On the appointed day of the next week, when, with the hour of public executions, the noon-day amusements of the city come to an end, and the citizens betake themselves to the early afternoon’s repose, the seven boys were once more seated in the presence of their uncle, whom they discovered in a radiant humour.

He welcomed them so warmly that they imagined for a moment he might be upon the point of offering them sherbet, sweetmeats, or even money; they were undeceived, however, when the excellent but extremely wealthy old man, drawing his purse lovingly through his fingers, ordered to have poured out for each of them by a slave a further draught of delicious cold water, put himself at his ease for a long story, and resumed his tale:

“You will remember, my delightful nephews,” he said, “how I found myself in the hermit’s hut without a friend in the world, and with a capital of no more than twelve thousand dinars which I had carried thither in a sack upon donkey-back. Indeed, it was entirely due to the Mercy of Allah that my small capital was even as large as it was: for had the merchant in the bazaar discovered the pearls to be false he would not only have offered me far less but might possibly, after having disposed of the pearls, have given me over to the police. As it was, Heaven had been kind to me, though not bountiful, and I still had to bethink me what to do next if I desired to increase my little treasure.

“Taking leave, therefore, of the good hermit, I pressed into his hand a small brass coin the superscription of which was unknown to me and which I therefore feared I might have some difficulty in passing. I assured my kind host that it was a coin of the second Caliph Omar and of value very far superior to any modern gold piece of a similar size. As the hermit, like many other saintly men, was ignorant of letters, his gratitude knew no bounds. He dismissed me with a blessing so long and complicated that I cannot but ascribe to it some part of the good fortune which next befell me.

“For you must know that when, after laying in stores at a neighbouring village, I had driven my donkey forward for nearly a week over barren and uninhabited mountains, and when I had nearly exhausted my provision of dried cakes and wine (a beverage which our religion allows us to consume when no one is by), I was delighted to come upon a fertile valley entirely closed in by high, precipitous cliffs save at one issue, where a rough track led from this enchanted region to the outer world. In this valley I discovered, to my astonishment, manners to be so primitive or intelligence so low that the whole art of money-dealing was ignored by the inhabitants and by the very Governors themselves.

“The King (who, I am glad to say, was of the Faithful) had, indeed, promulgated laws against certain forms of fraud which he imagined to be denounced in the Koran; but these were of so infantile a character that a man of judgment could very easily avoid them in any plans he might frame for the people’s betterment and his own. The population consisted entirely of soldiers and rustics, among all of whom not one could be discovered capable of calculating with justice a compound interest for ten years.

“Under these circumstances my only difficulty lay in choosing what form my first enterprise should take. After a little thought I decided that what we call in Bagdad an Amalgamation of Competing Interests would be no bad beginning.

“I began with due caution by investing a couple of thousand dinars in the merchandise of a potter who had recently died and whose widow needed ready cash to satisfy the sacred demands of the dead. She spent the money in the ornamentation of his tomb, with which unproductive expenditure the foolish woman was in no small degree concerned.”

Here the eldest of the nephews interrupted Mahmoud to ask, most respectfully, why with a capital of twelve thousand dinars he had used but two, and why he had begun his experiment upon the petty business of a poor widow.

“My son,” said his uncle affectionately, “you do well to ask these questions. They show a reasoned interest in the great art of Getting. Well then, as to the smallness of my beginning, it was, I hope, due to humility. For ostentation is hateful. But a good deed is never thrown away—and how useful I found this reserve of ten thousand dinars (which I had in my meekness kept aside) you shall soon learn.

“As to why I began operations in the kiln of this poor widow, it was because I have ever loved the little ones of this world and aided them to my best endeavour. This charitable action also turned out to be wise, as such actions often do; for I could thus proceed at first unnoticed and begin my new adventures without exciting any embarrassing attention.

“I continued to live in the same small hut I had hired on my arrival, under the floor of which I kept my modest capital; and I put it about, as modesty demanded, that I was almost destitute.

“As it was indifferent to me for the moment whether I obtained a return upon this paltry investment or no, I was able to sell my wares at very much the same sum as they had cost me, and as I had bought the whole stock cheap, that sum was less than the cost of manufacture. There was a considerable store of pipkins in the old sheds, and while I sold them off at charitable rates (very disconcerting to other merchants), I had time to consider my next step.

“Upon this next step I soon determined. When, with due delay, my original stock of pipkins had been sold, I purchased a small consignment of clay, I relit the fires in the kiln, I hired a couple of starving potters, and I began to manufacture.

