Debt of Honor jr-6 Page 7

  Well, nearly everything.

  On the front service panel of each of the mainframes was an SCSI port. This was an innovation for the new models, an implicit bow to the fact that desktop computers were so powerful that they could upload important information far more easily than the old method of hanging a tape reel. In this case, the upload terminal was a permanent fixture of the system. Attached to the overall system control panel which controlled Alpha, Beta, and Zulu was a third-generation Power PC, and attached to it in turn was a Bernoulli removable-disk drive. Colloquially known as a "toaster" because its disk was about the size of a piece of bread, this machine had a gigabyte of storage, far more than was needed for this program.

  "Okay?" the engineer asked.

  The system controller moved his mouse and selected Zulu from his screen of options. A senior operator behind him confirmed that he'd made the right selection. Alpha and Beta were doing their normal work, and could not be disturbed.

  "You're up on Zulu, Chuck."

  "Roger that," Chuck replied with a smile. The pinstriped engineer slid the cartridge into the slot and waited for the proper icon to appear on the screen. He clicked on it, opening a new window to reveal the contents of PORTA-I, his name for the cartridge.

  The new window had only two items in it: INSTALLER and ELECTRA-CLERK-2.4.0. An automatic antivirus program immediately swept through the new files, and after five seconds pronounced them clean.

  "Looking good, Chuck," the sys-con told him. His supervisor nodded concurrence.

  "Well, gee, Rick, can I deliver the baby now?"

  "Hit it."

  Chuck Searls selected the INSTALL icon and double-clicked it.

  ARE YOU SURE YOU WANT TO REPLACE "ELECTRA-CLERK 2.3.1" WITH NEW PROGRAM "ELECTRA-CLERK 2.4.0"? a box asked him. Searls clicked the "YES" box.

  ARE YOU REALLY SURE???? another box asked immediately.

  "Who put that in?"

  "I did," the sys-con answered with a grin.

  "Funny." Searls clicked YES again.

  The toaster drive started humming. Searls liked systems that you could hear as they ran, the whip-whip sounds of the moving heads added to the whir of the rotating disk. The program was only fifty megabytes. The transfer took fewer seconds than were needed for him to open his bottle of spring water and take a sip.

  "Well," Searls asked as he slid his chair hack from the console, "you want to see if it works?"

  He turned to look out. The computer room was walled in with glass panels, but beyond them he could see New York Harbor. A cruise liner was heading out; medium size, painted white. Heading where? he wondered. Someplace warm, with white sand and blue skies and a nice bright sun all the time. Someplace a hell of a lot different from New York City, he was sure of that. Nobody took a cruise to a place like the Big Apple. How nice to be on that ship, heading away from the blustery winds of fall. How much nicer still not to return on it, Searls thought with a wistful smile. Well, airplanes were faster, and you didn't have to ride them back either.

  The sys-con, working on his control console, brought Zulu on-line. At 16:10:00 EST, the backup machine started duplicating the jobs being done by Alpha, and simultaneously backed up by Beta. With one difference. The throughput monitor showed that Zulu was running slightly faster. On a day like this, Zulu normally tended to fall behind, but now it was running so fast that the machine was actually "resting" for a few seconds each minute.

  "Smokin', Chuck!" the sys-con observed. Searls drained his water bottle, dropped it in the nearest trash bucket, and walked over.

  "Yeah, I cut out about ten thousand lines of code. It wasn't the machines, it was the program. It just took us a while to figure the right paths through the boards. I think we have it now."

  "What's different?" the senior controller asked. He knew quite a bit about software design.

  "I changed the hierarchy system, how it hands things off from one parallel board to another. Still needs a little work on synchronicity, tally isn't as fast as posting. I think I can beat that in another month or two, cut some fat out of the front end."

  The sys-con punched a command for the first benchmark test. It came up at once. "Six percent faster than two-point-three-point-one. Not too shabby."

  "We needed that six percent," the supervisor said, meaning that he needed more. Trades just ran too heavy sometimes, and like everyone in the Depository Trust Company, he lived in fear of falling behind.

  "Send me some data at the end of the week and maybe I can deliver a few more points to you," Searls promised.

  "Good job, Chuck."

  "Thanks, Bud."

  "Who else uses this?"

  "This version? Nobody. A custom variation runs the machines over at CHIPS."

  "Well, you're the man," the supervisor noted generously. He would have been less generous had he thought it through. The supervisor had helped design the entire system. All the redundancies, all the safety systems, the way that tapes were pulled off the machines every night and driven upstate. He'd worked with a committee to establish every safeguard that was necessary to the business he was in. But the quest for efficiency—and perversely, the quest for security—had created a vulnerability to which he was predictably blind. All the computers used the same software. They had to. Different software in the different computers, like different languages in an office, would have prevented, or at the very least impeded, cross-talk among the individual systems; and that would have been self-defeating. As a result, despite all the safeguards there was a single common point of vulnerability for all six of his machines. They all spoke the same language. They had to. They were the most important, if the least known, link in the American trading business.

