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TAe whole of this Work is contained in the Bankers^ Magazine for 1850. 
 
 CHRONICLES AND CHARACTERS 
 
 STOCK EXCHANGE 
 
 JOHN FRANCIS. 
 
 AUTHOR OP 
 
 THE HISTORY OF THE BANK OF ENGLAND, ITS TIMES AND TRADITIONS. 
 
 FIRST AMERICAN EDITION. 
 
 TO WHICH ARE ADDED STOCK TABLES FROM 1732 TO 1846; DIVIDENDS ON BANK 
 OF ENGLAND STOCK FROM 1694 TO 1847. &c. 
 
 BOSTON: 
 
 WM. CROSBY AND H. P. NICHOLS, 
 
 111 Washington Street. 
 
 1850. 
 
^^'^ 
 
 I 
 
INSCRIBED, 
 
 BY PERMISSION, 
 
 TO SAMUEL GURNEY, Esq. 
 
 THIS VOLTTMB, KECORDING CITY SCENES, AND RELATING TO CITY TRANS- 
 ACTIONS, IS, TO SAMUEL GURNEY, ONE OP LONDON'S MOST EMINENT CITIZENS, 
 RESPECTFULLY DEDICATED, BT 
 
 HIS MOST OBEDIENT SERVANT, 
 
 JOHN FRANCIS. 
 
PREFACE. 
 
 To GATHER the many remarkable incidents connect- 
 ed with the National Debt; to present an anecdoti- 
 cal sketch of the causes which necessitated, and the 
 corruptions which increased it; to reproduce its prin- 
 cipal characters ; to detail the many evils of lotter- 
 ies ; to relate the difficulties in the early history of 
 railways ; to popularize those loans, of which the 
 Poyais, with its melancholy tragedy, and the Greek, 
 with its whimsical transactions, were such striking 
 exemplars ; and to group these subjects around the 
 Stock Exchange, is the object of a portion of the 
 present volume. 
 
 Any work which tends to familiarize the origin 
 and progress of the National Debt, which shows that 
 it was raised for no idle cause, and increased for no 
 trifling purpose, may be useful in the consideration 
 of that encumbrance which must, sooner or later, be 
 reduced or repudiated. 
 
VI PREFACE. 
 
 The volume does not profess to be statistical, — 
 there are abundant works of a financial kind upon 
 the subject. Mr. Van Sommer's valuable Tables, to 
 which the writer acknowledges his obligations, and 
 which, with Mr. Wilkinson's Law of the Public 
 Funds, should be possessed by every member of the 
 Stock Exchange ; the works of McCulloch, of Ham- 
 ilton, of Grellier, of Fenn, render such a production 
 unnecessary. The present volume is a popular nar- 
 rative of the money power of England, intended to 
 be at once interesting and suggestive. 
 
 Shooter^s Hill. 
 
CONTENTS. 
 
 CHAPTER I. 
 
 PAoa 
 
 Ancient Mode of supporting Governments. — Ignorance of Political Econ- 
 omy. — Mercantile Greatness. — Early Supplies. — Tulip Mania. — Acces- 
 sion of William, 1 
 
 CHAPTER II. 
 
 The Earliest National Debt. — History of Tontines. — Of the Money In- 
 terest, its Origin, Extravagance, and Folly. — Royal Exchange. — First 
 Irredeemable Debt. — Tricks of the Brokers. — Jobbing in East India Stock, 
 — False Reports. — Importance of the English Funds. — Picture of the 
 Alley. — Systematic Jobbing of Sir Henry Furnese, Medina, and Marlbor- 
 ough. — Thomas Guy, a Dealer in the Alley. 6 
 
 CHAPTER III. 
 
 Enormous Bribery by William. — Increased Taxation. — Speech of Sir 
 Charles Sedley. — Wrongs of the Soldiers. — Defence of William. — Moral 
 Disorganization of the Country. — First Exchequer-Bill Fraud. — First 
 Foreign Loan. — Romantic Fraud in 1715. — Political Fraud of ^Change 
 Alky, — Interference of the House of Peers. — First Hoax. ... 12 
 
 CHAPTER IV. 
 
 Charitable Corporation Fraud. — lis Discovery. — Appalling Effects 
 and Remedy. — Marlborough^ s Victories, their History, and the Loans they 
 brought. — Augmented Importance of the Stock Exchange. — Dislike to the 
 Members. — Increased Loans. — Difficulties in procuring them. — Statement 
 of Sir Robert Walpole. — Gifts of Contractors to Clothiers, — First Pay- 
 ment of Dividends by the Bank. — South-Sea Anecdotes 19 
 
Vm CONTENTS. 
 
 CHAPTER V. 
 
 Life of Thomas Guy. — Imposition in Sailors'' Tickets. — Foreign Loan 
 attempted. — Sir John Barnard. — Eivpr esses of the Jobbers. — Foreign 
 Commissions. — Origin of Time-Bargains . — Attempt to stop them. — Its 
 Inadequacy. — Proposal to reduce the Interest on the National Debt. — Op- 
 position of Sir Robert Walpole. — New Mode of raising Loans. — Compar- 
 ative Interest in Land and Funds. — Punishment of Manasseh Lopez. — 
 ^he first Reduction of Interest. — Life of Sir John Barnard. ... 25 
 
 CHAPTER VI. 
 
 Origin of Neiu Loans. — Fraud of a Stock-broker. — East India Stock. 
 — Sketch of Sampson Gideon, the great Jew Broker. — East India Com- 
 pany. — Restriction of its Dividends. — Liberality to its Clerks. — Impor- 
 tant Decision. — Robbery at Jonathan's. — Curious Calculation concerning 
 the National Debt 31 
 
 CHAPTER VII. 
 
 Crisis of 1772. — Indian Adventurers, their Ostentation, their Character. 
 
 — Failure of Douglas, Heron, <if Co. — Neale, Fordyce, 4" Co. — Sketch 
 of Mr. Fordyce. — His Success in the Alley. — Alarm of his Partners. — 
 His Artifice. — His Failure. — General Bankruptcy. — Liberality of a Na- 
 bob. — Reply of a Quaker. — Witticism of John Wilkes. — War of Ameri- 
 can Independence. — Artifices of Ministers. — Anecdote of Mr. Atkinson. 
 
 — Value of Life on the Stock Exchange. — Longevity of a Stock-broker. 39 
 
 CHAPTER VIII. 
 
 Invention of Lotteries. — The First Lottery. — Employed by the State.-— 
 Great Increase. — Eagerness to subscribe. — Evils of Lotteries. — Suicide 
 through them. — Superstition. — Insurances. — Spread of Gambling. — 
 Promises of Lotteries. — Humorous Episodes. — Legal Interference. — Par- 
 liamentary Report. — Lottery Drawing. — Picture of Morocxo Men. — Their 
 Great Evil. — Lottery Puffing. — Epitaph on a Chancellor. — Abolition of 
 Lotteries. . 45 
 
 CHAPTER IX. 
 
 Wholesale Jobbing. — Insurance on Sick Men. — False Intelligence. — 
 Uselessness of Sir John Barnard's Act. — Origin of the Blackboard. — 
 Opposition to Loans. — Lord Chatham's Opinion of Jobbers. — Inviolability 
 of English Funds. — Parisian Banking-Houses. — Proposition to pay off 
 the National Debt. — Extravagance o/ the Contractors. — Lord George 
 Gordon's Opinion of them. — Members' Contracts. — New System adopted. 
 — Abraham Goldsmid. — Bankers' Coalition broken by him. — His Munifi- 
 cence. — His Death. — Sensation in the City. . . . . 54 
 
CONTENTS. IX 
 
 CHAPTER X. 
 
 Curious Forgery. — Its Discovery. — Loan of 1796. — Its Management. 
 — French Revolution and its Effect. — List of Subsidies to Foreign Pow- 
 ers. — Removal of Business from ^Change Alley. — Erection of the present 
 Stock Exchange. — Loyalty Loan. — Preliminaries of Peace. — Its Effect. 
 «— Hoax on the Stock Exchange. — War renewed. — Great Fraud on the 
 Jobbers. — Its Discovery. — Rights of Stock-brokers. .... 62 
 
 CHAPTER XI, 
 
 Unfounded Charge. — Joint-Stock Companies. — peculators. — - Mark 
 Sprot. — Sketch of the House of Baring. — Policies on the Life of Bona- 
 parte. — Rumors of his Death. — David Ricardo. — Forgery of Benjamin 
 Walsh. — Excitement of the Nation. — Increase of the National Debt. — 
 Sinking Fund. — Unclaimed Dividends. — Francis Baily^ ... 72 
 
 CHAPTER XII. 
 
 Review of the National Debt. — Opinions. — Bolingbroke. — Financial 
 Reform Association. — Extravagance of Government. — Schemes for paying 
 off the National Debt. — Review of them. — Proposals for Debentures. . 82 
 
 CHAPTER XIII. 
 
 Progress of Invention. — Public Roads. — Steam. — Duke of Bridge- 
 water. — Canals. — Railroads. — Thomas Gray., their Pioneer. — His Diffi- 
 culties. — Proposals for the Liverpool and Manchester Railway. — Monopoly 
 of the Canals. — Parliamentary Inquiry. — Extraordinary Opinions of Wit- 
 nesses. — The Claims of Thomas Gray. — Value of Canal Property. . 89 
 
 CHAPTER XIV. 
 
 Monetary Excitement. — Approaches to the Stock Exchange. — Gold Com- 
 pany. — Equitable Loan Company. — Frauds in Companies. — Loan to For- 
 eign ^ates. — Poyais Bubble. 96 
 
 CHAPTER XV. 
 
 Loan to Chiatemala. — Dispute concerning it. — Greek Loan. — Its Mis- 
 management. — Asserted Jobbing. — Mr. Hume. — Dr. Bowring. — Quar- 
 terly Review. — Proposed Tax on Transfers. 103 
 
 CHAPTER XVI. 
 
 Sketch of the Life of Rothschild. — Comes to England. — Introduction of 
 Foreign Loans. — Large Purchases. — Anecdotes Concerning Rothschild. — 
 His Difficulties and Annoyances. — His Death and Burial. — Last Crisis on 
 the Stock Exchange 109 
 
CONTENTS. 
 
 CHAPTER XVII 
 
 Legends of the Stock Exchange. — Mr. Dunbar. — Duke of Newcastle. 
 — French Ambassador. — James Bolland. — Extraordinary Incident. — For- 
 tunate Adventure. — Morals and Manners of the Stock Exchange. — Its Con- 
 stitution and Arrangements 118 
 
 CHAPTER XVIII. 
 
 Life Assurance. — Its Benefits, — Its Commencement. — Suicide of an In- 
 surer. — Insurance of Invalid Lives. — The Gresham. — Sketch of the West 
 Middlesex Delusion 125 
 
 APPENDIX. 
 
 The Anatomy of Exchange Alley; or a System of Stock Jobbing. Prov- 
 ing that Scandalous Trade, as it is now carried on, to be Knavish in its Pri- 
 vate Practice, and Treason in its Public. 135 
 
 Stock Tables; Dividend Tables 153 
 
CHRONICLES AND CHARACTERS 
 
 STOCK EXCHANGE 
 
 CHAPTER I. 
 
 Ancient Mode of supporting Governments. — Ignorance of Political Economy. 
 — Mercantile Greatness. — Ikrly Supplies. — Thlip Mania. — Accession of 
 William. 
 
 The national debt has been designated by some a national nuisance ; 
 by others it has been termed a national necessity. In the earlier history 
 of the world, when war was a war for dominion, and spoliation followed 
 conquest, the victor returned rich with the treasures of conquered states, 
 and his captive paid trebly the expenses of the war. It was thus that the 
 mistress of the world became an emporium for the gathered wealth of 
 temples, for the gorgeous ornaments of a subdued aristocracy, and for 
 the gold which had filled the treasury of barbarous but luxurious nations^ 
 These accumulations, together with annual tributes, prevented the forma- 
 tion of a public debt. The Goth, when he poured from his barren re- 
 cesses upon the cultivated plains of Italy, ignorant of political economy 
 as a science, felt it as a principle, and more than repaid the expenses of 
 his foray by exactmg the riches of imperial Rome. Modern Europe 
 teaches us to similar purport ; and Napoleon, in those wars which, to 
 some a memory, are to others history, acted upon the same plan, and 
 made Paris a receptacle for the spoil of many nations. 
 
 In the early annals of England, the feudal system prevented the cre- 
 ation of a national debt. The Saxon serf was compelled to follow the 
 banner of his Norman master. The Norman baron, at the command of 
 his sovereign, called his followers to the field, and having, if successful, 
 enriched himself, retraced his path to his mountain fastness and his island 
 home. In these rude ages the art of levying money was unknown ; and 
 victorious armies were often dispersed for want of funds. The con- 
 queror of Pavia was compelled to disband 24,000 men because he could 
 not raise taxes to support them ; and it is a suggestive fact, that wheny 
 1 1 
 
Ancient Mode of supporting Governments. 
 
 during the reign of the third Henry, it was necessary to procure £ 50,000, 
 and a tax of ^ 1 25. 4d. was levied on each parish in England, it only 
 produced about ^9,500, there being but 8,500 parishes ; so ignorant 
 were the authorities of the very machinery of the state they governed. 
 
 From a very early period, the mercantile capacity of England has 
 been developed ; and her insular position, which at once suggested and 
 favored commerce, was taken advantage of by laymen and churchmen. 
 Bishops entered into speculations in herrings, and abbots did not disdain 
 to unite the smuggling with a more saintly calling. But there were other 
 and more legitimate followers of that pursuit which has since made the 
 name of an English merchant a symbol of English greatness. Among 
 these, William de la Pole stands prominently forward ; and the founder 
 of the House of Suffolk is familiar to the student of commercial history. 
 William Canyng — that name so intimately connected with the fortunes 
 of " the marvellous boy who perished in his pride " — and Richard 
 Whittington — dear to household memories, and the founder of many 
 princely charities — were others whose munificence was only surpassed 
 by their wealth. 
 
 A slight sketch of the tyranny and injustice employed by our earlier 
 monarchs in the production of revenue, may not be unamusing to the 
 readers of the present volume. The records of the Exchequer prove 
 that barbaric acts were performed to obtain money; that justice was 
 openly bought and sold ; that the supreme judicature of the country 
 could only be approached by bribes to the monarch. The county of 
 Norfolk paid a large sum to Henry I. to secure fair dealing. Yarmouth 
 paid heavily to prevent a king from violating his own charter. Com- 
 merce was controlled, and trade was harassed. Corporations and mo- 
 nopolies were created at the monarch's pleasure ; and, as nothing was too 
 small to escape his notice, so nothing was too large to escape his grasp. 
 The wife of Hugh de Neville paid two hundred hens to enjoy the society 
 of her husband twelve hours in prison ; and an abbot paid largely for 
 permission to secure his wood from being stolen. To mitigate the king's 
 anger, or obtain the king's services, money was equally necessary. 
 When peer and prior were sufficiently strong to resist, or sufficiently 
 poor to escape, the farmer and the peasant were visited. The approach 
 of the court was like the approach of the plague ; and men ran to con- 
 ceal their effects and their persons until the royal plunderer had passed. 
 
 Extraordinary emergencies caused extraordinary expenses ; and the 
 call to arms which resounded throughout Europe when Peter the Hermit 
 preached deliverance to the captive Sepulchre, was responded to by 
 Richard I. with the vehemence and energy of his character. To com- 
 pass his aim, he mortgaged the customs and he farmed the revenues. 
 He exacted money from his subjects in proportion to their wealth, and 
 declared he would sell London itself rather than forego his cherished 
 object. He feigned the loss of his signet, to procure fees ; and, to crown 
 all, resumed, on his return, the property he had previously sold, on the 
 pretence that he had no right to alienate it. 
 
 King John adopted the notable plan of imprisoning the mistresses of 
 the priests, confident that the money he could not obtain from their 
 
 2 
 
Prerogatives of the Crown. 
 
 cupidity he would from their lust. Henry III. seized the merchandise of 
 his subjects, and borrowed a large sum besides, for which he paid a high 
 interest, and which the Parliament refused to discharge. Edward I. 
 seized the money and plate of monasteries and churches, feigned a voy- 
 age to the Holy Land, and, when funds were collected to aid him, kept 
 the money, and refused to go. Edward III. erected monopolies, exacted 
 loans, levied arbitrary fines, imposed arbitrary taxes, and, notwithstanding 
 the determined remonstrances of the Commons, claimed the right of doing 
 so at pleasure. 
 
 Richard II. pawned the jewels of the crown, sold the furniture of the 
 palace, went from place to place in the fashion of one soliciting alms, 
 and was deposed partially because he extorted large sums which he never 
 repaid. The reign of Henry V., brilliant as it was, would have proved 
 yet more so, had an authorized mode of raising supplies been then organ- 
 ized. Although he took from all quarters, sold his jewels, and borrowed 
 on the security of his crown, he was often compelled to stop in a career of 
 the most splendid success for lack of money. Edward IV. was called the 
 handsomest tax-gatherer in his kingdom ; and when he kissed a widow 
 because she gave more than he expected, it is said she doubled the 
 amount, in expectation of a second kiss. Henry VII. adopted all modes 
 and methods ; and, having levied a benevolence, made a large claim on 
 those who lived frugally, because they must have saved by their fru- 
 gality ; while, if they lived splendidly, they were dealt with as opulent. 
 It must, however, be recorded of this monarch, that he lent money, with- 
 out interest, to many merchants whose capital was not sufficient for their 
 commercial operations. When the eighth Henry attempted to raise a 
 forced loan of unusual amount, with unusual rigor, the people said, if 
 they were treated thus, " England was bond, and not free." The county 
 of Suffolk rose in arms ; and had not even this man's stubborn spirit 
 quailed before it, the resistance would have changed into rebellion. No 
 sooner had the monarch exhausted all Parliamentary supplies, than he 
 carried out, on a grand scale, the robberies he had often achieved on a 
 small one, by seizing the accumulated property of the monastic classes. 
 In 1522, he required a general loan of ten per cent, upon all property 
 from .£20 to .£300, and a higher rate on larger sums. By courtesy, it 
 was termed a loan ; but when, seven years afterwards, a subservient Par- 
 liament acquitted him of all obligation to pay it, a harsher name was re- 
 corded in the minds, than the tongues of the people dared to express. 
 
 To the English sovereign a certain .power over commerce had always 
 been intrusted ; but Elizabeth stretched her prerogative, and granted 
 monopolies by scores. Prices rose enormously, and the evil was felt 
 by every family in the realm. The House of Commons remonstrated. 
 When a long list of patents for monopolies was read, one sturdy member 
 demanded, " Is not bread there } " " Bread ! " quoth one. " Bread ! " 
 cried another. " Yea, bread ! " said Mr. Hackwell ; " for, if care be 
 not taken, bread will be there before next Parliament." Nor was this 
 all : the coach of the chief minister was surrounded by the populace ; 
 menacing murmurs were heard cursing patents; and indignant voices 
 declared that the old liberties of England should not be encroached on by 
 
 3 
 
Commencement of the National Belt. 
 
 new prerogatives. With admirable sagacity, the queen saw the necessity 
 of yielding, and did it while she could with grace and dignity. But this 
 sovereign improved upon the plans of her predecessors, — she kept the 
 temporalities of bishoprics in her own hands for years, and appropriated 
 the landed property of sees. Under the name of New Year's gifts, she 
 extorted large sums from the frequenters of the court ; she ordered com- 
 panies to lend her money, — to borrow, if they did not possess it, — and, 
 if she had more than she required, she would return part, provided they 
 would pay her interest for that on which she paid them nothing. To the 
 citizen of the nineteenth century this must appear a fable ; but it is a 
 recorded fact, that Elizabeth borrowed money from the citizens, found 
 she had more than she required, and, instead of repaying it, re-lent it to 
 them at seven per cent, on the security of gold and silver plate. 
 
 Charles I. seized the money of his merchants ; and his bonds were 
 hawked about the streets, were offered to the people as they left church, 
 and sold to the highest bidder. The Commonwealth were debtors, on the 
 security of the forfeited estates. Charles 11. took money from France, 
 shut up the Exchequer, borrowed from his friends, and did any thing 
 rather than run the risk of being again sent on his travels. Thus, it 
 would seem, the exchequer of the earlier monarchs was in the pockets 
 of the people ; that of Henry VIII. in the suppressed monasteries ; Eliz- 
 abeth in the corporations ; and Charles II. wherever he could find it. 
 
 The abdication of James 11. and the arrival of William III. form an era 
 in the history of the monetary world. The plans adopted by the latter to 
 crush the power of France, and raise the credit of England, were the 
 commencement of that great accumulation known as the National Debt, 
 and the origin, though remote, of that building celebrated throughout 
 Europe as the Stock Exchange. The rapid sketch now presented of the 
 mode in which money was supplied confirms the remark of Mr. Macaulay, 
 that " there can be no greater error than to imagine the device of meet- 
 ing the exigencies of the state by loans was imported into our island by 
 William III. From a period of immemorial antiquity, it had been the 
 practice of every English government to contract debts. What the 
 Revolution introduced was the practice of honestly paying them." 
 
 The earliest instance of that fatal love of speculation, so ruinous to the 
 character and credit of all who possess it, occurred in 1634 ; and the his- 
 tory of the tulip mania in Holland is as instructive as that of any similar 
 period. In the above year, the chief cities of the Netherlands engaged in 
 a traffic which destroyed commerce, and encouraged gambling ; which en- 
 listed the greediness of the rich and the desire of the poor ; which raised 
 the value of a flower to more than its weight in gold ; and which ended, 
 as all such periods have ended, in wild and wretched despair. The many 
 were ruined, the few were enriched ; and tulips were as eagerly sought 
 in 1634, as railway scrip in 1844. The speculation was conducted on 
 similar principles. Bargains were made for the delivery of certain roots ; 
 and when, as in one case, there were but two in the market, lordship 
 and land, horses and oxen, were sold to pay the deficiency. Contracts 
 were made, and thousands of florins paid, for tulips which were never 
 seen by broker, by buyer, or by seller. For a- time, as usual, all won, 
 
 4 
 
The Tulip Mania, 
 
 and no one lost. Poor persons became wealthy. High and low traded 
 in flowers ; sumptuous entertainments confirmed their bargains ; notaries 
 grew rich ; and even the unimaginative Hollander fancied he saw a sure 
 and certain prosperity before him. People of all professions turned theii- 
 property into cash ; houses and furniture were offered at ruinous prices ; 
 the idea spread throughout the country that the passion for tulips would 
 last for ever ; and when it was known that foreigners were seized with 
 the fever, it was believed that the wealth of the world would concentrate 
 on the shores of the Zuyder Zee, and that poverty would become a tra- 
 dition in Holland. That they were honest in their belief is proved by 
 the prices they paid ; and the following list shows that the mania must 
 indeed have been deep, when goods to the value of 2,500 florins were 
 given for one root : — 
 
 Florins. 
 
 2 Lasts of wheat .... 448 
 
 4 Lasts of rye 558 
 
 4 Oxen 480 
 
 3 Swine . 240 
 
 12 Sheep . .' 120 
 
 2 Hogsheads of wine 
 
 70 
 
 
 Fiorina. 
 
 4 Tons of beer . . 
 
 . . 32 
 
 4 Tons of butter . 
 
 . . 192 
 
 1000 Pounds of cheese 
 
 . . 120 
 
 1 Bed 
 
 . . 100 
 
 1 Suit of clothes . 
 
 . . 80 
 
 1 Silver beaker . . 
 
 . . 60 
 
 Another species commonly fetched two thousand florins; a third was 
 valued at a new carriage, two gray horses, and a complete harness. 
 Twelve acres of land were paid for a fourth ,j and 60,000 florins were 
 made by one man in a few weeks. But the panic came at last. Con- 
 fidence vanished ; contracts were void ; defaulters were announced in 
 every town of Holland ; dreams of wealth were dissipated ; and they 
 who, a week before, rejoiced in the possession of a few tulips which 
 would have realized a princely fortune, looked sad and stupefied on the 
 miserable bulbs before them, valueless in themselves, and unsalable at 
 any price. To parry the blow, the tulip-merchants held public meetings, 
 and made pompous speeches, in which they proved that their goods were 
 worth as much as ever, and that a panic was absurd and unjust. The 
 speeches produced great applause, but the bulb continued valueless ; and, 
 though actions for breach of contract were threatened, the law refused to 
 take cognizance of gambling transactions. Even the wisdom of the 
 Deliberative Council at the Hague was at fault, and to find a remedy was 
 beyond the power of the government. Many years passed before the 
 country recovered from the shock, or commerce revived from the de- 
 pression which followed the Tulipomania ; and which, not confined exclu- 
 sively to Holland, visited London and Paris, and gave a fictitious impor- 
 tance to the tulip in the two greatest capitals of the world. 
 
 1* 
 
Reign of William the Third. 
 
 CHAPTER II. 
 
 T%e Earliest National Debt. — History of Tontines. — Of the Money Interest, 
 its Origin, Extravagance, and Folly. — Royal Exchange — First Irredeemable 
 Debt. — Tricks of the Brokers. — Jobbing in East India Stock. — False Re- 
 ports. — Importance of the English Funds. — Picture of tlie Alley. — Sys- 
 tematic Jobbing of Sir Henry Furnese, Medina, and Marlborough. — Thomas 
 Guy, a Dealer in the Alley. 
 
 The creation of a national debt has been attributed to the Dutch, but is 
 really due to the Venetians. The immediate treasury of the Doge was 
 exhausted ; money was necessary ; and the most eminent citizens of that 
 great republic were called upon to redeem the credit of their country. 
 A Chamber of Loans was established, the contributors were made cred- 
 itors, four per cent, was allowed as interest, and she, 
 
 " Who once held the gorgeous East in fee, 
 And was the safeguard of the "West," 
 
 resumed her credit, and increased her power. 
 
 So fruitful a source of wealth was not allowed to fall into desuetude. 
 The Florentine republic, experiencing a deficiency in her revenue, estab- 
 lished a mount, allowed five per cent, interest, and, says Sir William 
 Blackstone, these laid the foundation of our national debt. The Dutch 
 were not long following the example. When the great persecution oc- 
 curred, which forced the Spanish Jew — the aristocracy of the chosen 
 race — from the place of his nativity, he brought with him to Holland 
 the craft and the cunning of the people. He taught the Dutch to create 
 an artificial wealth ; and the people of that republic, by its aid, main- 
 tained an attitude of independence, which rendered them so long the 
 envy and the hatred of the proud states which surrounded their territory. 
 Their industry increased with the claims upon them. They cultivated 
 their country with renewed perseverance ; they brought the spices of the 
 rich and barbarous East to the shores of the cultivated and the civilized 
 West ; they opened new sources of profit ; their merchant-vessels cov- 
 ered the waters ; their navy was the boast of Europe ; their army was 
 the scourge of the great Louis in the height of his pride and power. 
 The markets of Holland evinced a full activity ; the towns of Holland 
 increased in importance ; and the capital of Holland became the centre 
 of European money transactions, partly in consequence of the great 
 bigotry which banished the Jew from Spain. 
 
 When, therefore, the chief of that small yet powerful republic was 
 called to sit upon an English throne, he brought with him many of those 
 whose brains had contrived and whose cunning had contributed to pro- 
 duce these great changes ; and from his reign, whatever evils may have 
 arisen from a reckless waste of money, there commenced that principle 
 which, for a century and a half, has operated on the fortunes of all 
 Europe, — which proclaimed that, under every form and phase of cir- 
 cumstance, in the darkest hour of gloom as in the proudest moment of 
 
 6 
 
Origin of Tontines. 
 
 grandeur, the inviolable faith of England should be preserved towards the 
 public creditor. Up to this period, the only national debt on which interest 
 was acknowledged was that sum which had been seized on in the Ex- 
 chequer ; and even these dividends were irregularly paid. Many debts 
 had been incurred by our earlier kings, but all the promises and pledges 
 which had been given for their redemption were broken directly the 
 money was gained ; and it remained, we repeat, for William, whatever 
 his errors may have been, to establish the principle, that faith to the public 
 creditor must be inviolate. 
 
 The reign of William was productive of all modes and methods of 
 borrowing. Short and long annuities, annuities for lives, tontines, and 
 lotteries, alike occupied his attention. The former are still in existence, 
 the two latter have fallen to decay. The lotteries have been expunged 
 from the statute-book, and their evils will be fully developed at a fitting 
 period ; while to the brain of a Neapolitan, and the city of Paris, Wil- 
 liam was indebted for the knowledge of the tontine. Lorenzo Tonti, in 
 the middle of the seventeenth century, with the hope of making the 
 people of France forget their discontents in the excitement of gambling, 
 suggested to Cardinal Mazarin the idea of annuities, with the benefit to 
 the survivors of thos^ incomes which fell by death. The idea was 
 approved by the Cardinal and allowed by the court. Parliament, how- 
 ever, refused to register the decree, and the scheme failed. Tonti again 
 endeavoured to establish a society on this plan, and to build by its means 
 a bridge over the Seine ; but the unfortunate inventor christened it Ton- 
 tine, and not a man in Paris would trust his money to a project with an Ital- 
 ian title. A complete enthusiast, he allowed Paris no rest on his favorite 
 theme, and proposed to raise money for the benefit of the clergy in the 
 same way. The Assembly reported on the scheme, and the report con- 
 tained all that could flatter the projector's vanity, but refused a permission 
 to act on it ; and again it was abandoned. The idea, however, which 
 could not be carried out for the people, which was refused for the benefit 
 of the city, and not allowed for the clergy, was claimed as a right for the 
 crown ; and in 1689, Louis XIV. created the first tontine to meet his 
 great expenses. From this period they became frequent ; and William 
 was too determined to humble the pride of his rival, not to avail himself 
 of this among other modes of raising funds.* 
 
 The moneyed interest — a title familiar to the reader of the present day 
 — was unknown until 1692. It was then arrogated by those who saw 
 the great advantage of entering into transactions in the funds for the aid 
 of government. The title claimed by them in pride was employed by 
 others in derision : and the purse-proud importance of men grown sudden- 
 ly rich was a common source of ridicule. 
 
 Wealth rapidly acquired has been invariably detrimental to the man- 
 ners and the morals of the nation, and in 1692 the rule was as absolute 
 
 * The tontine is simply a loan raised on life-annuities. In consideration of a cer- 
 tain amount paid by a certain number of persons, government grants to each a life- 
 annuity. As the annuitants die, their shares are divided among the survivors, until 
 the annuity granted to the whole becomes centred in the longest liver ; at his death 
 the transaction ceases. 
 
 7 
 
The Royal Exchange in 1695. 
 
 as now. The moneyed interest, intoxicated by the possession of wealth 
 which their wildest dreams had never imagined, and incensed by the 
 cold contempt with which the landed interest treated them, endeavoured 
 to rival the latter in that magnificence which was one characteristic of 
 the landed families. Their carriages were radiant with gold ; their per- 
 sons were radiant with gems ; they married the poorer branches of the 
 nobility ; they eagerly purchased the princely mansions of the old aris- 
 tocracy. The brush of Sir Godfrey Kneller, and the chisel of Caius 
 Gibber, were employed in perpetuating their features. Their wealth was 
 rarely grudged to humble the pride of a Howard or a Gavendish ; and the 
 money gained by the father was spent by the son in acquiring a distinc- 
 tion at the expense of decency. They were seized upon by the satirist 
 and the dramatist as a new object of ridicule ; and under various forms 
 they have become a stage property. The term which they had cho- 
 sen to distinguish them became a word of contempt ; and the moneyed 
 class was at once the envy and the laugh of the town. Nor was it until 
 that interest became a great and most important one, that the term assum- 
 ed its right meaning, or that the moneyed contended with the landed interest 
 on a more than equal footing. The former have always clung to the 
 house of Brunswick ; the latter have often used their exertions against it. 
 In time, however, the moneyed became a landed interest, and vied in taste 
 as well as magnificence with the proudest of England's old nobility. 
 Among these was Sir Robert Clayton, director of the Bank, whose ban- 
 queting-room was wainscoted with cedar, whose villa was the boast of 
 the Surrey hills, whose entertainments imitated those of kings, whose judi- 
 cious munificence made him the pride of that great city to the represen- 
 tation of which he was called by acclamation. But there were other and 
 less reputable directors of the great Bank; and a pamphlet, published 
 shortly afterwards, drew public attention to acts which either prove that 
 morality in one commercial age is immorality in the next, or that some 
 of the governors of the corporation were wofully deficient in the organ 
 of conscientiousness. 
 
