If
it did not go through on the first financing then the idea was to
"refinance." The process of "refinancing" was simply the game of sending
good money after bad. In the majority of cases the need of refinancing
arises from bad management, and the effect of refinancing is simply to
pay the poor managers to keep up their bad management a little longer.
It is merely a postponement of the day of judgment. This makeshift of
refinancing is a device of speculative financiers. Their money is no
good to them unless they can connect it up with a place where real work
is being done, and that they cannot do unless, somehow, that place is
poorly managed. Thus, the speculative financiers delude themselves that
they are putting their money out to use. They are not; they are putting
it out to waste.
I determined absolutely that never would I join a company in which
finance came before the work or in which bankers or financiers had a
part. And further that, if there were no way to get started in the kind
of business that I thought could be managed in the interest of the
public, then I simply would not get started at all.
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