CHAPTER IV.

BUSINESS LIFE.

On my return home from Australia and South America I entered my father's office. It was noted for hard work and late hours. The principals seldom left for home before seven and eight in the evening, and on Friday nights, when we wrote our cotton circular, and despatched our American mail, it was usually eleven o'clock before we were able to get away, and many of the juniors had to work all night. In those days everything was done by correspondence, and mail letters often ran to a great length, frequently ten and twelve pages; and unfortunately the principals wasted much of their time in the middle of the day. The morning's work always commenced with reading the letters aloud by the head clerk, and afterwards the principals gave instructions as to replies to be sent, and laid out the work for the day.

In those times the business of a merchant's office was much more laborious, and the risks they ran were greater and longer than they are to-day, when we have the assistance of telegraphic communication with all the world. We often refer to the good old days, but they were days of much anxiety and hard work, and I doubt if the profits were as large; the risks were certainly much greater, and added to this there was a constant recurrence of panics. We had a money panic almost every ten years, 1847, 1857, 1866, of the severity of which we to-day can form very little idea. It was not merely that the bank rate advanced to eight, nine, and even ten per cent., but it was impossible to get money at any price. Bank bills were not discountable, and all kinds of produce became unsaleable. In addition to these great panics we had frequent small panics of a very alarming character. I well remember the panics of 1857 and 1866; the intense anxiety and the impossibility of converting either bills or produce into cash.

The main cause of all these troubles was that the banks kept too small reserves, and the provisions of the Bank Charter Act of Sir Robert Peel were too rigid. The object of the Act was to secure the convertibility of the bank note into gold, and it would no doubt have worked well had sufficient reserves been kept, but practically the only reserve of gold was in the Bank of England, and this was frequently allowed to fall as low as five or six million in notes. All other institutions, both banks and discount houses, depended upon this reserve, and employed their entire resources, relying upon discounting with the Bank of England in an emergency. This emergency arose about every ten years. The Bank of England was unable to meet the demand--a panic took place, and the bank had to apply to the Government to suspend the Bank Act, and allow it to issue bank notes in excess of the amount allowed by the Act. All this took time, the suspense was terrible, and many banks and honest traders were cruelly ruined. Immediately the Act was suspended the panic disappeared as if by magic, and traders began to breathe freely again.

Happily far larger reserves are now held by all banks, and banking business is also conducted on more prudent lines, and trade generally is worked on a sounder basis; payment by bills is now the exception; margins and frequent settlements on our produce exchanges prevent undue speculation, and the system of arbitration now universal has put a stop to the constant litigation which was a frequent cause of contention and trouble and loss of valuable time.

I was admitted a partner in my father's firm on the 1st January, 1862. The previous year had been a very successful one. My brother Arthur had visited America, and believing that war between the North and South was inevitable, had bought cotton very heavily, upon which the firm realised handsome profits. But it was at the expense of my father's health; the anxiety was too much for him, and this, coupled with my mother's death on the 1st August, 1861, so prostrated him, that he was ordered to take a sea voyage, and it was arranged that I should accompany him.

VOYAGE IN THE "GREAT EASTERN."

On the 7th September, 1861, we embarked on board the steamer "Great Eastern," for New York, the Liverpool dock walls being lined with people to see the great ship start. She was far and away the largest vessel built up to that time, being 679 feet long, 83 feet beam, 48 feet deep, with a tonnage of 18,915; she was propelled by two sets of engines, paddle and screw. It was a memorable voyage. Three days out we encountered a heavy gale, which carried away our boats, then our paddle wheels. Finally our rudder broke, and the huge ship fell helplessly into the trough of the sea. Here we remained for three days, rolling so heavily that everything moveable broke adrift, the saloon was wrecked, and all the deck fittings broke loose. Two swans and a cow were precipitated into the saloon through the broken skylights. The cables broke adrift, and swaying to and fro burst through the plating on one side of the ship. The captain lost all control of his crew, and the condition of things was rendered still more alarming by the men breaking into the storerooms and becoming intoxicated. Some of the passengers were enrolled as guards; we wore a white handkerchief tied round our arms, and patrolled the ship in watches for so many hours each day.

My father was badly cut in the face and head by being thrown into a mirror in the saloon, during a heavy lurch. I never knew a ship to roll so heavily, and her rolls to windward were not only remarkable but very dangerous, as the seas broke over her, shaking her from stem to stern, the noise reverberating through the vessel like thunder. We remained in this alarming condition three days, when chains were fixed to our rudder head and we were able with our screw-engines to get back to Queenstown. My father returned home, not caring to venture to sea again, but I embarked on board the "City of Washington," of the Inman Line, and after a sixteen-day passage arrived in New York.

