CHAPTER III.
Mr.Taynton's statement to his partner, which had taken him so few minutes to give, was of course concerned only with the latest financial operation which he had just embarked in, but for the sake of the reader it will be necessary to go a little further back, and give quite shortly the main features of the situation in which he and his partner found themselves placed.
Briefly then, just two years ago, at the time peace was declared in South Africa, the two partners of Taynton and Mills had sold out L30,000 of Morris Assheton's securities, which owing to their excellent management was then worth L40,000, and seeing a quite unrivalled opportunity of making their fortunes, had become heavy purchasers of South African mines, for they reasoned that with peace once declared it was absolutely certain that prices would go up.

But, as is sometimes the way with absolute certainties, the opposite had happened and they had gone down.
They cut their loss, however, and proceeded to buy American rails.

In six months they had entirely repaired the damage, and seeing further unrivalled opportunities from time to time, in buying motorcar shares, in running a theatre and other schemes, had managed a month ago to lose all that was left of the L30,000.

Being, therefore, already so deeply committed, it was mere prudence, the mere instinct of self-preservation that had led them to sell out the remaining L10,000, and to-day Mr.
Taynton had bought an option in Boston Copper with it.

The manner of an option is as follows: Boston Copper to-day was quoted at L5 10S 6d, and by paying a premium of twelve shillings and sixpence per share, they were entitled to buy Boston Copper shares any time within the next three months at a price of L6 3s.
Supposing therefore (as Mr.Taynton on very good authority had supposed) that Boston Copper, a rapidly improving company, rose a couple of points within the next three months, and so stood at L7 10S 6d; he had the right of exercising his option and buying them at L6 3S thus making L1 7S 6d per share.