'My first reason is simple,' he said as he sipped the imported burgundy, apparently not giving a momenes thought to the strong likelihood that German boots were about to trample on the grapes in most of the vineyards in France. 'I think the bank will lose money if we don't cut our losses and get out of England., 'Of course, you will lose a little money,' said William, 'but we must support the British!

'Why?' asked Tony. 'We're a bank, not a supporters'club.'

'Brita&s not a baseball team, Tony; it's a nation of people to whom we owe our entire heritage ... I Tou should take up politics,' said Tony. 'I'm beginning to think your talents are wasted in banking. Nevertheless, I feel theres a far more important reason why we should close the branch. If Hitler marches into Britain the way he has into Poland and France - and I'm sure that is exactly what he intends to do - the bank will be taken over, and we would lose every penny we have in London!

'Over my dead body,'said William. 'If Hitler puts so much as a foot on British soil, America will enter the war the s day.

'Never,' said Tony. 'F.D.R. has said, "all aid short of war". And the America Firsters would raise an ahnighty hue and cry!

'Never listen to a politician,' said William. 'Especially Roosevelt. When he says "never", that only means not today, or at least not tl - ds morning. You only have to remember what Wilson told us in 1916.'

Tony laughed. 'When are you going to run for the Senate, William?'

'Now there is a question to which I can safely answer never.'

'I respect your feelings, William, but I want out!

'You're the chairman,' replied William. 'If the board backs you, you can close the London branch tomorrow, and I would never use my position to act against a majority decWon.'

'Until you join the two banks together, and it becomes your decision!

'I told you once, Tony, that I would never attempt to do that while you were chairman. ies a promise I intend to honour.'

'But I think we ought to merge.'

'What?' said William, spilling his burgundy on the tablecloth, unable to believe what he had just heard. 'Good heavens, Tony, I'll say one thing for you, you!re never predictable.'

'I have the best interests of the bank at heart, as always, William.

Think about the present situation for a mofnent. New York is now, more than ever, the centre of U.S. finance, and when England goes under to Hitler, it will be the centre of world finance, so that's where Kane and Cabot needs to be. Moreover, if we merged, we would create a more comprehensive institution because our specialitiesare complemen tary. Kane and Cabot has always done 4 - great deal of ship and heavy industry financing while Lester's does very little. Conversely, you do a lot of underwriting, and we hardly touch it. Not to mention the fact that in many cities we have unnecessary duplicating offices.'

'Tony, I agree with everything you!ve said, but I would stiff want to stay in Britain! * 'Exactly proving my point, William Kane and Caboes London branch would be closed, but we would still keep Lestees. 'Men, if London goes through a rough passage, it won!t matter as much because we would be consolidated and therefore stronger.'

9But how would you feel if I said that while t restrictions on merchant banks will only allow us to work out of one state, a merger could succeed only if we ran the entire operafion from New York treating Boston as nothing than a holding office?'

Ird back you; said Tony and added, 'You might ev consider going into commercial banking and dropping the aft - aight investment work.'

'No~ Tony. FDIL has made it impossible for an honest man to do both, and in any case my father believed that ym could either servie a small group of rich people or a large group of poor people so Lester's will always remain in usditional merchant banking as long as I'm chairman. But if we did decide to merge the two banks don!t you foresee major problems?'

Tery few we couldn't surmount given goodwill on both sides. However, you will have to consider the implications carefully, William, as you would undoubtedly lose overall control of the new bank as a minority shareholder which would always make you vulnerable to a takeover bid.'

Td risk that to be chairman of one of the largest financial institutions in America!

William returned to New York that evening, elated by his discussion and called a board meeting of Lester's to outline $78 Tony Simmons' proposal. When he found that the board approved of a merger in principle, he instructed each manager in the bank to consider the whole plan in greater detail.