HOW FALSE LIGHTS ARE SHOWN.
The arts and tricks resorted to, in this kind of gambling, are the same as in all others. When the brokers and speculators engaged in it, have no customers on whom to practice, and each one is shy of the other, they lovingly play among themselves. To keep up appearances, large transactions take place, which, by mutual understanding, are not to be fulfilled, and like children at chequers, when the game is out, the kernels are thrown into common stock again, and a new one begun. And, strange as it may seem, these transactions are published in all the commercial newspapers, and go forth to the world as the evidences of value, and the condition of the money market, to deceive the unwary. Every editor, who properly regards the welfare of the community, over which his position gives him great influence, ought at once to refuse the publication of any sale of stock, but such as are of standard and intrinsic value; for it is by these means, that so many are drawn from their regular pursuits, into ruinous speculations; when, if nothing but truth were told them, they would stay at home, and save their money—to say nothing of the mischief of idleness and dissipation, which the habit of gambling engenders.
WHO IS TO BLAME.
I must not be understood as applying what I have said, or shall say, to every man in Wall-street: far otherwise. Nor would I be understood as applying it to brokers exclusively, or to any one in particular. I only say, that if the coat I shall cut out suits any man’s shape and dimensions, let him put it on. On the whole, the brokers are less to blame than those who support them; and, if left to themselves, their trade in fancy stocks would soon cease. If people will gamble, there must be some place to do it, and some persons as directors, agents, and co-partners in the business; and, until the people are reformed, it is doubtful if Crockford, in London, and the brokers in Wall-street, are not more honest and respectable than their supporters.
SECRETS LET OUT.
Stock gamblers of very small capital, often have contracts pending, of many hundreds of thousands of dollars—they sometimes operate for a rise, sometimes for a fall, of prices. In the first case they buy deliverable at a future time, at a certain price. In the second, can they sell in the same way. And, in either case, their profit or loss depends on the rise or fall of the stock bought or sold; as, indeed, all their profits do; for there is no such thing as a dealer’s profit for the labor and risk of distribution, as in merchandise. The whole process is a mere betting upon the future value. In this way, it will be seen that the number of chances for gain or loss is just doubled, as compared with dealers in merchandise, who always get what they buy, and sell only what they have got. They frequently make a condition to their time-contracts of “buyer’s option,” of “seller’s option,” which means, that the person to whom the option is given, may, at any time within the period of the term of sale, by giving one day’s notice, call for the stocks, and this enables them to take advantage of any temporary fluctuation which may happen, or which the parties interested may be able to create. These circumstances easily explain the reason why fortunes are often so suddenly made or lost in stocks. No system could be devised better calculated than this is, to excite a gambling propensity, and afford an opportunity for the exercise of ingenuity and cunning.
“But,” said my friend, “lest I should weary your patience, by too much generalizing, and seriousness, I will inform you how Mr. Tell-it got out of a bad speculation.”
A NO. 1. CHARACTER.
Mr. T. is a regular descendant of Mr. Jacob Broker, of the seventh generation, and one that does honor to his ancestral renown. No greater contradiction of terms can possibly be used, than exists between his name and character, for he was never known to tell a thing that he knew, however trifling. His conversation and answers are wholly by interrogatory. When asked at what price he will sell, his answer is, “what will you give?” and he never commits himself in a promise, without first receiving a promise of another, or, what suits his taste much better, something tangible in its stead. This peculiarity of mind has led to one great virtue, to which I bear willing and honorable testimony—he was never known to tell a lie. If people take false impressions, it is because they assume false premises—if they indulge in wrong opinions, it is because they have not been diligent enough in search of truth—and, as he is a competitor for the great prize of life, he cannot spend his time to correct other people’s deficiencies.
HIS CHARACTER.