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diff --git a/.gitattributes b/.gitattributes new file mode 100644 index 0000000..d7b82bc --- /dev/null +++ b/.gitattributes @@ -0,0 +1,4 @@ +*.txt text eol=lf +*.htm text eol=lf +*.html text eol=lf +*.md text eol=lf diff --git a/LICENSE.txt b/LICENSE.txt new file mode 100644 index 0000000..6312041 --- /dev/null +++ b/LICENSE.txt @@ -0,0 +1,11 @@ +This eBook, including all associated images, markup, improvements, +metadata, and any other content or labor, has been confirmed to be +in the PUBLIC DOMAIN IN THE UNITED STATES. + +Procedures for determining public domain status are described in +the "Copyright How-To" at https://www.gutenberg.org. + +No investigation has been made concerning possible copyrights in +jurisdictions other than the United States. Anyone seeking to utilize +this eBook outside of the United States should confirm copyright +status under the laws that apply to them. diff --git a/README.md b/README.md new file mode 100644 index 0000000..41f976d --- /dev/null +++ b/README.md @@ -0,0 +1,2 @@ +Project Gutenberg (https://www.gutenberg.org) public repository for +eBook #62012 (https://www.gutenberg.org/ebooks/62012) diff --git a/old/62012-0.txt b/old/62012-0.txt deleted file mode 100644 index 36373d6..0000000 --- a/old/62012-0.txt +++ /dev/null @@ -1,3977 +0,0 @@ -The Project Gutenberg EBook of A Week in Wall Street, by Frederick Jackson - -This eBook is for the use of anyone anywhere in the United States and -most other parts of the world at no cost and with almost no restrictions -whatsoever. You may copy it, give it away or re-use it under the terms -of the Project Gutenberg License included with this eBook or online at -www.gutenberg.org. If you are not located in the United States, you'll -have to check the laws of the country where you are located before using -this ebook. - - - -Title: A Week in Wall Street - By One who Knows - -Author: Frederick Jackson - -Release Date: May 3, 2020 [EBook #62012] - -Language: English - -Character set encoding: UTF-8 - -*** START OF THIS PROJECT GUTENBERG EBOOK A WEEK IN WALL STREET *** - - - - -Produced by Quentin Campbell and the Online Distributed -Proofreading Team at https://www.pgdp.net (This file was -produced from images generously made available by The -Internet Archive) - - - - - -Transcriber’s Notes - -The eponymous street of the title appears in three guises: -“wall-street” (once), “Wall Street” (twice) and most commonly -“Wall-street”. - -“Mr. Jacob Broker opened an office near the wall-street”, describing -the street built on land where the old city wall was knocked down. -His descendant brokers, the author writes, have “since congregated -in the region round about Wall Street”, the name which is also used -in the book’s title. In all other places in the text it appears as -“Wall-street”. - -In the text that follows, italic text is denoted by _underscores_ -around the text. Small capitals in the printed works have been -transcribed as ALL CAPITALS. - -See the end of this document for a full list of corrections and changes. - - - * * * * * - - - - - A WEEK - - IN - - WALL STREET. - - BY - - ONE WHO KNOWS - - - NEW-YORK: - PUBLISHED FOR THE BOOKSELLERS. - - 1841. - - - - - Entered according to the Act of Congress, in the year 1841, - BY FREDERICK JACKSON, - In the Clerk’s office of District Court of the Southern District of - New-York. - - - - - TABLE OF CONTENTS. - - - CHAPTER I.—Introduction—The origin of Joint Stock - Companies, and Brokers. - - CHAPTER II.—The History of the Morrison Kennel—Nicholas - the 1st.—A Stock Speculation. - - CHAPTER III.—State Stocks—History of the Morrison Kennel - continued—Introduction of new characters—The - U. S. Bank. - - CHAPTER IV.—How Stocks are bought and sold—How Brokers get - out of a bad Speculation—How money is sometimes - made by doing a losing business—How Discounts - are made and obtained. - - CHAPTER V.—The Defaulter. - - CHAPTER VI.—A Panic. - - - - - PREFACE. - - -The following pages were written during leisure hours of the last six -or eight weeks, of which “the times” have thrown rather too many upon -the writer’s hands; and the statement of this fact, I conceive to be a -tacit admission, that such hours might have been better employed. - -They were originally composed for the writer’s own amusement; to -beguile the tediousness of otherwise idle time. And not the least -motive for this indulgence was a desire to abstract the mind from too -near a contemplation of the dark side of that picture, which I have -described as a panic. They were not written in the first place, with -any view to publication, but as each chapter was successively read in -the presence of friends, and principally for amusement, those friends -at length advised their publication; and with their advice they have -been submitted to the press, in the original manuscript, almost without -correction. - -The writer has no claims to literary qualifications, and of course he -seeks no reward of literary reputation. Were it otherwise the reader -would at once convict him of his presumption. - -Those persons who are acquainted with the business of Wall-street, -will be able to judge for themselves of the truth of the descriptions; -and those who have not that opportunity of judging, are respectfully -requested to consider the reflections and moralizing, occasionally -introduced, as made in seriousness, and the rest as the truth in -burlesque. - -That there is existing, at the present time, a demoralised condition of -principle, feeling, and practice, pervading the country throughout, in -regard to pecuniary transactions and engagements, deserving a severe -castigation, will not I believe be denied by any one; and for the -vindication of good faith and honesty, the writer could wish that the -subject had been taken in hand, by some one more skilful than himself -in the use of the scourge. - -The proper correction of public morals is public opinion; but so long -as public opinion is indifferent to the innovations that have grown -up, and so long as pecuniary credit, and the posts of honor, trust and -profit, are so frequently accorded to the most successful in their -negotiations or their intrigues, without regard to the principles, or -practices, that have placed them where they are—so long we may expect -nothing but the increase of those mischiefs, of which so many now -complain. - -I confess, that were I to write the same pages over again, with a view -to publication, I would alter, amend, and expunge much that is here. -But as I am now engaged in something that will afford more pleasure -in its pursuit, and more profit if attained, I have not time for this -purpose at present. And since the present is a time, when men’s minds -are alive to the subjects which I have endeavored to bring out in -ridicule, I submit the whole for what it is worth. - -The introduction of vulgar wit may serve to amuse some, but it is not -a passport to men’s good sense; and, although it may sometimes make a -book sell, it is not, in my opinion, the best way to convince of the -truth. And the only excuse for indulging in it is, that the subjects -of remark, and the slang frequent in Wall-street, are not of that -character which cultivate the delicate sensibilities—nor can they be -pourtrayed to the life, by such language or figures, as should grace -the conversation and writings of a gentleman. - -The practice of making a book personal, is, and ought to be condemned; -and, if it is objected that, in this, I have called persons by their -right names, or pointed too clearly at individuals, the answer is, -that, except in the case of one martial spirit, the notable Major -Downing,[1] whom I have shorn of a little of his patriotism and -courage, I have in “no instance made allusions which have not been -directly applied, and treated with much greater asperity, by all -the newspapers of the day.” And this fact, I conceive, has given me -licence, since it would be folly to wing a shaft of invective or -ridicule, if it aimed at no object. - -The major, I must suppose, will not consider himself aggrieved, -because, from his position, he was the only person whom I could -conveniently make tributary to the information I wish to give; -and, since he has so often asserted his courage, without fairly -acknowledging his identity, he has no cause to complain at being -assailed on that point. - -The remark will generally hold true, that whatever requires to be -explained, or excused, is always wrong; but, in this case, I think it -will not apply. I would therefore be understood as excusing only the -faults of the book, and not the object at which it is aimed. - -And, lastly, the writer cannot help saying that, in the face of -the trite remark that, “those who live in glass houses should not -throw stones,” he will not deny, that, in the expressive language of -Wall-street, he has himself been “flunked;” and, with this candid -acknowledgement, which will, perhaps, satisfactorily account for -the production of the book, in the minds of those who may please to -consider it an effusion of spleen,—he subscribes himself— - - Respectfully, - THE AUTHOR. - -FOOTNOTE: - -[1] We intend to refer to Major 2nd., the bosom friend of General -Jackson, not the original major, down east. - - - - -N. B. It is perceived that a considerable number of errors have escaped -notice and correction, in the following pages; but as they affect only -the orthography and the grammar, without detracting from the truth, -or the moral of the story, I have thought it best to leave their -correction to the intelligent and good humored reader, rather than mar -a page with a formidable list of errata—except, that, in one instance, -as a mere friendly suggestion, I would request the substitution, on -129th page, 7th line, of “_stewardship_” for “_friendship_.” - - - - - CHAPTER I. - - INTRODUCTION.—THE ORIGIN OF JOINT STOCK COMPANIES AND BROKERS. - - -As the practice of some readers is to begin in the middle and read a -book backwards, I respectfully request those who may open here, to -begin at the beginning and read the preface first. In case of any -captiousness of disposition on their parts, they may thereby save -themselves a good deal of ill nature, and quarrelling with the author. -But if any one is perverse, and chooses to go on without taking my -advice, I will not hold myself accountable for the preservation of his -temper, nor even of this book; for I am not sure but he may throw it -in the fire, before he gets through the first or second chapter. But, -should he even persevere and go through, until he receives my parting -“salaam,” still I request him to turn back and read the preface, that -he may see what the writer thinks of his own book. - - HOW BOOKS ARE WONT TO BE MADE. - -It is usual with authors, in the outset of their story, to introduce -to their readers their Hero and Heroine, with elaborate descriptions -of their persons, manners, habits, dress, &c. &c.; all of which is -intended, either to prepare the reader’s mind for the very interesting -positions which these personages are designed to fill, or to amuse -those who are fond of that kind of portraiture. But in this history of -“a week in Wall-street,” there is neither hero nor heroine, but a great -number and variety of characters, each of whom lives out his sunny -hour, and passes again into oblivion. Some there are, it is true, who, -from a crawling worm, pass into a chrysalis, and appear to be dead for -a time, not only to revive again with new life and beauty, but to soar -a lofty height into the world of fashion, and boast the gayest plumage -among those who float on the wind of fortune’s fickle favors. - -The veritable history of Diedrich Knickerbocker was not a truer -story than is every whit of this history of “a week in Wall-street;” -but alas for the mutations in all human affairs!—a sad change has -come over the waking dreams of the inhabitants of this goodly city, -since the days when Petrus Stuyvesant surrendered the government of -Niew-Amsterdam to the conquest-loving Briton. - - HOW NEW-YORK BECAME SO POPULOUS. - -From that day, when first its name was changed to New-York, it has not -ceased to be overrun by the stragglers from every country and clime, -but especially by those cunning vagabonds from Connecticut, and her -sister states, who had well nigh taken in their toils the venerable -Petrus and his jolly trumpeter, Antony. And they have now trodden down, -or overturned, every remnant of social order, that was so remarkable -in the time of the honest Dutchman. In one respect, at least, these -interlopers seem to be the favored of heaven—for their seed has -multiplied as the sands on the sea shore; and it is shrewdly suspected, -by some, that the gambols of the cunning Antony with the lasses of -New-Haven, in his famous journey thither, may have had some hand in -this, since never was a people known who could blow the trumpet of -their own fame, better than these same descendants from the colony of -New-Haven. - - THE OLD WALL BROKEN DOWN. - -From their love of continual change—which they call improvement—they -had no sooner gained a footing in the city, than they persuaded the -honest Dutchmen to break down the _city wall_, which had hitherto -prevented them from robbing the cabbage garden or tapping the hollands -of the rich burghers, and which, some have said, was erected partly -to prevent their too frequent solace of themselves with the softer -beauties concealed by close caps and short petticoats. And they further -persuaded them to convert the ground into a street, thence called -“Wall-street;” which, being the scene of their first victory over that -prejudice which prefers to keep folks honest when they are so, has -ever since continued to be the focus of all enterprises undertaken -for one’s own benefit, to be accomplished by other peoples’ means. -And it is even said, that the projectors of this work, in reality, -designed only to gain for themselves unobstructed access to the good -living, and the pretty damsels, of Niew-Amsterdam, now New-York. Want -of means themselves to perform so great a work, first suggested to -them the idea of a Stock Company, for objects of public improvement; -the principal virtue of which is, to replenish the fortunes of those -who plan and conduct it, as is more than suspected, since most of the -money generally stops short of its intended application, and can only -be accounted for by mistakes in the original estimates, or expenses -preliminary to the commencement of the real work. - - MR. SOLOMON SINGLE-EYE. - -The good Dutchmen at first looked astonished at a project so bold and -vast; they next smoked a pipe and doubted; but on an explanation being -given by Mr. Solomon Single-Eye, of all its advantages, accompanied -with a prompt offer to embark HIS _whole fortune_, and give his -services for nothing, the shares were eagerly caught up. And as the -scheme rose in public estimation, the shares rose in nominal value, -greatly above their subscription price; and such was the clamor for -more, that the directors—having nothing in view but the public -good—disinterestedly consented to sell out theirs at an advance of -only seventy-five per cent., in order to appease public opinion, -in respect of their apparent partiality in having retained any for -themselves. Still, however, the inquiry for shares was eager and -constant, so great was the public confidence in the integrity and -shrewdness of the directors, and of Mr. Single-Eye, particularly. - -At this juncture, Mr. Jacob Broker opened an office near the -wall-street, that was to be, for the sale and purchase of shares. - - MR. JACOB BROKER. - -Mr. Broker was a man of great shrewdness and penetration. His -education, to be sure, had been somewhat neglected, having been -superintended in his youth by a strolling professor of the “black -art,” whom to follow, he ran away from home at the age of fourteen. -But his genius was of that universal kind which all men desire and but -few possess—and hence the facility with which he adapted himself to -his new employment. His initiation into the black art now stood him -instead of capital, and made it easy for him to convince the honest -Dutchmen of his power to turn “metals of drossiest ore to purest gold.” -To him, therefore, they all went, whether to buy or to sell shares -in the Wall-street Stock Company. And as he had often learned by the -sad vicissitudes of life, the necessity of turning an honest penny -for himself, he reasoned as all philosophers would do in the same -circumstances, “that if he took not the tide of fortune at its flood, -he might again suffer under the same unhappy conviction.” In other -words, he thought, and acted accordingly, that if he did not embrace -the opportunity to improve his fortune when it offered, it might -never present itself again. He shrewdly guessed that he might greatly -aid the rise in the value of the shares by appearing to be _entirely -disinterested_—while at the same time he contrived, generally, to be -the real purchaser when people employed him to sell, and the seller -when they employed him to buy: by which means, as the stock gradually -rose in the market,—the commission being considerable, the profit -more—and as he bought and sold the whole number of shares several -times over, he was enabled to abstract from the pockets of the honest -Dutchmen and placing it in his own, in solid cash, nearly the whole -amount of the nominal rise in value on all the shares. - - HONESTY AND DISINTERESTEDNESS. - -He was of course a man of substance, made so by his wits, and at the -expense of the burghers of New-York. - -That he was a strictly honest man, is quite certain; for his old -master of the “black art” is known to have said, that when he paid -him a secret visit, and suggested the propriety of manufacturing -a few certificates of shares, to meet the urgency of demand, Jacob -replied, that “if detected it would spoil the profits of his trade, and -therefore, in honor, he could not consent to the proposal.” - -He honestly paid his debts, also, for the same reason, and as a man of -public spirit, lent his means to assist in building the “old jail,” to -confine all those rogues in, who could not pay theirs. - - PRINCIPLES OF TRADE. - -To be sure, he acted on the principle that there is no friendship in -trade, and that a bargain is a bargain, however made, and must be -fulfilled. What if his customers _did_ pay him a commission? he sold -only his services, not his wits; and them he had a right to use for -his own benefit. He had long since learned, in his profession of the -“black art,” that the measure of success depended on the closeness of -his secret, and if people did not know his arts, he thought it but -right that they should pay for being amused by them; and following this -mode of reasoning, in the scale of progression upward to the higher -sciences, he judged rightly, “that if people were ignorant they must -pay for instruction.” - - MORAL REFLECTIONS. - -Skilfulness in trade was, in his opinion, justly placed at the head of -moral science, of which he had now become a professor; and why should -he be expected to impart what he knew without a “quid pro quo?” Not he; -but rather following the plain dictates of wisdom, he would learn all -he could, and impart nothing. - -If he knew better how to make a bargain than his customers did, that -was their fault, not his. People should look before they leap, and look -too with their own eyes, not attempt to borrow his; they should know -his mode of business before they came to him; not come and complain -afterwards. - -These reflections while they clearly show the astuteness of his -mind, also suggest the reasons why stock rose rapidly; and point -out the means by which Mr. Broker pocketed nearly all the advance -himself,—without ever retaining more than ten shares in his hands at -any one time. - -In time Mr. Broker became a sage, and, as a fruit of his wisdom, left -behind him a code of laws which have ever since been the standard of -Wall-street. - - VIRTUE OF CORPORATIONS. - -We shall have frequent occasion to refer to points in this code, -but, for the present, will only mention, that he improved upon the -great Lacedemonian, who is said to have made a law that placed the -crime of stealing only in detection—Mr. Broker placed it only in the -punishment. It was of no consequence that a man should be found out -in his roguery—that only established his character for shrewdness—a -word of modern coinage, which some silly and old fashioned people have -supposed to be, only a mitigated term for dishonesty. He never became -a criminal until the law reached him with punishment; and the merit of -his character, as well as the measure of his success, depended entirely -on the length he could go, and the frequency of his exploits, and still -escape the lash of the law.—And herein is seen the peculiar virtue -and particular wisdom of those contrivances called Corporations, and -Joint Stock Companies, of which Mr. Broker was a great encourager. An -ingenious device, wherein an imaginary body alone is made accountable -for the acts of its members; while the real actors may hide behind it, -as long as it has power to protect them, and scamper off without fear, -when it has not. It has also this peculiar property, that, when the -directors have taken to their heels, like the ignis-fatuus, the farther -you pursue it the farther it recedes; and he who follows it long will, -very likely, get stuck in the swamp from whose foul vapours it has been -generated: and, at most, if fairly got hold of, it is never found to -consist of any thing more than a worthless bit of parchment. - - DISCOVERY IN NATURAL HISTORY. - -We have said that Mr. Broker was a man of universal genius. In proof of -which, he essentially improved the vocabulary of English; and in two -particulars, conclusively shew that Johnson and Buffon are in error, -viz.—that a Bear means a man who has no shares in the Stocks—one -stripped—in an em-bar-assed condition, and that a Bull means a man -who has more shares than he can keep, and has gored his neighbour to -procure them. - -His was the first Broker’s office ever established in the city of -New York; and from him have descended all the race of brokers which -have since congregated in the region round about Wall Street. Whether -his posterity have answered Dr. Johnson’s[2] definition of the word -broker, viz: “A negotiator between two parties who contrives to cheat -both,” will be seen in the course of this history. - - SIMPLICITY OF THE GOVERNMENT. - -When the gallant Col. Nicholls had, in the name of the crown of Great -Britain, taken full possession of the city and territory of New -Amsterdam, and bestowed upon it the name of his patron the Duke of -York; by way of conciliating the Burghers, he left them undisturbed -in all their civil and domestic privileges, without embarrassing them -with the intricacies of British laws. And in those days of simple -legislation, the government had not yet learned the way to purchase -power, and make people dishonest, by selling corporate privileges. And -demagogues had not yet learned to claim the monopoly, as a reward for -their intrigues. Consequently, Mr. Single-Eye, and his coadjutors in -the matter of the Wall-street Stock Company, had the power of fixing -things all their own way; that is, they made all their own laws, -rules, and regulations, without let or hindrance of any kind. And so -ingeniously were they contrived, that, by their natural operation, the -money which came in by subscription, all leaked out again exactly at -the right place and at the right time. Since that time, the wisdom of -the Legislators of most of the states has decreed, that people shall -not associate in bodies for purposes of roguery, without first buying -a licence; and, under the name of Charters, they will sell licences to -cheat the public, as the Pope sells plenary indulgences, to replenish a -wasted Treasury, (_vide the great state of Pennsylvania and the U. S. -Bank._) - - WHAT A DIRECTOR SHOULD BE. - -It is worthy of remark and imitation, that neither the president nor -the cashier of the Wall-street Stock Company ever ran away with a -dollar of their money; so rigid a _surveillance_ did Mr. Single-Eye -keep over its affairs. Although nothing but a director himself, he -held the true doctrine, that directors should really be the head of an -institution, and that the president and cashier were merely heads of -the clerks. Mr. Single-Eye was moreover of opinion, that it was better -for a director to hustle the money into his own pocket, and make sure -of the gain, than to suffer another to do it, and incur the odium -himself. To be sure, he was somewhat at variance with Mr. Broker on -this point, but Single-Eye had the power, and there is nothing like -that for enforcing a good reason. - - DEGENERACY OF OUR DAYS. - -And here I cannot forbear to remark on the degeneracy of these days, -when directors so often give up all management to the presidents and -cashiers, thus leading them into temptation, and provoking them to -do that, which they might do themselves with greater safety, because -they are less immediately responsible. Alas! how many men, with their -families, have been ruined by this cruel lack of vigilance. - -I should not have said so much on the origin of stock companies -and brokers, but that I thought it necessary, to a more perfect -understanding of what shall follow. Having said so much, it is proper -that I should make known the fate of this first attempt at stock -jobbing. And it is especially necessary that I should do so, for the -benefit of those widows and orphans, who have any doubts about the -entire safety of investing their little fortunes in the like securities. - -Every body has read of the severe reproof once administered, by a -Spanish lady, to a gentleman who complained of the indelicacy of their -statuary. She told him that, had his own mind been pure, he would -never have discovered indelicacy in what was “true to nature.” - - STOCK COMPANIES. - -It is well known that stock companies, such as banks, insurance -companies, trust companies, and the like, are got up entirely by -disinterested men, for the purpose of affording an opportunity for -ladies of a “certain age,” widows, and orphans, to invest what little -funds they have in safety, with the certainty of a _moderate_ income. -Accordingly, whenever a company is started, and the stock _all_ -subscribed for by the managers, this class of people are particularly -favored, in being permitted to purchase some shares at a trifling -premium of ten or fifteen per cent., and urged to take an interest -before they shall go higher. And then, after two or three years’ -refusal to make any dividend, for fear they might spend it imprudently, -the same gentlemen who sold the stock, are willing to buy it back -again at a discount of only fifty per cent.; and the poor spinster is -perfectly satisfied of the safety of her investment, because, having -once parted with the money, she can never get it back again. This class -of stockholders are also particularly favored and acceptable, because -they never want to borrow, and never find fault with the management; -and if, by chance, they should suspect themselves to be badly used, a -tear shed in secret is the only complaint they ever make. - - EVIL TO HIM WHO EVIL THINKS. - -I will lay it down as a rule, therefore, that whoever distrusts the -integrity and good intentions of those gentlemen, who get up a stock -company, and collect within its vaults the widow’s mite and the -orphan’s support, is no better than the gentleman before alluded to, -whose perversion of the luxuries of taste flowed from the impurity of -his own mind. - - A DIRECTOR A WEASLE. - -Whenever any company is attempted to be established for purposes of -public improvement, it is always a prerequisite of success, that in -the programme, the expense should be set down at one half, and the -profits and advantages at double—and this mode of stating things, -although it varies from the actual result only three hundred per -cent., is sure to convince, and the public will eagerly catch at the -enterprise. The reason of this necessity is, that if the truth were -told in the first place, there would be little chance for management -in the stock, and none whatever of its being all taken up. But by this -_shrewd_ management, it generally happens that an original subscriber, -after having paid up in full his subscription, and two or three -assessments beyond, loses all confidence, and suffers all he has paid -to be forfeited to the company, rather than pay more. Thus the original -subscribers generally lose all their money; the stock is resold by -the company to some new comer, and the company, in the end, collect a -million capital upon a subscription of half that amount. And whoever -subscribes to a new fashioned bank, or a railroad, and does not find -the directors awake to this management, may hereafter say with truth -that he has caught a weasle asleep—there being no other difference -whatever in the vermin, than is expressed by the simple affixes _bi_ -and _quadru_. - -Such was the character of Mr. Single-Eye, of the Wall-street Stock -Company; and the number of similar institutions which now display their -gilded signs there by the same means, can only be told by multiplying -some of the numericals. - -It so happened, however, that the Dutchmen, from their natural -stupidity and ingratitude, as Mr. Single-Eye averred—but, as some -suppose, from some lurking doubts of his virtue, and a spice of his -own cunning—after having paid seventy-five per cent. premium for their -stock, through the agency of Mr. Broker—could not be convinced of the -propriety of paying more in the shape of assessments, notwithstanding -Mr. Single-Eye, and his partners in the directorship, assured them that -all was right, and that the money had all been properly expended. - - COMMITTEE OF INVESTIGATION. - -A committee of examination into the company’s affairs was therefore -appointed; whereupon Mr. Single-Eye, being grieved at such indignity -offered to his honor, took the “book of minutes” and walked off, -leaving the Dutchmen in a state of “confusion worse confounded,” from -which they never recovered: thereby establishing a precedent for the -tragedy lately enacted in the Water Works Bank, in this city—wherein, -if the directors of that institution had consulted the ancient -chronicles, they would never have tried to cover their own delinquency, -by a contemptible persecution of their late venerable cashier. - -The committee of examination, without waiting to come to their senses, -adjourned “sine die.” The city wall had been broken down, and its -materials were all scattered about in delightful confusion. A complete -inroad had been made on the hitherto peaceful and happy homes of the -Dutchmen. They had lost all the money invested in the company, with the -melancholy satisfaction that it would cost them as much more to clear -away the rubbish; and the street was left to the slow progress of time, -to assume its present magnificent appearance. - - HONORABLE END OF SINGLE-EYE. - -It is remarkable, that such fatal results to the first experiment, -should not have proved a death blow to all similar enterprises in -future. But the Dutchmen overcame their misfortunes by patience and -industry. The memory of their wrongs was all washed away by the -soothing lethe of time, and their follies were all buried in the deep -dark valley of the land of forgetfulness. Mr. Single-Eye, and Mr. -Broker, ever afterwards fared sumptuously every day. They lived long -and died lamented; and the tablet to their memory, lately removed from -the Garden-street church yard, was inscribed with this motto: “Money is -good, fame is good, but to know how to improve the follies of others is -better than either.” And their descendants, learning wisdom from this -law, have ever since continued to follow their example. - - THE MORRISON KENNEL. - -And now, my dear readers, having initiated you into the origin of -stock companies and brokers, as well as the phrase and practice of -Wall-street, in my next chapter I will give you the history of the -“Morrison Kennel”—a company that has exhibited so many of the phases -of human nature, that some have said that “old Nick” must have had a -hand in it. If you expect that the dogs of this Kennel will prove to be -hounds, I will tell you beforehand, that they are the veriest puppies -in cowardice, treachery, and meanness, while they are perfect wolves in -voracity; as will be proved by the perfectly denuded bones of the dead -but stall-fed ass, which they have just forsaken. - -If any one is curious to know from whence I got all this information, -I will tell him. I received it from a venerable chronicler of the -age, who has the old manuscript in his possession, and who now visits -Wall-street daily to mark the passing events. He has agreed to meet -me there every day for a week, where he will reveal to me the history -aforesaid, and such other matters as his experience and observation may -suggest. - -FOOTNOTE: - -[2] See Boswell’s posthumous edition. - - - - - CHAPTER II. - - THE HISTORY OF THE MORRISON KENNEL—NICHOLAS THE 1ST—A STOCK - SPECULATION, &C. - - -It is a pleasure which comes gratefully home to the heart, when -contemplating the picture of human life, in whatever grade of society -or condition we view it, amongst the multitude that flit by us, -occasionally to see a being that stands out in bold and bright relief -to its dark shades. - -On the second day of my visit to Wall-street, while sitting with my -venerable friend, the old gentleman, pointing to the street asked, -“do you see that man.”—“Yes,” I answered, “and I know him; he is a -man of honor, such as honor should be considered,—one of nature’s -noblemen; his word is as good as his bond, and his friendship is better -than either. He pays his debts because he promises, lends to oblige -his neighbor, and gives to benefit the receiver—he tells the truth -because it is right, and cheats nobody because it would be wrong. -He has gradually risen in wealth and credit, has the confidence of -every body, and amidst all the slime and filth that surround him, his -character stands untouched and unsullied by its poison.” - - ONE HONEST MAN IN WALL-STREET. - -He may be seen every day, at half past ten, going to the stock -exchange, with a book under his arm; and may be known by the breadth of -his foot, the swing of his legs, and the weight of his bottom. He will -occasionally appear in the course of this history, under the name of -Mr. Bottomly, and I hope his conduct will vindicate my description of -his character. - -The old gentleman heard my remarks with apparent consent and pleasure, -which were indicated by a smile of satisfaction peculiar to himself; -but my silence was immediately commanded by a significant nod, with -a gesture of the hand, as much as to say “there are some things -however in Wall-street, which I know better than you do,” and he then -proceeded, agreeably to promise, to relate the history of the Morrison -Kennel. - - THE VALUE OF A NAME. - -The garrulity peculiar to men of his age, must excuse the frequent -introduction of remarks foreign to the narrative; and when I tell -my readers, that my friend is a man of deep reflection and high -toned moral sentiment, as well as acute observation, they will not -be surprised at his occasional illustration of fact by reference to -principle. - -“The practice of the aborigines of this country,” said he, “of giving -names to men and things, indicative of their qualities and exploits, is -well considered savage. Since the day when the poet first propounded -the question ‘what’s in a name?’ mere moralists have been at fault. But -modern practical skill has discovered that there is much; and it was -left for the originators of the Morrison Kennel, to find out the best -use that could be made of it, viz: that it may be made to cover one -purpose under color of another—may gain credit for what it is not, and -shield from detection what it really is, or may gull a State with the -promise of improvement, and cheat the people of their money for their -credulity. In short, the advantages to a stock company of a judicious -choice of a name, are incalculable; not the least of which arises -from properly compounding it, so as to mean more things than one, as -the Morrison Kennel and Banking Company. One peculiar advantage of -this last is, that as the projectors are not always certain what they -will do, but intend to be governed by their success, they are thereby -enabled to shift their course to suit the breeze.” - - WHY THIS WAS CALLED KENNEL. - -“This company would probably never have attained the _soubriquet_ of -Kennel, a mere play upon the original sound, but for the remarkable -financial talents of Nicholas the 1st, profanely called old Nick, in -the first place, and its employment afterwards to help to hold up the -sides of the great bull dog of Pennsylvania, ycleped the U. S. Bank, -who had grown so weak from disease, that it was feared, without such -aid, his attempt to bark, would prove a concussion of air from the -wrong orifice. In other words it was feared, that without collateral -support, the first resumption would _not_ last as long as the second -_did_. - -“The circumstances which called into activity the financial talents -of Nicholas, deserve a particular notice, as they have an important -bearing on this history. And for that purpose, I must introduce to -you a gentleman well known in Wall-street; of amiable disposition, -gentlemanly deportment and honorable connections. His person may be -known from his resemblance to king Saul, being taller, by the head, -than any of his tribe of brokers, and, as he bears the appellative of -an immortalized Friend, and the signification will be descriptive of -his character, I will call him Mr. Friendly.” - - MR. FRIENDLY AND HIS APPETITE. - -“The only thing remarkable about this gentleman is, his extraordinary -appetite; from which, taken with his slender proportions, it has been -inferred by some, that, like the bird most avoided by sportsmen, his -alimentary canal consists only of a straight passage; for he has been -known to gorge and digest more stocks in one day, than the weight or -bulk of his whole body in the certificates.” - - FRIENDLY’S CAUTION. - -“With this introduction of a part of the ‘dramatis personæ,’—having -already described, with some particularity, the motive for, and the -manner of, getting up stock companies, with such parts of their general -management as can be interesting to the public—I will commence with -the Morrison Kennel, at that point when the causes for the activity -before alluded to commenced, viz: precisely at that time, when the -directors had expended the whole amount of capital subscribed, together -with a loan of seven hundred thousand dollars obtained in Holland, in -digging a ditch through the State of New Jersey, which served little -other purpose than to drown the Jersey farmers’ pigs—without any -one of the said directors having cleared more than fifty thousand -dollars out of the company, by means of contracts or otherwise—when -their credit was exhausted, the stock reduced in market to one fifth -its original cost, and the directors ready, on the first symptom -of alarm, to take to their heels for safety. Then, fortunately for -them, Mr. Friendly, desirous of improving his fortune, which at this -time he found to be in rather a waning condition, formed a scheme of -speculation in the stock, commensurate with the vastness of his own -desires; and, with this view, he began with the caution and finesse -of one who has a game to play. He first ascertained that some of the -directors were still in possession of a considerable amount of the -stock; whom he could, very probably, draw to his own interest by -endeavoring to aid them; and he then proceeded to the office of Mr. -Bottomly.” - - CALLS ON BOTTOMLY. - -“Good morning, John,” said he, “how are you?” - -“Pretty well Dan, how are you?” - -“Hard up.” - -“Hard up,” eh!—“No cornering, I hope”—“No,”—“dull times, no -movements, things are paralysed, very much.” - -Mr. Friendly wished, and was therefore pleased, to find his neighbor -alone. So he sat down without ceremony. And after a variety of common -place remarks, he at length arrived at the point where he should -unburthen himself of his subject. His object was to enlist Mr. Bottomly -in his proposed speculation, and thereby secure his means, his -influence, and his interest in its favor. - -“John,” said he, “the Morrison stock is very low, what do you think of -it?” - -“That it sells for more than it is worth.” - -“That may be, but a thing is worth what it will bring.” - -“The seller always thinks so, but the buyer sometimes finds that he has -paid too dear for the whistle.” - - TWO WISE HEADS TOGETHER. - -“What would you think, John, to see the Morrison at 75.” - -“I should think very strange.” - -“Stranger things have happened though, John. I have a mind to move in -the Morrison, what say you to join me?” - -“What do you propose?” - -“Why, you have the means,—the stock may be had at twenty, and a -hundred thousand dollars would control the whole of it. It must be done -quietly; and then by contracting on time we should have the power to -deliver without loss when we sold; and by making three contracts to -receive to one to deliver, we can make them pay whatever difference we -choose.” - -“That would be too much power to get in our hands, Dan, would it not?” - -“True, it would not answer to trust every man with so much; but in your -hands and mine, I think we would not abuse it.” - -“What amount of exaction do you think would be an abuse of such power?” - -“Why, it would be wrong to take more than two hundred per cent. profit, -unless we got hold of some one who could well afford it.” - -“But that would be using force to appropriate other people’s money to -our own use. I think it would not be justifiable.” - - PLAN CHANGED. - -Mr. Friendly, though not devoid of sound sense and a good judgment, -usually suffered his eagerness for speculation to blind his mind to -every probable result but the glitter of gain. He had never looked -on the subject in this light before. He intended nothing but a “fair -business transaction,” and was desirous that his friend Bottomly should -share in its success. His mind revolted at doing a positive wrong; -he therefore abandoned his plan, but adopted another on the instant, -which though less culpable on his part, was in the end productive of an -equal degree of evil. Always quick and decided in his actions, he said -“well John, you are always right-minded, though you are sometimes wrong -headed, we will say no more of this plan for the present; but I think -well of a speculation, and therefore you shall buy me five hundred -shares to day at ‘the board,’ I will send you in a check for ‘ten up,’ -and the rest we will arrange to-morrow.” - - THE BANK PARLOR. - -Having decided upon his plan of action, Mr. Friendly then immediately, -sought the directors who held stock. Fortunately he found them all in -the bank parlour. They had just been talking over the affairs of the -company, I will not say that they had been discussing its affairs, -for their conversation was like any thing else but a discussion, and -consisted of sundry expletives directed principally against their -predecessors in office. And here let it be remembered, that those -gentlemen, whose ambition had led them to desire such a post of honor, -were but newly installed in their places. And, having purchased stock -to procure their election, with knowing but very little about the real -state of the company’s affairs, they were now unable to get rid of it, -and were lamenting their folly and cursing the authors of it. For be -it known, that their ambition and vanity had been stimulated by their -predecessors before the election, to induce those gentlemen to seek a -post which they wished to abandon themselves, knowing that sooner or -later it would disgrace them. - -Mr. Friendly disclosed his errand at once, and was well received. - - EAVESDROPPERS. - -He said he was apprised of a speculation going on in the stock of the -Morrison; he intended to embark in it—wished them to hold back their -stock, and aid his views in effecting a rise, and he would aid them in -disposing of theirs at the right time. He did not tell them that he was -the sole author of the speculation; he modestly forebore that, under -the plea that he did not feel at liberty to tell all that he knew. But -the directors were almost immediately confirmed in their good opinion -of his knowledge and sagacity, as well as of his intention to do them -a service, by hearing of the large purchases of Mr. Bottomly, at a -considerable advance on the previous market value. - -It is curious, as well as amusing, to see how many and how slight -causes sometimes tend to aid or to frustrate a speculator in his -designs. - -There is a set of proscribed men in Wall-street, who were once -brokers, professionally, and are now broken in reputation, credit and -finances—having no means but what they have kept from their creditors, -and—being expelled from the exchange board for defalcation or bad -conduct—they still linger round their old haunts, and carry on a -system of gambling in what are termed fancy stocks, through which -they contrive occasionally to entrap and empty the purse of some -newcomer, or filch each other of their ill retained means, until each -in his turn gets placed on the “black list,” which is the final seal -of reprobation, and in Wall-street signifies—“that whoever deals with -that man, shall himself not be dealt with by any one.” - - EAVESDROPPERS. - -These gentry may be seen, daily, in squads of three, four, and five, -standing on the side walks, or on the steps of the large offices, -talking vociferously, and making such bids and offers in the funds, as -that one not knowing better, would suppose that each held the finances -of the country in his palm. - -One of them, whom I will call Mr. Eavesdropper, had his ear timidly -placed at the key hole of the Stock Exchange, and heard Mr. Bottomly’s -bids for Morrison, which instantly infused such courage into his -mind, and activity into his limbs, that he went out, and before the -transactions of the board were publicly known, he had privately -contracted for the delivery of a large number of shares; and then, to -aid his purpose in effecting a further rise, gave out that he was in -confidence with John Jacob Astor, or some one no less powerful, who -had determined to buy up the whole company. - - MR. SPRIGGINS. - -As soon as Mr. Friendly had returned to his office from the meeting of -the Board of Brokers, on the day I am speaking of, and, as is common, -had laid open on his outer desk, for public inspection, the record of -the transactions which had there taken place—in which he had carefully -noted all those in the stock of the Morrison—he walked out into the -street, where he encountered Mr. Spriggins, who, contrary to his wont, -for some cause, had not been present at the board that morning. - -Mr. Spriggins is one of those gentlemen, whose conceit of himself -supplies the place of education, manners, and intellect, and he -accosted Mr. Friendly as follows: - -“Dan, what does all this speculation in the Morrison mean?” - -Mr. Friendly, whose polite manners encouraged the freedom of such men -as his friend Bottomly, held in contempt the rudeness of impudence, -and, instead of answering Spriggins, turned on his heel without -noticing him. - - THE FEVER UP. - -Spriggins, who could never imagine the existence of such a feeling -towards a gentleman like himself, attributed this treatment entirely -to another motive; and knowing Mr. Friendly’s speculative character, -he at once imagined that Friendly had a secret that he wished to keep, -and improve for his own benefit, and he immediately resolved in his -own mind to outwit him. Upon this impulse he hurried away to purchase -all the Morrison stock he could get hold of—which he did at a large -advance of price over the purchases of Mr. Bottomly; and when he had -done so, exultingly told Mr. Friendly that he was “not to be come -over.” “But never mind,” said he, “you can keep your secret now, Dan; -but if you are so disposed, as you know what is going on, we will -operate together.” - -Mr. Friendly was not disposed to embrace this offer, liberal as it was, -and maintained such a reserve as excited still further the cupidity of -Spriggins. Meantime, having heard of the operations of Eavesdropper, -Mr. Friendly