Chapter 12

A CORNER IN DIAMONDS.

John Girdlestone propounded his intention with such dignity and emphasis that he evidently expected the announcement to come as a surprise upon his son. If so, he was not disappointed, for the young man stared open-eyed.

"A corner in diamonds!" he repeated. "How will you do that?"

"You know what a corner is," his father explained. "If you buy up all the cotton, say, or sugar in the market, so as to have the whole of it in your own hands, and to be able to put your own price on it in selling it again--that is called making a corner in sugar or cotton. I intend to make a corner in diamonds."

"Of course, I know what a corner is," Ezra said impatiently. "But how on earth are you going to buy all the diamonds in? You would want the capital of a Rothschild?"

"Not so much as you think, my boy, for there are not any great amount of diamonds in the market at any one time. The yield of the South African fields regulates the price. I have had this idea in my head for some time, and have studied the details. Of course, I should not attempt to buy in all the diamonds that are in the market. A small portion of them would yield profit enough to float the firm off again."

"But if you have only a part of the supply in your hands, how are you to regulate the market value? You must come down to the prices at which other holders are selling."

"Ha! Ha! Very good! very good!" the old merchant said, shaking his head good-humouredly. "But you don't quite see my plan yet. You have not altogether grasped it. Allow me to explain it to you."

His son lay back upon the sofa with a look of resignation upon his face. Girdlestone continued to stand upon the hearth-rug and spoke very slowly and deliberately, as though giving vent to thoughts which had been long and carefully considered.

"You see, Ezra," he said, "diamonds, being a commodity of great value, of which there is never very much in the market at one time, are extremely sensitive to all sorts of influences. The value of them varies greatly from time to time. A very little thing serves to depreciate their price, and an equally small thing will send it up again."

Ezra Girdlestone grunted to show that he followed his father's remarks.

"I did some business in diamonds myself when I was a younger man, and so I had an opportunity of observing their fluctuations in the market. Now, there is one thing which invariably depreciates the price of diamonds. That is the rumour of fresh discoveries of mines in other parts of the world. The instant such a thing gets wind the value of the stones goes down wonderfully. The discovery of diamonds in Central India not long ago had that effect very markedly, and they have never recovered their value since. Do you follow