habitual, they jump to the level of 50. Further growth simply cannot be. But then the price reaches 60, to 70 and 75. Everyone here is already sure that these shares, which no one took for 14 a few weeks ago, cannot grow any more. Further - nowhere! But они доходят до 80, а потом и до 85. AND вот тогда средний человек, который никогда не думает о ценности, но всегда только о ценах, действиями которого руководит не понимание условий, но смесь страхов и надежды, становится на самый легкий путь — he discards the idea that an endless ascent is impossible. INот почему аутсайдеры, которым хватает ума, чтобы не покупать по самой верхней цене, расплачиваются за это тем, что не берут свою profit. INо время бумов большие деньги сначала делает публика — на бумаге. This profit remains on paper.

Chapter 22

One day, Jim Bernes, who was not only one of my top brokers, but also a personal friend, came to see me. He сказал, что просит меня о большом одолжении. This was the first such appeal on his part, and I asked him to tell me what the matter was, hoping that I could do something for him. Оказалось, что его фирма заинтересована в неких promotions. That is, they actually promoted this company, United Furnaces, to the market and have already placed most of the shares. But circumstances were such that they urgently needed to get away with a large block of shares, and Jim wanted me to take on this business.
For a variety of reasons, I did not want to take on this case. But у меня были определенные личные обязательства перед Бернесом, и он теперь настаивал на ответной любезности. He was мне хорошим партнером и другом, а его фирма, как я выяснил, по уши завязла в этой истории, так что мне не оставалось ничего, кроме как согласитьсI.
It always seemed to me that the most striking feature of the military boom, which distinguished it from all other varieties of booms, was the appearance of a figure completely new to the stock market - a young financial genius, a banker boy.
The scope of the financial and industrial rise was grandiose; the reasons and logic of this long growth were clear to everyone. At the same time, the largest banks and trust companies in the country were clearly doing everything they could to turn each of the military suppliers and founders of new companies into a millionaire overnight. It got to the point where it was enough for a man to say that he had a friend who was friends with a member of one of the countless Allied purchasing commissions, and he was already guaranteed capital to fulfill contracts not yet signed. Рассказывали невероятные истории о клерках, становившихся президентами компаний с оборотом в миллионы долларов, которые раскручивали дело на кредиты, полученные от ставших подозрительно доверчивыми трастовых компаний [Trusting trust companies — доверчивые компании довериI.]. They talked about contracts that made everyone rich who participated in their transfer from one to another. ANDз Европы в страну вливались потоки золота, и банкам оставалось только подгребать его под себI.
For middle-aged people, the then way of doing business should have seemed extremely wild and suspicious, but somehow there were almost no such people. The fashion for gray-haired bank presidents remained in the pre-war era; an active war economy raised the young to the top. Banks were earning huge profits.
Jim Bernes and his associates, having the friendship and confidence of the young president of the Marshall National Bank, decided to merge the three well-known furnace companies and sold the shares of the new company to the public, who then enthusiastically bought up any shares.
The only trouble was that all three companies were doing so it's good that they started earning good dividends on common stock for the first time in their lives. Now the major shareholders no longer wanted to cede control. ANDх акции были хорошо приняты на Уличной бирже, и они продали часть акций, с которыми готовы были расстаться, и теперь их все устраивало. The capitalization of each of these companies individually was too small for them to become really attractive to the market, and this is where the firm of Jim Bernes appeared on the scene. ANDдея заключалась в том, что объединенная компания будет достаточно крупной, чтобы пробиться на фондовую биржу, и новые акции можно будет сделать более привлекательными и дорогими, чем прежние. For Wall Street, this is a common trick - change the color of the shares and sell them more expensive. Скажем, акции никак не удается поднять до 100. But если разбить каждую акцию на четыре, то иногда такие новые акции удается запускать в оборот по 30 или 35. А это то же самое, как если бы старые пошли по 120-140, на что no one could ever count.
