"No, no, no," Condley said rapidly. "Of course not. Nothing like that."
He looked sharply at Luckman. "Do you know anything about the Converter?"
Jim Luckman glanced at Bending before replying. Bending"s face remained expressionless. "Go ahead, Jim," he said, "square with him."
Luckman spread his hands. "I know that Sam was working on something he called a Converter. I don"t know anything more about it than that. Sam keeps his ideas secret until he gets them to a marketable stage, which is all right with me. I have enough work to do, handling the stuff he"s already patented, without worrying about anything that isn"t salable yet. So?"
Condley nodded, then gestured toward a chair. "Sit down, Mr. Luckman. Do you know these other gentlemen?" he asked rhetorically. He proceeded to introduce the others. Sam Bending noted with satisfaction that Luckman looked rather puzzled when the Russian was introduced.
Condley himself sat down again, and said: "Well, we"re all here. We"re not going to make this formal, gentlemen, but I hope it won"t develop into a heated argument, either. Let"s try to keep our tempers."
"First, as to the Converter itself. We all know, with the possible exception of Mr. Luckman, what it does, but for his benefit, we"ll go over that. The Converter, by means of what Dr. Larchmont has been wont to call "a very elegant method", produces electrical power directly from the fusion of hydrogen into helium. A pilot model, with a total volume of a little more than one and one-quarter cubic feet, is capable of turning out up to five hundred horsepower, either DC or AC in a wide range of frequencies. The voltage can be regulated from zero to one thousand volts by simply setting a dial.
"The device is powered by using ordinary water as fuel. At full capacity, the Converter consumes approximately four hundred milligrams of water per hour, which can easily be drawn from the moisture of the air. The machine is thus self-fueling.
"Since the nuclear energy released is converted almost one hundred per cent into electrical current, there is no danger from radiation; since the process is, by its very nature, self-limiting, there is no danger of explosion. The worst that can happen is for the machine to burn out, and, I understand, it won"t do that unless it is purposely tampered with to make it do so.
"Finally, the device is so inexpensive to produce that it could be sold for about one-quarter of the price of an ordinary automobile." He stopped, cleared his throat, and glanced at Larchmont and Vanderlin. "Am I essentially correct, gentlemen?"
Larchmont nodded, and Vanderlin said, "That"s about it."
Jim Luckman looked at Sam Bending in open admiration. "Wow," he said softly. "You"re quite a genius, Sam."
"Very well, gentlemen," Condley continued, "we know what this device will do on a physical level. Now we must consider what it will do on an economic level. Have you considered what would happen if you put the Converter on the market, Mr. Bending?"
"Certainly," Bending said, with an angry glance at Olcott. "The Power Utilities would lose their pants. So what? I figure that any company which tries to steal and suppress inventions deserves a licking."
Secretary Condley glanced at Olcott as though he were trying to hold back a smile, then returned his gaze to Bending. "We won"t quibble over the ethics of the situation, Mr. Bending. You are correct in saying that Power Utilities would be bankrupt. They couldn"t stand the compet.i.tion of what amounts to almost unlimited free power. And then what would happen, with every power company in the United States suddenly put out of business?"
Sam looked puzzled. "What difference would it make? People would just be getting their power from another source, that"s all."
Richard Olcott leaned forward earnestly. "May I interject something here? I know you are angry with me, Mr. Bending--perhaps with good reason. But I"d like to point out something that you might not have recognized. Public Utilities and its co-operative independent companies are not owned by individuals. Much of the stock is owned by small share-holders who have only a few shares each. The several billion dollars that these companies are worth is spread out over the nation, not just centered with a few wealthy men. In addition, a great many shares are held by insurance companies and banks. Literally millions of people would lose money--just as surely as if it had been stolen from them--if this device went on the market."
Bending frowned. He hadn"t thought of it in exactly that way. "Still,"
he said tentatively, "didn"t blacksmiths and buggy-whip manufacturers and horse-breeders lose money after World War I?"
"Not to this extent," Olcott said, shaking his head. "This is not 1918, Mr. Bending. Sixty years ago, our economy was based on gold, not, as it is today on production and manpower, centered in the vast interlocking web of American industry."
Condley said: "Mr. Olcott said a moment ago that millions of people would lose money just as surely as if it had been stolen from them. I think it would be more proper to say that the money will be destroyed, not stolen. A thief, after all, does put money back into circulation after he steals it. But when vast amounts of wealth are suddenly removed from circulation completely, the economic balance is disastrously upset."
Sam Bending was still frowning. His grandfather had been a small businessman in 1929--not fabulously wealthy, but certainly well off by the social standards of the day. Two years later, in 1931, he was broke, wiped out completely, happy and eager to accept any odd job he could get to support his family.
Sam"s father had had to leave school during the Thirties and go to work in order to bring in enough money to keep the family going. Grandfather Bending, weakened by long hours of labor that he was physically unfit for, had become an invalid, and the entire support of the family had devolved upon Sam"s father.
He could remember his dad talking about the breadlines and the free-soup kitchens. He could remember his grandmother, her hands crippled by arthritis, aggravated by long hours at a commercial sewing machine in a clothing center sweat-shop, just so she could bring in that little extra money that meant so much to her children and her invalid husband.
