There are several reasons for it. Interest is very low in England, and for the man who desires to live “like a gentleman” the temptation to increase the rate is very strong. Then again there is an immense amount of capital lying idle and seeking investment, and the man who has just enough money at three per cent. to live upon very closely, is always anxious to increase his income by making it six. Every man who has just money enough to drink beer, has an insatiable thirst for champagne. And the Englishman who has a strong sense of mercantile honor, naturally has more faith than the inhabitant of a country where the standard of honor is lower, and men are, by habit, more cautious of believing.
The papers of London are filled with prospectuses of companies organized for developing something in all parts of the world, and these prospectuses are so written that they would deceive the very elect.
The principal point at the beginning is to get a board with a great many lords, dukes, esquires, and all that sort of thing, on it, the average Englishman not seeming to realize that there are a good many of these gentry who are as impecunious as anybody else, and who would do a piece of roguery for enough to live upon comfortably upon the continent, as readily as the commonest sharper in the world. The baronet has a stomach to fill and a back to cover the same as the costermonger. In this, all humanity stands upon an equality.
Before me lies a respectable paper, its pages filled with glowing advertisements of projected companies. The first is for the “Acquiring and further developing the well-known so-and-so gold mine,” in Venezuela.
It begins with the Board of Directors, not one of whom is less in degree than an Esquire, and several “Sirs” figure in it. Then comes the bankers—nothing in London is complete without a banker—then solicitors, then brokers. After this elaborate outfit, all of which looks as solvent and sound as the Bank of England, comes a glowing prospectus.
Nothing can be finer than this prospectus. “The property proposed to be acquird consists of six hundred and fifty-nine acres, which contain the most of the noted Venezuela gold mines. The vein has been traced on the surface for a distance of one thousand nine hundred feet,” and so on. Then comes a very complete table showing the profit that has been made mining in Venezuela, and after this a statement from “Mr. George Atwood, A. M. Inst., C. E., F. G. S., etc., etc.,”—it would not be complete without all these initials, even to the etc., the etc., showing that as learned as is stated there is more behind him,—who makes a statement as to the probable profits of the enterprise, all of which are as good as anybody could desire. The estimated profits are set down at twenty per cent. on the investment.
The capital wanted is two million five hundred thousand dollars, in shares of five dollars each. You are asked to pay the moderate sum of sixty-two cents on application, which is modest enough, and the balance of the five dollars you pay as the work goes on.
AIR-CASTLES.
What could be better than this? Here is a man with some money bearing three per cent., and here is a proposition to give him twenty per cent. There are “Honorables,” and “Sirs,” and “Esquires” on the board, and Mr. Atwood, F. R. S., and all the rest of it, shows that twenty per cent. has been made in Venezuela. Why should not the man convert some of his beggarly three per cents. into cash and take a shy at it, as Wall street would say, and set up his carriage on the profits? True, he don’t know one of the Sirs or Honorables, and Atwood, F. R. S., etc., is quite as unknown to him. But then the advertisements! They cover half a page in each paper in London, and that costs an immense sum, and were there not something in it how could they make that vast expenditure?
He takes it, never dreaming that the speculators who pay for these advertisements, do it for the purpose of catching just such gudgeons as he is, knowing, for they know human nature, that the modest announcements that are made for really solid investments, would not catch him at all.