The Titan · Chapter
XLVIII: Panic explained
On August 4, 1896, the collapse of American Match and the failure of Hull & Stackpole for twenty million dollars sends shockwaves through Chicago's financial world.
What happens
On August 4, 1896, the collapse of American Match and the failure of Hull & Stackpole for twenty million dollars sends shockwaves through Chicago's financial world. As panic grips the stock exchange, Hull and Stackpole struggle to support their stock. Meanwhile, the quadrumvirate of Schryhart, Hand, Arneel, and Merrill discover that Cowperwood has profited from the crisis, having secretly acquired and sold American Match stock. They convene to discuss their losses, the threat to Chicago's financial reputation, and their growing hatred for Cowperwood, plotting to find a way to end his career.
Themes in this chapter
Ambition and Power
Cowperwood's secret manipulation of the American Match collapse demonstrates his relentless ambition and strategic use of power to profit at the expense of his rivals.
Corruption and Morality
The quadrumvirate's plotting to destroy Cowperwood, and Cowperwood's own deceptive dealings, highlight the moral decay and corruption underlying high finance.
Wealth and Its Illusions
The sudden collapse of American Match reveals the fragility of wealth and the illusion of stability in the financial markets, as fortunes are made and lost in moments.
Characters to notice
- Frank A. Cowperwood
Implied to have profited from the American Match collapse by selling stock through agents, incurring the enmity of the quadrumvirate.
- Phineas Hull
Partner in Hull & Stackpole; panics as American Match collapses, suspects Cowperwood of selling them out.
- Benoni Stackpole
Partner in Hull & Stackpole; desperate to support the stock, later reveals to Schryhart that he borrowed from Cowperwood.
- Norman Schryhart
Member of the quadrumvirate; furious at Cowperwood's involvement, advocates for ending Cowperwood's career in Chicago.
- Hosmer Hand
Member of the quadrumvirate; resentful of Cowperwood's profit, participates in the conference against him.
- Timothy Arneel
Member of the quadrumvirate; calculates Cowperwood's debts and suggests gathering more information to plan a countermove.
- Anson Merrill
Member of the quadrumvirate; admires Cowperwood's subtlety but participates in the plotting against him.
- Mr. Rambaud
Mentioned as Cowperwood's man; suggested Stackpole approach Cowperwood for a loan.
Key passages
“On August 4, 1896, the city of Chicago, and for that matter the entire financial world, was startled and amazed by the collapse of American Match, one of the strongest of market securities, and the coincident failure of Messrs. Hull and Stackpole, its ostensible promoters, for twenty millions.”
On August 4, 1896, Chicago and global finance were shocked by the sudden collapse of American Match, a supposedly solid stock, and the simultaneous bankruptcy of its promoters Hull and Stackpole for $20 million.
Sets the stage for the financial panic that drives the chapter's conflict.
“I’ll tell you what it is,” said Schryhart, finally. “It seems to me we have stood just about enough of this man’s beggarly interference.”
Schryhart declares that they have tolerated Cowperwood's meddling long enough.
Reveals Schryhart's intense animosity toward Cowperwood and his desire for revenge.
“I haven’t all the facts,” he said, at last, slowly and distinctly. “If we could talk with some of the presidents of our banks tonight, we should probably find that there are other items of which we do not know.”
Arneel suggests that they need more information from bank presidents to fully understand Cowperwood's financial obligations.
Shows Arneel's cautious, methodical approach to plotting against Cowperwood.
