Mr. Mellen started. He opened his mouth as if to speak, but Grinnell went on quickly: “Tell me, Mr. Dawson, is it not true that the expansion in business all over during the past few years, while it has been followed by a great expansion in bank credits, has not been followed by a proportionate increase in the supply of actual cash? That being the case, why couldn’t it be possible to add two hundred and fifty millions a year without disturbing business, by distributing one hundred millions among banks in Germany, France, and England, and scattering one hundred and fifty millions among banks in various sections of the United States?”
“Do you propose to do this?” Mr. Dawson was looking at the young man with an intentness which he could not help tinge-ing with anxiety.
“That isn’t the question,” said Grinnell, a trifle impatiently, as if unwilling to lose the thread of his argument. “Do you deny that such a thing could be done?”
“Yes, I do! It would mean wild inflation; it would lead to a world panic!” said Mellen, not altogether composedly.
“Do you think so, Mr. Dawson?” Grin-nell persistently ignored Mr. Mellen.
“I think,” replied the president, nervously, “that $250,000,000 in gold a year more than the world is now getting would be too much. Without definite knowledge of the source and limit of the new supply, sentiment would become so alarmed that it would mean a disastrous panic, probably the worst in the history of humanity, since there would be the keenest apprehension over the possibility of gold being demonetized. An inexhaustible supply of gold could lead to nothing else; and then—God help us all!” The president was so impressed by his own words that his face grew livid. Mr. Mellen was breathing quickly.
“Who said anything about an inexhaustible supply of gold?” said Grinnell angrily. “I, of all people, do not wish gold to be demonetized. What would my gold be worth if that happened?”
“Precisely; that’s why we wish you to confide in us,” said Dawson, with a very friendly smile.
“But I still believe,” said Grinnell doggedly, “that two hundred and fifty millions a year would not do harm. I have made up my mind on that point, and I will not change it. Mr. Dawson, you have asked me several questions. Now, let me ask you one: Do you, or do you not, wish me to make any additional deposits in this bank?”
“Certainly I wish you to if you do.”