He also sent one to Mr. Richard Chavasse:
The next morning he received from Mr. Linkwood the following reply:
"Carmel East. Ninety per cent. of gold extracted by Bülow process. Strong support by Australian markets.--LINKWOOD."
Now, the evening before certain large purchases in Carmel East had been made in England, not by the names under which Mr. Alington had previously unloaded, for the weakness of such a course was obvious, and he followed them up the next morning by a very large purchase in his own name, and by the publication of his telegram from Mr. Linkwood. He also saw several business men, to whom he gave a full explanation. He had telegraphed, he said with absolute truth, to his manager to try the Bülow process, and, as they saw, it had yielded admirable results. Instead of twenty, they got ninety per cent. of the gold out. Concerning the strong support of the Australian markets, they would no doubt receive further news by cable. He had no information later than that telegram which he had published.
The effect of this on a market already predisposed to go a-booming after Westralians was natural and inevitable. The shares went up nearly a half during the day, and next morning when a further private cable, instantly made public, recorded that that shrewdest of financiers, Mr. Richard Chavasse, had bought to the extent of forty thousand pounds, they ran past thirty shillings.
A week later they stood at two pounds, owing to steady support from private investors. There was a spurious report that a dividend might be expected, so extraordinary successful had the month's crushing proved to be, and this was the unfortunate moment selected by Kit to make her second purchase. Simultaneously Alington, who for a week past had been very carefully unloading, telegraphed to Jack to do the same, and sold out largely under his own name. A week passed, and the shares moved slowly back, depressed by these large sales, though there was still a considerable demand for them in England. Then came another telegram from Australia, saying the mine looked much less hopeful. The vein which they had been working so successfully for the past two or three months came suddenly to an end, owing to a dip in the strata, and if struck again, it could probably be struck only at a much deeper level. This would entail considerable development. Following on this came large sales in Australia, Mr. Richard Chavasse (in consequence of a wire from England) being among them, and the shares went down to nineteen shillings. Then the possibility of a war between England and France depressed them still further, and they subsided quietly to fourteen shillings, where, for all that Mr. Alington at present cared, they were at liberty to remain. Thus closed the first act of the great deal, leaving a suspicious market.