 In the Royal Exchange, erected for less speculative and more mercan- 
 tile pursuits, were the early transactions of the moneyed interest in the 
 funds carried on. In 1695, its walls resounded with the din of new pro- 
 jects ; nor could a more striking scene be conceived than that presented 
 in the area of this building. The grave Fleming might be seen making 
 a bargain with the earnest Venetian. The representatives of firms from 
 every civilized nation — the Frenchman with his vivacious tones, the 
 Spaniard with his dignified bearing, the Italian with his melodious tongue 
 — might be seen in all the variety of national costume ; and the flowing 
 garb of the Turk, the fur-trimmed coat of the Fleming, the long robe of 
 the Venetian, the short cloak of the Englishman, were sufficiently striking 
 to attract the eye of the painter to a scene so varied. There, too, the 
 sober manner of the citizen formed a strong contrast to the courtier, who 
 came to refill his empty purse : and there also, as now, might be seen 
 the broken-down merchant, pale, haggard, and threadbare, haunting the 
 scene of his former glory, passing his now valueless time among those 
 who scarcely acknowledged his presence, and, as he had probably dined 
 with Duke Humphrey, supped with Sir Thomas Gresham. 
 
 8 
 
East India Company Stock. 
 
 " Trampling the Bourse's marble twice a day, 
 Though little coin thy purseless pockets line, 
 Yet with great company thou art taken up, 
 For often with Duke Humphrey dost thou dine. 
 And often with Sir Thomas Gresham sup." 
 
 A new impulse had been given to trade, and the nation was beginning 
 to feel the effect of the Revolution. William had already tried his power 
 in the creation of a national debt : jobbing in the English funds and East 
 India Stock succeeded ; and the Royal Exchange became — what the 
 Stock Exchange has been since 1700 — the rendezvous of those who, 
 having money, hoped to increase it, and of that yet more numerous and 
 pretending class, who, having none themselves, try to gain it from those 
 who have. 
 
 The charter granted by William to the Corporation of the Bank of 
 England is the first instance of a debt bequeathed to posterity. Annui- 
 ties had hitherto been the mode of raising supplies ; and the day, there- 
 fore, which witnessed the establishment of the Bank is worthy of notice, 
 as being also the day on which William laid the foundation of an irre- 
 deemable national debt. 
 
 It was soon found that the duties appropriated to the various payments 
 of interest and annuities were insufficient to meet the claims. In 1697, 
 the national debt amounted to twenty millions, and the revenue was de- 
 ficient five millions. The payment in consequence grew uncertain, and 
 the moneyed men of the day, watching the course of events, made large 
 sums out of the distresses of government. " The citizen," says an old 
 writer on the subject, " began to decline trade and turn usurer." 
 
 To prevent this, a law was passed against the stockbrokers and jobbers, 
 which limits the number of the former, enacts some severe regulations, 
 and makes some severe remarks upon the entire body. 
 
 At this period the broker had a walk upon the Royal Exchange devoted 
 to the funds of the East India and other great corporations ; and many 
 of the terms now in vogue among the initiated arose from their dealings 
 with the stock of the East India Company. Jobbing in the great char- 
 tered corporations was thoroughly understood. Reports and rumors were 
 as plentiful then as now. No sooner was it known that one of the fine 
 vessels of the India Company, laden with gold and jewels from the 
 East, was on its way, than every method was had recourse to. Men were 
 employed to whisper of hurricanes which had sunk the well-stored ship ; 
 of quicksands which had swallowed her up ; of war which had com- 
 menced when peace was unbroken ; or of peace being concluded when the 
 factories were in the utmost danger. Nor were the brains of the specula- 
 tors less capable than now. If at the present day a banker condescends 
 to raise a railway bubble 50 per cent., the broker of that day understood 
 his craft sufficiently to cause a variation in the price of East India Stock 
 of 263 per cent. ; and complaints became frequent that the Royal Ex- 
 change was perverted from its legitimate purpose, and that the jobbers 
 — the term was applied ignominiously — ought to be driven from a spot 
 polluted by their presence. Mines of gold, silver, and copper were so 
 temptingly promised, that the entire town pursued the deception. Tricka 
 
 9 
 
''Change Alley. 
 
 and stratagems were plentiful ; the wary made fortunes, and the unwary 
 were ruined. 
 
 In 1698, the dealers and jobbers in the funds and share market, annoy- 
 ed by the objections made to their remaining in the Royal Exchange, and 
 finding their numbers seriously increase, deemed it advisable to go to 
 'Change Alley, as a large and unoccupied space, where they might carry 
 on their extensive operations. 
 
 " The centre of jobbing is in the kingdom of 'Change Alley and its 
 adjacencies," said a pamphleteer a few years after. " The limits are ea- 
 sily surrounded in about a minute and a half. Stepping out of Jona- 
 than's into the Alley, you turn your face full south ; moving on a few 
 paces, and then turning due east, you advance to Garraway's ; from 
 thence, going out at the other door, you go on still east into Birchin 
 Lane ; and then, halting a little at the sword-blade bank, you immediate- 
 ly face to the north, enter Cornhill, visit two or three petty provinces 
 there on your way to the west ; and thus, having boxed your compass, 
 and sailed round the stock-jobbing globe, you turn into Jonathan's again." 
 
 The English funds were assuming a greatness they have ever since 
 maintained. The Hebrew capitalist, who came over with William, had 
 increased the importance of the jobbers by joining them. The English 
 merchant — even at this early period — found that money might be gain- 
 ed in the new operation ; and 'Change Alley, so well known in Parlia- 
 mentary debates and the correspondence of the time as " the Alley," 
 was for a century the centre of all dealings in the funds. Here assem- 
 bled the sharper and the saint ; here jostled one another the Jew and the 
 Gentile ; here met the courtier and the citizen ; here the calmness of the 
 gainer contrasted with the despair of the loser ; and here might be seen 
 the carriage of some minister, into which the head of his broker was 
 anxiously stretched to gain the intelligence which was to raise or depress 
 the market. In one corner might be witnessed the anxious, eager coun- 
 tenance of the occasional gambler, in strong contrast with the calm, cool 
 demeanor of the man whose trade it was to deceive. In another the He- 
 brew measured his craft with that of the Quaker, and scarcely came off 
 victorious in the contest ; while in one place, appropriated to him, stood 
 the founder of hospitals, impressing with eagerness upon his companion 
 the bargain he was about to make in seamen's tickets. 
 
 It was soon felt practically that the air of England is cold and its cli- 
 mate variable. The more respectable among the jobbers, therefore, 
 gathered beneath the walls of one of those coffee-houses which formed 
 so marked a feature of London life in the eighteenth century, until the 
 chance became a customary visit, and the coffee-house known as Jona- 
 than's became the regular rendezvous of all the dealers in stock, and 
 consequently the scene of transactions as extensive as any the world ever 
 witnessed. 
 
 In 1701, the character of those who met in 'Change Alley was not 
 very enviable. It was said, and said truly, that they undermined, impov- 
 erished, and destroyed all with whom they came in contact. " They can 
 ruin men silently," says a writer of the period, with great vehemence ; 
 " undermine and impoverish, fiddle them out of their money, by the 
 
 10 
 
Sir Henry Furnese, 
 
 strange, unheard-of engines of interest, discount, transfers, tallies, deben- 
 tures, shares, projects, and the devil and all of figures and hard names." 
 
 Every thing which could inflate the hopes of the schemer was brought 
 into operation by the brokers. If shares were dull, they jobbed in the 
 funds, or tried exchequer bills ; and if these failed, rather than remain 
 idle, they dealt in bank-notes at 40 per cent, discount. These new modes 
 of gambling seized upon the town with a violence which sober citizens 
 could scarcely understand. Their first impulse was to laugh at the sto- 
 ries currently circulated of fortunes lost and won ; but when they saw 
 men who were yesterday threadbare pass them to-day in their carriages, — 
 when they saw wealth, which it took their plodding industry years of pa- 
 tient labor to acquire, won by others in a few weeks, — unable to resist 
 the temptation, the greatest of the city merchants deserted their regular 
 vocations and speculated in the newly-produced stocks. " The poor 
 English nation," says a writer, " run a madding after new inventions, 
 whims, and projects ; and this unhappy ingredient my dear countrymen 
 have in their temper, — they are violent, and prosecute their projects 
 eagerly." 
 
 No sooner had the members of the jobbing community taken their 
 quarter in 'Change Alley, than the city of London was seized with 
 alarm, and tried to keep the brokers at the Royal Exchange. They 
 grew indignant at their deserting so time-honored a place, and bound 
 them in pains and penalties not to appear in 'Change Alley. Pocket, 
 however, triumphed over prerogative ; brokers resorted where bargains 
 were plentiful ; 'Change Alley grew famous throughout England ; but it 
 was not till nearly a century and a quarter after its first transaction, and 
 a quarter of a century after 'Change Alley ceased to exist as a sphere 
 for the stockjobbers, that the ancient and useless provision not to assem- 
 ble in 'Change Alley was expunged from the broker's bond. 
 
 Among those who employed their great fortunes in the manner alluded 
 to was Sir Henry Furnese, a Director of the Bank of England. Through- 
 out Holland, Flanders, France, and Germany, he maintained a complete 
 and perfect train of intelligence. The news of the many battles fought 
 at this period was received first by him, and the fall of Namur added to 
 his profits, owing to his early intelligence. On another occasion he was 
 presented by William with a diamond ring, as a reward for some' impor- 
 tant information, and as a testimony of this monarch's esteem. But the 
 temptation to deceive was too great, even for this gentleman. He fabri- 
 cated news ; he insinuated false intelligence ; he was the originator of 
 some of those plans which at a later period were managed with so much 
 effect by Rothschild. If Sir Henry wished to buy, his brokers were or- 
 dered to look gloomy and mysterious, hint at important news, and after a 
 time sell. His movements were closely watched ; the contagion would 
 spread ; the speculators grew alarmed ; prices be lowered 4 or 5 per 
 cent., — for in those days the loss of a battle might be the loss of a 
 crown, — and Sir Henry Furnese would reap the benefit by employing 
 different brokers to purchase as much as possible at the reduced price. 
 Large profits were thus made ; but a demoralizing spirit was spread 
 throughout the Stock Exchange. Bankrupts and beggars sought the 
 
 11 
 
Obnoxious Taxation. 
 
 same pleasure in which the millionnaire indulged, and often with similar 
 success. 
 
 The wealthy Hebrew, Medina, accompanied Marlborough in all his 
 campaigns ; administered to the avarice of the great captain by an annu- 
 ity of six thousand pounds per annum ; repaid himself by expresses con- 
 taining intelligence of those great battles which fire the English blood to 
 hear them named ; and Ramilies, Oudenarde, and Blenheim adminis- 
 tered as much to the purse of the Hebrew as they did to the glory of 
 England. 
 
 In the midst of these excitements arises a name which, to the dwellers 
 in London, is well known. Thomas Guy, the Bible contractor, was a fre- 
 quenter of 'Change Alley ; and here, duly and daily, might be seen that 
 figure, which the gratitude of his fellow-men has rendered familiar in the 
 statue raised to his memory. 
 
 CHAPTER III 
 
 Enormous Bribery hy William. — Increased Taxation. — Speech of Sir Charles 
 Sedley. — Wrongs of the Soldiers. — Defence of William. — Moral Disorgani- 
 zation of the Country. — First Exchequer-Bill Fraud. — First Foreign Loan. — 
 Romantic Fraud in 1715. — Political Fraud of ' Change Alley. — Interference 
 of the House of Peers. — First Hoax. 
 
 The Parliamentary records of William's reign are curious. The de- 
 mands which he made for money, the hatred to France which he encour- 
 aged, and the frequent supplies he received, are remarkable features in 
 his history. Every art was employed ; at one time a mild remonstrance, at 
 another a haughty menace, at a third the reproach that he had ventured his 
 life for the benefit of the country. The bribery during this reign was the 
 commencement of a system which has been very injurious to the credit 
 and character of England. The support of the members was purchased 
 with places, with contracts, with titles, with promises, with portions of the 
 loans, and with tickets in the lottery. The famous axiom of Sir Robert 
 Walpole was a practice and a principle with William ; he found that cus- 
 tom could not stale the infinite variety of its efiect, and that, so long as 
 bribes continued, so long would supplies be free. Exorbitant premiums 
 were given for money ; and so low was public credit, and so great public 
 corruption, that, of 5 millions granted to carry on the war, only 2\ mil- 
 lions reached the exchequer. Long annuities and short annuities, lottery- 
 tickets and irredeemable debts, made their frequent appearance ; and the 
 duties, which principally date from this period, were most pernicious. 
 The hearth-tax was nearly as obnoxious as the poll-tax. The custom and 
 excise duties were doubled. The hawker and the hackney-coach driver, 
 companies and corporations, land and labor, came under his supervision. 
 Births, burials, and bachelors were added to the list, and whether a wife 
 
 12 
 
Corruption of Parliament. 
 
 lost a husband, or whether a widow gained one, the effect was ahke. 
 Beer and ale, wine and vinegar, coal and culm, all contributed to the im- 
 poverished state ; and although some who looked back with regret occa- 
 sionally indulged their spleen, the general tone of the Parliament was sub- 
 missive. Still, there were times when the truth was spoken ; and truths 
 like the following were unpleasant : — 
 
 " We have provided," said Sir Charles Sedley, " for the army ; we 
 have provided for the navy ; and now we must provide for the list. Tru- 
 ly, Mr. Speaker, 't is a sad reflection that some men should wallow in 
 wealth and places, while others pay away in taxes the fourth part of 
 their revenue. The courtiers and great officers feel not the terms, while 
 the country gentleman is shot through and through. His Majesty sees 
 nothing but coaches and six, and great tables, and therefore cannot imag- 
 ine the want and misery of the rest of his subjects. He is encompassed 
 by a company of crafty old courtiers." 
 
 The corrupt transactions which tended so greatly to increase the na- 
 tional debt are very remarkable. The assembled Commons declared in a 
 solemn vote, " it is notorious that many millions are unaccounted for." 
 Mr. Hungerford was expelled from the lower house for accepting a bribe 
 of c£21 ; and the Duke of Leeds impeached for taking one of 5,500 
 guineas. The price of a speaker — Sir John Trevor — was .£1,005, 
 and the Secretary to the Treasury was sent to the Tower on suspicion of 
 similar practices. Money-receivers lodged great sums of public money 
 with the goldsmiths at the current interest. Others lent the exchequer its 
 own cash in other persons' names ; and out of 46 millions raised in 15 
 years, 25 millions were unaccounted for. The Commissioners of Hack- 
 ney-coaches were accessible, and peculation in the army was discovered 
 by a chance petition of the dwellers in a country town. By this it ap- 
 peared that the inhabitants of Royston in Hertfordshire had large claims 
 made upon them for money, by colonels, captains, and cornets, in addi- 
 tion to the food and lodging which was their due. A few independent 
 members took up the question ; the public supported them ; and at this 
 juncture a book was delivered at the lobby of the house, which asserted 
 that the public embezzlement was as enormous as it was infamous, and 
 that the writer was prepared to make discoveries which would astonish the 
 world. The offer was accepted ; a searching inquiry was made, and de- 
 falcations were discovered so great, that all wonder ceased at the increase 
 of the national debt, and at the decrease of the national glory. The 
 abuses in clothing the army were plain and palpable. The agents habit- 
 ually detained the money due to the soldiers, and used it for their own 
 advantage, or compelled them to pay so large a discount, that they were 
 in the utmost distress. 
 
 The subaltern officers were not better off. Colonel Hastings, after- 
 wards cashiered for the offence, made them buy their raiment of him. 
 If they hesitated, he threatened ; if they refused, he confined them. In 
 1693, an inquiry was made into the application of the secret-service 
 money, when great and deserved animadversion was passed upon those 
 through whom it circulated. The power possessed by government under 
 such abuses may be imagined. They were sure of the votes of those 
 2 13 
 
Defence of William the Third, 
 
 who had places and pensions, and they were sure also of the votes of 
 that large class of expectants which always haunts a profuse ministry ; 
 and thus " the courtiers," as the ministerial party was long designated, 
 could baffle any bills, quash all grievances, stifle any accounts, and raise 
 any amount of money. 
 
 These discoveries inflamed the people, and murmurs that corruption 
 had eaten into the nation became general. Court and camp, city and 
 senate, were alike denounced. The pamphleteers spoke in strong lan- 
 guage. " Posterity," said the author of one, termed The Price of the 
 Abdication, " will set an eternal brand of infamy upon those members, 
 who, to obtain either offices, profitable places, or quarterly stipends, have 
 combined to vote whatever hath been demanded." 
 
 It has been the fashion of a certain class to decry William because he 
 founded the national debt. But the war which he waged was almost a 
 war of necessity, and could not be supported without liberal supplies. 
 There was, however, with William a personal pride in the contest. He 
 had been taught, from his boyhood, hatred to France, and almost in boy- 
 hood had checked the universal dominion aimed at by Louis. With him, 
 therefore, opposition to France was a passion ; and he who, at the age of 
 twenty-three, bade defiance to the combined power of the two greatest 
 nations of the modern world, remembered, as soon as he reached the 
 English throne, that proud, though bitter moment, when, surrounded by 
 French force, his people determined to let loose the waters which their 
 skill had confined, and from the homes and hearths of their fathers bear 
 their goods, their fortunes, and their persons, and to erect in a new land 
 the flag they would not see dishonored in the old. When, therefore, 
 William of Orange became monarch of England, his first thought was 
 the humiliation of France. To this point he bent the vast en-ergies of 
 England and his own unconquerable will ; for this only was his crown 
 valuable, and for this purpose was the power of England strained to the 
 utmost tension. 
 
 The importance of France was then at its height. Louis sought to 
 sway the councils of Europe ; and whoever else might have succumbed, 
 the statesmen of England had been in his power, and a monarch of 
 England in his pay. He saw, therefore, with dislike which was not at- 
 tempted to be concealed, the throne mounted by one who was resolved, 
 not merely to maintain its ancient greatness, but to quell the power of its 
 ancient rival. Louis sheltered the abdicated king, and encouraged his 
 mock court and his mock majesty. This was sufl^icient proof of his feel- 
 ing ; nor were other indications wanting : and it is a complete fallacy to 
 suppose that the debt was unnecessarily incurred ; in it lay the power of 
 William and the safety of the land. 
 
 Had the new king employed the arbitrary mode of levying supplies of 
 the earlier monarchs ; had he made forced loans and never repaid them ; 
 had he seized upon public money, and wrung the purses of public men, 
 the country might as well have been governed by a James as a William, 
 and would in all probability have recalled the exile of the unfortunate 
 House of Stuart. The evils of William's reign were in the facts that his 
 power was not sufficiently established to borrow on equitable terms ; that 
 
 14 
 
Moral Disorganization, 
 
 the bribery, abuses, and corruption of men in high places increased with 
 their position; and, above all, that, instead of paying his debts by terminable 
 annuities, he made them interminable. Lord Bolingbroke declares, that 
 he could have raised funds without mortgaging the resources of the na- 
 tion in perpetuity, and that it was a political movement to strengthen the 
 power of the crown, and to secure the adherence of that large portion of 
 the people by whom the money had been lent. 
 
 The war was necessary, and the contraction of the debt equally so ; 
 for, although William engaged in the contest with something like person- 
 al pride, it was essentially a national war. A free people had driven 
 away the Stuarts ; a despotic king would have forced them back. If 
 ever, therefore, a contest directly interested both subject and sovereign, it 
 was that which created the national encumbrance ; and England was for- 
 tunate in the man she had chosen to champion her rights. The contest, 
 which dated from 1688 and ended in 1697, which cost us 20 milUons in 
 loe.ns and 16 millions in taxes, was only closed because both nations were 
 fatigued. It produced no great results, no grand achievements, no last- 
 ing peace. It did but prove that the strength which had departed from 
 England during the two previous reigns had slumbered, but was not with- 
 ered. The earlier history was, as many of England's great wars have 
 been, comparatively unsuccessful. The parties into which the nation was 
 divided prevented the unanimity necessary to great deeds. They agreed 
 only in robbing the people. Public principle was with them a public jest. 
 Incapacity and corruption pervaded all branches. By corruption a Par- 
 liamentary majority was procured, and through incapacity the commerce 
 of the country was decaying. Talent was only employed in devising its 
 own benefit ; patriotism was perverted ; national virtue was forgotten ; 
 and the allies found that on sea and land the enemy had the advantage. 
 The navy was daring, but divided ; the admirals were accused of disaf- 
 fection. While the foe was intercepting our merchandise in the Channel, 
 the vessels of England were building in the docks. On the sea, our own 
 peculiar boast, we were dishonored ; our flag was insulted ; and English 
 admirals retreated before French fleets. Ships of war were burnt ; mer- 
 chant-vessels were sunk ; and a million of merchandise was destroyed. 
 
 But the clamor of the people reached her councils. It was said our 
 plans were betrayed to the enemy ; treachery was justifiably suspected ; 
 and all who were familiar with the period will join the writer in thinking 
 it not only possible, but probable. 
 
 During these trials the spirit of William remained unchanged ; and, 
 rejecting all overtures from France, he exhibited to the world the soldier- 
 ship for which he was remarkable. At Namur he fought in the trenches, 
 ate his dinner with the soldiei's, animated them with his presence, shared 
 their dangers, and won their hearts. Namur capitulated, and the scene 
 changed. The French power was shaken in Catalonia ; its coasts were 
 assailed ; its people were suffering, and Louis, whose great general was 
 dead, was sufficiently humbled to renew his proposals for peace, which, 
 after nine years' war, costing Europe 480 millions of money and 800,000 
 men, was gained by the pacification of Ryswick. 
 
 A deep thinker of the present day has said of the war anterior to 1688, 
 
 15 
 
First Exchequer- Bills, 
 
 — and the argument is supported by that school of which Cobbett was 
 chief, — " The cost happily fell upon those who lived about the time, — it 
 was not transmitted to posterity, according to the clever contrivance devised 
 in a more enlightened and civilized age. They spent their own money, 
 and not that of their grandchildren. They did as they liked with their 
 own labor and its results ; they did not mortgage the labor of succeeding 
 generations." 
 
 Men do not argue thus, ordinarily. The case is very similar to that of 
 a land-proprietor mortgaging his estate to defend it from a suit which en- 
 dangers it. His posterity may regret, but they cannot complain ; they 
 know it is better to have the estate partially mortgaged than not to have 
 an estate at all. It seems, to the writer, similar with the national debts of 
 the reign of William. He was bound to defend the people who had 
 chosen him ; war was then, as now, a popular pastime ; and William is 
 no more to be blamed that he was not in advance of the time, than the 
 nobles of the present day are to blame because they bring up their 
 younger sons to be shot at for glory and a few shillings a day, instead of 
 seeing, as their successors will probably see, the anti-progressive and anti- 
 Christian nature of the principle thus supported. 
 
 The one great evil was, that the difficulty of getting money tempted 
 William to borrow on irredeemable annuities. Had he borrowed only on 
 annuities terminable in a century, he would have attained his money at a 
 little extra cost, but the pressure on the people would have decreased 
 year by year, the credit of the government have increased, and the dis- 
 content of the nation been less. 
 
 If, however, any blame be attached to the government of William, 
 how much greater must be that which is attached to succeeding minis- 
 tries. They knew, for they felt, the evil of perpetual debts. Sir Robert 
 Walpole said, when the nation owed 100 millions it would be ruined ; but 
 he, and those who preceded with those who followed him, persisted in 
 neglecting the only principle of action which could save the country. It 
 is the misfortune of governments to abide by that which is only venera- 
 ble from its antiquity, and persist in following precedents when they 
 should act upon principle. They forget — and the fact cannot be urged 
 too strongly — that government is a progressive science, and that im- 
 provement is a law of nations as well as of nature. 
 
 In 1696, while the gold was being recoined, exchequer-bills, principally 
 for £ 5 and £ 10, were introduced. Being issued on the security of gov- 
 ernment, they supplied the place of coin, and were found a great conven- 
 ience, acting as state counters, which passed as money, because the peo- 
 ple knew that the government would receive them at full value. The 
 Lords of the Treasury were authorized to contract with moneyed men to 
 supply cash ; and though these bills were at one time at a discount, their 
 credit rose daily, until they reached 1 per cent, premium. They at first 
 bore no interest ; but when they were reissued, £ 7 12s. per cent, per 
 annum was paid, and they became a favorite investment. The genius of 
 Mr. Halifax invented them ; and it has required no genius on the part of 
 succeeding ministers to issue a supply whenever the wants of the govern- 
 ment have demanded them. When it is not convenient to pay these se- 
 
 16 
 
Fraud in Exchequer -Bills. 
 
 curities off, and they have accumulated to an amount which attracts the 
 notice of the Opposition, or is calculated to depress the price, the consent 
 of Parliament is procured, and they are liquidated by being added to„ the 
 fixed debt of the country. They now form a regular supply to the min- 
 istry, and are part of the floating or unfunded debt of England, bearing 
 a premium or discount in proportion to the credit of the nation. 
 
 The first fraud in exchequer-bills occurred within a year of their crea- 
 tion ; when receivers-general, members of Parliament, and deputy ac- 
 countants formed a confederacy fraudulently to indorse some of these se- 
 curities, to which their position gave them access. The robbery was dis- 
 covered ; and a Mr. Reginald Marryot, one of the accomplices, saved 
 himself by discovering the plot. The House of Commons expelled from 
 its members the men whose dishonor was increased by their position ; 
 and, as the estate of Mr. Charles Duncombe, one of the accused, was 
 worth ^400,000, they fined him ^200,000, being the amount wrongful- 
 ly circulated. In the House of Lords it fell to the Duke of Leeds to give 
 the casting vote. Mr. Buncombe's estate was saved, but the Duke's cred- 
 it suffered, for he gave his decision in favor of the defaulter ; and it was 
 said that Mr. Duncombe paid no inconsiderable sum for the benefit he re- 
 ceived at the hands of his Grace. The charge was never brought home ; 
 but the Duke's after-conduct gave a sufficient coloring to the suspicion. 
 
 The first foreign loan Wcis negotiated in 'Change Alley in 1706. The 
 victories of the Duke of Marlborough had raised the pride of the English 
 people ; and even 'Change Alley possessed a somewhat similar feeling. 
 When, therefore, his Grace proposed a loan of £ 500,000 to the Emperor, 
 for eight years, at 8 per cent., on the security of the Silesian revenue, it 
 was received with acclamation, and was filled in a few days by the first 
 commercial names of England. 
 
 During that period, which, now a romantic, was then a terrible reality, 
 when it was known, in 1715, that the best families in the North of Eng- 
 land had assembled in arms to change the dynasty, no pains were spared 
 by the jobbers to procure correct and to disseminate false intelligence : 
 and it was with mingled feelings of alarm and pity that the inhabitants of 
 a small town between Perth and the seaport of Montrose — where James 
 embarked after his unhappy expedition — saw a carriage and six, travel- 
 ling with all the rapidity which the road would allow. It was known that 
 the rebel army was dispersed ; that its chiefs were scattered ; and that 
 the unfortunate Stuart was wandering through the country, with life and 
 liberty alike endangered. It excited, therefore, no surprise in the village 
 when the carriage was surrounded, and the apparent prize conveyed with 
 great ostentation towards London. Letters soon reached the city that the 
 fugitive Stuart was taken, and the letters were confirmed by the story re- 
 lated, which quickly reached London. The funds of course rose, and 
 the inventors of the trick laughed in their sleeves as they divided the 
 profit. By this time the jobbers must have reached a somewhat high po- 
 sition, as, the same year, one Quare, a Quaker and a celebrated watch- 
 maker in 'Change Alley, having successfully speculated in the shares and 
 funds with which it abounded, was of sufficient importance to invite to 
 the marriage-feast of his daughter, Sarah Jennings, Duchess of Marlbor- 
 2* 17 
 
Political Hoax on ''Change. 
 
 ough, and the Princess of Wales, who, with three hundred guests of dis- 
 tinction, graced the wedding entertainment. 
 
 But 'Change Alley was notorious for other dealings than those in the 
 funds. When that desperate struggle for power occurred between the 
 old and new East India Company ; when their varying claims were on 
 every man's tongue, and their bribes in every man's hand ; the election 
 of a member of Parliament was an affair of moment. The partisans of 
 each Company sided with their friends ; bought boroughs ; shed their 
 money lavishly and largely ; used every art that self-interest could de- 
 vise ; and so extensive was the interference of the brokers, that the only 
 question heard in 'Change Alley was, " Is he for the New or the Old 
 Company ? " It was the touchstone of a principle more sacred than the 
 Hanoverian succession, and more important than England and Hanover 
 united. It was probably found profitable ; and it was said in 1720, that 
 elections for members of Parliament came to market in 'Change Alley as 
 currently as lottery-tickets. 
 
 The first political hoax on record occurred in the reign of Anne. 
 Down the Queen's Road, riding at a furious rate, ordering turnpikes to be 
 thrown open, and loudly proclaiming the sudden death of the queen, 
 rode a well-dressed man, sparing neither spur nor steed. From west to 
 east, and from north to south, the news spread. Like wildfire it passed 
 through the desolate fields where palaces now abound, till it reached the 
 city. The train-bands desisted from their exercise, furled their colors, 
 and returned home with their arms reversed. The funds fell with a sud- 
 denness which marked the importance of the intelligence ; and it was re- 
 marked that, while the Christian jobbers stood aloof, almost paralyzed 
 with the information, Manasseh Lopez and the Jew interest bought eager- 
 ly at the reduced price. There is no positive information to fix the de- 
 ception upon any one in particular, but suspicion pointed at those who 
 gained by the fraud so publicly perpetrated. 
 
 The invasion of 1715, as it caused extra expenses, demanded extra 
 grants. The House of Commons voted them ; but the House of Peers, 
 a portion of which possessed strong Jacobite feeling, attempted to modify 
 without mending it. Though they did not reject the bill, the lower house 
 resented the mere interference. At an early hour on the morning of the 
 13th February, Lord Harcourt went to the House of Peers, and made an 
 anxious search for precedents of amendments to money bills. The 
 search proved unsuccessful, as, since the Restoration, the Commons had 
 defended their right of not allowing the Lords to make any alterations in 
 these acts. A committee was appointed, and the Peers fought bravely 
 for their claim ; but though the court was willing to support them, money 
 was so immediately necessary, that, at the request of the government, they 
 yielded under protest. 
 
 18 
 
Charitable Corporation Fraud. 
 
 CHAPTER IV. . 
 
