Of mighty Wealth we vapour,
When all the Riches that we boast,
Consists in Scraps of Paper.
CHAPTER XX
First mention of the Stock Exchange—Attempt at hoax—Daniel’s fraud—Berenger’s fraud—Bubbles of 1825—The Railway Mania—30th Nov. 1845 at the Board of Trade—The fever at its height—The Marquis of Clanricarde pricks the bubble.
In 1734 an Act was passed (7 Geo. II., c. 8) entitled “An Act to prevent the infamous practice of Stock jobbing,” which provided that no loss in bargains for time should be recoverable in the Courts, and placed such speculations outside the Law altogether. It was a dead letter, but was in force till 1860, when it was repealed.
The first mention of the Stock Exchange as such, is in the Daily Advertiser of Thursday, July 15, 1773. “On Tuesday, the Brokers and others at New Jonathan’s came to a Resolution that, instead of its being called New Jonathan’s, it is to be named the Stock Exchange, which is to be painted over the door.” And here they abode until, in 1801, the Stockbrokers laid the first stone of a building of their own: having purchased Mendoza’s boxing room, the Debating Forum of Capel Court, and buildings contiguous to that site.
On May 5, 1803, an attempt was made to hoax the Stock Exchange, which was partially successful. On that day, at half-past eight in the morning, a man, booted and spurred, and having every appearance of having come off a long journey, rushed up to the Mansion House, and inquired for the Lord Mayor, saying he was a messenger from the Foreign Office, and had a letter for his lordship. When he was told he was not within, he said he would leave the letter, and begged the servant to place it where the Lord Mayor should get it the moment of his return; which duly happened. The letter ran thus: