A Dangerous Fortune(142)
Edward swallowed hard and said nothing.
“Aren’t we?” Micky persisted.
At last Edward replied. “Yes,” he whispered. “Yes.”
The following week, Micky entered for the first time the hushed dignity of the Partners’ Room at Pilasters Bank.
He had been bringing them business for seventeen years, but whenever he came to the bank he was shown to one of the other rooms, and a walker would fetch Edward from the Partners’ Room. He suspected that an Englishman would have been admitted to the inner sanctum a lot faster. He loved London but he knew he would always be an outsider here.
Feeling nervous, he spread out the plan for Santamaria harbor on the big table in the middle of the room. The drawing showed an entirely new port on the Atlantic coast of Cordova, with ship repair facilities and a rail link.
None of it would ever be built, of course. The two million pounds would go straight into the Miranda war chest. But the survey was genuine and the plans were professionally drawn, and if it had been an honest proposal it might even have made money.
Being a dishonest proposal it probably ranked as the most ambitious fraud in history.
While Micky explained it to them, talking of building materials, labor costs, customs duties and income projections, he struggled to maintain an appearance of calm. His entire career, the future of his family and the destiny of his country depended on the decision made in this room today.
The partners were also tense. All six were there: the two in-laws, Major Hartshorn and Sir Harry Tonks; Samuel, the old queen; Young William; and Edward and Hugh.
There would be a battle, but the odds were on Edward’s side. He was Senior Partner. Major Hartshorn and Sir Harry always did what their Pilaster wives told them, and the wives got their orders from Augusta, so they would back Edward. Samuel would probably back Hugh. Young William was the only unpredictable one.
Edward was enthusiastic, as expected. He had forgiven Micky, they were the best of friends again, and this was his first major project as Senior Partner. He was pleased to have brought in such a big piece of business to launch his term of office.
Sir Harry spoke next. “The proposal is carefully thought out, and we’ve been doing well with Cordova bonds for a decade. It looks an attractive proposition to me.”
As anticipated, the opposition came from Hugh. It was Hugh who had told Edward the truth about Peter Middleton, and his motive had surely been to prevent this loan issue. “I’ve been looking at what has happened to the last few South American issues we’ve handled,” he said, and he handed round copies of a table.
Micky studied the table while Hugh continued. “The interest rate offered has gone up from six percent three years ago to seven and a half percent last year. Despite that increase, the number of bonds remaining unsold has been higher each time.”
Micky knew enough about finance to understand what that meant: investors were finding South American bonds less and less attractive. Hugh’s calm exposition and relentless logic made Micky fume.
Hugh went on: “Also, in each of the last three issues, the bank has been obliged to buy bonds in the open market to keep the price up artificially.” Which meant, Micky realized, that the figures in the table understated the problem.
“The consequence of our persistence in this saturated market is that we now hold almost a million pounds’ worth of Cordova bonds. Our bank is gravely overexposed to that one sector.”
It was a powerful argument. Trying to stay cool, Micky reflected that if he were a partner he would now vote against the issue. But it would not be decided purely by the financial reasoning. There was more at stake here than money.
For a few seconds no one spoke. Edward looked angry, but he was restraining himself, knowing it would appear better if one of the other partners contradicted Hugh.
At last Sir Harry said: “Point taken, Hugh, but I think you may be overstating the case a little.”
George Hartshorn concurred. “We’re all agreed that the plan itself is sound. The risk is small and the profits are considerable. I think we should accept.”
Micky had known in advance that those two would support Edward. He was waiting for Young William’s verdict.
But it was Samuel who spoke next. “I understand that you’re all reluctant to veto the first major proposal brought in by a new Senior Partner,” he said. His tone suggested that they were not enemies divided into opposing camps, but reasonable men who could not help but agree given a little goodwill. “Perhaps you’re not inclined to place much reliance on the views of two partners who have already announced their resignations. But I’ve been in the business twice as long as anyone else in this room, and Hugh is probably the most successful young banker in the world, and we both feel this project is more dangerous than it looks. Don’t let personal considerations lead you to dismiss that advice out of hand.”
Samuel was eloquent, Micky thought, but his position had been known in advance. Everyone now looked at Young William.
At last he spoke. “South American bonds have always seemed more risky,” he began. “If we had allowed ourselves to be frightened of them we would have missed out on a great deal of profitable business during the last few years.” This sounded good, Micky thought. William went on: “I don’t think there’s going to be a financial collapse. Cordova has gone from strength to strength under President Garcia. I believe we can anticipate increasing profits from our business there in future. We should be looking for more such business, not less.”