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Rh the last interest had not been paid. This had not been pressed because of the Colonel's bereavement, and because of the Colonel's deserved personal popularity. We esteem the Colonel. But it had not been paid since. It was not likely to be paid; nor was future interest. He would show them why: and he went on to analyze exactly the affairs at the ranch, drawing on his intimate knowledge gained through Kenneth's innocent spying. It was evident that by no stretch of the imagination could it be hoped that the principal of the loans could ever be repaid from the ranch activities. In other words it was a bad loan. It was not only a bad loan, but it was too big a loan to be tied up in one piece of property. It had been bad banking, and he did not hesitate to say so. It was the type of banking that, in the financial circles of the East, would, he was free to say, call for the severest criticism, perhaps investigation. Boyd's voice became very crisp at this point. A bank's business is to use its stockholders' and depositors' money wisely and safely. That is its first duty. In opposition to this first duty, no other consideration could have weight. Its funds should at all times be so invested as to bring the highest return consistent with safety: and at the same time on such a basis that they could be liquidated at any time without loss. That was a commonplace. Had that been done here? Boyd stated with great positiveness to the contrary. Corona del Monte might be fairly considered worth more than the loans on it, to be sure; but not in a forced sale. And a forced sale was the criterion. If on foreclosure the bank could not regain its loan, and interest, from the auction price of the ranch, it would be forced to keep it. And running a ranch is about the poorest thing a bank can do.

The board listened to all this rather glumly. Nobody likes to be called a fool or scolded; and most of these men, conservatives of the old Arguello type, had no use for Boyd's dominating, enterprising schemes, anyway.

"Do I understand, Mr. Boyd, that you have called this especial meeting to advocate not renewing Colonel Peyton's mortgage?" asked Oliver Mills, dryly. "I believe those notes are not due for some months yet and consideration of them might quite well have come before a regular meeting."