Alan Lloyd had a phone conversation with J. P. Morgan, and agreed that Kane and Cabot should join a group of banks who would try to shore up the national collapse in major stocks. William did not disapprove of this policy, on the grounds that if there had to be a group effort, Kane and Cabot should be responsibly involved in the action. And, of course, if it worked, all the banks would be better off. Richard Whitney, the vice - president of the New York Stock Exchange and the representative of the group Morgan had put together, went on the floor of the New York Stock Exchange and purchased thirty million dollars worth of blue - chip stocks the next day. Ile market began to hold. Twelve million, eight hundred and ninety - four thousand, six hundred and fifty shares were traded that day, and for the next two days the market held steady.
Everyone, from President Hoover to the runners in the brokerage houses, believed that the worst was behind them.
William had sold nearly all of his private stock and his personal loss was proportionately far smaller than the bank's, which had dropped over three million dollars in four days; even Tony Simmons had taken to following all of William's suggestions. On 29 October, Black Tuesday as the day came to be known, the market fell again. Sixteen rnillion, six hundred and ten thousand and thirty shares were traded. Banks all over the country knew that the truth was, that they were now insolvent. If every one of their customers demanded cash - or if they in turn tried to call in all their loans - the whole banking system would collapse around their ears. A board meeting held on 9 November opened with one minute's silence in memory of John J.
Riordan, president of the County Trust, and a director of Kane and Cabot, who had shot himself to death in his own home. It was the eleventh suicide in Boston banking circles in two weeks; the dead man had been a close personal friend of Alan Lloyd's. The chairman went on to announce that Kane and Cabot had themselves lost nearly four million dollars, the Morgan Group had failed in its effort to unite, and it was now expected that every bank should act in its own best interests. Nearly all the bank's small investors had gone under, and most of the larger ones were having impossible cash problems. Angry mobs had already gathered outside banks in New York and the elderly guards had had to be supplemented with Pinkertons. Another week like this, said Alan, and every one of us will he wiped out. He offered his resignation, but the directors would not hear of it. His position was no different from that of any other chairman of a major bank in America. Tony Simmons also offered his resignation, but once again his fellow directors would not consider it. Tony was no longer destined to take Alan Lloyd's place so William kept a magnanimous silence.
As a compromise, Simmons was sent to London to take charge of overseas investments. Out of harnes way, thought William, who now found himself ap - pointed Director of Finance, in charge of all the bank's investments.
Immediately he invited Matthew Lester to join him as his number two. This time Alan Lloyd didn't even raise an eyebrow.
Matthew agreed to join William early in the New Year, which was as soon as his father could release him. They hadn't been without their own problems. William, therefore, ran the investment department on his own, until Matthew's arrival. The winter of 1929 turned out to be a depressing period for William, as he watched small firms and large firms alike~ run by friends he had known all his life, go under, For some time he even wondered if the bank itself could survive.
At Christmas William spent a glorious week in Florida with Kate, helping her pack her belongings in tea chests ready for returning to Boston. 'The ones Kane and Cabot let me keep,' she teased.
William's Christmas presents filled another tea chest and Kate felt quite guilty about his generosity. 'What can a penniless widow hope to give you in return?' she mocked. William responded by bundling her into the remaining tea chest and labelling it 'William's present'.
He returned to Boston in high spirits, and hoped his stay with Kate augured the start of a better year. He settled down into Tony Simmons'
old office to read the morning mail, knowing he would have to preside over the usual two or three liquidation meetings scheduled for that week.
He asked his secretary whom he was to see first.
'I'm afraid it's another bankruptcy, Mr. Kane.'
'Oh, yes, I remember the case,' said William. The name had meant nothing to him. 'I read over the file last night. A most unfortunate affair. What time is he due?'
'At ten o'clock, but the gentleman is already in the lobby waiting for you, sir.'
'Right, said William, 'please send him in. Let's get it over with.'