The History of a Bank.

Wairarapa Daily Times, Volume VIII, Issue 2296, 15 May 1886, Page 1 (Supplement)

The History of a Bank.

The great banking house of Bendibow Brothers, like many other great things had a modest beginning. At the beginning of the ,18th century tliero was a certain Mr Bendibow in in London, who kept a goldsmith's shop in the neighborhood of Whitechapel, and supplemented the profits of thai business by lending monoy at remunerative interest, on the security of certain kinds of personal property. To his customers and casual acquaintances he was merely a commonplace, keen, cautious, hard-headed, hardhearted man of business. Perhaps till as lately as the second decade of the century, this might have fairly represented his own opinion of himself. Nevertheless, there lurked in his character, in addition to the qualities abovc-medtioned, two 'others which are by no means commonplace, namely, imagination. and enterprise. They might have lurked thoro unsuspected till the day of his death,"but for the intervention of circu instances—to make nso of a convenient word ;of which nobody has ever explained -tha real meaning. ; ; B.ut;''iu 1711, that ingenious nobleman, the Earl of Oxford, 'being animated by\a praiseworthy'..desire, to. relieve a nightmare of half a score million sterling or so'qf';-indebted-ness, which was oprressing'tho Government, hit .upon- that,famous, scheme which has since''entered into ■ history under the name 'of-''.the South Sea Bubble. The scheme attracted .BbndU dow's attention and he studied it ■ for some time in his. usual undemonstrative, but through-going manner. •"When every'■■■otcwion ottered' he discussed it in "a n accidental and indifferent way, with all kinds.of people. At the end of 'two or three years: he probably understood more, about the affair than any man in. . London. Whether he believed that' it was a substance or a bubble will never be known to anyone except hiui&olf. All that can be affirmed is that ho minded his own business and imparted his own opinion to no-one. The opinion gradually gained ground that he shared the views of Sir Rohert Walpole, who. in the House of Commons, ■ was almost the only opposer of ...the, South Sea scheme. So matters went on until the year 1720. It was at this period that the excitement and convulsion began, The stock had risen to 330, Abraham Bindibow sat in his shop and preserved an unruffled demeanour. The stock fell to below 300; but Abraham kept his strong box locked, and went about- his business as usual. Stock mounted again to 340, but nobody perceived any ..change in Mr Bendibow. For all anyone could soe, he might never, have heard of. the South Sea scheme in his Jife, and yet a great fortune was even then in his grasp, had be chosen to stretch out his hand to take. it. : Weeks and months passed away ."and the stock kept on rising. ■" Often it would tremble and . fall, but after.each descent it climhed higher than.; before, It became the one absorbing topic of conversation with everybody except Abraham Bendibow, who composedly professed to have no concern.in.the matter; it was not for small tradesmen like him to meddle with .such'■ .large .enterprises. And meanwhile the stock rose and rose, and ro.se higher still,'';. until : men lost their heads and oilier: men made collossnl fortunes and -everybody expected to procure at least leu thousand a yeai. One day the'; stock touched 890, and then people held their breath, and even the most sanguine snid in their hearts that tins-was supernatural, and could not last.V;. On that day Abraham Bendibow. went to his private room, and taking'pen and paper he made a calculation. '.. After' having made it, lie sat for a long time ■ gazing at the little array" of figures in seeming abstraction. Then he leaned back in his chair, with one hand in the pocket of his small clothes, while with the other be slowly rubbed his chin at intervals, By degrees, he began to breathe more quickly, and his eyes bocame restless. He arose from his chair and paced up and clown the room. ■■ Eight hundred and ninety," lie kept muttering to himself, over and over again, The strong box stood in the corner of the room, and towards this box Mr Bendibow often looked. Once he approached it and laid his hand uprjn the lid; then he turned away from it with an abrupt movement compressing his lips and shaking his head. He resumed his pacing up and down the room, his head bent in deep and troubled thought. At last an idea seemed to strike him, He unlocked and opened the door of the room and called in a harsh peremptory tone, "Jacob."

