PINNACLE BOOKS NEW YORK (19 page)

The
man's face had strayed my way and he must
have
noted a puzzlement for he chose to elaborate
on
his last sentence.
"You have in
your wallet, Doctor, a pound note. Of itself it is valueless, being
naught but engraved paper. The fact that it is a
medium of exchange for
so
much gold is what gives it value. The pound
sterling
is the most stable currency in the world, so it is of no difference
whether you have your pound
note or its
equivalent in gold."

"The
note being more convenient to carry," I
replied,
just to indicate that I was aware of the
point
he was making.

"Of
course. But to the investor, the knowledge
that
he can cash in his bonds for gold produces
a
comforting feeling. Gold can be buried and
hoarded.
It is the constant in the fluctuating world
of
finance."

"And
the French need the metal," stated Holmes.

"The
need is artificial," replied Hananish. His
manner
became that of a patient instructor with
two
backward students, which, no doubt, delighted
him.
It crossed my mind that it must have pleased
Holmes
as well since this information seemed most
germane
to our case at hand.
"The Credit
Lyonnais is a very stable banking
house.
Because of that cursed Netherlands-
Sumatra
matter, there was a minor swell of panic
in
the public mind, which has not as yet subsided.
The
two-year redemption date is close upon us and
the
French anticipate that nervous investors will be
at
their door before long to cash in their bonds
prior
to the expiration date, as is their right. If
investors
request payment in gold, the Credit Lyon
nais
had better have it or suffer a
mortal
blow to its
reputation. Gold, in bulk,
flows from country to
country dependent
on history mostly. During the
French
Revolution, a lot of the metal found its way
here.
During the far-flung conquests of the Corsican,
a
lot of it came to France in the same manner as
many
of their treasures in the Louvre. At one time
we
were buying heavily from them before the
African
mines began producing so well. At the
moment,
English banks have a heavy backlog.
When
the Credit Lyonnais need became known to
me
and others, we were glad to enter into an
agreement
with the French to supply them."

The
banker's tapered fingers gestured expressively as though he had
made the whole matter as
clear as he
could.

"A
shrewd piece of business, I would hazard,"
said
Holmes. "You could hardly lose unless . . ."

As
Holmes' words hung in midair, there was an
alarmed
reaction from the financier.
"We
could
not
lose,
Mr. Holmes."

"Then
the Birmingham and Northern is capable
of
reimbursing you for the value of the shipment?"

To
my amazement, Hananish actually guffawed,
something
I never expected this frigid man to do.
"Mr.
Holmes, you jest. Alvidon Chasseur is on the
verge
of becoming the leading railroad magnate in
England.
His rise from ownership of a minor trunk
line
to his present position is a story-book saga akin
to
the writings of that colonial Horatio Alger. In
any
case, he had the shipment insured. You know
that."

Holmes
shrugged. "What about Inter-Ocean? Can
they
meet the face value of the insurance policy?"

Hananish's
unexpected humor disappeared to be
replaced
by a glacial hauteur. "You make mock of
me,
Mr. Holmes. You have had dealings with the
company.
Your solution of the attempted embezzle
ment
by one of their directors is common knowledge. You can hardly
think that Inter-Ocean is
shaky."

The
banker was right, of course, but Holmes
wasn't
going to let him know it.
"Sir,
what I, as a layman, think about such
matters
may be a far cry from what you, an expert,
know."

Hananish
had to retreat in the face of this
statement.
"Of course. Of course. Do forgive me."

Holmes
did not abandon the stern look he had
adopted,
and as the financier rushed ahead, apologetically, I thought,
He's done it again. This esthe
tic
dictator would not willingly give the time of
day
and now he's singing merrily simply because
Holmes
knew how to wind up his gramophone.

"Perhaps
I'd better go over the entire matter," Hananish suggested, and
Holmes indicated that
this would be
acceptable.

"Chasseur's
railroad and the Inter-Ocean insurance company are but middlemen
in the deal. A
consortium of banks, of
which I am a member, was
well able to
make the gold available. The French issued certificates of
indebtedness to us for half a million pounds plus a fee."
Hananish caught him
self and
corrected his last statement. "For the equivalent in French
francs actually, but that is
unimportant.
The certificates are convertible, quite
as
good as currency. With one I could go to any
major
bank in the world and secure the face value."

"But
since the French did not receive the gold,
those
certificates are not convertible?"

