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.