NEWS DESK MICHAEL WALSH - 18^th SEPTEMBER 2001

Once upon a time to the Temple of the Thirteen Suns came the rich and powerful chief, Oomah the Third, who said to the goldsmith of the temple, Hansen L. Roschab. "I have much gold and am about to depart for a far country. Wilt thou keep this gold safely for me against my return a year hence? I will pay thee well."

The wily Roschab coughed loudly and covered his countenance with a cloth lest the rich Oomah the Third observe his joy to have this treasure in his possession. When he was calm and could look serious he said unto Oomah. "It is a very great responsibility and risk but I will undertake it for a tithe which shall be one shekel in every ten."

Then said the Chief Oomah, "it's a deal!" and forthwith his slaves delivered many bags containing in all a thousand shekels of gold for which Hansen L. Roschab, the goldsmith, gave the chief a parchment deposit writing payable to whomsoever, and thereupon Chief Oomah departed happily upon his journey.

As soon as he was well out of the country the shrewd Roschab called his confidential scribe and bade him thus. "Go thee now to the merchants whom I tell thee of and secretly say to each that thy master hath a little gold for hire upon good security." And the servant departed swiftly.

Soon there came to him a great merchant, who said. "Hansen, you old crook. I am in a jam for a few shekels of gold. Wilt lend me?" and Roschab replied. "Money is very tight these days, but it might be so arranged. What is thy need?"

The merchant answered. "Two hundred shekels."

Then said Roschab. "It is much money. What security couldst thou pledge for so great a sum?"

Then the merchant showed Roschab a writing of his possession of merchandise to the amount of a thousand shekels. Roschab said. "It is not enough; thou must also pledge thy dwelling and thy slaves and thy raiment." Whereupon the merchant after much protest pledged all his possessions, even to his innermost raiment.

Then said he to Roschab. "I have no place to store so much gold. Keep it safe for me and give me a writing which I may deliver to whomsoever I will." And Roschab did even so.

The next day came another merchant, and another, and still another. And to each Roschab loaned a portion of the gold of Chief Oomah the Third, taking from each as security his entire possessions, including his personal innermost raiment. And to each he gave a writing upon a parchment showing that each had on deposit writings for the whole of the thousand shekels, but Roschab still had all the gold.

Roschab reflected much upon this curious state of affairs, and said to himself. "These birds know how much gold I possess. They do not want the actual gold itself - what they really want is credit, some deposit writing which they may pass from hand to hand as money. I have one grand idea."

On the next day came another merchant, and another and still another, and to each Roschab showed the great store of gold of Oomah the Third, and to each he pretended to loan a portion, although he had previously loaned it to all the first ones who came.

And it came to pass that at the end of another ten days, Roschab had pretended to loan to many more merchants and have given writings of deposit for a second thousand shekels, making 2,000 shekels in all, although he had only the 1,000 shekels of Oomah the Third.

And still he had all the gold.

Whereupon Roschab reflected to himself. "What a leaden-pipe cinch. I wonder I did not think of this before. I can collect just as much usury for the phoney deposit writings as for the genuine. Verily I am a financial wizard."

Therupon Roschab caused it to be noised about that he possessed a vast store of gold for hire, and many more merchants came to borrow, and to each Roschab delivered writings of deposit and collected generous usury and demanded pledges from each of all his possessions even unto his innermost personal raiment, until he had issued writings of deposit for 10,000 shekels and held mortgages on substantially the whole city.

Then went Roschab to the wise man of the city, and said unto him. "Verily I have discovered the greatest racket of all time. I have learned the magic of making gold out of baloney, and if I keep my formulae secret for a few years, I will collect a fortune that will make Solomon's treasure look like a second-hand clothing store. Tell me how I may keep secret this bonanza of mine own profit."

Then said the wise man. "Look wise and say little and only upon little known matters afar off. Obtain the ear of the town crier. Engage him to spread the impression that money is a mysterious subject which no one understands save thee alone. Be friendly with the king's counsellors and grant their favours that the king may smile upon thee."

And Roschab did as he was bid and collected much usury from his phoney loan deposits and built for himself a mansion, collected works of art, and clothed his wives and concubines with fine linen and jewels. And when his business had grown to many times its humble beginnings, he took over the entire temple and by way of a sly joke called it The First National Bank, the same being from an obscure language and meaning, 'The Place of Imaginary Money.'

And that is the reason all banks have great marble pillars and bronze doors, so that they may resemble outside as well as internally, the 'place of imaginary money' which Hansen L. Roschab builded upon the gold of Oomah the Third in the Temple of the Thirteen Suns.

Story written by Robert Hemphill, Financial Authority, told before the Committee of Banking and Currency by request, Banking Act of 1935