DETAILS NECESSARY, IF TEDIOUS.

After the events narrated in the last chapter, I returned to London. I arrived early in the morning, and, meeting my companions, we had a long and anxious talk over my near-approaching and all-important interview with that great Sir of the London world, the manager of the Bank of England. Happy for us if in that interview the manager had asked for the customary references, or had used ordinary business precaution and investigated me, or, indeed, had acted as any ordinary business man would have done under ordinary circumstances. Our own conclusions were that the fact that I was already a depositor, together with the impression made by the letters and my £10,000 checks, would put the thing through. Yet we, of course, felt that a thousand things could arise to block our way effectually. A look, a word too much, a shadow, or a smile in my face might ruin all; but still, after providing so far as possible for every contingency, after planning what was to be said or left unsaid at the interview, after my companions filling me full of advice, we felt after all that everything must be left to my discretion, to say and to act as I thought best under the circumstances.

This council of war was held in my room in the Grosvenor. I had arrived from Paris at 6 o'clock. Mac and I breakfasted together at 8. George joined us at 9, and we talked until 10, then we set out together for the bank. Arriving there, they remained outside, watching for my reappearance. Entering the bank, I sent in my card (F. A. Warren) by a liveried flunkey, and was immediately ushered into the manager's parlor. He has long since gone over to the majority, so here I will not so much as name or describe him. Sufficient to say, that as soon as I set eyes upon him I thought that we would have no particular difficulty in carrying out our plans, save only so far as details went.

The manager, who had been told that I was a railroad contractor, expressed himself highly gratified to have me do my business through the bank, and said they would do all in their power to accommodate me. I told him that, of course, I was financing large sums, and would require more or less discounts before the year was out. Then I came away, and meeting my two friends outside of the bank, in answer to their eager inquiries as to what had transpired, I told them that, so far as the bank officials were concerned, our way to the vaults of the bank was wide open.

So ended the last scene of Act I.

The next day I went to the Continental Bank, in Lombard street, and bought sight exchange on Paris for 200,000 francs, paying for it by a check on the Bank of England. I was given a note of identification to the Paris agent of the bank.

That night I left Victoria Station for Paris. At 10 the next morning I had my money, and, going to the Place de la Bourse, near the Exchange, I commissioned a broker, who was a member of the Exchange, to purchase bills on London for £8,000. I cautioned him to buy bills drawn only on well-known banking houses. About 3 o'clock he had the bills ready. I paid him the amount, along with his commission, and, examining the paper, found that he had purchased for me about what I wanted.

I will explain, for the benefit of any reader not conversant with financial transactions, that if John Russell, cotton broker in Savannah, ships a thousand bales of cotton to a firm in Manchester, England, the firm in Manchester authorizes him to draw a bill of exchange on their firm, payable at some London bank at three or six months' time, for the value of the cotton. We will say the price is £10,000. Russell draws ten bills for £1,000 each, say payable at the Union Bank of London. He gives these bills to a money broker in Savannah, who sells them on the Exchange and gets for them whatever the rate of exchange may then be on London. The president of the Georgia Central Railroad may have ordered a thousand tons of steel rail in England for his road, and to pay for them he orders a broker to buy for him bills on London to the amount of the cost of the rails. He purchases the Russell bills, and these bills of exchange he sends in payment to the steel rail manufacturers in England, so, as a matter of fact, the president of the Georgia Central pays Russell for his thousand bales of cotton, but has the bills of exchange. So, in place of £10,000 in gold being freighted twice across the ocean, the ten pieces of paper cross only once. These ten bills for £1,000 each, drawn on the Union Bank of London at six months, in due time are presented, duly accepted and paid at maturity by the bank.

Instead of commercial notes or bills they are now known as acceptances, and are just as good as a bank note. Therefore, if the owner—no matter who it is—wants the money at once, any bank will discount all or either for the face value less the interest. In every commercial centre of the world these accepted bills are being discounted by banks and moneyed corporations for enormous sums, but by no bank in the world in such huge amounts as by the Bank of England. Their daily discounts run into the millions.

What our plan was will be made clear later.

A BILL OF EXCHANGE.
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The evening of the day of my arrival in Paris found me on the express speeding to Paris. Two hours past midnight I was on the miserable little passenger steamer that plies across the chopping channel, and which I suppose has seen more of human misery than all the fleets that sail the Atlantic, for the channel has stronger counter currents, and wind, tide and currents seem ever to be in violent opposition, and here

"E'er across the main doth float
A sad and solemn swell,
The wild, fantastic, fitful note
Of Triton's breathing shell."

And Triton (old Neptune's t'other name) makes all passers over this part of his realm pay ample tribute for "his fantastic, fitful notes."

The Paris night express lands one at early dawn in London, nearly always weak on the legs, however. I breakfasted with Mac, and after that took the bills to the various banks on which they were drawn, and leaving them for their acceptance, I called again the next day and received them back, bearing across the face, the magic words:

"London, Aug. 14, 1872.

"Accepted for the Union Bank of London.

"E. Barclay, Manager.

"J. Wayland, Assistant Manager."

Then I hurried to the Grosvenor, and we all looked at them with curiosity, for it was upon the imitation of just such acceptances that our whole plan was based. I intended to present this and many more batches of genuine bills for discount at the bank until the officials should become accustomed to discounting for me. In the mean time, as fast as I got genuine acceptances and bills, we kept on making imitations of them for future use, only leaving out the date until such time as we should be ready to put them in for discount. Of course, the success or failure of our whole plan turned upon this point. Is it the custom of the Bank of England (in 1873) to send acceptances offered for discount to the acceptors for verification of signatures?

This is always done in America, and had this very requisite precaution been used by the Bank of England our plan would have been fruitless and we should have been a few thousands out of pocket; but, if not, then we could throw into the hopper enough acceptances of home manufacture so that through the red tape routine of the bank millions of sovereigns would be ground out into our pockets.

Taking my deposit book and the genuine bills, I went to the bank and left the bills for discount. This was at once done and the amount placed to my credit. I drew £10,000, and that night found me once more one of 500 unfortunates paying tribute to Neptune. This time I landed at Ostend and took the train for Amsterdam. There I repeated the Paris operation, securing £10,000 in genuine bills. I returned to London, and as before left them for acceptance. Then my companion manufactured a lot of imitations and put them away with those previously manufactured, to be all ready when the day came to use them. The genuine bills were then discounted. Again and again I went to the Continent, repeating the operation, until at last my credit at the bank was firm as a rock, and we were ready to reap our harvest. But these operations, simple as they seem, lasted over a period of six months, and had been made at heavy cost. Our ordinary living expenses were not less than $25 a day for the three, while our extraordinary expenses were enormous. I probably traveled 10,000 miles over the Continent in my bill-buying expeditions to Paris, Amsterdam, Frankfort and Vienna.

Another source of expense was the commissions paid to brokers for buying bills on the exchange. Then we had many expenses purely personal, and, enormous as it seems, the sum total from the day of our return from Brazil until the day of our operations against the bank began to bring us in cash were quite $500 a week, so that we had invested $15,000 in preparation, not to speak of our hard work—and it was hard work, and trying, too, for there were a multitude of details to be worked out.

CHAPTER XXI.