perceived that he had fairly put the match to a train -that, if properly fed, would lead to an explosion. But he resolved that -before it should happen, he would take good care of himself. - - LOAFERS. - -There is another set of men in Wall-street, which demand my -description. They have neither trade nor profession of any kind, and -if they ever had any, they have abandoned it. Some of them are of -that class called Gentlemen, who have married fortunes and squandered -them—some are broken merchants—some disgraced politicians—defunct -post masters, &c. &c.,—and all of them are Loafers. They have neither -wit enough to contrive, nor credit enough to carry out, a speculation: -but when one has begun, like that I am now describing, they may be -seen flocking in and out of the brokers’ offices—examining the stock -books—talking wisely of the nation’s affairs—each one pretending -to know more of finance than even Mr. Woodbury himself; and their -exuberance of knowledge is almost as luminously exhibited. Like flies -round a honey pot, each one is anxious for a sip, and according to his -slender means, pledges a hundred dollars, more or less, and orders his -broker to buy as many shares as he will upon this security. They thus -materially aid the great speculators; but the result to themselves -generally is, that their families or friends suffer precisely the -amount they have risked—and so it was in this instance. - - DEEP IN FOR IT. - -Mr. Friendly continued to purchase largely of the Morrison stock, which -increased the excitement, and continually advanced the price; and Mr. -Spriggins, nettled by Friendly’s reserve towards him, continued to be a -large purchaser also, and induced several of his friends to join him. - -It ought to be observed here, that these purchases were generally made -“on time:” that is, the stock was agreed to be delivered at a future -day. And it so happened that when Spriggins was the buyer, Mr. Friendly -was generally the seller, through some other persons, as his agents; -and he had taken care so to provide himself with stock, that he could -meet his contracts on time—not only without the danger of loss, but -with a certain profit. - - HOW SOME PEOPLE NEGOTIATE LOANS. - -So long as the stock maintained the very high price to which it had -now advanced, all was well; but the time must come, when it would not, -and then, there was danger that Spriggins, and his compatriots in -the speculation, would not be able to fulfill their engagements. Mr. -Friendly, therefore, as a stimulant to the action of Spriggins, and -to prepare for the denouement, hinted to him that, as the stock had -now so much increased in value, probably Nicholas the 1st would loan -money liberally upon it; and, as the stock must rise still more, such -an accommodation would be very desirable, to enable one to hold it. He -dropped this hint in such a way, as led Spriggins to believe that he -intended to make the application for himself. He had really, however, -no intention of asking such a favor, for such a purpose, but he knew -well what the effect of such a suggestion would be with Spriggins, -and—as he expected—the dapper gentleman immediately started, post -haste, for Philadelphia, and succeeded in obtaining from Nicholas, -the promise of a loan of one hundred and fifty thousand dollars, on -stock of the Morrison, which, six weeks before, was not worth, in the -market, one-fourth of that amount: that is, provided Mr. Spriggins -would negotiate half a million of dollars of the bonds of the U. S. B., -payable in twelve months from date; by which means, Nicholas cunningly -foresaw, that, instead of lending Spriggins, he should himself be -the borrower of no less a sum than three hundred and fifty thousand -dollars. But those were palmy days of credit: the bonds were all -negotiated with ease, and the Morrison stock transferred to Nicholas, -as security for the _loan_, as fast as the greedy purchases of Mr. -Spriggins could command the large amount necessary. - - FRIENDLY’S PLAN CONSUMMATED. - -Mr. Friendly now saw all his hopes about to be realized. By obtaining -the control of a very large amount of the stock at 20 to 25 per cent. -on the par, and stimulating the cupidity and self conceit of Spriggins, -he constantly went on buying ten shares at an increased price, and -always selling, through some one else, twenty shares to every ten -that he bought, until he succeeded in throwing the whole stock upon -Spriggins, and his associates, who, as we have seen, were supported by -Nicholas, in their mad speculation. And, in less than four months from -his first purchase, Mr. Friendly retired, with a clear profit of one -hundred thousand dollars, and the eternal gratitude of the directors of -the Morrison, whom he had assisted and relieved. - - THE DIRECTORS STUCK FAST. - -The directors of the Morrison rubbed their hands with glee, and treated -Mr. Friendly with the greatest respect, when they found that they had -got rid of all their stock, not only without loss, but at an enormous -profit. But then came the affairs of the company, which were not a whit -better now, than when the stock was depressed. In fact, they were every -day growing worse—for the interest on their enormous loans, was now -becoming due, and they had nothing to pay it with. - -At a meeting of the board of directors, about the time we are speaking -of, for purposes of business, they all sat in silence, for some -minutes, looking at each other—each one wishing that his neighbor -might propose some remedy—and their hearts sank within them, as each -one successively uttered a desponding sigh at the poverty of his -invention, or—what was still worse to get over—the poverty of their -finances. At length, Mr. Faintheart proposed that they should all -resign, and let the affairs of the company take care of themselves. -This course—although so successfully practised some time afterwards by -their successors in office—did not suit the taste of Mr. Hold-on; who -said that “the public mind was not now prepared for such a movement. -A few years more, and the people will be more enlightened, and will -not expect directors to retain their seats when they have nothing to -gain by doing so. But, if we desert them now, the thing will be looked -into; we shall be accused of all the roguery that others before us have -done—we shall be hunted like rats. My motto, therefore, is, ‘don’t -give up the ship;’ and, as none of you propose a remedy, I suggest -that, as Nicholas now holds a large amount of the stock, perhaps he -will loan us a couple of hundred thousands, especially, if he is made -to believe that it is wanted to finish our works of improvement, and -that _when_ they are _finished_ it will improve the value of his stock -fifty per cent.” - - A WISE SUGGESTION—ITS RESULT. - -The proposal was hailed with delight, and Mr. Hold-on was deputed to -manage the negotiation, which he did with the same success, in the same -manner, and on the same conditions, as did Mr. Spriggins. - -This cunning device of Nicholas, always to be the borrower, when he -appeared to lend, is altogether a modern invention, and was very -successfully practised, a few years since, in an attempt to relieve the -merchants of New-York, and which, some have wickedly said, was used to -enable certain gentlemen to collect their private debts, and finally -went to relieve Nicholas of his money, by throwing the same debts upon -him. Be that as it may, it is universally admitted that Nicholas was -the first inventor of a bank, whose business was to borrow, instead of -lending, money. - - OLD NICK’S SHREWDNESS. - -By these master strokes of policy, Nicholas came into possession of a -claim of two hundred thousand dollars against the Morrison, and held -an equal amount of their stock, both which in six months afterwards he -found to be not worth a farthing. To these circumstances it was owing, -that, through his influence, the Morrison Kennel was afterwards revived -with great splendor, and scenes were enacted, which, though they have -caused many a tear of grief to flow, will, I hope, not fail to excite -your laughter by their relation. - -My venerable friend here excused himself on account of fatigue, but -with the assurance that, at our next meeting, he would introduce -me to some new and original characters, and also tell me about the -negotiation of a great state loan—how the directors of the Morrison -helped to nurse the great “bull dog” of Pennsylvania in his sickness, -and how they all ran away, when they found he was likely to die, -together with some account of his disease, and his last moments. - - HOW THE OPERATORS CAME OUT. - -If any one is curious to know what became of Messrs. Friendly, -Spriggins, and Eavesdropper, after their figure in the Speculation, I -will take this opportunity to tell them, that what has here been said -is but a small part of the fame to which they are entitled; but it is -my business only to show the results of such things as I have related. - -Mr. Friendly, as all good men do, spent his money liberally and -charitably. To a large circle, his house was the centre of politeness, -elegance, and hospitality; but his insatiable appetite for speculation -ruined him at last, as it does all others; at least, he is so far -ruined, that until another speculation shall turn out like the -Morrison, he will be content to practice economy. Mr. Spriggins set -up his carriage on his anticipated profits, and was let down from it -before his coachman had fairly mounted his livery; and report says that -he has since done the same thing three times over. Mr. Eavesdropper -ran wild with his first success, and, in the end, only arrived one -stride nearer the “black list.” And exactly one hundred and forty -others were made poorer than they were before, by the whole amount -which they put at risk. - - RESULTS OF GAMBLING. - -If the mischiefs arising from this species of gambling were confined -to those who set that kind of speculation on foot, or who make it the -business of their lives, there would be nothing to lament. But such -is not the fact. The whirlwind naturally sweeps everything within its -influence, and over which it has power, to its centre. Hundreds, nay -thousands, allured by the success of a few, are induced to embark in -the rash adventure. They are unacquainted with the real character or -causes of the fluctuations, and even if they are not ignorant, they -are liable to be outwitted by some of the hundred minds that are -continually plotting against them. Here is the fruitful source of all -those defalcations of public officers—the purloining of money by -officers, and clerks of institutions which have so much multiplied of -late—inflicting misery on the families, and disgrace on the names of -many a once honorable man. - - GOOD LESSONS TO THOSE WHO WILL HEAR. - -The business is showy and fascinating, its temptations subtle and -alluring. Young and enterprising merchants embark in it, and find that -they have lost their money and their credit, when it is too late to -repent. The hard working mechanic embarks a few hundred dollars, and -when he finds himself in debt and no means of paying, sees that he -has been outwitted, and that, if others have made money, he has lost -it. In fact that it is he, and others like him, who have assisted the -successful to pocket his profits. Women yield up the savings of years -to be invested in something, they know not what, and wail over their -folly and their credulity, when all their bright hopes have faded into -a worthless certificate. In fact it is only the loss sustained by such -as these that enables the operators, as they are termed, to accumulate, -or even to live by their business; for they could do neither the one -nor the other within themselves. And it will be found to be a necessary -consequence, that in all such speculations as that of which I have -endeavored to give but too faithful a picture, if one is made rich, a -hundred are made poor. In no country in the world, is the hazard of -stock gambling, so great as in this, where there is such a multitude -of stocks, based upon the schemes of individuals, and affected by the -ever changing prosperity of our growing, yet comparatively unsettled -condition; and where the capitals are often so small, that it is in -the power of two or three designing individuals to raise them above, -or depress them below, their real value, as may best suit their plans -or their convenience, thus often destroying the sole dependence of the -needy and helpless. - - - - - CHAPTER III. - - STATE STOCKS—HISTORY OF THE MORRISON KENNEL CONTINUED—INTRODUCTION - OF NEW CHARACTERS—THE U. S. BANK, &C. - - - BUBBLES. - -Among the many schemes of finance that have disgraced our country, and -been fruitful sources of peculation, deserving the severe censure of -justice, and the ridicule of wit, there are none more prominent than -the bubble of state stocks. Time was when that name had a signification -of value; but a new era is now upon us, the end of which, “is -not yet.” The character of our western population is one of hardy -enterprise, and great intelligence in their own particular sphere; -but by some strange fatuity they have overrated their credit, and in -so doing, have overreached themselves. That confidence of a western -man which induces him to believe that he can “whip his weight in wild -cats,” is no vain boast, but the natural consequence of that hardihood, -of vigor that comes of their spirit of enterprise; and it is not to -be wondered at, that the thrift of their situation should inspire a -similar confidence in other matters. - - HOW WISE MEN HAVE BEEN DUPED. - -But, until they can learn to take better care of their credit, and -intrust the management of it to more skilful and experienced hands, -they will never cease to be cheated and dishonored. The following -detail by my venerable and facetious friend, of a negotiation for the -sale of state bonds, would be true to life, if it were not too feebly -described, for as I write only from recollection I find it impossible -to do justice to his humor. - - BUTTONING UP. - -“Before,” said he, “I proceed to the story of the state bonds, I must -first relate to you what changes took place in the Morrison.” As soon -as the speculation detailed yesterday had ceased, and Mr. Friendly had -fairly retired with his profits, the stock went down, down, down, and -not a purchaser for a single share could be found at any price; and -as soon as the whole class of small speculators perceived that they -had been “stuck,” aware of the injury the little credit they possessed -would sustain, if they were known to have met with a loss, they all -shut their mouths, except, that each one pitied his neighbor; and -strange as it may seem, not a man could be found in Wall-street, who -confessed the ownership of a share; where three weeks before there -were thousands. This is called “buttoning up,” and if any gentleman in -a certain predicament was ever surprised by a bevy of ladies suddenly -turning the corner, he will know something of the hurry felt, and the -nonchalance assumed, on this occasion. - - NICK’S TALENTS AND COURTESY. - -Six months from the time when Nicholas made the loans before spoken -of, he “found that the security was not worth a farthing.” If any one -is surprised that he should have been so improvident of safety, they -only need be told, that he is one of those men whose expansiveness -of mind, and splendid talents were at home only in great things. He -could grasp at millions, and sport with them as mere baubles; but the -dull and dry detail of investigating trifles, was fit occupation only -for meaner minds. And to the same splendid talents it was undoubtedly -owing, that in passing into retirement, he was enabled to discover -so much soundness and prosperity in the affairs of the U. S. Bank of -Pennsylvania, when nobody else could, and that the stockholders of that -institution, are so permanently fixed in an investment of a capital of -35 millions, that they will never get a dollar of it back again. - -Nicholas, however, was a man of courtesy, and when on a visit to this -city, condescended to call on the directors of the Morrison. The money -borrowed by them, had been all expended; another instalment of interest -was becoming due, and nothing provided to pay it with. He met them in -the Bank parlor, with solemn faces, and like the Irishman’s owl, which -he feigned to be a parrot, they spoke not, but were thinking very hard. - - THE D——L NOT TO BE FEARED. - -“Well gentlemen,” said he, “what is the matter?” Mr. Faintheart, -always foremost to express discouragement, and always the last to aid -in relief, immediately replied. Why Mr. B. the D——l is to pay, and -we have no money. True, answered Nicholas, you owe _me_ a good deal of -money, but if that is all, it can no doubt be arranged. - -Mr. Faintheart first blushed, then turned pale, rose from his seat, and -his knees smote together, when he perceived that he had unluckily hit -on the vulgar cognomen of Nicholas. Regarding the man with the highest -veneration, and even with fear, and unable himself to comprehend, how -so great a mind could exist, without more aid than falls to the lot -of common mortals, he secretly believed the profane allusion to be -a verity, and, in his fears, expecting a blow from the forked tail, -that would annihilate him at once, he was fain to ensconce himself -under the table. But perceiving that none of his comrades attempted -to run away, and that Nicholas himself sat in “the armed chair, calm -as a summer’s morning,” with a smile playing upon his countenance, -benignant as benevolence herself, he was re-assured; the purple came to -his nose again, and he stammered out, I beg pardon, I had no allusion -to—to—_you_, sir. - -“Sit down, Mr. Faintheart,” said Nicholas, “your wit amuses us.” - -Mr. Faintheart sat down, but was unable sufficiently to master his -disturbed, and mortified feelings, to utter another word. - - EVERY MAN HAS HIS PRICE. - -What further took place at this conference is not fully known, but -it is generally understood that, by the advice and influence of -Nicholas, it was then and there agreed, that, to revive the credit of -the Morrison, it was best to have a new official organization, and to -select for that purpose men of talent, shrewdness, property and credit. -But as few such could be found who were willing to act, common scandal -has affirmed, that resort was had to the principle, that “every man has -his price,” and that sums as high as ten thousand dollars were paid, in -more than one instance, to procure the requisite number, all of proper -standing. - -All this took place soon after the period we are speaking of, and if, -by talent and shrewdness, is meant, the ability to obtain credit, -when none is merited, and to know how to appropriate the avails to -themselves, without incurring liability, with two or three honorable -exceptions, the selection of officers was a judicious one. All these, -however, were minor considerations, and when Nicholas saw his new -friends installed, with a prospect of reviving the credit of the -company, and not only recovering his debt, but obtaining a bolster -also, to support the weary head of his great Pet, his ends were nearly -answered. This was probably one of the encouragements which led to his -famous letter of resignation; and, since the cotton speculation is now -closed, and the commissions all realised, we must now leave him to -enjoy his taste for literature, botany, and horticulture, on the banks -of the Schuylkill. - - FIGURES MAY BE MADE TO LIE. - -A semi official statement of the affairs of the Morrison was now put -forth. This also is a plan of modern invention, not called for of yore; -and whenever it appears gratuitously, is always designed to support a -false credit. Its success depends on such a classification, division, -and subdivision of the items, that the figures will express the same -things three or four times over. In this instance it was properly done, -and accordingly, the stock and credit of the company were revived under -its influence. - - NEW CHARACTERS. - -And now, said my friend, it is time I should make you acquainted with -the gentlemen you saw this morning. The tall, spare, white haired -gentleman, with a scooping form, a down-cast look, and a contriving -countenance, is Mr. Bold Eno. You saw that he had an eye of fire; but -it is only a spark struck from a heart of flint, and a conscience of -steel. I have not much to say about him now, but he will figure by and -by. The next is a gentleman of more noble presence, and less of the -look of the d——l about him. His mouth is full of honied words, but -if you believe them all, they will very likely prove “sweet to the -taste but bitter in the belly.” His name is John-of-the-Field, which -signifies that he is a great sportsman; but his sports are chiefly -confined to shooting with the long gun. It has been said that he could -shoot round a corner; but that is a slander upon the truth, and arose -only from his dexterity, in always providing a corner, round which he -_can_ escape, whenever his favorite weapon throws wide of the mark. -He is a lover of the arts, and his soul melts at the dulcet sounds of -music. His politeness, and hospitality, can be measured only by his -love of power; and his opinion of himself is, that to make him the -“greatest and best” man alive, he needs only to have his own way. - - A WESTERN FINANCIER. - -The third gentleman, whose hat was a little slouched, and his coat -not of the most modern cut, who measured as much space at one stride -of his legs, as the other gentlemen measured at two, with his fist -doubled in his glove, expressive of his determination, and his wrath, -is Mr. Commissioner —— from the state of ——. In his early youth, -he left the land of his fathers, the land of steady habits, where he -had learned, (what every one learns there,) how to read and spell -correctly, with the rudiments of Pike and Murray, and fearless and -alone, treading the western wilderness in search of a more genial soil, -he established himself, where now a flourishing city spreads out her -next to queenly beauty. Of course he reapt golden fruits of his toil, -and opinions of his sagacity; in short he became, not unworthily, a -great man among them. The principal error of his mind, was, that being -born in comparative poverty, and accustomed to matter of fact dealing, -he regarded the stupendous bubbles of artificial credit and means, as -all real, and the men who managed them, as all abounding in riches, -and as honest as himself. He is now here, to see how far his improved -knowledge of finance may enable him to correct his past errors of -judgment. - - DINING PRELIMINARY, &C. - -Two or three years ago, this same gentleman came here, by the way of -Philadelphia, being there recommended to the Morrison Kennel Company, -and others, to negotiate the sale of two millions of dollars, in state -bonds. On his arrival here, he made himself acquainted with all the -characters here introduced, and was “dined” by each in turn, with a -view to sound him as to his wishes and expectations. - -The president of the company having been authorised to open -preliminaries of negotiation with the commissioner, the board of -directors was subsequently called together to hear the report; and, not -to offend the dignity of any one, who may fancy he recognises his own -character, I will abbreviate the names of those present, as follows, -viz: The Prest. and Messrs. J. G. S. T. and W., directors; and when all -had taken their seats, they proceeded to business, as follows: - - DIRECTORS’S WIT AND CHAMPAGNE. - -PREST. Gentlemen: in conformity with your request, I have attended to -the duty imposed on me, and my report is—that in stubbornness, one -Hoosier is more than a match for us all. - -“Ha, ha, ha!” all around the board. - -G. Well, in cunning how does he stand, Mr. President? - -PREST. Simple as a doe. - -T. Then he can’t escape, G., if we turn him over to you. - -G. Leave off your jokes, T.; this is not a place for them. Mr. -President, what says he to our proposal? - -PREST. He likes it not; he wants more ready money than we possess—he -won’t budge. - -S. But, if we could get possession of the bonds, I think I could make a -private advance. - -T. (_aside._) Yes, no doubt, and a private profit, too. - -G. Does he object to our credit, Mr. President. - -PREST. Not at all; he has the most perfect confidence; that was cared -for at Philadelphia, before he came here. - -J. Can’t we come over him with champagne? - - PLANS, HARD NAMES, AND FLOORING. - -T. If we had less sham here, I think it would be better. - -J. But, it is our only chance; and, if we do not contrive to raise some -active means soon, we shall never accomplish our designs. - -T. And, if you are not quick about it, John-of-the-Field will outwit -you all. - -J. What says Mr. Bold Eno? - -G. He is throwing cold water, and I suspect he is attacking our credit. - -J. Tell the commissioner, then, that we will mortgage the Kennel to him. - -G. But, it is mortgaged already. - -S. No matter, tell him it is only for 700,000, and cost two millions -and a half. - -T. Yes, and you can tell what became of some of the money, eh? - -S. Mr. T., you are impertinent; do you accuse me sir, at this board. -Sir, you are a _scoundrel_. - -Here Mr. T. brought round his right foot against the leg of the chair -in which Mr. S., who sat next him, was balancing himself with offended -dignity, and knocking it from under him, brought him to the floor, to -the very sensible uneasiness of his crupper, for some time afterwards. - - AVOID INDIVIDUAL LIABILITY. - -Mr. S. was a man of courage, in words only; it therefore evaporated -with what he had last spoken, and he dared not provoke his assailant -any further. - -PREST. Gentlemen, I must use my prerogative! order—gentlemen, order! - -W. Gentlemen, this is not what I expected; I must retire. - -T. Well, W., I’ll go with you; rogues must bear to be told the truth, -without throwing back an insult, generally the best evidence of their -guilt. - -Messrs. W. and T. here retired, and the rest again took their seats. - -PREST. Suppose, gentlemen, we send for Nicholas? - -G. We are no longer dependant on him, and as it might eventuate in -our individual liability, if we go forward in this thing, it is my -opinion that it is the duty of the president to conduct the negotiation -officially on behalf of the company, and I therefore move a vote of the -board that he be directed accordingly. - -PREST. Gentlemen, I have resigned one treasury department, sooner than -do another man’s bidding, and shall decline the service; I like not -this business much. - -G. Suppose, then, gentlemen, that we resolve ourselves into a -committee, and call the commissioner in to-morrow. - -The proposal being agreed to, the board adjourned, and Mr. S. still -suffering from the contusion of his lower spine, walked home with a -gait much as he would have done, had he chanced to have made a rent in -his nether integuments, on a windy day. - - BREAKING UP—COLLOQUY. - -As they went out, J. said, “Mr. G., look well that the commissioner has -not another interview with Bold Eno.” - -“Never fear,” answered G.; “I have provided employment for him.” - -While these things were going on in the parlor of the Morrison, the -commissioner sat in consultation with John-of-the-Field, and the -following colloquy took place between them: - - PALAVER. - -JOHN. Mr. Commissioner, your State is one of great resources, I think. - -COM. Undoubtedly, sir; surpassing that of any other State in the Union; -_i. e._ when they are fully developed. - -JOHN. And you are taking the right course for that purpose. The example -of New-York, in internal improvements, has, by its success, given an -impulse throughout the country. In point of locality, you far exceed -us; but then, we have the capital _here_, which is our great advantage. - -COM. Yes, sir, if we had the capital of New-York in the State of ——, -to carry out our plans of public improvement, in twenty years from -this, we should exceed her in population by a million. - -JOHN. Yes, Mr. Commissioner, and your soil is so fertile, that when -they were completed, even the farmers of New-York would draw their -supplies from you, through the lakes, the Erie canal, and the Erie -railroad, which is now in progress, principally with that view. - -Here John, perceiving a stare of surprise and doubt in the eye of the -commissioner, added, “_i. e._ provided they could turn their lands to -a better account, by the cultivation of products more congenial to the -poverty of their soil.” - -COM. The view taken of the subject by our legislature, is, that if we -can borrow the capital now, to complete the works, the income from them -will so increase, with the increase of products and population, that -in twenty years they will pay the debt and interest, and leave a large -revenue to the State ever afterwards. - - FEELING HIS WAY. - -JOHN. I have always advised my friends to invest in the securities -of the Western States, as being the safest they could make; and many -of them are large capitalists, who frequently ask my advice in such -matters. I think if I had the agency of all the Western States, in this -market, I could save them a great deal of money in their negotiations. -Their debts being only about forty millions, the management of them -would relieve me from too much leisure, which I find rather irksome, -since I retired from the active superintendance of a large institution -here. - -COM. Perhaps the best introduction to such an arrangement, would be, -for you to take up the loan now offered. - -JOHN. Well, my investments, latterly, have been very large, which I -would not like to disturb at present, but if it would _accommodate_ -you, I would take the matter of 300,000 dollars of the bonds, at par; -but then, I should pay you 200,000 in the stock of the Long Island -Railroad at par, and the balance in six months. This railroad is -estimated to be the most promising stock in the country; and its -friends are sanguine, that _when_ completed, and in operation, the -stock will be worth, at least, 250 per cent., and produce an interest -of, at least, 20 per cent. per annum. The original capital was but -700,000, and with that capital, and the income of the portion already -finished, say only about one-third the distance, the company has -already expended one million and a half—_i. e._, including a small -debt still outstanding. I would not part with the stock for any other -purpose than to oblige you—being anxious to facilitate the interest of -all the Western States. - -COM. My object, sir, is ready funds; they are wanted for immediate -disbursement, to about the amount you speak of; if that could be -arranged, terms could be made for the balance. - - JOHN OVERSHOOTS HIS MARK. - -JOHN. Well, Mr. Commissioner, if that is the object with you, I think I -could arrange for 300,000, and give you Mississippi funds at par. The -State would, of course, give me some additional security, and you would -deposite the remainder of the 2,000,000 of the bonds with me for sale. -My commission would be very reasonable. - -COM. Why, sir, if the security of the whole State is not good, they -have nothing else to offer. However, I will think of your offer of -Mississippi funds. I have another call to make—so, good morning, sir. - -As soon as the commissioner had left, John held this soliloquy with -himself: - - HIS SOLILOQUY THEREUPON. - -“I am afraid I have overshot the mark. That asking security was a bad -affair; but then, I am so in the habit of asking six or eight for one, -hang me if I could resist it in this instance. The railroad stock, too: -if he should inquire about it, ‘he’ll smoke me.’ Two hundred thousand -dollars!—why, I’ve got but ten shares; but then, I could buy the rest -at five dollars a share. A _small debt_ they owe, indeed—ha, ha, -ha. I have no doubt those they owe would be glad to make it small. A -promising company!—yes, they promise every thing, and perform nothing. -They will never divide one-twentieth of one per cent.; and then, -the Mississippi funds, too—I wish I had said at a small discount, -instead of par; and then I could have fixed it at one per cent., which -certainly would have been small enough, for I can buy them at 30 off. -Confound my avarice—I’ve made a miss-fire. The fellow is tame as -a spaniel—but then, he’s no fool; how he stared, when I puffed his -State; he didn’t believe me. If he talks about this, I’m ruined; but -then, I’ll deny it all, when he’s gone.” - - HIS GAME UP. - -When the commissioner went out, he proceeded to the office of Mr. -Bottomly, where, upon inquiry, he learned the truth, viz: that -Mississippi funds were at 30 per cent. discount, and that Long Island -Railroad was worth 5 dollars a share, instead of 100. Of course, all -further negotiation with John ceased, and that gentleman was left to -wait the arrival of a commissioner from some state still farther west, -with whom his persuasive flattery, tempered by experience in its use, -would be more effectual. And here I leave him, to the disposal of -_him_, whom the State has adjudged to possess a wiser head than mine. - - HOW TO “COME OVER” A MAN. - -The commissioner, when he left the office of Mr. Bottomly, encountered -Mr. G., who, as we have seen, had just left the parlor of the Morrison. -G. seized him by the arm, and insisted that he should go home and dine -with him. It was the intention of the commissioner, to have gone -immediately to Mr. Bold Eno, whose advice he now began to consider a -salvo against the tricks and managements of others; not in the least -imagining that, should he once get in the clutches of that gentleman, -it would be like escaping from the thievishness of apes, to throw -himself into the embrace of a Bear. Such an interview was precisely -what G. desired to prevent, and consequently, he was persuasive to a -degree that common sense, in polite society, would denominate rudeness. -The commissioner, who, in days gone by, had often urged the weary -traveller to partake of the bounty of his board, or accept the shelter -of his roof, and whose open heart and hand still made the luxuries of -his table the common property of his friends, had no idea of such a -perversion of the rights of hospitality, as a prostitution of them to -the sordid purposes of interest. He was therefore persuaded; and once -at home with G., he was there detained through the day and evening, and -regaled with savory viands—“taste after taste with kindliest change -upheld,” with flowing nectar, dulcet creams, and the sweet sounds -of music, with beauty’s winning smiles, till his brain whirled with -pleasure and delight. - - GOOD EFFECTS OF HOSPITALITY. - -It is not my business to record what further took place on that day and -evening; how many friends accidentally came in, to enliven the scene, -and how certain gentlemen, who were introduced to the commissioner, -poured flattery into his ear. It is enough that the deed was done, -and in the mind of the commissioner, the character of Mr. G. was -established, as the most disinterested, polite, gentlemanly, agreeable, -hospitable, and honest, of men; and to his guidance he therefore -submitted himself. - -On the following morning, agreeably to the preconcerted plan, the -commissioner, having been notified, attended at the office of the -Morrison, at the appointed hour: and, in the mean time, Messrs. G. and -S. having agreed between themselves to raise the amount immediately -wanted by the commissioner, little remained to be done. Terms were at -once agreed upon—two millions of bonds were deposited in the vaults of -the Morrison, and in a few days the commissioner started for the State -of ——, with 250,000 dollars in good cash, and highly gratified with -his reception and success. How much of the balance the State has ever -received, the condition of their treasury will best explain. Certain -it is, that the embarrassment, which, in more than one instance, has -followed similar transactions, has been severely felt, and will be well -remembered by our Western brethren. - - A WORD ABOUT THE WEST. - -And here—politics aside—a question may well be asked, which every -man can answer for himself, so far as opinion goes. Have not the -inexperience and inefficiency of some of their agents, and the -villainy and irresponsibility of those with whom they have negotiated, -contributed more to induce a proposition, in some of the States, to -disgrace themselves by repudiating their debts, than any want of a -proper sense of honor among the men of the West? If such is admitted -to be the fact, it may, in some degree, excuse the rashness of their -tempers; but whoever entertains such a proposition, after a moment’s -reflection, would sell—not his own birth right—but his country and -his kin for a morsel of bread. - - THE BUBBLE WELL BLOWN. - -To the uninitiated, it will seem a singular circumstance, that a -company, without a dollar in their vaults, should undertake to loan -two millions; but they forget the maxim, that credit is the life of -business. This maxim formerly meant, that a credit, well sustained, -gave success to enterprise—but by its misapplication and misuse, it -has come to a different signification, viz: that the more one owes, -the more he has to sport with; and it was precisely on this principle, -that the Morrison Kennel contracted with the commissioner. It was only -carrying out, in another shape, the invention of Nicholas—“always -to be the borrower, when he appeared to lend.” They had now obtained -possession of 2,000,000 of the bonds of the State of ——, by advancing -only one eighth part of the amount. On the remainder, they could borrow -largely, and they were now prepared to wing aloft a new flight; their -gaseous inflation borne upward and onward by the breath of a fame of -their own creation; and they were not long in choosing which way they -should direct their course. - - MYSTERIES LEFT UNEXPLAINED. - -Some evil-minded people will perhaps begin to surmise that Nicholas -was the master-moving spirit in this matter, and that he was artfully -contriving to get his pay of the Morrison at the expense of some one -else; perhaps of that nondescript body called the public. Only one -thing, however, is certain; he did get his pay but as every story has -a sequel, this will be found to have one also. If the Morrison did -not lend him the State Bonds to support his own credit abroad, and -then rally their own, by negotiating his bonds, appearances and common -fame, whose poisoned breath we admit is no standard of truth, were -certainly against them. On what principle matters were arranged between -them, is not certainly known; but it is now matter of history that a -system of issuing bonds, certificates, endorsing and counter endorsing, -exchange and re-exchange, was adopted, by which they drew together a -large amount of capital, and both became proud examples of the splendid -results which a single inventive genius, like Fulton in steam, or -Nicholas in finance, may produce. The affection existing between them -was equalled only by the rivalry shown by each, in offices of kindness -to the other. - - CHARITY BEGINNING AT HOME. - -The little responsibilities of endorsing or negotiating a million or -two of bonds or certificates, were all undertaken and performed as -mere offices of love. What if they were moved to such kindness by -the promise, or the hope, of a reciprocal support? it but proves the -excellence of their hearts, and the nearer approach to that command -of the Master, that we “love our enemies,” and it is for such things -only that we have _reward_. _Their_ duty was to protect the commercial -interests, of which they each considered themselves as the head; and, -therefore, the first rule of propriety, and the first law of nature, -imposed upon them the necessity of first taking care of themselves, -individually, and their liberality in this respect cannot be too highly -commended. _They_ had a facility for raising money that other people -had not, and duty required that _they_ should enable their debtors to -pay them; and if, in the accommodations necessarily granted for that -purpose, the Morrison should lose a few hundred thousands, nobody would -ever know how it had been lost. The stockholders, a vagabond race -scattered over the face of the earth, whom nobody knows, would have -to bear it; and, (aside,) perhaps they could screen themselves, and -protect the Morrison, by throwing it all upon Nicholas, should things -go wrong. After all, what was such a loss, compared with the importance -and public benefit of supporting the _commercial_ _interest_. - - A CURE FOR HYPO. - -It was not to be considered for a moment, and the wisdom of this -conclusion was shortly made apparent in its effects. One gentleman is -known to have recovered entirely from a nervous hypochondriacism, so -severe, that his cheek blanched at the sight of his bill-book, and his -rotund proportions shrank to the circumference of an eel, from the -self-denial consequent upon poverty—or, what is more probable, the -chagrin of disappointed ambition. But we are told that “the just shall -inherit the earth,” and so it was in this instance; it having been -affirmed, in vindication of this rule, that his reduced diameter, and -assimilation to the animal aforesaid, enabled him to slide the easier -between the sheriff and his conscience; and while his neighbors, one -after another, were tumbling over the precipice of ruin, he was saved -from being knocked down in their fall, by quietly reposing beneath the -shade of the Morrison. - -But I am growing too elaborate of description, and must bring this part -of my story to a close. The subjects and material of the picture I am -contemplating, are so numerous, and fruitful of thought, that it is -difficult to decide which to choose, or where to stop; but the colors -are too gross, and weary the eye and the mind. Besides, I hate to -individualise, and must request my readers to bear in mind, that in the -characters here described, _nobody_ whatever is meant; and should they -remember ever to have seen such a character as either of them, I must -beg them to bury the memory of their follies beneath their more private -and superior virtues, should they be found to have any; and if they are -penitent, to throw the mantle of charity over the past, and screen them -from the rude gaze of scrutiny. - - CRISIS APPROACHING—NICK RETIRES. - -The time was now fast approaching when the boluses administered by the -Kennel physicians, could no longer support the weakened constitution -of Pennsylvania’s great pet; and what was of more importance, in the -opinion of the Kennel directors, his credit was no longer sufficient to -support _them_. - -Nicholas the first had retired from his charge, to fatten upon his -laurels; Alas! that they should have faded so soon, and left him -nothing but dry leaves whereon to feed his morbid appetite. - -Mr. Done-up had succeeded to his place as chief physician; his patient -had already suffered a relapse, and the symptoms were by no means -favorable. His physicians recommended a more generous diet, but both -shores of the Atlantic had already been dredged for dainties to satisfy -his hungry maw. Yet still he grew more rabid, and would swallow at a -gulp, what cost the labor of a year to procure. - - SKULKING. - -In this dilemma, the curs of the Morrison, perceiving that although -they had paid the debt to Nicholas, contracted under the old direction, -_they had, in another shape, just doubled it under the new_—that each -of them had served _his own_ purpose, and that not one of them owned a -dollar in the Morrison or the U. S. B. they all resigned their seats, -and scampered away to their dens; where, it is to be hoped, that, for -the benefit of the coming generation, they will live and die in a good -old age. And may God them assoil, the stockholders and creditors of the -Morrison never will. - -As I approach the conclusion of this chapter, my tale grows sadder, and -still more sad. All created beings and things, which have beginning, -must also have an end. Death lays his unpitying hand alike on man, and -every monument of his greatness. - - A TOUCH OF THE PATHETIC. - -We wonder at the duration of our own existence; that the term of our -lives should witness the pride of a powerful state; the successful -opposer of the conqueror of armies, and the controller of millions, -to dwell only in memory. Yet the sad tale has met our ear, that the -U. S. B. of P. is no more.—That pillar of the currency that some -thought was based on a rock of ages—that nursing mother, who would -fain have gathered the whole nation, as a hen gathereth her brood under -her wings—that giant of ubiquity, that dwelt in every town and city, -a very mastodon in power, and a mastiff in watchfulness—deserted by -his friends, persecuted by his enemies, and cheated by all—expired at -Philadelphia on the 5th of Feb. A. D. 1841, after one long and piteous -howl of 20 days and 6 hours, in the 5th year of his age. - -The power of sympathy is one of the remarkable properties of life, -throughout all animate and inanimate creation; and it is a circumstance -worthy of note, that, at the moment of his expiring, every inferior -cur, from New York to New Orleans, gave one loud and piercing yell, -and laid himself down in his den. Throughout the land, old men bowed -themselves in sorrow, widows wailed in secret, children began to cry -for bread, girls in their teens shed salt tears, lest the fall of -stocks should loose them their sweethearts, and a thousand and one -ancient virgins retired in privacy to count their rosaries; not with -catholic piety and reverence, but to see how much remained in the -stocking. - - A SHOW OF REASON. - -My readers will be surprised, that I should apply the incongruous -and unmusical name of bull dog to the U. S. B.; but I must beg them -to recollect that I am in Wall-street, that this is Wall-street -language, and that no other would be understood here. And as this was -the name under which we first made his acquaintance, for the sake of -consistency, I must carry out the figure. And to redeem my promise, it -only remains that I should give some account of his disease. - -For the benefit of science, and the coming generation, it is to be -regretted that those who have his body in keeping, have refused a -post-mortem examination.