A Week in Wall Street / By One Who Knows

by Frederick Jackson

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.