Could one invention bring all that back again? Could his own harmless-looking Converter plunge millions back into that kind of misery? It seemed hardly possible, but Sam couldn"t banish the specter of the Great Depression from his mind.
"Just how far-reaching would this economic upset be?" he asked Condley.
Condley had taken out his gold fountain pen again and was rolling it between his palms. "Well, that"s a question with a long answer, Mr.
Bending. Let"s begin small and watch it spread.
"Banks are pretty safe today, aren"t they? The Federal Deposit Insurance Corporation insures all depositors for deposits up to twenty thousand dollars now. A bank is hedged in by so many legal fences that it is almost impossible for one to fail in the same way that they failed all over the country in the early Thirties. Even if one does fail, through the gross mismanagement or illegal activities of its governing board, the depositors don"t get excited; they know they"re covered. There hasn"t been a really disastrous run on a bank for more than thirty years.
"But banks don"t just keep their money in vaults; they invest it. And a significantly large percentage of that money is invested in power companies all over the nation. In an attempt to keep their heads above water, those banks would be forced to make up tremendous losses if Power Utilities failed overnight. It would force them to draw in outstanding loans for ready cash. It would mean turning in United States Savings Bonds, which would put a tremendous strain on the Government.
"In spite of that, most banks won"t be able to stay solvent because their other capital investments will be dropping rapidly in value. As Mr. Olcott said, our monetary system isn"t based on gold, but on production and goods. If Power Utilities and its members fail, you and your machine will have destroyed--made worthless--several billion dollars worth of machinery and equipment. You will have thrown tens of thousands of people out of work. You will have cut the underpinnings from beneath the American dollar.
"And it won"t stop there. What will happen to the companies that build the dynamos and the boilers and the atomic plants for the power companies? What will happen to the copper industry when the need for millions of miles of copper wire vanishes? They will all suffer tremendous setbacks, throwing tens of thousands more out of work and lowering the value of their stock drastically.
"The banks, then, will find their investments suddenly worth only a fraction of their former value. They"ll fail wholesale. And you can see what that will do to the Federal Deposit Insurance Corporation and other insurance companies."
Sam Bending nodded slowly. He could see that. Insurance companies base their business on the prediction that a certain event--death, accident, or the failure of a bank--will happen to a certain percentage of their covered clients, and they adjust their rates accordingly. But something that would change a five-percent-failure rate to a fifty-percent-failure rate would break the company.
And the unemployment rate would go up even higher. And Sam thought of something the Secretary hadn"t even mentioned. State and Federal Unemployment Insurance. What would that drain do to the treasuries of the various governments involved?
Sam Bending felt as if the thing were s...o...b..lling on him. Where would the State and Federal Governments get that money? Taxes? Don"t be silly.
How can you collect sales taxes when sales are dropping off because of unemployment? How can you get income taxes from depleted incomes? How can you charge luxury taxes when no one is buying luxuries?
Certainly essentials like food, rent, and clothing couldn"t be taxed.
People would buy as cheaply as possible, which would force down prices.
Which would--
"Where would it go from there?" Sam asked Condley in a shaken voice.
Condley glanced over at the Russian. "I believe Dr. Artomonov can answer that one for you."
Artomonov was a red-faced, fleshy man with almost no hair and a huge, bristling, gray mustache. His eyes were a startling blue. "Mr. Bending,"
he said in excellent English, "you may recall that your depression of the Thirties was not confined to America. All of Europe became involved.
The same will happen again, to a greater degree, if your machine is released to the world at this time." He brushed at his mustache with a fingertip.
"You may wonder what I am doing here, Mr. Bending. You might think that the traditional rivalry which has existed between our countries for so many decades would preclude my being admitted to such a secret session as this one. I might have thought so, too, fifteen years ago. But when something threatens _both_ our countries, the picture changes. We fought together during the Motherland War--what you call World War II--because of the common threat of German n.a.z.i terrorism. We co-operated to suppress the brush-fires that threatened us in Europe and the Middle East during the so-called Tense War. In big things we must co-operate.
"Again we are both threatened by a common source, Mr. Bending, and again we must co-operate."
Sam Bending felt a chill. The thought that he and his machine were a threat as great as that, a threat to the two greatest nations of Earth, was appalling.
"I am not a scientist, Mr. Bending," the Russian went on. "My t.i.tle comes from a degree in economics and political science, not in physical science. As soon as this machine was demonstrated to me, however, I could appreciate its power--not only physically, but economically. I immediately contacted my superiors in Moscow to discuss the problem.
"Naturally, we would like to know the ... ah ... "elegant" principle behind its operation. Equally naturally"--he smiled politely at Secretary Condley--"you will not tell us. However, my superiors in Moscow a.s.sure me that we need not worry on that score; a machine identically similar to yours was invented by one of our brilliant young scientists at the University of Moscow over four years ago. As a patriot, of course, he was willing to have the machine suppressed, and no news of it has leaked out."
Sam Bending found it difficult to keep from smiling. _Sure_, he thought, _and a man named Popov invented radio, and Yablochkov invented the electric light_.