A young man appeared about 20 years of age. In features he resembled the other, but his face was not so broad nor his air so commanding. Mr Bendibow motioned with his head to enter, He then seated himself in his chair and eyed Jacob for a while in silence, Jacob stood with his head stretched forward, and slowly chafing the back of one hand with the palm of the other, while his countenance wore an expression of deferential inquiry. " Jacob," said the elder," what' is doing out of doors to-day—eh ?" " The same as usual, father," anHwered Jacob tentatively aB being in some doubt whit' the question might portend. Tlmre is plenty of excitement : same us usual 1

" Excitement! on whut account J" " Well sir, the stocks terrible speculation madness nothing less. There was a fellow, sir, this very morning, got out a prospectus of a company for prosecuting» certain undertaking not at present to lie revealed; capital one million, in ten thousand shares of one hundred each, deposit two pounds, untitling to one hundred per annum per share; particulars next week, and balance of subscription the week aftor next. Frightful upon my soul, sirl" '• Has anybody bitten ?" " A good many have been bitten," returned Jacob, with a dry giggle. "Three thousand pounds were subscribed in three hours, and then the fellow decamped. Madness, upon my life !" " You would not advise having anything to do with such speculations—•ill Jacob 1" " Me I bless my soul, not I, irdeeu I" exclaimed Jacob. • "Why not 1" " In the first place, because you have disapproved of it, father." replied the virtuous Jacob, "and I may flatter my-.feif-I have inherited something of your sound judgment." "Soyou have never speculated lit all—eh Jacob ? Never at all, eh] Never bought a shilling's worth of stock of any kind- in your life—eh 1 The truth Jacob."-."' 1 "-';/.. ./.The last was pronounced in so stern i tone that Jacob changed color, turned his eyes .-first to one side of his father s pointblank gaze and then to the other. At last, however, their eyes met, and chen Jacob siid : "T-'might not lie able to.swear to a shilling or so, neither-" "■Nor to. a guinea; nor to ten; nor cp fifty—^eh Jacob ?" "Not more than fifty; upon my soul, si''," said Jacob, laying his hand on his heart, : " Not. a ptiiiny, sir; upon my word of honor I" ; '."What of the fifty then— - " [ was in the Sou'h Sea; I bought at 400," said Jacob in a low voice. "At 400! And what is it to-day?" . " Eight hundred and ninety it was this morning,".said Jacob, uttering the words with great distinctness. " Was this morning? Do you mean it has fallen since ?" ■; "It has fallen indeed, sir. They've all been selling like demons, and it's below eight hundred at this minute." . " What have you done—eh V " Sold out the first thing, sir, at four hundred and ninety per cent clear profit," replied Jacob, with something of complacency mingling with the anxious deference of his own tone, " Therefore, instead of fifty pounds, you now have three hundred or so." ." Two hundred and ninetyfive, sir,' said the youth modestly. " Jacob, you are a fool J" : ."Sir?" . " You have thrown your money away. You .ire a fool! You are timid I You have neither, the genius, the steadiness, nor the daring to manage and to multiply a Ji-eat fortune. Were ynn like myself, Jacob, you or your children might have a hand in controlling the destinies oi England, and thus of the world. You havo behaved like a pettifogger and a coward, Jacob, I do not ask you to be honest when you are sure dishonesty will enrich yon. But, whatever you are, I ask you to be that thing with all your soul. Be great or be nothing. Only fools and cowards palter about morality."

Here Mr Bendibow, who had spoken with calmness, though by no means without emphasis, checked himself, and putting his hand into his pocket drew forth a key which he handed to his son.

" Open tho strong box," he said, and take out the papers you will find in it." Jacob did at he was bid. But his first glance at the papers made him start in a bewildered manner at the countenance of his father. He then reverted to the papers, and after a close inspection of them he seemed only more bewildered than before.

. " This is the South Sea Stock, sir," be said at length. "Well, Jacob 1" said Mr Bendelow composedly. " High on fifteen thousand pounds worth at par, sir." "Yes, Jacob" I see how it is—you have been buying for someone," broke out Jacob energetically. " Evidently, Jacob." There was a pause. On commission, of course 1" hazarded Jacob. •' No commission at nil, Jacob." Jacob's jaws relaxed, "No commission 1 Whom did you buy for, sir!" " For myself, Jacob," Jacob dropped the papers on the table, and leaned against it, dizzily; his breath forsook him. Finally Mr Bendelow said, '■ Jacdh, you are more a fool than I took you for." " But bow . ~., when did you buy, sir)" faltered Jacob. " Eight or nine years ago," Mr Bendilow repliod. " Then, .... why, then you mast havo got it at undir two hundred)" " Eighty to a hundred and twenty," said Mr Bendilow curtly.

