Then they smilingly explained. The Agrarian Bank was a hole in the ground. At the outbreak of the World War these thrifty Poles had buried their gold, hence, these men of Vilna were ready to subscribe generously.
When I returned to Warsaw, I discussed this plan with my associate Johnson, who had had business experience, and he became enthusiastic about it. I then presented it in detail to Paderewski, and his only criticism was that the Poles would want a majority of the stock at once. I told him that there was not the slightest objection to that, but that I could devise a method by which they could eventually secure all of it, and I doubted if it were wise to take too much at first. He then said that there must be an American at the head of this corporation, and that he must be one that was not connected with Wall Street, but who would have the confidence of the entire American community. I proposed several names, and we finally agreed that Franklin K. Lane was the best man.
Paderewski asked me to put the full details of this plan in a letter to him. I asked Colonel Bryant, who was an expert stenographer, whether he would be willing to forget his military rank for a short time and revert to his former activities by acting as my secretary. He readily assented, and to escape the constant interruptions at our headquarters, we automobiled five miles outside of Warsaw, gave the chauffeur a package of cigarettes and told him to disappear; and there on the highway, I dictated in an American automobile to an American colonel a letter which will be found in the Appendix.
I handed this letter to Paderewski, and stressed my views that the mere announcement of such a corporation being contemplated would more than double the value of the mark at once. Paderewski thought for a minute and then said:
“Mr. Morgenthau, that is absolutely true, and I am afraid that that is going to prevent our adopting the scheme.”
I was extremely puzzled, and was dumbfounded as he continued:
“We cannot afford to have our marks rise too rapidly. We have sold too many at this low price, and it would bankrupt us to redeem them at the higher value which this scheme would give them. We must find some way of disregarding the present value of the mark, and start a new currency system.”
He had evidently given this some thought, because he asked me how long it would take in America to prepare new plates and print for them a new currency, and he told me that they would have piastres and pounds. I said I thought one of the banknote companies could do it in three months, perhaps less. Finally, he said to me:
“Don’t speak to any one about this plan, because I don’t want any one to know that the suggestion comes from you until it is put into effect.”
Two days later, when I met him again, he pulled out my letter and said: