unction with the cold weather and
heavy snowfall, had fairly undone the honor and the reputation of Mr.
Jenkins. For the unusual cold and the night work together had betrayed
him into potations even beyond his wont, the slippery pavements had
proven very baffling to his dignified tread--and the snowy signet upon
the back of his topcoat spoke to a delighted office all too plainly
that at last the alcoholic equilibrist par excellence had fallen.

This, however, embarrassing as it was to the individual in question,
did not seriously delay the work of the department, which was well
under way by the time the directors came together in their private
office, to declare the semiannual dividend which for many years the
Guardian had undeviatingly paid. A trial balance, from gross figures,
had been drawn off, so that the President was able to report with
reasonable exactitude on the condition of the company. The dividend
was promptly declared, and this was followed by a more or less informal
discussion among the gentlemen around the big table.

"The increase in our surplus seems due mostly to the rise in value of
some of our securities," Mr. Whitehill commented; "but the underwriting
showing is much better for the last six months than for the first. I
think our friend, Mr. Smith, is to be congratulated; and at the same
time I want to ask what he thinks of our prospects for the coming year."

"Well, from the underwriting viewpoint," Smith answered, "there is no
reason why this year should not be better than last, and several
reasons why it should; but if you will pardon the presumption of my
going outside of my own department, I think our chance for an increased
profit lies more along financial than insurance lines."

"Mr. Smith thinks," said Mr. Wintermuth, "that there has not been a
sufficient flexibility in our investments--that we could do better with
a larger cash balance and more liquid--or easily liquidated--assets."

"And so we could," said Mr. Griswold. He leaned forward with more
interest than he had yet shown. "I have felt for some time," he
continued, "that our management of our resources was substantial and
safe, but--without wishing to reflect on our President, whose
conservatism has been a tower of strength to us--I have also felt we
were financially just a little old-fashioned."

"What would you suggest that we do?" inquired the President. "My mind
is entirely open on the subject."

"Let me see the sta