‘Why are you so anxious to know how much gold there is in England?’
‘Because gold and currencies backed by gold are the foundation of our international credit. We can only tell what the true strength of the pound is, and other countries can only tell it, by knowing the amount of valuta we have behind our currency. And my main job, Mr Bond’ – Colonel Smithers’s bland eyes had become unexpectedly sharp – ‘is to watch for any leakage of gold out of England – out of anywhere in the sterling area. And when I spot a leakage, an escape of gold towards some country where it can be exchanged more profitably than at our official buying price, it is my job to put the C.I.D. Gold Squad on to the fugitive gold and try to get it back into our vaults, plug the leak and arrest the people responsible. And the trouble is, Mr Bond’ – Colonel Smithers gave a forlorn shrug of the shoulders – ‘that gold attracts the biggest, the most ingenious criminals. They are very hard, very hard indeed, to catch.’
‘Isn’t all this only a temporary phase? Why should this shortage of gold go on? They seem to be digging it out of Africa fast enough. Isn’t there enough to go round? Isn’t it just like any other black market that disappears when the supplies are stepped up, like the penicillin traffic after the war?’
‘I’m afraid not, Mr Bond. It isn’t quite as easy as that. The population of the world is increasing at the rate of five thousand four hundred every hour of the day. A small percentage of those people become gold hoarders, people who are frightened of currencies, who like to bury some sovereigns in the garden or under the bed. Another percentage needs gold fillings for their teeth. Others need gold-rimmed spectacles, jewellery, engagement rings. All these new people will be taking tons of gold off the market every year. New industries need gold wire, gold plating, amalgams of gold. Gold has extraordinary properties which are being put to new uses every day. It is brilliant, malleable, ductile, almost unalterable and more dense than any of the common metals except platinum. There’s no end to its uses. But it has two defects. It isn’t hard enough. It wears out quickly, leaves itself on the linings of our pockets and in the sweat of our skins. Every year, the world’s stock is invisibly reduced by friction. I said that gold has two defects.’ Colonel Smithers looked sad. ‘The other and by far the major defect is that it is the talisman of fear. Fear, Mr Bond, takes gold out of circulation and hoards it against the evil day. In a period of history when every tomorrow may be the evil day, it is fair enough to say that a fat proportion of the gold that is dug out of one corner of the earth is at once buried again in another corner.’
Bond smiled at Colonel Smithers’s eloquence. This man lived gold, thought gold, dreamed gold. Well, it was an interesting subject. He might just as well wallow in the stuff. In the days when Bond had been after the diamond smugglers he had had first to educate himself in the fascination, the myth of the stones. He said, ‘What else ought I to know before we get down to your immediate problem?’
‘You’re not bored? Well, you were suggesting that gold production was so vast nowadays that it ought to take care of all these various consumers. Unfortunately that is not so. In fact the gold content of the world is being worked out. You may think that large areas of the world have still to be explored for gold. You would be mistaken. Broadly speaking, there only remains the land under the sea and the sea itself, which has a notable gold content. People have been scratching the surface of the world for gold for thousands of years. There were the great gold treasures of Egypt and Mycenae, Montezuma and the Incas. Croesus and Midas emptied the Middle Eastern territories of gold. Europe was worked for it – the valleys of the Rhine and the Po, Malaga and the plains of Granada. Cyprus was emptied, and the Balkans. India got the fever. Ants coming up from under the earth carrying grains of gold led the Indians to their alluvial fields. The Romans worked Wales and Devon and Cornwall. In the Middle Ages there were the finds in Mexico and Peru. These were followed by the opening up of the Gold Coast, then called Negro-land, and after that came the Americas. The famous gold rushes of the Yukon and Eldorado, and the rich strikes at Eureka sounded off the first modern Gold Age. Meanwhile, in Australia, Bendigo and Ballarat had come into production, and the Russian deposits at Lena and in the Urals were making Russia the largest gold producer in the world in the middle of the nineteenth century. Then came the second modern Gold Age – the discoveries on the Witwatersrand. These were helped by the new method of cyaniding instead of separation of the gold from the rock by mercury. Today we are in the third Gold Age with the opening up of the Orange Free State deposits.’ Colonel Smithers threw up his hands. ‘Now, gold is pouring out of the earth. Why, the whole production of the Klondike and the Homestake and Eldorado, which were once the wonder of the world, would only add up to two or three years of today’s production from Africa! Just to show you, from 1500 to 1900, when approximate figures were kept, the whole world produced about eighteen thousand tons of gold. From 1900 to today we have dug up forty-one thousand tons! At this rate, Mr Bond,’ Colonel Smithers leaned forward earnestly ‘and please don’t quote me – but I wouldn’t be surprised if in fifty years’ time we have not totally exhausted the gold content of the earth!’
