In these, the dealings are, as I have said, either as to pieces of paper representing values, or as to merchandise in hand or at sea; and, I may add, as to pieces of paper, representing this merchandise, called Warrants and Bills of Lading.
The betting in the Stock Exchange concerns itself with the Paper of the former class, and the betting of the Merchants' Exchange with the Paper of the second kind. All this grows directly out of the Bank paper and the Credit system, before mentioned.
All values are founded upon these nominal promises to pay. But the promises themselves are ever undergoing changes, according to the varying circumstances. The promise to-day looks well—it is estimated at so much; to-morrow it does not look so well—and it is estimated at less worth. Besides, all the gold and silver in the world could not pay a twentieth part of these promises. Thus the fluctuations are incessant. The betting at the Stock Exchange has reference to these fluctuations. One of the betters is interested to have a rise, another to have a fall, of value. One agrees to deliver at a future day, at a certain price; all are interested to bring about a change either one way or another. The man who desires a rise may not be scrupulous as to any means which may produce the rise; and he who wishes a fall of price will eagerly second anything which will have that effect. Consider the consequences upon the honesty and good faith of those who engage in this betting!
The Merchants' Exchange is not so devoted to absolute betting; yet its largest business partakes of that vice. One buys a cargo at sea; another agrees to deliver a cargo three months hence. One sells what he has not, for a future delivery. Another buys what he never intends to receive, deliverable to him in the future. No money is paid, nor received. The buyers and sellers are merely gambling—betting (as in the Stock Exchange) upon the rise or fall of prices! And are interested—the one to advance the price, and the other to lower the price, of the thing dealt in!
Consider the temptation to unfair practices, the inevitable tricks, false rumours, lies, and deviations from honourable conduct involved in such transactions! Reflect upon the consequences to the honest trader, who is, in his very honesty, all the more easily tricked by the unscrupulous!
The stronghold of these various gambling Establishments, and the grand feature, in fact, of the English business life, is Credit—to which I will devote some space. We have nothing like it, nor had the ancient barbarians of the West. It is, perhaps, the most distinguishing thing in the Barbarian life.
As already hinted, Credit means that a Promise shall stand for performance.
It had its rise among the Barbarian tribes, not very long since, and grew out of their incessant wars. Particularly the English, finding they could not pay the armed bands, contrived to get the gold out of the hands of the people in exchange for the Bank-paper, and then, forcing the people to still accept the paper for gold, issued paper to such an amount as Government needed! From that period the people, especially the trading classes, making directly or indirectly nearly the whole, found an advantage in resorting to the same fiction—and the Government could do no other than give to the trader, who could not pay his promise, the same relief which it took for itself—for the Bank. It allowed him to pay what he could, and go on as before! No matter that he paid only one-third part—unless he had been guilty of some extreme roguery, he received a discharge from all his promises, and could begin to make new ones and go on in trade as before!
In this way, the Barbarian community is one wherein a false principle corrupts all. Boldness, recklessness, cunning, to say nothing of positive criminality, are encouraged; honour, delicacy, simple integrity, are driven into obscurity. Let him who would preserve his conscience smooth and clear, a mirror whence divinity be reflected, shun all the marts and ways of trade!
The Revenues of the Government are derived largely from the dealers in the great Marts, and it is immediately interested in the upholding of the Credit of the innumerable paper-promises of all kinds made by these and by the Betting Houses. It is, in fact, the chief supporter of the whole sham—it cannot be otherwise, for the English State rests upon it. The promises of the Government to pay gold can never be kept, and it forces an acceptance of a mere fraction, from time to time, as a sufficient redemption of its promises made generations ago!