II
Smith had no sooner addressed himself to his heavy task than he found himself face to face with a crisis in the affairs of the firm of exceptional difficulty for so young a man to grapple with. The third partner was discovered to be misusing the firm's credit and capital, and had to withdraw from the partnership under circumstances that involved grave anxiety to all concerned.[1] Elder, who had not of late years given close attention to the business, made up his mind to retire almost at the same time.[2] Smith was thus left to conduct single-handed the firm's affairs at a moment when the utmost caution and financial skill were required to maintain its equilibrium Although no more than twenty-two, he proved himself equal to the situation. By a rare combination of sagacity and daring, by a masterful yet tactful exercise of authority, and by unremitting application, he was able to set the firm's affairs in order, to unravel the complications due to neglected bookkeeping, and to launch the concern anew on a career of prosperity far greater than that it had previously known.
For a time the major part of his energies and business instinct was devoted to the control and extension of the agency and banking department. It is difficult to overestimate the powers of work which he brought to his task. 'It was a common thing for me,' he wrote of this period, 'and many of the clerks to work until three or four o'clock in the morning, and occasionally, when there was but a short interval between the arrival and departure of the Indian mails, I used to start work at nine o'clock of one morning, and neither leave my room nor cease dictating until seven o'clock the next evening, when the mail was despatched. During these thirty-two hours of continuous work I was supported by mutton chops and green tea at stated intervals. I believe I maintained my health by active exercise on foot and horseback, and by being able, after these excessive stretches of work, to sleep soundly for many hours; on these occasions I generally got to bed at about eleven, and slept till three or four o'clock the next afternoon.'[3]
Astonishing success followed Smith's efforts. The profits rose steadily, and the volume of business, which was well under 50,000l. when he assumed control of the concern, multiplied thirteen times within twenty years of his becoming its moving spirit. The clerks at Cornhill in a few years numbered 150. An important branch was established at Bombay, and other agencies were opened at Java and on the West Coast of Africa. There was no manner of merchandise for which Smith's clients could apply to him in vain. Scientific instruments for surveying purposes, the testing of which needed the closest supervision, were regularly forwarded to the Indian government. The earliest electric telegraph plant that reached India was despatched from Cornhill. It was an ordinary experience to export munitions
