Hubbard’s life a Shakespearian tale
4th September 2010

As I, the taxpayer, unexpectedly find myself the owner of a multitude of farms, a helicopter company and various other going concerns, along with $600 million dollars of ‘toxic’ debts courtesy of a certain finance company going belly up this week, I have resolved to take my responsibilities seriously and seek advice.
Turning to the most reputable financial advisor I know, William Shakespeare, I find Allan Hubbard has been here before me. Hubbard’s life and career are written in the words of Polonius to his son Laertes. It’s a piece of fatherly advice that establishes Polonius as a tedious advisor whose later death at the end of Hamlet’s sword is a relief to the audience. But it is a handy guide to success in business and, by the way, a window into Allan Hubbard’s rise and fall.
All that we know about Hubbard is captured in this single speech: his famous frugality (“costly thy habit as thy purse can buy, but not expressed in fancy”); his loyalty (“those friends thou hast…grapple them to thy soul with hoops of steel”; his reserve (“give every man thy ear, but few thy voice”); and his graciousness in adversity (“take each man’s censure, but reserve thy judgement”).
Ah, but then we come to the nub; “neither a borrower nor a lender be,” and, let’s face it, Mr Hubbard was both. Never mind that he conducted both with extraordinary success for 50 years, Polonius would have waited that long just to savour his downfall, and even now the crows of public opinion should be feasting on Mr Hubbard’s carcase. But here’s an unfathomable thing: from the wreckage of his life’s work Mr Hubbard has salvaged two priceless articles – friendship and the means of renewal.
Friendship is the greater prize. Polonius advises against lending “for loan oft loses both itself and friend.” Mr Hubbard has lost his lendings but retains his friends. In fact they flock to the defence of his reputation and honour. You get the feeling these are not just friends whose loyalty was secured through the government’s deposit guarantee scheme, but people who genuinely care for the man.
The loyalty of his friends lies partly in the second article – the means of renewal. Polonius cautions that “borrowing dulls the edge of husbandry,” and ain’t that true. How often in recent times have we seen the flash Harries and charlatans, the ex-rugby league stars and high rollers living up large on money borrowed from guileless investors. They self-destruct when their enterprises can no longer sustain their lifestyles. Not so Mr Hubbard. A lifetime of thrift is a perfect platform on which to rebuild his fortune.
Age and ill-health may have the last say in this saga but if Mr Hubbard is to rise above his misfortunes he will need to demonstrate two further qualities promoted by Polonius. Finding himself in a fight he must bear it “so the opposed may beware of thee:” in other words, tough it out.
Finally, “this above all: to thine own self be true, and it must follow, as the night the day, thou canst not then be false to any man.” I would say Mr Hubbard understands this very well.
As for me, the new owner of South Canterbury Finance, when I reflect on the events of the past week I find Polonius’s measured advice drowned out by the more street-wise Mr Micawber. “Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”
There are no prizes for guessing which side of the balance sheet we’ve landed on.