as though in some mysterious fashion it would add weight to his words.
"Now, Colonel, listen to me, and do not misunderstand my motives. Your credit is perfectly good, and I am not casting suspicion on it in any way. But this bank cannot loan you money for the purposes of the Fremont Hotel unless the Fremont Hotel can carry it; and the Fremont Hotel is mortgaged to the full at present. In other words this bank holds that any going business ought to take care of itself in prosperous times. If it cannot, it should retrench or change methods."
The Colonel stiffened again.
"My knowledge of banking is limited, as I said before," said he. "Do I understand this is the business policy of banks?"
Mills hesitated a little at this direct question.
"Is the Fremont Hotel a serious business with you, Colonel; or is it a toy? " he countered.
"I am of the years of discretion, sir. I do not play with toys," replied the Colonel.
"Then if it is a serious business, it should stand on its feet. Now let me tell you, Colonel, this promiscuous mortgage business is a very dangerous thing. I speak from long experience as a banker. Some day when you get tune I wish you would go over to the courthouse and look over the tax lists of the outside property for years past. It would open your eyes. First lists were small and all Spanish names. Then they became larger, and alongside of each Spanish name appeared one or two American names. As time went on the lists grew longer and longer, and even the few Spanish names became fewer and the American names more numerous. Now how do you account for that?"
"The big ranchos were divided up, of course."
"Yes, but why? Not one of those old Spanish holders would sell an acre. I'll tell you how it happened in one word—mortgaged! In the case of the Cantado in the south, old Pancho borrowed twenty-five thousand dollars. The interest was high and was compounded every month. Before the matter was settled Pancho owed nearly three hundred thousand and lost the whole ranch, just on the basis of that original twenty-five thousand—that's all he ever really got for it."