 Charitable Corporation Fraud. — Its Discovery. — Appalling Effects and Rem- 
 edy. — Marlborough's Victories, their History, and the Loans they brought. — 
 Augmented Importance of the Stock Excliange. — Dislike to the Members. — 
 Increased Loans. — Difficulties in procuring them. — Statement of Sir Robert 
 Walpole. — Gifts of Contractors to Clothiers. — First Payment of Dividends 
 by the Bank. — South-Sea Anecdotes. 
 
 In the early part of the eighteenth century, a prospectus was issued to t 
 the commercial world and the members of 'Change Alley, in which the [ 
 wants of the needy and the infamy of the pawnbrokers, the purest | 
 philanthropy and a positive five per cent., were skilfully blended. It 
 was shown that then, as now, the poor were compelled to pay a greater 
 interest than the rich ; that thirty per cent, was constantly given by the 
 former on a security which the usurer took care should be ample ; and it 
 was proposed that the wealthy capitalist should advance, for the benefit 
 of the needy, a sufficient sum to enable the company to lend money at 
 five or six per cent. The proposal proved eminently successful. A 
 capital of £ 30,000 was immediately subscribed, a charter obtained, and 
 the " Charitable Corporation," the object of whose care was the neces- 
 sitous and industrious poor, appeared to flourish. For some years the 
 concern answered, the poor received the assistance which they required, 
 and the company was conducted with integrity. In 1719, however, their 
 number was enlarged ; their capital increased to £ 600,000 ; an aug- 
 mentation of business was looked for ; cash credits were granted to gen- 
 tlemen of supposed substance ; and the importance of the corporation 
 was unhappily recognized by that numerous class of persons compelled 
 to pay in maturity for the excesses of youth. They acted also as bank- 
 ers, and received deposits from persons of all classes and conditions. 
 Its direction boasted men of rank, its proprietary men of substance, and 
 its executive men of more capacity than character. The cashier of the 
 company was a member of the senate ; Sir Robert Sutton, a director, 
 was one of his Majesty's Privy Council ; and Sir Archibald Grant, who 
 took a prominent part in the affairs of the corporation, was also a mem- 
 ber of the lower house. Every confidence was reposed in such a body, 
 and it was regarded as a rich and prosperous society. 
 
 Under these circumstances, the surprise of the public may be con- 
 ceived when it was first whispered, and then openly announced, that the 
 cashier, with one of the chief officers, had disappeared in company. 
 The alarm spread to the proprietors ; the public participated ; the poor 
 assembled in crowds ; the rich clamored for information ; a meeting was 
 called to inquire into the case, when a most pernicious, but scarcely 
 comprehensible, piece of villany was unravelled, and a most disgrace- 
 ful tissue of fraud discovered. £ 30,000 alone remained out of half a 
 million. The books were falsified ; money was lent to the directors on 
 
 19 
 
Public Distress. 
 
 fictitious pledges ; men of rank and reputation were implicated ; suspicion 
 and censure followed persons of importance. Some managers were 
 found to have connived at scenes so disgraceful, that their character was 
 lost for ever. Many had concerted active plans of fraud, which ended 
 alike in their own ruin and the ruin of the corporation ; while others 
 were guilty of personally embezzling the funds of the company. Peti- 
 tion after petition was presented to the Commons. A bill was brought in 
 to prevent the defaulters from leaving the kingdom ; and the scorn of all 
 England pointed at the men who, under the guise of charity, had en- 
 riched themselves. The interest which was taken in the discovery by 
 the entire country attracted the attention of the Jacobites ; and, as one of 
 the party had fled to Rome with the spoils, the Pretender endeavoured to 
 enlist the sympathy of the nation, through one Signer Belloni, who wrote 
 to the committee, stating that the refugee had been seized and placed in 
 the castle of St. Angelo. The Whig party, ever jealous of the Pretender, 
 voted that the letter should be burned by the hangman at the Royal Ex- 
 change. 
 
 The distress occasioned by this bankruptcy was appalling, pervading 
 nearly every class of society. Large sums had been borrowed at high 
 interest. The small capitalist was entirely ruined ; and there was scarce- 
 ly a class in English life which had not its representative and its sufferer. 
 The poor were unable to get their goods ; the rich were robbed of their 
 jewels ; families accustomed to affluence were starving ; delicate women, 
 hitherto irreproachable, were compelled to exchange their persons for 
 bread. Similar evils have been known to exist during sieges ; and, in 
 the public streets of Lisbon, women of unblemished virtue offered them- 
 selves for sale during its occupation by the French ; but the writer be- 
 lieves there is no other parallel in commercial history. 
 
 All that the wisdom of the senate could devise was attempted to miti- 
 gate the evil. The revenge of the losers was appeased by several mem- 
 bei-s being expelled the house ; their fear of loss was reduced by the 
 confiscation oi the estates of the ofiending parties ; a lottery was granted 
 for the advantage of the sufierers ; and though a dividend of nearly ten 
 shillings was eventually paid, the fraud of the Charitable Corporation was 
 remembered long after the evils caused by it had ceased to exist. 
 
 The next great increase of debt was through the War of Succession in 
 Spain, to the crown of which several princes laid claim. According to 
 the ordinary rule of inheritance, the Dauphin, by virtue of the marriage 
 of Louis XIV. with the eldest sister of the king, should have succeeded ; 
 but as all right to the throne had been solemnly renounced on the mar- 
 riage, it was supposed that the claim was vacated ; and the principal 
 powers of Europe, knowing the necessity that so great an inheritance 
 should not descend to any state possessed of territorial importance, formed 
 the celebrated partition treaty. 
 
 By this, France, England, and Holland agreed that Spain, the Indies, 
 and the Netherlands should descend to the Archduke Charles, and, in 
 return, that France should be possessed of the rich province of Lorraine. 
 There is no doubt that governments regard treaties in proportion to the 
 physical rather than the moral necessity to abide by them ; and France, 
 
 20 
 
Effect of Marlborough'' s Victories. 
 
 under Louis Quatorze, was no exception to the rule. A succession of 
 cabals in Spain gave the latter the influence he required. His ambassa- 
 dor won the court and city ; the Archbishop of Toledo was of his party, 
 and gained the Spanish king, who, sick body and soul, priest-ridden, a 
 prey to mental and physical agony, was, after a succession of intrigues, 
 induced to fix his name to that will which annexed the splendid possession 
 of the empire of Spain to the grandeur of France. 
 
 At once Louis violated the partition treaty, accepted the noble legacy 
 for his grandson, and sent the whole court of France to accompany him 
 to the Pyrenees, that frontier which he said in his pride had ceased to 
 exist. When the news reached William, he was at the Hague, but in- 
 stantly returned to London. Vigorous preparations were made ; but he 
 did not live to see the declaration of the war, which began in 1782, 
 agitated Europe for thirteen years, and added so much to the great debt 
 of which this volume treats. 
 
 England, Holland, and the Empire were opposed to France, Spain, and 
 Bavaria ; and the war thus commenced was a memorable contest. Marl- 
 borough and Peterborough, than whom England boasts none greater, made 
 her name a word of dread for many years. The knight-errantry of Peter- 
 borough conceived schemes which only his ardent and fiery imagination 
 could achieve. He took towns by storm, under circumstances little less 
 than marvellous ; he reduced the largest and strongest cities of Europe 
 with a handful of soldiers ; he made forced marches, shared the fatigues 
 of his men, and took entire reinforcements prisoners. With 3,000 troops 
 he harassed a regular army, cut ofi" communications, and raised sieges ; 
 he forced towns with horse-soldiers, and chivalrously mortgaged his es- 
 tates to pay the expenses incurred in the cause of his country. 
 
 The victories of John Churchill, Duke of Marlborough, were more 
 important to the nation than those of the adventurous Peterborough ; and 
 if his glory was tarnished by the love of gold, yet the name of Marl- 
 borough as a captain is unsullied. The battle of Blenheim was his first 
 great achievement in the War of Succession, and it made the people con- 
 sent to pay the additional taxes imposed upon them. Innumerable tro- 
 phies, — hundreds of flags and standards, tents, cannon and mortars, 
 casks and barrels filled with the precious metals, — evinced the glory 
 of the contest, and added to the pride of the nation. The thanks 
 of the House were voted to the Duke ; medals were struck in his honor ; 
 Addison celebrated him in poetry ; but dearer far to Marlborough than 
 medal, poetry, or thanks, w£is the rich manor and the noble mansion 
 of Woodstock, voted to him by the nation. Scarcely had the people 
 recovered from the joy occasioned by the battle of Blenheim, and from 
 the increased taxation which ensued, than another battle — that of 
 Ramilies — seized them with delight. Forgetful of the consequences, 
 men talked of the old days of England, — of the ancient victories of her 
 armies, — of the time when the great Cromwell made the English name 
 terrible, — and, in their excitement, they magnified the grandeur, and 
 diminished the cost. The pride of Louis was indeed humbled. He 
 made proposals for a congress ; he tampered with the Dutch ; he be- 
 sought the interposition of the Head of the Church ; he offered to cede 
 
 21 
 
Treaty of Utrecht. 
 
 Spain, Milan, Naples, or Sicily ; and felt bitterly the consequences of 
 having provoked the vengeance of the island he hated. Ambition had, 
 however, seized upon the nation ; conquest only was thought of ; and, 
 remembering the glory of the past, the English people deemed them- 
 selves entitled to some privilege for the blood which was shed. They 
 forgot that a new campaign would bring new costs ; and they forgot, 
 what their successors yet feel, that every fresh victory brought a fresh 
 loan. Oudenarde, the third of that splendid series of victories which has 
 made the name of Marlborough renowned in the land, was followed by 
 Malplaquet, the glory of which was superior to its results, and the blood 
 of which was shed to maintain the court influence of the Duke. 
 
 But a change of ministry brought a change of measures ; and a Tory 
 government refused to maintain a Whig policy. The ministers tri- 
 umphed, and the treaty of Utrecht was concluded. Then arose that 
 war of words which enlisted the pens of Steele, of Addison, of Swift, 
 and of a host of other and lesser spirits. The Tories said the Whigs had 
 sold us to the Dutch, to fill the pockets of Marlborough. The Whigs 
 said the Tories had sold us to the French, to facilitate 'the return of the 
 Pretender. The waste of life, the suspension of trade, the accumulation 
 of debt, without an adequate return, were so terribly evident, that the 
 Commons remonstrated, and told her Majesty that .£35,302,107 of the 
 supplies were not accounted for. 
 
 It must be evident that every fresh war, every new loan, and every 
 public peculation, increased the importance of the members of the Stock 
 Exchange ; and when men saw the broker and jobber assuming a posi- 
 tion the public was unwilling to grant, they mistook the effect for the 
 cause ; and a hundred voices were raised, and a hundred essays written, 
 to prove that the brokers of 'Change Alley were the bane of the nation. 
 A member could hardly make a financial speech, a pamphleteer write a 
 political pamphlet, or a dramatist employ his pen for the public, without 
 dragging in the jobber as an illustration and a cause of the misery of 
 England. Those who had lost their money in the many speculations 
 with which the 'Change abounded, deemed also thgy had earned a right 
 to decry it. The following is a specimen of their opinion : — " It is a 
 complete system of knavery, founded in fraud, born of deceit, and nour- 
 ished by trick, cheat, wheedle, forgeries, falsehoods, and all sorts of 
 delusions ; coining false news, whispering imaginary terrors, and preying 
 upon those they have elevated or depressed." Archibald Hutcheson, 
 whose life was afterwards endangered from the determined manner in 
 which he opposed the South-Sea bubble, says that the jobbers vied with 
 the first nobility in the kingdom. Pope wrote, — 
 
 " Statesmen and patriots ply alike the Stocks, 
 Peeress and butler share alike the box ; 
 And judges job, and bishops bite the town ; 
 And mighty dukes pack cards for. half-a-crown." 
 
 At any rate, it is certain that, if the national glory was aggrandized, the 
 national debt increased in proportion. From 16 millions to 54 was fear- 
 fully felt, — thirty-seven millions and a half being raised by loan, besides 
 thirty millions in taxes, during the war of the Spanish succession. 
 
 22 
 
Projector of the South- Sea Bubble. 
 
 In 1716, great difficulty was experienced in procuring a loan of 
 £ 600,000. The interest offered was four per cent. ; and while the 
 propriety of the loan was being debated on the second evening, Mr. 
 Lechmere entered the House hastily, and told them that only £ 45,000 
 had been subscribed. Sir Robert Walpole instantly rose, and said, " I 
 know that the members of the Stock Exchange have combined not to 
 advance money on the loan. Every one is aware how the administration 
 of this country has been distressed by stock-jobbers." The interest of 
 four per cent, appeared so low to men accustomed to the enormous pre- 
 miums of a few years previous, that they treated the proposed terms with 
 contempt, and enlisted the sympathy of the public by reporting that it 
 was the first step towards the reduction of the interest on the national 
 debt. When the same minister proposed a loan of £ 1,700,000, to 
 supply a deficiency, the opposition was so great, that, had not Sir Robert 
 appealed to an empty exchequer, and declared that the debt had been 
 incurred by a previous government, he would have been refused. The 
 feelings of the House were greatly incensed by the discovery that the 
 money was jobbed away with unequalled recklessness ; and public- 
 spirited men were not wanting to resist, in the name of the country, 
 such shameless expenditure. They protested, because — and the protest 
 drawn in 1729 would do for 1849 — " the national debt ought not to be 
 increased when the taxes are heavily felt in all parts of the country ; 
 when our foreign trade is encumbered and diminished ; when our manu- 
 factures decay ; when our poor daily multiply ; and when national ca- 
 lamities surround us." The report of the commissioners appointed to 
 inquire into public accounts sanctioned the opposition which such men as 
 Sir John Barnard gave to unjust demands. They proved that colonels 
 received large sums from clothing contractors, as premiums for their 
 favor, and that £ 1,400 had been given for a single contract. " The 
 practice," said the report, " is so notorious and universal, that it wants 
 no representation." Some barefaced practices were related in the same 
 document ; nor can there be any wonder that, with such gross misman- 
 agement, it was said, — " The army was in the field, no money in the 
 treasury, — none of the remitters would contract again. The Bank 
 refused to lend £ 100,000 on good security. The navy was 11 millions 
 in debt, and the yearly income greatly deficient." 
 
 In 1717 the Bank first undertook the payment of dividends to the 
 national creditors, previous to which they were paid quarterly ; when, 
 however, they were undertaken by the Bank, this plan was found incon- 
 venient, and since that period they have been paid half-yearly. 
 
 Sir John Blunt was the projector of the South-Sea bubble, which, in^' 
 1720, produced such extraordinary effects in England. As the scheme 
 did not at first prove successful, rumors were spread that Gibraltar and 
 Port Mahon would be exchanged for Peru. The stock soon rose to 1,000 
 per cent., and the excitement lasted till September, by which time it had 
 sunk to 150. Several eminent goldsmiths and bankers were obliged to 
 abscond ; and every family in the kingdom felt the shock. 
 
 In other works the anecdotes of this memorable period have been pre- 
 sented in proportion to their effects upon commerce ; in the present, those 
 
 23 
 
Fortunes lost or won. 
 
 only will be given which either affect the Stock Exchange or possess a 
 general interest. 
 
 On May 15th, 1719, the king went abroad, and many who went with 
 him sold all their funds. The Bank of England was accused of assisting 
 the bubble by lending money, for the first time, on the security of its 
 stock ; " and this," said Mr. Aislabie, " furnished an additional supply of 
 money to gamesters in the Alley." The stories of the period are very 
 widely spread, and prove how all ranks were affected. The Marquis of 
 Chandos embarked £ 300,000 in it, and the Duke of Newcastle advised 
 him to sell when he could make the tolerable profit of cent, per cent. The 
 Marquis was greedy, hoped to make it half a million, and the advice was 
 declined. The panic came, and the entire investment went in the shock. 
 
 Samuel Chandler, the eminent nonconformist divine, risked his whole 
 fortune in the bubble, lost it, and was obliged to serve in a bookseller's 
 shop for two or three years, while he continued to discharge his min- 
 isterial duty. 
 
 The elder Scraggs gave Gay £ 1,000 stock, and, as the poet had been 
 a previous purchaser, his gain at one time amounted to .£20,000. He 
 consulted Dr. Arbuthnot, who strongly advised him to sell out. The 
 bard doubted, hesitated, and lost all. The doctor who gave such shrewd 
 advice was too irresolute to act on his own opinion, and lost £ 2,000 ; but, 
 with an enviable philosophy, comforted himself by saying it would be 
 only 2,000 more pairs of stairs to ascend. 
 
 Thomas Hudson, a native of Leeds, came to London, and filled the 
 situation of government clerk. Having been left a large fortune, he re- 
 tired to the country, where he lived until, tempted to adventure in the 
 scheme, he embarked the whole of his fortune in it. After his loss he 
 came to London, became insane, and Tom of Ten Thousand, as he 
 called himself, wandered through the public streets, a piteous and pitiable 
 object of charity. 
 
 One tradesman, who had invested his entire resources in the stock, 
 came to town to dispose of it when it reached 1,000. On his arrival it 
 had fallen to 900, and as he had decided to sell at 1,000, he determined to 
 wait. The stock continued to decline, the tradesman continued to hold, 
 and became, as he deserved, a ruined man. 
 
 Others were more fortunate. The fine mansion of Sir Gregory Page, 
 at Blackheath, was made out of the profit made by his guardians ; and 
 two maiden sisters, who sold the stock at 970, reinvested their money in 
 navy-bills, at a discount of 25 per cent., which in a very short time were 
 paid off at par. 
 
 The wags of the day were not idle. A pretended office was opened 
 in 'Change Alley to receive subscriptions for raising one million. The 
 people flocked in, paid five shillings for every thousand they subscribed, 
 fully believing they would make their fortunes. After a large sum had 
 been subscribed, an advertisement was published, that the people might 
 have their money without any deduction, as it was only a trial to see how 
 many fools might be caught in one day. 
 
 Similar anecdotes to these are scattered over the private and the pub- 
 lic histories of the period ; but they have been rendered too familiar by 
 recent works to narrate them in the present volume. 
 
 24 
 
Thomas Guy. 
 
 CHAPTER V. 
 
 Life of Thomas Guy. — Imposition in Sailors^ Tickets. — Foreign Loan at- 
 tempted. — Sir John Barnard. — Expresses of the Jobbers. — Foreign Com- 
 missions. — Origin of Time- Bar gains. — Attempt to stop them.. — Its Inade- 
 quacy. — Proposal to reduce the Interest on the National Debt. — Opposition 
 of Sir Robert Walpole. — New Mode of raising Loans. — Comparative Interest 
 in Land and Funds. — Punishment of Manasseh Lopez. — The first Reduc- 
 tion of Interest. — Life of Sir John Barnard. 
 
 In 1724 died the founder of Guy's Hospital, and a sketch of this re- 
 markable man's career is a curious picture of the period. The son of a 
 lighterman and member of the senate, — one year the penurious diner 
 on a shop-counter, with a newspaper for a table-cloth, and the next the 
 founder of the finest hospital in England, — at one time a usurious 
 speculator, and at another the dispenser of princely charities, — the 
 wearer of patched garments, but the largest dealer in the Alley, — be- 
 ginning life with hundreds, and ending it with hundreds of thousands, — 
 Thomas Guy was one of the many remarkable men who, tempted from 
 their legitimate pursuit, entered into competition with the jobbers of the 
 Stock Exchange, and one of the few who devoted their profits to the 
 benefit of a future generation. 
 
 His principal dealings were in those tickets with which, from the time 
 of the second Charles, the seamen had been remunerated. After years 
 of great endurance and of greater labor, the defenders of the land were 
 paid with inconvertible paper, and the seamen — too often improvident 
 — were compelled to part with their wages at any discount which the 
 conscience of the usurer would offer. Men who had gone the round of 
 the world, like Drake, or had fought hand to hand with Tromp, were 
 unable to compete with the keen agent of the usurer, v/ho, decoying 
 them into the low haunts of Rotherhithe, purchased their tickets at the 
 lowest possible price ; and skilled seamen, the glory of England's navy, 
 were thus robbed, and ruined, and compelled to transfer their services to 
 foreign states. 
 
 In these tickets did Thomas Guy deal; and on the wrongs of these 
 men was the vast superstructure of his fortune reared. But jobbing in 
 them was as frequent in the high places of England as in 'Change Alley. 
 The seaman was poor and uninfluential, and the orders which were re- 
 fused payment to him were paid to the wealthy jobber, who parted with 
 some of his plunder as a premium to the treasury to disgorge the re- 
 mainder. By these means, and by fortunate speculations during the 
 South-Sea bubble, Mr. Guy realized a fortune of £ 500,000. 
 
 It must be borne in mind, that, a century and a quarter ago, half a 
 million was almost a fabulous fortune. It was only to be acquired by 
 speculation in the funds, and by ventures which merely commercial deal- 
 ings failed to produce. In the literature of the past century, a "plum" 
 3 25 
 
SeamerCs Lottery Tickets. 
 
 is mentioned as the great 'prize of a lifetime, and as the extent of mer- 
 cantile ambition. The enormous sums lately realized were then almost 
 unknown, or arose from some chivalrous adventure, such as marked the 
 lives of a Robert Clive or a Warren Hastings ; and it was left for the 
 present century to witness the achievement of fortunes which in the past 
 would have been beyond credence. 
 
 In attaining so great a result, Mr. Guy was doubtless assisted by his 
 penurious habits ; but he did not possess a penurious mind. The en- 
 dower of a princely charity, the founder of alms-houses, the enricher of 
 Christ's Hospital, the support of his relations, and the friend of the poor, 
 must be regarded as one of those contradictory characters which, at all 
 periods and in all portions of the world, have marked the human race. 
 His dealings in the Stock Exchange were continued to a late period of 
 his existence. In 1720, he speculated largely in the South-Sea Stock ; 
 and in 1724 he died, at the age of eighty-one, leaving by will £ 240,000 
 to the hospital which bears his name. His body lay in state at Mercer's 
 Chapel, was carried with great funeral pomp to St. Thomas's Hospital, 
 and on February 13th, 1734, just ten years after his death, a statue was 
 erected to his memory in the square of that asylum, partially raised by 
 profits from the hard earnings of English seamen. 
 
 It was, indeed, to this improvidence in supplying funds to meet the 
 demands for the navy that the South-Sea Company owed its origin. So 
 largely had the unpaid sailors' tickets increased, that nine millions were 
 unprovided for. Cash was scarce, the holders were clamorous, and Par- 
 liament, as a premium for forbearance, erected them into that body which 
 ended so disastrously for the commercial interests of England. 
 
 In 1730, a loan of .£400,000 was attempted for the Emperor of 
 Germany. 'Change Alley was ready to advance it on sufficient interest 
 and sound security ; but Sir Robert Walpole brought in a bill to prohibit 
 his Majesty's subjects and others resident in the kingdom from advancing 
 money to any foreign state, without license from the king under his 
 privy seal. The opposition experienced by the minister was very strong. 
 The great city commoner spoke against the bill, and it required all the 
 power of Sir Robert Walpole to counterbalance the influence of Sir John 
 Barnard in a matter pertaining to business. 
 
 It was very natural that men's minds should be turned to that portion 
 of the town which, ever and anon, gave signal symptoms of great frauds, 
 great gains, and great gambling; and Sir John Barnard endeavoured, in 
 1732, to draw the attention of the House of Commons to the dealings and 
 the doings of the Stock Exchange. It had, even at this early period, a 
 complete and organized system. The expresses of its rich members 
 came from every court in Europe, and beat — as the expresses of job- 
 bers always have — the messengers of the government. Sir Robert Wal- 
 pole not only declared this, but with great naivete added, " It is because 
 they are better paid and better appointed." The very fact that brokers 
 did beat the government despatches was regarded as a crime ; and the 
 public continued, year by year, to pour its maledictions on the frequent- 
 ers of 'Change Alley. 
 
 The funds were said to be the nursery of fraud. In the leading com- 
 
 26 
 
Origin of Time- Bargains. 
 
 panies the interest of the citizen was sacrificed to the jobber. The whole 
 town was converted into a corporation of brokers and usurers, which 
 could lie the government into credit one week and out of it the next. 
 The magistracy of the city encouraged it, and the aristocracy of the city 
 pursued it. 'Change Alley was called a gaming-house publicly set up \ 
 in the middle of London, towards which the heads of our merchants and -^ 
 tradesmen were turned instead of to their legitimate pursuit ; and it was j 
 said that <£ 80,000 were paid annually by foreigners in the shape of ^, 
 commissions to the brokers of the Alley. But it was to the bargains for \ 
 time that public attention was principally pointed by the city member. 
 The origin of these bargains is obvious, and may be traced to the period 
 of six weeks in each quarter, when the bank books were — as it was then 
 thought — necessarily closed to prepare for the payment of the dividend. 
 As no transfer could be made during this period, it naturally enough 
 became a practice to buy and sell for the opening. The habit grew by 
 what it fed on ; and, in time, periodical dates for the payment of funds, 
 purchased or sold when it could not be transferred, were fixed on by the 
 Stock Exchange Committee, at intervals of about six weeks. As in 
 these transactions the possession of stock was unnecessary, and the pay- 
 ment of the difference in the price was sufficient, bargains for time be- 
 came common, and not only English, but foreign capitalists, were attract- 
 ed by the chance of gain, while the Hebrews flocked to 'Change Alley 
 from every quarter under heaven. 
 
 In consequence of the view which Sir John Barnard took of these . 
 facts, he succeeded in carrying that enactment which, intended to pre- / 
 vent gambling in the funds, has been utterly and singularly powerless in ( 
 its effect. It provided that no loss in bargains for time should be recov- 
 erable in the courts, and placed without the pale of the law all such 
 speculations. One hundred and sixteen years have passed, the act is 
 still in force, and speculative bargains have not only increased, but form 
 the chief business of the Stock Exchange. The greatest corporation in 
 the world has availed itself of the principle, and the effect of the statute 
 is, not to prevent respectable men from speculating, but to make rogues 
 refuse to pay their losses, knowing that, while the law is inefficient, the 
 blackboard of the Stock Exchange is their only punishment. To such 
 men such punishment is ridiculous ; they only feel through the purse, and 
 in that they know they are safe by virtue of an act in which they rejoice. 
 
 That a feeling of gambling was encouraged is indisputable, and the 
 attempt of Sir John Barnard was, therefore, honorable. But this pro- 
 pensity seems a natural principle of humanity. The savage in a state of 
 nature, and the peer at the highest point of civilization, alike indulge in 
 it. Every man who trades beyond his power to pay, every merchant 
 who purchases goods on delivery, is, strictly speaking, a gambler ; and it 
 is well known to be a common practice of the first merchants to buy 
 goods for arrival without the slightest intention of receiving them, and 
 directly a profit can be gained, or too great a loss averted, they are re- 
 sold without even the bill of lading being visible to the buyer. 
 
 It is these things which lead to disgraceful bankruptcies. The intel- 
 figent author of " Partnership en Commandite " says : — "On the banks 
 
 27 
 
Reduction of Interest on National Belt. 
 
 of the Danube, the Vistula, the Rhine, and the Tagus, — on the shores 
 of the Baltic and the Mediterranean, — on the plains of Poland, — I have 
 met with men who have asked me for charity, because they had been 
 ruined by connection with some of the first English houses." 
 
 The first effect of Sir John Barnard's Act was serious ; and bargains 
 for time, or the " race-horses of 'Change Alley," as they were termed, 
 were said to have expired. It was soon found, however, that to make 
 the brokers responsible would answer every purpose ; and business flour- 
 ished as gayly as if the father of the city had never had an existence. 
 
 Though this measure was with difficulty passed, the wonder is that it 
 passed at all, as the reasoning brought in its favor was very slight ; and 
 the following is a fair specimen of the speeches in its behalf : — 
 
 " The broker comes to the merchant, talks of the many fatigues and 
 dangers, the great trouble and small profits in the way of trade. He then 
 tells him if he will allow him to dig in the rich mine of 'Change Alley, 
 he could get more in a day than he could by his trade in twelve months. 
 The merchant is persuaded, he engages, goes in for some time, and is 
 quite undone. His just creditors are surprised. ' What,' say they, ' this 
 man had a .good stock to begin with, and he has had a good trade for 
 several years ; he never lived extravagantly ; what is become of his 
 effects and his money } ' They inquire, and find that the whole was 
 gamed away in 'Change Alley." 
 
 The fears of the brokers outran their discretion as soon as the bill 
 passed into law ; and the maledictions poured upon Sir John were loud, 
 deep, and frequent. They thought that the principal and most profitable 
 part of their trade was departed ; and it was declared — how truly, time 
 has since shown — that it would be only possible to get an estate by the 
 slow, dull way of commerce. Every effort was made to ruin his repu- 
 tation and his character ; but both were too firmly established to receive 
 any injury from the malevolent stories which were currently circulated. 
 
 A proposition was made in 1737, by the same gentleman, to reduce 
 the interest on the national debt from four to three per cent. Nothing 
 could be more just than this, as the public might either receive their 
 principal in full, or one per cent, less interest. The House was at first 
 disposed to entertain the proposal with the fairness it merited ; but the 
 moneyed men rose in a body, and Sir Robert Walpole, fearing to disoblige 
 them, fearing to lose those votes on which he had hitherto relied, and en- 
 vying also the popularity Sir John might acquire, determined to crush the 
 scheme. He interested the king and queen ; he employed his ministerial 
 power ; he intimidated some, he bribed others, he puzzled and persuaded 
 more ; until, his purpose being effected, the bill — than which nothing 
 could be more reasonable — was rejected. The popular feeling attrib- 
 uted this opposition to the royal family, who possessed great funded 
 property ; but to popular feeling, unless it rose to a storm, as with the 
 Excise Bill, Sir Robert Walpole was very indifferent. 
 
 In the same year, an inquiry being instituted into the books of the 
 Bank of England, it was calculated that ten millions were held by for- 
 eigners in the English funds ; a remarkable proportion of the amount at 
 which the national debt then stood. 
 
 28 
 
Reduction of Interest on National Debt. 
 
 In the reign of George II. a new mode of raising loans was adopted. 
 Instead of varying the interest according to the state of the money- 
 market, the rate was fixed from three to five per cent., and the subscrib- 
 ers remunerated by an additional amount of stock. It was the first 
 public announcement that the debt was perpetual ; and has made the 
 present principal two fifths more than the sum originally advanced. In 
 the earlier history of borrowing, the government named its own terms ; 
 and as this generally afforded a profit, the loan was soon filled. If, 
 however, the ministerial proposals were not sufficiently liberal, the exec- 
 utive altered the terms to the real value of money ; and it is by no means 
 an uninstructive fact, that it was found in 1748, after a close calculation, 
 that for thirty previous years land had produced a higher interest than / 
 the funds. 
 
 Although an act had been passed by which it was declared illegal for 
 one individual to have more than twenty lottery-tickets allowed him, it 
 soon became notorious that the rule was flagrantly and frequently vio- 
 lated. Manasseh Lopez, whose dealings on the Stock Exchange entitled 
 him to be termed a leader, had bribed the commissioners to permit an 
 indirect violation of the law, by accepting a long list of feigned names as 
 candidates for tickets. He was prosecuted by the Attorney-General, 
 and sued in the Court of King's Bench. A fine of one thousand pounds 
 was awarded as punishment ; but as he had made more than fifty times 
 the amount, it might be regarded as a very successful speculation. 
 