[3] Mr. Done-up, the chief physician, insists -that he is not dead, and that he will have him kept for a year and -a day, for experiments of the galvanic battery, electro-magnetic -suspension, and such other inventions and restoratives as his skill -may suggest. But it is the opinion of Wall-street physicians, that the -doctor will never be able to do more than to embalm his body. - - DISEASE—ITS NATURE AND CAUSE. - -It is the opinion, also, of those who have had an opportunity of -observing his symptoms, that his disease was a species of cholera, a -sort of internal evacuation; or, to be more particular in explanation, -that while promises were going out one way, the specie was going out -the other; and that the too frequent gorging of stocks, state bonds, -cotton speculations, &c., had the effect, like Major Downing’s -elder-bark tea, to work both ways. One singular circumstance has -attended him throughout; which, as it is a reversal of the order of -nature, is worth mentioning. In his case, _corruption_ took place -long before death, and _mortification_ afterwards. His disease is -said to have had its origin in an overheating of the blood, in the -great contest about the deposites. But as this is a matter of some -dispute, I leave the point to be settled by the great successors of -their “illustrious predecessors”—Dr. Done-up of Philadelphia, and Dr. -Ran-down of Kinderhook, both of whom, it is supposed will now find -sufficient leisure, amicably to settle their differences. - - PRACTICAL HINTS. - -My friend, the relator of the foregoing, here left me abruptly again, -but as I am sure to find him in the same place to-morrow, I shall not -fail to make him a visit. What the subject of his conversation will be, -I cannot tell, but as he has found me a willing listener, I feel sure -that he will be as communicative as ever. - -It was my intention, at the close of this chapter, to have expanded -a little on the great value to the public, of corporations, when in -the hands of men of talent, property, and credit, who can, without -responsibility to themselves, act for the benefit of the stockholders. -But, as I have already detained my readers too long, and since people -will think for themselves, right or wrong, if they ever chance to -think at all, I need give no further evidence of their utility, and -entire safety in such hands, than the following facts. Among all the -officers and directors of the Morrison Kennel, and the U. S. B., -in which about forty millions of dollars have been totally sunk and -lost, not one of them ever failed, or lost a dollar in his individual -capacity; and, had the stockholders loaned their capital directly -to the merchants, through whom it will perhaps be said it has been -lost, instead of investing it in those stocks, they would have saved -in the last 25 years, only about 50 millions of dollars, in their -expenses, investments in unconvertible property for their splendid -accommodations, and losses consequent upon their management to sustain -themselves in a ruinous business. - - THE WAY OF SAFETY. - -But, since commerce has so organized herself, that such institutions -are necessary, if stockholders will not look after their own interest, -if they will allow their agents to pursue their own pleasure without -supervision, or accountability—if they will not employ as their -agents, such men as will have some reference to a good conscience, and -common sense, something besides selfishness in the performance of their -duty to their principals, and the public, they deserve to lose their -money. - - WHAT EXPERIENCE SAYS ABOUT IT. - -I have no wish to appear the censor of the past, or to make wise saws -for the future. But for the benefit of those who may have a little -money left to invest, I will give them, in few words, the experience -of thirty years. Every institution, established for the purpose of -creating capital, instead of investing that already possessed—every -one established for the purposes of speculation, or monopoly, of -any kind—or for the promotion of the interest of any particular -individuals—every one which contracts debts against itself beyond -the immediate means of paying, and thus loses its independence -of character—and every one which perverts its means from the -legitimate use, which, on a fair construction, was contemplated in its -creation—either has ruined, or sooner or later will ruin, itself, its -stockholders, and its customers. - -FOOTNOTE: - -[3] Since the above was written, the affairs of the U. S. B. have been -examined by a committee. - - - - - CHAPTER IV. - - SHOWING HOW STOCKS ARE BOUGHT AND SOLD—HOW BROKERS GET OUT OF - A BAD SPECULATION—HOW MONEY IS SOMETIMES MADE BY DOING A - LOSING BUSINESS—HOW DISCOUNTS ARE MADE AND OBTAINED, &C. &C. - - -Before proceeding to relate the conversation of my friend this day, I -must first state a few facts, for the information of those who are not -already acquainted with them. - - THE LAWLESS HAVE LAWS. - -The Board of Brokers have many rules for their government; one of -which is—that, when a broker is employed by another person to buy or -sell stock on time, he has the right to give the name of his principal -within twenty-four hours, and then, if the other party is not satisfied -with the security, he is required to deposite ten per cent., or the -contract is cancelled. If the broker so employed, does not give -the name of his principal, he assumes the responsibility himself. -All contracts for the purchase or sale of stocks, on time, are, in -themselves, illegal; the contract cannot be enforced by any law, and -the only security that operators have for their fulfilment, is, that -rule of the board which expels a member, if he fails in his contracts. -Just as all gamblers may be supposed to expel a man from their society, -who takes up his winnings, but never pays his losses: or, upon the same -principle on which there is held to be honor among thieves—whoever -takes more than his share, is expelled from the gang. - -Stocks sold on time, are seldom delivered; but, when the contract is -mature, the difference between the sale and the average market value -then, is paid over by the loser. - -There are a few men of property, not brokers, who occasionally buy -fancy stocks in Wall-street, when money is scarce, and sell again -when it is more plenty, and reap a profit by it; but their number is -so small, that they have never attained the respectability of any -distinguishing name. - - BULL-BACKERS AND BEAR-TRAPS. - -There is a larger class, who sometimes control a good deal of money, -and who make speculation their business. These generally unite in -squads, for the purpose of _cornering_—which means, that they first -get the control of some particular stock, and then, by making a great -many contracts on time, compel the parties to pay whatever difference -they choose—or rather, I should say, whatever difference they can -get—for they sometimes overrate the weight of the purse of those -they contract with. These persons are denominated Bull-backers, or -Bear-traps, according to the nature of their operations. The first -signifies that they have bought stock largely, and hold it; and the -second, that they have sold stock which they have not got, and trust -to circumstances to be able to supply it. The brokers, themselves, in -these cases, are called Bulls and Bears. - -There is another, and a much larger class, who, deceived by -appearances, come into the market without any knowledge of it, and -generally lose what they invest. These are called Flunkies. - -With this elucidation of terms, I am ready to proceed with my friend’s -narrative, whom, true to his habit, I found at the spot, and anxious -for a listener; and, from the nature of his remarks, I am induced to -believe that he suspected me of some desire or design to enter on the -business of stock jobbing. - - HOW TO QUALIFY FOR WALL-STREET. - -“If,” said he, “you have any intention of entering into business in -Wall-street, you ought first to know, that, although there are many -respectable men and firms here, who have accumulated property and -credit, by a long course of industry and application, as in any other -branch of business, there is, nevertheless, a very large class, who -look upon every new comer as a fit subject for their stratagems. And -very few such escape one of two extremes: either the loss of their -property, or a sacrifice of conscience, honor, honesty, and every noble -principle, to the mean and sordid one of getting money. The first -sacrifice you would be called upon to make, would be, confidence and -respect towards your neighbors—you must disbelieve every thing you -hear and see, and look upon every one as having a design on your purse: -no very comfortable position for an honest man.” - - FANCIES BETTER THAN SOUND STOCKS. - -A very large portion of the stocks termed ‘fancies,’ and in which they -mostly deal, are entirely worthless in themselves; unlike articles of -merchandise, which may be seen and examined by the dealer, and which -always have an intrinsic value in every fluctuation of the market, -these stocks are wholly wrapped in mystery; no one knows any thing -about them, except the officers and directors of the companies, who, -from their position, are not the most likely men to tell you the truth. -They serve no other purpose, therefore, than as the representative of -value in stock gambling, which might just as well be wholly imaginary, -and of any other kind, as these; and you would soon learn, that the -reason why there is so much dealing in _depreciated_ stocks, and so -little in those which are solvent and at par, is this: Nearly all the -fluctuations in their prices, are artificial—a small fluctuation is -more easily produced than a large one, and as the calculations are -made on the par value, a fluctuation of one per cent. on a stock worth -only twenty dollars a share, is just five times as much on the amount -of money invested, as it would be on a par stock. Consequently, if a -‘Flunkie’ can be drawn in, he may be fleeced five times as quick in -these, as in good stocks. - - HOW FALSE LIGHTS ARE SHOWN. - -The arts and tricks resorted to, in this kind of gambling, are the -same as in all others. When the brokers and speculators engaged in -it, have no customers on whom to practice, and each one is shy of the -other, they lovingly play among themselves. To keep up appearances, -large transactions take place, which, by mutual understanding, are not -to be fulfilled, and like children at chequers, when the game is out, -the kernels are thrown into common stock again, and a new one begun. -And, strange as it may seem, these transactions are published in all -the commercial newspapers, and go forth to the world as the evidences -of value, and the condition of the money market, to deceive the unwary. -Every editor, who properly regards the welfare of the community, over -which his position gives him great influence, ought at once to refuse -the publication of any sale of stock, but such as are of standard and -intrinsic value; for it is by these means, that so many are drawn from -their regular pursuits, into ruinous speculations; when, if nothing but -truth were told them, they would stay at home, and save their money—to -say nothing of the mischief of idleness and dissipation, which the -habit of gambling engenders. - - WHO IS TO BLAME. - -I must not be understood as applying what I have said, or shall say, -to every man in Wall-street: far otherwise. Nor would I be understood -as applying it to brokers exclusively, or to any one in particular. I -only say, that if the coat I shall cut out suits any man’s shape and -dimensions, let him put it on. On the whole, the brokers are less to -blame than those who support them; and, if left to themselves, their -trade in fancy stocks would soon cease. If people will gamble, there -must be some place to do it, and some persons as directors, agents, and -co-partners in the business; and, until the people are reformed, it is -doubtful if Crockford, in London, and the brokers in Wall-street, are -not more honest and respectable than their supporters. - - SECRETS LET OUT. - -Stock gamblers of very small capital, often have contracts pending, -of many hundreds of thousands of dollars—they sometimes operate for -a rise, sometimes for a fall, of prices. In the first case they buy -deliverable at a future time, at a certain price. In the second, can -they sell in the same way. And, in either case, their profit or loss -depends on the rise or fall of the stock bought or sold; as, indeed, -all their profits do; for there is no such thing as a dealer’s profit -for the labor and risk of distribution, as in merchandise. The whole -process is a mere betting upon the future value. In this way, it will -be seen that the number of chances for gain or loss is just doubled, -as compared with dealers in merchandise, who always get what they buy, -and sell only what they have got. They frequently make a condition to -their time-contracts of “buyer’s option,” of “seller’s option,” which -means, that the person to whom the option is given, may, at any time -within the period of the term of sale, by giving one day’s notice, -call for the stocks, and this enables them to take advantage of any -temporary fluctuation which may happen, or which the parties interested -may be able to create. These circumstances easily explain the reason -why fortunes are often so suddenly made or lost in stocks. No system -could be devised better calculated than this is, to excite a gambling -propensity, and afford an opportunity for the exercise of ingenuity and -cunning. - -“But,” said my friend, “lest I should weary your patience, by too much -generalizing, and seriousness, I will inform you how Mr. Tell-it got -out of a bad speculation.” - - A NO. 1. CHARACTER. - -Mr. T. is a regular descendant of Mr. Jacob Broker, of the seventh -generation, and one that does honor to his ancestral renown. No greater -contradiction of terms can possibly be used, than exists between -his name and character, for he was never known to tell a thing that -he knew, however trifling. His conversation and answers are wholly -by interrogatory. When asked at what price he will sell, his answer -is, “what will you give?” and he never commits himself in a promise, -without first receiving a promise of another, or, what suits his taste -much better, something tangible in its stead. This peculiarity of mind -has led to one great virtue, to which I bear willing and honorable -testimony—he was never known to tell a lie. If people take false -impressions, it is because they assume false premises—if they indulge -in wrong opinions, it is because they have not been diligent enough -in search of truth—and, as he is a competitor for the great prize of -life, he cannot spend his time to correct other people’s deficiencies. - - HIS CHARACTER. - -His knowledge of men and things is regulated by their _properties_, -and his estimate of the proper pursuits of life has received a bias -from his literal construction of the Apocalypse, in which the streets -of the new Jerusalem are described as being of pure gold; and he -appears to regard the possession of it here, as the surest passport -on his way there. In exactness and punctuality, he is a model for -imitation. He generally operates “for a fall,” and, like his great -progenitor, his interest compels him to take pleasure rather in -demolishing than in building up. His assiduity and skill are such, -that, united with his great physical force, mechanically denominated -“_a purchase power_,” he can tear down more in one week, than the whole -fraternity can build up in a year; and he has been known to topple a -Bank, an Insurance company, a Railroad, or a whole bevy of brokers, by -a single application of his lever. - -But such is the variety and opposition of interests created by the -multitude of heads, and the multiform opinions entertained by them, -the circumstances of which are varied by every transaction that takes -place, of which none but those concerned in them can have any control, -that the wittiest sometimes get outwitted, and the strongest outdone. - - GETS TRAPPED. - -Not long since, a squad of Bull-backers, had for some months been, -secretly, and unknown to Mr. T., getting control of a certain stock, -intending to “corner” some one with it; and, aware of Mr. T.’s tearing -down propensity, after due consultation, they laid a scheme whereby to -entrap him. Deputing an agent of well known paucity of dollars, they -sent him to Mr. T. to get a loan of money on a large amount of the -aforesaid stock. The loan was completed for the term of 90 days, Mr. -T. advancing two thirds the nominal value. Whether he had any ulterior -object, or not, in lending the money is not known; but, as he seldom -made such loans when such object did not sooner or later disclose -itself, it is suspected, that in this case, he looked beyond the -present bargain, and, believing that his debtors would be obliged to -sell the stock he held, for what it would bring, to pay his loan when -due, he commenced his operations for a fall in the stock, by selling -it all out. It so happened, however, that the Bull-backers aforesaid, -were the buyers of it, and this was just the snare into which they -desired to lead Mr. T., knowing that when their agent should pay up -his loan, and call for the stock, T. would be obliged to buy it of -them, at such increased prices, as they should dictate. And Mr. T. was -soon made sensible of his condition, by his debtor calling long before -the time, and offering to pay up the loan, and withdraw the Stock. He -was certainly surprised, but his quiet and collected manner betrayed -no emotion. And here I must render another tribute to his character. -He certainly bears his profits and losses well; as great men are said -to bear their honors and misfortunes, with unassuming and unrepining -philosophy. - -The discovery of his situation however, called for the exercise of his -sagacity, and he modestly declined receiving the money, only saying, -that he preferred it should rest for the time agreed on. - - IN A QUANDARY. - -As soon as his debtor had gone out, he thrust his hands in his pockets, -his eyes resting on the floor in front, and sticking out his lips, -in a way which no other man does, he muttered to himself “I’m in a -bear-trap—this won’t do. The dogs will ‘come over’ me. I shall be -mulct in a loss. But I’ve got time—I’ll turn the scale, I’ll help the -bulls, operate for a rise, and draw in the flunkies.” - -These men, I should have said before, have no other rule of judgment -for their operations than to follow in the wake of some great and -successful speculator. Mr. T. very properly regards them as sheep for -the slaughter; and although the milk of human kindness certainly is a -component of his heart, he makes no scruple of sacrificing a score of -them at a time. Why should he? for killed and eaten they certainly will -be by somebody: but they are a genitive race, and re-produce as fast as -destroyed. - - WORKS OUT BY DRAWING OTHERS IN. - -Mr. T. had need of no further exertion, to accomplish his purpose, than -to make his course _manifest to them_, they all followed his apparent -lead, as sheep will follow one another over a wall, if they all fall -into a ditch on the other side. Even the wise man of Israel, by his own -confession, did not know every thing. “The way of the serpent on the -rock was too wonderful even for _him_,” and so in this case; the way -of their leader was to them, “past finding out.” But the secret of the -management necessary, in this case, is, to do just the opposite of what -one appears to do. Mr. T. therefore continued to operate visibly for -a fall, by selling out small sums for future delivery, which he took -care to have trumpeted by another, while he was very reserved himself. -He thus drew all the “flunkies” after him, as _they_ supposed, while -he was in reality the purchaser, through his agents, of all that they -contracted to sell, and by this means, before the expiration of the -loan, he was in possession of the stock to deliver, with a difference -of ten thousand dollars in his favor, against the flunkies. - - EVILS OF TALKING IN SLEEP. - -These things would never have been known, but that T. sometimes talks -in his sleep, and while chuckling over the ruse de guerre, he recounted -the whole story, and was overheard by his chum, who thought the joke -too good to be lost. - - HOW BROKERS SOMETIMES FAIL. - -And now, said my friend, as I am in the way of story telling, I will -tell you how money has been made, by doing a losing business. It -will have been seen already that the failure of a stock broker, does -not involve commercial dishonor. It is a mere acknowledgment, of his -inability to pay his _bets_, for debts they are not. When this has -happened, he suffers the penalty of being expelled from the board. -It then becomes the interest of those to whom differences are due, -(the term used for stock debts,) to get what they can and discharge -him. The amount he will be willing to pay, depends on three-fold -circumstances—the amount of means he possesses—his own sense of -obligation—and the credit and advantages he is to gain, by being -reinstated. And a settlement once made with his creditors, it becomes -the interest of all, to reinstate him; for society becomes disjointed, -by losing its prominent members. - -When a broker operates for others, as his principals, he usually -requires a deposit of ten per cent., as security against loss. They -generally operate in different kinds of stock, some of which turn -favorably for their interest, and the differences are in their favor. -In others the difference is against them, according as their risks, or -their judgment, may have proved favorable, or unfavorable. Commonly -their operations are very large in amount, and it sometimes happens, -that the fluctuations are greater than the security, and by the -occurrence of some unforeseen event, like the recent failure of the -United States Bank, a fair adjustment of the differences against them, -would ruin all the parties, consequently, one or all of them must be -sacrificed. - - HOW THEY GET UP AGAIN. - -Expediency, and interest dictate that it shall be but one, and that -one the broker. He consents, because it involves less dishonor with -him than the others. They can be screened by his defalcation, and, it -is equally his interest to take care of his customers, as himself. And -if he has not too delicate a conscience, (and all men have not,) the -way is now open for the following management. When differences are in -his favor, he may avow his principals, and the losers must pay, or -themselves suffer expulsion from the board. Where the differences are -against him, he may keep the responsibility to himself, and as they are -very large, he will be able to compromise them, for the ten per cent. -deposited, and perhaps less, if he has not been careful to exact the -security. And when the whole is adjusted, if the differences collected -exceed the ten per cent. paid, there is a profit to divide, among them -all. And, if these operations are not sometimes performed with a less -scrupulous regard to figures, suspicion has been guilty of a libel. I -do not say, that this is a common practice among the brokers, but the -power of doing, and the facility of screening it, are equivalent to an -invitation to rogues to embrace it, and all the world knows, how ready -_they_ are to seize an opportunity. - - AMUSING OPERATIONS. - -Although stock-speculators, generally, affect to be very secret, as -well as very cunning, in their dealings, they frequently contrive -to find out each other’s business, and the manner in which their -liabilities sometimes develope themselves is amusing. It lately -happened that two speculators, Mr. A. and Mr. B., had been operating -in different kinds of stock, and each of them thought he had a -considerable amount of profits to collect, and losses to pay; and -the whole having passed through a broker’s hands, neither of them -was supposed to know who the principals were. Circumstances led to a -comparing of notes, when it was found that their claims on each other -were so nearly balanced, that they settled it by offset. It is believed -that at least one of them intended to collect his profits, and back out -of his losses; but that the other, more cunning than he, had contrived -to take the place of a third party, (Mr. C.,) who was the real seller -of the winning stock on his side, and when a settlement had been made -between A. and B., that B. and C. divided the amount of profits on C.’s -stock between them. By these means, the third party, C., was enabled -to collect half of a profit, which he would never have got otherwise, -and the other, Mr. B., was saved paying half a loss, which he would -otherwise have had to pay, or to sacrifice his broker, who, between -them both, was saved from a dilemma. - - WALL-STREET NOT A SAFE PLACE. - -“And now,” said my friend, “unless you can follow all these windings, -and are ready to turn as sharp a corner as the rest of them, let me -advise you not to stay long in Wall-street; for, depend upon it, while -you are here, you are in the midst of temptation, and no man ever -trifled long with that, and came off with his honor unscathed, and his -heart not indurated.” - -I thanked my friend for his advice, and replied, “that I had already -determined, that I could never aspire to a professorship, nor even a -pupillage, in a school requiring such active energies of body and mind.” - -But my friend continued, and, taking out his watch, remarked, that, -as he had yet time to spare, if I pleased to listen, he would tell me -something about the manner in which discounts were sometimes made, and -obtained. And, willing to be informed of all particulars, in which I -had now become deeply interested, I signified my wish to hear how these -important appendages of trade are managed. - - FICTITIOUS CREDIT. - -“Young men,” said he, “often mistake the basis of their own credit, -and are flattered by the freedom and liberality with which money is -sometimes lent them. They could not possibly commit a more fatal error, -and this arises in a great degree, perhaps, from the false estimate of -what is commonly called money.” - -The system of Bank credit, which has so widely obtained in this -country, and which allows of a circulation of their notes, or bills -of credit, as a substitute for money, has been productive of untold -benefits. But its long success has led to its abuse; and the manifest -advantage, to those who held the privilege, has led designing men to -seek an influence in its control. In times of ease and plenty, these -gentlemen are ever ready to exchange their credit for the substantial -securities of the merchant, receiving therefor the premium of interest, -as their profit. These Bank credits, being readily convertible for the -payment of debts, entice men of small means into an enlarged business. - - COMMON MISTAKE. - -The error of young merchants seems to have been, an appreciation of -Bank issues, to be the same as money, instead of an equivalent in -credit, and a discount obtained, as an exchange of securities for -cash, instead of a new debt contracted. They have overlooked the -fact, that the same circumstances that will cause distress to them, -will also cause it to the Bank, and bring with it a curtailment of -their accommodations, just at the time when their wants require their -enlargement. Their independence is gone, as soon as they are obliged -to solicit a favor, and if in the hands of heartless and designing -men, this is just the time when advantage will be taken of their -necessities, as long as their securities are good; and they will find, -when it is too late, that they have leaned on a broken reed. - - HOW THEY GET SERVED. - -The habit of merchants leaning on a Bank credit, and considering it -better than their own, with the dependence growing out of it, has -enabled the latter, by common consent, to throw around it a sacredness -of character that does not attach to credit in any other place or -form; and instances are of daily occurrence, where men do injustice -to a neighbor, to enable them to pay a note at the Bank; while the -latter, to protect themselves, will sacrifice a score or two of their -customers, without mercy or compunction. When men become necessitous, -they are afraid to let it be known out of doors, because it will injure -their credit; and they will make almost any sacrifice in private, to -save such a mortification. And to this fact, designing and unprincipled -men, who, in times of pressure, convert the capital of a Bank into a -means of preying upon their customers, owe their security in doing -it; when, if the undisguised particulars could be known, they would -immediately lose their charter and their reputation. - -The way these things worked a few years since, in the Stork Bank and -the Water Works Bank in this city, is worthy of being told by way of -illustration. - - HUNGRY BEGGARS. - -The cashiers of these banks thought themselves so firmly seated in -power, that nothing could move them. By way of brevity, I will call -them Jack and Bob; but let no one suppose that the impudent familiarity -of using these barbarous corruptions of a Christian name, was ever -permitted to any but themselves. The bad times—which in business -parlance, in its proper construction, means, that period of time when -the mischiefs designed by one party, or arising from the follies and -imprudences of the other, are in course of developement—brought crowds -of anxious applicants daily to the counter of the bank. They arranged -themselves in rows along the walls, or by the side of the counter, with -anxious faces, each one waiting for his turn, and as each received -a negative, his eye flashed with anger, or his cheek blanched with -despair; and while others would march up, to prefer their own claims, -in the vain hope of better success, those behind occasionally peered -out from the long line in which they stood, and cursed the gravity -and self-possession of the cashier, while he held a long parley with -his customer; and the last in the line sometimes betrayed, by the -uneasiness of his limbs, that the vulgar saying of “the d——l take -the hindmost,” was uppermost in his thoughts. - - MONEY MADE BY FEEDING BEGGARS. - -When men of business become dependent on borrowing, to meet their -engagements, the daily supply becomes as necessary as daily food. The -proverb tells us that a hungry man will break through a wall; and, to -use a fashionable phrase, of some who do not understand their mother -tongue, the cashiers were “_au fait_,” in this principle of natural -philosophy. Their eager eyes scanned with solicitude the cadaverous -countenances of the hungry applicants, to see where their scanty means -of supply might be most _profitably_ applied, and when occasionally, -some one received _permission_ to call again when the press was over, -hope at once beamed in his eye, a smile played gently about his mouth, -and had the cashier been a lady, he would have fallen on her neck and -kissed her. Punctual to the hour, he returns and receives from the -complacent lips of the cashier, the joy-giving intelligence—“Mr. A., -we have so great a press upon us just now, that we find it impossible -to meet the demand for discounts; but, if it will oblige you, I will -take your notes at seven per cent. interest, and give you a check on -Mobile at sight, and at par, in payment.” - -“But I do not know what to do with it,” says Mr. A. “How will that -relieve me?” - -“Well, I don’t know, Mr. A., but I have understood that the Waterworks -Bank is buying at a discount of five per cent. That is rather a large -sacrifice to make, but it is the best that I can propose.” - - THE DEATH-STRUGGLE. - -“Hang the five per cent.,” thought A. to himself, “it will cost me -but a hundred dollars, and I can pay my note;” and, to him, a day’s -salvation from bankruptcy, was an age of happiness. The proposal was -eagerly embraced, and while the Waterworks was buying the checks of the -Stork on Mobile, Savannah, Columbus, &c., the Stork was buying those of -the Waterworks; and mischief-makers have reported that they were all -exchanged in the afternoon. - -Mr. Eavesdropper, whose name implies that he attends more to other -people’s business than his own, reports having overheard the following -dialogue between the cashiers, at their afternoon meeting. - - A BRACE OF JACK-ALLS. - -JACK. Well Bob, this business works well yet, I have pocketed five -hundred dollars, to day. - -BOB. Yes, Jack, sure, and it works well at present; but, upon me soul, -I don’t see the end of it, and if we were exposed, we should make a -dangling appearance, if we were even in the ould country. - -JACK. Never fear, Bobby—a man never dangles here, as long as he has -got money; and besides, the dogs dare not whisper a word; their lives -depend on their credit, as the only means of supporting them, and they -would be cut up like mutton-chops in the market, the moment they lisped -their own secret.—We are safe. - -BOB. Troth Jack, you’re always awake, but I’ve gone so deeply already, -that I couldn’t pay a draft to day from the Secretary at Washington, -an’ if it were not for that brother of mine, with the Scotch christian -name, who is busy at Washington, hang me if I think I could stand this. - -JACK. Mr. Cashier, excuse my departure from our usual friendly -familiarity, but, depend upon it, the authorities of the country will -never oppress, in their individual circumstances, those who are -legitimately engaged in support of their authority. - - HOPES AND COMPLIMENTS. - -BOB. Arragh, Jack! and you’re complimentary—but the marquis cares -nothing about your ragamuffin authorities. - -JACK. No Bobby, true, but he cares about your dividends, and that is -what you are to take care of. - -BOB. Sure and I’ll take care of that, by the faith of me, and how much -shall _we_ make, Jack, by this management? - -JACK. Why at least fifty thousand a piece, if nothing occurs till the -excitement is over. - -BOB. If nothing happens, aye, and there’s the rub, Jack. I’m afraid -you’ll bleed some of the patients to death. - -JACK. Never mind, Bob, if we see them fairly gasping, give them another -dose, and take double fees before hand. We have good security for the -past already. Good evening Bob. - -BOB. Good evening to ye Jack. Long life to ye. And when ye die, may ye -have an uncommon long funeral. And as Jack departed, he muttered, “and -if them ye murther are mourners, by me sowl it will be long enough.” - - A PROBLEM. - -These things may be all slander, but still, there are some who believe -that a bank, which in the course of twelve months, divides ten per -cent. profit to its stockholders, and accumulates a nominal surplus of -twenty per cent. more, could never have done it by loaning money at -seven. And it certainly is a problem in arithmetic, which requires some -new devise of figures to solve. - -The interest of description, would be lost in sameness of character, -should I attempt to describe all the ways in which the dependent -borrowers are made the chief sufferers, to gratify an undue propensity -of the lenders to accumulate. - - A DEFAULTER. - -And I will only add what is well known here, as a warning for the -future to those whose avarice outruns their integrity, that these -banks, like the repentant harlot, have long since “wept by the -willows,” for their departure from their first love; and the only -thing I know against their present government or officers is, that -the president of one of them, in paying over about one hundred and -fifty millions of dollars, was detected by General Jackson in being a -defaulter of eleven cents, but as the general could not tell exactly -where the default lay, he escaped all other punishment, but the natural -one of being removed from his office, to make room for others; who, if -they were in default at all, would make it sufficiently palpable to -avoid the necessity of searching out these contemptible digits. - - - - - CHAPTER V. - - HISTORY OF A DEFALCATION. - - -On meeting my friend again to day, I was as much amused as ever with -his humor, in describing a public defaulter. And as he makes his own -reflections upon it, I will without farther preface give his own words, -as near as I can recollect. - - PUBLIC DEFAULTERS HONEST MEN. - -“When we parted yesterday” said he, I was speaking of defaulters. The -history of a public defalcation, beginning with its inception, and -carried through its “rise and progress” to a final developement, is -full of amusement and instruction, and if more thoroughly understood, -the public mind would be disabused of its prejudice against the -innocent authors of them. A public defaulter, is the most honest man -in the world. If any other proof were necessary, there is abundance at -hand. But the law of the land declares all men honest, until convicted -of guilt, and its argus eyes would surely discover the truth, if it -were otherwise. The history of the country gives no instance of a -defaulter ever being tried, or committed. A public defaulter, is a true -republican, an advocate and supporter of the people’s rights, who scorn -to be controlled by laws, not of their own choosing. He is in favor of -the distribution of surplus revenue, and he takes the best and shortest -method to accomplish it. He saves congress the trouble of legislating -about it, and the people from quarrelling about its appropriation. He -is a public benefactor, and distributes his wealth without stint to the -poor, especially if they have a vote to give; provides accommodations -for public meetings, at his own expense, is a leader in their debates, -a firm supporter of the government, a liberal supporter of trade, a -patron of the arts and sciences, and a leader in fashion. He promotes -the interests of commerce, and sustains stocks, in his untiring -efforts to make up the deficiencies, which his liberality has created, -and when he has done all the good he can here, he goes abroad at his -own cost to acquire new treasures of knowledge wherewith to benefit his -countryman. - -The baseness of ingratitude, and the malice of envy, could never be -more manifest, than in the persecution of such a man. Yet, how strange -it is! There are some men living, who do not hesitate to heap calumnies -on his head. But if we go strait onward, those prejudices will soon be -done away. The frequent occurrence of default in this age proves its -enlightened character, and that intelligence is fast dissipating the -benighted superstitions of ignorance. - - THE TRUE LIGHT. - -The people of Wall-street, are more enlightened in this matter, than -the croaking herd of business men, and property owners are, who are -always afraid of being taxed to make up deficiencies. They regard -such a thing as the husbandman does the rain from heaven, watering -the parched earth, causing verdure and blossoms to spring forth, in -all their beauty, and timely fruit to satisfy their hungry souls. And -when the wisdom of government is exercised, in the appointment to the -emoluments of office, and the care of public monies, of one of their -true friends, who is ready to sacrifice every thing, even his “sacred -honor” to promote _their_ success, the event is hailed with little -less than a bacchanalian triumph. They know their men, and they know -enough of human nature to know, that, he who has once been a stock -gambler, will be again, as soon as he has the means of becoming so. -And, although they may have plucked him to his last pin-feather, and -then left him exposed to the cold frosts of a world’s charity, as soon -as his commission is in his pocket, their respect and gratulations know -no bounds. - - MORE OF DEFAULTS. - -A public default, is a thing which seldom stands by itself. There are -many inwoven secrets, which do not meet the public gaze. The first -stimulating cause,—the arts to prevent disclosure, and the natural -sympathy between the friends of the appointor, and appointed, are -rarely scanned. When truth bears rule, and honest men are in power, the -checks, and balances are such, that one alone would not long maintain -his secret. And as this seldom happens, the next point of wisdom is, -when disclosures are made, so to arrange matters, that the crimes of -all may be visited on the head of but one; and he, instead of suffering -by the unrelenting knife, and having his carcass roasted on the altar -of sacrifice, may, like the scape-goat of the Mosaic law, be turned -into the wilderness, to bear all their sins beyond the camp. - - JACK DOWNING IMPLICATED. - -I cannot better describe to you, the beginning and conduct of a -great default, than by reading a detected letter, from a notable -correspondent of General Jackson’s, who, from his great personal -intimacy, could not have failed to know the truth. - - JACK’S LETTER TO —— - -Perhaps, as this letter somewhat implicates, the redoubtable major in -an infidelity to the bank, and the government, should it ever come -to his notice, he may insist that it is “Kounterfit;” but as it was -by mistake, inclosed in a package, and directed to a friend, by the -first recipient, when he was leaving in haste, I have no doubt of its -genuineness. And as the major’s fortunes are known to have risen nearly -in inverse proportion to the fall of the bank, and Apalachi lands, -even his friends will find it difficult to disbelieve it. Never having -had an opportunity to return this letter, I make it public now, that -justice may be rendered to all the parties. - - _Washington_, 1835. - - To squire S—— - in New-York. - - DEAR SIR. Your letter to the ginral, was received in Washington, as - quick as the mail could fetch it. As soon as it got to the P. O. here, - Amos Kindle came right over to the white house with it, and says - he—“Ginral, here’s a letter from York, and I raither guess—there’s - some news in it.” As soon as the ginral took the letter in his hand, - he knowed by the outside, that it was from you. The ginral is plaguey - cunnin, and he knowed as quick as a weazle’s scent, that Amos wanted - to find out what was in it. So, says he to me, major, says he, these - ere friends of Mr. Van Buren in York, pester me amazinly. And then - he laid the letter down on the table, and lit his pipe, and went to - talkin politics. And it warnt long afore he drove Amos away, by tellin - a story about a man, who turned traitor to his patron. The ginral all - the time meant Mc Lane and him, but he told the story so cutely, that - it suited Kindle and Clay, just as well. As soon as Amos was gone, - says the ginral to me, says he, “Major”—now we’ll read this ere - letter from Swartwout. That Kindle, “says he,” wanted mightily to know - what was in it, but though he’s sharp as a needle, it wont do to trust - him with secrets, unless he has a hand in making on em; and then we - read your letter all over, backwards, and forwards, side ways, and - cross ways. And when we got through, says the ginral to me, says he, - “Major, this ere letter is amazin puzlin.” - - GENERAL JACKSON “RILED.” - - He was considerable riled; and says he, major, this looks mighty like - your game of hocus pocus, that you larnt me to play with the cups and - balls. What does Swartwout mean by being flunked? Why says I, that’s - a Wall-street word, and means that he has been outwitted, in tryin to - make up the money he was behind. And the ginral riz right up, and says - he, major, I knowed Swartwout in New Orleans, in Burr’s time, and I - know he’d stand a shot with every one of them fellows in Wall-street, - as quick as he’d wink, if they tried to play hocus pocus with him, so - dont tell me any more of your stories, major, and as you know, says - he, that to-morrow morning I’m off to the rip raps, you must send - Swartwout an answer, but remember, for by the Eternal,[4] and then he - ketched off his specks with one hand, and he smashed the other hand - down on to the table so, he broke his pipe in ten thousand shivers, - and his eyes looked like coals of fire, and I looked round to see if - the door was open, and just then Woodbury came in, and the ginral, - was quiet as a lamb in a minit. But I warnt in sorts to talk about - the treasury then, so I went to bed, and the ginral he was off afore - day-light this mornin. - - HIS PASSION—AND OPINIONS. - - The ginral always said you did right in payin for printin things agin - Biddle and the bank—because says he—as you say major, what is sass - for goose, is sass for gander, and the only discounts, I’ve lately - heard tell on by the bank, is to pay for printin things agin us. When - he was in York, he was a good deal consarned to know that you had been - obliged to take money, that ought to gone into the treasury. And I - raly believe, if it had’nt been for that, he never would have moved - the deposites, without Congress to back him. But when I tell’d him - that you could make it all up, and three times over by speckilation on - the money, he was as chipper _as a bird, and says he, major_, seein as - the deposites are moved, we can play them double game. - - JACK AT THE BOTTOM OF THE MISCHIEF. - - In respect of the loss you made, by the bank stock, that I recommended - you to buy of my cousin Zekiel Bigelow, in Wall-street, I did’nt tell - the ginral any thing, because the deposites bein moved that proved a - bad spickilation. But in respect of the Apalachi land co., I advise - you to vest more largely, for the ginral says, that if I think best, - he’ll establish a knavy depo there, and then it will be worth double. - - J. DOWNING, MAJOR - 2nd brigade. - - CAUSE OF JACK’S DISGRACE. - -It is proper to observe here, that the major was the owner of the -stock above alluded to, as sold by his cousin, and that he was also a -director and proprietor in the Apalachi land company. He was never -publicly accused of being either a coward or janus faced, but his -confession in this letter, with the unraveling it gives to the default, -lays him open to the charge of both; for it seems that, while he was -professedly the firm supporter of the bank, he was speculating on its -stock, based on the expected removal of the deposites. And while the -defaulter was consulting with his patron, how to get out of a dilemma, -into which his personal devotion had led him, he was “flunked” by the -major, his patron’s confidential adviser, in a “spickilation” which he -had recommended to him as a means of relief, which made his situation -much worse. And when we consider, that these things were done in the -face of General Jackson, who was deeply interested, and his most -devoted friend, we cannot wonder that the major looked round to see if -the door was open, nor that he was shortly afterwards relieved from his -high responsibilities. - -Although the characters of public men, are public property, they should -not be sported with, too rudely, and it is to be hoped, that for the -honor of the major’s past reputation, he will be able to clear his -skirts of this. - - NON PLUS’D. - -When the defaulter found himself deceived by the major, and his -Wall-street operations all going against him, and he thereby involved -in still greater pecuniary embarrassment, his soldier like spirit was -roused within him, and as the general said, he would have “stood a shot -with every man in the street, if that would have relieved him from his -difficulties.” But he had been long enough there, to know that cold -lead, although the heaviest of metals, was in fact but the lightest -kind of argument, and his discretion, the better part of his valour, -discovered to him, that if, among them all he should chance to meet a -good shot, and himself receive a quietus, it would establish no truth -but that of his real condition, and default. When this truth stared him -in the face, he is said to have uttered horrid imprecations, and with -alternating curses and relenting, to have bewailed his fidelity to his -long loved friend and companion in arms, the general. - - A GOOD FINANCIER. - -Not that the general ever prompted him to such acts; they were -volunteered by himself, out of pure love, from old companionship, and -he never thought of the wrong, much less of his inability, to pay -his expenditures, until the fatal truth was pushed upon his notice. -How could he think of such a thing, when money was flowing through -his hands, like water through a mill-race? how could he tell that -there would be a balance against him? he had never kept an account -in his life, nor even examined one. He was too liberal to be exact. -When his shoemaker presented his bill, he looked at the foot; and if -money was in his pocket he paid it, and if not, he kicked the impudent -fellow out of the house, if he presumed to urge his suit, by any -word of expostulation, or plea of necessity. It was unsoldier-like, -and ungentlemanly to be exact in any thing, but the point of honor, -viz.—if a man should say his coat was brown, when he knew it was -black, call him out, and settle the truth by an exchange of shots. - -And here I cannot forbear the remark, that, when government wants -soldiers, they should look for fighting men. When they want judges and -attornies, they should seek for those learned in the law, and when -they want some one to take charge of financial affairs, they should -seek those whose habits of exactness, promptitude, and experience in -finance, give them some fitness for the duty. - - IN A DEEP STUDY. - -But the die was now cast with the defaulter, and no repentance could -make atonement to offended justice. Thus far, his attempts to relieve -himself from the first deficiency, had not only been unavailing, but -had led him deeper into difficulty. Something more must be done, or the -fatal hour of disclosure must come. The general would soon lose all -patience, as well as all confidence. Should he implicate him, and clear -his own skirts? No—that thought was too repugnant to his honorable -feelings, it would be unjust, for if the general knew his default, he -had no hand in creating it, and if, he allowed him time to escape its -consequences by retrieving it, it was the kindliness resulting from old -associations. It was his own want of prudence in the first place, and -of skill in the second, that placed him where he was. But something -more must be done. And what should he do? The finale of his Apalachi -land stock, was not yet realised; he thought well of it—he thought -well of all land speculations. Yes, the landed interest, must, in this -country, as in every other, in time, become the wealthiest—cities were -springing up every day—fortunes were made in a moment—there could be -no loss—the land would not run away—the Wall-street sharpers could -not “flunk” him there. - - RESOLVES—AND GOES AHEAD. - -Yes, he’d try a land speculation, east and west—honest man!