“The fame of my very cheap pipkins had spread, as was but natural, and secured me an increasing number of customers for my newly made wares. But I thought it wrong to debauch the peasants by selling them their pots under cost price any longer. I was constrained by the plainest rule of duty to raise my prices to the cost of manufacture—though no more, keeping Justice as my guiding star. For, depend upon it, my dear nephews, in business as in every other walk of life an exact rectitude alone can lead us to the most dazzling rewards.

“This price of mine was still lower than that of all the other pipkin-makers, who had been accustomed from immemorial time to the base idea of profit, and were in a perpetual surmise what secret powers I had to permit me such quotations. But I made no mystery of the affair. I allowed all my friends to visit my simple factory and I explained to their satisfaction how organization and a close attention to costings were sufficient to account for my prosperity.

“Still, as my sales continued to grow, new doubts arose, and with them, I am glad to say, new respect for my skill in affairs.

“The simple folk wondered by what art I had contrived so difficult a financial operation, but as it was traditional among them that one who sold goods cheap was a benefactor to the community, my action was lauded, my fame spread, and the number of my customers continually increased.

“You will not be slow to perceive, my dear boys, that my competitors in the bazaar, being compelled, to compete with my ruinous prices, were all embarrassed, and that the less attentive or privileged soon began to fall into financial difficulties, the first of course being those who were the most renowned among these simpletons for their cunning, their silence, their lying, and their commercial skill in general. These, as they were perpetually trying new combinations to discover or to defeat my supposed schemes, were an easy prey. Even the straightforward fellows who knew of no art more subtle than the charging of ten per cent. above cost price, and who did not play into my hands by any wearisome financial strategy, began to be roped into my net as the area of my operations spread. For when I had acquired, at a calculated loss, a good half of the pottery business in this sequestered paradise, I could, by what is known as the Fluctuation of the Market (but I will not confuse you with technical terms), put my remaining competitors into alternate fevers of panic and expectation very destructive to a Sound Business Judgment.

“Upon one day I would declare that a large consignment of pottery being about to reach me, I could sell pipkins at half the usual price. Pipkins fell heavily, and I bought through my agent every pipkin I could lay hold of. The supposed consignment, I would then put about, had been broken to atoms by an avalanche which had overwhelmed the caravan at the very boundaries of the State. Price leapt upward, and as I was the author of the rumour I was also the first to take advantage of the rise in price. But the very moment, my dear nephews, that my sluggish competitors attempted to follow suit the market would, oddly enough, fluctuate again in a downward direction.

“Upon a certain morning when one Abdullah (who was my boon companion and the next merchant in importance to myself) decided to mark his best pipkins at ten dinars the dozen I happened most prudently to have offered my own at eight and a half dinars to my favourite customers.

“And all this while I lived upon my hidden hoard.

“Poor Abdullah came to me in a sweat, very early the next morning, and after some meaningless compliments and many pauses, asked me to go into partnership. ‘For’ (said he) ‘though he admitted he had not my capacities, yet he had a long experience in the trade, a large connection and many influential friends in the allied lines of Pipkin brokerage, Pipkin insurance, Pipkin discount, Pipkin remainders, and—a most important branch—the buying and selling of Imaginary Pipkins.’

“He could—he anxiously assured me—be of great service as an ally, but he was free to confess that if he continued as he was he would be ruined; for, to tell the truth, he had already come to the end of his resources and had not a dinar in the house.

“I heard him out with a grave and sympathetic countenance, heaving deep sighs when he touched upon his fears, nodding and smiling when he spoke of his advantages, patting him affectionately when he professed his devotion to myself, and assuming a look of anguish when he spoke of his approaching ruin.

“But when he had concluded—almost in tears—I told him in tones somewhat slower and graver than my ordinary, that I had one fixed principle in life, bequeathed me by my dear father, now in Paradise, never to enter into partnership; no, not with my nearest and dearest, but ever to remain alone in my transactions. I frankly admitted that this made me a poor man and would keep me poor. It would be greatly to my advantage, in the despicable goods of this world, to have at my disposal Abdullah’s marvellous experience, his great array of family and business connections (to which my wretched birth could make no claim), and above all his genius for following the market. But the goods of this world were perishable—especially earthenware—and the sacred pledge given to my sainted parent counted more with me than all the baked mud in the world.

“As I thus spoke Abdullah’s breast heaved with tempestuous sobs, provoked by the affecting example of my filial piety, but also, I fear, by the black prospect of his own future.

“I could not bear to witness his distress. I hastened to relieve it. Though my vow (I said) forbade me solemnly to enter into partnership, yet I could be of service to him in another manner. I would lend him money at a low rate of interest to the value of half his stock upon the security of the whole. Times would change. The present ruinous price of pipkins (by which I myself suffered severely) could not long endure. He would lift his head again and could repay me at his leisure.