An amusing incident occurred during the height of the storm we experienced in the "Great Eastern." We were rolling heavily, the condition of the great ship was serious and much alarm was naturally felt. At this juncture a small brig appeared in sight under close-reefed sails. As she rode over the big seas like a bird without taking any water on board, we could not help contrasting her seaworthiness with the condition of our giant ship, which lay like a log at the mercy of the waves. The brig seeing our position bore down upon us and came within hailing distance. My father instructed Captain Walker, of the "Great Eastern," to enquire if she would stand by us, and to offer her master £100 per day if he would do so, but no answer came. The little vessel sailed round us again and again, and the next time she came within hailing distance my father authorised Captain Walker to say he would charter the ship, or if necessary buy her, so anxious was he that she should not leave us. She continued to remain near us all day, and then the weather moderating she sailed away on her voyage. Two years afterwards the captain of the brig called at the office, saying he had been told by a passenger that Mr. Forwood had offered him £100 per day for standing by the "Great Eastern," and claiming £200, two days' charter money. I need not say he was not paid, but I think my father made him a present.

ARRESTED IN NEW YORK IN 1861.

On my arrival in New York I was arrested, searched, and confined in the Metropolitan Police Station while communications passed with Washington. On my demanding to be informed of the reason of my detention, the Chief of Police told me that an Englishman had been hanged by President Jackson for less than I had done; this was not very cheerful, and he added he expected orders to send me to Fort Lafayette--the place where political prisoners were detained--but he declined to give any reason. I was however released the following day, but kept under the surveillance of the police, which became so intolerable that I went to Canada, and returned home through New Brunswick to Halifax. The journey from Quebec over the frozen lake Temiscuata, through Fredericton to St. John's, was made on sleighs. I slept one night in the hut of a trapper, another at a log hut on a portage where I was detained for a day by a snowstorm. An amusing incident happened on this journey. At Grand Falls I was called upon by the Mayor, who wished, he said, to show me some attention and prove his loyalty to the old country, as he understood I was an envoy going from the Southern States to England. I told him he was mistaken, but he would not accept my denial, and insisted on driving me part of the way in his own magnificently appointed sleigh, and giving me a supper at a place called Tobique. At Halifax another incident befel me. The hotel in which I stayed was burnt down in the night. I escaped with my luggage, but none too soon, for the hotel was only a wooden erection and the fire very quickly destroyed it.

On our arrival home at Queenstown, we heard with great sorrow of the death of the Prince Albert, and of the probability of war between England and America, arising out of the "Trent" affair. I received a communication from the War Office, requesting me to send full notes of my journey across New Brunswick, giving approximately the size of the villages and farm buildings I observed, as it was proposed to march 10,000 British troops up by this route to protect Canada.

The reason of my arrest in New York was, I learned, that the authorities believed that I was conveying despatches and money and intended to cross the military lines and enter the Southern States. My father's firm being largely engaged in business with the South, there was some foundation for this impression. I should add that I received through Secretary Seward an expression of President Lincoln's regret that I should have been subjected to arrest, and an intimation that if I visited Washington he would be glad to see me, but I was then in Canada and did not care to return to the United States.

Political feeling ran very high in New York. I was passing one afternoon the St. Nicholas Hotel, Broadway, when I heard someone call out "Sesesh" (which meant a Southerner), and a man fell, shot down almost at my feet.

LEECH, HARRISON AND FORWOOD.

The business of the firm of Leech, Harrison and Forwood was mainly that of commission merchants, and receiving cotton and other produce for sale on consignment. It was an old firm with the best of credit, and a good reputation. The business was large but very safe, and we never speculated. I was very proud of the old concern. The business was founded in 1785 by Mr. Leech, who took into partnership Mr. James Harrison, whom I remember as a cadaverous looking old gentleman with a wooden leg, and as he always wore a white cravat his nickname of "Death's Head and a Mop Stick" was not inappropriate. He retired about 1850.

Shortly after I was admitted a partner my father's health became indifferent, and at his wish we bought him out of the firm and took over the business. We decided to also become steamship owners, and by arrangement with a firm in Hartlepool we became the managing owners of several steamers, which we put into the West Indian trade in opposition to Mr. Alfred Holt. We had not been very long in the trade before the principal shippers, Imrie and Tomlinson and Alex. Duranty and Co., also formed a line of steamers, and it seemed at the moment as if we must be crushed out of the trade, the opposition was so formidable; but with the dogged determination so characteristic of my brother Arthur we persevered, and in the end forced both our competitors to join us. We then formed a large company, the West Indian and Pacific Co., which was an amalgamation of the three concerns, my firm retaining the management. The business rapidly grew and separate offices had to be taken. For nine years my brother devoted his time to the management of the steamship company, leaving me to work our own business. It was a heavy responsibility for one so young. Our capital was small, and our business in cotton and in making advances upon shipping property very active, but we were well supported by our bankers, Leyland and Bullins. I was a neighbour of Mr. Geo. Arkle, the managing partner, and shall be ever grateful for the confidence he reposed in us. I remember his sending for me in 1866, telling me that we were face to face with a panic, and as he wanted us to feel comfortable we must cheque upon the bank and take up all our acceptances against shipping property. The system of banking was then very much a matter of confidence. During the whole of my business career we never gave our bankers any security. Mr. Arkle perhaps carried this principle too far. I remember his refusing to open an account for a man who was introduced to my firm by highly respectable people in America, and who had brought with him a draft on Barings for £80,000 as his capital, Mr. Arkle requiring that my brother and I should ask him to open the account as a guarantee to him that we were satisfied as to the man's character, to which he attached more value than to his capital. About the year 1870 we admitted my brother Brittain into partnership. Prior to this we opened a house in Bombay, which was managed by my old school friend, G. F. Pim, who was afterwards joined by my brother George.

