coupons--could not be better, and I reckon our friend bought them all at a discount. The estate will realize a handsome profit."

"Quite true, General!"--Jordan did not often lubricate his lips with American titles of honour--"just what I observed. Our client could not have acted with a sounder judgment when he made his investments. But it is years since then, and the business world has had its vicissitudes, like other institutions. Now--entre nous, and strictly in confidence--are there no whispers afloat in financial circles? has no--well, no breath--shall I call it? no tone of depreciation come to your ears? No? You surprise me. But to be sure, it is not so very unusual for signs and circumstances to leek out and become known in our profession. Not to be talked about, of course--that would never do. Betray the necessary confidence between lawyer and client? Oh, no! Not for a moment! But we do get to know things at times, while you men of the world are still in the dark, and going forward in the blindest confidence. As to the Banque d'Orval, now. Has nothing transpired to raise the--what shall I call it?--the shadow of a misgiving?"

"Misgiving?--Banque d'Orval?--I believe it stands as strong as the Bank of Commerce of Noo York! Certainly, nairy one! You cannot have looked into its last statement. Reserve of specie, circulation, discounts, all O.K. Never made a better showing since it was chartered."

"I confess I never muddle myself with unnecessary figures. And as to bank statements in general, the only reliable one of their affairs ever issued is the one put out by the assignee when they go into liquidation; and that comes too late to be of much use, except to sue the old directors upon. No, I did not look into the statement. I have always felt that that institution suffered an irreparable injury in the death of Truepenny, the old president."

"The shares are higher now than ever they were in his time."

"No doubt. But what does that prove? Is there any limit to the wrongheadedness and gullability of investors?--I know of none."

"But Pennywise is manager still. Think of his long experience in the bank, and how many years he acted under Truepenny. Pennywise is the most cautious and circumspect bank manager going."

"He is slow enough, if that is what you mean; and that slowness is the foundation of his high repute. It has been worth a fortune to him. You submit your proposal and he lets you talk, and when you have talked yourself into a belief that he will never let so good a thing go past him, he says 'hum,' and coughs--he has always a cough when he ought to speak, and gains time by eating a lozenge. When that is over he clears his voice with a long breath, and promises to submit the matter to his board. Truepenny, now, was gruff, but he was quick, and he did not waste time. He might cut you short in the middle of your story--he always cut Pennywise short when he began to wheeze and ask more questions--but it was because he knew what you were going to say, and he gave you your answer. It was always the best answer for the bank's interest, and generally it was the kindest for the customer. His successor, Sacavent, is rarely to be seen in the bank parlour now, and Pennywise does as he pleases, that is, makes people wait, till his mind is satisfied, and their opportunity is past."

"But the bank's business has not fallen off. The profits are larger than ever this year."

"On paper, at least. But we must wait to test the reality. It takes time to weaken a made reputation. Sacavent, now! Do you think that was a judicious choice?"

"One of our most distinguished merchants--Why, of course!--Rich, popular, doing an immense business of his own. Who can understand the wants of the business community better?"

"That is just it. I fear he understands the wants of the business community too well--knows them from personal experience. What would you say, now, if I were to tell you that his fine house on the mountain was mortgaged up to the gold weather cocks? and that the bank has had to be content with a second mortgage, as collateral, which is just worth the paper it is written on, for the first will cover everything."

"Hm. That sounds serious. Is it really so?"

"I hear so, and more. They tell me his wife, who has her own property--'separée des biens,' we call it in our law--has had to give security for a large sum."

"Indeed? But after all it is a big institootion. If Sacavent were to bleed it for all he is worth it would be only a pin-prick to the Banque d'Orval."

"Perhaps; but who can be sure that he is the only blood-sucker on the board? One cannot suppose the others would pass over his overdrafts if they did not get something for themselves. Why, even Pennywise will have to get something to keep him quiet. If it should turn out that there is a whole nest of needy ones, who can tell how far the queer transactions may extend? If anything should leak out--you see something is known, though not to the public--it would raise a panic."

"The Banque d'Orval can stand a run. Look at the specie reserve! It must stand. The government must come to its rescue in case of need."

"No doubt. But think of the shares! If they fall back to par--and it is not so many years since they were only a few per cents above--the present value of an investment would be reduced one-half. And everything else on the share list would be affected by the distrust it would create. Many smaller institutions would go, and all would suffer. It is a serious consideration. There is the Proletarian Loan, now."

"That is sound at any rate. Mortgaged properties cannot be wiped out like the 'rest' in a bank ledger."

"But you must recollect the Proletarian receives deposits. They had quite a flourish in their last statement over the increased amount, and the smaller interest they have to pay on such moneys than on the bonds they issue; which is all very well, but in case of a run by their depositors, how are they to realize the long-time mortgages in which their funds are tied up? They cannot look for much help from the banks, who naturally would not be sorry to see a competitor for the public savings in a tight place. Again, are you perfectly confident that the affairs of the Proletarian would stand a close audit? I confess I have a feeling myself which is not one of security, notwithstanding the high quotations of the shares. It has always been a mystery to me how old Weevil, the managing director, made his fortune. When he went in there he appeared to have nothing but his salary from the company of three thousand dollars. Now the man is undeniably wealthy. Owns blocks of valuable city property, is director in several companies where he must have a large interest, and lives in a style which his salary could not keep up for a couple of months, far less a year--houses for his sons, who, by-the-way, do nothing for themselves, and English schools for his daughters, which a thousand dollars a-piece do not begin to pay for. I would be the very last man to say everything was not as it should be there, but at the same time it is hard to understand."

"Hm! These are new lights to me, friend Jordan. I must take time to comprehend them. Meanwhile what is your own opinion? And have you any suggestion to make as to what we should do?"

"Candidly, then, General--and with all deference in discussing a matter of finance with you, a member of the Stock Exchange, who make the subject your profession--I believe that you financiers have squally times before you. Confidence will be disturbed and quotations will fall. The investments of our late highly valued friend stand now at higher prices than