—he -never thought how much easier it was for one of these landlopers, -to make a city in the woods on paper, than to be at the trouble of -cutting the timber all down, and building it up again into houses, -stores, churches, and academies. And that even a flowing river with -beautiful falls, and “mill privileges,” with fertile valleys skirting -its chrystal waters, could be made, where nature had never taken -that trouble, in a thousandth part of the time that De Witt Clinton -could make a sluggish canal. In short he wanted the experience, which -has proved these Yankee land speculators to be the genuine breed of -land-sharks, which sailors so much detest for their cunning, and -voracious propensities, and who, to use one of their own descriptions -of themselves—“are as much sharper, than a Wall-street sharper, as -a Wall-street sharper, is sharper than a needle.” But the decision -once made by the defaulter, his practice was to go ahead, and he -usually left out the preliminary of the renowned Crocket, as implying -a disagreeable necessity. If he was _not wrong_, he _must_ be _right_, -was the result of his logical reasoning; and certainly, no more -self-evident conclusion was ever drawn from premises. - -With the accuracy of judgment, therefore, which might be expected -in such a case, he bought lands, to a very large extent, in various -sections of the country, along with the most _respectable_ companies, -and from the handsomest drawn maps he could find. - -An anecdote occurred about this time, which I believe has once got into -the newspapers, but it is too good not to be repeated here, especially, -as it will show to future generations, the value of a clean and -handsomely drawn map—in other words, that it is better to do things -well, than to do them clumsily. - - ANECDOTE. - -The defaulter had in his possession, a title to an old soldier’s -patent, the papers of which had been carried in a dirty pocket book, -and handled with dirty hands, until the location of the patent could -hardly be distinguished on the map. It had been “thrown in to him,” to -bind a bargain with some speculators, much the same as a huckster woman -puts on to the measure too peaches more, when she sees her customer -about to depart. He esteemed it of very little value, and thought no -more of it, until one day a stalwart Yankee, with slouched hat, came -into his office, and, says he, “mister hain’t you got a piece of land -there in Miss-soori, up on the Black river. Yes, was the reply, after a -moment’s reflection.” - - A YANKEE. - -“Well mister, what will you take now, for that are land?” - -The defaulter, who had begun to understand, a little of the mode of -bargaining practiced by these men, answered “a thousand dollars,” -though he would have accepted five hundred. - -“Did you say a thousand dollars, mister?” - -“Yes.” - -“That’s raither high. Jest let me see them are papers, mister.” - -The papers were handed to him, and, after being critically examined, -and found to be all right, the Yankee, still holding on to the papers, -from fear of not being able to bind his bargain otherwise, asked— - -“Won’t you take no less, Mister?” - -“No.” - -“Well, I’ll take it, just make me the title.” - - COME OVER BY A YANKEE. - -The title was made out, and the money paid, when the defaulter, -surprised at the bargain, asked, “what did you buy that land at such a -price for? I would have sold it to you for half the money.” - -“Why,” said the Yankee, “there’s a darned good lead mine on it.” - -“There is, eh!—how much is it worth?” - -“Well, I don’t know, but I’ve dug out ten thousand dollar’s worth -a’ready, and I expect to get a great deal more.” - -“The d——l you do?” - -“Yes—good bye, Squire.” - -Report says that this was the only valuable piece of land the defaulter -ever bought, and that this was all the money he ever got back again, -from all his investments. I have even heard it whispered that this -same Yankee was one of the speculators concerned in making the large -sale to him, in the first place, and that the “throwing it in,” was -but the cast of a die, to bind a profitable bargain, trusting to their -ingenuity to get it back again; and, having cheated him at any rate, -whether they should get it again, or not. - - DOCTRINE OF CHANCES. - -A mind as cool, even, as the defaulter’s, could hardly retain its just -balance, under such accumulations of misfortune, and accordingly, we -find him sometimes afflicted with gloomy forebodings of the future, -sometimes brooding over the disappointments of the past; and always -taking that course that will lead him deeper into difficulty. - -Whether it is right or prudent for a man involved in embarrassment -to attempt to relieve himself by a single coup de main, may be a -very fruitful theme for those who like to calculate the doctrine of -chances; but, in my opinion, a chance, which may be operated upon in -so many ways, as may the rise or fall of property, or the success of -speculation of any kind—and, instead of being governed by any such -natural laws as may be supposed to belong to chance, wherein the -_aggregate_ results must be always the same, although we do not know -before hand how they will come up particularly, is overruled and -affected, more or less, by the changing opinions and volition of almost -every one in the community—deserves not the name, even of chance, -and, in my opinion, involves the certainty and necessity of failure. -And, although such a thing hath been as success in this way, yet all -my experience goes to show me, that the “chance,” so called, is not as -one in the hundred. The fact that a man is embarrassed signifies, also, -that he is unable to control his affairs, and, if he cannot control -them in the state they are, their expansion, out of his legitimate -course, will not help him much. - - TRUE SECRET OF SUCCESS. - -I believe every successful man will tell me, that the secret of his -success has been, the preserving this ability to himself; and my own -experience has shown me, that whenever the case is otherwise, one -not only has the caprices of chance against him, but the caprices, -cupidity, and contrary interests of his fellow men, to contend with, -and the sooner he comes to a stand, the better for himself, and his -friends. These reflections are not suggested by a default, when viewed -in any other light, than as a pecuniary embarrassment; and, in this -particular, they are alike applicable to all embarrassed men. - - DEFAULTER IN DESPAIR. - -When men, for insufficient reasons, have raised their hopes too -high, their disappointment commonly brings with it a corresponding -depression; and so with the defaulter—he now despaired. But let me not -be understood that despair took away his appetite; far otherwise—there -was no sickliness in his despair. He merely gave up all hope of being -able to save himself from that very small modicum of attainture -to his honor, which is comprehended in the name of a defaulter; -and, as despair, in all its shapes and degrees, is always rash and -unreasonable, he is said to have given himself up to an unaccountable -fondness for those fashionable, yet too animating amusements, where -gentlemen are supposed to stake largely. Here he met many pleasant -companions, but among them, one particularly, a public functionary, -who, although he had met him every day for years, in his attention to -the duties of his office, he never before esteemed his acquaintance -to be a jewel of such Price and value as he now found it to be. An -intimacy of course grew up, which led to the denouement that must form -the conclusion to this chapter. - - FINDS A FRIEND. - -This friend of great Price had every requisite of character for a -gentleman. He would eat heavy, drink deep, and play high, and not the -least of his accomplishments was, that he had no respect, whatever, -for the character of Joseph, as claimed by the Hebrews. To add to his -value, as a friend, these excellent qualities were made more seductive, -by an agreeable exterior, and manner. He was also a man of business -withal, and never gave more than an occasional hour of relaxation, to -those refined pleasures. - -As they chatted, and talked, and drank together, the defaulter -sometimes looked at him with unmingled pleasure, sometimes with -feelings akin to envy. What would he not give to possess the quiet -and unruffled mind and temper of his friend? to be as free from any -danger of exposure—from the haunting, disturbing influence of self -accusation. Alas! the first step from the path of duty inevitably leads -to ruin, unless immediately retraced. - -Sometimes the thought would arise in his mind, “Is it possible that, -like myself, he comes here as a relief to his burthened spirit?—to -seek a solace for the cares of an anxious mind!” He banished the -thought at once; but who is there that has not often found these random -suggestions of thought were in fact the premonitions of truth?—and to -this fact we are about to come. - - BOTH IN THE SAME BOX. - -One night, when the stakes had run high, and were swept by their -opponents, and the two friends had set themselves down to the solace of -their wine; and its inspiring qualities had heightened into extacy the -love that glowed in the bosom of each, with that mellow frankness which -wine always inspires, and the longing which friendship always feels, -to make its loved object the co partner of its cares, the defaulter -whispered in the softest accents, “Bill, I am ruined—the money I lost -belongs to the Treasury.” - -“So did mine!” was the full and sonorous response. - -Had the thunder-bolt, which Abdiel let fall on the crest of Satan, -struck the defaulter, he could scarcely have received a greater shock, -and almost like the arch-fiend— - - Ten paces huge he back recoiled; - The tenth on bended knee. - -But, recovered in some degree from the shock, the friends were both -astonished at their own imprudence, and, shaking hands, they separated -for the night; the one to go home and ponder his lot, the other to -regret his folly. - - THEY TAKE COUNSEL TOGETHER. - -But the disclosure had been too mutual to rest here—something must be -done for their protection. It could only be done by concert, for each -had the power to ruin the other, any moment; and, as a result of this -necessity, it was the part of wisdom to extend their mutual confidence. -If both could not be saved, one of them might. The government was -passing into new hands, new interests would arise out of it, new -applications would be made for office—perhaps they would both lose -theirs. If they did not render their accounts promptly, they would be -suspected, and lose their offices of course. They must, therefore, work -speedily. - - THEY ABSQUATULATE. - -But the day of retribution always comes sooner than we expect. The -government _had_ changed hands—new interests _had_ arisen—new -applications for office _had_ been made. They _had_ become more than -suspected, before they could possibly arrange, out of the chaos of -their affairs, and the wilderness of their crimes, any such jumbled up -accounts of interchanged receipts, costs, &c. &c., as could save even -one of them. And, as a consequence upon the unfaithfulness of their -friendship, they were both compelled to fly in disguise and disgrace, -from the presence of their countrymen, and from the joys of home. - -And now, if I have not given a true account of a default which -cost the government more than a million of dollars, solely in -consequence of a few thousands wrongfully spent in the first place, -for electioneering purposes—if this account does not prove the total -unfitness of gambling politicians to hold offices of trust—and if -these circumstances will not apply in more quarters than one, public -and private—it is because my powers of description are feeble, and not -because the truth is wanting to establish these facts. - -FOOTNOTE: - -[4] The secret of the major’s disgrace at Washington has never been -publicly known. But this passage of his letter, taken with the results -of his subsequent advice to the defaulter, and his almost immediate -discharge from employment afterwards, leave little doubt as to the -cause. - - - - - CHAPTER VI. - - SHOWING WHAT A PANIC IS—ITS CAUSES—ITS BEGINNING—ITS ADVANTAGES, - AND ITS CONSEQUENCES.—WITH THE AUTHOR’S LEAVE-TAKING. - - -A panic is one of those things in nature, which have existence without -entity—something which may be felt, but can neither be traced nor -followed. It has the power of motion and flight exceeding that of all -cognoscible beings—for it can pass from city to city, on the wings of -a single rumor. It has the power of making itself invisible, and can -stalk through the streets in the day time unseen, frightening every -body by its presence. It has the advantage of Archimedes’ lever, for -it has a fulcrum in the credulity of the man; and you may easily turn -the world upside down with it. It is, in fact, a kind of moral element, -and, like the fire, a single spark may kindle into a conflagration, -which the whole nation cannot extinguish; and it must be left to go out -of itself, when it has no more fuel to nourish it. It may be called -forth by a whisper, but a multitude cannot bind it. It is, therefore, -one of the most important of agents, but like fire also it is dangerous -to handle. It is a very good servant, but a very hard master, and -sometimes consumes those who kindle it. - - A PANIC—WHAT IS IT? - -The causes of panic, must not be sought for among natural phenomena—no -science of alchymy is necessary to compound it. It may be made up of -truth, composed of falsehood, or combined from both. It may be produced -by hatred, jealousy, or envy. It may arise from curiosity, or the love -of the marvellous, or, from a more villainous cause still, the desire -to profit by its effects. And with this knowledge of its causes, if men -were wise, they would give less heed to it. - -The beginning of a panic in a small country town, is usually indicated -by the doctor’s riding through the village, without stopping to -recognise his acquaintance, or an old woman hastily putting on her -shawl, to run across the street to her neighbors. - -What could it be for? says one. - -Sure enough _what could_ it be for? says another. - - A PANIC IN THE COUNTRY. - -Don’t you think there is some bad disease about? says a third, and -before long, the interrogatory assumes the shape of a declaration, and -if not explained, and in less than a week, half the people of the town -are sick, through fear that they may be worse. - -What is Mrs. Toddle running about the street for? says one. - -I expect she has gone to enquire about the school mistress. Says -another. - -I expect the school mistress will run away with that fellow yet, says -a third, (she ran away once herself.) And before the week is out, the -whole neighborhood is in a panic, for fear the school mistress should -run away, and their dear daughters be corrupted, by her example—while -the innocent subject of their fears is attending to her duties, all -unconscious of the commotion she has occasioned. - - PANICS AND PANIC MAKERS. - -In great commercial cities, a panic is a different thing, and first -indicates its approach in a different way. The subjects to which it -generally points, are politics, and money, chiefly the latter, and -never the first, except as it may have a bearing on the last. Like -great and pestilent diseases, it generally has premonitory symptoms, -which commonly exhibit themselves in plethora, and a wasteful -indulgence in luxury. And like those diseases also, it never attacks -or alarms those of regular habits, and an equal mode of living. In the -city there are regular panic makers! some of them work on their own -account, as Donald said he fought, when it was found that he had killed -more of his own clan, than of their enemies—and some of them work for -hire, as the penny-a-liners do, in fabricating marvellous stories; and -hence the opportunity and inducement for making panics in the city, far -exceed those in the country. - -Political panics, and money panics, are like electric bodies, one is -positively charged, the other negatively, and the effect of this kind -is, that when they approach each other, they produce an explosion, like -the breaking of the Banks, &c. These are properly termed compound. A -simple panic is more harmless, and like the Simoon, if a man can stand -still, and hold his breath, it will pass by without harming him. - -There is also another kind, called natural panics. These are such -as sometimes happen in churches, theatres, &c.—and, although they -have nothing to do with the subject about which I am writing, yet a -description of one of them may aptly illustrate the reasonableness of -the others. - - NATURAL PANICS—A RUSH. - -When I was a young man, I went to a popular lecture in an old wooden -church, which was very much crowded. During the service, as it appeared -afterwards, some boys without, threw a handful of small gravel stones -against the clap-boarding of the house, which made such a rattling, -that a general rush took place, and the church was tenantless in less -than a minute. Imagination pictured to some the tumbling walls. The -noise of the rush, stunned every one. Some smashed the windows, and -leaped to the ground, others, and some of them females, impatient to -reach the door, and as they supposed a place of greater safety, strode -over the heads of the dense crowd, making the most grotesque figures -imaginable. Some were trodden down, but none were killed; and when -all were safely out, with the exception of crushed hats, torn shirts, -sore bones, and lost reticules, the enquiry began to be made, what has -happened? I don’t know says one. Did you see any thing? asked another? -No—did you? No—Nor I, said a fourth, and a fifth—and when all were -satisfied that nothing had really happened, except a fright, they -began, one by one, to approach the house again, and cautiously peeping -in at the door, lest the walls might suddenly tumble about their heads, -they saw the light burning brightly, and the honest clergyman sitting -in his desk, the only man in the house, convulsed with laughter, at the -fright of his late audience. - -And so, when a panic comes in Wall-street, if any man will take a -position, a little above the heads of the multitude, where he can see -their folly, he may safely enjoy a hearty laugh, instead of suffering a -fright. - -A money panic, in the city, sometimes begins with a mere question of -doubt, as, what do you think of the condition of the banks? and this -question, handed from one to another, assumes new shapes, and gathers -strength and importance as it flies. - - A MONEY PANIC. - -Sometimes, it begins with a rattling noise, like the movement of -specie, upon which the panic makers immediately conjure up the ghost -of an earthquake, that is about to take place. Sometimes it is the -price asked, or the refusal of a broker to buy a foreign bank note, -for which he has no current money to give in exchange, which runs from -mouth to mouth, and from hand to hand, until half the people in the -town think their bank notes are worthless; and they will put them off -for apothecary’s physic, rather than keep them. And sometimes it is the -mere sympathy of suspicion, when every man suspects his neighbor to be -in possession of some secret, which he is not. And all, or any one of -these causes, is sufficient to make three fourths of the population of -the town tumble over each other in fright, while the rest laugh, and -scramble after the loose coppers, which they may let fall in the fray. - - HOW IT WORKS. - -When a panic proceeds from any matter of fact, it is commonly such as -this. The bank turns away some bad customer, who then spreads a report, -that the banks are “very short;” when, immediately, every one applies -for twice as much as he wants. In Wall-street phrase, “The offerings -become very large,” and then they all fight and jostle each other, to -see who shall stand first at the counter. - -These are the incipient stages, which follow the first symptoms. Its -increase is only a multiplication and enlargement of the same things; -but when it is at its height, there is the greatest fun and fright, -frolick and fight, imaginable. But as I cannot get up a pantomime show -on paper, I will only relate a few anecdotes of actual occurrence, by -way of illustration. - - MONSIEUR IN A FRIGHT. - -In the panic of 1837, a merchant of high standing in Broad-street, -was indebted to a son of Johnny Crapeau, in the sum of three thousand -dollars, money deposited with him on interest. One morning, while the -merchant was busily engaged in his correspondence, Johnny came in in -great trepidation, and announced the object of his visit, by saying; -“Monsieur, I ver much want dat moneys _que vous me devez_.” - -Ah! I thought it was to remain, we have paid you interest for it, when -it was of no use to us. - -“Eh! mon Dieu! I shall lose.” - -“If you are alarmed for its safety, we have no objection to paying you.” - -“Sare, I must have.” - -The merchant directed a check to be drawn, for the principal and -interest, which he handed to him, with a receipt for his signature. - -“What is dis, monsieur?” - -“That is a check for the money.” - -“Den you pay?” - -“Yes, you demanded your pay.” - -“Eh! monsieur, (handing back the check)—I was alarm. If you pay, den I -dont want. If you no cant pay, den I must have.” - - FOLLIES OF A PANIC. - -Another instance quite as reasonable, and of equal notoriety, was a -French gentleman of respectable property, entirely out of business, and -out of debt. His sympathies were so much wrought upon, by the reported -distresses of the community, that he began to be alarmed for himself; -and accordingly applied to his bankers for a loan, which being granted, -he suffered the money to lie on deposit: but his excitement growing -warmer, he applied again and again, when being expostulated with by -the cashier, that he did not want the money, and that others did, he -replied, “sare I am afraid dat dis ting will me ruin. Sare, I must have -moneys. I shall starve, if I have not moneys. I must have de loan.” His -request was complied with, and when the excitement was over, without -ever having drawn a dollar from the bank, he paid his debts with the -loss of interest, and the gain of a good deal of mortification. - -These are some of the follies of the panic. The villainies also deserve -some notice. - - VILLAINIES THEREOF. - -A notable whig, and a friend of the banks, who thought nothing so good -as bank notes, so long as their circulation yielded him interest, is -reputed to have borrowed all he could, and then to have drawn the -specie, which he hid away in his cellar, and stood sentry at the door -himself. Some supposed that he was alarmed for the safety of his -property, but more are of opinion, that his object was, to assist in -breaking the banks, and then pay his debts in their notes at a large -discount. - -But I should trespass too largely on time and paper, to give one in -a thousand of the instances which may be cited, and I will therefore -illustrate the truth, by relating a few of the exploits of a notable -individual. - - A CASE IN MORALS. - -Mr. S. was a merchant of wealth and large business. Mr. A. his -debtor, was erroneously reputed to have failed, and being angry and -grieved withal by the slander, he went to his friend S. for advice -and consolation, and told him that so far from having failed, with a -very little sacrifice, he could pay all his debts on demand. Mr. S. -always governed by that cunning, which supreme selfishness and want -of principle dictate, advised his debtor to make the sacrifice, and -advertise for his notes, to be brought in for payment, as a means of -substantiating his credit beyond all doubt in future. His advice was -followed, and it so happened that Mr. S.’s was the first note sent in; -and report says, moreover, that having enquired of A., to whom he was -indebted, he went to the persons before the advertisement appeared, and -bought A.’s notes at a large discount, and sent _them_ in also. - -This same gentleman had many customers in his business, and of -course many debtors. Their notes were always lodged in the bank for -collection, and when some of his customers came to him for partial -aid, to help take them up, his reply was, that he had no money to lend; -but, said he, “you can get the money for my note, and I will lend you -that for the ordinary commission of 2½ per cent., if you will secure -me for it.” The security was willingly given, and the customer was -told, if the bank don’t discount the notes, the brokers will; and as -soon as the customer was gone, instructions were sent to the brokers, -“if such a note appears, buy it for me at double rate of interest.” He -usually got possession of his notes again in this way, for be it known -that he was a director in the bank, and to add to the virtue of his -liberality, the money which should have been lent to his customers in -the first place, was lent to himself, with these views and for these -purposes. - -I know not under what class of morals you will place this kind of -sagacity, but in Wall-street it is denominated “shrewdness,” and adds -greatly to one’s respectability and consequence. - - CHARACTER IN, AND OUT, OF WALL-ST. - -But that you may not be deceived in your judgment, I will go farther -and say, that what makes a character in Wall-street, does not make one -out of it. Here the standard is money, but elsewhere, it requires some -other ingredients to arrive at any level much above the lowest; and a -man destitute of education, intellect, genius, principle, morals and -religion, (though last here, yet not least,) can hardly arrive at a -condition of respectability, much beyond his own conceit of himself. - - MONEY, KNOWLEDGE AND HONESTY. - -I never knew such a man as Mr. S., who was not deficient of education -in every thing, except how to get money. The sum of his knowledge -is limited to the first rule of arithmetic—addition; and although -his wealth and credit may enable him to enlarge the sphere of his -observation, still, it is all brought to the same practical use, -addition. - -Such a man always owes his little elevation to one of two things, to -fortuitious circumstances, or to his own villainy; and his mind is -incapable of appreciating any higher standard of morals than his own. -As I once heard one of them say, (inadvertently no doubt, but yet -in the honesty of his soul) when another was recommended to him for -credit, on the ground of his honesty, he replied, “a very good thing -for the owner, but a very poor commodity in the market.” - - SOMETHING BY WAY OF CONTRAST. - -It is not against the people of Wall-street, or Pearl-street, or -South-street, or any particular branch of business that I would be -understood to aim the bitter shaft of sarcasm, but against those -individuals of known delinquency, and against those principles and -practices, which have, of late, obtained a tolerance that, in times -gone by, would not have been suffered. And were it proper for me to -do so, by way of contrast, I would here sketch a portrait of some -among the many I know, who hold a just balance, and the even tenor -of their way, whether in peace or in panic; but I could not do it -faithfully, without pointing too clearly at those who have no need of -my commendation, and who would choose that their reputation should rest -on their own unaided merits. - -Perhaps you have already anticipated some of the advantages which may -arise from a panic, but my description would be incomplete, were I to -omit to sketch a few of them. - - ADVANTAGES OF PANICS. - -The spirit of our institutions does not admit of the concentration or -entailment of property. And here, if a man has property, and will act -honestly, he need not wait the term of his mortal existence, for his -children to ruin themselves afterwards, by spending it. He can ruin -himself, and them too, by simply placing himself in the vortex of a -single panic. But, on the contrary, if his tastes lead him to choose -the former expedient, this affords him an ample field, for no scheme -can be devised better calculated to make the rich richer than this is. -It places the dependent debtor wholly in the power of the creditor, -and he may take his pound of flesh with interest, without extracting -a groan or a sigh from his patient. Nay, he will rise up from the -operation, and thank him for not taking two. A panic, then, serves -to hasten changes of property from one to another, and thereby acts -in accordance with the spirit of our institutions, which encourages -rotation. - -Its advantages, also, to the separate classes of dealers, who inhabit -Wall-street, deserve each a passing notice. - -It enables the stock-dealer, who has heavy contracts to fulfil, to -complete his engagements at a great profit to himself. It is of no -consequence that what he gains, another must lose; the advantage to -him is unequivocal, and, accordingly we find that these gentlemen are -great panic makers on their own account. - - WHY SOME MEN LOVE PANICS. - -It enables exchange dealers to demand double rates on all distant -places, and, although the effect is to reduce the value of all debts -due from those sections to citizens here in the same proportion—yet, -_he_ is benefited, and if people will not pay him his rates, they have -the option to go and collect their money themselves. The greater and -the more frequent the panic, therefore, the better for the exchange -dealer. It also enables those Banks which have a speculative turn, -to divert their capital from the paltry business of discounting, -to speculating on their customers’ wants, by becoming dealers in -exchange. It greatly increases the profits of the Bank-note dealer, -by enabling him to increase the rates of discount, and one peculiar -beauty of his business is, that the more discount he asks, the more -ready his customers are to sell. This class of dealers are deserving -the particular regards of the country Banks, since _their_ interest -advances exactly in proportion as they can discredit them. - -I have passed hastily over all these classes, although the ways -and means by which each one of them contrives to turn a panic to -their advantage, contain a fund sufficient for a long evening’s -entertainment. But my descriptions are not intended to be wire-drawn, -and, besides, I wish to leave room for future lucubrations, without the -necessity for gleaning too closely. - - CONSEQUENCES OF PANIC. - -The consequences of a panic are those portions of it which “may be -felt;” and they begin to be felt, when people begin to count their -losses, I have before said that a panic was like fire, and the simile -holds good, except in one particular. The fire destroys—the panic only -changes property. In both cases people are prodigiously frightened; -many wounds and bruises are received, and not a few are driven from -their business, and made houseless, and homeless. In the panic, as in -the fire, also, there are both incendiaries and thieves, and it is a -matter of doubt, which requires the most vigilance to protect one’s -self from. - - HOW TO PREVENT PANIC. - -The scenes exhibited when a pestilence has passed through the -city—bringing suffering and bereavement to hundreds—when a storm -has swept along the coast, strewing its shores with the ships and -the treasures, which the day before floated securely on the bosom -of the waves—when the locusts have passed over the fields, leaving -nothing but the ravages of destruction behind—and when business men -have passed through the ordeal of a panic—are of one and the same -character, with this difference only; the first are events directed -by Providence, which men have not the power to avert, and the last is -the result of their own folly, or the wicked designs of a few. But it -will be said that no single voice, nor even many voices, can control -the multitude—very true; but when a mob takes place, if every man -would go straight about his own business, instead of stopping to join -in the hue and cry—there would be no mob. And if the magistrates -join in the mob themselves, there is no authority left by which to -control it. When a panic in money matters begins, there seems to be a -predisposition in the bystanders, either from want of employment, the -love of story-telling, or the desire of mischief, to aid all they can -in spreading it. - - A WORD TO CERTAIN EDITORS. - -I might add, too, that many newspapers are not among the least, in -bestowing their influence in this way. Some of them wish to appear wise -above their fellows—and I consider it not at all derogatory to the -general character of ability which they possess, to say that, in money -matters, _some_ of their editors really know very little of the things -about which they prate. I believe it often happens that what they -publish, is but the proclamation of those who design to increase the -panic—and if they are to be believed themselves, _some_ of them have -published things contrary to their better judgment, and perhaps their -own knowledge. - -They can all point to the right quarter, and none of them will consider -this a slander, but such as know they deserve it. - -If, therefore, when a panic begins, men would improve what they know -for themselves, instead of giving their neighbors the benefit of what -they don’t know, but have only heard or surmised—If the magistrates, -the leaders and controllers of the money market, would consult -something else besides their own interest, in promoting it, or their -immediate safety, by escape—we should have a less frequent occurrence -of panic. And, being convinced of these facts, every man can easily -understand, and no doubt does understand, what he ought to do in such a -case. - - A DARK PICTURE. - -But I perceive I am getting wide from my subject, and prating about -the causes of a panic, instead of its consequences. If we would follow -these out to their end, we must leave the disorganized condition of -business, and follow men into their secret communings with themselves; -and mark the anguish of despair, the bitterness of cursing and -disgust with their fellow men, occasioned by their blasted hopes—we -must follow them in their principles, and see how many are corrupted -by example, and how many have done their first act of villainy, in -the vain hope of escaping from its consequences. We must follow -them in their morals, and see how many have, by the excitement of -circumstances, lost their self-respect and control. And we must follow -them to their homes, and see the desolation wrought by a sheriff’s -levy, or a bill in chancery, and witness the broken repose, and see the -tearful eyes of loved ones: and then let any one make a levy or file a -bill, or aid in a panic, who chooses. - -But the mind sickens at the picture, and I turn it with pleasure to a -better light, to bring out its now hidden colors. - - ENCOURAGEMENT AND KINDLY ADVICE. - -Every man must have felt, many times in his life, that it is better -to laugh than to cry. In this case, it certainly is, the proverb of -Solomon to the contrary notwithstanding; and among the many who, in -the last few years, have been the victims of panic, not a few I trust -are, by this time, ready to agree with me. Many an oak has been shorn -of its boughs, and lived to withstand a hundred storms; many a ship, -dismantled of her spars, has gained her port,—and floated again as -gallantly as ever; and many a man bereft of his fortune, has lived to -dispense large bounties of charity from his store; many a one too, who -has long fainted beneath the load of his griefs, has lived to command -those who oppressed him. - -Experience is sometimes a very hard, but always an efficient teacher; -and those who have suffered will have the satisfaction to know better -hereafter, who to trust and what to trust, and taught to rely more on -themselves. And if afraid of a panic in future, he will be able to -prepare himself on the first appearance of the “premonitory symptoms,” -and when he sees it coming on the wings of the wind, like the man in -the simoon, he may then safely turn his back, hold his breath, and let -it pass by. At any rate, like the people I described in the church, -he will find himself more comfortable and happy to return, and take -his seat, than to be wandering about in the cold, among the multitude -without, to find out what has happened. - - AUTHOR’S LEAVE-TAKING. - -I have now finished six days in Wall-street, which, by the only book -of Ethics that I have ever learned, are the whole of the week that is -at my disposal. I can hardly suppose that any man in his senses, has -followed me through all the descriptions of truth and villainy, fact -and fiction, sense and nonsense, which I have here given; but if any -one has been so patient, I am bound to take a courteous leave of him. - -First I am bound to thank him for the “high consideration” given me. -And should his better feelings tell him that I am too severe, I only -request him to ponder what is true— - - Nor set down aught in malice. - -But if when he shuts this book, he shall say, amen, he is entitled to -my thanks for his patience and a double congee for his approval. No -one will of course take any thing that is here written to himself, -unless he discovers in it some features of his own portrait, and to -those who can make such discovery, we owe neither apology nor sympathy. - - MORE YET TO COME. - -I have now taken leave of my venerable friend the Chronicler; but -I have no doubt that while he lives, he will continue to visit -Wall-street daily, as he does also some other popular places of resort, -to “catch the manners living as they rise.” And although I shall not -be favored with his oral communications any more, yet he has promised -me the free use of his diary while he lives, and of his manuscripts -when dead, which are said to contain many important histories, not -only of things long past, but also of the current events of the day, -together with many valuable reminiscences intended only for posthumous -publication. - -But should the good people of Gotham, take so lively an interest in -these revelations, as to invite their continuance, by buying this -book, I can not say that such inducement will not call forth another -compilation, from the mass of materials now at my disposal. - - * * * * * - -Transcriber’s Notes (continued) - -The original text contains errors and many inconsistencies in spelling, -hyphenation and capitalisation. The author acknowledges this in a -light-hearted _nota bene_ to the Preface, adding that he “thought it -best to leave their correction to the intelligent and good humored -reader”. - -In that spirit, minor punctuation errors have been fixed. Other -typographical errors have been corrected as follows: - - “bim” changed to “him” (enabled him to slide) - “both-shores of the atlantic” changed to “both shores of the Atlantic” - “ceriificates” changed to “certificates” (bonds or certificates) - “cheqners” changed to “chequers” (like children at chequers) - “esconce” changed to “ensconce” (he was fain to ensconce himself) - “fortuitious” changed to “fortuitous” (fortuitous circumstances) - “He” capitalised (He banished the thought at once; but who is) - “suthers” changed to “authors” (against the innocent authors of them) - “there” changed to “three” (three hundred and fifty thousand dollars) - “two” changed to “too” (the too frequent gorging of stocks) - -Inconsistencies have been fixed where a consensus usage was obvious. -Hence the following changes to the original text: - - “abreviate” changed to “abbreviate” - “Apalache” changed to “Apalchi” - “accomodations” changed to “accommodations” - “Bank-credit” changed to “Bank credit” - “controled” changed to “controlled” - “embarrasment” changed to “embarrassment” - “fancy-stocks” changed to “fancy stocks” - “general Jackson” changed to “General Jackson” - “indorsing” changed to “endorsing” - “land lopers” changed to “landlopers” - “major Downing” changed to “Major Downing” (but “the major”, - etc., used as per American style) - “mastadon” changed to “mastodon” - “Mr. Eaves-dropper” changed to “Mr. Eavesdropper” - “Mr. Single-eye” changed to “Mr. Single-Eye” - “negociating” changed to “negotiating” - “negociation” changed to “negotiation” - “negociator” changed to “negotiator” - “panic-makers” changed to “panic makers” - “post mortem” changed to “post-mortem” - “rail road” changed to “railroad” - “Rail-Road” changed to “Railroad” - “state-bonds” changed to “state bonds” - “stock-holders” changed to “stockholders” - “to-day” changed to “to day” - “United States bank” changed to “United States Bank” (but “the bank”, - etc., used as per American style) - “wholestock” changed to “whole stock” - -However “New York” and “New-York” have been left unchanged as are -other instances of inconsistent hyphenation and capitalisation or -archaic/obsolete spelling. The latter includes colloquial usage in -quoted conversations and correspondence. - -The page headers of the book have been inserted in the transcribed -text as centred section headers placed above the start of an -appropriate paragraph. On pages of the book without any paragraph -breaks it has been necessary to create a new paragraph at an -appropriate location on the page and the page header placed there as -above. This was required at 16 places in the transcribed text. - -Footnotes have been re-indexed using numbers and collected together -at the end of each chapter. - - - - - -End of Project Gutenberg's A Week in Wall Street, by Frederick Jackson - -*** END OF THIS PROJECT GUTENBERG EBOOK A WEEK IN WALL STREET *** - -***** This file should be named 62012-0.txt or 62012-0.zip ***** -This and all associated files of various formats will be found in: - http://www.gutenberg.org/6/2/0/1/62012/ - -Produced by Quentin Campbell and the Online Distributed -Proofreading Team at https://www.pgdp.net (This file was -produced from images generously made available by The -Internet Archive) - - -Updated editions will replace the previous one--the old editions will -be renamed. - -Creating the works from print editions not protected by U.S. copyright -law means that no one owns a United States copyright in these works, -so the Foundation (and you!) can copy and distribute it in the United -States without permission and without paying copyright -royalties. 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You may copy it, give it away or re-use it under the terms -of the Project Gutenberg License included with this eBook or online at -www.gutenberg.org. If you are not located in the United States, you'll -have to check the laws of the country where you are located before using -this ebook. - - - -Title: A Week in Wall Street - By One who Knows - -Author: Frederick Jackson - -Release Date: May 3, 2020 [EBook #62012] - -Language: English - -Character set encoding: UTF-8 - -*** START OF THIS PROJECT GUTENBERG EBOOK A WEEK IN WALL STREET *** - - - - -Produced by Quentin Campbell and the Online Distributed -Proofreading Team at https://www.pgdp.net (This file was -produced from images generously made available by The -Internet Archive) - - - - - - -</pre> - - -<div class="coverimg center-img-portrait"> -<img src="images/cover.jpg" alt="coverpage" /> -<hr class="chap" /> -</div> - -<div class="transnote"> -<a id="top" name="top"></a> -<p class="center bold small">Transcriber’s Notes</p> - -<p class="small">The cover image was created from the title page by the transcriber and is placed in the public domain.</p> - -<hr class="r10" /> - -<p class="small">The eponymous street of the title appears in three guises: -“wall-street” (once), “Wall Street” (twice) and most commonly -“Wall-street”.</p> - -<p class="small">“Mr. Jacob Broker opened an office near the wall-street”, describing the street built -on land where the old city wall was knocked down. His descendant brokers, the author writes, have “since congregated in the region -round about Wall Street”, the name which is also used in the book’s title. In all other places in the text it appears -as “Wall-street”.</p> - -<hr class="r10" /> - -<p class="small">See the <a href="#TN">end - of this document</a> for a full list of corrections and changes.</p> - -</div> - -<hr class="chap" /> - -<h1><br /><span class="x-large letter-spaced">A WEEK</span> -<br /><br /> -<span class="small">IN</span> -<br /><br /> -<span class="xx-large letter-spaced">WALL STREET.</span> -</h1> - -<p class="center small bold p4">BY</p> - -<p class="center large bold p3 letter-spaced">ONE WHO KNOWS<br /><br /></p> - -<hr class="r10" /> - -<p class="center large letter-spaced"><br />NEW-YORK:</p> -<p class="center large">PUBLISHED FOR THE BOOKSELLERS.</p> - -<hr class="r5" /> - -<p class="center large">1841.</p> - -<hr class="chap" /> - -<p class="center small"><br />Entered according to the Act of Congress, in the year 1841,<br /> -BY FREDERICK JACKSON,<br /> -In the Clerk’s office of District Court of the Southern District of<br /> -New-York.<br /><br /> -</p> - -<hr class="chap" /> - -<div class="chapter"> -<h2 class="bold nobreak">TABLE OF CONTENTS.</h2> -</div> - -<p class="hangtoc narrow"> -CHAPTER I.—Introduction—The origin of -Joint Stock Companies, and -Brokers. -</p> - -<p class="hangtoc narrow"> -CHAPTER II.—The History of the Morrison -Kennel—Nicholas the 1st.—A -Stock Speculation. -</p> - -<p class="hangtoc narrow"> -CHAPTER III.—State Stocks—History of the -Morrison Kennel continued—Introduction -of new characters—The -U. S. Bank. -</p> - -<p class="hangtoc narrow"> -CHAPTER IV.—How Stocks are bought and -sold—How Brokers get out -of a bad Speculation—How -money is sometimes made by -doing a losing business—How -Discounts are made and -obtained. -</p> - -<p class="hangtoc narrow"> -CHAPTER V.—The Defaulter. -</p> - -<p class="hangtoc narrow"> -CHAPTER VI.—A Panic. -</p> - -<hr class="chap" /> - -<div class="chapter"> -<h2 class="bold nobreak">PREFACE.</h2> -</div> - -<hr class="r10" /> - -<p>The following pages were written during -leisure hours of the last six or eight weeks, of -which “the times” have thrown rather too many -upon the writer’s hands; and the statement of -this fact, I conceive to be a tacit admission, that -such hours might have been better employed.</p> - -<p>They were originally composed for the writer’s -own amusement; to beguile the tediousness of -otherwise idle time. And not the least motive -for this indulgence was a desire to abstract the -mind from too near a contemplation of the dark -side of that picture, which I have described as a -panic. They were not written in the first place, -with any view to publication, but as each chapter -was successively read in the presence of -friends, and principally for amusement, those -friends at length advised their publication; and -with their advice they have been submitted to -the press, in the original manuscript, almost without -correction.</p> - -<p>The writer has no claims to literary qualifications, -and of course he seeks no reward of -literary reputation. Were it otherwise the reader -would at once convict him of his presumption.</p> - -<p>Those persons who are acquainted with the -business of Wall-street, will be able to judge for -themselves of the truth of the descriptions; and -those who have not that opportunity of judging, -are respectfully requested to consider the reflections -and moralizing, occasionally introduced, as -made in seriousness, and the rest as the truth in -burlesque.</p> - -<p>That there is existing, at the present time, a -demoralised condition of principle, feeling, and -practice, pervading the country throughout, in -regard to pecuniary transactions and engagements, -deserving a severe castigation, will not -I believe be denied by any one; and for the -vindication of good faith and honesty, the writer -could wish that the subject had been taken in -hand, by some one more skilful than himself in -the use of the scourge.</p> - -<p>The proper correction of public morals is public -opinion; but so long as public opinion is indifferent -to the innovations that have grown up, -and so long as pecuniary credit, and the posts of -honor, trust and profit, are so frequently accorded -to the most successful in their negotiations or -their intrigues, without regard to the principles, -or practices, that have placed them where they -are—so long we may expect nothing but the increase -of those mischiefs, of which so many now -complain.</p> - -<p>I confess, that were I to write the same pages -over again, with a view to publication, I would -alter, amend, and expunge much that is here. -But as I am now engaged in something that -will afford more pleasure in its pursuit, and more -profit if attained, I have not time for this purpose -at present. And since the present is a -time, when men’s minds are alive to the subjects -which I have endeavored to bring out in ridicule, -I submit the whole for what it is worth.