"In this way has the Stock Market been established and forced from its original situation by a set of jobbers and brokers, who are all, it will be seen, interested in keeping their transactions from the eye of the public. These men being always ready either to buy or sell, renders it easy for the brokers to get their business done, having no trouble but merely stepping into the Stock Exchange. If a broker wants to buy 5000L. stock, or any other sum, for a principal, the jobber will readily sell it, although perhaps possessing no part of it himself at the time, but will take his chance of other brokers coming to put him in possession of it, and may have to purchase the amount in two or three different transactions,{18} but in doing that he will take care to call the price lower than he sold at.{19}
17 If the system of the private market had tended to lessen
the broker's commission, he would have gone or stood any
where else to transact business for his principals.
18 This at present only applies to young beginners, but old
jobbers, who have enjoyed the system long enough, have been
put in pos-session of large fortunes, and are now enabled to
buy into or sell out of their own names to the amount of
hundreds of thousands.
19 Should other brokers not come into the market to sell to
him, he is then obliged, at a certain hour of the day, to go
among his brethren to get it at the most suitable price
possible. This is sometimes the cause of a momentary rise,
and what is known by the jobbers turning out bears for the
day. A depression some-times takes place on the same
principle when they are bulls for a future day, and cannot
take stock.
After the stock is transferred from the seller to the buyer, instead of the money, he will write you a draft on his banker, although he has no effects to discharge the same till such time as he is put in possession of it also by the broker whom he sold it to; and it sometimes occurs, such drafts having to pass through the clearing-house,{20} the principal is not certain whether his money, is safe till the day following. In this way does the floating stock pass and repass through the Stock Exchange to and from the public, each jobber seizing and laying his hand on as much as he can, besides the eighth per cent. certain, which the established rule gives in their favour: the price frequently gives way, or rises much more to his advantage, which advantage is lost to the principals, and thrown into the pockets of middle men by the carelessness and indolence of the broker, who will not trouble himself in looking out for such persons as he might do business with in a more direct way.{21} When the Stock Market was more public, that is, when they admitted the public by paying sixpence a day, competitors for government loans were to be seen in numbers, which enabled ministers to make good bargains for the country{22};
20 A room situated in Lombard-street, where the banking
clerks meet for the mutual exchange of drafts. The principal
business commences at three o'clock in the afternoon, and
the balances are paid and received at five o'clock.
21 Query,—When a broker has to buy and sell for two
different principals, may he not act as a jobber also, and
put the turns into his own pocket? In such cases the jobbers
are convenient cloaks to disguise the transaction.
22 The loans taken by Boyd and Co., Goldsmidt, and others,
were generally contracted for upon much better terms for the
country than those taken by the Stock Exchange; but as they
were contending against what is known by the interests of
the house, they all were ruined in their turns, as the
jobbers could always depreciate the value of stocks by
making sales for time of that they did not possess.
but, since the establishment of the present private market, the stock-jobbers have been found to have so much power over the price of stocks, after loans had been contracted for, that real monied men, merchants, and bankers, have been obliged to creep in under the wings of this body of gamblers, and be satisfied with what portion of each loan this junto pleases to deal out to them."—In this way little Principal opened the secret volume of the Stock Exchange frauds, and exposed to our view the vile traffic carried on there by the flat-catchers of the money market. In ordinary cases it would be a task of extreme peril for a stranger to intrude into this sanctum sanctorum; but as our friend, the broker, was highly respected, we were allowed to pass through unmolested—a favour that will operate in suppressing our notice of certain characters whom we recognized within. It will, however, hardly be credited that in this place, where every man is by profession a gambler, and sharping is the great qualification, so much of their time is devoted to tricks and fancies that would disgrace a school-boy. Among these the most prominent is hustling a stranger; an ungenerous and unmanly practice, that is too often played off upon the unsuspecting, who have been, perhaps, purposely invited into the den for the amusement of the wolves. Another point of amusement is flying a tile, or slating a man, as the phrases of the Stock Exchange describe it. An anecdote is told of one of their own members which will best convey an idea of this trick. One who was ever foremost in slating his brothers, or kicking about a new castor, had himself just sported a new hat, but, with prudence which is proverbial among the craft, he would leave his new tile at the counting-house, and proceed to the Stock Exchange in an old one kept for the purpose: this becoming known to some of the wags, members of the house, they despatched a note and obtained the new hat, which no sooner made its appearance in the house than it was thrown up for general sport; a joke in which none participated more freely than the unsuspecting owner, whose chagrin may be very well conceived, when, on his return to his counting-house from Capel-court, he discovered that he had been assisting in kicking his own property to pieces. Another trick of these wags is the screwing up a number of pieces of paper longitudinally with a portion of black ink inside them, and lying on the table before some person, whom they will endeavour to engage in serious conversation upon the state of the market, when it is ten to one if he does not roll some of these twisters between his fingers, and from agitation or deep thought on his approaching losses, or the risk of his speculations, blacken his fingers and his face, to the horse-laughical amusement of the by-standers. One of the best among the recent jokes my friend Bob has depicted to the life. (See Plate.) The fame of Mr. Wright's brown pony had often reached the ears of his brother brokers, but hitherto the animal himself was personally unknown: to obviate this difficulty, some sportive wight ascertained the stable where the old gentleman usually left his nag during the time he was attending the market, and by a well-executed forgery succeeded in bringing the pony to Capel-court, when, without further ceremony, he was introduced into the house during the high bustle of the market, to the no small amusement of the house and the utter astonishment of his owner.
