Every young man who enters business will at some time or another meet a similar crisis which will determine the bias of his career and dictate his habitual technique in negotiation.
But he may well exclaim, "How do you help me? You say that courage may be stubbornness and even stupidity—and compromise a mere form of cowardice or weakness. Where is the true courage which yet admits of compromise to be found?
It is the old question: How can firmness be combined with adaptability to circumstances? There is no answer except that the two qualities must be made to run concurrently in the mind. One must be responsive to the world, and yet sensible of one's own personality. It is only the special circumstance of a grave crisis which will put a young man to this crucial test of judgment. The case will have to be judged on its merits, and yet the final decision will affect the whole of his career. But one practical piece of advice can be given. Never bully, and never talk about the whip-hand—it is a word not used in big business.
The view of the intellect often turns towards compromise when the direction of the character is towards battle. Such a conflict of tendencies is most likely to lead to the wise result. The fusion of firmness with a careful weighing of the risks will best attain the real decision which is known as courage. The intellectual judgment will be balanced by the moral side. Any man who could attain this perfect balance between these two parallel sides of his mind would have attained, at a single stroke, all that is required to make him eminent in any walk of life. One regards perfection, but cannot attain it. None the less, it is out of this struggle to combine a sense of proportion with an innate hardihood that true courage is born; and courage is success.
IX
PANIC
Panic is the fear which makes great masses of men rush into the abyss without due reason. It is, in fact, a mass sentiment with which there is no reasoning. Yet at one time or another in his career every man in business will be confronted with a stampede of this character, and if he does not understand how to deal with it, he will be trampled in the mud.
The purely stubborn man will be the first to go under. He will say, and may be perfectly right in saying, that there is no real cause for anxiety. He will prepare to run slap through the storm, and refuse to reef a single financial sail. He forgets that the mere existence of panic in the minds of others is in itself as hard a factor in the situation as the real value of the properties on the market which are being stampeded. The atmosphere of the business world is a reality even when the views which produce it are wrong. To face a panic one must first of all realise the intrinsic facts, and then allow for the misreading of others. It is the plastic and ingenious mind which will best grapple with these unusual circumstances. It will invent weapons and expedients with which to face each new phase of the position. "Whenever you meet an abnormal situation," said the sage, "deal with it in an abnormal manner." That is sound advice. But a business panic is, after all, a rare phenomenon—something a man need only have to face once in a lifetime. It is the panic in the mind of the individual which is the perpetual danger. How many men are there who let this perpetual fear of financial disaster gnaw at their minds like a rat in the dark? Those who only see the mask put on in the daytime would be astonished to know the number of men who lay awake at night quaking with fear at some imagined disaster, the day of which will probably never come. These are the men who cannot keep a good heart—who lack that particular kind of courage which prevents a man becoming the prey of his own nervous imagination. They sell out good business enterprises at an absurdly low price because they have not got the nerve to hold on. Those who buy them secure the profits. One may pity the sellers, but cannot blame the buyers. Those who have the courage of their judgment are bound to win. These pessimists foresee all the possibilities, and just because they foresee too much, it may be that they will spin out of the disorder of their own minds a real failure which a little calmness and courage would have avoided.
The moment a man is infected with this internal panic-fear, he ceases to be able to exercise his judgment. He is convinced, let us say, that the raw material of his industry is running short. He sees himself with contracts on hand which he will not be able to complete. Very likely there is not the remotest risk of any such shortage arising, but, in the excess of his anxiety, he buys too heavily, and at too high a price. His actions become impulsive rather than reasoned. It is true that in the perfectly balanced temperament action will follow on judgment so quickly that the two operations cannot be distinguished. Such decisions may appear to be precipitate or impulsive, but they are not really so. But the young man who has the disease of fear in his brain cells will act on an impulse which is purely irrational, because it is based on a blind terror and not on a reasoned experience.