 The first reduction in the interest of the national debt — from four to 
 three per cent. — was effected in 1750, and was received with a storm 
 of indignation similar to that which arose in 1737, on the mere attempt. 
 Sir John Barnard, to whom every thing connected with the funds was 
 of importance, is mentioned as having proposed it to Mr. Pelham, who 
 brought it forward in the House of Commons. The best men in the 
 city protested against so bold a measure, and the foes of the minister 
 encouraged the opposition of the fundholder ; his friends overwhelmed 
 him with entreaties to withdraw the motion ; and every engine which 
 could be brought into operation by the moneyed interest was employed. 
 Reasons which time has since repudiated, fallacies which almost re- 
 pudiated themselves, evils which had no existence save in the brain 
 of the prophet, were freely circulated. It was said that the landed 
 gentry and the noble families of England would be ruined, and their 
 children would become beggars ; that the interest of younger sons' por- 
 tions would not enable them to associate with the cooks and coachmen of 
 their elder brothers ; and that merchants, shopkeepers, and tradesmen 
 would be ruined. The farmers would lose their farms ; families would 
 be undone ; and such a deluge of distress be brought upon all ranks, that 
 the consequences would be fatal to that " free and happy constitution " 
 which has been so often ruined in the brains and in the prophecies of 
 partisans. 
 
 Its first reception was so lukewarm by the minister's friends, and the 
 
 opinions of the people so strong, that, coupled with the previous failure 
 
 of a similar measure, its miscarriage was confidently calculated. " Mr. 
 
 Pelham," says the flippant chronicler of the times, " who has flung him- 
 
 3* 29 
 
 /I. 
 
,,^-;;;;;:::::, Sir John Barnard. 
 
 self entirely into Sir John Barnard's hands, has just miscarried in a 
 scheme for the reduction of interest, by the intrigues of the three great 
 companies and other usurers." Horace Walpole mistook the voice of 
 his little circle for the voice of the country. The scheme did not mis- 
 carry ; and it is remarkable that this, the first reduction in the interest of 
 the national debt, was planned in a most masterly manner, and reflected 
 great honor upon Sir John Barnard. A loss of one per cent, upon the 
 income of an annuitant is important, and acts prejudicially upon all with 
 limited means. To obviate this evil, if the fundholder declined receiving 
 his capital, the interest was reduced from 1750 to 1757 only one half 
 per cent., 3^ being paid during that period ; after 1757 it was reduced 
 the remainmg half per cent. The great resources of England have ever 
 been regarded with wonder by foreign nations ; and they looked with 
 astonishment on the power of a people which, after a heavy war and 
 an increased debt, enabled the state to repay its creditors or reduce its 
 interest. 
 
 The name of Sir John Barnard, the father of the city, its honest rep- 
 resentative for six sessions, the remodeller of the Stock Exchange, and 
 the reducer of the interest on the national debt, occupies a prominent 
 place in all questions connected with the funds. Born of the same per- 
 suasion as William Penn, he retained during life much of the simple 
 honesty of the creed he originally professed ; and even Sir Robert Wal- 
 pole respected him, although he was constant in his opposition to bad 
 measures, and could never be bought nor bribed. " I address myself to 
 you, Mr. Speaker, and not to your chair," he said, when Sir Robert Wal- 
 pole, secure in a majority, withdrew the attention of the Speaker ; " I 
 will be heard ; and I call that gentleman to order." Lord Chatham gave 
 him, half in jest and half in earnest, the proud title which was afterwards 
 appropriated to himself, of " the great Commoner." His pride was in- 
 domitable. The members of the Stock Exchange, who were always 
 spoken of with great contempt by Sir John, thoroughly detested him, and 
 greatly helped to fan the unpopularity which fell upon him when he 
 opposed public feeling, as, with a most unbending integrity, he inva- 
 riably did, if his conscience prompted. " He grew," said Horace Wal- 
 pole on one occasion, " almost as unpopular as Byng." On commercial 
 subjects his opinion was greatly regarded. When any remarkable fea- 
 ture in financial politics occurred, the town echoed with, " What does 
 Sir John say to this ? What is Sir John's opinion ? " And he had the 
 honor of refusing the post of Chancellor of the Exchequer in 1746. It 
 is somewhat at variance with the proud character of the man, that, from 
 the time his statue was erected in the Royal Exchange, he never entered 
 the building, but transacted his business in the front. The blood of Sir 
 John Barnard yet flows in the veins of some of the best houses in the 
 commercial world, his son having married the daughter of a gentleman 
 known in contemporary history as " the great banker, Sir Thomas 
 Hankey." 
 
 30 
 
Origin of New Loans, 
 
 CHAPTER VT. 
 
 Origin of New Loans, — Fraud of a Stock-broker. — East India Stock. — 
 Sketch of Sampson Gideon, the great Jew Broker. — East India Company. — 
 Restriction of its Dividends. — Liberality to its Clerks. — Important Decision. 
 — Robbery at Jonathan's. — Curious Calculation concerning the National Debt. 
 
 The Spanish war, and the war of the Austrian succession, was the 
 origin of the next increase of the national debt. It was alleged that the 
 commerce and the merchants of Great Britain were injured by the Span- 
 iards ; that the subjects of England were sent to the Spanish mines ; 
 and though one remonstrance followed another to the court of Madrid, 
 promises were more plentiful than performances from the haughty Span- 
 iard. The people were excited to believe that their honor was insulted ; 
 a dramatic exhibition was made at the bar of tbe House of Commons ; 
 and this war, partly to please the populace, partly to heal the wounded 
 national pride, and partly to secure British subjects from the right of 
 search in American seas, was openly declared in 1739. The heralds 
 were attended in their progress by the chiefs of the opposition, and the 
 Prince of Wales drank success to England at Temple Bar ; but Sir Rob- 
 ert Walpole, as he heard the merry peal from the city steeples, muttered, 
 " They may ring their bells now, they will wring their hands before 
 long." 
 
 The misfortunes with which the campaign opened justified the minis- 
 ter's prophecy, and the war was violently attacked in the House ; but the 
 majority of Sir Robert was an irresistible argument, and calamity con- 
 tinued to mark the progress of the British arms. An armament, with 
 15,000 sailors, and as many soldiers, completely equipped, failed dis- 
 gracefully before Carthagena. The squadrons of our admirals were dis- 
 persed. Fontenoy witnessed a signal defeat, and Tournay was taken. 
 Scotland was entered by a Stuart, under circumstances which promised 
 success. England was threatened with invasion ; the vast armies of the 
 English allies, paid by English money, raised by loans through the Stock 
 Exchange, were inactive or defeated ; and it was only when a more 
 promising aspect was shed over our efforts, when the assistance of Russia 
 would have assured a supremacy, and British fleets had intercepted the 
 treasures of France and Spain, that the ministry, tired of a war which 
 brought so many reverses, and alarmed at the voice of public opinion, 
 consented to treat for peace. 
 
 But their treaty was as disgraceful as their war. The principal cause 
 of the latter, the right of search, was not even alluded to ; no equiv- 
 alent was received for forts restored to the enemy ; and, for the last 
 time in English history, the nobles of the land were given as pledges for 
 the country's faith. " The whole treaty," says one historian, " is a 
 l£isting memorial of precipitate counsel and English disgrace." It is 
 
 31 
 
Fraud of a Stock-hroker. 
 
 melancholy to add, that this unhappy war added ,£31,333,689 to the 
 permanent debt, took £ 15,080,000 in taxes, and, says a pamphleteer 
 of the day, " increased the contemptible crew of 'Change Alley." 
 
 The early mode of raising money was somewhat curious. When a 
 new tax was imposed by Parliament, any person might advance any sum 
 not less than £ 100. For this, a tally was given at the Exchequer, with 
 an order for repayment of the principal, and the payment of interest. 
 The sums thus advanced were to be paid off in regular order, as the 
 money arising from the tax was received. But as this was generally 
 found to be insufficient to redeem the loan, it became necessary either to 
 prolong the term, or raise a new loan to pay off the old one. 
 
 The interest on loans during the reigns of Anne and William was 
 very uncertain. In the reign of George II. a new principle was adopted. 
 Instead of varying it according to the state of the money-market, the rate 
 was generally fixed at 3 or 3^ per cent., and the necessary variation 
 made in the sum funded. In consequence of this practice having pre- 
 vailed, the principal of the debt now existing amounts to nearly two fifths 
 more than the sum actually advanced. 
 
 As early as 1762, a stock-broker, named John Rice, met the fearful 
 penalty so liberally awarded to crime by the civil code of the eighteenth 
 century. A client of Rice, for whom he was accustomed to receive her 
 dividends, was, under false pretences, induced to grant a power to sell as 
 well as to receive the interest. As the temptation to speculate on the 
 Stock Exchange is great, the temptation to divert property from its 
 legitimate channel is equally so, when confidence or carelessness has 
 granted the power. The stock-broker sold all his client's money, em- 
 ployed it to meet his losses, and kept up his deception by sending her the 
 dividends as usual. The lady, moved by doubt, or by some cogent but 
 unknown cause, intimated to Rice her intention of visiting the city. Un- 
 able to restore the money, the conscience of Rice took the the alarm, and 
 he fled, leaving with his wife £ 5,000 of the misappropriated property. 
 Ignorant of his evil deeds, and anxious to join her husband, she em- 
 barked for Holland. The weather proved rough ; the vessel was driven 
 back ; and the persons sent in search of the husband apprehended the 
 wife, who yielded the money in her possession, leaving herself entirely 
 destitute ; and it is to the credit of the directors of the South-Sea Com- 
 pany, that they settled a small pension on the unhappy woman. 
 
 The search continued for Rice, who was discovered in the old town of 
 Cambray, where he had taken up his residence. The English ambassador 
 at Paris applied for his delivery ; the misguided man found that Cambray 
 was no city of refuge for him ; and the last sad penalty of the law was 
 enacted on the body of John Rice, the stock-broker. 
 
 In February, 1674, the jobbers were taken by surprise, and a sudden 
 fall of fourteen per cent, in India Stock occurred, owing to an unex- 
 pected war in the East. The incident is only remarkable, that from this 
 period, marked by a fall in their stock to so large an extent, commenced 
 the political greatness of the Company. A violent dispute had arisen be- 
 tween Lord Clive and the directors ; but their foreign afiairs assumed so 
 serious an aspect, that the latter were forced to yield. Every vessel 
 
 32 
 
Sampson Gideon. 
 
 brought alarming tidings. The natives, unable to bear the oppressive 
 exactions to which they were subject, arose and defied the government 
 The directors of the Company grew alarmed. They forgot their feuds, 
 they remembered only their dividends, and called Clive to their rescue 
 But Clive refused to act so long as one Sullivan, his bitter enemy, occu 
 pied the position of chairman ; and as the proprietors would have remov 
 ed the whole court of directors rather than miss the services of Clive 
 Sullivan not only lost his chairmanship, but was within a single vote of 
 losing his seat as director. During this exciting period, so great was the 
 bustle, that Cornhill and Cheapside were filled with the carriages of the 
 voters ; and from this dispute, which commenced with so ominous a fall 
 in their stock, may the territorial dignity of the East India Company be 
 dated. 
 
 Sampson Gideon, the great Jew broker, as he was called in the city, 
 and ihe founder of the house of Eardley, as he is known to genealo- 
 gists, died in 1762. This name, as the financial friend of Sir Robert 
 Walpole, the oracle and leader of 'Change Alley, and the determined 
 opponent of Sir John Barnard, was as familiar to city circles in the last 
 centuiy as the names of Goldsmid and Rothschild are to the present. A 
 shrewd, sarcastic man, possessing a rich vein of humor, the anecdotes 
 preserved of him are, unhappily, few and far between. " Never grant a 
 life-annuity to an old woman," he would say ; " they wither, but they nev- 
 er die." And if the proposed annuitant coughed with a violent asthmatic 
 cough on approaching the room-door, Gideon would call out, " Ay, ay, 
 you may cough, but it sha'n't save you six months' purchase ! " 
 
 In one of his dealings with Mr. Snow, the banker, — immortalized by 
 Dean Swift, — the latter lent Gideon £ 20,000. Shortly afterwards, the 
 " forty-five " broke out ; the success of the Pretender seemed certain ; 
 and Mr. Snow, alarmed for his beloved property, addressed a piteous 
 epistle to the Jew. A run upon his house, a stoppage, and a bankruptcy, 
 were the least the banker's imagination pictured ; and the whole con- 
 cluded with an earnest request for his money. Gideon went to the bank, 
 procured twenty notes, sent for a phial of hartshorn, rolled the phial in 
 the notes, and thus grotesquely Mr. Snow received the money he had lent. 
 
 The greatest hit Gideon ever made was when the rebel army ap- 
 proached London ; when the king was trembling ; when the prime min- 
 ister was undetermined, and stocks were sold at any price. Unhesitat- 
 ingly he went to Jonathan's, bought all in the market, advanced every 
 guinea he possessed, pledged his name and reputation for more, and held 
 as much as the remainder of the members held together. When the 
 Pretender retreated, and stocks rose, the Jew experienced the advantage 
 of his foresight. 
 
 Like Guy, and most men whose minds are absorbed in one engrossing 
 pursuit, Mr. Gideon was no great regarder of the outward man. In a 
 humorous essay of the period, the author makes his hero say, " Neither 
 he nor Mr. Sampson Gideon ever regarded dress." He educated his 
 children in the Christian faith, but said he was too old himself to change. 
 Being desirous to know the proficiency of his son in his new creed, he 
 asked, " Who made him ? " and the boy replied, " God." He then 
 
 33 
 
Sir Rohert WalpoWs Sinking Fund. 
 
 asked, " Who redeemed him ? " to which the fitting response was given. 
 Not knowing what else to say, he stammered out, " Who — who — who 
 gave you that hat ? " when the boy, with parrot-like precision, replied in 
 the third person of the Trinity. The story was related with great unction 
 at the period. 
 
 " Gideon is dead," writes one of his contemporaries, in 1762, " worth 
 more than the whole land of X^anaan. He has left the reversion of all his 
 milk and honey, after his son and daughter, and their children, to the Duke 
 of Devonshire, without insisting on the Duke taking his name, or being 
 circumcised." That he was a man of liberal views, may be gathered 
 from his annual donation to the Sons of the Clergy, from his legacy of 
 £ 2,000 to the same charity, and of .£1,000 to the London Hospital. He 
 died in the faith of his fathers, leaving £ 1,000 to the Jewish syna- 
 gogue, on condition of being interred in the burying-place of the chosen 
 people." 
 
 The question of the sinking fund has greatly occupied the attention of 
 financial men, and upon few schemes have so many and such various 
 opinions been given. To view the subject by the light of common 
 sense, it seems palpably absurd that more money than was necessary 
 should be borrowed for the sake of paying it again, or that, while a sur- 
 plus fund remained in the Exchequer, new loans should be raised. Paine 
 afterwards declared it was like a man with a wooden leg running after a 
 hare, — the more he ran, the farther he was off. 
 
 The first sinking fund is usually called Sir Robert Walpole's, because 
 it was adopted by him ; but its author was the Earl of Stanhope. The 
 taxes, which had at first been for limited periods, being rendered per- 
 petual, proved greater than the charges they were meant to defray. 
 The surpluses, therefore, were united under the name of the Sinking 
 Fund, and appropriated for the discharge of the national debt. 
 
 The opinion which Dr. Price has since so strongly urged was very 
 prevalent ; and as much anxiety concerning the debt existed, it was con- 
 sidered important to apply this surplus invariably to the discharge of the 
 great debt, and to borrow by new loans when the public exigencies re- 
 quired it. Thus, although from 1718 to 1731 was a period of peace, the 
 following sums were borrowed : — 
 
 1718 
 
 . jE 505,995 
 
 1727 . 
 
 . 1,750,000 
 
 1719 
 
 312,737 
 
 1728 
 
 1,230,000 
 
 1720 
 
 500,000 
 
 1729 . 
 
 550,000 
 
 1721 
 
 1,000,000 
 
 1730 
 
 1,200,000 
 
 1725 
 
 500,000 
 
 1731 . 
 
 500,000 
 
 1726 
 
 370,000 
 
 
 £8,418,732 
 
 The money procured by the sinking fund for the discharge of the na- 
 tional debt, from 1716 to 1728, amounted to ^6,648,000, being a trifle 
 more than the debt contracted during the same period. 
 
 In 1728, it was found that the principle could not be preserved ; and 
 the interest of the loan of that and the following year was charged on 
 the fund, while the additional taxes imposed to pay the interest of the 
 loans were applied to increase it. A short time after, the plan of pre- 
 
 34 
 
Operations of the Sinking Fund. 
 
 serving the sinking fund inviolate was abandoned ; and in i733, .£500,000 
 was taken to meet the expenses of the year; in 1734, £ 1,200,000 was 
 taken for the same purpose ; and in 1735, it was even anticipated, and 
 the principle, in effect, abandoned. From that time its operations grew 
 feeble, its produce was often devoted to other purposes, and it was found 
 necessary to have recourse to it when the expenses exceeded the rev- 
 enue, and no new taxes were imposed. In the peace which followed the 
 treaty of Utrecht, — a period of twenty-six years, — .£7,231,508 was 
 the amount of debt discharged by the sinking fund ; and in war the 
 produce was applied to the expenses of the year, — loans being raised 
 for the additional sums required. 
 
 This fund produced at its commencement, in 
 
 1717 . . . . ' £323,439 
 
 From 1717 to 1726,both inclusive 577,614 
 
 1727 " 1736 « .... 1,132.251 
 
 " 1737 " 1746 " 1,062,170 
 
 « 1747 "1756 « .... 1,356,578 
 
 " 1757 "1766 « 2,059,406 . 
 
 The further and feeble operations of this fund are unnecessary to trace, 
 as, although it continued nominally in the accounts of the Exchequer 
 until 1786, when Mr. Pitt's sinking fund was introduced, it did little in 
 peace, and nothing in war. From 1717 to 1772 it produced but twenty 
 millions, being about £ 357,000 annually. 
 
 If the increase to the debt last recorded was caused by a disgraceful 
 war and a powerless ministry, that which followed was no less remark- 
 able for the brilliancy of its operations and the greatness of its achieve- 
 ments. Since the treaty of Aix-la-Chapelle, the English and French 
 East India Companies had been fighting for supremacy, and the animosity 
 spread to the colonies. A British force was cut off in America, and some 
 French vessels were taken on the West India seas. War seemed neces- 
 sary, and, when commenced, proved at first sufficiently humiliating. 
 Hanover was attacked by France, and petty German princes were sub- 
 sidized to defend it. Minorca, commanded by Blakeney, a superannuated 
 general, was taken by Richelieu, a superannuated fop. Braddock was 
 defeated in America ; Admiral Byng refused to engage the French fleet ; 
 and an outcry arose for his life, which appalled the men who governed 
 the councils of the country. Shops were filled with libels ; walls were 
 covered with satires. The English people, rarely yielding to the thirst 
 for blood, demanded that of the unpopular admiral ; and the prime min- 
 ister trembled for his neck. Our navy could scarcely keep the sea, and 
 the army was commanded by men desirous only of seeking emolument 
 and avoiding risk. Enterprise and energy were absent. In the West, 
 our power was paralyzed ; in the East it was endangered. From every 
 county in the kingdom, from every town in the empire, vengeance was 
 demanded. The Duke of Newcastle vacated the place of prime minister ; 
 a change was effected ; and from that period a succession of conquests 
 filled the kingdom with pride, and raised the fame of the country. The 
 accession of Mr. Pitt to the post of prime minister was felt in every de- 
 partment. France, attacked on some, and menaced on all points, suf- 
 
 35 
 
Mr. Pift''s Administration. 
 
 fered disastrous defeats, retired from Germany, and saw her West and 
 East Indian colonies wrested from her. In one action, thrrty-six sail of 
 the line, fifty frigates, and forty-five sloops were taken or destroyed, and 
 the sea swept clear of the fleets that had insulted our coasts and our 
 colonies. Triumph after triumph, conquest after conquest, and, it must 
 be added, loan after loan, were witnessed. Goree and Guadaloupe were 
 taken. The Heights of Abraham beheld the fall of Wolfe and of Que- 
 bec ; Montreal was subdued ; and the total cession of Canada followed. 
 The fleet to which the French court had confided its American posses- 
 sions was destroyed, and captured standards were borne through the streets 
 amidst truimphant shouts, which deadened the roar of the cannon. 
 
 The accession of George III. did not interfere with the conduct of the 
 war. Nineteen millions were voted the first year of his reign ; and 
 though Mr. Pitt retired from the councils of his Majesty, the contest was 
 carried on with the same energy ; while the system of subsidies was con- 
 tinued with a profusion which has been rarely paralleled. Triumphs 
 such as these produced their effects on the opponents of England. Spain 
 and Portugal were anxious for peace ; France was impoverished, the 
 plate of her monarch converted into money ; and, in 1762, a just and 
 honorable peace was concluded. 
 , It is remarkable, also, that public distress was never less apparent than 
 ( during this war ; and the rare picture was presented of a people support- 
 ■ ing without murmurs the trials and the taxes of a wide and costly con- 
 test. Prosperity and wealth at home hid the price at which the victories 
 were purchased abroad. London was never more thriving ; and the im- 
 portance of several manufacturing districts dates from the success of the 
 seven years' war. During this period, the whole continent of America 
 fell into our power. Twenty-five islands were captured ; twelve great 
 battles won ; nine fortified cities, and forty forts and castles, taken. One 
 hundred ships of war and twelve millions of specie acquired ; sixty mil- 
 lions added to the national debt, and fifty-two millions raised by taxes. 
 
 To produce the peace which followed this contest, bribery was resorted 
 to, and the public money wasted. " The peace of 1763," said John 
 Ross Mackay, private secretary to the Earl of Bute, and afterwards Treas- 
 urer to the Ordnance, " was carried through and approved by a phcu- 
 niary distribution. Nothing else could have surmounted the difficulty. I 
 was myself the channel through which the money passed. With my 
 own hand I secured above one hundred and twenty votes on that vital 
 question. Eighty thousand pounds were set apart for the purpose. Forty 
 members of the House of Commons received from me a thousand pounds 
 each. To eighty others I paid five hundred pounds apiece." 
 
 The continued corruptions produced continued irregularity. George 
 IT. said he was the only master who did not see his servants remunerated ; 
 adding, to Mr. Pelham, that if the civil list were not paid, he would find 
 another minister. Remonstrances on the injury to the national and in- 
 dividual interest were so frequent, that the king declared he would in- 
 spect the accounts himself 
 
 The Duke of Newcastle, then prime minister, bowed, and promised to 
 send the papers ; and the following morning, a cart loaded with official 
 
 36 
 
Secret- Service Money. 
 
 accounts was paraded in the court-yard of the palace. With much vio- 
 lence, the monarch demanded the cause of the display. " They form a 
 portion of the accounts your Majesty desired to inspect," was the reply ; 
 " there is another wagon-full on the road." 
 
 One specimen of the accounts his Majesty had offered to investigate 
 was, however, quite sufficient ; and the public complaint remained un- 
 alleviated. 
 
 In 1742, £ 1,384,000 65. 3d. was under the sole direction of the Earl 
 of Orford for secret-service money, of which £ 50,077 18s. went to the 
 newspapers ; and the amount of this supply expended in the six weeks 
 preceding the resignation of the Earl of Orford was more than during 
 the three previous years. 
 
 In 1766, the House of Commons compelled the "East India Company 
 to rescind a vote which the excitement of the time had induced them to 
 pass. The success of Lord Clive, the important commercial consequen- 
 ces to which it led, and the plunder which rewarded the victories of the 
 soldier, had fired the brains of the East India proprietary. The most 
 extravagant reports were promulgated, and half-yearly dividends of fifty 
 per cent, were confidently promised. The value of the stock rose enor- 
 mously ; and the directors divided at the rate of thirteen per cent, per 
 annum. When it was found that the corporation were enabled to divide 
 thus liberally. Parliament, under the pretence that it might lead to a dan- 
 gerous panic, interposed with a strong hand, directed that the annual div- 
 idend of the Company should be limited to ten per cent., and that all 
 accumulations beyond should accrue to the state. Great opposition was 
 evinced. The corporation, having paid liberally for their charter, would 
 not quietly submit to an interference which so matenally decreased its 
 value ; and, having formerly bribed with success, tried the same process, 
 but without the same result. The changes in the opinion of the " inde- 
 pendent " members, as they were bribed by the Company or awed by the 
 minister, were somewhat curious ; and the cause of Charles Townshend's 
 tergiversations was probably only a type of many. Having dealt largely 
 in India Stock, he cried up the Company's claims to serve himself. He 
 then sold out at a profit, and cried them down to serve his friends. It 
 was a complete South-Sea year. A third of the House of Commons 
 was deeply engaged in the traffic ; and jobbing was the thermometer by 
 which patriots were made or marred. " From the Alley to the House," 
 said Walpole, " is like a path of ants." Most of the members were in 
 Mr, Townshend's position, and the East India Company were, therefore, 
 restricted in their dividends. The result was, that this corporation is 
 worthy the study of others in the liberality with which it rewards the 
 labors of its clerks. Acting on the fine Mosaic principle, that the ox 
 shall not be muzzled which treadeth out the corn, the Company have 
 made their servants' interests their own ; they have made them under- 
 stand that their old age shall be liberally protected if they faithfully 
 serve ; they have made them know that their widows and orphans shall 
 not be forsaken ; and they have, therefore, made them feel that the ser- 
 vice of such a company is a pleasure, and not a pain ; a love, and not w 
 labor. 
 
 4 37 
 
Liberality to Clerks. 
 
 It is the curse of English commerce, of English banking, and of 
 English trading generally, that, while large fortunes are made by the 
 principals, tlie clerks are often remunerated at a rate inferior to that which 
 the merchant pays his favorite domestic. The small number necessary 
 to produce a great income takes away all excuse for this penury ; and as 
 four or five are frequently sufficient to produce annual thousands, it is to 
 be regretted that, while the principal seeks the most luxurious abode 
 which wealth can produce, the clerk goes to some cheap suburban home, 
 in which, with his family, he can scarcely unite respectability with life. 
 
 In corporations and in public offices this is peculiarly hard. The addi- 
 tional salary would not be felt, and there is a responsibility on the clerks 
 which demands that their payment should be proportioned to it. It is an 
 honor to them that, with the lax notions entertained of corporate and na- 
 tional property, the frauds should be so rare ; but it is a dishonor to com- 
 mercial nature, that, considering the profits made by merchants, the daily 
 intercourse they hold with their clerks, and the trust they are compelled 
 to place in them, they pay in so small, and work in so great a degree. 
 It is a most suggestive fact, that, where the functionaries are remunerated 
 the worst, the frauds are most numerous. 
 
 But there is another evil felt by the stipendiary. His personal treatment 
 is not in accordance with his claims as an educated man. The coldest 
 look and the haughtiest answer are reserved for him. The smallest 
 amount of intercourse necessary to business is awarded him. The com- 
 mon courtesies of life are denied him. The merchant too often enters 
 his counting-house without recognition, and leaves it without an adieu. 
 
 In similar establishments abroad, the clerks are treated with care and 
 kindness. They are not made hourly to feel the great gulf between 
 them and their wealthy superiors. They visit the homes of the latter ; 
 they are confidentially consulted ; they are allowed time to think ; they 
 are treated as men, not as animals. And thus it was in England in the 
 olden time. The merchant of that school invited his clerk to his home, 
 took an interest in his affairs, and recognized him as a friend. They 
 worked the fortunes of the house together, and, if the merchant was re- 
 paid by his clerk's fidelity, the latter was often admitted into the firm he 
 had served. This is not so now. But the master is the greatest loser ; 
 for there is no service so fruitful as that which arises from kindness, or so 
 grateful as that which has its root in affi3ctionate respect. 
 
 An important point was decided against the presumed privilege of the 
 city in 1767. Two gentlemen, wishing to purchase stock, employed 
 friends, not brokers, to procure it. The chamberlain, deeming this an 
 invasion of the civic prerogatives, commenced proceedings against them. 
 In both cases, however, the defendants gained the day. " And," says 
 the authority, " it is now settled that every person is at liberty to employ 
 his friends to buy or sell government securities without employing a 
 broker." 
 
 Some of the frequenters of Jonathan's were dexterous manipulators, 
 and, however the speculator might congratulate himself on his success in 
 the Alley, it occasionally happened that he found himself lightened of 
 his profit. Thus, in one day in the above year, no fewer than four 
 
 38 
 
Crisis of 1772. 
 
 brokers were robbed of their pocketbooks, containing large amounts of 
 property. The thief was taken ; but, in place of expressing contrition, 
 he gave a voluntary and unexpected opinion, that one man had as much 
 right to rob as another, and that he was only acting as an honorary 
 magistrate, in taking that of which they had cheated their neighbours. 
 
 In 1771, a somewhat curious calculation was made, that if the debt of 
 130 millions were counted in shillings at the rate of 100 a minute, it 
 would occupy one person 49 years, 158 days, and 7 hours. The same 
 person also declared its weight in the same coin to be 41,935,484 troy 
 pounds ; and that it would require 279,570 men to carry it. 
 
 CHAPTER VII 
 
 Crisis of 1772. — Indian Adventurers, their Ostentation, their Character. — 
 Failure of Douglas, Heron, 6f Co. — Neale, Fordyce, djr Co. — Sketch of Mr. 
 Fordyce. — His Success in the Alley. — Alarm of his Partners. — His Ar- 
 tifice. — His Failure. — General Bankruptcy. — Liberality of a Nabob. — 
 Reply of a Quaker. — Witticism of John Wilkes. — War of American Inde- 
 pendence. — Artifices of Ministers. — Anecdote of Mr. Atkinson. — Value of 
 Life on the Stock Fxchange. — Longevity of a Stock-broker. 
 
 The crisis of 1772 has been entirely overlooked by those who have 
 bestowed their thoughts upon such subjects. It had its origin in a variety 
 of circumstances ; but the exciting cause was the failure of the bank of 
 Douglas, Heron, & Co., established in 1769. It was the period when 
 the success of adventurers in our Indian empire had contributed to the 
 wealth of England. Immense sums were accumulated in a few months. 
 Large purchases of land were made at high prices. All the early and 
 late symptoms of speculation were apparent. The vast fortunes brought 
 home were ostentatiously displayed. A contempt for the slow gains of 
 trade, a feverish excitement, and an ungovernable impatience to be rich, 
 marked the period. The nabobs were not disposed to hide their wealth 
 under a bushel. They built magnificent mansions, and mistook ostenta- 
 tion for taste. They raised the prices of all articles of consumption ; 
 they were bowed to before their faces, and dreaded behind their backs. 
 •Dark deeds were told of them ; and the shrewd peasantry shuddered 
 as the massive carriage rolled by, which held the man whose wealth had 
 been obtained at the expense of his humanity. The ephemeral litera- 
 ture of the day is filled with the popular opinion of the character ; and 
 the nabob is commonly represented as a man with a bad liver and 
 black heart. Scott, with his exquisite conception of the ludicrous, makes 
 one of his characters define a nabob as " one who comes frae foreign 
 parts, with mair siller than his pouches can hold : as yellow as oranges, 
 and maun hae a' thing his ain gate." 
 
 39 
 
Failure of Douglas, Heron, ^ Co. 
 
 For thirty years the pubHc was filled with impressions of their wealth 
 and crimes ; and so late as twenty years ago, Lord Clive was described 
 to the writer as keeping memorials of his guilt in a box beneath his 
 bed, and as having destroyed himself because his past enormities were 
 too great for his conscience to bear. The drama, the story, and the 
 poem, were colored with their eccentricities ; while newspapers occa- 
 sionally recorded facts which marked that, in some at least, a fine gen- 
 erosity was mixed with their grossness. 
 