“He thanked me profusely, kissed my hand again and again, and gave me an appointment next day to view his merchandise and draw up the contract.

“I visited him at the hour agreed. The public notaries drew up an inventory of his whole stock, including his house and furniture, his prayer beads (which I was interested in, for they were of a costly Persian make), his dead wife’s jewels, all his clothes, his bed, and his pet cat—an animal of no recorded pedigree but reputed to be of the pure Kashmir breed. I carefully noted all flaws, however slight, in each pipkin of his warehouse and set all such damaged goods aside as a makeweight. The sound pipkins I made no bones of but accepted frankly at their market value, and when the whole was added up the valuation came to no less than 20,000 dinars. Yet so hide-bound in routine were the inhabitants of the place that Abdullah—if you will believe me!—had actually set his business stock down in his old books at four-fold that amount!

“As I had had to carry on, I had not now left by me my full hoard of 10,000 dinars. I had but 8,000 left. Yet I was in no difficulty. Half 20,000 is 10,000—but there would be deductions!

“The costs of all this inventory and mortgage were, of course, set down against my valued friend Abdullah, but since he had not the ready cash wherewith to pay the notaries, their clerks, the demurrage fees, the stamps, the royal licence, the enregistration, the triplicates, the broker’s commission, the ...”

“Pray, uncle,” cried the youngest of the nephews, “what are all these?”

“You must not interrupt me, my boy,” answered the great merchant, a little testily, “they are the necessary accompaniments of such transactions.... Well, as I was saying, the broker’s commission, the porter’s wages, the gratuities to the notaries’ servants, the cleaning up of the warehouse after all was over, and a hundred other petty items, I generously allowed them to be deducted from the loan; for our Prophet has said, ‘Blessed is he that shall grant delay to his debtor.’ That very evening, with every phrase of goodwill and expressed hopes for his speedy recovery of fortune, I counted out to my dear friend Abdullah the full balance of 16,325 dinars and one half dinar, and left him overjoyed at the possession of so much immediate wealth.

“But, alas! no man can forecast the morrow, and all things were written at the beginning to be as they shall be. So far from pipkins rising, the price fell slowly and regularly for three months, during which time I was careful to restrict my own production somewhat, though my poor dear friend, in his necessity, produced more feverishly than ever, and thereby did but lower still further the now really infamous price of pipkins.

“At last he came to a dead stop, and could produce no more. I gladly allowed the first, the second and even the third arrears of interest to be added to the principal at a most moderate compound rate, but there was some fatality upon him, and I was inexpressibly shocked to hear one morning that Abdullah had drowned himself over night in a beautiful little lake which his long dead wife had designed for him in his once charming pleasure grounds.”

“Oh! Poor man!” cried all the nephews in chorus.

“Poor man! Poor man indeed!” echoed their benevolent uncle, “I was a stranger in that country. He was the closest tie I had to it, and, indeed, in my loneliness, the nearest companion I had in the whole world.” And here the good old man paused to breathe a prayer for the departed companion of his long-past youth. He then sighed deeply and continued:

“I used what had now become my considerable influence with the government to provide him a costly funeral at the public expense—for he had left no effects, nor even children to follow him. I walked behind the coffin as chief mourner, and though I attempted to control my grief, all the vast crowd assembled were moved by my manly sorrow, and several spoke to me upon it at the conclusion of the sad rites.

“I allowed the decent interval of three days to elapse and then did what I had no choice but to do. I took over Abdullah’s factory on foreclosure and added it to my own.

“In this way the valuable kilns and stores of clay and wheels and vehicles, etc., all became my property. I had them valued, and was pleasurably surprised to discover that they were worth at least 25,000 dinars.

“A full two years had now passed since my first coming to this happy and secluded valley where Allah had poured out upon me His blessings in so marvellous a fashion. I was lonely, as you may imagine, but I manfully faced my duty. I continued to supervise and extend my manufactory of pipkins which now provided these articles for more than half the households of the State. I therefore could and did put the price of these useful articles upon a basis which, if it was somewhat higher than that to which people had grown accustomed during my earlier manipulations, had the priceless advantage of security, so that the housewife could always know exactly what she had to disburse—and I what I should receive. As I manufactured upon so large a scale my overhead charges....”

“What are overhead ...” began the eldest nephew, when his uncle, visibly perturbed, shouted “Silence!... You have made me forget what I was going to say!”

There was an awkward pause, during which the old man restored his ruffled temper and proceeded:

“I was able to buy clay more cheaply and better than the private pipkin-makers (for so they were now called, with well merited contempt) who still vainly attempted to compete with me, and my business automatically grew as the poor remnant of theirs declined.