  Even here, DTC was not blind to the potential hazard. ELECTRA-CLERK 2.4.0 would not be uploaded to Alpha and Beta until it had run for a week on Zulu, and then another week would pass before they were loaded onto the backup site, whose machines were labeled "Charlie," "Delta," and "Tango." That was to ensure that 2.4.0 was both efficient and "crash-worthy," an engineering term that had come into the software field a year earlier. Soon, people would get used to the new software, marvel at its faster speed. All the Stratus machines would speak exactly the same programming language, trade information back and forth in an electronic conversation of ones and zeros, like friends around a card table talking business. Soon they would all know the same joke. Some would think it a good one, but not anyone at DTC.

  3—Collegium

  "So, we're agreed?" the Chairman of the Federal Reserve Board asked.

  Those around the table nodded. It wasn't that hard a call. For the second time in the past three months, President Durling had made it known, quietly, through the Secretary of the Treasury, that he would not object to another half-point rise in the Discount Rate. That was the interest rate which the Federal Reserve charged to banks that borrowed money—where else would they borrow such sums, except from the Fed? Any rise in that rate, of course, was passed immediately on to the consumer.

  It was a constant balancing act, for the men and women around the polished oak table. They controlled the quantity of money in the American economy. As though by turning the valve that opened or closed the floodgate on an irrigation dam, they could regulate the amount of currency that existed, trying always not to provide too much or too little.

  It was more complex than that, of course. Money had little physical reality. The Bureau of Engraving and Printing, located less than a mile away, had neither the paper nor the ink to make enough one-dollar bills for what the Fed parceled out every day. "Money" was mainly an electronic expression, a matter of sending a message: You, First National Bank of Podunk, now have an additional three million dollars which you may lend to Joe's Hardware, or Jeff Brown's Gas-and-Go, or for new homeowners to borrow as mortgage loans to pay back for the next twenty years. Few of these people were paid in cash—with credit cards there was less for a robber to steal, an employee to embezzle, or most inconveniently of all, a clerk to count, reco
unt, and walk to the local branch of the bank. As a result, what appeared by the magic of computer E-mail or teleprinter message was lent out by written draft, to be repaid later by yet another theoretical expression, usually a check written on a small slip of special paper, often decorated with the pictures of a flying eagle or a fishing boat on some lake that didn't exist, because the banks competed for customers and people liked such things.

  The power of the people in this room was so stunning that even they rarely thought about it. By a simple decision, the people around the table had just made everything in America cost more. Every adjustable-rate mortgage for every home, every auto loan, every credit card revolving line, would become more expensive every month. Because of that decision, every business and household in America would have less disposable income to spend on employee benefits or Christmas toys. What began as a press release would reach into every wallet in the nation. Prices would increase on every consumer item from home computers to bubble gum, thus reducing further still everyone's real buying power.

  And this was good, the Fed thought. All the statistical indicators said the economy was running a little too hot. There was a real danger of increasing inflation. In fact, there was always inflation to one degree or another, but the interest raise would limit it to tolerable levels. Prices would still go up somewhat, and the increase in the discount rate would make them go up further still.

  It was an example of fighting fire with fire. Raising interest rates meant that, at the margin, people would borrow less, which would actually reduce the amount of money in circulation, which would lessen the buying pressure, which would cause prices to stabilize, more or less, and prevent something that all knew to be more harmful than a momentary blip in interest rates. Like ripples expanding from a stone tossed into a lake, there would be other effects still. The interest on Treasury bills would increase. These were debt instruments of the government itself. People—actually institutions for the most part, like banks and pension funds and investment firms that had to park their clients' money somewhere while waiting for a good opportunity on the stock market—would give money, electronically, to the government for a term varying from three months to thirty years, and in return for the use of that money, the government itself had to pay interest (much of it recouped in taxes, of course). The marginal increase in the Federal-funds rate would raise the interest rate the government had to pay—determined at an auction. Thus the cost of the federal deficit would also increase, forcing the government to pull in more of the domestic money supply, reducing the pool of money available to personal and business loans and further increasing interest rates for the public through market forces over and above what the Fed enforced itself. Finally, the mere fact that bank and T-Bill rates would increase made the stock market less attractive to investors because the government-guaranteed return was "safer" than the more speculative rate of return anticipated by a company whose products and/or services had to compete in the marketplace.

  On Wall Street, individual investors and professional managers who monitored economic indicators took the evening news (increases in the Fed rate were usually timed for release after the close of the markets) phlegmatically and made the proper notes to "go short on" (sell) their positions in some issues. This would reduce the posted values of numerous stocks, causing the Dow Jones Industrial Average to sink. Actually, it was not an average at all, but the sum of the current market value of thirty blue-chip stocks, with Allied Signal on one end of the alphabet, Woolworth's on the other, and Merck in the middle. It was an indicator whose utility today was mainly that of giving the news media something to report to the public, which for the most part didn't know what it represented anyway. The dip in "the Dow" would make some people nervous, causing more selling, and more decline in the market until others saw opportunity in stock issues that had been depressed farther than they deserved to be. Sensing that the true value of those issues was higher than the market price indicated, they would buy in measured quantities, allowing the Dow (and other market indicators) to increase again until a point of equilibrium was reached, and confidence restored. And all these multifaceted changes were imposed on everyone's individual lives by a handful of people in an ornate boardroom in Washington, D.C., whose names few investment professionals even knew, much less the general public.

