“Abel, what do you mean?” inquired his father.
The young man was still placidly blowing rings of smoke from his mouth, and answered:
“Nothing terrible. Don’t be alarmed. It is only an illustration of the practical value of credit, showing how it covers a retreat, so to speak. Do you see the moral, father?”
“No; certainly not. I see no moral at all.”
“Why, suppose that nobody wanted to retreat, but that the Bank was only to be carried over a dangerous place, then credit is a bridge, isn’t it? If it were out of money, it could live upon its credit until it got the money back again.”
“Clearly,” answered Mr. Newt.
“And if it extended its operations, it would acquire even more credit?”
“Yes.”
“Because people, believing in the solvency of the Bank, would suppose that it extended itself because it had more means?”
“Yes.”