 The effect, however, of these things was to make money plentiful ; to 
 raise a spirit of emulation, and a thirst for gold. In addition to this, the 
 banking-house of Douglas, Heron, &" Co. circulated its paper with a 
 freedom which had an effect upon the population of Scotland remembered 
 to the present day. Discounts for a time were plentiful. Bills presented 
 by farmers, and accepted by ploughmen, were readily cashed. As is 
 usual in these cases, the dashing character attained by the bank attracted 
 those who should have known better ; and many, who boasted of their 
 foresight, paid for their presumption. 
 
 In 1771, the result of reckless trading was apparent; and Douglas, 
 Heron, & Co. failed. The shock was felt throughout the empire. The 
 Royal Bank of Scotland tottered to its base ; the banking-houses of 
 England shook with a well-grounded fear ; and the great corporation of 
 the Bank of England was beset on all sides for assistance, but from none 
 more vehemently than from Mr. Fordyce, of the house of Neale, For- 
 dyce, & Co., — a firm which, from its position, the importance assumed 
 by its partners, and the known success of some of its speculations, was 
 generally supposed to be beyond suspicion. The career of the man who 
 thus craved assistance was somewhat out of the ordinary way of his 
 craft, and may, perhaps, prove interesting, as the sketch of an adventurer 
 in whose power it lay to make or mar the fortunes intrusted to him ; and 
 also as a specimen of the mode in which the Stock Exchange is some- 
 times resorted to by bankers with the balances of their customers. 
 
 Bred a hosier at Aberdeen, Alexander Fordyce found the North too 
 confined for any extensive operations, and, repairing to London as the 
 only place worthy his genius, obtained employment as clerk to a city 
 banking-house. Here he displayed great facility for figures, with great 
 attention to business, and rose to the post of junior partner in the firm of 
 RoflTey, Neale, & James. Scarcely was he thus established, ere he began 
 to speculate in the Alley, and generally with marked good fortune. 
 
 " The Devil tempts young sinners with success " 5 — 
 
 and Mr. Fordyce, thinking his luck would be perpetual, ventured for sums 
 which involved his own character and his partners' fortune. The game 
 was with him ; the funds were constantly on the rise ; and, fortunate as 
 daring, he was enabled to purchase a large estate, to support a grand ap- 
 pearance, to surpass nabobs in extravagance, and parvenus in folly. He 
 marked the " marble with his name " upon a church which he ostenta- 
 tiously built. His ambition vied with his extravagance, and his extrav- 
 agance kept pace with his ambition. The Aberdeen hosier spent thou- 
 sands in attempting to become a senator, and openly avowed his hope of 
 
 40 
 
Fraud of Mr. Fordyce, 
 
 dying a peer. He married a woman of title ; made a fine settlement on 
 her Ladyship ; purchased estates in Scotland at a fancy value ; built a 
 hospital ; and founded charities in the place of which he hoped to become 
 the representative. But a change came over his fortunes. Some polit- 
 ical events first shook him. A sensible blow was given to his career by 
 the affair of Falkland Island ; * and he had recourse to his partners' pri- 
 vate funds to supply his deficiencies. Like many, who are tempted to 
 appropriate the property of others, he trusted to replace it by some lucky 
 stroke of good fortune, and redoubled his speculations on the Stock Ex- 
 change. Reports reached his partners, who grew alarmed. They had 
 witnessed and partaken of his good fortune, and they had rejoiced in the 
 far ken which had obtained the services of so clever a person ; but when 
 they saw that the chances were going against him, they remonstrated 
 with all the energy of men whose fortunes hang on the success of their 
 remonstrances. A cool and insolent contempt for their opinion, coupled 
 with the remark, that he was quite disposed to leave them to manage a 
 concern to which they were utterly incompetent, startled them ; and when, 
 with a cunning which provided for every thing, an enormous amount of 
 bank-notes, which Fordyce had borrowed for the purpose, was shown 
 them, their faith in his genius returned with the possession of the magic 
 paper ; and it is doubtful whether the plausibility of his manner or the 
 rustle of the notes decided them. 
 
 But ill-fortune continued to pursue Mr. Fordyce. His combinations 
 were as fine, his plans as skilful, as ever. His mind was as perceptive 
 as when he first began ; but unexpected facts upset his theories, and the 
 price of the funds would not yield to his combinations. Every one said 
 he deserved to win ; but he still continued to lose. Speculation succeeded 
 speculation ; and it is remarkable, that, with all his great and continued 
 losses, he retained to the last hour a cool and calm self-possession. After 
 availing himself of every possible resource, his partners were surprised 
 by his absenting himself from the banking-house. This, with other 
 causes, occasioned an injimediate stoppage, and a bankruptcy which 
 spread far and wide. But Mr. Fordyce was not absent long. He re- 
 turned at the risk of his life ; the public feeling being so violent that it was 
 necessary to guard him from the populace while he detailed a tissue of 
 unsurpassed fraud and folly. He manfully took the blame upon himself, 
 and exonerated his partners from all, save an undeserved confidence. 
 
 It need hardly be added, that the assistance earnestly begged by Mr. 
 Fordyce of the Bank of England was refused. Whatever impression 
 might be entertained by others of his house, the corporation to which he 
 applied was equally aware of his speculative propensities, as of the sphere 
 in which he indulged them ; and they refused assistance, upon a well- 
 founded principle, to the man who employed his customers' capital and 
 his own energies in incessant speculations on the Stock Exchange. For- 
 dyce, however, only advanced the crash. The Scotch bankers were the 
 cause ; and the Bank of England saw the necessity of stopping the dan- 
 
 * " The stocks have got wind of this secret," said Horace Walpole, " and their 
 heart is fallen into their breeches, where the heart of the stocks is apt to lie." 
 4* 41 
 
Hebrew Brokers in 1774. 
 
 gerous game commenced by the Bank of Ayr. The failures continued 
 in the commercial world. He broke half the people in town. Glyn and 
 Halifax were gazetted as bankrupts ; * Drummonds were only saved by 
 General Smith, a nabob, — the original of Foot's Sir Matthew Mite, — 
 supporting their house with £ 150,000. Two gentlemen, ruined by the 
 extravagance of the city banker, shot themselves. Throughout London 
 the panic, equal to any thing of a later date, but of shorter duration, spread 
 with the velocity of jvild-fire, and part of the press attributed to the Bank 
 the merit of supporting the credit of the city, while part assert that it 
 caused the panic. The first families were in tears ; nor is the consterna- 
 tion surprising, when it is known that bills to the amount of four millions 
 were in circulation, with the name of Fordyce attached to them. 
 
 The attempts of the speculating banker to procure assistance were 
 earnest and incessant. Among those to whom Mr. Fordyce went was a 
 shrewd Quaker. " Friend Fordyce," was the reply of the latter, " I have 
 known many men ruined by two dice, but I will not be ruined by Four- 
 dice." 
 
 In 1774, the number of Hebrew brokers was limited to twelve ; and 
 the privilege was always purchased by a liberal gratuity to the Lord 
 Mayor. During this year, the mayoralty of Wilks, one of the privileged 
 being at the point of death, Wilks, with characteristic boldness, openly 
 calculated on the advantage to be attained, and was very particular in his 
 inquiries after the sick man. The rumor, that Wilks had openly ex- 
 pressed a wish for the death of the Hebrew, was spread by the wags of 
 'Change Alley, and the son of the broker sought his Lordship to reproach 
 him with his cupidity. " My dear fellow," replied Wilks, with the readi- 
 ness peculiar to him, " you are greatly in error. I would sooner have 
 seen all the Jew brokers dead than your father." 
 
 " It is the nature of colonies, as of children, at a certain period in their 
 history, to cease to be dependent upon their parents. By judicious coun- 
 sel and control they may be retained, but they must eventually separate ; 
 and, with the one as with the other, the future influence of the parent de- 
 pends upon that parent's behaviour during the nonage of the child." 
 Such was the opinion of William Pitt, first Earl of Chatham ; and it is to 
 be lamented that the behaviour of England to her American children was 
 i\o\. likely to be remembered with kindness, when the tie was violently 
 broken. The story of that disastrous war, when men of the same ances- 
 try and the same habits were arrayed in hostility, when they who spake 
 the same tongue spake it only in unkindness, is pitiable and humiliating. 
 From the time when the inhabitants of Boston refused to be taxed, to the 
 signing of the treaty with the young republic on terms of equality, the 
 measures adopted were as severe as they were injudicious ; and to the 
 obstinacy of George III. may be traced the cause and the continuation of 
 
 * Sir Thomas Halifax had not a high reputation for liberality. During a severe 
 winter, when requested to join his neighbours in a subscription for the poor, and told 
 that " he who giveth to the poor lendeth to the Lord," he replied, " He did not lend 
 on such slight security" ; and it is curious, that, when he afterwards applied to a rich 
 neighbour for assistance, a similar reply, couched in similar language, was given to 
 his application. 
 
 42 
 
Tea in Boston Harbor, 
 
 the contest, and the increase of the national debt. The first blow was 
 struck at Boston. On the evening of December 16th, 1773, a number 
 of citizens, disguised as Mohawk Indians, boarded the vessels containing 
 the tea which they would not allow to be taxed, and discharged it into 
 the water, while other cargoes were not only refused a landing, but were 
 sent back with contempt. 
 
 When the news reached London, various restraining measures were 
 passed. The place which had witnessed the outrage was declared closed 
 for all exports and imports ; and though the bold stand of the provincials 
 astonished the mother country, it was supposed to be but temporary. It 
 was soon found, however, that Boston was not alone ; other provinces 
 joined ; and British America called a general congress. Magazines were 
 formed ; ammunition was provided ; plans were drawn up for the defence 
 of the country ; and a large body enrolled, termed minute-men, engaged 
 to turn out at a minute's notice. Every contingency was prepared for ; 
 and an aspect called rebellious by the mother country was boldly pre- 
 sented. The first blood was shed at Lexington, where British soldiers 
 fled before American militia. Emboldened by success, they reduced two 
 forts, took Montreal, and attempted Quebec. Nor was England idle in 
 the struggle. An addition to the land and sea force was voted ; loans 
 were raised ; reinforcements were ordered to Boston ; and the military 
 ardor which had seized the Americans found fuel on which to expend 
 itself. 
 
 With fire-arms formed by themselves ; with weapons wrought from the 
 plough ; with artillery so clumsily fashioned that it burst more often than 
 it discharged ; with men who had only the determination to die free 
 rather than live bond, — the American generals beat the veteran troops 
 of England. Her forts were taken, her forces surrounded, her armies 
 destroyed, and her officers made prisoners. The principal powers of 
 Europe looked with delight upon a struggle between the soldiers of the 
 mother country and the raw recruits of the colony ; between discipline 
 on the one side and patriotism on the other ; on the entire power of Eng- 
 land baffled by men from the pen and from the plough, from the shop 
 and from the counting-house. The loans of this disastrous period were 
 most unpopular. The increased taxation which followed was drawn with 
 the utmost difficulty from the pockets of the people. 
 
 Political misfortunes and military disasters made the subjugation of 
 America chimerical. Earl Cornwallis surrendered himself and his army 
 as prisoners of war ; and when the contest was extended to Europe, — 
 when England stood alone against Holland, France, Spain, and America, 
 — when our navy was defeated, — when the English coast and harbors 
 were insulted, our West India Islands ravaged, and our trade swept 
 away, — the discontents of the country increased, and the debates in the 
 House grew violent and acrimonious. " You sheathe your sword, not in 
 its scabbard, but in the bowels of your countrymen," said one ; and on 
 some unhappy boast of driving the Americans into the sea, — "I might 
 as well," said Lord Chatham, " think of driving them with my crutch." 
 The people grumbled at defeat following defeat, at trade crippled, at 
 taxes augmented, and debts enlarged. 
 
 43 
 
New Loans in 1778. 
 
 Loan succeeded loan ; a cry arose about the corruption of contracts ; 
 and the feeling of discontent increased so strongly, that the stubborn 
 obstinacy of the king, who said he would sooner lose his right arm than 
 his colonies, was compelled to yield to a unanimous resolution of the 
 Commons, that the House would consider as enemies all those who ad- 
 vised the continuance of the war. Had any other monarch sat upon 
 the throne, the large accumulation of debt would, probably, have been 
 avoided ; and England would now be spared the painful task of looking 
 back upon " a nation convulsed by faction ; a throne assailed by the 
 fiercest invective ; a House of Commons hated and despised ; a rival 
 legislature sitting beyond the Atlantic ; English blood shed by English 
 bayonets ; our armies capitulating ; our conquests wrested from us ; our 
 enemies hastening to take vengeance upon us for past humiliations ; and 
 our flag scarcely able to maintain itself in our own seas." 
 
 Such was the aspect of public aflfairs during a war which cost thirty- 
 two millions in taxes, and added one hundred and four millions to the 
 national debt. 
 
 In 1778, when a loan was proposed, the usual number of applications 
 was delivered from the bankers, merchants, and members of the Stock 
 Exchange. To their surprise the answers were not received so soon as 
 usual ; and, as political events were threatening, the applicants grew 
 anxious. The funds fell greatly ; and, when the replies came, it was 
 found that the whole of this unfortunate loan was fixed upon them. Had 
 the funds risen, the members and the minister's friends would have had a 
 good portion ; but, as the scrip was sure to be at a discount of three per 
 cent., the whole was divided among those who were either without interest 
 or were opposed to the government. In 1781, on a new loan being pro- 
 posed, the same houses applied ; but as the scrip went to a premium, it 
 was divided with due regard to senatorial interests ; and many who had 
 ost on the last loan had no opportunity of retrieving on the present. 
 
 Prior to the allotment, one firm was waited on by a stranger, and told, 
 ihat, if they would add his name to their list, they would be favorably 
 considered. The house declined the proposal, and sent in a tender for 
 two millions ; when, to their surprise, they received, with an allotment of 
 ^560,000, an intimation that the odd <£ 60,000 was for the gentleman 
 who had waited on them, and of whom they knew nothing. 
 
 £ 240,000 was nominally given to another house ; but of this <£ 200,000 
 was for members whose votes were desirable. Mr. Dent, the head of the 
 house of Child, and a senator, received £ 500,000, being two thirds of 
 his tender ; while Drummonds and other bankers, not members, received 
 only tenths and sixteenths of the sums they requested. Some applicants, 
 without Parliamentary interest, though as good as any in the city, were 
 totally neglected, while " to a number of mendicants," said Mr. Fox, 
 " obscure persons, and nominal people, were given large amounts." 
 
 The mendicants and obscure people, thus politely alluded to by the 
 great gambler, were the Treasury and Bank clerks, to whom a portion of 
 the loan was usually presented as a compliment for their services. 
 
 It is curious to notice the increase of applications for the loans so con- 
 stantly required. Thus, in 1778 only 240 persons applied ; in 1779 the 
 
 44 
 
The First Lottery. 
 
 number increased to 600; in 1780, to 1,100; and in 1781 it reached 
 1,600. 
 
 In 1785, Mr. Atkinson, said to be an adventurer from the North, was a 
 great speculator. That he acted with judgment may be gathered frorn^ 
 the fact of his dying possessed of half a million. A curious, but not a 
 parsimonious man, he occasionally performed eccentric actions. During 
 one of the pauses in a dinner conversation, he suddenly turned to a lady 
 by whom he sat, and said, " If you, madam, will trust me with £ 1,000 
 for three years, I will employ it advantageously." The character of the 
 speaker was known ; the offer so frankly made was as frankly accepted ; 
 and in three years, to the very day, Mr. Atkinson waited on the lady with 
 £ 10,000, to which amount the sagacity of the citizen had increased the 
 sum intrusted to him. 
 
 It is probable, although the fact is difficult of attainment, that the lives 
 of the members of the Stock Exchange are, at the present day, less 
 valuable than the ordinary average of human life. The constant thought, 
 the change from hope to fear, the nights broken by expresses, the days 
 excited by changes, must necessarily produce an unfavorable effect upon 
 the frame. Instances, however, of great longevity are not wanting ; and 
 one John Riva, who, after an active Ufe in 'Change Alley, had retired to 
 Venice, died there at the patriarchal age of one hundred and eighteen. 
 
 % CHAPTER VIII. 
 
 Invention of Lotteries. — The First Lottery. — Employed hy the State. — Great 
 Increase. — Eagerness to subscribe. — Evils of Lotteries. — Suicide through 
 them. — Superstition. — Insurances. — Spread of Gambling. — Promises of 
 Lotteries. — Humorous Episodes. — Legal Interference. — Parliamentary Re- 
 port. — Lottery Drawing. — Picture of Morocco Men. — Their Great Evil. — 
 Lottery Puffing. — Epitaph on a Chancellor. — Abolition of Lotteries. 
 
 The history of lotteries is one of those anomalies which it is the duty 
 rather than the pleasure of the annalist to record. A minute picture, 
 however, of the progress of these institutions, is as necessary to the 
 financial annals of the Stock Exchange as it is to the development of the 
 social history of a people. Invented by the Romans to enliven their fes- 
 tivities, they were to that luxurious people a new excitement ; and the 
 prizes distributed to their guests were in proportion to the grandeur of the 
 giver. Fine estates, magnificent vases, and beautiful slaves, with other 
 and less expensive prizes, gratified at once the pride of the founder and 
 the cupidity of the guest. 
 
 The application, however, of lotteries to the service of a state origi- 
 nated at Genoa, the government of which established the principle for 
 its own benefit. The Church was not long in following the example 
 at Rome, where the inhabitants deprived themselves of necessaries to 
 
 45 
 
State Lotteries. 
 
 share the chances which their excited imaginations magnified a hundred- 
 fold. 
 
 The first on record in England was drawn in 1569. The harbors 
 and havens of the whole line of coast were out of repair, and the only 
 mode of procuring money was by lottery. The prizes were partly in 
 money and partly in silver plate, and the profits to be applied to the above 
 purpose. But the drawing was a very important task ; and, as 400,000 
 lots were to be drawn, night and day for nearly four months were the 
 people kept in a state of excitement. The time occupied must have been 
 somewhat tedious ; and, as this was the first lottery, and there were but 
 three offices in London, it is to be supposed that the drawing of that 
 period bore the same proportion to the drawing at a later time, that the 
 coaches then bore to the railroads now. In 1612, another lottery was 
 allowed for the benefit of the Virginia colonies, in which a tailor gained 
 the largest prize of 4,000 crowns. But thus early was it found that lot- 
 teries and demoralization went hand in hand. Sanctioned by the state 
 as a source of gain, they were found equally profitable to private indi- 
 viduals ; and the town teemed with schemes which brought wretchedness 
 and ruin in their train. In March, 1620, however, they were suspended 
 by an Order in Council ; but it was only a suspension, and the evil was 
 once more revived by Charles I., who, to assist a project of conveying 
 water to London, granted a lotteiy towards its expenses. That which 
 the first Charles allowed for so great a purpose, the second of the name 
 allowed as a boon to those whom he could reward in no other way. It 
 was in vain for censors to preach, divines to sermonize, or the House of 
 Commons to legislate. While there was the chance of a great gain for a 
 small risk, men ran in crowds to subscribe. Those who could not pay a 
 large sum found plenty of opportunities to gamble for a small amount, 
 and penny lotteries became common.* In 1694 they were again em- 
 ployed by the state, William III. having appealed to the propensities of the 
 people, and raised one million by the sale of lottery -tickets, the prizes of 
 which were funded at four per cent, for sixteen years. The voice of the 
 moralist continued to be raised ; and the public papers show, that, directly 
 the state sanctioned the nuisance, the evil increased tenfold, and that 
 schemes were introduced which were a loss to all save the promoters. 
 " What a run of lotteries we have had ! " says one. " With what haste 
 they all put in their money ! What golden promises they made ! " 
 
 The anecdotes connected with these abominations, the grim, grotesque 
 despair of the losers, and the eager delight of the gainers, was for the 
 time the great entertainment of the town. Men ran with eager haste 
 after the lotteries of merchandise ; and " the people were tickled," says 
 a pamphleteer, " with the proposals of prodigious profits, when the pro- 
 
 * Mr. J. B. Heath says of the early lotteries, in his valuable volume entitled " Some 
 Account of the Grocers' Company, — " There is not one entry in the accounts to 
 show that the prizes were ever paid," and quotes various documents to prove that 
 they were very difficult to procure. " The science of puffing," adds this gentleman, 
 " which in our times has attained such perfection, was unknown at that period, and in 
 lieu of placards and advertisements, the more direct mode was adopted of personal 
 solicitation." 
 
 46 
 
Lottery Gambling. 
 
 posers intended it only for themselves." The writer concludes somewhat 
 vehemently: — "Indeed, the people have been so damnably cheated, 
 they have no need of dissuading, and their own sufferings are sufficient 
 to convince them it is their interest to forbear." ^ -^ 
 
 The system of lotteries sanctioned and employed by the legislature 
 was a terrible temptation to human nature. The chance, however re- 
 mote, of gaining a large sum by a small risk, with the feeling of anxious 
 and not unpleasing excitement, rendered lotteries a favorite phase of 
 English gambling ; for the voice of the people had not spoken so per- 
 emptorily the great truth, that the state must not purchase a nation's 
 wealth at the price of a nation's morals. That which a government em- 
 ploys as an instrument of wealth, is sure to be followed by the people to 
 a lower extent, but in a more mischievous manner. In 1772, lottery 
 magazine proprietors, lottery tailors, lottery stay-makers, lottery glovers, 
 lottery hat-makers, lottery tea merchants, lottery snuff-and-tobacco mer- 
 chants, lottery barbers, — where a man, for being shaved and paying 
 threepence, stood a chance of receiving £ 10, — lottery shoe-blacks, 
 lottery eating-houses, — where, for sixpence, a plate of meat and the 
 chance of sixty guineas was given, — lottery oyster-stalls, — where three- 
 pence gave a supply of oysters and a remote chance of five guineas, — 
 were plentiful ; and, to complete a catalogue which speaks volumes, at a 
 sausage-stall in a narrow alley was the important intimation written up, 
 that for one farthing's worth of sausages, the fortunate purchaser might 
 realize a capital of five shillings. Quack doctors — a class which formed 
 so peculiar a feature in village life of old — sold medicine at a high price, 
 giving those who purchased it tickets in a lottery purporting to contain 
 silver and other valuable prizes. 
 
 The eagerness of the populace grew with the opportunity. The news- 
 papers teemed with proposals ; and the rage for gambling reigned uncon- 
 trolled. Every ravenous adventurer who could collect a few articles 
 advertised a lottery. Shopkeepers, compelled by the decrease of busi- 
 ness, took the hint, and disposed of their goods in lottery. Ordinary 
 business among the lower tradesmen was greatly suspended. Purchasers 
 refused to give the full price for that which might be obtained for nothing. 
 Large profits were procured upon worthless articles ; and in 1709, so 
 great was the eagerness to subscribe to a state lottery, that Mercers' Hall 
 was literally crowded with customers, and the clerks were insufficient to 
 record the influx of names. It was, however, from those which were 
 termed " little goes," — which drew the last penny from the pockets of 
 the poor man, — which saw the father gambling and the daughter starv- 
 ing, the mother purchasing tickets and the child crying for bread, — that 
 most evil arose. The magistracy, not always the first to interfere, grew 
 alarmed, and announced their determination to put in practice the penal- 
 ties which, if earlier enforced, would have been beneficial, but, unhap- 
 pily, were incompetent to put down that which they might easily have 
 prevented. It was found, also, impossible to restrain in private adven- 
 turers the wrong that the state sanctioned in public. 
 
 It was known that lotteries were injurious to morals and to manners ; 
 it was known that crime followed in their wake ; it was known that mis- 
 
 47 
 
Lottery Suicides. 
 
 ery and misfortune were their attendants ; but the knowledge was vain, 
 and remonstrance useless, under the plea of the necessities of the state. 
 
 Lotteries continued to be employed by ministers as an engine to draw 
 money from the pockets of the people, at a price alike disgraceful to the 
 government and demoralizing to all. The extent to which the evil had 
 reached may be inferred from the fact, that money was lent on these as 
 on any other marketable security ; that, in 1751, upwards of 30,000 
 tickets were pawned to the metropolitan bankers ; and this, when, to have 
 an even chance for any prize, a purchaser must have held seven tickets ; 
 and it was ninety-nine to one that, even if a prize were drawn, it did not 
 exceed £ 50. 
 
 Suicide through lotteries became common. The streets swarmed with 
 unhappy wretches, who, while they suffered for the past, were making 
 imaginary combinations for the future. All arts were resorted to. Lucky 
 numbers were foretold by cunning women, who, when their art failed, 
 shrouded themselves in their mysticism ; and if fortune favored them, 
 paraded their prophecies to the public. 
 
 The most gross and revolting superstition was practised to discover 
 lucky numbers. Rites which surpassed the darkest imagination of a 
 Maturin, and ceremonies which appear like relics of the elder world, 
 were resorted to for the same purpose. 
 
 It was in vain that the smaller lotteries were put down ; they only gave 
 way to an evil which preyed upon the very vitals of English society. 
 Insurance, an art upon which hundreds grew rich, while hundreds of 
 thousands grew poor, was commenced with terrible success. Those 
 who were unable to buy tickets, paid a certain sum to receive a certain 
 amount if a particular number came up a prize. A plan like this was 
 available for all, as the amount could be varied to the means of the insurer. 
 
 It is almost impossible to describe the many iniquities, the household 
 desolation, the public fraud, and the private mischief, which resulted from 
 insuring. Wives committed domestic treachery ; sons and daughters ran 
 through their portions ; merchants risked the gains of honorable trade. 
 " My whole house," wrote one, " was infected with the lottery mania, 
 from the head of it down to my kitchen-maid and post-boy, who have 
 both pawned some of their rags that they might put themselves in for- 
 tune's way." The passions and prejudices of the sex were appealed to. 
 Lovers were to strew their paths with roses ; husbands were plentifully 
 promised, and beautiful children were to adorn their homes through the 
 lottery. And all these glories were promised when Adam Smith de- 
 clared, as an incontrovertible fact, that the world never had, and never 
 would, see a fair lottery. So great were the charms of insuring, while 
 the chances were so small, that respectable tradesmen, in defiance of the 
 law, met for this illegal purpose, on the following day to that on which 
 some of their body had been taken handcuffed before a magistrate. The 
 agents were spread in every country village, and the possession of a prize 
 was an absolute curse to the community. Its effects were witnessed 
 alike in the shock it gave to industry, and the love of gambling it spread 
 among the people. It is due to those whose voices were lifted up against 
 these abominations to say, that their appeals to the good feeling of the 
 
 48 
 
^ Effects upon the People. 
 
 government were incessant ; but the state replied in that language which 
 is so unanswerable when held by a firm government, that the necessities 
 of the state overbalanced the evils of the lottery. 
 
 Nor could ignorance be pleaded of its fatal effects. The domestics of_ 
 the senators themselves purchased shares with their masters' money ; 
 and members of the lower and upper house were unable to resist the 
 fascinations of the game they condemned. The most subtle language 
 was not wanting to support the cause. Scripture was used to defend it ; 
 and as the Bible was perverted by the supporters of the slave-trade, and 
 lately by the discoverers of the virtues of chloroform, so was it now 
 wrested to prove the antiquity and sanctity of lotteries. " By lot," they 
 said, " it was determined which of the goats should be offered to Aaron. 
 By lot the land of Canaan was divided. By lot Saul was marked out for 
 the kingdom. By lot Jonah was discovered to be the cause of the storm." 
 
 There are many incidents, which, recorded in contemporary annals, 
 have been either overlooked or disregarded as insignificant. There is, 
 however, nothing insignificant connected with so important a topic, and 
 nothing ought to be overlooked on an evil which has eaten to the very 
 heart of society, and which may again be used by some unscrupulous 
 minister for some unscrupulous purpose. The declaration of Sir Samuel 
 Romilly, that " whenever the House voted a lottery, they voted that the 
 deserving should become depraved," with the additional assertion, that 
 " the crimes committed would be chiefly bought off by the paltry gain to 
 the state coffers," was entirely disregarded. 
 
 Let it be remembered that a chancellor declared " he could not see 
 that lotteries led to gambling," — that though the Corporation of London 
 presented an earnest petition for their abolition, as injurious to commerce 
 and injurious to individuals, — that though Lord Mansfield said the state 
 exhibited the temptation and then punished for the crime to which it 
 tempted, — that though, on one occasion, out of twenty-two convicts who 
 left the country, eighteen commenced their career with insuring, — that 
 though forged notes were encouraged from the carelessness with which 
 lottery-ofl[ice keepers received and passed them, — that though it was 
 iterated and reiterated that no circumstances conduced so much to make 
 bad wives and bad husbands, bad children and bad servants, — that 
 though men threw themselves into the river from the infatuation of their 
 wives, — though the plate of respectable families was pledged to assist the 
 mania, — that though the poor-rates were increased, and the consump- 
 tion of excisable articles diminished, during the drawing, — that though 
 the gambling and lottery transactions of one individual only were pro- 
 ductive of from ten to fifteen suicides annually, — that though half a 
 million sterling yearly came from metropolitan servants, — that though 
 four hundred fraudulent lottery-offices were in London alone, — that 
 though no revenue was ever collected at so great an expense to the 
 people, — that though families pawned every thing they had, sold the 
 duplicates, and were reduced to poverty, — that though women forgot the 
 sanctities of their sex, — that though the parishes were crowded with 
 applicants who had reduced themselves by insurances, — that though 
 perjury was common, and small annuitants squandered their resources, 
 5 49 
 
Morocco Men. 
 
 — that although all these pictures were drawn, and statements made, so 
 publicly and so prominently that they could not fail to reach even the 
 obtuse ears of a dominant ministry, — yet it was not until 1826 that 
 the evil was abolished. A similar pressure may recall the evil. It is of 
 no importance to argue that lotteries are forbidden, and that the morals 
 and the minds of the people are more regarded. Lotteries have been 
 repeatedly forbidden, but they have been invariably renewed when the 
 coffers of the state were low ; and the morals of the people are a minor 
 point compared with the balance-sheet of the nation. 
 
 The melancholy history was occasionally enlivened by episodes, which 
 sometimes arose from the humor, and sometimes from the sufferings of 
 the populace. It is recorded as a fact, that, to procure the aid of the- 
 blind deity, a woman to whom a ticket had been presented caused a peti- 
 tion to be put up in church, in the following words : — " The prayers of 
 the congregation are desired for the success of a person engaged in a new 
 undertaking "; a singular contrast to others, who sought the midnight 
 gloom of a church-yard to secure them the good fortune so eagerly craved. 
 Romantic incidents often checkered the history. Old bureaus with se- 
 cret drawers, containing the magic papers which led to an almost magic 
 fortune, were purchased of brokers, or descended as heirlooms. 
 
 The evils in country places were more vividly impressed on the mind 
 from the smallness of the population. In a village near town, a benefit- 
 club for the support of aged and infirm persons existed for many years. 
 Among the members was one who, in tiying his luck, gained £ 3,000. 
 The effect was feverish and fatal to the peace of the little community. 
 The society formed to nourish the sick and clothe the needy, was con- 
 verted into a lottery-club. The quiet village, which had hitherto vege- 
 tated in blessed peacefulness, rang with the sound of prizes, sixteenths, 
 and insurances. People carried their furniture to the pawnbrokers, while 
 others took their bedclothes in the depth of winter to the same source. 
 The money thus procured was thrown away upon lotteries ; and the 
 prize of <^ 3,000 was destructive to the happiness of the place. 
 