"We
shall be reimbursed by the insurance payment."

"Unless
the gold is found," I stated, glad to make
a
comment.

"It
is to be hoped that it is," agreed Hananish
quickly.
"Otherwise Inter-Ocean is the loser and the
thieves
the winners."

"If
the gold is not found, what will the Credit
Lyonnais
do?" inquired the sleuth.

"Make
an arrangement with someone else. Pos
sibly
the Deutsche Bank." Again Hananish paused
and
corrected himself. "Though I am not informed
as
to their gold reserve at this time. However, the
need
will be filled." His eyes, a soft shade of blue,
swiveled
to me briefly and then returned to my friend. "If the subject
interests you, might I point
out an
unusual factor?"

"By
all means," replied Holmes.

"Under
normal circumstances the gold need not
have
left our vaults. Upon receipt of the certificates
from
the Credit Lyonnais, we would have issued demand notes making the
gold available to whom
soever presented
them. Said notes would go to a French bank, or any European bank for
that matter, and would be honored. But psychology enters the
scene. The panicky subscriber to the Credit Lyonnais bond issue
presents himself at its doors and wants the gold in his hands. He
really doesn't
need it, you see, but
that is the way of the world. Do
you
follow me?"

Holmes
nodded. I did not, but that made no
difference.
"This gives me a clear picture of the
transaction,"
stated Holmes. "Dr.
Watson and I are grateful, and
our trip
has proven worthwhile."

As
he rose and made as though to depart, Holmes
posed
another question, a device that I had seen
him
use on other occasions.

"What
happens now to the certificates from the
Credit
Lyonnais?"
Hananish's thin lips
pursed in a moue. "They are quite worthless, of course, unless
you can locate the
gold, Mr. Holmes."

"Yes,
there still is that possibility," replied my
friend.
He did not sound enthusiastic, but I dis
counted
this since Holmes was always a superb
actor.

At
this point we made our departure from the overly quiet, somewhat
ominous home of Burton
Hananish, who had
been maneuvered into giving
us a lesson
in the mechanics of international finance. Or perhaps he just thought
he had.

Chapter
10

The
Battle on the River Road

AGAIN
THE pattern of our investigation took a swerve from the norm. Instead
of returning to
Fenley proper and
boarding the first train for
London, my
friend chose to prolong our west
country
interlude. He directed our vehicle to the
inn
and reserved rooms. Something, which had
evaded
me completely, had gotten the wind up for
Holmes
since he was never quite comfortable when removed from his beloved
London and its teeming
millions.
Happily, he did not bury himself in
thoughtful
silence but was disposed to explain his
latest
move.

"Burton
Hananish can bear a long second look,
Watson,
and while here in Gloucester I will seek
answers
to questions which come to mind."

"His
story seemed straight enough."

"In
part, in part."

"The
arrangement with the Credit Lyonnais in
volved
a lot of backing and filling. Perhaps it only
seemed
complex to my untutored mind."

"No,
Watson, your point is well taken. If man ever invents the perpetual
motion machine, it will
have very few
working parts. The more spokes and
wheels,
the greater the possibility of error."

"Or
chicanery?" I suggested, keen to learn what
had
clued Holmes. Surprisingly, his next statement
provided
an answer.

"Any
arrangement where one party cannot lose
arouses
my suspicions." My friend's voice had a
dreamy
quality and I knew he was actually talking
to
himself, using me as the familiar baffle board for
his
suppositions, which might cement themselves
into
fact.
"Banks and financial houses
are, in essence,
service organizations
providing capital for expan
sion,
development and presentation of products,
creation
of new jobs; all of which adds to prosperity. I oversimplify,
but that's the nuts and bolts
of it.
Where currency is involved, loss by whatever
means
is a universal peril shared by all parties."

"But
how could the west coast banks lose in the
arrangement
that Hananish outlined?" I asked.

"If
I judge correctly, the French paid well for the gold they needed. If
it were all so foolproof, they
would not
have had to. Besides, as you observed,
the
whole matter did seem unwieldy and we'd best
unravel
it to our satisfaction."

We
were by now back at the Red Grouse Inn.
Holmes
suggested that I might profitably rest my
bones
and I knew what that meant. He was going to
sally
forth to investigate on his own, probably with
the
mysterious though affable Wally. As we washed
up
in our comfortable suite, I made mention of the
man,
seeking to draw my friend out. Holmes had
one
of his fluent evasions ready at hand.