“Not only did I continually increase in wealth by these somewhat obvious methods, but also in the power of controlling property; for when some fresh fool among my fellow pipkin-makers found himself in difficulties, it was my practice to seek him secretly, to condole with him upon what I had heard was his approaching misfortune, and to save him from ruin by taking over the whole of his stock. Nay! I would do more. I would rescue him from the sad necessity of attempting some new unknown trade by taking him into my own employment at a generous salary (but upon a monthly agreement); with a pretty concession to sentiment I would even leave him to manage his own dear old booth in the bazaar to which so many years had now accustomed him. I look back with pleasure upon the tears of gratitude which stood in the eyes of those to whom I extended such favours.

“So things went on for one more year, and another, and another, till the fifth year of my sojourn among these simple people was completed.

“I was in complete control of the pipkin trade, making all the pipkins that the nation needed, and free from any rival. The house which I had built for myself was the finest in the place, but covered, I humbly add, with many a sacred text. Above its vast horseshoe gate, ablaze with azure tiles, was inscribed in gold the sentence, ‘Wealth is of God alone.’

“I was popularly known as ‘Melek-al-Tawajin,’ or the Pipkin King, but officially decorated with the local title of ‘Warzan Dahur,’ which was the highest they knew and signifies ‘Leader in battle.’ I was entitled to wear a sword with a silver hilt in a jewelled scabbard, an ornament of which I was justly proud, but the blade of which I very sensibly kept blunt lest my servant should cut himself when he polished it, or even I should inadvertently do myself a mischief when I pulled it out with a flourish to display it to my guests, or saluted with it on parade. I had become a most intimate companion of the Court and was the most trusted counsellor of the King, to whose wives also I often lent small sums of money; nor did I ask to be repaid.

“In such a situation I mused upon my condition, and felt within me strange promptings for a new and larger life. I was now well advanced in manhood, I was filled with desires for action and device which the narrow field of that happy but restricted place could not fulfil. I longed for adventurous action in a larger world.

“The output and consumption of pipkins was at an exact unchangeable level; the revenue a fixed amount. The profit of the trade I held came to some 20,000 dinars in the year, the full purchase of which should be, say, 200,000 dinars.

“I prayed earnestly for guidance, and one night as I so prayed an idea was revealed to me by the Most High.

“I approached the King and told him how, all my life, I had nourished the secret belief that a trade necessary to the whole community should not, in justice, be controlled by a private individual, but should rather be the full property of the State, of which His Majesty was the sole guardian.

“The King listened to me with rapt attention as I unfolded with an inspired eloquence my faith that no one man should intercept profits which were due to the work of all. ‘It is your majesty,’ I cried, ‘who alone should have control over what concerns the body corporate of your people.’ He and he alone should superintend the purchase of pipkins, should regulate their sales, should receive all sums paid for them, and should use that revenue as he might think best for himself and the commonwealth. ‘While I was struggling in the dust and confusion of commercial life,’ I concluded, ‘I had no leisure to work out my scheme in its entirety, nor even to appreciate its serene equity—but now ... now, I see, I understand, I know!’

“Carried away by the fire of my conviction, my Royal Master could no longer brook delay. He bade me put the idea in its main lines before him at once, and assured me it should at once be put into execution.

“I thereupon pulled out a paper showing that since I was fully agreeable to take no more than the cash value of the trade plus goodwill and plus certain probable gains which I might reasonably expect in the future, I would be amply compensated if I were to hand all over to the Commonwealth for the merely nominal sum of half a million dinars—500,000. ‘A sum which,’ I continued, ‘is of little moment to your Majesty; especially as it will be met by the taxation of your willing and loyal subjects.’

“The matter was at once concluded. My great act of renunciation was everywhere acclaimed with transports of public joy. Every honour was heaped upon me. The King himself pronounced my panegyric at the farewell banquet given in my honour, and an inscription was ordered to be encrusted in the most gorgeous tiles on the chief gate of the city: ‘On the tenth day of the month Shaaban in the three hundred and third year from the Flight of the Prophet, by the act of Mahmoud the Magnificent all citizens became in the matter of Pipkins his common heirs.’”

The Merchant had been so moved by these old memories that he had difficulty in proceeding. He was silent for a few moments, and then ended in a more subdued tone.

“The sum of 500,000 dinars, well packed, will load without discomfort some dozen camels. These and their drivers were provided me by a grateful nation. I passed out of the town at sunrise, attended by a vast concourse of the populace who pressed round me in a delirium of grateful cries, and so took my way eastward across the mountains and left this happy vale forever.”

At that moment the detestable falsetto of the Muezzin was heard from the neighbouring minaret, and the boys, all dazed at the recital of such triumphs, left the presence of their uncle as though it had been that of a God.