</p> - -<p>The introduction of vulgar wit may serve to -amuse some, but it is not a passport to men’s -good sense; and, although it may sometimes -make a book sell, it is not, in my opinion, the -best way to convince of the truth. And the only -excuse for indulging in it is, that the subjects of -remark, and the slang frequent in Wall-street, -are not of that character which cultivate the -delicate sensibilities—nor can they be pourtrayed -to the life, by such language or figures, as should -grace the conversation and writings of a gentleman.</p> - -<p>The practice of making a book personal, is, -and ought to be condemned; and, if it is objected -that, in this, I have called persons by their -right names, or pointed too clearly at individuals, -the answer is, that, except in the case of one -martial spirit, the notable Major Downing, -<a id="FNanchor_1_1" name="FNanchor_1_1"></a><a href="#Footnote_1_1" class="fnanchor">[1]</a> -whom I have shorn of a little of his patriotism -and courage, I have in “no instance made allusions -which have not been directly applied, and -treated with much greater asperity, by all the -newspapers of the day.” And this fact, I conceive, -has given me licence, since it would be folly to -wing a shaft of invective or ridicule, if it aimed -at no object.</p> - -<p>The major, I must suppose, will not consider -himself aggrieved, because, from his position, he -was the only person whom I could conveniently -make tributary to the information I wish to -give; and, since he has so often asserted his courage, -without fairly acknowledging his identity, -he has no cause to complain at being assailed -on that point.</p> - -<p>The remark will generally hold true, that -whatever requires to be explained, or excused, -is always wrong; but, in this case, I think -it will not apply. I would therefore be understood -as excusing only the faults of the book, -and not the object at which it is aimed.</p> - -<p>And, lastly, the writer cannot help saying -that, in the face of the trite remark that, -“those who live in glass houses should not -throw stones,” he will not deny, that, in the expressive -language of Wall-street, he has himself -been “flunked;” and, with this candid acknowledgement, -which will, perhaps, satisfactorily -account for the production of the book, in the -minds of those who may please to consider it an -effusion of spleen,—he subscribes <span class="nowrap">himself—</span></p> - -<p class="align-right"> -<span class="right-indent-6em">Respectfully,</span><br /> -<span class="right-indent-2em"><span class="smcap">The Author</span>.</span> -</p> - -<hr class="chap" /> - -<p>N. B. It is perceived that a considerable number -of errors have escaped notice and correction, -in the following pages; but as they affect only -the orthography and the grammar, without detracting -from the truth, or the moral of the story, -I have thought it best to leave their correction -to the intelligent and good humored reader, -rather than mar a page with a formidable list of -errata—except, that, in one instance, as a mere -friendly suggestion, I would request the substitution, -on <a class="deco-none" href="#P129-7">129th page, 7th line</a>, of “<i>stewardship</i>” -for “<i>friendship</i>.”</p> - -<hr class="chap" /> - -<div class="chapter"> -<h2 class="bold nobreak">CHAPTER I.</h2> -</div> - -<p class="center narrow small bold">INTRODUCTION.—THE ORIGIN OF JOINT STOCK -COMPANIES AND BROKERS.</p> - - -<p>As the practice of some readers is to begin in -the middle and read a book backwards, I respectfully -request those who may open here, to begin -at the beginning and read the preface first. In -case of any captiousness of disposition on their -parts, they may thereby save themselves a good -deal of ill nature, and quarrelling with the author. -But if any one is perverse, and chooses to -go on without taking my advice, I will not hold -myself accountable for the preservation of his -temper, nor even of this book; for I am not sure -but he may throw it in the fire, before he gets -through the first or second chapter. But, should -he even persevere and go through, until he receives -my parting “salaam,” still I request him -to turn back and read the preface, that he may -see what the writer thinks of his own book.</p> - -<div class="sidenote">HOW BOOKS ARE WONT TO BE MADE.</div> - -<p>It is usual with authors, in the outset of their -story, to introduce to their readers their Hero and -Heroine, with elaborate descriptions of their persons, -manners, habits, dress, &c. &c.; all of which -is intended, either to prepare the reader’s mind -for the very interesting positions which these personages -are designed to fill, or to amuse those -who are fond of that kind of portraiture. But in -this history of “a week in Wall-street,” there is -neither hero nor heroine, but a great number and -variety of characters, each of whom lives out his -sunny hour, and passes again into oblivion. -Some there are, it is true, who, from a crawling -worm, pass into a chrysalis, and appear to be -dead for a time, not only to revive again with -new life and beauty, but to soar a lofty height -into the world of fashion, and boast the gayest -plumage among those who float on the wind of -fortune’s fickle favors.</p> - -<p>The veritable history of Diedrich Knickerbocker -was not a truer story than is every whit -of this history of “a week in Wall-street;” but alas -for the mutations in all human affairs!—a sad -change has come over the waking dreams of the -inhabitants of this goodly city, since the days -when Petrus Stuyvesant surrendered the government -of Niew-Amsterdam to the conquest-loving -Briton.</p> - -<div class="sidenote">HOW NEW-YORK BECAME SO POPULOUS.</div> - -<p>From that day, when first its name was -changed to New-York, it has not ceased to be -overrun by the stragglers from every country -and clime, but especially by those cunning vagabonds -from Connecticut, and her sister states, -who had well nigh taken in their toils the venerable -Petrus and his jolly trumpeter, Antony. -And they have now trodden down, or overturned, -every remnant of social order, that was so remarkable -in the time of the honest Dutchman. In -one respect, at least, these interlopers seem to be -the favored of heaven—for their seed has multiplied -as the sands on the sea shore; and it is -shrewdly suspected, by some, that the gambols of -the cunning Antony with the lasses of New-Haven, -in his famous journey thither, may have -had some hand in this, since never was a people -known who could blow the trumpet of their own -fame, better than these same descendants from -the colony of New-Haven.</p> - -<div class="sidenote">THE OLD WALL BROKEN DOWN.</div> - -<p>From their love of continual change—which -they call improvement—they had no sooner -gained a footing in the city, than they persuaded -the honest Dutchmen to break down the <i>city -wall</i>, which had hitherto prevented them from -robbing the cabbage garden or tapping the hollands -of the rich burghers, and which, some have -said, was erected partly to prevent their too frequent -solace of themselves with the softer beauties -concealed by close caps and short petticoats. -And they further persuaded them to convert the -ground into a street, thence called “Wall-street;” -which, being the scene of their first victory over -that prejudice which prefers to keep folks honest -when they are so, has ever since continued to be -the focus of all enterprises undertaken for one’s -own benefit, to be accomplished by other peoples’ -means. And it is even said, that the projectors -of this work, in reality, designed only to -gain for themselves unobstructed access to the -good living, and the pretty damsels, of Niew-Amsterdam, -now New-York. Want of means themselves -to perform so great a work, first suggested -to them the idea of a Stock Company, for objects -of public improvement; the principal virtue of -which is, to replenish the fortunes of those who -plan and conduct it, as is more than suspected, -since most of the money generally stops short of -its intended application, and can only be accounted -for by mistakes in the original estimates, or -expenses preliminary to the commencement of -the real work.</p> - -<div class="sidenote">MR. SOLOMON SINGLE-EYE.</div> - -<p>The good Dutchmen at first looked astonished -at a project so bold and vast; they next smoked -a pipe and doubted; but on an explanation being -given by Mr. Solomon Single-Eye, of all its advantages, -accompanied with a prompt offer to -embark <span class="smcap">HIS</span> <i>whole fortune</i>, and give his services -for nothing, the shares were eagerly caught up. -And as the scheme rose in public estimation, the -shares rose in nominal value, greatly above their -subscription price; and such was the clamor for -more, that the directors—having nothing in view -but the public good—disinterestedly consented -to sell out theirs at an advance of only seventy-five -per cent., in order to appease public opinion, -in respect of their apparent partiality in having -retained any for themselves. Still, however, the -inquiry for shares was eager and constant, so -great was the public confidence in the integrity -and shrewdness of the directors, and of Mr. Single-Eye, -particularly.</p> - -<p>At this juncture, Mr. Jacob Broker opened an -office near the wall-street, that was to be, for the -sale and purchase of shares.</p> - -<div class="sidenote">MR. JACOB BROKER.</div> - -<p>Mr. Broker was a man of great shrewdness -and penetration. His education, to be sure, had -been somewhat neglected, having been superintended -in his youth by a strolling professor of -the “black art,” whom to follow, he ran away -from home at the age of fourteen. But his genius -was of that universal kind which all men desire -and but few possess—and hence the facility with -which he adapted himself to his new employment. -His initiation into the black art now -stood him instead of capital, and made it easy for -him to convince the honest Dutchmen of his -power to turn “metals of drossiest ore to purest -gold.” To him, therefore, they all went, whether -to buy or to sell shares in the Wall-street Stock -Company. And as he had often learned by the -sad vicissitudes of life, the necessity of turning -an honest penny for himself, he reasoned as all -philosophers would do in the same circumstances, -“that if he took not the tide of fortune -at its flood, he might again suffer under the same -unhappy conviction.” In other words, he thought, -and acted accordingly, that if he did not embrace -the opportunity to improve his fortune when it -offered, it might never present itself again. He -shrewdly guessed that he might greatly aid the -rise in the value of the shares by appearing to be -<i>entirely disinterested</i>—while at the same time -he contrived, generally, to be the real purchaser -when people employed him to sell, and the seller -when they employed him to buy: by which -means, as the stock gradually rose in the market,—the -commission being considerable, the profit -more—and as he bought and sold the whole number -of shares several times over, he was enabled -to abstract from the pockets of the honest Dutchmen -and placing it in his own, in solid cash, -nearly the whole amount of the nominal rise in -value on all the shares.</p> - -<div class="sidenote">HONESTY AND DISINTERESTEDNESS.</div> - -<p>He was of course a man of substance, made so -by his wits, and at the expense of the burghers -of New-York.</p> - -<p>That he was a strictly honest man, is quite -certain; for his old master of the “black art” is -known to have said, that when he paid him a -secret visit, and suggested the propriety of manufacturing -a few certificates of shares, to meet the -urgency of demand, Jacob replied, that “if detected -it would spoil the profits of his trade, and -therefore, in honor, he could not consent to the -proposal.”</p> - -<p>He honestly paid his debts, also, for the same -reason, and as a man of public spirit, lent his -means to assist in building the “old jail,” to confine -all those rogues in, who could not pay theirs.</p> - -<div class="sidenote">PRINCIPLES OF TRADE.</div> - -<p>To be sure, he acted on the principle that there -is no friendship in trade, and that a bargain is a -bargain, however made, and must be fulfilled. -What if his customers <i>did</i> pay him a commission? -he sold only his services, not his wits; and them -he had a right to use for his own benefit. He -had long since learned, in his profession of the -“black art,” that the measure of success depended -on the closeness of his secret, and if people -did not know his arts, he thought it but right -that they should pay for being amused by them; -and following this mode of reasoning, in the scale -of progression upward to the higher sciences, he -judged rightly, “that if people were ignorant -they must pay for instruction.”</p> - -<div class="sidenote">MORAL REFLECTIONS.</div> - -<p>Skilfulness in trade was, in his opinion, justly -placed at the head of moral science, of which he -had now become a professor; and why should -he be expected to impart what he knew without -a “quid pro quo?” Not he; but rather following -the plain dictates of wisdom, he would learn -all he could, and impart nothing.</p> - -<p>If he knew better how to make a bargain than -his customers did, that was their fault, not his. -People should look before they leap, and look too -with their own eyes, not attempt to borrow his; -they should know his mode of business before -they came to him; not come and complain afterwards.</p> - -<p>These reflections while they clearly show the -astuteness of his mind, also suggest the reasons -why stock rose rapidly; and point out the means -by which Mr. Broker pocketed nearly all the advance -himself,—without ever retaining more -than ten shares in his hands at any one time.</p> - -<p>In time Mr. Broker became a sage, and, as a -fruit of his wisdom, left behind him a code of -laws which have ever since been the standard -of Wall-street.</p> - -<div class="sidenote">VIRTUE OF CORPORATIONS.</div> - -<p>We shall have frequent occasion to refer to -points in this code, but, for the present, will only -mention, that he improved upon the great Lacedemonian, -who is said to have made a law -that placed the crime of stealing only in detection—Mr. -Broker placed it only in the punishment. -It was of no consequence that a man -should be found out in his roguery—that only -established his character for shrewdness—a word -of modern coinage, which some silly and old -fashioned people have supposed to be, only a -mitigated term for dishonesty. He never became -a criminal until the law reached him with punishment; -and the merit of his character, as well -as the measure of his success, depended entirely -on the length he could go, and the frequency of -his exploits, and still escape the lash of the law.—And -herein is seen the peculiar virtue and -particular wisdom of those contrivances called -Corporations, and Joint Stock Companies, of -which Mr. Broker was a great encourager. An -ingenious device, wherein an imaginary body -alone is made accountable for the acts of its -members; while the real actors may hide behind -it, as long as it has power to protect them, -and scamper off without fear, when it has not. -It has also this peculiar property, that, when -the directors have taken to their heels, like the -ignis-fatuus, the farther you pursue it the farther -it recedes; and he who follows it long will, very -likely, get stuck in the swamp from whose foul -vapours it has been generated: and, at most, if -fairly got hold of, it is never found to consist of -any thing more than a worthless bit of parchment.</p> - -<div class="sidenote">DISCOVERY IN NATURAL HISTORY.</div> - -<p>We have said that Mr. Broker was a man of -universal genius. In proof of which, he essentially -improved the vocabulary of English; and -in two particulars, conclusively shew that Johnson -and Buffon are in error, viz.—that a Bear -means a man who has no shares in the -Stocks—one stripped—in an em-bar-assed condition, -and that a Bull means a man who has -more shares than he can keep, and has gored -his neighbour to procure them.</p> - -<p>His was the first Broker’s office ever established -in the city of New York; and from him have -descended all the race of brokers which have -since congregated in the region round about -Wall Street. Whether his posterity have answered -Dr. Johnson’s<a id="FNanchor_2_2" name="FNanchor_2_2"></a><a href="#Footnote_2_2" class="fnanchor">[2]</a> definition of the word -broker, viz: “A negotiator between two parties -who contrives to cheat both,” will be seen in -the course of this history.</p> - -<div class="sidenote">SIMPLICITY OF THE GOVERNMENT.</div> - -<p>When the gallant Col. Nicholls had, in the -name of the crown of Great Britain, taken full -possession of the city and territory of New Amsterdam, -and bestowed upon it the name of his -patron the Duke of York; by way of conciliating -the Burghers, he left them undisturbed in -all their civil and domestic privileges, without -embarrassing them with the intricacies of British -laws. And in those days of simple legislation, -the government had not yet learned the way to -purchase power, and make people dishonest, by -selling corporate privileges. And demagogues -had not yet learned to claim the monopoly, as a -reward for their intrigues. Consequently, Mr. -Single-Eye, and his coadjutors in the matter of -the Wall-street Stock Company, had the power -of fixing things all their own way; that is, they -made all their own laws, rules, and regulations, -without let or hindrance of any kind. And so ingeniously -were they contrived, that, by their natural -operation, the money which came in by subscription, -all leaked out again exactly at the right -place and at the right time. Since that time, the -wisdom of the Legislators of most of the states has -decreed, that people shall not associate in bodies -for purposes of roguery, without first buying a -licence; and, under the name of Charters, they -will sell licences to cheat the public, as the Pope -sells plenary indulgences, to replenish a wasted -Treasury, (<i>vide the great state of Pennsylvania -and the U. S. Bank.</i>)</p> - -<div class="sidenote">WHAT A DIRECTOR SHOULD BE.</div> - -<p>It is worthy of remark and imitation, that neither -the president nor the cashier of the Wall-street -Stock Company ever ran away with a dollar of -their money; so rigid a <i>surveillance</i> did Mr. -Single-Eye keep over its affairs. Although -nothing but a director himself, he held the true -doctrine, that directors should really be the head -of an institution, and that the president and -cashier were merely heads of the clerks. Mr. -Single-Eye was moreover of opinion, that it was -better for a director to hustle the money into his -own pocket, and make sure of the gain, than to -suffer another to do it, and incur the odium -himself. To be sure, he was somewhat at variance -with Mr. Broker on this point, but Single-Eye -had the power, and there is nothing like -that for enforcing a good reason.</p> - -<div class="sidenote">DEGENERACY OF OUR DAYS.</div> - -<p>And here I cannot forbear to remark on the -degeneracy of these days, when directors so -often give up all management to the presidents -and cashiers, thus leading them into temptation, -and provoking them to do that, which they -might do themselves with greater safety, because -they are less immediately responsible. -Alas! how many men, with their families, have -been ruined by this cruel lack of vigilance.</p> - -<p>I should not have said so much on the origin -of stock companies and brokers, but that I thought -it necessary, to a more perfect understanding -of what shall follow. Having said so -much, it is proper that I should make known the -fate of this first attempt at stock jobbing. And -it is especially necessary that I should do so, for -the benefit of those widows and orphans, who -have any doubts about the entire safety of investing -their little fortunes in the like securities.</p> - -<p>Every body has read of the severe reproof once -administered, by a Spanish lady, to a gentleman -who complained of the indelicacy of their statuary. -She told him that, had his own mind been -pure, he would never have discovered indelicacy -in what was “true to nature.”</p> - -<div class="sidenote">STOCK COMPANIES.</div> - -<p>It is well known that stock companies, such as -banks, insurance companies, trust companies, and -the like, are got up entirely by disinterested men, -for the purpose of affording an opportunity for -ladies of a “certain age,” widows, and orphans, to -invest what little funds they have in safety, with -the certainty of a <i>moderate</i> income. Accordingly, -whenever a company is started, and -the stock <i>all</i> subscribed for by the managers, this -class of people are particularly favored, in being -permitted to purchase some shares at a trifling -premium of ten or fifteen per cent., and urged to -take an interest before they shall go higher. And -then, after two or three years’ refusal to make any -dividend, for fear they might spend it imprudently, -the same gentlemen who sold the stock, -are willing to buy it back again at a discount of -only fifty per cent.; and the poor spinster is perfectly -satisfied of the safety of her investment, -because, having once parted with the money, she -can never get it back again. This class of stockholders -are also particularly favored and acceptable, -because they never want to borrow, and -never find fault with the management; and if, by -chance, they should suspect themselves to be -badly used, a tear shed in secret is the only complaint -they ever make.</p> - -<div class="sidenote">EVIL TO HIM WHO EVIL THINKS.</div> - -<p>I will lay it down as a rule, therefore, that -whoever distrusts the integrity and good intentions -of those gentlemen, who get up a stock -company, and collect within its vaults the widow’s -mite and the orphan’s support, is no better -than the gentleman before alluded to, whose perversion -of the luxuries of taste flowed from the -impurity of his own mind.</p> - -<div class="sidenote">A DIRECTOR A WEASLE.</div> - -<p>Whenever any company is attempted to be -established for purposes of public improvement, -it is always a prerequisite of success, that in the -programme, the expense should be set down at -one half, and the profits and advantages at double—and -this mode of stating things, although it -varies from the actual result only three hundred -per cent., is sure to convince, and the public will -eagerly catch at the enterprise. The reason of -this necessity is, that if the truth were told in the -first place, there would be little chance for management -in the stock, and none whatever of its -being all taken up. But by this <i>shrewd</i> management, -it generally happens that an original subscriber, -after having paid up in full his subscription, -and two or three assessments beyond, loses -all confidence, and suffers all he has paid to be -forfeited to the company, rather than pay more. -Thus the original subscribers generally lose all -their money; the stock is resold by the company -to some new comer, and the company, in the end, -collect a million capital upon a subscription of -half that amount. And whoever subscribes to a -new fashioned bank, or a railroad, and does not -find the directors awake to this management, may -hereafter say with truth that he has caught a -weasle asleep—there being no other difference -whatever in the vermin, than is expressed by the -simple affixes <i>bi</i> and <i>quadru</i>.</p> - -<p>Such was the character of Mr. Single-Eye, of -the Wall-street Stock Company; and the number -of similar institutions which now display -their gilded signs there by the same means, can -only be told by multiplying some of the numericals.</p> - -<p>It so happened, however, that the Dutchmen, -from their natural stupidity and ingratitude, as -Mr. Single-Eye averred—but, as some suppose, -from some lurking doubts of his virtue, and a -spice of his own cunning—after having paid -seventy-five per cent. premium for their stock, -through the agency of Mr. Broker—could not be -convinced of the propriety of paying more in the -shape of assessments, notwithstanding Mr. Single-Eye, -and his partners in the directorship, assured -them that all was right, and that the money -had all been properly expended.</p> - -<div class="sidenote">COMMITTEE OF INVESTIGATION.</div> - -<p>A committee of examination into the company’s -affairs was therefore appointed; whereupon -Mr. Single-Eye, being grieved at such indignity -offered to his honor, took the “book of -minutes” and walked off, leaving the Dutchmen -in a state of “confusion worse confounded,” from -which they never recovered: thereby establishing -a precedent for the tragedy lately enacted in -the Water Works Bank, in this city—wherein, if -the directors of that institution had consulted the -ancient chronicles, they would never have tried -to cover their own delinquency, by a contemptible -persecution of their late venerable cashier.</p> - -<p>The committee of examination, without waiting -to come to their senses, adjourned “sine die.” -The city wall had been broken down, and its -materials were all scattered about in delightful -confusion. A complete inroad had been made on -the hitherto peaceful and happy homes of the -Dutchmen. They had lost all the money invested -in the company, with the melancholy satisfaction -that it would cost them as much more -to clear away the rubbish; and the street was -left to the slow progress of time, to assume its present -magnificent appearance.</p> - -<div class="sidenote">HONORABLE END OF SINGLE-EYE.</div> - -<p>It is remarkable, that such fatal results to the -first experiment, should not have proved a death -blow to all similar enterprises in future. But the -Dutchmen overcame their misfortunes by patience -and industry. The memory of their -wrongs was all washed away by the soothing -lethe of time, and their follies were all buried in -the deep dark valley of the land of forgetfulness. -Mr. Single-Eye, and Mr. Broker, ever afterwards -fared sumptuously every day. They lived long -and died lamented; and the tablet to their memory, -lately removed from the Garden-street church -yard, was inscribed with this motto: “Money is -good, fame is good, but to know how to improve -the follies of others is better than either.” And -their descendants, learning wisdom from this law, -have ever since continued to follow their example.</p> - -<div class="sidenote">THE MORRISON KENNEL.</div> - -<p>And now, my dear readers, having initiated -you into the origin of stock companies and brokers, -as well as the phrase and practice of Wall-street, -in my next chapter I will give you the -history of the “Morrison Kennel”—a company -that has exhibited so many of the phases of human -nature, that some have said that “old -Nick” must have had a hand in it. If you expect -that the dogs of this Kennel will prove to be -hounds, I will tell you beforehand, that they are -the veriest puppies in cowardice, treachery, and -meanness, while they are perfect wolves in -voracity; as will be proved by the perfectly denuded -bones of the dead but stall-fed ass, which -they have just forsaken.</p> - -<p>If any one is curious to know from whence I -got all this information, I will tell him. I received -it from a venerable chronicler of the age, -who has the old manuscript in his possession, -and who now visits Wall-street daily to mark -the passing events. He has agreed to meet me -there every day for a week, where he will reveal to -me the history aforesaid, and such other matters -as his experience and observation may suggest.</p> - -<hr class="chap" /> - -<div class="chapter"> -<h2 class="bold nobreak">CHAPTER II.</h2> -</div> - -<p class="center narrow small bold">THE HISTORY OF THE MORRISON KENNEL—NICHOLAS -THE 1ST—A STOCK SPECULATION, -&C.</p> - -<p>It is a pleasure which comes gratefully home -to the heart, when contemplating the picture of -human life, in whatever grade of society or condition -we view it, amongst the multitude that flit -by us, occasionally to see a being that stands out -in bold and bright relief to its dark shades.</p> - -<p>On the second day of my visit to Wall-street, -while sitting with my venerable friend, the old -gentleman, pointing to the street asked, “do you -see that man.”—“Yes,” I answered, “and I -know him; he is a man of honor, such as -honor should be considered,—one of nature’s noblemen; -his word is as good as his bond, and his -friendship is better than either. He pays his debts -because he promises, lends to oblige his neighbor, -and gives to benefit the receiver—he tells the -truth because it is right, and cheats nobody because -it would be wrong. He has gradually -risen in wealth and credit, has the confidence of -every body, and amidst all the slime and filth -that surround him, his character stands untouched -and unsullied by its poison.”</p> - -<div class="sidenote">ONE HONEST MAN IN WALL-STREET.</div> - -<p>He may be seen every day, at half past ten, -going to the stock exchange, with a book under -his arm; and may be known by the breadth of -his foot, the swing of his legs, and the weight of -his bottom. He will occasionally appear in the -course of this history, under the name of Mr. -Bottomly, and I hope his conduct will vindicate -my description of his character.</p> - -<p>The old gentleman heard my remarks with -apparent consent and pleasure, which were indicated -by a smile of satisfaction peculiar to -himself; but my silence was immediately commanded -by a significant nod, with a gesture of -the hand, as much as to say “there are some -things however in Wall-street, which I know -better than you do,” and he then proceeded, -agreeably to promise, to relate the history of the -Morrison Kennel.</p> - -<div class="sidenote">THE VALUE OF A NAME.</div> - -<p>The garrulity peculiar to men of his age, must -excuse the frequent introduction of remarks foreign -to the narrative; and when I tell my readers, -that my friend is a man of deep reflection and -high toned moral sentiment, as well as acute observation, -they will not be surprised at his occasional -illustration of fact by reference to principle.</p> - -<p>“The practice of the aborigines of this country,” -said he, “of giving names to men and -things, indicative of their qualities and exploits, -is well considered savage. Since the day when -the poet first propounded the question ‘what’s -in a name?’ mere moralists have been at fault. -But modern practical skill has discovered that -there is much; and it was left for the originators -of the Morrison Kennel, to find out the best use -that could be made of it, viz: that it may be -made to cover one purpose under color of another—may -gain credit for what it is not, and -shield from detection what it really is, or may gull -a State with the promise of improvement, and -cheat the people of their money for their credulity. -In short, the advantages to a stock company -of a judicious choice of a name, are incalculable; -not the least of which arises from properly -compounding it, so as to mean more things -than one, as the Morrison Kennel and Banking -Company. One peculiar advantage of this last -is, that as the projectors are not always certain -what they will do, but intend to be governed by -their success, they are thereby enabled to shift -their course to suit the breeze.”</p> - -<div class="sidenote">WHY THIS WAS CALLED KENNEL.</div> - -<p>“This company would probably never have attained -the <i>soubriquet</i> of Kennel, a mere play -upon the original sound, but for the remarkable -financial talents of Nicholas the 1st, profanely -called old Nick, in the first place, and its employment -afterwards to help to hold up the sides of -the great bull dog of Pennsylvania, ycleped the -U. S. Bank, who had grown so weak from disease, -that it was feared, without such aid, his attempt -to bark, would prove a concussion of air -from the wrong orifice. In other words it was -feared, that without collateral support, the first -resumption would <i>not</i> last as long as the second -<i>did</i>.</p> - -<p>“The circumstances which called into activity -the financial talents of Nicholas, deserve a particular -notice, as they have an important bearing -on this history. And for that purpose, I must -introduce to you a gentleman well known in -Wall-street; of amiable disposition, gentlemanly -deportment and honorable connections. His person -may be known from his resemblance to king -Saul, being taller, by the head, than any of his -tribe of brokers, and, as he bears the appellative -of an immortalized Friend, and the signification -will be descriptive of his character, I will call -him Mr. Friendly.”</p> - -<div class="sidenote">MR. FRIENDLY AND HIS APPETITE.</div> - -<p>“The only thing remarkable about this gentleman -is, his extraordinary appetite; from which, -taken with his slender proportions, it has been -inferred by some, that, like the bird most avoided -by sportsmen, his alimentary canal consists only -of a straight passage; for he has been known to -gorge and digest more stocks in one day, than -the weight or bulk of his whole body in the -certificates.”</p> - -<div class="sidenote">FRIENDLY’S CAUTION.</div> - -<p>“With this introduction of a part of the ‘dramatis -personæ,’—having already described, with -some particularity, the motive for, and the manner -of, getting up stock companies, with such -parts of their general management as can be interesting -to the public—I will commence with -the Morrison Kennel, at that point when the -causes for the activity before alluded to commenced, -viz: precisely at that time, when the directors -had expended the whole amount of capital -subscribed, together with a loan of seven -hundred thousand dollars obtained in Holland, -in digging a ditch through the State of New -Jersey, which served little other purpose than to -drown the Jersey farmers’ pigs—without any one -of the said directors having cleared more than -fifty thousand dollars out of the company, by -means of contracts or otherwise—when their -credit was exhausted, the stock reduced in market -to one fifth its original cost, and the directors -ready, on the first symptom of alarm, to take to -their heels for safety. Then, fortunately for -them, Mr. Friendly, desirous of improving his -fortune, which at this time he found to be in -rather a waning condition, formed a scheme of -speculation in the stock, commensurate with the -vastness of his own desires; and, with this view, -he began with the caution and finesse of one -who has a game to play. He first ascertained -that some of the directors were still in possession -of a considerable amount of the stock; whom he -could, very probably, draw to his own interest -by endeavoring to aid them; and he then proceeded -to the office of Mr. Bottomly.”</p> - -<div class="leftnote">CALLS ON BOTTOMLY.</div> - -<p>“Good morning, John,” said he, “how are -you?”</p> - -<p>“Pretty well Dan, how are you?”</p> - -<p>“Hard up.”</p> - -<p>“Hard up,” eh!—“No cornering, I hope”—“No,”—“dull -times, no movements, things are -paralysed, very much.”</p> - -<p>Mr. Friendly wished, and was therefore -pleased, to find his neighbor alone. So he sat -down without ceremony. And after a variety -of common place remarks, he at length arrived at -the point where he should unburthen himself of -his subject. His object was to enlist Mr. Bottomly -in his proposed speculation, and thereby -secure his means, his influence, and his interest -in its favor.</p> - -<p>“John,” said he, “the Morrison stock is very -low, what do you think of it?”</p> - -<p>“That it sells for more than it is worth.”</p> - -<p>“That may be, but a thing is worth what it -will bring.”</p> - -<p>“The seller always thinks so, but the buyer -sometimes finds that he has paid too dear for the -whistle.”</p> - -<div class="leftnote">TWO WISE HEADS TOGETHER.</div> - -<p>“What would you think, John, to see the -Morrison at 75.”</p> - -<p>“I should think very strange.”</p> - -<p>“Stranger things have happened though, John. -I have a mind to move in the Morrison, what -say you to join me?”</p> - -<p>“What do you propose?”</p> - -<p>“Why, you have the means,—the stock may -be had at twenty, and a hundred thousand dollars -would control the whole of it. It must be -done quietly; and then by contracting on time -we should have the power to deliver without -loss when we sold; and by making three contracts -to receive to one to deliver, we can make -them pay whatever difference we choose.”</p> - -<p>“That would be too much power to get in -our hands, Dan, would it not?”</p> - -<p>“True, it would not answer to trust every -man with so much; but in your hands and -mine, I think we would not abuse it.”</p> - -<p>“What amount of exaction do you think -would be an abuse of such power?”</p> - -<p>“Why, it would be wrong to take more than -two hundred per cent. profit, unless we got hold -of some one who could well afford it.”</p> - -<p>“But that would be using force to appropriate -other people’s money to our own use. I think it -would not be justifiable.”</p> - -<div class="sidenote">PLAN CHANGED.</div> - -<p>Mr. Friendly, though not devoid of sound -sense and a good judgment, usually suffered his -eagerness for speculation to blind his mind to -every probable result but the glitter of gain. -He had never looked on the subject in this light -before. He intended nothing but a “fair business -transaction,” and was desirous that his -friend Bottomly should share in its success. -His mind revolted at doing a positive wrong; he -therefore abandoned his plan, but adopted another -on the instant, which though less culpable -on his part, was in the end productive of an -equal degree of evil. Always quick and decided -in his actions, he said “well John, you are always -right-minded, though you are sometimes -wrong headed, we will say no more of this plan -for the present; but I think well of a speculation, -and therefore you shall buy me five hundred -shares to day at ‘the board,’ I will send you -in a check for ‘ten up,’ and the rest we will arrange -to-morrow.”</p> - -<div class="sidenote">THE BANK PARLOR.</div> - -<p>Having decided upon his plan of action, Mr. -Friendly then immediately, sought the directors -who held stock. Fortunately he found them all -in the bank parlour. They had just been talking -over the affairs of the company, I will not -say that they had been discussing its affairs, for -their conversation was like any thing else but a -discussion, and consisted of sundry expletives -directed principally against their predecessors in -office. And here let it be remembered, that those -gentlemen, whose ambition had led them to desire -such a post of honor, were but newly installed -in their places. And, having purchased stock -to procure their election, with knowing but very -little about the real state of the company’s affairs, -they were now unable to get rid of it, and were -lamenting their folly and cursing the authors of -it. For be it known, that their ambition and vanity -had been stimulated by their predecessors before -the election, to induce those gentlemen to -seek a post which they wished to abandon themselves, -knowing that sooner or later it would -disgrace them.</p> - -<p>Mr. Friendly disclosed his errand at once, and -was well received.</p> - -<div class="sidenote">EAVESDROPPERS.</div> - -<p>He said he was apprised of a speculation going -on in the stock of the Morrison; he intended to -embark in it—wished them to hold back their -stock, and aid his views in effecting a rise, and he -would aid them in disposing of theirs at the right -time. He did not tell them that he was the sole -author of the speculation; he modestly forebore -that, under the plea that he did not feel at liberty -to tell all that he knew. But the directors were -almost immediately confirmed in their good opinion -of his knowledge and sagacity, as well as of -his intention to do them a service, by hearing of -the large purchases of Mr. Bottomly, at a considerable -advance on the previous market value.</p> - -<p>It is curious, as well as amusing, to see how -many and how slight causes sometimes tend to -aid or to frustrate a speculator in his designs.</p> - -<p>There is a set of proscribed men in Wall-street, -who were once brokers, professionally, and are -now broken in reputation, credit and finances—having -no means but what they have kept from -their creditors, and—being expelled from the exchange -board for defalcation or bad conduct—they -still linger round their old haunts, and carry -on a system of gambling in what are termed fancy -stocks, through which they contrive occasionally -to entrap and empty the purse of some newcomer, -or filch each other of their ill retained -means, until each in his turn gets placed on the -“black list,” which is the final seal of reprobation, -and in Wall-street signifies—“that whoever -deals with that man, shall himself not be dealt -with by any one.”</p> - -<div class="sidenote">EAVESDROPPERS.</div> - -<p>These gentry may be seen, daily, in squads of -three, four, and five, standing on the side walks, -or on the steps of the large offices, talking vociferously, -and making such bids and offers in the -funds, as that one not knowing better, would suppose -that each held the finances of the country -in his palm.</p> - -<p>One of them, whom I will call Mr. Eavesdropper, -had his ear timidly placed at the key hole of -the Stock Exchange, and heard Mr. Bottomly’s -bids for Morrison, which instantly infused such -courage into his mind, and activity into his limbs, -that he went out, and before the transactions of -the board were publicly known, he had privately -contracted for the delivery of a large number of -shares; and then, to aid his purpose in effecting -a further rise, gave out that he was in confidence -with John Jacob Astor, or some one no less powerful, -who had determined to buy up the whole -company.</p> - -<div class="sidenote">MR. SPRIGGINS.</div> - -<p>As soon as Mr. Friendly had returned to his -office from the meeting of the Board of Brokers, -on the day I am speaking of, and, as is common, -had laid open on his outer desk, for public inspection, -the record of the transactions which had -there taken place—in which he had carefully -noted all those in the stock of the Morrison—he -walked out into the street, where he encountered -Mr. Spriggins, who, contrary to his wont, for -some cause, had not been present at the board -that morning.</p> - -<p>Mr. Spriggins is one of those gentlemen, whose -conceit of himself supplies the place of education, -manners, and intellect, and he accosted Mr. -Friendly as follows:</p> - -<p>“Dan, what does all this speculation in the -Morrison mean?”</p> - -<p>Mr. Friendly, whose polite manners encouraged -the freedom of such men as his friend Bottomly, -held in contempt the rudeness of impudence, -and, instead of answering Spriggins, turned -on his heel without noticing him.</p> - -<div class="sidenote">THE FEVER UP.</div> - -<p>Spriggins, who could never imagine the existence -of such a feeling towards a gentleman like -himself, attributed this treatment entirely to another -motive; and knowing Mr. Friendly’s speculative -character, he at once imagined that Friendly -had a secret that he wished to keep, and improve -for his own benefit, and he immediately -resolved in his own mind to outwit him. Upon -this impulse he hurried away to purchase all the -Morrison stock he could get hold of—which he -did at a large advance of price over the purchases -of Mr. Bottomly; and when he had done so, exultingly -told Mr. Friendly that he was “not to -be come over.” “But never mind,” said he, “you -can keep your secret now, Dan; but if you are -so disposed, as you know what is going on, we -will operate together.”</p> - -<p>Mr. Friendly was not disposed to embrace this -offer, liberal as it was, and maintained such a reserve -as excited still further the cupidity of -Spriggins. Meantime, having heard of the operations -of Eavesdropper, Mr. Friendly perceived -that he had fairly put the match to a train that, -if properly fed, would lead to an explosion. But -he resolved that before it should happen, he -would take good care of himself.</p> - - -<div class="sidenote">LOAFERS.</div> - -<p>There is another set of men in Wall-street, -which demand my description. They have neither -trade nor profession of any kind, and if they -ever had any, they have abandoned it. Some of -them are of that class called Gentlemen, who have -married fortunes and squandered them—some -are broken merchants—some disgraced politicians—defunct -post masters, &c. &c.,—and all -of them are Loafers. They have neither wit -enough to contrive, nor credit enough to carry -out, a speculation: but when one has begun, like -that I am now describing, they may be seen -flocking in and out of the brokers’ offices—examining -the stock books—talking wisely of the nation’s -affairs—each one pretending to know more -of finance than even Mr. Woodbury himself; -and their exuberance of knowledge is almost as -luminously exhibited. Like flies round a honey -pot, each one is anxious for a sip, and according -to his slender means, pledges a hundred dollars, -more or less, and orders his broker to buy -as many shares as he will upon this security. -They thus materially aid the great speculators; -but the result to themselves generally is, that -their families or friends suffer precisely the -amount they have risked—and so it was in this -instance.</p> - -<div class="sidenote">DEEP IN FOR IT.</div> - -<p>Mr. Friendly continued to purchase largely of -the Morrison stock, which increased the excitement, -and continually advanced the price; and -Mr. Spriggins, nettled by Friendly’s reserve towards -him, continued to be a large purchaser -also, and induced several of his friends to join -him.</p> - -<p>It ought to be observed here, that these purchases -were generally made “on time:” that is, the -stock was agreed to be delivered at a future day. -And it so happened that when Spriggins was the -buyer, Mr. Friendly was generally the seller, -through some other persons, as his agents; and -he had taken care so to provide himself with -stock, that he could meet his contracts on time—not -only without the danger of loss, but with a -certain profit.</p> - -<div class="sidenote">HOW SOME PEOPLE NEGOTIATE LOANS.</div> - -<p>So long as the stock maintained the very high -price to which it had now advanced, all was well; -but the time must come, when it would not, and -then, there was danger that Spriggins, and his -compatriots in the speculation, would not be able -to fulfill their engagements. Mr. Friendly, therefore, -as a stimulant to the action of Spriggins, -and to prepare for the denouement, hinted to him -that, as the stock had now so much increased in -value, probably Nicholas the 1st would loan money -liberally upon it; and, as the stock must rise -still more, such an accommodation would be very -desirable, to enable one to hold it. He dropped -this hint in such a way, as led Spriggins to believe -that he intended to make the application -for himself. He had really, however, no intention -of asking such a favor, for such a purpose, -but he knew well what the effect of such a suggestion -would be with Spriggins, and—as he expected—the -dapper gentleman immediately started, -post haste, for Philadelphia, and succeeded in -obtaining from Nicholas, the promise of a loan of -one hundred and fifty thousand dollars, on stock -of the Morrison, which, six weeks before, was -not worth, in the market, one-fourth of that -amount: that is, provided Mr. Spriggins would -negotiate half a million of dollars of the bonds of -the U. S. B., payable in twelve months from date; -by which means, Nicholas cunningly foresaw, -that, instead of lending Spriggins, he should himself -be the borrower of no less a sum than three -hundred and fifty thousand dollars. But those -were palmy days of credit: the bonds were all -negotiated with ease, and the Morrison stock -transferred to Nicholas, as security for the <i>loan</i>, -as fast as the greedy purchases of Mr. Spriggins -could command the large amount necessary.</p> - -<div class="sidenote">FRIENDLY’S PLAN CONSUMMATED.