  The remarkable thing was that everyone accepted the entire process, seemingly as normal as physical laws of nature, despite the fact that it was really as ethereal as a rainbow. The money did not physically exist. Even "real" money was only specially made paper printed with black ink on the front and green on the back. What backed the money was not gold or something of intrinsic value, but rather the collective belief that money had value because it had to have such value. Thus it was that the monetary system of the United States and every other country in the world was entirely an exercise in psychology, a thing of the mind, and as a result, so was every other aspect of the American economy. If money was simply a matter of communal faith, then so was everything else. What the Federal Reserve had done that afternoon was a measured exercise in first shaking that faith and then allowing it to reestablish itself of its own accord through the minds of those who held it. Holders of that faith included the governors of the Fed, because they truly understood it all-or thought that they did. Individually they might joke that nobody really understood how it all worked, any more than any of them could explain the nature of God, but like theologians constantly trying to determine and communicate the nature of a deity, it was their job to keep things moving, to make the belief-structure real and tangible, never quite acknowledging that it all rested on nothing even as real as the paper currency they carried with them for the times when the use of a plastic credit card was inconvenient.

  They were trusted, in the distant way that people trusted their clergy, to maintain the structure on which worldly faith always depended, proclaiming the reality of something that could not be seen, an edifice whose physical manifestations were found only in buildings of stone and the sober looks of those who worked there. And, they told themselves, it all worked. Didn't it? In many ways Wall Street was the one part of America in which Japanese citizens, especially those from Tokyo itself, felt most at home. The buildings were so tall as to deny one a look at the sky, the streets so packed that a visitor from another planet might think that yellow cabs and black limousines were the primary form of life here. People moved along the crowded, dirty sidewalks in bustling anonymity, eyes rigidly fixed forward both to show purpose and to avoid even visual contact with others who might be competitors or, more likely, were just in the way. The whole city of New York had taken its demeanor from this place, brusque, rapid, impersonal, tough in form, but not in substance. Its inhabitants told themselves that they were where the action was, and were so fixed on their individual and collective goals that they resented all the others who felt precisely the same way.

  In that sense it was a perfect world. Everyone felt exactly the same. Nobody gave much of a damn about anyone else. At least, that's the way it appeared. In truth, the people who worked here had spouses and children, interests and hobbies, desires and dreams, just like anybody else, but between the hours of eight in the morning and six in the evening all that was subordinated to the rules of their business. The business, of course, was money, a class of product that knew no place or loyalty. And so it was that on the fifty-eighth floor of Six Columbus Lane, the new headquarters building of the Columbus Group, a changeover was taking place.

  The room was breathtaking in every possible aspect. The walls were solid walnut, not veneer, and lovingly maintained by a well-paid team of craftsmen. Two of the walls were polished glass that ran from the carpet to the Celotex ceiling panels, and offered a view of New York Harbor and beyond. The carpet was thick enough to swallow up shoes—and to deliver a nasty static shock, which the people here had learned to tolerate. The conference table was forty feet of red granite, and the chairs around it priced out at nearly two thousand doll
ars each.

  The Columbus Group, founded only eleven years before, had gone from being just one more upstart, to enfant terrible, to bright rising light, to serious player, to among the best in its field, to its current position as a cornerstone of the mutual-funds community. Founded by George Winston, the company now controlled a virtual fleet of fund-management teams. The three primary teams were fittingly called Nina, Pinta, and Santa Maria, because when Winston had founded the company, at the age of twenty-nine, he'd just read and been captivated by Samuel Eliot Morison's The European Discovery of the New World, and, marveling at the courage, vision, and sheer chutzpah of the restless navigators from Prince Henry's school, he'd decided to chart his own course by their example. Now forty, and rich beyond the dreams of avarice, it was time to leave, to smell the roses, to take his ninety-foot sailing yacht on some extended cruises. In fact, his precise plans were to spend the next few months learning how to sail Cristobol as expertly as he did everything else in his life, and then to duplicate the voyages of discovery, one every summer, until he ran out of examples to follow, and then maybe write his own book about it.

  He was a man of modest size that his personality seemed to make larger. A fitness fanatic—stress was the prime killer on the Street—Winston positively glowed with the confidence imparted by his superb conditioning. He walked into the already-full conference room with the air of a President-elect entering his headquarters after the conclusion of a successful campaign, his stride fast and sure, his smile courtly and guileless. Pleased with this culmination of his professional life on this day, he even nodded his head to his principal guest.

  "Yamata-san, so good to see you again," George Winston said with an extended hand. "You came a long way for this."

  "For an event of this importance," the Japanese industrialist replied, "how could I not?"