 Up to the year 1780, although these many evils were well known, 
 insurances, and every species of gambling connected with the lottery, 
 were legal. But the malady grew so violent, that, after much urging, a 
 step was taken in the right direction. Insurances were declared illegal, 
 and prohibited under very heavy penalties. So many, however, were 
 imprisoned, — and perjury was not wanting for the sake of the penalty, — 
 that some check was necessary. A law, therefore, was made, preventing 
 any one from suing save the Attorney-General ; and some idea may be 
 formed of the extent of the evil from the fact, that, between 1793 and 
 1802, upwards of one thousand were punished with imprisonment. But 
 the determination to insure surpassed the determination to punish. The 
 officers of government were absolutely defied. Blood, in defence of that 
 which the law declared illegal, was freely shed. So organized was the 
 system, that two thousand clerks, and seven thousand five hundred per- 
 sons known as " Morocco men," with a numerous staff of armed ruffians, 
 were attached to the insurance-offices. Committees were held three 
 times a week ; measures were invented to defeat the magistrates ; money 
 
 50 
 
Parliamentary Report^ 1805. 
 
 to an enormous extent was used to bribe the constabulary ; while to those 
 who refused to be bribed, a bold and insolent defiance was offered, with 
 threats, which the officers well knew would be executed at the risk, or 
 even the certain sacrifice, of life. ~ 
 
 In 1805, Parliament again took cognizance of the evil. The reiterated 
 declarations of the press, the repeated assertion of members of the sen- 
 ate, the universal voice of the country, coupled with the notorious fact, 
 that crime continued to follow the system, compelled government to ap- 
 point a committee of the House to report upon it. The attendance of all 
 who could give any information upon the subject was required, and a 
 volume of evidence printed, which, though it must have opened the eyes, 
 could not open the hearts, of the ministers. 
 
 Time, instead of softening or subduing the misery, had extended its 
 ramifications into the highest, as it once had been confined to the lowest, 
 society. The middle class — ordinarily supposed to be freest from vice 
 — had gradually succumbed. The penniless miscreant of one day be- 
 came the opulent gambler of the next ; and the drawing of the lotteries 
 might be marked by the aspect of the pawnbrokers' shops, which over- 
 flowed with the goods of the laborer, with the ornaments of the middle 
 class, and with the jewels of the rich. Servants went to distant places 
 with the purloined property of their masters, pledged it, and, destroying 
 the tickets, insured in the lottery. Manufacturers discharged those 
 workmen who could not resist the temptation. During the drawing of 
 the prizes less labor was done by the artisans. Housekeepers of the 
 lower order were unable to pay their taxes ; money was begged from 
 benevolent societies ; and men, pretending they were penniless, were fed 
 and housed by the parish while embarking in these chimerical schemes. 
 Felons, on the morning of an ignominious death, named lotteries as the 
 first cause ; and often, if a dream pointed to a particular number, crimes 
 were committed to procure it, which led to transportation instead of for- 
 tune. Individuals presented themselves to insure, with such unequiv- 
 ocal marks of poverty in their appearance, that even the office-keepers 
 refused their money ; and yet, such was the indefatigable love of adven- 
 ture, that many would come in at one door as fast as they were shown 
 out at the other. 
 
 " When I have caught a great many in a room together," said one 
 witness, " I have found most of them poor women, and in their pockets 
 twenty or thirty, and even sixty, duplicates on one person. Their pillows, 
 their bolsters, their very clothes, were pledged, till they were almost 
 naked." 
 
 " First," said Mr. Sheridan, " they pawned ornaments and superfluities, 
 then their beds, the very clasps of their children's shoes, the very clothes 
 of the cradle. The pawnbroker grew ashamed of his profession." 
 
 A walk near the spot where the prizes were announced painfully 
 evinced the progress this terrible delusion had made, and the classes to 
 which it had extended. 
 
 Hundreds of wretched persons, the refuse of society, the very dregs of 
 the people, might be seen waiting with frightful eagerness until their fate 
 was decided. The courtesan was there, forgetting for a time her avowed 
 
 51 
 
Lamentable Effects of Lotteries. 
 
 pursuit ; the man who the night before had committed some great crime ; 
 the pale artisan with his attenuated wife ; the girl just verging upon 
 womanhood ; the maid-servant, who had procured a holiday to watch her 
 fortune ; weary forms and haggard faces, mingling with the more robust 
 and ruffianly aspects, — yet all bearing one peculiarity, that of intense 
 anxiety, — marked the purlieus of the place where the lottery was drawn. 
 The oath which shocked the ear, the act which shocked the eye, the 
 scurrilous language of the boy ripe in mature iniquity, the scream of the 
 child dragged from its rest, to mingle in scenes it could not compre- 
 hend, formed a pictorial group which Hogarth alone could have given to 
 posterity, as an evidence of civilization in the nineteenth century. 
 
 But it has been said, that the mischief was not confined to the poorer 
 classes. Persons of the first consequence entered into insurances for a 
 great amount. Instances are not wanting, in which gentlemen of large 
 landed property, guilty of no other extravagance, lost all their cash, sold 
 their estates, and died in the poor-house. 
 
 The " Morocco men," so called from the red morocco pocket-books 
 which they carried, were remarkable features in the lottery, half a century 
 ago. They began their lives as pigeons, they closed them as rooks. 
 They had lost their own fortunes in their youth, they lost those of others 
 in their age. Generally educated, and of bland manners, a mixture of 
 the gentleman and the debauchee, they easily penetrated into the society 
 they sought to destroy. They were seen in the deepest alleys of Saint 
 Giles, and were met in the fairest scenes of England. In the old hall 
 of the country gentleman, in the mansion of the city merchant, in the 
 butlery of the rural squire, in the homestead of the farmer, among the 
 reapers as they worked on the hill-side, with the peasant as he rested 
 from his daily toil, addressing all with specious promises, and telling 
 lies like truth, was the morocco man found, treading alike the finest and 
 the foulest scenes of society. They whispered temptation to the inno- 
 cent ; they hinted at fraud to the novice ; they lured the youthful ; they 
 excited the aged ; and no place was so pure, and no spot so degraded, 
 but, for love of 7| per cent., did the morocco man mark it with his pes- 
 tilential presence. No valley was so lonely, but what it found some vic- 
 tim ; no hill so remote, but what it offered some chance ; and so enticing 
 were their manners, that their presence was sought, and their appearance 
 welcomed, with all the eagerness of avarice. 
 
 And little were they who dealt with these persons aware of the charac- 
 ters with whom they trafficked. Of bland behaviour, but gross habits, 
 the nature of their influence on the unpolluted minds with which they 
 had to deal may be judged from the fact, that some of the morocco men 
 ended their days at Tyburn ; that transportation was the doom of others ; 
 and that the pillory was the frequent occupation of many. To such men 
 as these were the morals of the people exposed through the lottery. 
 Nor, if the. opinion of a member of the senate can be trusted, was the 
 lottery-office keeper much better. " I know of no class of persons in the 
 country," said Mr. Littleton, " excepting hangmen and informers, on 
 whom I should be less disposed to bestow one word of commendation." 
 
 The wonder is, not that the public was tempted so much, but that it was 
 
 52 
 
Nicholas Vansittart, 
 
 seduced so little. Puffing, by the side of which the power of a Mechi 
 and a Moses waxes dim, was employed to assist the contractor. Myriads 
 of advertisements were circulated in the streets. The newspapers, under 
 all forms and phases, contained stories of wonderful prizes. Horns were^ 
 sounded ; huge placards displayed ; false and seductive lures held out ; 
 houses hired for the sole purpose of displaying bills ; falsehoods fresh 
 every day ; and fortunes to be had for nothing. Puffs, paragraphs, and 
 papers circulated wherever the ingenuity of man could contrive. The 
 public thoroughfares were blazoned by day and lighted by night with 
 advertisements. 
 
 With such a picture of crime as has been presented to the reader, he 
 may not think the quiet satire of Mr. Parnell on the Chancellor unmerit- 
 ed. He said that the following epitaph ought to be placed on his grave : — 
 
 " Here lies the Right Honorable Nicholas Vansittart, once Chancellor 
 of the Exchequer, who patronized Bible Societies, built churches, en- 
 couraged savings' banks, and supported lotteries." 
 
 The attention bestowed on the subject, the mass of intelligence col- 
 lected, the evidence given by competent parties, produced considerable 
 notice, and the report condemned the evil the committee had examined. 
 
 " The foundation of the lottery," it said, " is so radically vicious, that 
 under no system can it become an efficient source of gain, and yet be 
 divested of the evils and calamities of which it has proved so baneful a 
 source. 
 
 " Idleness, dissipation, and poverty are increased ; sacred and con- 
 fidential trusts are betrayed ; domestic comfort is destroyed ; madness 
 often created ; crimes subjecting the perpetrators to death are committed. 
 
 " No mode of raising money appears so burdensome, so pernicious, 
 and so unproductive. No species of adventure is known where the 
 chances are so great against the adventurers ; none where the infatuation 
 is more powerful, lasting, and destructive. 
 
 " In the lower classes of society, the persons engaged are, generally 
 speaking, either immediately or ultimately tempted to their ruin ; and 
 there is scarcely any condition of life so destitute and so abandoned, that 
 its distresses have not been aggravated by this allurement to gambling." 
 
 Notwithstanding the strong nature of this report, the labors of the com- 
 mittee were fruitless. Various attempts at amelioration were made, but 
 the evil was not finally abolished until the year 1826. 
 
 53 
 
Life Insurance, 
 
 CHAPTER IX. 
 
 Wholesale Jobbing. — Insurance on Sick Men. — False Intelligence. — Uselessness 
 of Sir John Barnard^ s Act. — Origin of the Blackboard. — Opposition to 
 Loans. — Lord Chatham'' s Opinion of Jobbers. — Inviolability of English 
 Funds. — Parisian Banking-Houses. — Proposition to pay off the National 
 Debt. — Extravagance of the Contractors. — Lord George Gordon'' s Opinion 
 of them. — Members^ Contracts. — New System adopted. — Abraham Gold- 
 smid. — Bankers^ Coalition broken by him. — His Munificence. — His Death. 
 — Sensation in the City. 
 
 The following picture of wholesale jobbing, drawn from public and 
 private documents, from correspondence, from newspapers, and from 
 Parliamentary history, will show that gambling was equally pursued in 
 high places as in 'Change Alley. 
 
 Letters from abroad, containing false intelligence, were forwarded to, 
 or forged by, senators ; names of importance were fraudulently used ; 
 the news was promulgated, and funds raised or lowered according to the 
 wish of the contriver. But if the jobber was cheated in one way, he 
 took his revenge in another. The domestics of public men were bribed 
 by him ; the secretaries of men in office were paid by him ; the mistresses 
 of ministers were accessible to him ; and, it is said, even their wives were 
 not seldom in the pay of members of the Stock Exchange. Nor did 
 many hesitate to declare that men in office not only made profit of the 
 news they really received, but that they promulgated false intelligence, 
 knowing, from their position, it would be received as true, at the expense 
 of their own character, and to the ruin of the men who trusted them. 
 
 Another practice had obtained a notoriety so bad and baleful, that it 
 became necessary to stop its progress. Directly it was known that any 
 great man was seriously ill, insurances on his life, at rates in proportion 
 to his chance of recovery, were made. These bargains were reported in 
 the papers ; and the effect on an invalid who knew his health to be pre- 
 carious may be imagined, when he saw in the Whitehall Evening Post., 
 
 that " Lord might be considered in great danger, as his life could 
 
 only be insured in the Alley at ninety per cent." The custom grew so 
 rapidly, and the evil was so serious, that the principal merchants and un- 
 derwriters refused to transact business with brokers who engaged in such 
 practices. 
 
 Of a less questionable character was the habit of insuring property in 
 any besieged city ; or the yet more common mode of paying a premium 
 to receive a certain sum, should the city be taken by the day named in the 
 contract. The Spanish ambassador was accused of insuring £ 30,000 on 
 Minorca, during the seven years' war, when the despatches announcing 
 its capture were in his pocket. 
 
 The newspapers were the vehicles generally employed to spread false 
 intelligence ; and an almost invariable success attended those who made 
 
 54 
 
Origin of the Blackboard. 
 
 use of the press to promulgate, in bold type and inflated language, 
 " bloody engagement," " rumored invasion," or " great victory," to 
 assist their city operations. Every class, from the maiden who jobbed 
 her lottery-ticket, to the minister who jobbed his intelligence, was in- 
 volved in the pursuit. All these bargains were for time, and continued 
 to prove that the act by which Sir John Barnard hoped to abolish gam- 
 bling was useless ; and it is an anomaly in the history of our great debt, 
 that bargains in the very funds which were raised to support the national 
 credit are disallowed by the national legislature. It is a law which has 
 been tried and found wanting. It does not prevent, in the smallest or 
 slightest degree, the system it was meant to crush ; and it adds to the 
 immorality of the speculator and the risk of the broker, by allowing the 
 former to repudiate his bargain at the expense of the latter. 
 
 Under the early loan-acts, tallies were delivered to the first contractors. 
 When a sale was effected, the name of the purchaser was indorsed upon 
 the tally, and from that entered into the government books, for the con- 
 venience of paying the dividends to the right person. This clumsy ma- 
 chinery was afterwards abolished ; but though, in 1717, the transfers and 
 dividends of the national debt were first undertaken by the Bank, it was 
 not until 1783 that the present method of transfer was adopted. 
 
 The origin of the blackboard — that moral pillory — of the Stock Ex- 
 change occurred in 1787. " There were no less than twenty-five lame 
 ducks," said the Whitehall Evening Post, " who waddled out of the 
 Alley." Their deficiency was estimated at £ 250,000 ; and it was upon 
 this occasion the above plan was first proposed, and a very full meeting 
 resolved, that those who did not either pay their deficiencies or name 
 their principals should be publicly exposed on a blackboard to be ordered 
 for the occasion. Thus the above deficiencies — larger than had been 
 previously known — alarmed the gentlemen of 'Change Alley, and pro- 
 duced that system which is yet regarded with wholesome awe. 
 
 During the administration of Mr. Pitt, in 1786, a sinking fund was 
 again attempted ; the various branches of revenue being united under the 
 title of the Consolidated Fund. One million was annually taken from it, 
 and placed in the hands of the Commissioners for the Redemption of the 
 National Debt, and was applied in purchasing such funds as might be 
 deemed expedient at the prices of the day. The interest of the debt thus 
 redeemed, the life-annuities which fell in, or the annuities which expired, 
 were added to the fund, the interest of which, when the principal amount- 
 ed to four millions, was no longer to be applied to it, but remain at the 
 disposal of Parliament. 
 
 The difficulties which every minister met in every new loan, were 
 more in proportion to the power of the opposition, than to the fairness or 
 necessity of the demand. In unpopular wars, these difficulties were 
 doubly increased. In the American contest, the whole population de- 
 manded peace ; and nothing but the obstinacy of " the best farmer and 
 worst king," — nothing but a corrupt Parliament, wholesale places, a dom- 
 inant aristocracy, and large premiums to the moneyed interest, — could 
 have carried Lord North through the session, enlivened by his humor, 
 and the enmity created by the war. The loans, therefore, of this period 
 
 55 
 
Loansofmd- 80. 
 
 were fiercely attacked ; 'Change Alley fiercely denounced ; and the 
 plans of the government hotly contested. The mode of conducting the 
 loans was then, as before, made conducive to the majority of the minis- 
 try, at the expense of the people. Out of 60,000 lottery-tickets, 22,000 
 were given to a few members, producing £ 44,000 profit. When the 
 system was attacked, precedent, the bane of official people, was quoted ; 
 and because it was known that, in 1763, Mr. Fox had .£100,000, 
 Mr. Calcraft and Mr. Drummond .£70,000, the Governor of the Bank 
 £ 150,000 for the corporation, and £ 50,000 for himself, and other 
 members similar sums, it was deemed a sufficient and an unanswerable 
 defence. But though by such methods the minister got the votes of the 
 House, he found it more difficult to get the money from the public after 
 it was voted. In 1779, he was greatly troubled to procure it on reason- 
 able terms. From bankers he went to contractors, from contractors to 
 stock-jobbers, and from stock-jobbers he went back to the bankers, pay- 
 ing a much higher rate than they at first demanded. " It was but yes- 
 terday," writes Horace Walpole, " that Lord North could tell the House 
 he had got the money on the loan, and is happy to get it under eight per 
 cent." The loan of 1780 brought them again into disrepute. Half was 
 given to members of the House of Commons ; more than three mil- 
 lions was allotted to one person ; and, without regard to the welfare of 
 the nation, the price was determined at a rate so favorable to the con- 
 tractors, that, from no cause save the low terms on which it had been 
 taken, the scrip arose at once to eleven premium. In 1781, it was said 
 that Lord North had made an infamous bargain in a bungling manner ; 
 and that, in 1782, he had made a bungling bargain in an infamous man- 
 ner ; and this was solemnly protested against as an improvident opera- 
 tion, a corrupt job, and a partial distribution. There cannot be a doubt 
 that the mode of conducting these loans was detrimental to the national 
 interest, and conducive to that of the Stock Exchange. There were 
 three plans up to this period. The first was in the oflfers of private indi- 
 viduals, stating the sum each would advance ; the second was an open 
 subscription at the treasury; and the third a close subscription with a 
 few. By the first, the members of Parliament were bribed ; and by the 
 third, the bankers ; then the principal contractors were enriched. Their 
 interest, and it was great, with their votes in the House, and they were 
 many, were, therefore, at the disposal of the government. In 1783, out 
 of a loan for ^12,000,000, ^7,700,000 were given, to bankers. So 
 disgraceful was the whole affair, that Lord John Cavendish was compelled 
 to apologize for the terms on which it had been granted, because " the 
 former minister had left the treasury without a shilling." By attempting 
 to please men of all parties. Lord John, as usual, pleased none. He was 
 abused by some for dividing it among so small a number ; he was rated 
 by others for allowing so many to have a share. Mr. Smith, of the house 
 of Smith & Payne, made a formal complaint that he had been neglect- 
 ed in the allotment ; that his firm was the only one left out ; and that, in 
 consequence, a stigma of a very disagreeable character was attached to 
 it. By the explanation, it appeared that another house of the same name 
 had been accused of tempting customers from the various bankers, by 
 
 56 
 
Lord ChathanCs Opinions. 
 
 giving portions of the loan to those who would secede. The meanness 
 had been attributed to Smith, Payne, & Co., and Lord John omitted 
 them in consequence from his list. Mr. Smith was very irate on the sub- 
 ject ; and although his Lordship explained, as the explanation was unac^ f 
 companied by a share of the loan, it was, probably, very unacceptable to .' ^ 
 the indignant banker. Although this gentleman saw no harm in receiv- 
 ing a portion of the loan, other bankers had higher views. Mr. Martin, .„^ 
 believing that, as a senator, he ought not to contract, lest it might bias his 
 votes, conscientiously refused to accept any portion of loan or contract ; 
 and thus sacrificed his pocket to his principle. 
 
 When jobbing occurred in the senate, who can wonder at the jobbing 
 in the funds, or at the strong feeling which such contemptible squabbling 
 created, and which fell upon the members of the House of 'Change as 
 fiercely as on the members of the House of Commons } 
 
 " Such gentry," said one, " coin disaster to sink the funds without 
 cause. If gospels mended mankind, there should have been a new ser- 
 mon preached on the mount, since 'Change Alley was built, and money- 
 changers were driven out of the temple all over Europe." " Ten thou- 
 sand lies are propagated every week, not only by both sides, but by 
 stock-jobbers. Those grave folks, moneyed citizens, contribute exceed- 
 ingly to embroil and confound history, which was not very authentic 
 before they were spawned." 
 
 Lord Chatham was not backward in expressing an opinion of those 
 whom he designated " the cannibals of 'Change Alley." " To me, my 
 Lords," he once said, " whether they be miserable jobbers of 'Change 
 Alley, or the lofty Asiatic plunderers of Leadenhall Street, they are 
 equally detestable." The same strong feeling animated him when he 
 was told that one of his measures had caused a decline in the stocks. 
 " When the funds are falling, we may be sure the credit of the country — — 
 is rising." 
 
 A finer spirit — and that spirit is the principle which has pervaded the 
 whole public transactions of England — was evinced when the same 
 nobleman was advised to retaliate on the Dutch merchants, — who had 
 committed several outrageous frauds on the English, — by seizing their 
 immense property in our funds. " If the Devil himself had money there," -.^ 
 he replied, " it must rest secure." To his Lordship, and to the political ^^^^ 
 assertion he made, that " not a gun should be fired in Europe without 
 England knowing why," it was of the utmost importance that the integ- 
 rity of the nation should be maintained. 
 
 During the American war, many of those in arms had property in the "^ 
 funds ; and the provinces, as bodies corporate, had money in the same ' 
 securities. It is to the credit of the revolutionists, that, though they fully 
 expected this property would be confiscated, they persisted in their 
 course ; and it is equally to the credit of England, that their capital was 
 as secure, and their interest as regularly paid, as if they were not in open ; 
 rebellion. '"~*''*^ 
 
 Not only in loans were the people wronged and robbed, — the word is 
 harsh, but expressive, — the contracts for the public service exhibited 
 also the most gross and glaring favoritism. From time to time the evil 
 
 57 
 
3Tr. Fox and Lord George Gordon. 
 
 was exposed ; Parliament grew violent, and the public waxed wroth. 
 Every quarter of a century, an inquiry was instituted, and the whole 
 ended partly in some influential person being disgraced, and partly in an 
 expression, that " the said frauds and abuses were one great occasion of 
 the heavy debt that lies upon the nation." A few specimens may serve 
 to indicate the wrongs which, from time to time, have aggrandized an un- 
 popular government, have swollen the pockets of the few, and increased 
 the wants of the many. 
 
 The borough-monger, who for years had been in possession of a 
 pocket borough, found his property disturbed, and bis constituents tam- 
 pered with, by the contractor, who, as a candidate for the honor of the 
 ibrum, was marked by vice, extravagance, and folly. As a member of 
 the senate, he assumed the purity of the patriot, complained of the ab- 
 sence of economy, and declared how much cheaper the public business 
 might be accomplished. He teased the minister ; he perplexed the Parlia- 
 ment ; he puzzled the government ; until, by giving him a job, the patriot 
 was turned into a contractor, and from that hour he marked the public 
 money as his own. If the First Lord of the Treasury were indolent, the 
 contractor availed himself of his sloth ; if ignorant, he taught him, and 
 made the country pay for the lesson. 
 
 The very name of a contractor was odious, and their luxuries were 
 bitter in the eyes of the people. Their abodes were like those of prin- 
 ces ; their daughters wedded with nobles ; the follies of their sons were 
 the talk of the town ; they died possessed of fortunes which kings might 
 envy ; and, as nearly all were members of Parliament, attention became 
 pointed at men whose mansions and whose manors, bought with public 
 money, challenged public notice. 
 
 " The minister," remarked Mr. Fox, " said to him, ' I will give you a 
 contract, if you will give me a vote.' The contractor replies, ' Now I 
 have given you a vote, give me a contract. I voted that we had forty- 
 two ships when we had but six, and that the French fleet did not consist 
 of thirty-two ships. You must not, therefore, quarrel for twopence a 
 gallon on rum, or a farthing on a loaf of bread.' " 
 
 Lord George Gordon, shortly before his extraordinary conduct in 1780, 
 said, — " This dunghill of contracts has given an ill air to our whole 
 proceedings. It has got abroad, and proves very offensive to the public 
 nostrils. Our constituents begin to smell a rat. They nose us in the 
 lobby, and call us tailors and shoemakers, cobblers and cabbage-salters, 
 potato forestallers, sour-krout makers, and swine contractors. The dig- 
 nity, reputation, and fair fame of the Commoners is smothered and sink- 
 ing in porter and salted cabbage, shoes, sour-krout, and potatoes." Lords 
 of trade ordered pewter inkstands by the hundred, sold them, and pur- 
 chased silver ones with the money they produced ; or ordered green 
 velvet bags for official papers, and employed the velvet of which they 
 were composed to make court dresses. 
 
 Under the Pelham administration, members received regular stipends 
 in bank-notes, from £ 500 to £ 800 yearly, varying according to the 
 influence or ability of the senator. " This largess I distributed," added 
 the person who took charge of the delicate department, — and the par- 
 
 58 
 
Bribes to Members. 
 
 ticalars are worth enumerating, — " in the court of requests on the day 
 of the prorogation of ParUament. I took my stand there ; and as the 
 gentlemen passed me, in going to or returning from the House, I con- 
 veyed the money in a squeeze of the hand. Whatever person received 
 the ministerial bounty, I entered his name in a book which was preserved 
 in the deepest secrecy, it being never inspected by any one but the king 
 and Mr. Pelham." This book was afterwards demanded of Mr. Rob- 
 erts, the almoner, but he resolutely refused to yield it except by the 
 king's express command, or to his Majesty in person. In consequence of 
 his refusal, the king sent for him to St. James's, where he was introduced 
 into the closet. He was then ordered to return the book in question, 
 with which injunction Mr. Roberts immediately complied. At the same 
 time, taking the poker in his hand, his Majesty put it into the fire, made 
 it red hot, and, while the ministers and Mr. Roberts stood round him, 
 he thrust the book into the flames, where it was immediately reduced to 
 ashes. 
 
 These evils were so manifest and manifold, that, after various attempts 
 to pass a measure which should be some check on government, a bill was 
 introduced, by which all contracts were made subject to a species of 
 auction, although the minister was not compelled to accept the lowest 
 ofFer. 
 
 During the debates which were held upon the subject, many other facts 
 were elicited, which confirm all the previous remarks, and prove the 
 iniquity with which the money of the country was disposed of. One 
 member possessed a contract producing £ 30,000 a year more than the 
 legitimate profit. Mr. Alderman Harley made £ 37,000 too much by 
 another. On a contract for remitting gold, ^35,000 was paid more than 
 was necessary. At an earlier period it was discovered, that, out of 16,000 
 tuns of beer contracted and paid for, only 7,000 tuns were delivered. 
 The rum contract was granted at fifty per cent, above a remunerating 
 price. The transport service paid twenty per cent, too much. Millions 
 were lying for years in the hands of favorite placemen, favorite agents, 
 and favorite contractors, while the country was borrowing at an exor- 
 bitant interest ; and, after a careful perusal of the evidence, there can be 
 no doubt that the charge of corrupting the House was true ; nor was it 
 in the nature of a member of Parliament in the eighteenth, any more than 
 in the nineteenth century, to possess profitable contracts, the continuation 
 of which depended on war, and yet speak honestly and earnestly for 
 peace. 
 
 The names of Abraham and Benjamin Goldsmid will recall to the 
 memory of many of our readers the forms and features of these mag- 
 nates of the money-market. Of singular capacity, and of equally sin- 
 /gular good fortune, the firm af which they were the members rose, from 
 comparative obscurity, to be the head and front of 'Change Alley. 
 
 Prior to 1792 they were little known, — Mr. Gurney, the eminent bill- 
 broker, regards them as his predecessors, — but by that year they occu- 
 pied an important position, and became successful competitors for the 
 national loans. They were the first members of the Stock Exchange 
 who competed with the bankers for the favors of the Chancellor, and 
 
 59 
 
Tlie Bankers^ Coalition. 
 
 diverted from their purses those profits which were scarcely a legitimate 
 portion of banking business. The combination of that interest being thus 
 broken, the bargains for public loans became more open ; there was no 
 confederation to limit and lower the prices ; and the ministry and country 
 reaped the benefit in improved terms. The house of Sir William Curtis, 
 whose fortunes were founded in this manner^ of Dorrien and of Boldero, 
 names which, great in their day, have almost passed from the roll of city 
 bankers ; of Grote, now better known as the philosophical historian of 
 Greece ; were all competitors, three quarters of a century ago, for those 
 loans which the necessities of the country made so frequent. Nor were 
 people wanting who openly accused the entire banking interest of an 
 unfair confederation to realize their views. This interest was first at- 
 tacked by the boldness of Abraham and Benjamin Goldsmid ; and it is 
 easy to imagine the feelings of the bankers when unknown men reaped 
 the prize which they had hitherto gathered. 
 
 The daily papers bore an almost daily testimony to their munificence. 
 Naturally open-handed, the poor of all creeds found kindly benefactors. 
 On one day, the grandeur of an entertainment to royalty was recorded ; 
 and on the next, a few words related a visit of mercy to a condemned 
 cell. At one time, mansions, vieing in architectural beauty with those 
 of our nobility, were described ; at another, some great and gracious act 
 of charity was recorded. Entertainments to princes and ambassadors, 
 reviving the glories of the Arabian Nights, were frequent ; and galleries, 
 with works of art worthy the magnificence of a Medici, graced their 
 homes. They were awhile Fortune's chief and most especial favorites. 
 "When, in 1793, the old aristocracy of England's traders fell, as in 1847, 
 and the Bank in one day discounted ,£4,400,000, their losses amounted 
 but to £50. Prizes, under circumstances little inferior to romance, 
 followed their purchases of lottery-tickets ; and they knew, as if by in- 
 stinct, a bill of exchange with a bad name to it. 
 
 The brothers had faced the storm of life in their earlier years. For- 
 tune, which crowned their efforts, proved that prosperity haa no power to 
 divide them ; and when, in the early part of the nineteenth century, 
 Benjamin Goldsmid destroyed himself, the survivor felt the loss so severe- 
 ly, that he never recovered the shock. The death of Benjamin caused 
 no abatement in the benevolence of Abraham Goldsmid ; and one who 
 knew him well has written with enthusiasm of his " general philanthropy, 
 his ready munificence, his friendly demeanour, his mild and unassuming 
 manner." 
 
 Many anecdotes, singularly illustrative of his kindly feeling, are still 
 remembered. It is stated that, on one occasion, noticing a great de- 
 pression in the waiter who usually attended him where he dined, he in- 
 quired the cause, ascertained that it was pecuniary, gave the astonished 
 man double the amount he required, and refused to listen to the thanks 
 of the recipient. Another story is extant to the same purport. He be- 
 came acquainted by accident with one of those simple and single-minded 
 country curates, whose poverty was the disgrace, and whose piety was the 
 glory, of the Church of England. I'his was the man for Abraham Gold- 
 smid at once to appreciate and to benefit. He obtained all the necessary 
 
 60 
 
Baring and Goldsmid. 
 
 particulars, and in a few weeks a letter was received, which told the 
 curate he had been allotted a share of a new loan. The letter was a 
 mystery to the country clergyman, who placed it on one side, with a 
 confused notion that a hoax was intended. He had not long to wait. 
 The next day brought a second letter, and with it comfort and consola- 
 tion, in the shape of a large sum which had been realized on the allot- 
 ment. These things are pleasant to record ; and it is doubtful whether 
 the check gave most pleasure to the wealthy Hebrew to write, or the 
 country curate to receive. 
 
 In 1810, the houses of Baring and Goldsmid were contractors for the 
 ministerial loan of fourteen millions. But Sir Francis Baring dying, the 
 support of the market was left to his companion. The task was difficult, 
 for a formidable opposition had arisen, which required the united energies 
 of both houses to repress. It was the interest of this opposition to reduce 
 the value of scrip, and it succeeded. Day by day it lowered ; and day 
 by day was Mr. Goldsmid's fortune lowered with it. He had about 
 eight millions in his possession ; and with the depression of his fortune, 
 his mind grew dispirited and disordered. Another circumstance occurred 
 at this particular moment to increase his embarrassment. Half a 'mil- 
 lion of exchequer-bills had been placed in his hands to negotiate for the 
 East India Company ; and the latter, fearing the result of the contest on 
 the Stock Exchange, claimed the amount. His friends did not rally 
 round him, as at such a moment, and with such a man, his friends should 
 have done ; and Abraham Goldsmid, dreading a disgrace, which his sen- 
 sitive and honorable nature magnified a hundredfold, after entertaining a 
 large dinner-party, destroyed himself in the garden of his magnificent 
 residence, in Surrey. 
 