</div> - -<p>Mr. Friendly now saw all his hopes about to -be realized. By obtaining the control of a very -large amount of the stock at 20 to 25 per cent. -on the par, and stimulating the cupidity and self -conceit of Spriggins, he constantly went on buying -ten shares at an increased price, and always -selling, through some one else, twenty shares to -every ten that he bought, until he succeeded in -throwing the whole stock upon Spriggins, and his -associates, who, as we have seen, were supported -by Nicholas, in their mad speculation. And, in -less than four months from his first purchase, -Mr. Friendly retired, with a clear profit of one -hundred thousand dollars, and the eternal gratitude -of the directors of the Morrison, whom he -had assisted and relieved.</p> - -<div class="sidenote">THE DIRECTORS STUCK FAST.</div> - -<p>The directors of the Morrison rubbed their -hands with glee, and treated Mr. Friendly with -the greatest respect, when they found that they -had got rid of all their stock, not only without -loss, but at an enormous profit. But then came -the affairs of the company, which were not a -whit better now, than when the stock was depressed. -In fact, they were every day growing -worse—for the interest on their enormous loans, -was now becoming due, and they had nothing to -pay it with.</p> - -<p>At a meeting of the board of directors, about -the time we are speaking of, for purposes of business, -they all sat in silence, for some minutes, -looking at each other—each one wishing that his -neighbor might propose some remedy—and their -hearts sank within them, as each one successively -uttered a desponding sigh at the poverty -of his invention, or—what was still worse to get -over—the poverty of their finances. At length, -Mr. Faintheart proposed that they should all resign, -and let the affairs of the company take care -of themselves. This course—although so successfully -practised some time afterwards by their -successors in office—did not suit the taste of Mr. -Hold-on; who said that “the public mind was -not now prepared for such a movement. A few -years more, and the people will be more enlightened, -and will not expect directors to retain their -seats when they have nothing to gain by doing -so. But, if we desert them now, the thing will -be looked into; we shall be accused of all the -roguery that others before us have done—we -shall be hunted like rats. My motto, therefore, -is, ‘don’t give up the ship;’ and, as none of you -propose a remedy, I suggest that, as Nicholas -now holds a large amount of the stock, perhaps -he will loan us a couple of hundred thousands, -especially, if he is made to believe that it is wanted -to finish our works of improvement, and that -<i>when</i> they are <i>finished</i> it will improve the value -of his stock fifty per cent.”</p> - -<div class="sidenote">A WISE SUGGESTION—ITS RESULT.</div> - -<p>The proposal was hailed with delight, and Mr. -Hold-on was deputed to manage the negotiation, -which he did with the same success, in the same -manner, and on the same conditions, as did Mr. -Spriggins.</p> - -<p>This cunning device of Nicholas, always to be -the borrower, when he appeared to lend, is altogether -a modern invention, and was very successfully -practised, a few years since, in an attempt -to relieve the merchants of New-York, and -which, some have wickedly said, was used to enable -certain gentlemen to collect their private -debts, and finally went to relieve Nicholas of his -money, by throwing the same debts upon him. -Be that as it may, it is universally admitted that -Nicholas was the first inventor of a bank, whose -business was to borrow, instead of lending, -money.</p> - -<div class="sidenote">OLD NICK’S SHREWDNESS.</div> - -<p>By these master strokes of policy, Nicholas -came into possession of a claim of two hundred -thousand dollars against the Morrison, and held -an equal amount of their stock, both which in -six months afterwards he found to be not worth -a farthing. To these circumstances it was -owing, that, through his influence, the Morrison -Kennel was afterwards revived with great splendor, -and scenes were enacted, which, though -they have caused many a tear of grief to flow, -will, I hope, not fail to excite your laughter by -their relation.</p> - -<p>My venerable friend here excused himself on -account of fatigue, but with the assurance that, -at our next meeting, he would introduce me to -some new and original characters, and also tell -me about the negotiation of a great state loan—how -the directors of the Morrison helped to -nurse the great “bull dog” of Pennsylvania in -his sickness, and how they all ran away, when -they found he was likely to die, together with -some account of his disease, and his last moments.</p> - -<div class="sidenote">HOW THE OPERATORS CAME OUT.</div> - -<p>If any one is curious to know what became of -Messrs. Friendly, Spriggins, and Eavesdropper, -after their figure in the Speculation, I will take -this opportunity to tell them, that what has here -been said is but a small part of the fame to which -they are entitled; but it is my business only to -show the results of such things as I have related.</p> - -<p>Mr. Friendly, as all good men do, spent his -money liberally and charitably. To a large circle, -his house was the centre of politeness, elegance, -and hospitality; but his insatiable appetite -for speculation ruined him at last, as it does -all others; at least, he is so far ruined, that until -another speculation shall turn out like the Morrison, -he will be content to practice economy. -Mr. Spriggins set up his carriage on his anticipated -profits, and was let down from it before his -coachman had fairly mounted his livery; and -report says that he has since done the same -thing three times over. Mr. Eavesdropper ran -wild with his first success, and, in the end, only -arrived one stride nearer the “black list.” And -exactly one hundred and forty others were made -poorer than they were before, by the whole -amount which they put at risk.</p> - -<div class="sidenote">RESULTS OF GAMBLING.</div> - -<p>If the mischiefs arising from this species of -gambling were confined to those who set that -kind of speculation on foot, or who make it the -business of their lives, there would be nothing to -lament. But such is not the fact. The whirlwind -naturally sweeps everything within its influence, -and over which it has power, to its centre. -Hundreds, nay thousands, allured by the -success of a few, are induced to embark in the -rash adventure. They are unacquainted with -the real character or causes of the fluctuations, -and even if they are not ignorant, they are liable -to be outwitted by some of the hundred minds -that are continually plotting against them. Here -is the fruitful source of all those defalcations of -public officers—the purloining of money by officers, -and clerks of institutions which have so -much multiplied of late—inflicting misery on -the families, and disgrace on the names of many -a once honorable man.</p> - -<div class="sidenote">GOOD LESSONS TO THOSE WHO WILL HEAR.</div> - -<p>The business is showy -and fascinating, its temptations subtle and alluring. -Young and enterprising merchants embark -in it, and find that they have lost their money -and their credit, when it is too late to repent. -The hard working mechanic embarks a few -hundred dollars, and when he finds himself in -debt and no means of paying, sees that he has -been outwitted, and that, if others have made -money, he has lost it. In fact that it is he, and -others like him, who have assisted the successful -to pocket his profits. Women yield up the savings -of years to be invested in something, they -know not what, and wail over their folly and -their credulity, when all their bright hopes have -faded into a worthless certificate. In fact it is -only the loss sustained by such as these that enables -the operators, as they are termed, to accumulate, -or even to live by their business; for -they could do neither the one nor the other within -themselves. And it will be found to be a necessary -consequence, that in all such speculations -as that of which I have endeavored -to give but too faithful a picture, if one is -made rich, a hundred are made poor. In no -country in the world, is the hazard of stock -gambling, so great as in this, where there is such -a multitude of stocks, based upon the schemes of -individuals, and affected by the ever changing -prosperity of our growing, yet comparatively -unsettled condition; and where the capitals are -often so small, that it is in the power of two or -three designing individuals to raise them above, -or depress them below, their real value, as may -best suit their plans or their convenience, thus -often destroying the sole dependence of the -needy and helpless.</p> - -<hr class="chap" /> - -<div class="chapter"> -<h2 class="bold nobreak">CHAPTER III.</h2> -</div> - -<p class="center narrow small bold">STATE STOCKS—HISTORY OF THE MORRISON -KENNEL CONTINUED—INTRODUCTION OF -NEW CHARACTERS—THE U. S. BANK, &C.</p> - - -<div class="sidenote">BUBBLES.</div> - -<p>Among the many schemes of finance that have -disgraced our country, and been fruitful sources -of peculation, deserving the severe censure of -justice, and the ridicule of wit, there are none -more prominent than the bubble of state stocks. -Time was when that name had a signification of -value; but a new era is now upon us, the end of -which, “is not yet.” The character of our -western population is one of hardy enterprise, -and great intelligence in their own particular -sphere; but by some strange fatuity they have -overrated their credit, and in so doing, have -overreached themselves. That confidence of a -western man which induces him to believe that -he can “whip his weight in wild cats,” is no -vain boast, but the natural consequence of that -hardihood, of vigor that comes of their spirit of -enterprise; and it is not to be wondered at, that -the thrift of their situation should inspire a -similar confidence in other matters.</p> - -<div class="sidenote">HOW WISE MEN HAVE BEEN DUPED.</div> - -<p>But, until -they can learn to take better care of their credit, -and intrust the management of it to more skilful -and experienced hands, they will never cease to -be cheated and dishonored. The following detail -by my venerable and facetious friend, of a -negotiation for the sale of state bonds, would be -true to life, if it were not too feebly described, for -as I write only from recollection I find it impossible -to do justice to his humor.</p> - -<div class="sidenote">BUTTONING UP.</div> - -<p>“Before,” said he, “I proceed to the story of -the state bonds, I must first relate to you what -changes took place in the Morrison.” As soon -as the speculation detailed yesterday had ceased, -and Mr. Friendly had fairly retired with his profits, -the stock went down, down, down, and not -a purchaser for a single share could be found at -any price; and as soon as the whole class of -small speculators perceived that they had been -“stuck,” aware of the injury the little credit they -possessed would sustain, if they were known to -have met with a loss, they all shut their mouths, -except, that each one pitied his neighbor; and -strange as it may seem, not a man could be -found in Wall-street, who confessed the ownership -of a share; where three weeks before there -were thousands. This is called “buttoning up,” -and if any gentleman in a certain predicament -was ever surprised by a bevy of ladies suddenly -turning the corner, he will know something of -the hurry felt, and the nonchalance assumed, on -this occasion.</p> - -<div class="sidenote">NICK’S TALENTS AND COURTESY.</div> - -<p>Six months from the time when Nicholas made -the loans before spoken of, he “found that the -security was not worth a farthing.” If any one -is surprised that he should have been so improvident -of safety, they only need be told, that he -is one of those men whose expansiveness of -mind, and splendid talents were at home only in -great things. He could grasp at millions, and -sport with them as mere baubles; but the dull -and dry detail of investigating trifles, was fit occupation -only for meaner minds. And to the -same splendid talents it was undoubtedly owing, -that in passing into retirement, he was enabled -to discover so much soundness and prosperity in -the affairs of the U. S. Bank of Pennsylvania, -when nobody else could, and that the stockholders -of that institution, are so permanently fixed -in an investment of a capital of 35 millions, that -they will never get a dollar of it back again.</p> - -<p>Nicholas, however, was a man of courtesy, and -when on a visit to this city, condescended to -call on the directors of the Morrison. The -money borrowed by them, had been all expended; -another instalment of interest was becoming -due, and nothing provided to pay it with. He -met them in the Bank parlor, with solemn faces, -and like the Irishman’s owl, which he feigned to -be a parrot, they spoke not, but were thinking -very hard.</p> - -<div class="sidenote">THE <span class="nowrap">D——L</span> NOT TO BE FEARED.</div> - -<p>“Well gentlemen,” said he, “what is the matter?” -Mr. Faintheart, always foremost to express -discouragement, and always the last to aid -in relief, immediately replied. Why Mr. B. the -<span class="nowrap">D——l</span> is to pay, and we have no money. True, -answered Nicholas, you owe <i>me</i> a good deal -of money, but if that is all, it can no doubt be -arranged.</p> - -<p>Mr. Faintheart first blushed, then turned pale, -rose from his seat, and his knees smote together, -when he perceived that he had unluckily hit on -the vulgar cognomen of Nicholas. Regarding -the man with the highest veneration, and even -with fear, and unable himself to comprehend, -how so great a mind could exist, without more -aid than falls to the lot of common mortals, -he secretly believed the profane allusion to be a -verity, and, in his fears, expecting a blow from the -forked tail, that would annihilate him at once, -he was fain to ensconce himself under the table. -But perceiving that none of his comrades attempted -to run away, and that Nicholas himself -sat in “the armed chair, calm as a summer’s -morning,” with a smile playing upon his countenance, -benignant as benevolence herself, he -was re-assured; the purple came to his nose again, -and he stammered out, I beg pardon, I had no -allusion <span class="nowrap">to—to—<i>you</i></span>, sir.</p> - -<p>“Sit down, Mr. Faintheart,” said Nicholas, -“your wit amuses us.”</p> - -<p>Mr. Faintheart sat down, but was unable sufficiently -to master his disturbed, and mortified -feelings, to utter another word.</p> - -<div class="sidenote">EVERY MAN HAS HIS PRICE.</div> - -<p>What further took place at this conference is -not fully known, but it is generally understood -that, by the advice and influence of Nicholas, it -was then and there agreed, that, to revive the credit -of the Morrison, it was best to have a new official -organization, and to select for that purpose -men of talent, shrewdness, property and credit. -But as few such could be found who were willing -to act, common scandal has affirmed, that -resort was had to the principle, that “every man -has his price,” and that sums as high as ten thousand -dollars were paid, in more than one instance, -to procure the requisite number, all of proper -standing.</p> - -<p>All this took place soon after the period we -are speaking of, and if, by talent and shrewdness, -is meant, the ability to obtain credit, when none -is merited, and to know how to appropriate the -avails to themselves, without incurring liability, -with two or three honorable exceptions, the selection -of officers was a judicious one. All these, -however, were minor considerations, and when -Nicholas saw his new friends installed, with a -prospect of reviving the credit of the company, -and not only recovering his debt, but obtaining -a bolster also, to support the weary head of his -great Pet, his ends were nearly answered. This -was probably one of the encouragements which -led to his famous letter of resignation; and, since -the cotton speculation is now closed, and the -commissions all realised, we must now leave -him to enjoy his taste for literature, botany, and -horticulture, on the banks of the Schuylkill.</p> - -<div class="sidenote">FIGURES MAY BE MADE TO LIE.</div> - -<p>A semi official statement of the affairs of the -Morrison was now put forth. This also is a -plan of modern invention, not called for of yore; -and whenever it appears gratuitously, is always -designed to support a false credit. Its success -depends on such a classification, division, and -subdivision of the items, that the figures will express -the same things three or four times over. -In this instance it was properly done, and accordingly, -the stock and credit of the company -were revived under its influence.</p> - - -<div class="sidenote">NEW CHARACTERS.</div> - -<p>And now, said my friend, it is time I should -make you acquainted with the gentlemen you -saw this morning. The tall, spare, white haired -gentleman, with a scooping form, a down-cast -look, and a contriving countenance, is Mr. -Bold Eno. You saw that he had an eye of fire; -but it is only a spark struck from a heart of -flint, and a conscience of steel. I have not much -to say about him now, but he will figure by and -by. The next is a gentleman of more noble -presence, and less of the look of the <span class="nowrap">d——l</span> about -him. His mouth is full of honied words, but if -you believe them all, they will very likely prove -“sweet to the taste but bitter in the belly.” His -name is John-of-the-Field, which signifies that -he is a great sportsman; but his sports are -chiefly confined to shooting with the long gun. -It has been said that he could shoot round a corner; -but that is a slander upon the truth, and -arose only from his dexterity, in always providing -a corner, round which he <i>can</i> escape, whenever -his favorite weapon throws wide of the -mark. He is a lover of the arts, and his soul -melts at the dulcet sounds of music. His politeness, -and hospitality, can be measured only by -his love of power; and his opinion of himself is, -that to make him the “greatest and best” man -alive, he needs only to have his own way.</p> - -<div class="sidenote">A WESTERN FINANCIER.</div> - -<p>The third gentleman, whose hat was a little slouched, -and his coat not of the most modern cut, who -measured as much space at one stride of his legs, -as the other gentlemen measured at two, with his -fist doubled in his glove, expressive of his determination, -and his wrath, is Mr. Commissioner —— from -the state of ——. In his early -youth, he left the land of his fathers, the land of -steady habits, where he had learned, (what every -one learns there,) how to read and spell correctly, -with the rudiments of Pike and Murray, and -fearless and alone, treading the western wilderness -in search of a more genial soil, he established -himself, where now a flourishing city -spreads out her next to queenly beauty. Of -course he reapt golden fruits of his toil, and -opinions of his sagacity; in short he became, -not unworthily, a great man among them. The -principal error of his mind, was, that being born -in comparative poverty, and accustomed to matter -of fact dealing, he regarded the stupendous -bubbles of artificial credit and means, as all real, -and the men who managed them, as all abounding -in riches, and as honest as himself. He is now -here, to see how far his improved knowledge of -finance may enable him to correct his past errors -of judgment.</p> - -<div class="sidenote">DINING PRELIMINARY, &C.</div> - -<p>Two or three years ago, this same gentleman -came here, by the way of Philadelphia, being -there recommended to the Morrison Kennel Company, -and others, to negotiate the sale of two millions -of dollars, in state bonds. On his arrival -here, he made himself acquainted with all the -characters here introduced, and was “dined” by -each in turn, with a view to sound him as to his -wishes and expectations.</p> - -<p>The president of the company having been -authorised to open preliminaries of negotiation -with the commissioner, the board of directors -was subsequently called together to hear the -report; and, not to offend the dignity of any one, -who may fancy he recognises his own character, -I will abbreviate the names of those present, -as follows, viz: The Prest. and Messrs. J. G. -S. T. and W., directors; and when all had taken -their seats, they proceeded to business, as follows:</p> - -<div class="leftnote">DIRECTORS’S WIT AND CHAMPAGNE.</div> - -<p><span class="smcap">Prest.</span> Gentlemen: in conformity with your -request, I have attended to the duty imposed on -me, and my report <span class="nowrap">is—that</span> in stubbornness, one -Hoosier is more than a match for us all.</p> - -<p>“Ha, ha, ha!” all around the board.</p> - -<p>G. Well, in cunning how does he stand, Mr. -President?</p> - -<p><span class="smcap">Prest.</span> Simple as a doe.</p> - -<p>T. Then he can’t escape, G., if we turn him -over to you.</p> - -<p>G. Leave off your jokes, T.; this is not a -place for them. Mr. President, what says he to -our proposal?</p> - -<p><span class="smcap">Prest.</span> He likes it not; he wants more ready -money than we possess—he won’t budge.</p> - -<p>S. But, if we could get possession of the -bonds, I think I could make a private advance.</p> - -<p>T. (<i>aside.</i>) Yes, no doubt, and a private profit, -too.</p> - -<p>G. Does he object to our credit, Mr. President.</p> - -<p><span class="smcap">Prest.</span> Not at all; he has the most perfect -confidence; that was cared for at Philadelphia, -before he came here.</p> - -<p>J. Can’t we come over him with champagne?</p> - -<div class="leftnote">PLANS, HARD NAMES, AND FLOORING.</div> - -<p>T. If we had less sham here, I think it would -be better.</p> - -<p>J. But, it is our only chance; and, if we do -not contrive to raise some active means soon, we -shall never accomplish our designs.</p> - -<p>T. And, if you are not quick about it, John-of-the-Field -will outwit you all.</p> - -<p>J. What says Mr. Bold Eno?</p> - -<p>G. He is throwing cold water, and I suspect -he is attacking our credit.</p> - -<p>J. Tell the commissioner, then, that we will -mortgage the Kennel to him.</p> - -<p>G. But, it is mortgaged already.</p> - -<p>S. No matter, tell him it is only for 700,000, -and cost two millions and a half.</p> - -<p>T. Yes, and you can tell what became of -some of the money, eh?</p> - -<p>S. Mr. T., you are impertinent; do you accuse -me sir, at this board. Sir, you are a <i>scoundrel</i>.</p> - -<p>Here Mr. T. brought round his right foot -against the leg of the chair in which Mr. S., who -sat next him, was balancing himself with offended -dignity, and knocking it from under him, -brought him to the floor, to the very sensible uneasiness -of his crupper, for some time afterwards.</p> - -<div class="leftnote">AVOID INDIVIDUAL LIABILITY.</div> - -<p>Mr. S. was a man of courage, in words only; it -therefore evaporated with what he had last spoken, -and he dared not provoke his assailant any -further.</p> - -<p><span class="smcap">Prest.</span> Gentlemen, I must use my prerogative! -order—gentlemen, order!</p> - -<p>W. Gentlemen, this is not what I expected; I -must retire.</p> - -<p>T. Well, W., I’ll go with you; rogues must -bear to be told the truth, without throwing back -an insult, generally the best evidence of their -guilt.</p> - -<p>Messrs. W. and T. here retired, and the rest -again took their seats.</p> - -<p><span class="smcap">Prest.</span> Suppose, gentlemen, we send for -Nicholas?</p> - -<p>G. We are no longer dependant on him, and -as it might eventuate in our individual liability, -if we go forward in this thing, it is my opinion -that it is the duty of the president to conduct the -negotiation officially on behalf of the company, -and I therefore move a vote of the board that he -be directed accordingly.</p> - -<p><span class="smcap">Prest.</span> Gentlemen, I have resigned one treasury -department, sooner than do another man’s -bidding, and shall decline the service; I like not -this business much.</p> - -<p>G. Suppose, then, gentlemen, that we resolve -ourselves into a committee, and call the commissioner -in to-morrow.</p> - -<p>The proposal being agreed to, the board adjourned, -and Mr. S. still suffering from the contusion -of his lower spine, walked home with a -gait much as he would have done, had he chanced -to have made a rent in his nether integuments, -on a windy day.</p> - -<div class="leftnote">BREAKING UP—COLLOQUY.</div> - -<p>As they went out, J. said, “Mr. G., look well -that the commissioner has not another interview -with Bold Eno.”</p> - -<p>“Never fear,” answered G.; “I have provided -employment for him.”</p> - -<p>While these things were going on in the parlor -of the Morrison, the commissioner sat in consultation -with John-of-the-Field, and the following -colloquy took place between them:</p> - -<div class="leftnote">PALAVER.</div> - -<p><span class="smcap">John.</span> Mr. Commissioner, your State is one -of great resources, I think.</p> - -<p><span class="smcap">Com.</span> Undoubtedly, sir; surpassing that of -any other State in the Union; <i>i. e.</i> when they are -fully developed.</p> - -<p><span class="smcap">John.</span> And you are taking the right course -for that purpose. The example of New-York, in -internal improvements, has, by its success, given -an impulse throughout the country. In point of -locality, you far exceed us; but then, we have -the capital <i>here</i>, which is our great advantage.</p> - -<p><span class="smcap">Com.</span> Yes, sir, if we had the capital of New-York -in the State of ——, to carry out our plans -of public improvement, in twenty years from this, -we should exceed her in population by a million.</p> - -<p><span class="smcap">John.</span> Yes, Mr. Commissioner, and your soil is -so fertile, that when they were completed, even the -farmers of New-York would draw their supplies -from you, through the lakes, the Erie canal, and -the Erie railroad, which is now in progress, -principally with that view.</p> - -<p>Here John, perceiving a stare of surprise and -doubt in the eye of the commissioner, added, “<i>i. e.</i> -provided they could turn their lands to a better -account, by the cultivation of products more -congenial to the poverty of their soil.”</p> - -<p><span class="smcap">Com.</span> The view taken of the subject by our -legislature, is, that if we can borrow the capital -now, to complete the works, the income from -them will so increase, with the increase of products -and population, that in twenty years they -will pay the debt and interest, and leave a large -revenue to the State ever afterwards.</p> - -<div class="sidenote">FEELING HIS WAY.</div> - -<p><span class="smcap">John.</span> I have always advised my friends to -invest in the securities of the Western States, as -being the safest they could make; and many of -them are large capitalists, who frequently ask -my advice in such matters. I think if I had the -agency of all the Western States, in this market, -I could save them a great deal of money in their -negotiations. Their debts being only about forty -millions, the management of them would relieve -me from too much leisure, which I find rather irksome, -since I retired from the active superintendance -of a large institution here.</p> - -<p><span class="smcap">Com.</span> Perhaps the best introduction to such -an arrangement, would be, for you to take up the -loan now offered.</p> - -<p><span class="smcap">John.</span> Well, my investments, latterly, have -been very large, which I would not like to disturb -at present, but if it would <i>accommodate</i> -you, I would take the matter of 300,000 dollars -of the bonds, at par; but then, I should pay you -200,000 in the stock of the Long Island Railroad -at par, and the balance in six months. This -railroad is estimated to be the most promising -stock in the country; and its friends are sanguine, -that <i>when</i> completed, and in operation, the -stock will be worth, at least, 250 per cent., and -produce an interest of, at least, 20 per cent. per -annum. The original capital was but 700,000, -and with that capital, and the income of the -portion already finished, say only about one-third -the distance, the company has already expended -one million and a half—<i>i. e.</i>, including a -small debt still outstanding. I would not part -with the stock for any other purpose than to -oblige you—being anxious to facilitate the interest -of all the Western States.</p> - -<p><span class="smcap">Com.</span> My object, sir, is ready funds; they are -wanted for immediate disbursement, to about the -amount you speak of; if that could be arranged, -terms could be made for the balance.</p> - -<div class="sidenote">JOHN OVERSHOOTS HIS MARK.</div> - -<p><span class="smcap">John.</span> Well, Mr. Commissioner, if that is the -object with you, I think I could arrange for 300,000, -and give you Mississippi funds at par. The -State would, of course, give me some additional -security, and you would deposite the remainder -of the 2,000,000 of the bonds with me for sale. -My commission would be very reasonable.</p> - -<p><span class="smcap">Com.</span> Why, sir, if the security of the whole -State is not good, they have nothing else to offer. -However, I will think of your offer of Mississippi -funds. I have another call to make—so, good -morning, sir.</p> - -<p>As soon as the commissioner had left, John -held this soliloquy with himself:</p> - -<div class="sidenote">HIS SOLILOQUY THEREUPON.</div> - -<p>“I am afraid I have overshot the mark. That -asking security was a bad affair; but then, I am -so in the habit of asking six or eight for one, hang -me if I could resist it in this instance. The railroad -stock, too: if he should inquire about it, -‘he’ll smoke me.’ Two hundred thousand dollars!—why, -I’ve got but ten shares; but then, I -could buy the rest at five dollars a share. A -<i>small debt</i> they owe, indeed—ha, ha, ha. I have -no doubt those they owe would be glad to make -it small. A promising company!—yes, they promise -every thing, and perform nothing. They -will never divide one-twentieth of one per cent.; -and then, the Mississippi funds, too—I wish I had -said at a small discount, instead of par; and then -I could have fixed it at one per cent., which certainly -would have been small enough, for I can -buy them at 30 off. Confound my avarice—I’ve -made a miss-fire. The fellow is tame as a spaniel—but -then, he’s no fool; how he stared, when -I puffed his State; he didn’t believe me. If he -talks about this, I’m ruined; but then, I’ll deny -it all, when he’s gone.”</p> - -<div class="sidenote">HIS GAME UP.</div> - -<p>When the commissioner went out, he proceeded -to the office of Mr. Bottomly, where, upon -inquiry, he learned the truth, viz: that Mississippi -funds were at 30 per cent. discount, and -that Long Island Railroad was worth 5 dollars a -share, instead of 100. Of course, all further negotiation -with John ceased, and that gentleman -was left to wait the arrival of a commissioner -from some state still farther west, with whom his -persuasive flattery, tempered by experience in -its use, would be more effectual. And here I -leave him, to the disposal of <i>him</i>, whom the -State has adjudged to possess a wiser head than -mine.</p> - -<div class="sidenote">HOW TO “COME OVER” A MAN.</div> - -<p>The commissioner, when he left the office of -Mr. Bottomly, encountered Mr. G., who, as we -have seen, had just left the parlor of the Morrison. -G. seized him by the arm, and insisted that -he should go home and dine with him. It was -the intention of the commissioner, to have gone -immediately to Mr. Bold Eno, whose advice he -now began to consider a salvo against the tricks -and managements of others; not in the least imagining -that, should he once get in the clutches of -that gentleman, it would be like escaping from -the thievishness of apes, to throw himself into the -embrace of a Bear. Such an interview was precisely -what G. desired to prevent, and consequently, -he was persuasive to a degree that common -sense, in polite society, would denominate -rudeness. The commissioner, who, in days gone -by, had often urged the weary traveller to partake -of the bounty of his board, or accept the -shelter of his roof, and whose open heart and -hand still made the luxuries of his table the common -property of his friends, had no idea of such -a perversion of the rights of hospitality, as a prostitution -of them to the sordid purposes of interest. -He was therefore persuaded; and once at -home with G., he was there detained through the -day and evening, and regaled with savory viands—“taste -after taste with kindliest change upheld,” -with flowing nectar, dulcet creams, and the sweet -sounds of music, with beauty’s winning smiles, -till his brain whirled with pleasure and delight.</p> - -<div class="sidenote">GOOD EFFECTS OF HOSPITALITY.</div> - -<p>It is not my business to record what further took -place on that day and evening; how many friends -accidentally came in, to enliven the scene, and -how certain gentlemen, who were introduced to -the commissioner, poured flattery into his ear. -It is enough that the deed was done, and in the -mind of the commissioner, the character of Mr. -G. was established, as the most disinterested, polite, -gentlemanly, agreeable, hospitable, and honest, -of men; and to his guidance he therefore -submitted himself.</p> - -<p>On the following morning, agreeably to the -preconcerted plan, the commissioner, having been -notified, attended at the office of the Morrison, at -the appointed hour: and, in the mean time, -Messrs. G. and S. having agreed between themselves -to raise the amount immediately wanted by -the commissioner, little remained to be done. -Terms were at once agreed upon—two millions of -bonds were deposited in the vaults of the Morrison, -and in a few days the commissioner started -for the State of ——, with 250,000 dollars in -good cash, and highly gratified with his reception -and success. How much of the balance the -State has ever received, the condition of their -treasury will best explain. Certain it is, that -the embarrassment, which, in more than one instance, -has followed similar transactions, has been -severely felt, and will be well remembered by -our Western brethren.</p> - -<div class="sidenote">A WORD ABOUT THE WEST.</div> - -<p>And here—politics aside—a question may well -be asked, which every man can answer for himself, -so far as opinion goes. Have not the inexperience -and inefficiency of some of their agents, -and the villainy and irresponsibility of those with -whom they have negotiated, contributed more to -induce a proposition, in some of the States, to -disgrace themselves by repudiating their debts, -than any want of a proper sense of honor among -the men of the West? If such is admitted to -be the fact, it may, in some degree, excuse the -rashness of their tempers; but whoever entertains -such a proposition, after a moment’s reflection, -would sell—not his own birth right—but -his country and his kin for a morsel of bread.</p> - -<div class="sidenote">THE BUBBLE WELL BLOWN.</div> - -<p>To the uninitiated, it will seem a singular circumstance, -that a company, without a dollar in -their vaults, should undertake to loan two millions; -but they forget the maxim, that credit is -the life of business. This maxim formerly meant, -that a credit, well sustained, gave success to enterprise—but -by its misapplication and misuse, it -has come to a different signification, viz: that -the more one owes, the more he has to sport with; -and it was precisely on this principle, that the -Morrison Kennel contracted with the commissioner. -It was only carrying out, in another -shape, the invention of Nicholas—“always to be -the borrower, when he appeared to lend.” They -had now obtained possession of 2,000,000 of the -bonds of the State of ——, by advancing only -one eighth part of the amount. On the remainder, -they could borrow largely, and they were -now prepared to wing aloft a new flight; their -gaseous inflation borne upward and onward by -the breath of a fame of their own creation; and -they were not long in choosing which way they -should direct their course.</p> - -<div class="sidenote">MYSTERIES LEFT UNEXPLAINED.</div> - -<p>Some evil-minded people will perhaps begin -to surmise that Nicholas was the master-moving -spirit in this matter, and that he was artfully -contriving to get his pay of the Morrison at the -expense of some one else; perhaps of that -nondescript body called the public. Only one -thing, however, is certain; he did get his pay -but as every story has a sequel, this will be -found to have one also. If the Morrison did -not lend him the State Bonds to support his own -credit abroad, and then rally their own, by -negotiating his bonds, appearances and common -fame, whose poisoned breath we admit is no -standard of truth, were certainly against them. -On what principle matters were arranged between -them, is not certainly known; but it is -now matter of history that a system of issuing -bonds, certificates, endorsing and counter endorsing, -exchange and re-exchange, was adopted, -by which they drew together a large amount of -capital, and both became proud examples of the -splendid results which a single inventive genius, -like Fulton in steam, or Nicholas in finance, -may produce. The affection existing between -them was equalled only by the rivalry shown -by each, in offices of kindness to the other.</p> - -<div class="sidenote">CHARITY BEGINNING AT HOME.</div> - -<p>The little responsibilities of endorsing or negotiating -a million or two of bonds or certificates, -were all undertaken and performed as mere -offices of love. What if they were moved to -such kindness by the promise, or the hope, of a -reciprocal support? it but proves the excellence -of their hearts, and the nearer approach to that -command of the Master, that we “love our -enemies,” and it is for such things only that we -have <i>reward</i>. <i>Their</i> duty was to protect the -commercial interests, of which they each considered -themselves as the head; and, therefore, -the first rule of propriety, and the first law of -nature, imposed upon them the necessity of first -taking care of themselves, individually, and their -liberality in this respect cannot be too highly -commended. <i>They</i> had a facility for raising -money that other people had not, and duty required -that <i>they</i> should enable their debtors to -pay them; and if, in the accommodations necessarily -granted for that purpose, the Morrison -should lose a few hundred thousands, nobody -would ever know how it had been lost. The -stockholders, a vagabond race scattered over the -face of the earth, whom nobody knows, -would have to bear it; and, (aside,) perhaps -they could screen themselves, and protect the -Morrison, by throwing it all upon Nicholas, -should things go wrong. After all, what was -such a loss, compared with the importance and -public benefit of supporting the <i>commercial</i> -<i>interest</i>.</p> - -<div class="sidenote">A CURE FOR HYPO.</div> - -<p>It was not to be considered for a moment, -and the wisdom of this conclusion was -shortly made apparent in its effects. One gentleman -is known to have recovered entirely from -a nervous hypochondriacism, so severe, that his -cheek blanched at the sight of his bill-book, and -his rotund proportions shrank to the circumference -of an eel, from the self-denial consequent -upon poverty—or, what is more probable, the -chagrin of disappointed ambition. But we are -told that “the just shall inherit the earth,” and -so it was in this instance; it having been -affirmed, in vindication of this rule, that his reduced -diameter, and assimilation to the animal -aforesaid, enabled him to slide the easier between -the sheriff and his conscience; and while his -neighbors, one after another, were tumbling over -the precipice of ruin, he was saved from being -knocked down in their fall, by quietly reposing -beneath the shade of the Morrison.</p> - -<p>But I am growing too elaborate of description, -and must bring this part of my story to a -close. The subjects and material of the picture -I am contemplating, are so numerous, and fruitful -of thought, that it is difficult to decide which -to choose, or where to stop; but the colors are -too gross, and weary the eye and the mind. -Besides, I hate to individualise, and must request -my readers to bear in mind, that in the characters -here described, <i>nobody</i> whatever is meant; -and should they remember ever to have seen -such a character as either of them, I must beg -them to bury the memory of their follies beneath -their more private and superior virtues, should -they be found to have any; and if they are -penitent, to throw the mantle of charity over -the past, and screen them from the rude gaze of -scrutiny.</p> - -<div class="sidenote">CRISIS APPROACHING—NICK RETIRES.</div> - -<p>The time was now fast approaching when the -boluses administered by the Kennel physicians, -could no longer support the weakened constitution -of Pennsylvania’s great pet; and what was -of more importance, in the opinion of the Kennel -directors, his credit was no longer sufficient to -support <i>them</i>.</p> - -<p>Nicholas the first had retired from his charge, -to fatten upon his laurels; Alas! that they should -have faded so soon, and left him nothing but -dry leaves whereon to feed his morbid appetite.</p> - -<p>Mr. Done-up had succeeded to his place as -chief physician; his patient had already suffered -a relapse, and the symptoms were by no means -favorable. His physicians recommended a more -generous diet, but both shores of the Atlantic -had already been dredged for dainties to satisfy -his hungry maw. Yet still he grew more rabid, -and would swallow at a gulp, what cost the labor -of a year to procure.</p> - -<div class="sidenote">SKULKING.</div> - -<p>In this dilemma, the curs of the Morrison, perceiving -that although they had paid the debt to -Nicholas, contracted under the old direction, -<i>they had, in another shape, just doubled it under -the new</i>—that each of them had served <i>his -own</i> purpose, and that not one of them owned a -dollar in the Morrison or the U. S. B. they all -resigned their seats, and scampered away to -their dens; where, it is to be hoped, that, for the -benefit of the coming generation, they will live -and die in a good old age. And may God them -assoil, the stockholders and creditors of the Morrison -never will.</p> - -<p>As I approach the conclusion of this chapter, my -tale grows sadder, and still more sad. All created -beings and things, which have beginning, must -also have an end. Death lays his unpitying hand -alike on man, and every monument of his greatness.</p> - -<div class="sidenote">A TOUCH OF THE PATHETIC.</div> - -<p>We wonder at the duration of our own existence; -that the term of our lives should witness -the pride of a powerful state; the successful -opposer of the conqueror of armies, and the -controller of millions, to dwell only in memory. -Yet the sad tale has met our ear, that the U. S. -B. of P. is no more.—That pillar of the currency -that some thought was based on a rock of ages—that -nursing mother, who would fain have -gathered the whole nation, as a hen gathereth -her brood under her wings—that giant of ubiquity, -that dwelt in every town and city, a very -mastodon in power, and a mastiff in watchfulness—deserted -by his friends, persecuted by his -enemies, and cheated by all—expired at Philadelphia -on the 5th of Feb. A. D. 1841, after one -long and piteous howl of 20 days and 6 hours, -in the 5th year of his age.</p> - -<p>The power of sympathy is one of the remarkable -properties of life, throughout all animate and -inanimate creation; and it is a circumstance worthy -of note, that, at the moment of his expiring, -every inferior cur, from New York to New Orleans, -gave one loud and piercing yell, and laid -himself down in his den. Throughout the land, -old men bowed themselves in sorrow, widows -wailed in secret, children began to cry for bread, -girls in their teens shed salt tears, lest the fall of -stocks should loose them their sweethearts, and -a thousand and one ancient virgins retired in -privacy to count their rosaries; not with catholic -piety and reverence, but to see how much remained -in the stocking.</p> - -<div class="sidenote">A SHOW OF REASON.</div> - -<p>My readers will be surprised, that I should apply -the incongruous and unmusical name of -bull dog to the U. S. B.; but I must beg them to -recollect that I am in Wall-street, that this is -Wall-street language, and that no other would -be understood here. And as this was the name -under which we first made his acquaintance, for -the sake of consistency, I must carry out the -figure. And to redeem my promise, it only remains -that I should give some account of his disease.</p> - -<p>For the benefit of science, and the coming generation, -it is to be regretted that those who -have his body in keeping, have refused a post-mortem -examination.<a id="FNanchor_3_3" name="FNanchor_3_3"></a><a href="#Footnote_3_3" class="fnanchor">[3]</a> Mr. Done-up, the chief physician, -insists that he is not dead, and that he -will have him kept for a year and a day, for experiments -of the galvanic battery, electro-magnetic -suspension, and such other inventions and -restoratives as his skill may suggest. But it is -the opinion of Wall-street physicians, that the -doctor will never be able to do more than to embalm -his body.</p> - -<div class="sidenote">DISEASE—ITS NATURE AND CAUSE.</div> - -<p>It is the opinion, also, of those who have had -an opportunity of observing his symptoms, that -his disease was a species of cholera, a sort of internal -evacuation; or, to be more particular in explanation, -that while promises were going out -one way, the specie was going out the other; -and that the too frequent gorging of stocks, -state bonds, cotton speculations, &c., had the -effect, like Major Downing’s elder-bark tea, to -work both ways. One singular circumstance -has attended him throughout; which, as it is a -reversal of the order of nature, is worth mentioning. -In his case, <i>corruption</i> took place long before -death, and <i>mortification</i> afterwards. His -disease is said to have had its origin in an overheating -of the blood, in the great contest about -the deposites. But as this is a matter of some -dispute, I leave the point to be settled by the -great successors of their “illustrious predecessors”—Dr. -Done-up of Philadelphia, and Dr. -Ran-down of Kinderhook, both of whom, it is -supposed will now find sufficient leisure, amicably -to settle their differences.</p> - -<div class="sidenote">PRACTICAL HINTS.</div> - -<p>My friend, the relator of the foregoing, here left -me abruptly again, but as I am sure to find him -in the same place to-morrow, I shall not fail to -make him a visit. What the subject of his conversation -will be, I cannot tell, but as he has -found me a willing listener, I feel sure that he -will be as communicative as ever.</p> - -<p>It was my intention, at the close of this chapter, -to have expanded a little on the great value -to the public, of corporations, when in the hands -of men of talent, property, and credit, who can, -without responsibility to themselves, act for the -benefit of the stockholders. But, as I have already -detained my readers too long, and since -people will think for themselves, right or wrong, -if they ever chance to think at all, I need give -no further evidence of their utility, and entire -safety in such hands, than the following facts. -Among all the officers and directors of the Morrison -Kennel, and the U. S. B., in which about -forty millions of dollars have been totally sunk -and lost, not one of them ever failed, or lost a -dollar in his individual capacity; and, had the -stockholders loaned their capital directly to the -merchants, through whom it will perhaps be -said it has been lost, instead of investing it in -those stocks, they would have saved in the last -25 years, only about 50 millions of dollars, in -their expenses, investments in unconvertible property -for their splendid accommodations, and -losses consequent upon their management to sustain -themselves in a ruinous business.</p> - -<div class="sidenote">THE WAY OF SAFETY.</div> - -<p>But, since commerce has so organized herself, -that such institutions are necessary, if stockholders -will not look after their own interest, if -they will allow their agents to pursue their own -pleasure without supervision, or accountability—if -they will not employ as their agents, such men -as will have some reference to a good conscience, -and common sense, something besides selfishness -in the performance of their duty to their -principals, and the public, they deserve to lose -their money.