new loan from
any source in San Marcos County he dismissed for the hundredth time as
a proposition too nebulous for consideration. His only hope of a bank
loan lay in an attempt to interest outside bankers to a point where
they would consent to have the property appraised. Perhaps the letter
from Parker which he held would constitute evidence to cautious
capitalists of the sufficiency of the security for the loan. It was
for that purpose that he had cunningly inveigled Parker into making him
that offer to clear out and leave him a fair field and no litigation.
However, Don Mike knew that between bankers there exists a certain
mutual dependence, a certain cohesiveness that makes for mutual
protection. If, for instance (he told himself), he should apply to a
San Francisco bank for a loan on the ranch, the bank, prior to wasting
either time or mental energy on his application, would first ascertain
from sources other than him, whether it was remotely worth while
considering the loan up to a point of sending a representative down to
appraise the land. Their first move, therefore, would be to write
their correspondent in El Toro--John Parker's bank, the First
National--for information regarding the Farrel family, the ranch and
the history of the mortgage. Don Mike was not such an optimist as to
believe that the report of Parker's bank would be such as to encourage
the outside bank to proceed further in the deal.

He was also aware that the loan would not be attractive to commercial
banks, who are forced, in self-protection, to loan their money on
liquid assets. He must therefore turn to the savings-banks and trust
companies. But here again he faced an impasse. Such institutions loan
money for the purpose of securing interest on it; the last thing they
wish to do is to be forced, in the protection of the loan, to foreclose
a mortgage. Hence, should they entertain the slightest doubt of his
inability to repay the mortgage; should they be forced to consider the
probability of foreclosure eventually, he knew they would not consider
the loan. Don Mike was bitterly aware of the fact that the history of
his family bad been one of waste, extravagance, carelessness and
inefficiency. In order to place the ranch on a paying basis and take
up John Parker's mortgage, therefore, he would have to have a new loan
of not less than half a million dollars, and at six per cent., the
lowest rate of interest he could hope to obtain,