Bond, smothered by this cataract of gold history, found no difficulty in looking as grave as Colonel Smithers. He said, ‘You certainly make a fascinating story of it. Perhaps the position isn’t as bad as you think. They’re already mining oil under the sea. Perhaps they’ll find a way of mining gold. Now, about this smuggling.’
The telephone rang. Colonel Smithers impatiently snatched up the receiver. ‘Smithers speaking.’ He listened, irritation growing on his face. ‘I’m sure I sent you a note about the summer fixtures, Miss Philby. The next match is on Saturday against the Discount Houses.’ He listened again. ‘Well, if Mrs Flake won’t play goals, I’m afraid she’ll have to stand down. It’s the only position on the field we’ve got for her. Everybody can’t play centre forward. Yes, please do. Say I’ll be greatly obliged if just this once. I’m sure she’ll be very good – right figure and all that. Thank you, Miss Philby.’
Colonel Smithers took out a handkerchief and mopped his forehead. ‘Sorry about that. Sports and welfare are becoming almost too much of a fetish at the Bank. I’ve just had the women’s hockey team thrown into my lap. As if I hadn’t got enough to do with the annual gymkhana coming on. However –’ Colonel Smithers waved these minor irritations aside – ‘as you say, time to get on to the smuggling. Well, to begin with, and taking only England and the sterling area, it’s a very big business indeed. We employ three thousand staff at the Bank, Mr Bond, and of those no less than one thousand work in the exchange control department. Of those at least five hundred, including my little outfit, are engaged in controlling the illicit movements of valuta, the attempts to smuggle or to evade the Exchange Control Regulations.’
‘That’s a lot.’ Bond measured it against the Secret Service which had a total force of two thousand. ‘Can you give me an example of smuggling? In gold. I can’t understand these dollar swindles.’
‘All right.’ Colonel Smithers now talked in the soft, tired voice of an overworked man in the service of his Government. It was the voice of the specialist in a particular line of law enforcement. It said that he knew most things connected with that line and that he could make a good guess at all the rest. Bond knew the voice well, the voice of the first-class Civil Servant. Despite his prosiness, Bond was beginning to take to Colonel Smithers. ‘All right. Supposing you have a bar of gold in your pocket about the size of a couple of packets of Players. Weight about five and a quarter pounds. Never mind for the moment where you got it from – stole it or inherited it or something. That’ll be twenty-four carat – what we call a thousand fine. Now, the law says you have to sell that to the Bank of England at the controlled price of twelve pounds ten per ounce. That would make it worth around a thousand pounds. But you’re greedy. You’ve got a friend going to India or perhaps you’re on good terms with an airline pilot or a steward on the Far East run. All you have to do is cut your bar into thin sheets or plates – you’d soon find someone to do this for you – and sew the plates – they’d be smaller than playing cards – into a cotton belt, and pay your friend a commission to wear it. You could easily afford a hundred pounds for the job. Your friend flies off to Bombay and goes to the first bullion dealer in the bazaar. He will be given one thousand seven hundred pounds for your five-pound bar and you’re a richer man than you might have been. Mark you,’ Colonel Smithers waved his pipe airily, ‘that’s only seventy per cent profit. Just after the war you could have got three hundred per cent. If you’d done only half a dozen little operations like that every year you’d be able to retire by now.’