</p> - -<div class="sidenote">WHAT EXPERIENCE SAYS ABOUT IT.</div> - -<p>I have no wish to appear the censor of the past, -or to make wise saws for the future. But for the -benefit of those who may have a little money -left to invest, I will give them, in few words, the -experience of thirty years. Every institution, -established for the purpose of creating capital, instead -of investing that already possessed—every -one established for the purposes of speculation, -or monopoly, of any kind—or for the promotion -of the interest of any particular individuals—every -one which contracts debts against itself beyond -the immediate means of paying, and thus -loses its independence of character—and every -one which perverts its means from the legitimate -use, which, on a fair construction, was contemplated -in its creation—either has ruined, or sooner -or later will ruin, itself, its stockholders, and -its customers.</p> - -<hr class="chap" /> - -<div class="chapter"> -<h2 class="bold nobreak">CHAPTER IV.</h2> -</div> - -<p class="center narrow small bold">SHOWING HOW STOCKS ARE BOUGHT AND SOLD—HOW -BROKERS GET OUT OF A BAD SPECULATION—HOW -MONEY IS SOMETIMES MADE BY -DOING A LOSING BUSINESS—HOW DISCOUNTS -ARE MADE AND OBTAINED, &C. &C.</p> - -<p>Before proceeding to relate the conversation of -my friend this day, I must first state a few facts, -for the information of those who are not already -acquainted with them.</p> - -<div class="sidenote">THE LAWLESS HAVE LAWS.</div> - -<p>The Board of Brokers have many rules for -their government; one of which is—that, when -a broker is employed by another person to buy -or sell stock on time, he has the right to give the -name of his principal within twenty-four hours, -and then, if the other party is not satisfied with -the security, he is required to deposite ten per -cent., or the contract is cancelled. If the broker -so employed, does not give the name of his principal, -he assumes the responsibility himself. All -contracts for the purchase or sale of stocks, on -time, are, in themselves, illegal; the contract -cannot be enforced by any law, and the only security -that operators have for their fulfilment, is, -that rule of the board which expels a member, if -he fails in his contracts. Just as all gamblers -may be supposed to expel a man from their society, -who takes up his winnings, but never pays -his losses: or, upon the same principle on which -there is held to be honor among thieves—whoever -takes more than his share, is expelled from -the gang.</p> - -<p>Stocks sold on time, are seldom delivered; but, -when the contract is mature, the difference between -the sale and the average market value then, -is paid over by the loser.</p> - -<p>There are a few men of property, not brokers, -who occasionally buy fancy stocks in Wall-street, -when money is scarce, and sell again when it is -more plenty, and reap a profit by it; but their -number is so small, that they have never attained -the respectability of any distinguishing name.</p> - -<div class="sidenote">BULL-BACKERS AND BEAR-TRAPS.</div> - -<p>There is a larger class, who sometimes control -a good deal of money, and who make speculation -their business. These generally unite in squads, -for the purpose of <i>cornering</i>—which means, that -they first get the control of some particular stock, -and then, by making a great many contracts on -time, compel the parties to pay whatever difference -they choose—or rather, I should say, whatever -difference they can get—for they sometimes -overrate the weight of the purse of those they -contract with. These persons are denominated -Bull-backers, or Bear-traps, according to the nature -of their operations. The first signifies that -they have bought stock largely, and hold it; and -the second, that they have sold stock which they -have not got, and trust to circumstances to be -able to supply it. The brokers, themselves, in -these cases, are called Bulls and Bears.</p> - -<p>There is another, and a much larger class, -who, deceived by appearances, come into the -market without any knowledge of it, and generally -lose what they invest. These are called -Flunkies.</p> - -<p>With this elucidation of terms, I am ready to -proceed with my friend’s narrative, whom, true -to his habit, I found at the spot, and anxious for -a listener; and, from the nature of his remarks, -I am induced to believe that he suspected me of -some desire or design to enter on the business of -stock jobbing.</p> - -<div class="sidenote">HOW TO QUALIFY FOR WALL-STREET.</div> - -<p>“If,” said he, “you have any intention of entering -into business in Wall-street, you ought -first to know, that, although there are many respectable -men and firms here, who have accumulated -property and credit, by a long course of -industry and application, as in any other branch -of business, there is, nevertheless, a very large -class, who look upon every new comer as a fit -subject for their stratagems. And very few such -escape one of two extremes: either the loss of -their property, or a sacrifice of conscience, honor, -honesty, and every noble principle, to the mean -and sordid one of getting money. The first -sacrifice you would be called upon to make, -would be, confidence and respect towards your -neighbors—you must disbelieve every thing you -hear and see, and look upon every one as having -a design on your purse: no very comfortable -position for an honest man.”</p> - -<div class="sidenote">FANCIES BETTER THAN SOUND STOCKS.</div> - -<p>A very large portion of the stocks termed -‘fancies,’ and in which they mostly deal, are entirely -worthless in themselves; unlike articles -of merchandise, which may be seen and examined -by the dealer, and which always have an -intrinsic value in every fluctuation of the market, -these stocks are wholly wrapped in mystery; no -one knows any thing about them, except the officers -and directors of the companies, who, from -their position, are not the most likely men to tell -you the truth. They serve no other purpose, -therefore, than as the representative of value in -stock gambling, which might just as well be -wholly imaginary, and of any other kind, as -these; and you would soon learn, that the reason -why there is so much dealing in <i>depreciated</i> -stocks, and so little in those which are solvent -and at par, is this: Nearly all the fluctuations in -their prices, are artificial—a small fluctuation is -more easily produced than a large one, and as -the calculations are made on the par value, a -fluctuation of one per cent. on a stock worth only -twenty dollars a share, is just five times as much -on the amount of money invested, as it would be -on a par stock. Consequently, if a ‘Flunkie’ -can be drawn in, he may be fleeced five times as -quick in these, as in good stocks.</p> - -<div class="sidenote">HOW FALSE LIGHTS ARE SHOWN.</div> - -<p>The arts and tricks resorted to, in this kind of -gambling, are the same as in all others. When -the brokers and speculators engaged in it, have -no customers on whom to practice, and each one -is shy of the other, they lovingly play among -themselves. To keep up appearances, large -transactions take place, which, by mutual understanding, -are not to be fulfilled, and like children -at chequers, when the game is out, the kernels -are thrown into common stock again, and a new -one begun. And, strange as it may seem, these -transactions are published in all the commercial -newspapers, and go forth to the world as the evidences -of value, and the condition of the money -market, to deceive the unwary. Every editor, -who properly regards the welfare of the community, -over which his position gives him great influence, -ought at once to refuse the publication of -any sale of stock, but such as are of standard and -intrinsic value; for it is by these means, that so -many are drawn from their regular pursuits, into -ruinous speculations; when, if nothing but truth -were told them, they would stay at home, and -save their money—to say nothing of the mischief -of idleness and dissipation, which the habit of -gambling engenders.</p> - -<div class="sidenote">WHO IS TO BLAME.</div> - -<p>I must not be understood as applying what I -have said, or shall say, to every man in Wall-street: -far otherwise. Nor would I be understood -as applying it to brokers exclusively, or to any -one in particular. I only say, that if the coat I -shall cut out suits any man’s shape and dimensions, -let him put it on. On the whole, the -brokers are less to blame than those who support -them; and, if left to themselves, their trade -in fancy stocks would soon cease. If people -will gamble, there must be some place to do it, -and some persons as directors, agents, and co-partners -in the business; and, until the people -are reformed, it is doubtful if Crockford, in London, -and the brokers in Wall-street, are not more -honest and respectable than their supporters.</p> - -<div class="sidenote">SECRETS LET OUT.</div> - -<p>Stock gamblers of very small capital, often -have contracts pending, of many hundreds -of thousands of dollars—they sometimes operate -for a rise, sometimes for a fall, of prices. In the -first case they buy deliverable at a future time, -at a certain price. In the second, can they -sell in the same way. And, in either case, their -profit or loss depends on the rise or fall of the -stock bought or sold; as, indeed, all their profits -do; for there is no such thing as a dealer’s profit -for the labor and risk of distribution, as in merchandise. -The whole process is a mere betting -upon the future value. In this way, it will be -seen that the number of chances for gain or loss -is just doubled, as compared with dealers in -merchandise, who always get what they buy, -and sell only what they have got. They frequently -make a condition to their time-contracts -of “buyer’s option,” of “seller’s option,” which -means, that the person to whom the option is -given, may, at any time within the period of the -term of sale, by giving one day’s notice, call for -the stocks, and this enables them to take advantage -of any temporary fluctuation which may -happen, or which the parties interested may be -able to create. These circumstances easily explain -the reason why fortunes are often so suddenly -made or lost in stocks. No system could -be devised better calculated than this is, to excite -a gambling propensity, and afford an opportunity -for the exercise of ingenuity and cunning.</p> - -<p>“But,” said my friend, “lest I should weary -your patience, by too much generalizing, and seriousness, -I will inform you how Mr. Tell-it got -out of a bad speculation.”</p> - -<div class="sidenote">A NO. 1. CHARACTER.</div> - -<p>Mr. T. is a regular descendant of Mr. Jacob -Broker, of the seventh generation, and one that -does honor to his ancestral renown. No greater -contradiction of terms can possibly be used, -than exists between his name and character, for -he was never known to tell a thing that he -knew, however trifling. His conversation and -answers are wholly by interrogatory. When -asked at what price he will sell, his answer is, -“what will you give?” and he never commits -himself in a promise, without first receiving a -promise of another, or, what suits his taste much -better, something tangible in its stead. This -peculiarity of mind has led to one great virtue, -to which I bear willing and honorable testimony—he -was never known to tell a lie. If people -take false impressions, it is because they assume -false premises—if they indulge in wrong opinions, -it is because they have not been diligent -enough in search of truth—and, as he is a competitor -for the great prize of life, he cannot spend -his time to correct other people’s deficiencies.</p> - -<div class="sidenote">HIS CHARACTER.</div> - -<p>His knowledge of men and things is regulated -by their <i>properties</i>, and his estimate of the proper -pursuits of life has received a bias from his -literal construction of the Apocalypse, in which -the streets of the new Jerusalem are described -as being of pure gold; and he appears to regard -the possession of it here, as the surest passport -on his way there. In exactness and punctuality, -he is a model for imitation. He generally -operates “for a fall,” and, like his great -progenitor, his interest compels him to take pleasure -rather in demolishing than in building up. -His assiduity and skill are such, that, united -with his great physical force, mechanically denominated -“<i>a purchase power</i>,” he can tear -down more in one week, than the whole fraternity -can build up in a year; and he has been -known to topple a Bank, an Insurance company, -a Railroad, or a whole bevy of brokers, by -a single application of his lever.</p> - -<p>But such is the variety and opposition of interests -created by the multitude of heads, and the -multiform opinions entertained by them, the -circumstances of which are varied by every -transaction that takes place, of which none but -those concerned in them can have any control, -that the wittiest sometimes get outwitted, and -the strongest outdone.</p> - -<div class="sidenote">GETS TRAPPED.</div> - -<p>Not long since, a squad of Bull-backers, had -for some months been, secretly, and unknown to -Mr. T., getting control of a certain stock, intending -to “corner” some one with it; and, aware -of Mr. T.’s tearing down propensity, after due consultation, -they laid a scheme whereby to entrap -him. Deputing an agent of well known -paucity of dollars, they sent him to Mr. T. to -get a loan of money on a large amount of the -aforesaid stock. The loan was completed for -the term of 90 days, Mr. T. advancing two -thirds the nominal value. Whether he had any -ulterior object, or not, in lending the money is -not known; but, as he seldom made such loans -when such object did not sooner or later disclose -itself, it is suspected, that in this case, he looked -beyond the present bargain, and, believing that -his debtors would be obliged to sell the stock he -held, for what it would bring, to pay his loan -when due, he commenced his operations for a -fall in the stock, by selling it all out. It so happened, -however, that the Bull-backers aforesaid, -were the buyers of it, and this was just the snare -into which they desired to lead Mr. T., knowing -that when their agent should pay up his loan, -and call for the stock, T. would be obliged to -buy it of them, at such increased prices, as they -should dictate. And Mr. T. was soon made -sensible of his condition, by his debtor calling -long before the time, and offering to pay up the -loan, and withdraw the Stock. He was certainly -surprised, but his quiet and collected manner -betrayed no emotion. And here I must render -another tribute to his character. He certainly -bears his profits and losses well; as great men -are said to bear their honors and misfortunes, -with unassuming and unrepining philosophy.</p> - -<p>The discovery of his situation however, called for -the exercise of his sagacity, and he modestly declined -receiving the money, only saying, that he -preferred it should rest for the time agreed on.</p> - -<div class="sidenote">IN A QUANDARY.</div> - -<p>As soon as his debtor had gone out, he thrust -his hands in his pockets, his eyes resting on the -floor in front, and sticking out his lips, in a way -which no other man does, he muttered to himself -“I’m in a bear-trap—this won’t do. The -dogs will ‘come over’ me. I shall be mulct in a -loss. But I’ve got time—I’ll turn the scale, -I’ll help the bulls, operate for a rise, and draw -in the flunkies.”</p> - -<p>These men, I should have said before, have -no other rule of judgment for their operations -than to follow in the wake of some great and -successful speculator. Mr. T. very properly regards -them as sheep for the slaughter; and although -the milk of human kindness certainly is -a component of his heart, he makes no scruple -of sacrificing a score of them at a time. Why -should he? for killed and eaten they certainly -will be by somebody: but they are a genitive -race, and re-produce as fast as destroyed.</p> - -<div class="sidenote">WORKS OUT BY DRAWING OTHERS IN.</div> - -<p>Mr. T. had need of no further exertion, to accomplish -his purpose, than to make his course -<i>manifest to them</i>, they all followed his apparent -lead, as sheep will follow one another over a -wall, if they all fall into a ditch on the other -side. Even the wise man of Israel, by his own -confession, did not know every thing. “The way -of the serpent on the rock was too wonderful -even for <i>him</i>,” and so in this case; the way of -their leader was to them, “past finding out.” But -the secret of the management necessary, in this -case, is, to do just the opposite of what one appears -to do. Mr. T. therefore continued to -operate visibly for a fall, by selling out small -sums for future delivery, which he took care to -have trumpeted by another, while he was very -reserved himself. He thus drew all the “flunkies” -after him, as <i>they</i> supposed, while he was in -reality the purchaser, through his agents, of all -that they contracted to sell, and by this means, -before the expiration of the loan, he was in possession -of the stock to deliver, with a difference -of ten thousand dollars in his favor, against the -flunkies.</p> - -<div class="sidenote">EVILS OF TALKING IN SLEEP.</div> - -<p>These things would never have been -known, but that T. sometimes talks in his sleep, -and while chuckling over the ruse de guerre, he -recounted the whole story, and was overheard -by his chum, who thought the joke too good to -be lost.</p> - -<div class="sidenote">HOW BROKERS SOMETIMES FAIL.</div> - -<p>And now, said my friend, as I am in the way -of story telling, I will tell you how money has -been made, by doing a losing business. It will -have been seen already that the failure of a stock -broker, does not involve commercial dishonor. -It is a mere acknowledgment, of his inability to -pay his <i>bets</i>, for debts they are not. When this -has happened, he suffers the penalty of being expelled -from the board. It then becomes the interest -of those to whom differences are due, (the -term used for stock debts,) to get what they can -and discharge him. The amount he will be -willing to pay, depends on three-fold circumstances—the -amount of means he possesses—his -own sense of obligation—and the credit and -advantages he is to gain, by being reinstated. -And a settlement once made with his creditors, -it becomes the interest of all, to reinstate him; -for society becomes disjointed, by losing its prominent -members.</p> - -<p>When a broker operates for others, as his -principals, he usually requires a deposit of ten -per cent., as security against loss. They generally -operate in different kinds of stock, some of -which turn favorably for their interest, and the -differences are in their favor. In others the difference -is against them, according as their risks, -or their judgment, may have proved favorable, -or unfavorable. Commonly their operations are -very large in amount, and it sometimes happens, -that the fluctuations are greater than the security, -and by the occurrence of some unforeseen -event, like the recent failure of the United States -Bank, a fair adjustment of the differences against -them, would ruin all the parties, consequently, -one or all of them must be sacrificed.</p> - -<div class="sidenote">HOW THEY GET UP AGAIN.</div> - -<p>Expediency, -and interest dictate that it shall be but one, -and that one the broker. He consents, because -it involves less dishonor with him than the -others. They can be screened by his defalcation, -and, it is equally his interest to take care of -his customers, as himself. And if he has not too -delicate a conscience, (and all men have not,) -the way is now open for the following management. -When differences are in his favor, he may -avow his principals, and the losers must pay, or -themselves suffer expulsion from the board. -Where the differences are against him, he may -keep the responsibility to himself, and as they -are very large, he will be able to compromise -them, for the ten per cent. deposited, and perhaps -less, if he has not been careful to exact the security. -And when the whole is adjusted, if the -differences collected exceed the ten per cent. -paid, there is a profit to divide, among them all. -And, if these operations are not sometimes performed -with a less scrupulous regard to figures, -suspicion has been guilty of a libel. I do not -say, that this is a common practice among the -brokers, but the power of doing, and the facility -of screening it, are equivalent to an invitation to -rogues to embrace it, and all the world knows, -how ready <i>they</i> are to seize an opportunity.</p> - -<div class="sidenote">AMUSING OPERATIONS.</div> - -<p>Although stock-speculators, generally, affect -to be very secret, as well as very cunning, in -their dealings, they frequently contrive to find -out each other’s business, and the manner in -which their liabilities sometimes develope themselves -is amusing. It lately happened that two -speculators, Mr. A. and Mr. B., had been operating -in different kinds of stock, and each of -them thought he had a considerable amount of -profits to collect, and losses to pay; and the -whole having passed through a broker’s hands, -neither of them was supposed to know who the -principals were. Circumstances led to a comparing -of notes, when it was found that their -claims on each other were so nearly balanced, -that they settled it by offset. It is believed that -at least one of them intended to collect his profits, -and back out of his losses; but that the -other, more cunning than he, had contrived to -take the place of a third party, (Mr. C.,) who -was the real seller of the winning stock on his -side, and when a settlement had been made between -A. and B., that B. and C. divided the -amount of profits on C.’s stock between them. -By these means, the third party, C., was enabled -to collect half of a profit, which he would never -have got otherwise, and the other, Mr. B., was -saved paying half a loss, which he would otherwise -have had to pay, or to sacrifice his broker, -who, between them both, was saved from a -dilemma.</p> - -<div class="sidenote">WALL-STREET NOT A SAFE PLACE.</div> - -<p>“And now,” said my friend, “unless you can -follow all these windings, and are ready to turn -as sharp a corner as the rest of them, let me advise -you not to stay long in Wall-street; for, -depend upon it, while you are here, you -are in the midst of temptation, and no man ever -trifled long with that, and came off with his -honor unscathed, and his heart not indurated.”</p> - -<p>I thanked my friend for his advice, and replied, -“that I had already determined, that I -could never aspire to a professorship, nor even a -pupillage, in a school requiring such active energies -of body and mind.”</p> - -<p>But my friend continued, and, taking out his -watch, remarked, that, as he had yet time to -spare, if I pleased to listen, he would tell me -something about the manner in which discounts -were sometimes made, and obtained. And, -willing to be informed of all particulars, in -which I had now become deeply interested, I -signified my wish to hear how these important -appendages of trade are managed.</p> - -<div class="sidenote">FICTITIOUS CREDIT.</div> - -<p>“Young men,” said he, “often mistake the -basis of their own credit, and are flattered by -the freedom and liberality with which money -is sometimes lent them. They could not possibly -commit a more fatal error, and this arises -in a great degree, perhaps, from the false estimate -of what is commonly called money.”</p> - -<p>The system of Bank credit, which has so -widely obtained in this country, and which -allows of a circulation of their notes, or bills of -credit, as a substitute for money, has been productive -of untold benefits. But its long success -has led to its abuse; and the manifest advantage, -to those who held the privilege, has led -designing men to seek an influence in its control. -In times of ease and plenty, these gentlemen -are ever ready to exchange their credit for -the substantial securities of the merchant, receiving -therefor the premium of interest, as -their profit. These Bank credits, being readily -convertible for the payment of debts, entice men -of small means into an enlarged business.</p> - -<div class="sidenote">COMMON MISTAKE.</div> - -<p>The error of young merchants seems to have -been, an appreciation of Bank issues, to be the -same as money, instead of an equivalent in credit, -and a discount obtained, as an exchange of -securities for cash, instead of a new debt contracted. -They have overlooked the fact, that -the same circumstances that will cause distress -to them, will also cause it to the Bank, and bring -with it a curtailment of their accommodations, -just at the time when their wants require their -enlargement. Their independence is gone, as -soon as they are obliged to solicit a favor, and -if in the hands of heartless and designing men, -this is just the time when advantage will be -taken of their necessities, as long as their securities -are good; and they will find, when it is -too late, that they have leaned on a broken -reed.</p> - -<div class="sidenote">HOW THEY GET SERVED.</div> - -<p>The habit of merchants leaning on a Bank credit, -and considering it better than their own, -with the dependence growing out of it, has enabled -the latter, by common consent, to throw -around it a sacredness of character that does not -attach to credit in any other place or form; and -instances are of daily occurrence, where men -do injustice to a neighbor, to enable them to pay -a note at the Bank; while the latter, to protect -themselves, will sacrifice a score or two of their -customers, without mercy or compunction. -When men become necessitous, they are afraid -to let it be known out of doors, because it will -injure their credit; and they will make almost -any sacrifice in private, to save such a mortification. -And to this fact, designing and unprincipled -men, who, in times of pressure, convert -the capital of a Bank into a means of preying -upon their customers, owe their security in doing -it; when, if the undisguised particulars could be -known, they would immediately lose their charter -and their reputation.</p> - -<p>The way these things worked a few years -since, in the Stork Bank and the Water Works -Bank in this city, is worthy of being told by way -of illustration.</p> - -<div class="sidenote">HUNGRY BEGGARS.</div> - -<p>The cashiers of these banks thought themselves -so firmly seated in power, that nothing -could move them. By way of brevity, I will -call them Jack and Bob; but let no one suppose -that the impudent familiarity of using these barbarous -corruptions of a Christian name, was ever -permitted to any but themselves. The bad times—which -in business parlance, in its proper construction, -means, that period of time when the -mischiefs designed by one party, or arising from -the follies and imprudences of the other, are in -course of developement—brought crowds of anxious -applicants daily to the counter of the bank. -They arranged themselves in rows along the -walls, or by the side of the counter, with anxious -faces, each one waiting for his turn, and as each -received a negative, his eye flashed with anger, -or his cheek blanched with despair; and while -others would march up, to prefer their own -claims, in the vain hope of better success, those -behind occasionally peered out from the long line -in which they stood, and cursed the gravity and -self-possession of the cashier, while he held a long -parley with his customer; and the last in the line -sometimes betrayed, by the uneasiness of his -limbs, that the vulgar saying of “the <span class="nowrap">d——l</span> take -the hindmost,” was uppermost in his thoughts.</p> - -<div class="sidenote">MONEY MADE BY FEEDING BEGGARS.</div> - -<p>When men of business become dependent on -borrowing, to meet their engagements, the daily -supply becomes as necessary as daily food. The -proverb tells us that a hungry man will break -through a wall; and, to use a fashionable phrase, -of some who do not understand their mother -tongue, the cashiers were “<i>au fait</i>,” in this -principle of natural philosophy. Their eager -eyes scanned with solicitude the cadaverous countenances -of the hungry applicants, to see where -their scanty means of supply might be most <i>profitably</i> -applied, and when occasionally, some one -received <i>permission</i> to call again when the press -was over, hope at once beamed in his eye, a smile -played gently about his mouth, and had the cashier -been a lady, he would have fallen on her -neck and kissed her. Punctual to the hour, he -returns and receives from the complacent lips of -the cashier, the joy-giving intelligence—“Mr. A., -we have so great a press upon us just now, that -we find it impossible to meet the demand for discounts; -but, if it will oblige you, I will take your -notes at seven per cent. interest, and give you a -check on Mobile at sight, and at par, in payment.”</p> - -<p>“But I do not know what to do with it,” says -Mr. A. “How will that relieve me?”</p> - -<p>“Well, I don’t know, Mr. A., but I have understood -that the Waterworks Bank is buying at -a discount of five per cent. That is rather a -large sacrifice to make, but it is the best that I -can propose.”</p> - -<div class="sidenote">THE DEATH-STRUGGLE.</div> - -<p>“Hang the five per cent.,” thought A. to himself, -“it will cost me but a hundred dollars, and -I can pay my note;” and, to him, a day’s salvation -from bankruptcy, was an age of happiness. -The proposal was eagerly embraced, and while -the Waterworks was buying the checks of the -Stork on Mobile, Savannah, Columbus, &c., the -Stork was buying those of the Waterworks; and -mischief-makers have reported that they were all -exchanged in the afternoon.</p> - -<p>Mr. Eavesdropper, whose name implies that -he attends more to other people’s business than -his own, reports having overheard the following -dialogue between the cashiers, at their afternoon -meeting.</p> - -<div class="leftnote">A BRACE OF JACK-ALLS.</div> - -<p><span class="smcap">Jack.</span> Well Bob, this business works well -yet, I have pocketed five hundred dollars, -to day.</p> - -<p><span class="smcap">Bob.</span> Yes, Jack, sure, and it works well at -present; but, upon me soul, I don’t see the end -of it, and if we were exposed, we should make a -dangling appearance, if we were even in the -ould country.</p> - -<p><span class="smcap">Jack.</span> Never fear, Bobby—a man never -dangles here, as long as he has got money; and -besides, the dogs dare not whisper a word; their -lives depend on their credit, as the only means -of supporting them, and they would be cut up -like mutton-chops in the market, the moment -they lisped their own secret.—We are safe.</p> - -<p><span class="smcap">Bob.</span> Troth Jack, you’re always awake, but -I’ve gone so deeply already, that I couldn’t pay -a draft to day from the Secretary at Washington, -an’ if it were not for that brother of mine, -with the Scotch christian name, who is busy at -Washington, hang me if I think I could stand -this.</p> - -<p><span class="smcap">Jack.</span> Mr. Cashier, excuse my departure -from our usual friendly familiarity, but, depend -upon it, the authorities of the country will never -oppress, in their individual circumstances, those -who are legitimately engaged in support of their -authority.</p> - -<div class="leftnote">HOPES AND COMPLIMENTS.</div> - -<p><span class="smcap">Bob.</span> Arragh, Jack! and you’re complimentary—but -the marquis cares nothing about your -ragamuffin authorities.</p> - -<p><span class="smcap">Jack.</span> No Bobby, true, but he cares about -your dividends, and that is what you are to -take care of.</p> - -<p><span class="smcap">Bob.</span> Sure and I’ll take care of that, by the -faith of me, and how much shall <i>we</i> make, -Jack, by this management?</p> - -<p><span class="smcap">Jack.</span> Why at least fifty thousand a piece, -if nothing occurs till the excitement is over.</p> - -<p><span class="smcap">Bob.</span> If nothing happens, aye, and there’s the -rub, Jack. I’m afraid you’ll bleed some of the -patients to death.</p> - -<p><span class="smcap">Jack.</span> Never mind, Bob, if we see them fairly -gasping, give them another dose, and take double -fees before hand. We have good security -for the past already. Good evening Bob.</p> - -<p><span class="smcap">Bob.</span> Good evening to ye Jack. Long life to -ye. And when ye die, may ye have an uncommon -long funeral. And as Jack departed, he -muttered, “and if them ye murther are mourners, -by me sowl it will be long enough.”</p> - -<div class="sidenote">A PROBLEM.</div> - -<p>These things may be all slander, but still, -there are some who believe that a bank, which -in the course of twelve months, divides ten per -cent. profit to its stockholders, and accumulates -a nominal surplus of twenty per cent. more, -could never have done it by loaning money at -seven. And it certainly is a problem in arithmetic, -which requires some new devise of -figures to solve.</p> - -<p>The interest of description, would be lost in -sameness of character, should I attempt to describe -all the ways in which the dependent borrowers -are made the chief sufferers, to gratify an -undue propensity of the lenders to accumulate.</p> - -<div class="sidenote">A DEFAULTER.</div> - -<p>And I will only add what is well known here, -as a warning for the future to those whose -avarice outruns their integrity, that these banks, -like the repentant harlot, have long since “wept -by the willows,” for their departure from their -first love; and the only thing I know against -their present government or officers is, that the -president of one of them, in paying over about -one hundred and fifty millions of dollars, was -detected by General Jackson in being a defaulter -of eleven cents, but as the general could not tell -exactly where the default lay, he escaped all -other punishment, but the natural one of being -removed from his office, to make room for others; -who, if they were in default at all, would make -it sufficiently palpable to avoid the necessity of -searching out these contemptible digits.</p> - -<hr class="chap" /> - -<div class="chapter"> -<h2 class="bold nobreak">CHAPTER V.</h2> -</div> - -<p class="center narrow small bold">HISTORY OF A DEFALCATION.</p> - -<p>On meeting my friend again to day, I was as -much amused as ever with his humor, in describing -a public defaulter. And as he makes his -own reflections upon it, I will without farther -preface give his own words, as near as I can recollect.</p> - -<div class="sidenote">PUBLIC DEFAULTERS HONEST MEN.</div> - -<p>“When we parted yesterday” said he, I was -speaking of defaulters. The history of a public -defalcation, beginning with its inception, and -carried through its “rise and progress” to a final -developement, is full of amusement and instruction, -and if more thoroughly understood, the public -mind would be disabused of its prejudice -against the innocent authors of them. A public -defaulter, is the most honest man in the world. -If any other proof were necessary, there is abundance -at hand. But the law of the land declares -all men honest, until convicted of guilt, and its -argus eyes would surely discover the truth, if it -were otherwise. The history of the country -gives no instance of a defaulter ever being tried, -or committed. A public defaulter, is a true republican, -an advocate and supporter of the people’s -rights, who scorn to be controlled by laws, -not of their own choosing. He is in favor of -the distribution of surplus revenue, and he takes -the best and shortest method to accomplish it. -He saves congress the trouble of legislating about -it, and the people from quarrelling about its appropriation. -He is a public benefactor, and distributes -his wealth without stint to the poor, -especially if they have a vote to give; provides -accommodations for public meetings, at his own -expense, is a leader in their debates, a firm supporter -of the government, a liberal supporter of -trade, a patron of the arts and sciences, and a -leader in fashion. He promotes the interests of -commerce, and sustains stocks, in his untiring -efforts to make up the deficiencies, which his -liberality has created, and when he has done all -the good he can here, he goes abroad at his own -cost to acquire new treasures of knowledge -wherewith to benefit his countryman.</p> - -<p>The baseness of ingratitude, and the malice of -envy, could never be more manifest, than in the -persecution of such a man. Yet, how strange -it is! There are some men living, who do not -hesitate to heap calumnies on his head. But if -we go strait onward, those prejudices will soon -be done away. The frequent occurrence of default -in this age proves its enlightened character, -and that intelligence is fast dissipating the benighted -superstitions of ignorance.</p> - -<div class="sidenote">THE TRUE LIGHT.</div> - -<p>The people of Wall-street, are more enlightened -in this matter, than the croaking herd of -business men, and property owners are, who are -always afraid of being taxed to make up deficiencies. -They regard such a thing as the husbandman -does the rain from heaven, watering -the parched earth, causing verdure and blossoms -to spring forth, in all their beauty, and timely -fruit to satisfy their hungry souls. And when -the wisdom of government is exercised, in the -appointment to the emoluments of office, and the -care of public monies, of one of their true friends, -who is ready to sacrifice every thing, even his -“sacred honor” to promote <i>their</i> success, the -event is hailed with little less than a bacchanalian -triumph. They know their men, and they know -enough of human nature to know, that, he who -has once been a stock gambler, will be again, as -soon as he has the means of becoming so. And, -although they may have plucked him to his last -pin-feather, and then left him exposed to the -cold frosts of a world’s charity, as soon as his -commission is in his pocket, their respect and -gratulations know no bounds.</p> - -<div class="sidenote">MORE OF DEFAULTS.</div> - -<p>A public default, is a thing which seldom -stands by itself. There are many inwoven secrets, -which do not meet the public gaze. The first -stimulating cause,—the arts to prevent disclosure, -and the natural sympathy between the -friends of the appointor, and appointed, are rarely -scanned. When truth bears rule, and honest -men are in power, the checks, and balances are -such, that one alone would not long maintain -his secret. And as this seldom happens, the next -point of wisdom is, when disclosures are made, -so to arrange matters, that the crimes of all may -be visited on the head of but one; and he, instead -of suffering by the unrelenting knife, and having -his carcass roasted on the altar of sacrifice, may, -like the scape-goat of the Mosaic law, be turned -into the wilderness, to bear all their sins beyond -the camp.</p> - -<div class="leftnote">JACK DOWNING IMPLICATED.</div> - -<p>I cannot better describe to you, the beginning -and conduct of a great default, than by reading -a detected letter, from a notable correspondent -of General Jackson’s, who, from his great personal -intimacy, could not have failed to know -the truth.</p> - -<div class="sidenote">JACK’S LETTER <span class="nowrap">TO ——</span></div> - -<p>Perhaps, as this letter somewhat implicates, -the redoubtable major in an infidelity to the -bank, and the government, should it ever come -to his notice, he may insist that it is “Kounterfit;” -but as it was by mistake, inclosed in a package, -and directed to a friend, by the first recipient, -when he was leaving in haste, I have no -doubt of its genuineness. And as the major’s -fortunes are known to have risen nearly in inverse -proportion to the fall of the bank, and -Apalachi lands, even his friends will find it difficult -to disbelieve it. Never having had an opportunity -to return this letter, I make it public -now, that justice may be rendered to all the -parties.</p> - -<blockquote> -<p class="align-right right-indent-2em"> - <i>Washington</i>, 1835. -</p> -<p>To squire S——<br /> -<span class="pad-left">in New-York.</span> -</p> - -<p><span class="smcap">Dear Sir</span>. Your letter to the ginral, was received -in Washington, as quick as the mail -could fetch it. As soon as it got to the P. O. -here, Amos Kindle came right over to the white -house with it, and says he—“Ginral, here’s a letter -from York, and I raither guess—there’s some -news in it.” As soon as the ginral took the letter -in his hand, he knowed by the outside, that it -was from you. The ginral is plaguey cunnin, -and he knowed as quick as a weazle’s scent, that -Amos wanted to find out what was in it. So, -says he to me, major, says he, these ere friends -of Mr. Van Buren in York, pester me amazinly. -And then he laid the letter down on the table, -and lit his pipe, and went to talkin politics. And -it warnt long afore he drove Amos away, by -tellin a story about a man, who turned traitor to -his patron. The ginral all the time meant -Mc Lane and him, but he told the story so cutely, -that it suited Kindle and Clay, just as well. -As soon as Amos was gone, says the ginral to -me, says he, “Major”—now we’ll read this ere -letter from Swartwout. That Kindle, “says he,” -wanted mightily to know what was in it, but -though he’s sharp as a needle, it wont do to trust -him with secrets, unless he has a hand in making -on em; and then we read your letter all over, -backwards, and forwards, side ways, and cross -ways. And when we got through, says the ginral -to me, says he, “Major, this ere letter is amazin -puzlin.”</p> -</blockquote> - -<div class="sidenote">GENERAL JACKSON “RILED.”</div> - -<blockquote> -<p>He was considerable riled; and says he, major, -this looks mighty like your game of hocus pocus, -that you larnt me to play with the cups and -balls. What does Swartwout mean by being -flunked? Why says I, that’s a Wall-street word, -and means that he has been outwitted, in tryin -to make up the money he was behind. And the -ginral riz right up, and says he, major, I -knowed Swartwout in New Orleans, in Burr’s -time, and I know he’d stand a shot with every -one of them fellows in Wall-street, as quick as -he’d wink, if they tried to play hocus pocus with -him, so dont tell me any more of your stories, -major, and as you know, says he, that to-morrow -morning I’m off to the rip raps, you must send -Swartwout an answer, but remember, for by the -Eternal,<a id="FNanchor_4_4" name="FNanchor_4_4"></a><a href="#Footnote_4_4" class="fnanchor">[4]</a> -and then he ketched off his specks -with one hand, and he smashed the other hand -down on to the table so, he broke his pipe in -ten thousand shivers, and his eyes looked like -coals of fire, and I looked round to see if the -door was open, and just then Woodbury came in, -and the ginral, was quiet as a lamb in a minit. -But I warnt in sorts to talk about the treasury -then, so I went to bed, and the ginral he was off -afore day-light this mornin.</p> -</blockquote> - -<div class="sidenote">HIS PASSION—AND OPINIONS.</div> - -<blockquote> -<p>The ginral always said you did right in payin -for printin things agin Biddle and the bank—because -says <span class="nowrap">he—as</span> you say major, what is sass -for goose, is sass for gander, and the only discounts, -I’ve lately heard tell on by the bank, is to -pay for printin things agin us. When he was -in York, he was a good deal consarned to know -that you had been obliged to take money, that -ought to gone into the treasury. And I raly believe, -if it had’nt been for that, he never would -have moved the deposites, without Congress to -back him. But when I tell’d him that you could -make it all up, and three times over by speckilation -on the money, he was as chipper <i>as a bird, -and says he, major</i>, seein as the deposites are -moved, we can play them double game.</p> -</blockquote> - -<div class="sidenote">JACK AT THE BOTTOM OF THE MISCHIEF.</div> - -<blockquote> -<p>In respect of the loss you made, by the bank -stock, that I recommended you to buy of my -cousin Zekiel Bigelow, in Wall-street, I did’nt -tell the ginral any thing, because the deposites -bein moved that proved a bad spickilation. But -in respect of the Apalachi land co., I advise you -to vest more largely, for the ginral says, that if I -think best, he’ll establish a knavy depo there, -and then it will be worth double.</p> - -<p class="align-right right-indent-22pc"> -<span class="smcap">J. Downing, major</span><br /> -2nd brigade.<br /><br /> -</p> - -</blockquote> - -<div class="sidenote">CAUSE OF JACK’S DISGRACE.</div> - -<p>It is proper to observe here, that the major was -the owner of the stock above alluded to, as sold -by his cousin, and that he was also a director -and proprietor in the Apalachi land company. -He was never publicly accused of being either a -coward or janus faced, but his confession in this -letter, with the unraveling it gives to the default, -lays him open to the charge of both; for -it seems that, while he was professedly the firm -supporter of the bank, he was speculating on its -stock, based on the expected removal of the deposites. -And while the defaulter was consulting -with his patron, how to get out of a dilemma, -into which his personal devotion had led him, -he was “flunked” by the major, his patron’s -confidential adviser, in a “spickilation” which -he had recommended to him as a means of relief, -which made his situation much worse. And -when we consider, that these things were done -in the face of General Jackson, who was deeply -interested, and his most devoted friend, we cannot -wonder that the major looked round to see -if the door was open, nor that he was shortly afterwards -relieved from his high responsibilities.</p> - -<p>Although the characters of public men, are -public property, they should not be sported with, -too rudely, and it is to be hoped, that for the -honor of the major’s past reputation, he will be -able to clear his skirts of this.</p> - -<div class="sidenote">NON PLUS’D.</div> - -<p>When the defaulter found himself deceived by -the major, and his Wall-street operations all going -against him, and he thereby involved in still -greater pecuniary embarrassment, his soldier like -spirit was roused within him, and as the general -said, he would have “stood a shot with every -man in the street, if that would have relieved -him from his difficulties.” But he had been long -enough there, to know that cold lead, although -the heaviest of metals, was in fact but the lightest -kind of argument, and his discretion, the better -part of his valour, discovered to him, that if, -among them all he should chance to meet a -good shot, and himself receive a quietus, it would -establish no truth but that of his real condition, -and default. When this truth stared him in the -face, he is said to have uttered horrid imprecations, -and with alternating curses and relenting, -to have bewailed his fidelity to his long loved -friend and companion in arms, the general.</p> - -<div class="sidenote">A GOOD FINANCIER.</div> - -<p>Not that the general ever prompted him to -such acts; they were volunteered by himself, -out of pure love, from old companionship, and -he never thought of the wrong, much less of his -inability, to pay his expenditures, until the fatal -truth was pushed upon his notice. How could -he think of such a thing, when money was flowing -through his hands, like water through a -mill-race? how could he tell that there would -be a balance against him? he had never kept -an account in his life, nor even examined one. -He was too liberal to be exact. When his shoemaker -presented his bill, he looked at the foot; -and if money was in his pocket he paid it, and if -not, he kicked the impudent fellow out of the -house, if he presumed to urge his suit, by any -word of expostulation, or plea of necessity. It -was unsoldier-like, and ungentlemanly to be exact -in any thing, but the point of honor, viz.—if -a man should say his coat was brown, when he -knew it was black, call him out, and settle the -truth by an exchange of shots.</p> - -<p>And here I cannot forbear the remark, that, -when government wants soldiers, they should -look for fighting men. When they want judges -and attornies, they should seek for those learned -in the law, and when they want some one to -take charge of financial affairs, they should seek -those whose habits of exactness, promptitude, -and experience in finance, give them some fitness -for the duty.