We retained the management of the West Indian and Pacific Co. for nine years. The company had prospered under our care, the shares were at a premium, and the directors were willing to renew our agreement; but they wanted my brother Arthur to promise to devote less of his time to politics; this he was unwilling to do, and so our connection ceased. It was an unfortunate thing for the firm, but luckily we sold out our shares at a substantial premium, and formed a new company, the Atlas Company, to run steamers between New York and the West Indies, my brother still devoting his time to the Atlas Company's interests, and I attending to the general business. At this I worked very hard, from early morning to late in the evening, taking only a fortnight's holiday each year. The business of the firm prospered greatly. At first our principal business was receiving consignments of cotton, but these led to such large reclamations, which were seldom paid by the consignors, that we were on the alert to find some other way of working our cotton trade, and a visit I made to Mobile to collect reclamations revealed to me a secret which for years gave us large profits. I stayed in Mobile with a Mr. Maury, and found that he was the holder of a very large stock of cotton, against which he sold cotton for future delivery, which always commanded a substantial premium in New York. When the time for delivery came round, he tendered the cotton he had bought; in this way he made a certain and a handsome profit over and above the holding expenses. What was possible in New Orleans was, I thought, possible in Liverpool, and on my return home we commenced this cotton banking business. It was very profitable, and for some time we had it all to ourselves.

When we started the Atlas Line in New York, we opened a house under the title of Pim, Forwood and Co., Mr. Pim leaving Bombay for New York, my brother George at the same time opening a house for us in New Orleans. George Pim died in 1878, and my brother George moved from New Orleans to New York. Here he remained until 1885, when he entered the Liverpool firm, and my brother Brittain took his place in New York; Brittain retired in 1885.

Looking back over my business career, it was a period of strenuous hard work, but of much happiness and great prosperity. It was always a matter of regret to us that we had not more of the active co-operation of my brother Arthur, who was a man of singular ability and remarkable power of organisation. Unfortunately for the firm, from a very early period in our partnership he devoted most of his time to politics, which led to his eventually becoming a member of the House of Commons, and in a very short period Secretary to the Admiralty. In this office, which he held for six years, he did most excellent work. To use the words of the then First Lord of the Admiralty--Lord George Hamilton--he made it possible to build a ship of war in twelve months when it had previously taken four and five years. The fusion of the Conservative and Unionist parties prevented my brother's advance to Cabinet rank. He was one of the ablest men I ever knew, but he had not the faculty of delegating his work; this and his overmastering determination to carry out everything to which he put his hand, entailed upon him an amount of personal work and thought which few men could have borne, and which in the end proved even more than he could support without loss of nervous power. I was his partner for twenty-five years and we never had a serious difference of any kind. He was a candidate for the representation of Liverpool in Parliament in 1882, but was defeated by Mr. Samuel Smith. He afterwards was elected member for the Ormskirk division, which he represented at the time of his death in 1898. He was made a Privy Councillor and afterwards created a baronet.

Liverpool owes much to him, for in every position which he filled, as Chairman of the Finance Committee and of the Health Committee, and as a Member of Parliament, he did a great work for the city. In politics he was _facile princeps_, a born leader of men; he built up the Conservative party in Lancashire, and kept it together in face of many difficulties.

It was impossible that a man with such a strong individuality and determination could avoid making some enemies. He always tried to reach his goal by the nearest road, even if in doing so he had to tread upon susceptibilities which might have been conciliated, but withal he was one of the ablest men Liverpool has produced in recent years; he had at heart the good of his native city, and no sacrifice of time or thought was too much if he could only benefit Liverpool or promote the welfare of the Conservative party. His statue, erected by public subscription, stands in St. John's Gardens, and each year on the anniversary of his death a wreath of laurels is placed at its foot by the Constitutional Association--"Though dead, his spirit still lives."

In 1890 I retired from business at the age of 50. I was tired with the fag and toil of twenty-five years' strenuous work, but it was a mistake to retire. The regular calls of one's own affairs are less trying than the irregular demands of public work. _Punch's_ advice to those about to marry, "Don't," is equally applicable to those about to retire from business.