 This sad event created a sensation in the city, unparalleled by the loss 
 of any single individual. The death of the great loan-contractor was 
 regarded as of national importance. Expresses were sent with the news 
 to the king and the Prince of Wales. The funds fell three per cent. 
 The journals united in eulogizing the man whose death they recorded. 
 The jobbers of Capel Court crowded in anxious inquiry. The mer- 
 chants of the Exchange assembled before the accustomed time. The 
 thoroughfares resounded with rapid questions and hurried replies. Little 
 or no business was done ; and, it is said, the great question of peace or 
 war never created a similar confusion. The jury recorded their opinion, 
 and, when the remains were carried to their home, the procession was 
 followed by a crowd, who, partaking of his charity in life, thronged to 
 honor him in death. Sobs and suppressed moans attested the reality of 
 their sorrow, and bore a fitting testimony to his worth. The high-priests 
 and elders paid every distinction which the Mosaic ordinances allowed ; 
 but, in conformity with the commands of the great lawgiver, they with- 
 held from him the customary rites ; and unconsecrated ground received 
 the remains of Abraham Goldsmid, the Hebrew suicide. 
 
 In 1792, another sinking fund was established, of one per cent, on the 
 nominal capital of each loan, to which the interest on the capital redeem- 
 ed by this fund was to be added. When annuities for lives, or for a 
 longer term than forty-five years, were granted, the value which would. 
 6 61 
 
New Fraud in Scrip. 
 
 remain after forty-five years was to be estimated, and one per cent, on 
 that value set aside for their redemption. This fund was to be kept 
 separate, and apphed to redeeming debts contracted subsequent to its 
 institution ; and this, it was estimated, would redeem every loan in forty- 
 five years from its contraction. .£400,000 was granted in aid of the 
 previous sinking fund ; and £ 200,000 annually till 1802, when the grant 
 was rendered perpetual. All money saved by the reduction of interest 
 was also to be added ; but, as no savings occurred, this clause might as 
 well have been omitted. In 1798, however, the application of one per 
 cent, on the capital of the loans was deviated from, as the claims of the 
 war were too pressing to allow of its application. 
 
 CHAPTER X. 
 
 Curious Forgery. — Its Discovery. — Loan of 1796. — Its Management. — 
 French Revolution and its Effect. — List of Subsidies to Foreign Powers. — 
 Removal of Business from ' Change Alley. — Erection of the present Stock 
 Exchange. — Loyalty Loan. — Preliminaries of Peace. — Its Effect. — Hoax 
 on the Stock Exchange. — War renewed. — Great Fraud on the Jobbers. — 
 Its Discovery. — Rights of Stock-brokers. 
 
 On the 2d of November, 1793, as Mr. Martin, broker of 'Change 
 Alley, was occupied in his business, he was applied to by a young man 
 of somewhat effeminate appearance and of good address, to sell £ 16,000 
 scrip. As Mr. Martin was explaining to the applicant that an introduc- 
 tion was necessary, a Mr. Lyons, also a member of the Alley, esteemed 
 a reputable person, passed, and the young man, to remove Mr. Martin's 
 doubts, immediately pointed to Mr. Lyons, as thoroughly aware of his 
 respectability. The latter, on being questioned, said he knew the stran- 
 ger intimately, at the same time expressing his dissatisfaction at not 
 being employed by him. The introduction was sufficient for Mr. Mar- 
 tin, and he sold that day £ 10,000 out of the £ 16,000 intrusted to his 
 care. The seller, by some curious chance, or for some subtle reason, 
 did not make his appearance to receive the proceeds, nor did he leave an 
 address to which it might be sent. On the following morning, however, 
 Mr. Martin received a visit from him at his private residence ; but, on 
 being informed that the whole of the stock was not sold, his demand for 
 payment was delayed. The day on which the remainder of the scrip 
 was disposed of was a holiday at the Bank, and from this simple circum- 
 stance arose the discovery of a curious fraud. The business at the Stock 
 Exchange on public holidays is trifling, and the buyer, instead of hur- 
 riedly depositing the scrip in his pocketbook, had leisure to remark that 
 there was some irregularity about it. Mr. Martin at once stepped over to 
 the Bank, checked the document, and discovered the forgery. 
 
 62 
 
Loan of Eighteen Millions in 1796. 
 
 The scheme to which this gentleman had so nearly fallen a prey was 
 cunningly contrived. The effeminate applicant to Mr. Martin was the 
 sister of Lyons, disguised in male attire, — Lyons having placed himself 
 in the way at the proper moment to give the necessary character ; and, 
 had it not been for the chance circumstance alluded to, would have 
 profited largely by the deceit. The scheme failed ; Lyons was appre- 
 hended ; and, rather than give his sister the affliction of appearing against 
 him, he pleaded guilty ; thus sacrificing the slight chance of life which 
 remained, to spare the feelings of her whom he had betrayed into crime. 
 
 In 1796 a loan for eighteen millions was proposed. The usual in- 
 quiries were made by the interested parties, and the Chancellor of the 
 Exchequer positively declared that it should be conducted upon prin- 
 ciples of free and open competition. The day was appointed to arrange 
 its preliminaries. Mr. Mellish, Mr. James Morgan, and Mr. Boyd, were 
 competitors ; and when they had assembled, Mr. Boyd requested a few 
 words in private with the Chancellor. The request was granted ; and 
 the surprise of Messrs. Mellish and Morgan may be conceived, when the 
 Chancellor, on returning, proposed, that, if the latter bid for the loan, Mr. 
 Boyd should be at liberty to supersede them on paying half per cent, 
 above the highest offer. This was decidedly and indignantly refused ; 
 and the Chancellor, without any other proposition, at once agreed to take 
 the terms offered by Mr. Boyd, although it was fully understood by all 
 that there should be no final settlement on that day. The real causes of 
 this extraordinary proceeding are difficult to ascertain ; but the excuse 
 offered by the Chancellor was, that Boyd had some claim on govern- 
 ment, in consideration of the previous loan not having entirely expired. 
 Allowing this, the state had no right to remunerate Mr. Boyd at the ex- 
 pense of others ; and as very little of the previous scrip remained in his 
 possession, it was, whatever partisanship might allege in excuse, a gross 
 dereliction of public duty, and a great misdirection of public interest, to 
 allot a loan without competition, at a loss of .£499,500 to the public. 
 At any rate, the contract was notified as open, the Governor of the Bank 
 was authorized to declare it so, and the Chancellor expressed no doubt 
 upon the subject. 
 
 There was much comment at the time. There was also a curious 
 story in circulation of bills to the amount of £ 700,000 having been 
 drawn on the treasury in fictitious names, and with fictitious dates ; and 
 it was asserted that, when the loan was contracted, it was absolutely 
 known by the Cabinet that the king's speech would inevitably raise the 
 funds, and add five per cent, to the gains of the contractor. Before 
 the first payment, .£2,160,000 was the profit on a contract for eighteen 
 millions. 
 
 During the loans so frequently mentioned, it was curious to witness 
 the bidders arising at early dawn ; waiting from two until ten in the 
 morning, and then see them rush, with all the eager impetuosity of gain, 
 to grasp a share of the proffered good. 
 
 When it became known that, on the 12th of May, 1789, an insurrec- 
 tion had broken out at Paris, it was but little imagined that its effects 
 would press upon the resources of England for ever, increase her tax- 
 
 63 
 
Effects of the French Revolution. 
 
 ation, and embarrass her councils ; and as news came from time to time 
 of the excesses of the mob, the destruction of the Bastille, and the 
 murder of the monarch, it was received in accordance with the political 
 principles of the listener. 
 
 The first effect of the revolution shook the state to its foundation. A 
 strong democratic tendency passed through Europe, and England shared 
 the peril. A feeling of public wrong was prevalent. A fierce move- 
 ment convulsed the populace. Debating societies were established, and 
 the misgovernment of the nation was exposed. The public-houses were 
 filled with orators, and the cry for reform was incessant. The press 
 teemed with warnings and appeals. Societies corresponding with the 
 Jacobin clubs of Paris were established. Some of the first men in Eng- 
 land welcomed the revolution with enthusiasm, while the masses hailed it 
 with delight. The Convention was congratulated ; and it is surprising 
 that, with democratic principles, a democratic spirit, and a numerous 
 array of men of rank on the popular side, England should have preserved 
 her constitution. 
 
 William Pitt, the minister of the day, took a bold and determined posi- 
 tion. " It is not reform they want," he said, " it is revolution. They 
 wish to react the troubles of France ; to murder the king ; and establish 
 a republic." The people petitioned, and were neglected. They agi- 
 tated, and were punished. The youth of England clamored for more 
 freedom ; and revolutionary principles spread far and wide. Persons of 
 rank and property were alarmed, and formed associations against an- 
 archists and levellers. Parliament was summoned before its time ; the 
 Alien Bill was passed ; the naval and military forces were augmented ; 
 and when the French Convention declared they would assist the disaffect- 
 ed subjects of all monarchical governments, the English ministry de- 
 manded a disavowal. The demand was refused ; the French ambassador 
 was ordered to leave the kingdom ; and, in 1793, the war which added 
 so terribly to England's encumbrances was declared. 
 
 At this time the position of revolutionary France was remarkable. 
 From the commencement of the change, the princes of Europe regarded 
 it with dislike ; and the death of Louis was sufficient to decide all crowned 
 heads against the movement. So soon, therefore, as war was declared, 
 treaties were formed with the principal Continental powers. In six 
 months, seven treaties of alliance, and six of subsidies, were concluded. 
 Sweden coalesced with Russia, Prussia, and Austria. The German em- 
 pire followed. Bavaria, Suabia, and the Elector Palatinate joined the 
 hostile league. Naples followed the example of the Holy See ; and the 
 young republic, menaced from without and divided within, saw her ter- 
 ritory invaded by half a million of the most warlike troops in Europe. 
 
 But the danger was met boldly. The combined armies which were to 
 destroy democracy and establish kingly supremacy were checked at the 
 first onset. The republic resolved to conquer, and the waste of life was 
 disregarded. Conscriptions were frequent ; reinforcements arrived con- 
 stantly ; and the army of the allies gave way. But to roll back the tide 
 of war was insufficient for a victorious and a military people. The in- 
 vasion was carried from their soil, and the invaders were dishonored on 
 
 64 
 
Subsidies to Foreign Powers. 
 
 their own hearths. A great man had arisen ; and Italy fell before the 
 genius of Napoleon. Holland was conquered ; Prussia and Spain sued for 
 peace ; the savage Russ and the disciplined Austrian alike gave way before 
 the fierce enthusiasm of the soldiery, and the greatness of the captain. 
 
 In the mean time, the aspect of affairs in England was alarming. In- 
 effectual trials for high treason agitated the people. Every effort to per- 
 vert casual discontent into determined rebellion was made. The price 
 of provision was high ; the system of subsidies impoverishing ; and tax- 
 ation saddened the homes and hearts of the people. 
 
 The emperor had received seven millions, Prussia a million and a 
 half ; and a host of minor powers had coalesced from similar causes. 
 But if the trials of the people were fearful, the difficulties of the govern- 
 ment were numerous. Disaffection among the populace, a powerful and 
 organized opposition within the House, a general hatred of the war with- 
 out, an oratory unsurpassed in the senate, an invective unsurpassed in the 
 street, an empty exchequer, a starving people, and quarterly loans, were 
 difficulties which even the fine eloquence of William Pitt, and the large 
 majorities he commanded, found it hard to surmount. Riots which en- 
 dangered the royal person ensued ; hundreds of thousands clamored 
 against the taxation which oppressed them ; and England seemed on the 
 brink of revolt. 
 
 But a yet more dangerous era awaited the land. The navy, which had 
 saved us from invasion, mutinied ; the gold of the country followed her 
 subsidies ; the Bank of England ceased to pay her notes in specie ; the 
 power of France increased ; Austria only remained to check the republic 
 on the Continent ; and Lodi witnessed a defeat which paralyzed the Impe- 
 rial power. The passage of the Alps followed ; and, within thirty miles 
 of his capital, humiliating terms were dictated to the Emperor of Austria. 
 
 England now stood alone against France. An invasion was threat- 
 ened ; but it stirred a spirit of resistance which will long remain a mem- 
 orable passage in English history. Every village had its volunteers, 
 every corporation its company ; and, whatever their defects may have 
 been in the eyes of military science, there was scarcely a man who 
 would not have marched to certain death to preserve the freedom inherit- 
 ed from his fathers. Song and sermon alike inspirited them ; night after 
 night watch-fires were prepared on the lonely hills of the country ; and 
 the slightest sound or symptom of invasion would have called forth its 
 devoted sons and servants. 
 
 These things are greatly to the praise of our countrymen ; and the 
 following list of subsidies, up to 1801, will prove it was no trifle with 
 which they contended, when they strained every power to meet the finan- 
 cial difficulties of the time : — 
 
 Prussia . . . 1794 £1,223.891 10s. 6d. 
 
 Sardinia, 1793 to 1796 500,000 
 
 Emperor, 1795 and 1796 6,220,000 
 
 Ditto .... 1797 700,000 
 
 Portugal . . 1797 247,205 
 
 Ditto . . . 1798 120,013 13 
 
 Russia ... 1799 825,000 
 
 Emperor and Elector of Bavaria 500,000 
 
 6* 65 
 
British Naval Power. 
 
 Emperor 1,066,666 13 4 
 
 Russia 545,494 
 
 Bavaria 501,017 6 
 
 Emperor 150,000 
 
 £12,599,288 2 10 
 
 But though England witnessed the power of the republic aggrandized 
 on the Continent, — though the blood she had shed and the money she 
 had spent were ineffectual on land, — she yet retained her ancient su- 
 premacy at sea. The name of Nelson was a word of dread ; and the 
 maritime force of France was crushed by that victory which crowned a 
 series of splendid successes in the Bay of Aboukir, and which, known as 
 the battle of the Nile, went like a trumpet call throughout Europe. The 
 despondency of the Continent passed away ; the system of coalition, so 
 dear to WiUiam Pitt, was again called forth ; and Austria, Russia, Tur- 
 key, and Naples once more joined the victorious island. Loans were 
 again made. Germany had another million, Russia half that amount, 
 and other sums passed to other powers. But the exertion was vain, the 
 loans were fruitless; and in 1802 that peace, of which it was said 
 " every man is glad, but no man is proud," was concluded in the treaty 
 of Amiens. 
 
 In the same year the sinking funds were united, to assist in discharging 
 the debts then existing ; and one per cent, on loans subsequent to 1802 
 was again appointed, to swell the amount. This fund at its commence- 
 ment was hmited to four millions, but this Hmitation was repealed ; and 
 the application of expired annuities, and of saving by the reduction of 
 interest, was also repealed. 
 
 In the latter part of the century, a beneficial change was made in the 
 provision for the naval expenses. Prior to this period, £4 per man per 
 month was the allowance to meet the entire cost of the department ; 
 after this time, the expenses of the navy were supplied, like other charges, 
 from the loans periodically raised. 
 
 Though the discontent of the English people was often roused, yet 
 the stories which were occasionally circulated, — of forced loans in 
 France, — of Parisian banking-houses being surrounded by soldiers, — 
 ■of money-chests violated, and of moneyed men plundered, — had con- 
 siderable effect in quieting them. It is probable that many of these were 
 inventions ; some of them were understood to be so ; but when it is 
 known that entire yearly incomes were often collected, and called in- 
 come-tax, there are few financial follies of our neighbours which we should 
 not be inclined to credit. 
 
 A curious proposition to pay off the national debt was very seriously 
 made in 1798. A profound disquisition upon the evils which arose from 
 it, and the ruin to which it was leading, was followed by an intricate array 
 of figures, a close calculation of the population, and an analysis of their 
 incomes. Somewhat excited by the grave beginning, the public were 
 not a little disappointed to find that, by deducting one day's provision per 
 week for a certain time, and allowing compound interest on it, the great 
 financial difficulty of the day might be overcome. The volume was 
 privately printed, in quarto, at considerable expense ; but whether it 
 
 66 
 
Removal from ''Change Alley. 
 
 emanated from a lunatic asylum, or whether it sent the writer to one, 
 cannot be ascertained. 
 
 It must be evident from the brief record of the war just given, that 
 business in the funds had increased greatly. Prior to 1801, the market^ 
 of 'Change Alley, in the coffee-house where the brokers met, was, as a 
 public place, open to any who chose to make it his resort. The jobber 
 who reckoned his transactions by hundreds of thousands was jostled by 
 the man who was disposed, either morally or materially, to pick pockets ; 
 while the loans which had increased the national debt to 550 millions, 
 the exchequer-bills, which were circulated as freely as the government 
 dared, and the companies, which were augmented in proportion, formed 
 an amount of business that, in the opinion of the principal persons, de- 
 manded a building to bear some proportion to the importance of its 
 transactions. It was resolved, therefore, to choose a plot of ground as 
 near the Bank as possible, and to meet the required expenses by private 
 subscription. Whatever errors may be indigenous to the Stock Ex- 
 change, illiberality can scarcely be classed among them ; and so success- 
 ful were the proceedings, that, on the 18th of May, 1801, Mr. William 
 Hammond, chairman of the committee of management, laid the fii'st stone 
 of the first building erected exclusively for the business of the Stock 
 Exchange. Beneath the stone the following inscription, engraved on 
 copper, was placed : — 
 
 " On the 18th of May, in the year 1801, and forty-one of George III., the first stone 
 of this building, erected by private subscription, for the transaction of business in the 
 public funds, was laid in the presence of the proprietors, and under the direction of 
 William Hammond, William Steer, Thomas Roberts, Griffith Jones, William Grey, 
 Isaac Hensley, Jo. Brackshaw, John Capel, and John Barnes, managers ; James Pea- 
 cock, architect. At this era, the first of the Union between Great Britain and Ire- 
 land, the public funded debt had accumulated in five successive reigns to £ 5.52,730,924. 
 The inviolate faith of the British nation, and the principles of the constitution, sanction 
 and secure the property embarked in this undertaking. May the blessing of that con- 
 stitution be secured to the latest posterity ! " 
 
 To secure respectability in the members, vote by ballot was adopted, 
 and ten guineas per annum fixed on as the subscription. 
 
 The peace of 1801 was a welcome respite to all save the members of 
 the Stock Exchange ; where it was said, " There were not commissions 
 sufficient to pay for summer excursions, nor confidence enough to make 
 a bankrupt." Great efforts had been made to reduce the price, which 
 continued to ascend ; although Goldsmid was said to have stood in the 
 market and sold to any amount at the lowest price of the time. The 
 attempt proved vain ; and the endeavour to control public opinion was 
 paid for by this house to the amount of £ 180,000. 
 
 It was difficult to believe, at first, that war had really ceased. There 
 was a continued excitement until the treaty was signed ; all places of 
 public resort were thronged with inquirers ; betting ran high about the 
 articles ; the chances of exchequer-bills and new lotteries were discussed ; 
 and when the truce was announced in the city, it was also announced that 
 the preliminaries of a new loan would be arranged. Talleyrand was 
 talked of as having employed his information and capacity in gaining 
 large sums ; foreigners generally were busy in making or marring their 
 
 67 
 
* The Loyalty Loan, 
 
 fortunes ; and it was ascertained that, in 1803, they held upwards of 
 eighteen milUons of government securities. When it was known that the 
 preliminaries were signed, the tumultuous joy of the nation is beyond 
 expression ; and Lloyd's was instantly crowded. The people ran about, 
 congratulating one another on the happy event ; the different steeples 
 displayed the union-flag by day, and at night a general illumination 
 took place ; consols rose from 59 to QQ^-, and there were twenty-one 
 defaulters on the next settling day. 
 
 The loan, known as the loyalty loan, attracted much attention in the 
 early part of the century. The period at which it was contracted was a 
 critical one for the empire. Abroad, Prussia and the princes of the Em- 
 pire had withdrawn from the confederacy against France ; Austria de- 
 manded assistance ; Holland was bound by fear to the French republic. 
 Stagnation of trade, scarcity of specie, want of provisions, and discon- 
 tent among the people, marked the period at home. The supplies for the 
 year were difficult to obtain ; an appeal was made to the loyalty of the 
 nation, and that appeal was answered. Some subscribed in the hope of 
 gain ; others to curry favor ; and, with all these various interests, eighteen 
 millions were subscribed in a few days. As an additional inducement, it 
 was promised that the capital, if claimed, should be repaid within two 
 years after a definitive treaty of peace. The peace of Amiens came in 
 1802, and the holders were, therefore, entitled to demand, on the 27th 
 of March, 1804, £ 100 sterling for each £ 100 stock, although the latter 
 was at a heavy discount. It need hardly be added, that the claim was 
 made ; and, as money was not sufficiently plentiful, it was arranged that, 
 for every £ 100 of the three per cent, loyalty loan, £ 100 Navy five per 
 cent, should be given, and for the difference between the money-price of 
 the latter and £ 100 sterling, the holder should receive the amount in 
 three per cents. The whole entailed a heavy loss upon the country, and 
 this was more to be regretted, because upwards of eight millions of this 
 loan had been gathered by the Jews, and by two city banking-houses. 
 
 A few months evinced the uncertainty of the peace. Jealous and 
 watchful, both powers stood ready to renew the combat. The First Consul 
 insulted our ambassadors ; dismantled fortresses ; annexed whole coun- 
 tries to France ; sent armies against the free citizens of Switzerland ; 
 demanded the banishment of French emigrants, and the abridgment of 
 the liberty of the press ; until, unable to subdue their passions, the love 
 of peace which had once swayed men's minds changed to a fierce desire 
 for war. In May, 1803, the English ambassador demanded an explana- 
 tion, and was insolently told that Great Britain was unequal to cope with 
 France. 
 
 During this period great anxiety prevailed throughout London, con- 
 cerning the completion of a negotiation on which so much depended. 
 The more thoughtful hoped that the peace of the world would not be 
 disturbed ; and great was the pleasure, therefore, of these good citizens, 
 when, on the 5th of May, 1803, in passing the Mansion House, their 
 attention was arrested by the following letter, conspicuously displayed 
 in the place usually allotted to important information. It was short, but to 
 the purpose : — 
 
New Frauds on the Stock Exchange. 
 
 "Lord Hawkesbury presents his compliments to the Lord Mayor, and has the 
 honor to acquaint his Lordship, that the negotiation between this country and the 
 French republic is brought to an amicable conclusion." 
 
 The glad tidings soon reached the Stock Exchange, and the funds rose" 
 to seventy on the opening of the market. In a short time, however, sus- 
 picion was aroused. Men doubted, though they scarcely knew why ; and 
 the price fluctuated, with a downward tendency. Many of the members, 
 as they arrived from their residences at the West, where the news ought 
 to have reached, were utterly ignorant of the intelligence. The faith of 
 the bulls failed them, and the boldness of the bears increased. It soon 
 became confidently asserted that the news was fictitious ; and when the 
 treasury received information of the report and its origin, a letter was 
 sent by the authorities, terming the important document a scandalous 
 forgery. Amid a confusion, an uproar, and a noise, at that period un- 
 precedented, the Lord Mayor communicated in person the contents of 
 his second letter. Business was immediately suspended ; the guilty and 
 the guiltless were alike suspected ; and when a price was named, it was 
 at a reduction of seven per cent, A subscription was entered into to 
 assist in discovering the parties implicated ; all bargains were declared 
 void ; and the only important result was in a number of actions at law, 
 the benefit of the legal profession, and the impunity of the projectors. 
 
 The 16th of May was a memorable period for the country and for the 
 Stock Exchange. The personal insult offered by the French Consul to 
 the representative of his Majesty ; the evident determination of the same 
 people to break all ties and truces, rendered an appeal to arms once 
 more necessary ; and on that day the fierce and fatal war which followed 
 the truce of Amiens, — which desolated the fairest fields of Europe, — 
 which crushed the ambitious man who provoked it, — and which added 
 two hundred and sixty-three millions to the national debt, — was pro- 
 claimed. 
 
 In 1806, Joseph Elkin Daniels, a conspicuous character in the Alley, 
 and known for some time as a dealer in securities, availed himself of the 
 confidence of the members of the Stock Exchange, to perpetrate a fraud 
 as novel as it was notable. As a dealer in the funds for time, he was well 
 known ; and his frequent transactions, combined with the trust which his 
 character had achieved, gave his broker a confidence in his proceedings 
 of which he proved utterly unworthy. The time was an important one. 
 The Continent was struggling against the iron yoke of Bonaparte. Aus- 
 tria was making that last great struggle with her enemy which ended at 
 Austerlitz ; rumors were plentiful, and the price of stock varied greatly, 
 when the man Daniels came to the broker, and desired him to buy omni- 
 um on account. The price was high, but his request was complied with. 
 Omnium continued to advance, and Daniels continued to buy, although 
 the price increased from ten to thirteen premium. When the broker had 
 completed his orders to the amount of £ 30,000, he grew anxious for his 
 money, and applied for payment. Daniels, however, quieted him by 
 saying, he was so sure the price would rise, that his friends would lend 
 him on the security of the stock, to enable him to make the most of his 
 speculation, and that he should, therefore, hold the entire amount. The 
 
 69 
 
Fraud of Daniels. 
 
 statement seemed a fair one. Daniels was believed to be honest, and the 
 broker handed him .£30,000 omnium, for which Daniels gave him his 
 draught on Smith, Payne, & Smith. 
 
 The first part of this man's fraudulent scheme was now acted. He 
 knew the check would not be presented until the afternoon, and that he 
 was, therefore, free from danger for a few hours. He immediately took 
 the omnium to other brokers, represented to them an urgent necessity for 
 money, sold it, and having been paid checks for the amount, immediately 
 presented them to the bankers on whom they were drawn, and received 
 the amount in cash. He then went to all whom he knew, or would trust 
 him, borrowed money on the security of his own checks, — a common 
 practice on the Stock Exchange, — with remarkable boldness, remained 
 in London until near the hour when he knew his own draught would be 
 presented and refused, and then left, laden alike with gold and a guilty 
 conscience. 
 
 The total amount of fraud was estimated at £ 50,000. Telegraphic 
 notices were transmitted to the principal ports of the United Kingdom ; 
 the Lord Mayor despatched officers in all directions ; the chief sufferers 
 went express to various places, on the chance of detaining him ; and 
 every exertion was made to bring to justice the man who had violated 
 every principle of common honesty, and so greatly shaken the honorable 
 confidence of the members of the Stock Exchange. Two thousand 
 seven hundred pounds which he had strangely left at his banker's, were 
 attached ; two hundred guineas were offered for his apprehension ; his 
 lodgings were examined, and the property found was seized by the officers 
 of justice. 
 
 The search was too active not to be successful ; and Daniels was dis- 
 covered in the Isle of Man. Here a new difficulty arose. The Manx 
 laws protected the culprit, the governor's permission being required to 
 apprehend him ; and, when procured, so numerouslj' was the island 
 peopled with men like Daniels, that the officers, afraid of arresting him 
 in open day, took advantage of night to remove their prisoner. The 
 proceeds of the robbery were found ; and when his departure was known, 
 the island rose tumultuously at the violation of a right on which the safety 
 of half the population depended. 
 
 Great excitement was caused by his arrival in England ; but, after a 
 careful legal consultation, it was decided that he could not be convicted 
 on any criminal charge ; and Joseph Elkin Daniels escaped the legal pen- 
 alty of that fraud which gave so severe a shock to the members of the 
 Stock Exchange. 
 
 In the same year, it was ascertained that the amount of foreign property 
 in the British funds was twenty-two millions ; and it is scarcely out of place 
 to mention, that, by some patient calculator, it was found that one guinea 
 invested at the Christian era, at five per cent., compound interest, would 
 have increased to a greater sum than could be contained in five hundred 
 millions of earths, all of solid gold. 
 
 In the early part of the present century an attempt was made to resist 
 the tax paid to the city, of forty shillings per annum, by stock-brokers, as 
 unreasonable and unjust. Various members of the body refused to pay ; 
 
 70 
 
Acts against Brokers. 
 
 the corporation and the brokers were at issue ; and, in 1805, a hundred 
 summonses were applied for, though a few only were granted, to test the 
 disputed right. Among these was one to Francis Baily, who undertook 
 the championship ; and from the conviction that the claim was unjust, re- 
 fused in the above year to pay the sum demanded. As the justice, 
 though not the law, is yet doubted by some, a brief retrospect of the 
 various acts affecting brokers may not be out of place. 
 
 The act of 8 and 9 William III., c. 32, — alluded to in an earlier part 
 of the volume, — was the first that could affect stock-brokers, as in that 
 reign they and their misdeeds began to flourish. The following forms a 
 portion of the preamble to the act : — 
 
 " Whereas divers brokers and stock-jobbers have lately set up and car- 
 ried on most unjust practices, in selling and discounting tallies, bank- 
 stock, bank-bills, shares and interest on joint stock, and other matters, 
 and have and do unlawfully combine to raise or fall the value of such se- 
 curities, for their own private advantage ; and whereas the numbers of such 
 brokers and stock-brokers are very much increased within these few 
 years, and do daily multiply, — be it enacted, that from and after May, 
 1697, no person shall act as broker until licensed by the Lord Mayor and 
 Court of Aldermen of the said city of London. 
 
 " That the number of brokers shall not exceed one hundred, and that 
 the admittance fees shall not exceed 405. 
 
 " That the names of the brokers shall be publicly affixed on the Royal 
 Exchange, in Guildhall, and other public places in the city. 
 
 " That any persons acting as brokers without being admitted as afore- 
 said, shall forfeit £ 500, and persons employing them £ 50 ; and that 
 any person not being a sworn broker acting as such, shall forfeit <£500, 
 and for every offence stand three times in the pillory. 
 
 " That all brokers shall keep a book, to be called the Brokers'-book, to 
 enter contracts, and in cases of omission, forfeit £ 50 for every offence. 
 
 " That they shall not receive more than ten shillings per cent, for 
 brokerage. That, if they shall deal in any articles on their own account, 
 they shall forfeit £ 500, and never act as brokers again. 
 
 " That no person buying or selling tallies, corn, or any other pro- 
 vision, or coal, shall be esteemed a broker within the meaning of the act." 
 
 In 1707, this, which was for ten years, expired ; and although various 
 petitions, according to the interest of the petitioner, were presented, it 
 was not renewed. A new act was then brought in, by which a yearly 
 tax of forty shillings was levied against all brokers ; and it is doubtful 
 whether this would have been passed, had not a deficiency been created 
 by the repeal of one concerning specie. 
 
 In 1711, a committee of the House was appointed to consider the 
 acts relative to brokers ; and a recommendation ensued to revive the act 
 of 1697. In compliance with this, a bill was brought in, read a first and 
 second time, but was not passed ; and in the reign of Queen Anne, the 
 charge for brokerage of 10s. per cent, was reduced to 2s. 9d. It is now 
 2s. 6d. 
 
 In 1746, and in 1756, new bills were brought in, but rejected, which 
 materially affected stock-jobbers ; and in 1765 it was ordered that a bill 
 
 71 
 
Francis Baily. 
 
 be brought in to restrain the ill practices of brokers ; but this, like the 
 others, was not passed. 
 
 The ground of defence occupied by Mr. Baily was somewhat subtle. 
 In 1806, this gentleman published a pamphlet, called " The Rights of 
 Stock-jobbers defended," in which he explained his principles of action, 
 and detailed the course which had been taken. He says : — " The -right 
 of the city of London to call upon stock-brokers to be sworn in before 
 the Court of Aldermen, has long been contested and opposed by that 
 body. It is resisted by them, in the first instance, under the impression 
 that they are merely agents, and ought not to be considered as brokers 
 more than many other persons, who, under the name of tailors, mer- 
 chants, and tradesmen, act by commission in the purchase and sale of 
 goods." 
 
