been just sufficiently about this exchange floor once more to have made his personality impressive and distinguished. He forced his way into the center of swirling crowds of men already shouting themselves hoarse, offering whatever was being offered in quantities which were astonishing, and at prices which allured the few who were anxious to make money out of the tumbling prices to buy. New York Central had been standing at 104 7/8 when the failure was announced; Rhode Island at 108 7/8; Western Union at 92 1/2; Wabash at 70 1/4; Panama at 117 3/8; Central Pacific at 99 5/8; St. Paul at 51; Hannibal & St. Joseph at 48; Northwestern at 63; Union Pacific at 26 3/4; Ohio and Mississippi at 38 3/4. Cowperwood’s house had scarcely any of the stocks on hand. They were not carrying them for any customers, and yet he sold, sold, sold, to whoever would take, at prices which he felt sure would inspire them.

“Five thousand of New York Central at ninety-nine, ninety-eight, ninety-seven, ninety-six, ninety-five, ninety-four, ninety-three, ninety-two, ninety-one, ninety, eighty-nine,” you might have heard him call; and when his sales were not sufficiently brisk he would turn to something else—Rock Island, Panama, Central Pacific, Western Union, Northwestern, Union Pacific. He saw his brother and Wingate hurrying in, and stopped in his work long enough to instruct them. “Sell everything you can,” he cautioned them quietly, “at fifteen points off if you have to—no lower than that now—and buy all you can below it. Ed, you see if you cannot buy up some local street-railways at fifteen off. Joe, you stay near me and buy when I tell you.”

The secretary of the board appeared on his little platform.

“E. W. Clark & Company,” he announced, at one-thirty, “have just closed their doors.”

“Tighe & Company,” he called at one-forty-five, “announce that they are compelled to suspend.”