There was another pause. Jacob moistened his lips and passed his hand over his forehead. Suddenly he sere nrned out "But you haveti't sold sirl" " Well, Jacob t " If you'd sold this morning you'd havobean worth a Ivindred and thirty' five thousand sterling—one hundred and thirty-five thousand !" "Very nearly, J.icob." " And stock iff falling: yon'vn lost fifteen thousand since ten o'clock,;" shouted Jacob, now quite beside him- ; '

9 elf, He seized the papers again, and made for tlu- door, There he was stopped by an iron grasp on his arm, aiid Mr Btmdilow said, in a voice as uncompromising as his grasp, "stay whore you are. "But it's "not too Into, sir; we'll clear a hundred thousand yet," pleaded Jacob, in agony.

"Be silent and hear what, I have to say to you. When I bought this stock and paid fifteen thousand pounds for it, I made up by mind either, to lose all or to win ten times my stake. I made up my mind that my fortnme should be either one hundred and fifty thousand sterling or nothing. Through nine years I have held to my purpose. Until this hour no one has known that I have risked a penny. Men have made fortunes; 1 have seen it, and held to my purpose and held ray tongue. Men havo gone, mad with success and failure. I am the same to-day that I was ten years ago. This morning stock reached eight hundred and ninety. A thousand fools like you sold, and now it is falling, and will fall yet more, But it is my belief that it will rise again, It will rise to ono thousand. When it touches on& thousand I sell, not before and not afterwards. I shall win one hundred and fifty thousand pounds. With thatmoneylshallfound a banking houso, It will be known as the banking house of JBendibow and Son. If you and your children were men like myself the houso of Bendibow and Son would become one of the great powers of Europe. Where now we have ten thousand, in a century we shall have a million. But you are not such a man as I am. Your children and vour

'rent grand children will not be such men as I am. But I have done what [could, I have written down in a book tho rules which you are to obeyyon and all your decendants. If you disobey them, my curse will lie upon you, and.you will fail. lam not

young; and no man knows the day when he shall die: therefore lnve I called you. Jacob, and made this known to you now; because ut day or a month

hbnee might be too late. Vou are not such a man as I am, But any man can obey, ami if you will obey the rules that I have written you will not fail. Let those he wiitten upon your heart, and upon your' children's children, even unto the latest generation. There is no power iu this world so great as a fortune, greatly used; but a fool may lo3e that power in a day." Mr Bendibow had spoken these words standing erect, and with his eyes fixed steadfastly on his son. His tone was stern, solemn, and oppressive. He now said, in another tone:—" Put the papers in the strong box, Jacob, and do not speak of them to me, or to any other person, until stock is at one thousand. Come to mo then, not before, Now, go, "But, father, what if stock never reaches one thousand 1 !"

Suggested Jacob, timidly. "Then I shall have lost fifteen thousand pounds," Returned Mr Bendibow, composedly resuming his seat in his chair. " Jacob said no more, but replaced the papers in tho strong box, handed the kev to his father and left the room,"

" A (liferent man from wkfc he was when lie entered it." He could not lie an original great man, but he could appreciate and reverence original greatness; and, being instructed could faithfully catry out the behests of that greatness, Doubtless his father, who had the insight into human nature whicb generally characterises men of his sort, had perceived this, and had shaped his conduct accordingly. Nor is it impossible—the greatest, of nifm hems but men, after all—that Mr Bendilow may have taken his son into his confidence as much to guard against his own human weakness as to provide against the contingency of his death or incapacity, Proudly though he asserted the staunchness of his purpose, he bad that day felt the tug of temptation, and may have been unwilling to risk the strain unaided again. Be that as it may, it is certain that the confidence came none too soon. When the evening meal was ready Mr Bendibow did not appear:. his customary punctuality made the delay seem extraordinary so, after waiting half an Jacob went to summons him. He knocked at his door and no response came. At last he made bold to open the door, and there sat Abraham Ben. dilow in his chair with the key of the strong box in his hand, looking, in the dusk, very much like Jacob loft him three hours before, But Abraham Bendilow was dead, All his affairs were found to be in order, and, among the other contents of the strong box, was the book of rules of which he had spoken to J ncob. As to the South Sea Stock it sank and sank and Jacob's heart sank with it; when the stock had reached six hundred and forty, Jacob's heart was in his boots. Nevertheless he was faithful to bis trust and held on. Soon afterwards the agents of the Company dealt largely, and stock rose again and practically for the laat time. The hour came at last when it was quoted at one thousand, and then with a trembling delight, and with a conviction of his father's preHoienco and wisdom, that amounted to religious veneration Jacob went forth and sold ; and that night he deposited in the strong box bank notes and bullion to the amount of one hundred and i fifty thousand pounds, Such was the lieginning of the famous bouso ot : Bendibow,-" Dust;'' : .' l -