DOI Page / Citation link:
https://doi.org/10.11588/diglit.27741#0157
allowed to advance its monies to him-
self and his friends. Each reclamation
company would bank its own paid-up
capital with its respective bankers.
Premchund, of course, was perfectly cog-
nizant of the balance each had had to a
rupee. He would boom the shares of
each and recommend each of these indivi-
dual bankers to lend as much as they
can to him and his friends to freely spe-
culate in the shares. The shares would
be hypothecated as securities. That
was the mechanism whereby Premchund
was enabled to stimulate speculation to
an unparalleled extent. That was the
way in which he managed to have the
400 shares of the Backbay Company,
sold at public auction, to be financed by
their large purchasers. The Company
realized a premium of somewhere about
go lakhs, which were all deposited with
the Asiatic Bank. That bank, hush with
such a plethora of money, advanced to all
whom Premchund recommended right
129
9
self and his friends. Each reclamation
company would bank its own paid-up
capital with its respective bankers.
Premchund, of course, was perfectly cog-
nizant of the balance each had had to a
rupee. He would boom the shares of
each and recommend each of these indivi-
dual bankers to lend as much as they
can to him and his friends to freely spe-
culate in the shares. The shares would
be hypothecated as securities. That
was the mechanism whereby Premchund
was enabled to stimulate speculation to
an unparalleled extent. That was the
way in which he managed to have the
400 shares of the Backbay Company,
sold at public auction, to be financed by
their large purchasers. The Company
realized a premium of somewhere about
go lakhs, which were all deposited with
the Asiatic Bank. That bank, hush with
such a plethora of money, advanced to all
whom Premchund recommended right
129
9