“The bank checks up all right, Mr. Longley,” said Todd; “and I find your loans in very good shape—with one exception. You are carrying one very bad bit of paper—one that is so bad that I have been thinking that you surely do not realise the serious position it places you in. I refer to a call loan of $10,000 made to Thomas Merwin. Not only is the amount in excess of the maximum sum the bank can loan any individual legally, but it is absolutely without endorsement or security. Thus you have doubly violated the national banking laws, and have laid yourself open to criminal prosecution by the Government. A report of the matter to the Comptroller of the Currency—which I am bound to make—would, I am sure, result in the matter being turned over to the Department of Justice for action. You see what a serious thing it is.” Bill Longley was leaning his lengthy, slowly moving frame back in his swivel chair. His hands were clasped behind his head, and he turned a little to look the examiner in the face. The examiner was surprised to see a smile creep about the rugged mouth of the banker, and a kindly twinkle in his light-blue eyes. If he saw the seriousness of the affair, it did not show in his countenance. “Of course, you don’t know Tom Merwin,” said Longley, almost genially. “Yes, I know about that loan. It hasn’t any security except Tom Merwin’s word. Somehow, I’ve always found that when a man’s word is good it’s the best security there is. Oh, yes, I know the Government doesn’t think so. I guess I’ll see Tom about that note.” Mr. Todd’s dyspepsia seemed to grow suddenly worse. He looked at the chaparral banker through his double-magnifying glasses in amazement. “You see,” said Longley, easily explaining the thing away, “Tom heard of 2000 head of two-year-olds down near Rocky Ford on the Rio Grande that could be had for $8 a head. I reckon ’twas one of old Leandro Garcia’s outfits that he had smuggled over, and he wanted to make a quick turn on ’em. Those cattle are worth $15 on the hoof in Kansas City. Tom knew it and I knew it. He had $6,000, and I let him have the $10,000 to make the deal with. His brother Ed took ’em on to market three weeks ago. He ought to be back ’most any day now with the money. When he comes Tom’ll pay that note.” The bank examiner was shocked. It was, perhaps, his duty to step out to the telegraph office and wire the situation to the Comptroller. But he did not. He talked pointedly and effectively to Longley for three minutes. He succeeded in making the banker understand that he stood upon the border of a catastrophe. And then he offered a tiny loophole of escape. “I am going to Hilldale’s to-night,” he told Longley, “to examine a bank there. I will pass through Chaparosa on my way back. At twelve o’clock to-morrow I shall call at this bank. If this loan has been cleared out of the way by that time it will not be mentioned in my report. If not—I will have to do my duty.” With that the examiner bowed and departed.