There is a new Stock Exchange established in Capel-court, where a number of Jews, shopkeepers, and tradesmen assemble, and jobbers who have emigrated from their friends in the upper house, some of whom have either been ducks, or have retired out of it on some honourable occasion; but as all is conducted upon honour in this traffic of gambling, these men also set up the principle of honour, on which they risk what has been honourably brought away from their honourable fellow labourers in the principal vineyard: these men stand generally in the Alley, and, hearing what is going on in the other market (as they speculate also upon the price established there), they will give advice to strangers who may be on the out-look to make, as they expect, a speedy fortune by dabbling in the stocks. If they find a person to be respectable, they will offer to do business with him on the principle of their brethren, and also exact the one-eighth per cent, as they do, trusting to his honour, that (although they do not know where he lives) he will appear on or before the settling day to balance the account, and pay or receive the difference.{23}
These jobbers speculate a great deal upon puts and calls, and will give a chance sometimes for a mere trifle. They have not, like the private market, the public generally to work upon, the by-laws in the Stock Exchange prohibiting any broker or jobber, being a regular member, from dealing with them, on pain of forfeiting his right to re-enter; but, notwithstanding, some of the brokers, and even the jobbers inside, will run all risks when there appears a good chance of getting a turn on the price in their favour: from this cause, however, the Alley, or New Stock Exchange jobbers, are obliged to gamble more directly with each other; consequently many get thrown to the leeward, and those who stand longest are generally such as have other resources from the trade or
23 There have many lately entered into gambling transactions
with these gentlemen, and have taken the profit so long as
they were right in their speculations; but as soon as a loss
came upon them, knowing they have no black board, they walk
themselves coolly away with what they get.
occupation they carry on elsewhere. From this place, called by the members of the house Lower Tartary, or Hell, the next step of degradation, when obliged to waddle out of the court, is the Rotunda of New Botany Bay. Here may be seen the private market in miniature; a crowd of persons calling themselves jobbers and brokers, and, of course, a market to serve any person who will deal with them; the same system of ear-wigging, nods, and winks, is apparent, and the same fiddling, rasping, and attempts at overreaching each other, as in Upper Tartary, or the Den; and of course, while they rasp and fiddle, their principals have to pay for the music: but as no great bargains are contracted here (these good things being reserved for a select few in the private market), the jobbers, who are chiefly of little note, are glad if they can pick up a few shillings for a day's job, by cutting out money stock for servants' and other people's small earnings. Here may be seen my lord's footman from the west end of the town, who is a great politician, and knows for a certainty that the stocks will be down; therefore he wants to sell out his 50L. savings, to get in at less: here also may be some other lord's footman, who has taken a different view of things, and wants to buy; and, although their respective brokers might meet each other, and transact business in a direct way, at a given price, notwithstanding they either do, or they pretend to have given the jobbers the turn,{24} that is, the one sold at one-eighth, and the other bought at one-fourth.—This market, as in the Alley, is ruled by the prices established in the private gambling market, which being the case, some will have messengers running to and from this market to see how the puffs and bangs proceed; and if they can saddle their neighbour before he knows the price is changed, it is thought good jobbing. From the Stock
24 Some act both as jobbers and brokers, and will charge a
com-mission for selling their own stock.