As I understand it, Bernes and his associates managed to persuade some of their friends, who had just taken possession of blocks of shares in the rather large Gray Stove company, to join the consolidated furnace company at the rate of four shares of the new company in exchange for one Gray Stove. Then the Midland and Western companies joined them on a share-for-share basis. ANDх акции ходили на Уличной бирже по 25-30, а акции «Грей стоув», которая была лучше известна и выплачивала дивиденды, шли примерно по 125.
It was necessary to raise several million dollars to buy back shares from those shareholders who did not want to change, but demanded only cash, as well as to increase working capital and to develop a new company. Бернес повидался с президентом своего банка, и тот любезно ссудил синдикату три с половиной миллиона dollars. IN качестве залога он взял сто тысяч акций новой корпорации. The syndicate assured the president, or so I was told, that the price of the shares could not be less than 50. A very profitable business was planned.
The syndicate's first mistake was the wrong timing. The market was already saturated with new share issues, and they should have known that. But даже в это время они могли бы получить неплохую прибыль, если бы не задумали сорвать такой же бешеный куш, как удавалось многим в начале бума.
From this it should not be concluded that Jim Bernes and his companions were fools or inexperienced babies. This были опытные и закаленные люди. Heи не были новичками на Уолл-стрит, а некоторые даже очень преуспели на бирже. But они просто переоценили покупательную способность публики. IN конце концов, покупательную способность можно узнать только на опыте. A more costly mistake was to count on a continuation of the bull market. It seems to me that the reason was that these people experienced such a strong and, most importantly, such a quick success that they did not even have any doubts that they would manage to pull off this operation even before the end of the bull market. Many people knew these people, and they were respected among stockbrokers.
The operation was highly publicized. Newspapers devoted entire pages to promotion. Newspapermen wrote about the American furnace industry, whose products are known all over the world. INся сделка обрела патриотическую окраску, и речь пошла чуть ли не о национальном престиже и месте в мировой конкуренции. It was assumed that the markets of Asia, Africa and Latin America were already in the pocket of the new corporation.
ANDмена директоров компании были хорошо известны читателям финансовых изданий. The advertising was so good, and the promises of anonymous insiders about future prices sounded so certain and convincing, that the market for new shares was almost ready. IN результате, когда подписка была закончена, выяснилось, что при цене в 50 долларов выделенных для подписки акций не хватает на удовлетворение двадцати пяти процентов заявок.
Just imagine it! In theory, the syndicate could hope for such success in selling new shares only after weeks of hard work, which would be able to bring the price to 75 or even higher, in order to then receive an average selling price of 50. Thus, the price of old shares of companies combined in a new corporations, grew by almost one hundred percent. This был переломный момент, и они не сумели встретить его должным образом. Откуда следует, что у каждого дела свои правила и что общая мудрость менее ценна, чем конкретные знаниI. The syndicate, delighted by the unexpectedly large demand for shares, decided that the public was ready to buy them in any quantity and at any price. AND они оказались такими тупицами, что решили размещать не все акции. But если уж они решили повести себя со свинской жадностью, это нужно было делать с умом. Even in such a swine business need to be intelligent.
ANDм бы следовало, разумеется, продать подписчикам все заказанные ими акции. As a result, they themselves would have had fewer of these shares than they expected, but they would have had the means to support the exchange rate at the right time, and it would have cost them nothing. Heи могли безо всяких усилий занять сильную стратегическую позицию, которую лично я всегда пытаюсь создать для себя в ходе манипулирования акциями. They would have the resources to protect the course from falling and to build confidence in the stability of their course and in the syndicate that supports them. ANDм бы не следовало забывать, что с продажей акций публике их работа не заканчиваетсI. Shares are only a part of what was to be sold.
Heи считали себя редкостными удачниками, но лишь до тех пор, пока не вышли на свет последствия их двух капитальных ошибок. The public didn't buy any more new shares because the market as a whole was in a pullback trend. ANDнсайдеры повели себя как посторонние и отказались от поддержки новых акций «Объединенных