</p> - -<div class="sidenote">IN A DEEP STUDY.</div> - -<p>But the die was now cast with the defaulter, -and no repentance could make atonement to offended -justice. Thus far, his attempts to relieve -himself from the first deficiency, had not only -been unavailing, but had led him deeper into difficulty. -Something more must be done, or the -fatal hour of disclosure must come. The general -would soon lose all patience, as well as all confidence. -Should he implicate him, and clear his -own skirts? No—that thought was too repugnant -to his honorable feelings, it would be unjust, for -if the general knew his default, he had no hand -in creating it, and if, he allowed him time to escape -its consequences by retrieving it, it was the -kindliness resulting from old associations. It -was his own want of prudence in the first place, -and of skill in the second, that placed him where -he was. But something more must be done. -And what should he do? The finale of his -Apalachi land stock, was not yet realised; he -thought well of it—he thought well of all land -speculations. Yes, the landed interest, must, in -this country, as in every other, in time, become -the wealthiest—cities were springing up every -day—fortunes were made in a moment—there -could be no loss—the land would not run away—the -Wall-street sharpers could not “flunk” him -there.</p> - -<div class="sidenote">RESOLVES—AND GOES AHEAD.</div> - -<p>Yes, he’d try a land speculation, east and -west—honest man!—he never thought how -much easier it was for one of these landlopers, -to make a city in the woods on paper, than to -be at the trouble of cutting the timber all down, -and building it up again into houses, stores, -churches, and academies. And that even a -flowing river with beautiful falls, and “mill -privileges,” with fertile valleys skirting its chrystal -waters, could be made, where nature had -never taken that trouble, in a thousandth part of -the time that De Witt Clinton could make a -sluggish canal. In short he wanted the experience, -which has proved these Yankee land -speculators to be the genuine breed of land-sharks, -which sailors so much detest for their -cunning, and voracious propensities, and who, -to use one of their own descriptions of themselves—“are -as much sharper, than a Wall-street -sharper, as a Wall-street sharper, is sharper than -a needle.” But the decision once made by the -defaulter, his practice was to go ahead, and he -usually left out the preliminary of the renowned -Crocket, as implying a disagreeable necessity. If -he was <i>not wrong</i>, he <i>must</i> be <i>right</i>, was the -result of his logical reasoning; and certainly, no -more self-evident conclusion was ever drawn -from premises.</p> - -<p>With the accuracy of judgment, therefore, -which might be expected in such a case, he -bought lands, to a very large extent, in various -sections of the country, along with the most <i>respectable</i> -companies, and from the handsomest -drawn maps he could find.</p> - -<p>An anecdote occurred about this time, which I -believe has once got into the newspapers, but it -is too good not to be repeated here, especially, as -it will show to future generations, the value of a -clean and handsomely drawn map—in other -words, that it is better to do things well, than to -do them clumsily.</p> - -<div class="sidenote">ANECDOTE.</div> - -<p>The defaulter had in his possession, a title to -an old soldier’s patent, the papers of which had -been carried in a dirty pocket book, and handled -with dirty hands, until the location of the patent -could hardly be distinguished on the map. It -had been “thrown in to him,” to bind a bargain -with some speculators, much the same as a -huckster woman puts on to the measure too -peaches more, when she sees her customer about -to depart. He esteemed it of very little value, -and thought no more of it, until one day a stalwart -Yankee, with slouched hat, came into his -office, and, says he, “mister hain’t you got a -piece of land there in Miss-soori, up on the Black -river. Yes, was the reply, after a moment’s reflection.”</p> - -<div class="leftnote">A YANKEE.</div> - -<p>“Well mister, what will you take now, for that -are land?”</p> - -<p>The defaulter, who had begun to understand, -a little of the mode of bargaining practiced by -these men, answered “a thousand dollars,” though -he would have accepted five hundred.</p> - -<p>“Did you say a thousand dollars, mister?”</p> - -<p>“Yes.”</p> - -<p>“That’s raither high. Jest let me see them are -papers, mister.”</p> - -<p>The papers were handed to him, and, after -being critically examined, and found to be all -right, the Yankee, still holding on to the papers, -from fear of not being able to bind his bargain -otherwise, <span class="nowrap">asked—</span></p> - -<p>“Won’t you take no less, Mister?”</p> - -<p>“No.”</p> - -<p>“Well, I’ll take it, just make me the title.”</p> - -<div class="leftnote">COME OVER BY A YANKEE.</div> - -<p>The title was made out, and the money paid, -when the defaulter, surprised at the bargain, -asked, “what did you buy that land at such a -price for? I would have sold it to you for half -the money.”</p> - -<p>“Why,” said the Yankee, “there’s a darned -good lead mine on it.”</p> - -<p>“There is, eh!—how much is it worth?”</p> - -<p>“Well, I don’t know, but I’ve dug out ten -thousand dollar’s worth a’ready, and I expect to -get a great deal more.”</p> - -<p>“The <span class="nowrap">d——l</span> you do?”</p> - -<p>“Yes—good bye, Squire.”</p> - -<p>Report says that this was the only valuable -piece of land the defaulter ever bought, and that -this was all the money he ever got back again, -from all his investments. I have even heard it -whispered that this same Yankee was one of -the speculators concerned in making the large -sale to him, in the first place, and that the -“throwing it in,” was but the cast of a die, to -bind a profitable bargain, trusting to their ingenuity -to get it back again; and, having -cheated him at any rate, whether they should -get it again, or not.</p> - -<div class="sidenote">DOCTRINE OF CHANCES.</div> - -<p>A mind as cool, even, as the defaulter’s, -could hardly retain its just balance, under such -accumulations of misfortune, and accordingly, -we find him sometimes afflicted with gloomy -forebodings of the future, sometimes brooding -over the disappointments of the past; and always -taking that course that will lead him deeper -into difficulty.</p> - -<p>Whether it is right or prudent for a man involved -in embarrassment to attempt to relieve -himself by a single coup de main, may be a very -fruitful theme for those who like to calculate -the doctrine of chances; but, in my opinion, a -chance, which may be operated upon in so many -ways, as may the rise or fall of property, or -the success of speculation of any kind—and, instead -of being governed by any such natural -laws as may be supposed to belong to chance, -wherein the <i>aggregate</i> results must be always -the same, although we do not know before hand -how they will come up particularly, is overruled -and affected, more or less, by the changing -opinions and volition of almost every one in the -community—deserves not the name, even of -chance, and, in my opinion, involves the certainty -and necessity of failure. And, -although such a thing hath been as success -in this way, yet all my experience goes -to show me, that the “chance,” so called, -is not as one in the hundred. The fact -that a man is embarrassed signifies, also, that he -is unable to control his affairs, and, if he cannot -control them in the state they are, their expansion, -out of his legitimate course, will not help -him much.</p> - -<div class="sidenote">TRUE SECRET OF SUCCESS.</div> - -<p>I believe every successful man will -tell me, that the secret of his success has been, -the preserving this ability to himself; and my -own experience has shown me, that whenever -the case is otherwise, one not only has the caprices -of chance against him, but the caprices, -cupidity, and contrary interests of his fellow -men, to contend with, and the sooner he comes -to a stand, the better for himself, and his friends. -These reflections are not suggested by a default, -when viewed in any other light, than as a pecuniary -embarrassment; and, in this particular, -they are alike applicable to all embarrassed -men.</p> - -<div class="sidenote">DEFAULTER IN DESPAIR.</div> - -<p>When men, for insufficient reasons, have -raised their hopes too high, their disappointment -commonly brings with it a corresponding depression; -and so with the defaulter—he now despaired. -But let me not be understood that despair -took away his appetite; far otherwise—there -was no sickliness in his despair. He merely -gave up all hope of being able to save himself -from that very small modicum of attainture to -his honor, which is comprehended in the name -of a defaulter; and, as despair, in all its shapes -and degrees, is always rash and unreasonable, he -is said to have given himself up to an unaccountable -fondness for those fashionable, yet too animating -amusements, where gentlemen are supposed -to stake largely. Here he met many pleasant -companions, but among them, one particularly, -a public functionary, who, although he had -met him every day for years, in his attention to the -duties of his office, he never before esteemed his -acquaintance to be a jewel of such Price and value -as he now found it to be. An intimacy of course -grew up, which led to the denouement that -must form the conclusion to this chapter.</p> - -<div class="sidenote">FINDS A FRIEND.</div> - -<p>This friend of great Price had every requisite -of character for a gentleman. He would eat -heavy, drink deep, and play high, and not the -least of his accomplishments was, that he had no -respect, whatever, for the character of Joseph, as -claimed by the Hebrews. To add to his value, as -a friend, these excellent qualities were made more -seductive, by an agreeable exterior, and manner. -He was also a man of business withal, and never -gave more than an occasional hour of relaxation, -to those refined pleasures.</p> - -<p>As they chatted, and talked, and drank together, -the defaulter sometimes looked at him with -unmingled pleasure, sometimes with feelings -akin to envy. What would he not give to possess -the quiet and unruffled mind and temper of -his friend? to be as free from any danger of -exposure—from the haunting, disturbing influence -of self accusation. Alas! the first step -from the path of duty inevitably leads to ruin, -unless immediately retraced.</p> - -<p>Sometimes the thought would arise in his -mind, “Is it possible that, like myself, he comes -here as a relief to his burthened spirit?—to -seek a solace for the cares of an anxious mind!” -He banished the thought at once; but who is -there that has not often found these random -suggestions of thought were in fact the premonitions -of truth?—and to this fact we are about to -come.</p> - -<div class="sidenote">BOTH IN THE SAME BOX.</div> - -<p>One night, when the stakes had run high, and -were swept by their opponents, and the two -friends had set themselves down to the solace of -their wine; and its inspiring qualities had heightened -into extacy the love that glowed in the -bosom of each, with that mellow frankness which -wine always inspires, and the longing which -friendship always feels, to make its loved object -the co partner of its cares, the defaulter whispered -in the softest accents, “Bill, I am ruined—the -money I lost belongs to the Treasury.”</p> - -<p>“So did mine!” was the full and sonorous -response.</p> - -<p>Had the thunder-bolt, which Abdiel let fall on -the crest of Satan, struck the defaulter, he could -scarcely have received a greater shock, and almost -like the <span class="nowrap">arch-fiend—</span></p> - -<blockquote> -<p class="quotation">Ten paces huge he back recoiled;<br /> -The tenth on bended knee.</p> -</blockquote> - -<p>But, recovered in some degree from the shock, -the friends were both astonished at their own imprudence, -and, shaking hands, they separated -for the night; the one to go home and ponder -his lot, the other to regret his folly.</p> - -<div class="sidenote">THEY TAKE COUNSEL TOGETHER.</div> - -<p>But the disclosure had been too mutual to rest -here—something must be done for their protection. -It could only be done by concert, for each -had the power to ruin the other, any moment; -and, as a result of this necessity, it was the part -of wisdom to extend their mutual confidence. -If both could not be saved, one of them might. -The government was passing into new hands, -new interests would arise out of it, new applications -would be made for office—perhaps they -would both lose theirs. If they did not render -their accounts promptly, they would be suspected, -and lose their offices of course. They must, -therefore, work speedily.</p> - -<div class="sidenote">THEY ABSQUATULATE.</div> - -<p>But the day of retribution always comes -sooner than we expect. The government <i>had</i> -changed hands—new interests <i>had</i> arisen—new -applications for office <i>had</i> been made. They -<i>had</i> become more than suspected, before they -could possibly arrange, out of the chaos of their -affairs, and the wilderness of their crimes, any -such jumbled up accounts of interchanged receipts, -costs, &c. &c., as could save even one of -them. And, as a consequence upon the unfaithfulness -of their <a id="P129-7" name="P129-7">friendship</a>, they were both compelled -to fly in disguise and disgrace, from the -presence of their countrymen, and from the joys -of home.</p> - -<p>And now, if I have not given a true account -of a default which cost the government more -than a million of dollars, solely in consequence -of a few thousands wrongfully spent in the first -place, for electioneering purposes—if this account -does not prove the total unfitness of gambling -politicians to hold offices of trust—and if -these circumstances will not apply in more quarters -than one, public and private—it is because -my powers of description are feeble, and not because -the truth is wanting to establish these facts.</p> - -<hr class="chap" /> - -<div class="chapter"> -<h2 class="bold nobreak">CHAPTER VI.</h2> -</div> - -<p class="center narrow small bold">SHOWING WHAT A PANIC IS—ITS CAUSES—ITS -BEGINNING—ITS ADVANTAGES, AND ITS -CONSEQUENCES.—WITH THE AUTHOR’S -LEAVE-TAKING.</p> - -<p>A panic is one of those things in nature, which -have existence without entity—something which -may be felt, but can neither be traced nor followed. -It has the power of motion and flight exceeding -that of all cognoscible beings—for it can -pass from city to city, on the wings of a single -rumor. It has the power of making itself invisible, -and can stalk through the streets in the -day time unseen, frightening every body by its -presence. It has the advantage of Archimedes’ -lever, for it has a fulcrum in the credulity of the -man; and you may easily turn the world upside -down with it. It is, in fact, a kind of moral element, -and, like the fire, a single spark may kindle -into a conflagration, which the whole nation -cannot extinguish; and it must be left to go out -of itself, when it has no more fuel to nourish it. -It may be called forth by a whisper, but a multitude -cannot bind it. It is, therefore, one of -the most important of agents, but like fire also -it is dangerous to handle. It is a very good servant, -but a very hard master, and sometimes -consumes those who kindle it.</p> - -<div class="sidenote">A PANIC—WHAT IS IT?</div> - -<p>The causes of panic, must not be sought for -among natural phenomena—no science of alchymy -is necessary to compound it. It may be -made up of truth, composed of falsehood, or combined -from both. It may be produced by hatred, -jealousy, or envy. It may arise from curiosity, -or the love of the marvellous, or, from a more -villainous cause still, the desire to profit by its effects. -And with this knowledge of its causes, if -men were wise, they would give less heed to it.</p> - -<p>The beginning of a panic in a small country -town, is usually indicated by the doctor’s riding -through the village, without stopping to recognise -his acquaintance, or an old woman hastily -putting on her shawl, to run across the street to -her neighbors.</p> - -<p>What could it be for? says one.</p> - -<p>Sure enough <i>what could</i> it be for? says another.</p> - -<div class="leftnote">A PANIC IN THE COUNTRY.</div> - -<p>Don’t you think there is some bad disease -about? says a third, and before long, the interrogatory -assumes the shape of a declaration, and -if not explained, and in less than a week, half the -people of the town are sick, through fear that -they may be worse.</p> - -<p>What is Mrs. Toddle running about the street -for? says one.</p> - -<p>I expect she has gone to enquire about the -school mistress. Says another.</p> - -<p>I expect the school mistress will run away -with that fellow yet, says a third, (she ran away -once herself.) And before the week is out, the -whole neighborhood is in a panic, for fear the -school mistress should run away, and their dear -daughters be corrupted, by her example—while -the innocent subject of their fears is attending -to her duties, all unconscious of the commotion -she has occasioned.</p> - -<div class="sidenote">PANICS AND PANIC MAKERS.</div> - -<p>In great commercial cities, a panic is a different -thing, and first indicates its approach in a -different way. The subjects to which it generally -points, are politics, and money, chiefly the -latter, and never the first, except as it may -have a bearing on the last. Like great and pestilent -diseases, it generally has premonitory -symptoms, which commonly exhibit themselves -in plethora, and a wasteful indulgence in luxury. -And like those diseases also, it never attacks or -alarms those of regular habits, and an equal -mode of living. In the city there are regular -panic makers! some of them work on their own -account, as Donald said he fought, when it was -found that he had killed more of his own clan, -than of their enemies—and some of them work -for hire, as the penny-a-liners do, in fabricating -marvellous stories; and hence the opportunity -and inducement for making panics in the city, -far exceed those in the country.</p> - -<p>Political panics, and money panics, are like -electric bodies, one is positively charged, the -other negatively, and the effect of this kind is, -that when they approach each other, they produce -an explosion, like the breaking of the -Banks, &c. These are properly termed compound. -A simple panic is more harmless, and -like the Simoon, if a man can stand still, and -hold his breath, it will pass by without harming -him.</p> - -<p>There is also another kind, called natural -panics. These are such as sometimes happen in -churches, theatres, &c.—and, although they have -nothing to do with the subject about which I -am writing, yet a description of one of them -may aptly illustrate the reasonableness of the -others.</p> - -<div class="sidenote">NATURAL PANICS—A RUSH.</div> - -<p>When I was a young man, I went to a popular -lecture in an old wooden church, which was -very much crowded. During the service, as it -appeared afterwards, some boys without, threw -a handful of small gravel stones against the -clap-boarding of the house, which made such a -rattling, that a general rush took place, and the -church was tenantless in less than a minute. -Imagination pictured to some the tumbling -walls. The noise of the rush, stunned every -one. Some smashed the windows, and leaped to -the ground, others, and some of them females, -impatient to reach the door, and as they supposed -a place of greater safety, strode over the heads of -the dense crowd, making the most grotesque -figures imaginable. Some were trodden down, -but none were killed; and when all were safely -out, with the exception of crushed hats, torn -shirts, sore bones, and lost reticules, the enquiry -began to be made, what has happened? I don’t -know says one. Did you see any thing? asked -another? No—did you? No—Nor I, said a fourth, -and a fifth—and when all were satisfied that nothing -had really happened, except a fright, they -began, one by one, to approach the house again, -and cautiously peeping in at the door, lest the -walls might suddenly tumble about their heads, -they saw the light burning brightly, and the -honest clergyman sitting in his desk, the only -man in the house, convulsed with laughter, at -the fright of his late audience.</p> - -<p>And so, when a panic comes in Wall-street, if -any man will take a position, a little above the -heads of the multitude, where he can see their -folly, he may safely enjoy a hearty laugh, instead -of suffering a fright.</p> - -<p>A money panic, in the city, sometimes begins -with a mere question of doubt, as, what do you -think of the condition of the banks? and this -question, handed from one to another, assumes -new shapes, and gathers strength and importance -as it flies.</p> - -<div class="sidenote">A MONEY PANIC.</div> - -<p>Sometimes, it begins with a rattling -noise, like the movement of specie, upon which -the panic makers immediately conjure up the -ghost of an earthquake, that is about to take -place. Sometimes it is the price asked, or the -refusal of a broker to buy a foreign bank note, -for which he has no current money to give -in exchange, which runs from mouth to mouth, -and from hand to hand, until half the people in -the town think their bank notes are worthless; -and they will put them off for apothecary’s physic, -rather than keep them. And sometimes it -is the mere sympathy of suspicion, when every -man suspects his neighbor to be in possession of -some secret, which he is not. And all, or any -one of these causes, is sufficient to make three -fourths of the population of the town tumble -over each other in fright, while the rest laugh, -and scramble after the loose coppers, which they -may let fall in the fray.</p> - -<div class="sidenote">HOW IT WORKS.</div> - -<p>When a panic proceeds from any matter of -fact, it is commonly such as this. The bank -turns away some bad customer, who then -spreads a report, that the banks are “very short;” -when, immediately, every one applies for twice -as much as he wants. In Wall-street phrase, -“The offerings become very large,” and then -they all fight and jostle each other, to see who -shall stand first at the counter.</p> - -<p>These are the incipient stages, which follow -the first symptoms. Its increase is only a multiplication -and enlargement of the same things; -but when it is at its height, there is the greatest -fun and fright, frolick and fight, imaginable. -But as I cannot get up a pantomime show on -paper, I will only relate a few anecdotes of actual -occurrence, by way of illustration.</p> - -<div class="sidenote">MONSIEUR IN A FRIGHT.</div> - -<p>In the panic of 1837, a merchant of high -standing in Broad-street, was indebted to a son -of Johnny Crapeau, in the sum of three thousand -dollars, money deposited with him on interest. -One morning, while the merchant was -busily engaged in his correspondence, Johnny -came in in great trepidation, and announced the -object of his visit, by saying; “Monsieur, I -ver much want dat moneys <i>que vous me devez</i>.”</p> - -<p>Ah! I thought it was to remain, we have paid -you interest for it, when it was of no use to us.</p> - -<p>“Eh! mon Dieu! I shall lose.”</p> - -<p>“If you are alarmed for its safety, we have no -objection to paying you.”</p> - -<p>“Sare, I must have.”</p> - -<p>The merchant directed a check to be drawn, -for the principal and interest, which he handed -to him, with a receipt for his signature.</p> - -<p>“What is dis, monsieur?”</p> - -<p>“That is a check for the money.”</p> - -<p>“Den you pay?”</p> - -<p>“Yes, you demanded your pay.”</p> - -<p>“Eh! monsieur, (handing back the check)—I -was alarm. If you pay, den I dont want. If -you no cant pay, den I must have.”</p> - -<div class="sidenote">FOLLIES OF A PANIC.</div> - -<p>Another instance quite as reasonable, and of -equal notoriety, was a French gentleman of respectable -property, entirely out of business, and -out of debt. His sympathies were so much -wrought upon, by the reported distresses of the -community, that he began to be alarmed for -himself; and accordingly applied to his bankers -for a loan, which being granted, he suffered the -money to lie on deposit: but his excitement -growing warmer, he applied again and again, -when being expostulated with by the cashier, -that he did not want the money, and that others -did, he replied, “sare I am afraid dat dis ting -will me ruin. Sare, I must have moneys. I -shall starve, if I have not moneys. I must have -de loan.” His request was complied with, and -when the excitement was over, without ever -having drawn a dollar from the bank, he paid -his debts with the loss of interest, and the gain -of a good deal of mortification.</p> - -<p>These are some of the follies of the panic. -The villainies also deserve some notice.</p> - -<div class="sidenote">VILLAINIES THEREOF.</div> - -<p>A notable whig, and a friend of the banks, who -thought nothing so good as bank notes, so long -as their circulation yielded him interest, is reputed -to have borrowed all he could, and then to -have drawn the specie, which he hid away in his -cellar, and stood sentry at the door himself. Some -supposed that he was alarmed for the safety of -his property, but more are of opinion, that his -object was, to assist in breaking the banks, and -then pay his debts in their notes at a large discount.</p> - -<p>But I should trespass too largely on time and -paper, to give one in a thousand of the instances -which may be cited, and I will therefore illustrate -the truth, by relating a few of the exploits -of a notable individual.</p> - -<div class="sidenote">A CASE IN MORALS.</div> - -<p>Mr. S. was a merchant of wealth and large -business. Mr. A. his debtor, was erroneously -reputed to have failed, and being angry and -grieved withal by the slander, he went to his -friend S. for advice and consolation, and told -him that so far from having failed, with a very -little sacrifice, he could pay all his debts on demand. -Mr. S. always governed by that cunning, -which supreme selfishness and want of principle -dictate, advised his debtor to make the sacrifice, -and advertise for his notes, to be brought in for -payment, as a means of substantiating his credit -beyond all doubt in future. His advice was followed, -and it so happened that Mr. S.’s was the -first note sent in; and report says, moreover, that -having enquired of A., to whom he was indebted, -he went to the persons before the advertisement -appeared, and bought A.’s notes at a large discount, -and sent <i>them</i> in also.</p> - -<p>This same gentleman had many customers in -his business, and of course many debtors. Their -notes were always lodged in the bank for collection, -and when some of his customers came to -him for partial aid, to help take them up, his -reply was, that he had no money to lend; but, -said he, “you can get the money for my note, and -I will lend you that for the ordinary commission -of 2½ per cent., if you will secure me for -it.” The security was willingly given, and the -customer was told, if the bank don’t discount the -notes, the brokers will; and as soon as the customer -was gone, instructions were sent to the -brokers, “if such a note appears, buy it for me -at double rate of interest.” He usually got possession -of his notes again in this way, for be it -known that he was a director in the bank, and -to add to the virtue of his liberality, the money -which should have been lent to his customers -in the first place, was lent to himself, with these -views and for these purposes.</p> - -<p>I know not under what class of morals you -will place this kind of sagacity, but in Wall-street -it is denominated “shrewdness,” and adds -greatly to one’s respectability and consequence.</p> - -<div class="sidenote">CHARACTER IN, AND OUT, OF WALL-ST.</div> - -<p>But that you may not be deceived in your -judgment, I will go farther and say, that what -makes a character in Wall-street, does not make -one out of it. Here the standard is money, but -elsewhere, it requires some other ingredients to -arrive at any level much above the lowest; and -a man destitute of education, intellect, genius, -principle, morals and religion, (though last here, -yet not least,) can hardly arrive at a condition of -respectability, much beyond his own conceit of -himself.</p> - -<div class="sidenote">MONEY, KNOWLEDGE AND HONESTY.</div> - -<p>I never knew such a man as Mr. S., who was -not deficient of education in every thing, except -how to get money. The sum of his knowledge -is limited to the first rule of arithmetic—addition; -and although his wealth and credit may -enable him to enlarge the sphere of his observation, -still, it is all brought to the same practical -use, addition.</p> - -<p>Such a man always owes his little elevation -to one of two things, to fortuitious circumstances, -or to his own villainy; and his mind is incapable -of appreciating any higher standard of morals -than his own. As I once heard one of them say, -(inadvertently no doubt, but yet in the honesty -of his soul) when another was recommended -to him for credit, on the ground of his honesty, -he replied, “a very good thing for the owner, -but a very poor commodity in the market.”</p> - -<div class="sidenote">SOMETHING BY WAY OF CONTRAST.</div> - -<p>It is not against the people of Wall-street, -or Pearl-street, or South-street, or any particular -branch of business that I would be -understood to aim the bitter shaft of sarcasm, -but against those individuals of known -delinquency, and against those principles -and practices, which have, of late, obtained a -tolerance that, in times gone by, would not have -been suffered. And were it proper for me to do -so, by way of contrast, I would here sketch a -portrait of some among the many I know, who -hold a just balance, and the even tenor of their -way, whether in peace or in panic; but I could -not do it faithfully, without pointing too clearly -at those who have no need of my commendation, -and who would choose that their reputation -should rest on their own unaided merits.</p> - -<p>Perhaps you have already anticipated some of -the advantages which may arise from a panic, -but my description would be incomplete, were I -to omit to sketch a few of them.</p> - -<div class="sidenote">ADVANTAGES OF PANICS.</div> - -<p>The spirit of our institutions does not admit -of the concentration or entailment of property. -And here, if a man has property, and will act -honestly, he need not wait the term of his mortal -existence, for his children to ruin themselves -afterwards, by spending it. He can ruin himself, -and them too, by simply placing himself in -the vortex of a single panic. But, on the contrary, -if his tastes lead him to choose the former -expedient, this affords him an ample field, for no -scheme can be devised better calculated to make -the rich richer than this is. It places the dependent -debtor wholly in the power of the creditor, -and he may take his pound of flesh with -interest, without extracting a groan or a sigh -from his patient. Nay, he will rise up from the -operation, and thank him for not taking two. -A panic, then, serves to hasten changes of property -from one to another, and thereby acts in -accordance with the spirit of our institutions, -which encourages rotation.</p> - -<p>Its advantages, also, to the separate classes of -dealers, who inhabit Wall-street, deserve each a -passing notice.</p> - -<p>It enables the stock-dealer, who has heavy -contracts to fulfil, to complete his engagements -at a great profit to himself. It is of no consequence -that what he gains, another must lose; -the advantage to him is unequivocal, and, accordingly -we find that these gentlemen are -great panic makers on their own account.</p> - -<div class="sidenote">WHY SOME MEN LOVE PANICS.</div> - -<p>It enables exchange dealers to demand double -rates on all distant places, and, although the -effect is to reduce the value of all debts due -from those sections to citizens here in the same -proportion—yet, <i>he</i> is benefited, and if people -will not pay him his rates, they have the option -to go and collect their money themselves. The -greater and the more frequent the panic, therefore, -the better for the exchange dealer. It also -enables those Banks which have a speculative -turn, to divert their capital from the paltry business -of discounting, to speculating on their customers’ -wants, by becoming dealers in exchange. -It greatly increases the profits of the Bank-note -dealer, by enabling him to increase the rates of -discount, and one peculiar beauty of his business -is, that the more discount he asks, the more -ready his customers are to sell. This class of -dealers are deserving the particular regards of -the country Banks, since <i>their</i> interest advances -exactly in proportion as they can discredit them.</p> - -<p>I have passed hastily over all these classes, -although the ways and means by which each -one of them contrives to turn a panic to their advantage, -contain a fund sufficient for a long -evening’s entertainment. But my descriptions -are not intended to be wire-drawn, and, besides, -I wish to leave room for future lucubrations, -without the necessity for gleaning too closely.</p> - -<div class="sidenote">CONSEQUENCES OF PANIC.</div> - -<p>The consequences of a panic are those portions -of it which “may be felt;” and they begin -to be felt, when people begin to count their losses, -I have before said that a panic was like fire, and -the simile holds good, except in one particular. -The fire destroys—the panic only changes property. -In both cases people are prodigiously -frightened; many wounds and bruises are received, -and not a few are driven from their business, -and made houseless, and homeless. In -the panic, as in the fire, also, there are both -incendiaries and thieves, and it is a matter of -doubt, which requires the most vigilance to protect -one’s self from.</p> - -<div class="sidenote">HOW TO PREVENT PANIC.</div> - -<p>The scenes exhibited when a pestilence has -passed through the city—bringing suffering -and bereavement to hundreds—when a storm -has swept along the coast, strewing its shores -with the ships and the treasures, which the day -before floated securely on the bosom of the waves—when -the locusts have passed over the fields, -leaving nothing but the ravages of destruction -behind—and when business men have passed -through the ordeal of a panic—are of one and -the same character, with this difference only; -the first are events directed by Providence, -which men have not the power to avert, and the -last is the result of their own folly, or the wicked -designs of a few. But it will be said that no -single voice, nor even many voices, can control -the multitude—very true; but when a mob -takes place, if every man would go straight -about his own business, instead of stopping to -join in the hue and cry—there would be no mob. -And if the magistrates join in the mob -themselves, there is no authority left by which -to control it. When a panic in money matters -begins, there seems to be a predisposition in the -bystanders, either from want of employment, the -love of story-telling, or the desire of mischief, to -aid all they can in spreading it.</p> - -<div class="sidenote">A WORD TO CERTAIN EDITORS.</div> - -<p>I might add, -too, that many newspapers are not among the -least, in bestowing their influence in this way. -Some of them wish to appear wise above their -fellows—and I consider it not at all derogatory -to the general character of ability which they -possess, to say that, in money matters, <i>some</i> of -their editors really know very little of the things -about which they prate. I believe it often -happens that what they publish, is but -the proclamation of those who design to -increase the panic—and if they are to be -believed themselves, <i>some</i> of them have published -things contrary to their better judgment, and -perhaps their own knowledge.</p> - -<p>They can all point to the right quarter, and -none of them will consider this a slander, but -such as know they deserve it.</p> - -<p>If, therefore, when a panic begins, men would -improve what they know for themselves, instead -of giving their neighbors the benefit of what they -don’t know, but have only heard or surmised—If -the magistrates, the leaders and controllers -of the money market, would consult something -else besides their own interest, in promoting it, -or their immediate safety, by escape—we should -have a less frequent occurrence of panic. And, -being convinced of these facts, every man can -easily understand, and no doubt does understand, -what he ought to do in such a case.</p> - -<div class="sidenote">A DARK PICTURE.</div> - -<p>But I perceive I am getting wide from my subject, -and prating about the causes of a panic, instead -of its consequences. If we would follow -these out to their end, we must leave the disorganized -condition of business, and follow men -into their secret communings with themselves; -and mark the anguish of despair, the bitterness of -cursing and disgust with their fellow men, occasioned -by their blasted hopes—we must follow -them in their principles, and see how many -are corrupted by example, and how many have -done their first act of villainy, in the vain hope -of escaping from its consequences. We must -follow them in their morals, and see how many -have, by the excitement of circumstances, lost -their self-respect and control. And we must -follow them to their homes, and see the desolation -wrought by a sheriff’s levy, or a bill in -chancery, and witness the broken repose, and -see the tearful eyes of loved ones: and then let -any one make a levy or file a bill, or aid in a -panic, who chooses.</p> - -<p>But the mind sickens at the picture, and I -turn it with pleasure to a better light, to bring -out its now hidden colors.</p> - -<div class="sidenote">ENCOURAGEMENT AND KINDLY ADVICE.</div> - -<p>Every man must have felt, many times in his -life, that it is better to laugh than to cry. In this -case, it certainly is, the proverb of Solomon to the -contrary notwithstanding; and among the many -who, in the last few years, have been the victims -of panic, not a few I trust are, by this time, ready -to agree with me. Many an oak has been shorn -of its boughs, and lived to withstand a hundred -storms; many a ship, dismantled of her spars, -has gained her port,—and floated again as gallantly -as ever; and many a man bereft of his -fortune, has lived to dispense large bounties of -charity from his store; many a one too, who has -long fainted beneath the load of his griefs, has -lived to command those who oppressed him.</p> - -<p>Experience is sometimes a very hard, but always -an efficient teacher; and those who have -suffered will have the satisfaction to know better -hereafter, who to trust and what to trust, and -taught to rely more on themselves. And if afraid -of a panic in future, he will be able to prepare -himself on the first appearance of the “premonitory -symptoms,” and when he sees it coming on -the wings of the wind, like the man in the simoon, -he may then safely turn his back, hold his -breath, and let it pass by. At any rate, like the -people I described in the church, he will find -himself more comfortable and happy to return, -and take his seat, than to be wandering about in -the cold, among the multitude without, to find -out what has happened.</p> - -<div class="sidenote">AUTHOR’S LEAVE-TAKING.</div> - -<p>I have now finished six days in Wall-street, -which, by the only book of Ethics that I have -ever learned, are the whole of the week that is at -my disposal. I can hardly suppose that any -man in his senses, has followed me through all -the descriptions of truth and villainy, fact and -fiction, sense and nonsense, which I have here -given; but if any one has been so patient, I am -bound to take a courteous leave of him.</p> - -<p>First I am bound to thank him for the “high -consideration” given me. And should his better -feelings tell him that I am too severe, I only -request him to ponder what is true—</p> - -<blockquote> -<p class="quotation">Nor set down aught in malice.</p> -</blockquote> - -<p>But if when he shuts this book, he shall say, -amen, he is entitled to my thanks for his patience -and a double congee for his approval. -No one will of course take any thing that is -here written to himself, unless he discovers in it -some features of his own portrait, and to those -who can make such discovery, we owe neither -apology nor sympathy.</p> - -<div class="sidenote">MORE YET TO COME.</div> - -<p>I have now taken leave of my venerable friend -the Chronicler; but I have no doubt that while -he lives, he will continue to visit Wall-street -daily, as he does also some other popular places -of resort, to “catch the manners living as they -rise.” And although I shall not be favored with -his oral communications any more, yet he has -promised me the free use of his diary while he -lives, and of his manuscripts when dead, which -are said to contain many important histories, not -only of things long past, but also of the current -events of the day, together with many valuable -reminiscences intended only for posthumous -publication.</p> - -<p>But should the good people of Gotham, take -so lively an interest in these revelations, as to -invite their continuance, by buying this book, -I can not say that such inducement will not call -forth another compilation, from the mass of -materials now at my disposal. -</p> - -<hr class="chap" /> - -<div class="footnotes"> - -<div class="chapter"> -<h2 class="bold p2 nobreak">FOOTNOTES</h2> -</div> - -<div class="footnote"> -<p><a id="Footnote_1_1" name="Footnote_1_1"></a><a href="#FNanchor_1_1"><span class="label">[1]</span></a> -We intend to refer to Major 2nd., the bosom friend of -General Jackson, not the original major, down east.</p> -</div> - -<div class="footnote"> -<p><a id="Footnote_2_2" name="Footnote_2_2"></a><a href="#FNanchor_2_2"><span class="label">[2]</span></a> -See Boswell’s posthumous edition.</p> -</div> - -<div class="footnote"> -<p><a id="Footnote_3_3" name="Footnote_3_3"></a><a href="#FNanchor_3_3"><span class="label">[3]</span></a> -Since the above was written, the affairs of the U. S. B. -have been examined by a committee.</p> -</div> - -<div class="footnote"> -<p><a id="Footnote_4_4" name="Footnote_4_4"></a><a href="#FNanchor_4_4"><span class="label">[4]</span></a> -The secret of the major’s disgrace at Washington has -never been publicly known. But this passage of his letter, -taken with the results of his subsequent advice to the defaulter, -and his almost immediate discharge from employment afterwards, -leave little doubt as to the cause.</p> -</div> - -</div> - -<hr class="end-of-book" /> - -<div class="transnote"> - -<p class="center bold small"><a id="TN" name="TN"></a>Transcriber’s Notes (continued)</p> - -<p class="small">The original text contains errors and many inconsistencies in spelling, hyphenation -and capitalisation. The author -acknowledges this in a light-hearted <i>nota bene</i> to the Preface, adding that he “thought it best -to leave their correction to the intelligent and good humored reader”.</p> - -<p class="small">In that spirit, minor punctuation errors have been fixed. Other typographical errors have -been corrected as follows:</p> - - <p class="p1 small indent-1em">“bim” changed to “him” (enabled him to slide)</p> - <p class="p1 small indent-1em">“both-shores of the atlantic” changed to “both shores of the Atlantic”</p> - <p class="p1 small indent-1em">“ceriificates” changed to “certificates” (bonds or certificates)</p> - <p class="p1 small indent-1em">“cheqners” changed to “chequers” (like children at chequers)</p> - <p class="p1 small indent-1em">“esconce” changed to “ensconce” (he was fain to ensconce himself)</p> - <p class="p1 small indent-1em">“fortuitious” changed to “fortuitous” (fortuitous circumstances)</p> - <p class="p1 small indent-1em">“He” capitalised (He banished the thought at once; but who is)</p> - <p class="p1 small indent-1em">“suthers” changed to “authors” (against the innocent authors of them)</p> - <p class="p1 small indent-1em">“there” changed to “three” (three hundred and fifty thousand dollars)</p> - <p class="p1 small indent-1em">“two” changed to “too” (the too frequent gorging of stocks)</p> - -<p class="small">Inconsistencies have been fixed -where a consensus usage was obvious. Hence the following changes -to the original text:</p> - - <p class="p1 small indent-1em">“abreviate” changed to “abbreviate”</p> - <p class="p1 small indent-1em">“Apalache” changed to “Apalchi”</p> - <p class="p1 small indent-1em">“accomodations” changed to “accommodations”</p> - <p class="p1 small indent-1em">“Bank-credit” changed to “Bank credit”</p> - <p class="p1 small indent-1em">“controled” changed to “controlled”</p> - <p class="p1 small indent-1em">“embarrasment” changed to “embarrassment”</p> - <p class="p1 small indent-1em">“fancy-stocks” changed to “fancy stocks”</p> - <p class="p1 small indent-1em">“general Jackson” changed to “General Jackson”</p> - <p class="p1 small indent-1em">“indorsing” changed to “endorsing”</p> - <p class="p1 small indent-1em">“land lopers” changed to “landlopers”</p> - <p class="p1 small indent-1em">“major Downing” changed to “Major Downing” (but “the major”, etc., used as per American style)</p> - <p class="p1 small indent-1em">“mastadon” changed to “mastodon”</p> - <p class="p1 small indent-1em">“Mr. Eaves-dropper” changed to “Mr. Eavesdropper”</p> - <p class="p1 small indent-1em">“Mr. Single-eye” changed to “Mr. Single-Eye”</p> - <p class="p1 small indent-1em">“negociating” changed to “negotiating”</p> - <p class="p1 small indent-1em">“negociation” changed to “negotiation”</p> - <p class="p1 small indent-1em">“negociator” changed to “negotiator”</p> - <p class="p1 small indent-1em">“panic-makers” changed to “panic makers”</p> - <p class="p1 small indent-1em">“post mortem” changed to “post-mortem”</p> - <p class="p1 small indent-1em">“rail road” changed to “railroad”</p> - <p class="p1 small indent-1em">“Rail-Road” changed to “Railroad”</p> - <p class="p1 small indent-1em">“state-bonds” changed to “state bonds”</p> - <p class="p1 small indent-1em">“stock-holders” changed to “stockholders”</p> - <p class="p1 small indent-1em">“to-day” changed to “to day”</p> - <p class="p1 small indent-1em">“United States bank” changed to “United States Bank” (but “the bank”, etc., used as per American style)</p> - <p class="p1 small indent-1em">“wholestock” changed to “whole stock”</p> - -<p class="small">However “New York” and “New-York” have been left unchanged as are -other instances of inconsistent hyphenation and capitalisation or -archaic/obsolete spelling. The latter includes colloquial usage in -quoted conversations and correspondence.</p> - -<p class="small">The page headers of the book have been inserted in the transcribed -text as sidenotes placed next to an -appropriate paragraph. On pages of the book without any paragraph -breaks it has been necessary to create a new paragraph at an -appropriate location on the page and the page header placed there as -above. This was required at 16 places in the transcribed text.</p> - -<p class="small">Footnotes have been re-indexed using numbers and collected together at -the end of the book.</p> - - <br /><a class="small" href="#top">Back to top</a> -</div> - - - - - - - - -<pre> - - - - - -End of Project Gutenberg's A Week in Wall Street, by Frederick Jackson - -*** END OF THIS PROJECT GUTENBERG EBOOK A WEEK IN WALL STREET *** - -***** This file should be named 62012-h.htm or 62012-h.zip ***** -This and all associated files of various formats will be found in: - http://www.gutenberg.org/6/2/0/1/62012/ - -Produced by Quentin Campbell and the Online Distributed -Proofreading Team at https://www.pgdp.net (This file was -produced from images generously made available by The -Internet Archive) - - -Updated editions will replace the previous one--the old editions will -be renamed. - -Creating the works from print editions not protected by U.S. copyright -law means that no one owns a United States copyright in these works, -so the Foundation (and you!) can copy and distribute it in the United -States without permission and without paying copyright -royalties. 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