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.
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.