 With these ideas Mr. Baily contested the right, not, as those who knew 
 him will readily credit, from narrow views or confined notions, but be- 
 cause he believed he was supporting a principle founded in justice. 
 These views, however, he found it impossible to maintain. A case was 
 produced by the city, in which it was decided that a person buying and 
 selling stock came within the meaning of the act ; and the efforts of Mr. 
 Baily proved futile. 
 
 For those who feel disposed to investigate the subject, a list of acts 
 relating to brokers will be found in the Appendix. 
 
 In 1807, Lord Henry Petty proposed a new plan for a sinking fund ; 
 which, however, was only a revival of the principle of borrowing with 
 one hand and spending with the other ; and, as the ministry which 
 planned it were not long in office, it was not continued after the first year. 
 
 CHAPTER XI. 
 
 Unfounded Charge. — Joint-Stock Companies. — Speculators. — Mark Sprot. — 
 Sketch of the House of Baring. — Policies on the Life of Bonaparte. — 
 Humors of his Death. — David Ricardo. — Forgery of Benjamin Walsh. — 
 Ejccitement of the Nation. — Increase of the National Debt. — Sinking Fund. 
 — Unclaimed Dividends. — Francis Baily. 
 
 Although shares in life assurance companies form part of the pro- 
 fessed business of the Stock Exchange, yet the better class rarely reach 
 the hands of the brokers. They are held in such high and deserved es- 
 timation, that they remain in the possession of families for generations, 
 passing as heirlooms, with the same confidence in their value as if they 
 were freehold. As an instance of this, it was noticed in the papers that 
 the first public sale of the stock of the Royal Exchange Assurance Cor- 
 poration occurred in 1812. 
 
 The charge of employing official information to speculate in the funds 
 has often been brought against public men. These accusations have 
 
 73 
 
Speculation in Joint- Slock Companies. 
 
 often been made with cause, but generally with caution. In August, 
 1805, however, a letter was received by the head of the government, 
 signed by Ambrose Charles, a clerk in the employment of the directors 
 of the Bank of England, in which Lord Moira, a cabinet minister, was 
 accused of availing himself of his official information to speculate in the 
 stocks. The name of the broker employed by his Lordship was given ; 
 and letters which implicated him were said to have been publicly exhib- 
 ited on 'Change. The underlings of newspapers were declared to be in 
 communication with the accused nobleman ; and the document concluded 
 with the offer of proving these assertions, should Lord Grenville require 
 further information. 
 
 The letter was too important to be overlooked ; and the prime minister 
 gave the required interview to the writer, who, persisting in his assertion, 
 calmly and confidently declared its truth ; and was proceeding with his 
 story, when, with a dramatic effect rarely witnessed off the stage, the door 
 of an adjoining apartment was opened, and the accused confronted his 
 accuser. There appears to be no other evidence of what passed at this 
 interview than that given by Ambrose Charles, which, being entirely 
 favorable to himself, cannot be trusted. No proof was tendered of the 
 assertion ; but the morning on which the letter had been sent, the writer 
 remarked to a fellow-clerk, " I have done a deed which will immortalize 
 me." The subject was made a matter of legal inquiry ; affidavits from 
 all who had been named as having inculpated his Lordship evinced his 
 complete innocence, and the entire evidence proved the falsehood and 
 folly of the criminator. The charge was eventually dismissed as unten- 
 able ; and the whole affair can only be regarded as one of those morbid 
 cravings after notoriety which arise equally from a diseased brain and an 
 idle vanity. 
 
 In 1807 and 1808, a general and feverish love of speculation was 
 abroad. Joint-stock companies were the feature of the day ; canals, 
 bridges, and life assurance being the great favorites, which, if injurious 
 to the speculator, were beneficial to the country. To this period London 
 owes Waterloo and Vauxhall bridges, with many more of those public 
 works forming to the foreigner objects of so much interest. 
 
 It has lately been the custom to speak with contempt of joint-stock 
 associations, although it is to such bodies that England is indebted for 
 her greatest and her grandest undertakings. The Bank of England, 
 which has been called the bank of the world, — the railways, which bear 
 comfort and civilization to the remotest hamlets, — the canals, which 
 convey our commerce and irrigate our lands, — our docks, which contain 
 the wealth of the East and of the West, — our life-assurance compa- 
 nies, which comfort many a desolate hearth and home, — are the result 
 of joint-stock companies. The evil is passing ; but the good is per- 
 manent. 
 
 A similar outcry is always raised against projectors and speculators. 
 Swift employed his pen in ridiculing them ; Scott introduced one to turn 
 him into contempt ; Addison employed his fine genius in satirizing them ; 
 Steele wrote one of his best essays on them. The smaller herd of wits 
 have swelled4he ciy ; and they to whom mankind are preeminently indebt- 
 7 73 
 
Mark SproU 
 
 ed are named with contempt, and treated with derision. The projectors of 
 all great works have been disdainfully regarded at one period or another. 
 The men who first planned our bridges have been neglected ; the pro- 
 moters of railways, which are now paying well, and rejoicing our rural 
 homesteads with the polish and the luxury of cities, were a by-word to 
 the mass. And yet the finest minds of the day are employed in project- 
 ing. The discoverer of steam-power was a projector ; Arkwright was 
 only a projector ; Thomas Gray was the same. What does not England 
 owe to men who bore the burden and the heat of the day in the intro- 
 duction of projects, which, once household luxuries, they have made 
 household necessities ! The cottage of the poor is comforted, the man- 
 sion of the rich is gladdened, with works for which projectors were rid- 
 iculed and speculators ruined. We cannot cast our eyes around without 
 these works meeting our view. They add a grace to our persons, they 
 cheapen our luxuries, they adorn our homes. 
 
 The mere man of routine thinks it a sacred duty to laugh at those of 
 whose services he is glad to avail himself ; while the banker, the mer- 
 chant, and the moneyed tradesman first treat him as an intruder, and 
 then buy shares in the discovery they disdainfully rejected. The world 
 is rich in the names of those who have benefited and been neglected by 
 their fellow-men. 
 
 One of the greatest capitalists of the reign of George III. died in 1808. 
 Mark Sprot, a name which will recall many a pleasant anecdote to mem- 
 bers of the Stock Exchange, born a younger brother, with a younger 
 brother's portion, achieved, by his own exertions, one of those fortunes 
 which arose out of the loans of the French war. In 1780 he settled in 
 London, with moderate means ; and, from occasional visits to the Bank 
 and Stock Exchange, formed an intimacy with the members of the 
 moneyed interest. He soon saw that, with small risk, he might make 
 great gain, and commenced a career which ended in splendid success. 
 In 1799, he was one of the contractors for the lottery ; and, in 1800 and 
 the three following years, he was at the head of those who bid for the 
 loans. 
 
 During the trial of Lord Melville, Mark Sprot was examined, in conse- 
 quence of having borrowed money from Mr. Trotter. The latter, on a 
 comparatively trifling income, had built a splendid mansion ; and as at- 
 tention had been drawn to the circumstance, Mr. Sprot's name was in- 
 volved. When examined by the committee, and asked whether he did 
 not act as banker to members of both Houses, " I never do business 
 with privileged persons," was the shrewd, but daring reply. This answer 
 originated, probably, from the following anecdote. 
 
 On one occasion a broker applied to Mr. Sprot, and with great sorrow 
 told him that he was a ruined man. Mr. Sprot was surprised, for he 
 knew the speaker was careful, industrious, and not likely to speculate. 
 He asked the cause, and the broker replied, that he had been employed 
 largely by a principal, who, the prices having gone against him, had re- 
 fused to pay his losses. Mr. Sprot immediately inquired his name ; and 
 on being told it was a noble earl, of whose resources he was well aware, 
 could scarcely believe he heard correctly. ♦ 
 
 74 
 
The House of Baring, 
 
 He knew him to be in possession of large landed estates ; and, when 
 informed that his Lordship had refused to give any reason except that it 
 was not convenient, Mr. Sprot told his visitor not to be alarmed, that he 
 would not press his claim, and concluded by making an engagement with' 
 him to visit his Lordship. 
 
 Together they went, and were received with patrician dignity. Mr. 
 Sprot deliberately detailed his business, and received the cool reply, that 
 it was not convenient to pay. But the energetic jobber was not a man to 
 bow before rank, unless accompanied by worth ; and Mr. Sprot unhesi- 
 tatingly declared, that, if the account were not settled by a certain hour 
 next day, he would post his Lordship as a defaulter. The latter grew 
 alarmed, and attempted to conciliate ; but the conference closed with the 
 repeated determination of Mr. Sprot to post him. Long before the hour 
 appointed, however, his Lordship's solicitor waited on the broker to ar- 
 range the payment ; and thus the honor of the earl was preserved, and 
 the credit of the broker saved in the money-market, through the acuteness 
 and determination of Mark Sprot. 
 
 In 1810, an application was made to Parliament for permission to erect 
 and secure to the public the right of admission to an open market for the 
 sale and purchase of national securities, on the ground that the public 
 ought not to be excluded from the room in which business in the public 
 funds is contracted. The bill was introduced by Sir William Curtis, and 
 rejected by the senate. 
 
 The history of the house of Baring — which, though generally re- 
 garded as mercantile, is largely connected with the loans — has been 
 termed an evidence of the power of a few active young men to advance 
 themselves to immense fortune, and to distinguished marks of favor from 
 the sovereign. Various origins are attributed to the members of the 
 firm, and the Herald's College has been employed to give the dignity of 
 ancestral honors to the family. In 1793, the first baronet of the name 
 was created, and the signal services of Sir Francis to the East India 
 Company, of which he was a director, were greatly appreciated. 
 
 It has been stated, — but as the writer is uncertain of his authority, he 
 gives it with caution, — that they were originally German weavers, who 
 came over to London, and, being successful in business, were, through the 
 interest of William Bingham, of Philadelphia, appointed agents to the 
 American government. Considering, therefore, the large resources at 
 their command, it is not surprising that, during the loyalty loan in 1797, 
 the head of the house made one hundred thousand pounds for three con- 
 secutive days ; or that, in 1806, it was sarcastically said, " Sir Francis 
 Baring is extending his purchases so largely in Hampshire, that he soon 
 expects to be able to inclose the country with his own park paling." 
 
 In 1805 this gentleman, the first algebraist of the day, retired from 
 business with a princely fortune, and shortly afterwards died, full of years 
 and honors. A green old age, a career closed at the pinnacle of pros- 
 perity, and a death-bed surrounded by sons and daughters, whom the 
 descendant of the German weaver had lived to place in splendid inde- 
 pendence, was his enviable lot. The great commercial house which he 
 had raised to so proud a position was continued by his sons, and may be 
 
 75 
 
^ Policies on the Life of Bonaparte. 
 
 considered the most important mercantile establishment in the empire. 
 Freehold estates to the amount of half a million, besides enormous per- 
 sonal property, rewarded his great capacity, and his yet greater integrity. 
 
 The house of Baring, notwithstanding some periods when doubt and 
 almost dismay hung over it, yet retains the power and position bequeathed 
 by Sir Francis ; and, as an instance of the fortune and capacity of its 
 members, it may be mentioned that the late Lord Ashburton, when bear- 
 ing, as Sir Robert Peel feelingly expressed it, the honored name of Alex- 
 ander Baring, realized £ 170,000 in two years by his combinations in 
 French Rentes. 
 
 From 1810 to 1815, the business in every department of the Stock 
 Exchange increased greatly. Loan after loan came rapidly forward, 
 was as rapidly taken, went to a premium, was merged in the funded 
 debt, and was succeeded by fresh demands for fresh loans. The public 
 feeling was so strong, even during those fearful campaigns which pre- 
 ceded the fatal field of Austerlitz, when the futile threat of invasion was 
 frequent, and " the army of England " assembled at Boulogne, that no 
 ministry could have maintained its power unless it had been a war min- 
 istry. And when the event of that battle, known as the " battle of the 
 three emperors," was made public, when the entire powers of the Con- 
 tinent were at the feet of Napoleon, and William Pitt, the soul of the 
 coalition, died from fear of the calamities that threatened, the people of 
 England were unchanged in their resolute defiance. Enmity towards 
 the French was an article of faith. Hatred to their leader was taken 
 from the mother's breast, and nourished by the stories which day by day 
 engrossed the public mind, or violated public feeling. At one time, the 
 commercial world was excited with the story that all the specie in all the 
 private banks of France had been seized. At another, some cruelty 
 which outraged humanity passed current with the vulgar. Stories of the 
 conscription harrowed the feelings of parents ; tales of insurrection, sup- 
 pressed with heartless cruelty, raised the indignation of the child. The 
 evening fireside derived its great attraction from the talk about Bona- 
 parte ; and it is no exaggeration to say, that nurses stilled their querulous 
 charges, or that mothers hushed their children, with that dreaded name. 
 Policies were opened on his life ; and so uncertain was it considered in 
 1804, that fifty-five guineas per cent, were paid to insure it for one year. 
 No fiction was more favorite or more frequent than that which detailed 
 his death ; and in this the powerful invention of the romancer was often 
 proved. Poison and steel, the dagger of the conspirator and the bullet 
 of the republican, were constantly asserted to have ended his career. 
 On one occasion, it was universally credited that the great Corsican was 
 no more. A despatch had been received by Lord Grenville announcing 
 his death, and circumstantially detailing its manner. No doubt was en- 
 tertained ; the funds rose, and the news spread. Some very loyal per- 
 sons set the bells ringing in a suburban village, and the whole affair bore 
 the aspect of truth. The story circulated wore an appearance of romance 
 entirely in keeping with the career of the man whose death was an- 
 nounced. It was stated that Napoleon, having called a council of war, to 
 which he had invited one of the wild chiefs of the desert, who professed 
 
h 
 
 Career of Ricardo. 
 
 attachment till he could procure revenge, had been shot by him in open 
 council ; and, on the signal thus given, the wild hordes of the desert had 
 slain Bonaparte and his devoted followers in the land so recklessly in- 
 vaded. News was not then so frequent, information was not so widely 
 diffused ; and the document was credited much longer than it would have 
 been a quarter of a century later. It deserves to be mentioned as a 
 curiosity, that the forgery was not attributed to members of the Stock 
 Exchange, but to a pair of " state speculators," assisted by " members 
 of the lower House." But though it was not caused by them, they felt its 
 effect in the fluctuating price, and several were ruined by the ingenious 
 device of these " state speculators " and " members of the lower House." 
 
 Among the names conspicuous in the city for character and capacity, 
 stands that of the great political economist, David Ricardo, who, at the 
 early age of fourteen, was introduced by his father, a Hebrew of the 
 Hebrews, to the mysteries of the Stock Exchange. The mind of the 
 younger Ricardo was of an inquiring character. He began to study the 
 principles of the creed in which he had been educated. The result was 
 his secession from the faith of the ancient people, and his abandonment to 
 his own resources by his father. Those resources were small ; but his 
 conduct and character had interested the members of Capel Court, and, to 
 their honor, with a liberality which not unfrequently distinguishes them, 
 the oldest and most influential came to his assistance. The extraordinary 
 powers of Mr. Ricardo were soon developed in the acquisition of a con- 
 siderable fortune ; and, having hitherto employed but little time in study, 
 he amply and nobly redeemed his lost hours. At twenty-five he com- 
 menced mathematics, and with great application studied chemistry and 
 mineralogy, fitted up a laboratory, formed a collection of minerals, and 
 bestirred himself with all the energy of his character. These sciences, 
 however, he soon abandoned , and, having accidentally become acquaint- 
 ed with Adam Smith's " Wealth of Nations," he employed his great 
 thought upon the subject of political economy, in which he soon became 
 distinguished. He led the van in the bullion controversy ; his principles 
 were those on which the present bank charter is founded ; and, in 1817, 
 he published that great work on his favorite science so familiar to the 
 commercial reader. 
 
 His reputation preceded him to the senate ; and his opinions on the 
 above subjects were deferred to with respect. When Mr. Peel's bill was 
 introduced, in 1819, his name was called for from all sides of the House ; 
 and, in 1823, David Ricardo, an acute, patient, and comprehensive 
 thinker, a firm and faithful friend, and an honor to the body of which he 
 was a member, died, at the early age of fifty-two. 
 
 Few trials, which were not for life, have excited so much interest in 
 the city, as that in which Benjamin Walsh — a member of the senate, a 
 member of the Stock Exchange, and a confessed felon — stood at the 
 bar of the Old Bailey, on the charge of defrauding Sir Thomas Plomer. 
 The bench was crowded with the rank and respectability of the city. The 
 melancholy appearance of the prisoner, his grave bearing, and dejected 
 countenance, excited the interest of the spectators, and spoke the regret 
 of the culprit. 
 
 7# ^ 
 
Vansittart^s Sinking Fund. 
 
 In 1811, Sir Thomas informed his broker, Mr. Benjamin Walsh, M. P., 
 that, having bought an estate, it would be necessary to sell out a large 
 amount of stock to complete the purchase. Mr. Walsh advised Sir 
 Thomas not to sell directly, as there was every prospect of the funds 
 rising ; and, the title of the estate not being complete, this advice was 
 complied with. About the middle of November, however, Mr. Walsh 
 changed his opinion, and repeatedly urged Sir Thomas to sell his stock, 
 alleging his belief that the price would fall. Again the broker's sug- 
 gestion was complied with ; but, as it was sold before the money was 
 required for the estate, it was recommended by the prisoner that, to pre- 
 vent it from lying idle, exchequer-bills should be purchased with the pro- 
 ceeds. Sir Thomas again consented, and gave a check amounting to 
 .£22,000 to Mr. Walsh, who promised to lodge the notes at Goslings', 
 the bankers to Sir Thomas, and hand the latter their receipt. In the 
 evening, however, he presented their acknowledgment for only £ 6,000, 
 and making some excuse for not having paid in the remaining exchequer- 
 bills, promised to deliver them on the following day ; adding that, as he 
 had not settled for them, he had repaid the difference to the account of 
 Sir Thomas. The latter, on his way home, called at his bankers', and 
 found that, though the £ 6,000 in exchequer-bills had been deposited, the 
 check of Mr. Walsh for the £ 16,000 had been received too late for 
 presentation. No suspicion was, however, attached to the transaction 
 until next day, when the check was refused payment. Sir Thomas was 
 immediately informed, and an inquiry instituted. It was soon found that 
 the money thus iniquitously gained, had been disposed of in paying his 
 brother £ 1,000, in purchasing £ 11,000 American stock, and in invest- 
 ing £ 500 in Portuguese doubloons. The prisoner was found guilty ; 
 but certain points, reserved for the judges, being interpreted favorably, 
 he was discharged from Newgate, and expelled from the House of 
 Commons. 
 
 In 1813, Mr. Vansittart introduced a modification of Mr. Pitt's sinking 
 fund ; and, among other objects, proposed to rescind the alterations of 
 1786 and 1792, and to restore them to the position in which they would 
 have stood if no such alteration had taken place. By this Mr. Vansittart 
 designed to provide that relief which the public would have obtained from 
 the original plan, to restrain the excessive increase of the sinking fund, 
 and to secure the redemption of each loan within a period of forty-five 
 years from its commencement. For these purposes it was proposed, — 
 
 1st. That, as a sum equal to the debt of 1786, bearing an interest 
 nearly equal to the interest of that debt, is now vested in the hands of 
 the commissioners, so soon as the interest of the redeemed debt shall be 
 equal to that of the debt of 1786, that debt shall be declared discharged ; 
 and the sums hitherto appropriated for the interest and sinking fund shall 
 be appropriated to bear the charge of future wars ; and that no new taxes 
 shall be imposed for new loans till the same amount to a sum equal to 
 the interest of that released. 
 
 2d. That, as loans to the extent of .£86,796,375 were charged on the 
 consolidated fund in 1802, without any sinking fund attached to them, it 
 is proposed, in order to place the public creditors in a position equal to 
 
 78 
 
Fluctuations of the Funds in 1815. 
 
 that they held in 1792, that the one per cent, sinking fund on the above 
 sums be replaced to it. 
 
 3d. That, as the amount of exchequer-bills has much increased, a 
 sinking fund of one per cent, shall be annually provided for any additicm- 
 to the exchequer-bills in circulation, for the discharge of which no funds 
 are provided. 
 
 4th. That, instead of allotting the sinking fund of one per cent, to dis- 
 charge each separate loan, the whole funds shall be united, and applied 
 to discharge the first contracted loan ; and that each successive loan shall 
 be redeemed, and its charge released, in the order of its contraction, by 
 the united produce of the sinking funds appropriated for the redemption 
 of the loeins contracted since 1792 ; but the whole sinking fund created 
 by the act of 1786 to be continued, and applied until the total redemption 
 of the debt. 
 
 During the latter part of Bonaparte's career, the price of the funds 
 varied enormously. In the course of an hour, a difference of eight and 
 ten per cent, was not unknown. The loans were as eagerly sought as 
 they were frequently made ; nor is this surprising, when it is remem- 
 bered that eighteen and twenty per cent, occasionally rewarded the scrip- 
 holder. 
 
 The pulse of the people was feverish, and easily excited ; and the 
 papers of the day display the intense anxiety which hung over the public 
 mind during the eventful years of 1814 and 1815. The prices of the 
 funds dropped and rose like a barometer. It is scarcely an exaggeration 
 to say, that they were regarded as an oracle ; and, while the public pro- 
 fessed to disbelieve all Stock Exchange rumors, simply because they were 
 so, they continued to inquire the variations in the price, and almost re- 
 garded them as a cause rather than a consequence. The annals of the 
 world contain no more exciting period. For years, the English had seen 
 battle after battle won by the great conqueror. They had seen disciplined 
 armies vanquished by raw levies ; veteran troops cut to pieces by young 
 conscripts ; and the prestige of his name had haunted them for the fourth 
 part of a century. To destroy his power, they had submitted to painful 
 privations ; they had borne with taxation which almost amounted to 
 tyranny ; they had levied loans which enriched the few and impoverished 
 the many. 
 
 The national debt had increased to 800 millions ; and now the reward 
 had come, and the people read with undisguised and unlimited pleasure, 
 of field after field yielding to British prowess ; of towns stormed ; of 
 achievements which made them proud of the name they bore ; until that 
 prophecy, which had been derided for years, became a lasting fact ; 
 British troops paraded in triumph through the streets of Paris ; and men 
 felt that their sufferings and their sorrows had not been vain, but that thd 
 treasure they had lavished had reaped its reward. 
 
 So important to our financial department was the close of this war, 
 that the decrease of the expenditure was at once declared to be two 
 millions per month ; and, accustomed as the money power of England 
 had been to loan succeeding loan, the Stock Exchange could scarcely 
 understand the declaration of the Chancellor, that he neither intended to 
 
 79 
 
First French Loan in 1815. 
 
 ask for money, nor to touch the sinking fund. The immediate effect of 
 the battle of Waterloo on the funds was only three per cent., nor was it 
 until the capture of Napoleon became positively known, that they rose to 
 their previous price. 
 
 It is not unworthy of remark, that, from 1688 to 1814, sixty-three 
 years witnessed bloody and expensive wars, while only sixty-one years 
 were employed in recovering from the effects of so demoralizing a 
 system. 
 
 The well-known attempt to defraud the Stock Exchange occurred in 
 1814 ; but the features of the hoax were so like that of 1806, and its 
 effects so similar on the members, that a brief notice is deemed sufficient. 
 Prior to February, 1814, various brokers were employed by persons, 
 some of whom were not accustomed to speculate in Capel Court, to pur- 
 chase government securities to the amount of £ 826,000. Among other 
 and less important individuals, were Lord Cochrane and Mr. Cochrane John- 
 stone, M. P., who, when information arrived that some French officers had 
 landed at Dover, with the news of Bonaparte's death, took advantage of 
 the consequent rise, to sell the stock they had previously purchased. In 
 a short time, however, it was discovered that the " French officers " were 
 fictitious, and that the news was false. Every endeavour was made to 
 discover the inventors of the plot ; suspicion was pointed at persons who 
 had bought so largely and sold so well ; and Lord Cochrane, Mr. John- 
 stone, M. P., with several more, were tried for conspiracy, and found 
 guilty. The committee of the Stock Exchange did not, as in the previous 
 case, cancel the bargains made, but left the parties to the remedy which 
 the law provided. Mr. Johnstone fled from the country, and Lord Coch- 
 rane was dismissed from the navy. But public opinion has reversed the 
 decree, and reinstated his Lordship in that service of which he was the 
 pride and the ornament. 
 
 In consequence of the above fraud, it became necessary to serve cer- 
 tain law processes on many of the members ; and an attorney's clerk, 
 ignorant of the custom of the Stock Exchange, or confident in the sanc- 
 tity of his mission, ventured boldly in. The solemn character of the law 
 was no defence, and scarcely was his errand known, when he felt as 
 willing to retire as he had been anxious to enter. The disgraceful mode 
 in which a stranger is usually treated by the jobbers and brokers was 
 carried out in its fullest extent, and it was not until he had received his 
 initiation into the manners of the members that he was allowed to leave 
 the mart dedicated to Mammon. 
 
 In 1815, the first French loan was negotiated in London. The fall of 
 Napoleon, the return of Louis le Gros, the personal expenses of the 
 monarch, and the pecuniary concessions of the government, demanded a 
 supply to which French capitalists were unequal ; and a successful at- 
 tempt was made to borrow in the English market. 
 
 In the following year an act was passed, authorizing the transfer of 
 stock upon which no dividend had been claimed for ten years, to the 
 commissioners for the reduction of the national debt. 
 
 It has been the writer's duty in another work to advocate the cause of 
 the holders of unclaimed dividends. The unfairness with which they are 
 
 80 
 
Francis Baily. 
 
 treated is neither to be palliated nor justified. The eagerness and 
 anxiety of government to obtain money is too often gratified at the ex- 
 pense of morality ; and it is thus with the unclaimed dividends. Every 
 difficulty is thrown in the way of the public ; and, though the above actr 
 distinctly ordains that, immediately after the transfer^ the names^ resi' 
 deuces, descriptions, and amount shall be kept open for inspection at the 
 Bank, it is useless for the public to apply, as they are politely, but per- 
 emptorily, refused all information. It is only fair to conclude that this 
 is at the instance of government, as the Bank receive no benefit from their 
 violation of the act of Parliament. 
 
 It is not often that the repudiation of a dividend causes a rise in the 
 price of the stock ; such, however, was the case in a loan of five millions 
 to Austria, the interest of which was to be remitted by the Emperor. 
 Shortly before it became due, intelligence arrived that Austria was unable 
 to meet the claim. The stock at once rose two per cent., as it was 
 known that the faith of England was pledged to the fundholder, and that 
 henceforth the interest must be provided by the English government. 
 
 A laudable endeavour was made in 1821 to abolish the system of 
 gambling known as options ; and, after a serious consideration, the com- 
 mittee of the Stock Exchange resolved, that any member guilty of the 
 practice should be expelled the house. It was soon found that rules are 
 more easily made than followed ; and a powerful opposition was organ- 
 ized, in which the Hebrew party took the lead. Large sums were sub- 
 scribed towards the erection of a new building ; and the schism grew so 
 serious, and numbered such important parties in its ranks, that the com- 
 mittee deemed it wise to make an amicable arrangement, and abandon 
 the resolution they had so hastily made. 
 
 Up to 1822, the Royal Exchange was the theatre in which business in 
 the foreign funds was transacted. When, however, this business became 
 a feature of sufficient importance, a foreign Stock Exchange was formed 
 in connection with Capel Court. 
 
 A very important question became mooted concerning these loans. 
 On several occasions, when bargains for time were made, and the loser 
 refused to pay his differences, the broker made them good, believing his 
 principal was not liable under the act of Sir John Barnard. At last the 
 question was legally argued ; and it was ascertained from the decision of 
 several judges, that the provisions of the above act did not extend to loans 
 for foreign countries. 
 
 Francis Baily — a name as well known in the scientific as in the mone- 
 tary world — retired from the Stock Exchange in 1825, and the man who, 
 in the midst of the most exciting pursuit in the world, was worthily chosen 
 president of the Royal Astronomical Society, sheds an honor on the class 
 to which he belonged, and should have been an exemplar to the men with 
 whom he associated. 
 
 As a boy, studious beyond his years, he was called — half jestingly, 
 half seriously — the philosopher of Newbury ; and, having left school at 
 fourteen, remained in a mercantile situation until he was twenty-two, 
 when, for the mere love of adventure, he embarked for the New World, 
 travelled through a great part of the far West, and passed eleven months 
 
 81 
 
Review of the National Debt, 
 
 among the aborigines, without once meeting the shelter of a civilized 
 roof. 
 
 In 1800, he went on the money market, where he soon became con- 
 spicuous, publishing, within a few years, many works which were justly 
 regarded with great favor ; and, in 1806, defended, though unsuccessfully, 
 the rights of the brokers. In 1814, he drew up the report of the com- 
 mittee on the great fraud of that year, arranged the evidence against the 
 perpetrators completely and conclusively, and was one of those men of 
 whom the Stock Exchange — from which he retired with a fortune won 
 by uprightness and inteUigence — was not worthy. 
 
 The triumphs of Mr. Baily in his favorite pursuit are recorded in the 
 minds of all who prize the science which he so dearly loved. A list of 
 his labors would be misplaced in the present volume ; but Sir John Her- 
 schel has recorded them in his memoir of the scientific member of that 
 place which is too much open to the reproach, that it narrows men's 
 minds as much as it enlarges their purses. 
 
 CHAPTER XII. 
 
 Revieio of the National Debt. — Opinions. — BolinghroJce. — Financial Heform 
 Association. — Extravagance of Government. — Schemes for paying off the 
 National Debt. — Review of them. — Proposals for Debentures. 
 
 The period at which the present narrative has arrived does not appear 
 ill adapted for a prospective and retrospective glance at a debt which, in 
 121 years, has increased from .£660,000 to £800,000,000, which is the 
 great problem of the day, and the great difficulty of legislators. It has 
 been seen that the debt was not increased without strenuous opposition ; 
 and it need not be said that there were alarmists a century ago, as there 
 are alarmists now ; that, as each successive million was added, men were 
 not wanting to declare the ruin of the country ; or that prophets were 
 plentiful with omens of evil. Bolingbroke wrote, — " It is impossible to 
 look back without grief on the necessary and unavoidable consequences of 
 this establishment, or without indignation on that mystery and iniquity 
 which hath been raised upon it, and carried on by means of it. Who can 
 answer that a scheme which oppresses the farmer, ruins the manufacturer, 
 breaks the merchant, discourages industry, and reduces fraud to a sys- 
 tem, which drains continually a portion of our national wealth away to 
 foreigners, and draws most perniciously the rest of that immense property 
 which was diffiised among thousands into the pockets of the few, — who 
 can answer that such a scheme will always endure ? The whole art of 
 stock-jobbing, the whole mystery of iniquity mentioned above, rises from 
 this establishment, and is employed about the funds ; and the main-springs 
 which turn, or may turn, the artificial wheel of credit, and make the 
 
 82 
 
Mr. Alison's Views. 
 
 paper estates that are fastened to it rise or fall, lurk behind the veil of 
 the treasury. That luxury which began to spread after the restoration of 
 Charles II. hath increased ever since, from the growth of wealth among 
 the stock-jobbers, from this system. Nothing can be more certain than~ 
 this, — that national luxury and national poverty may in time establish 
 national prostitution. The immense wealth of particular men is a cir- 
 cumstance which always attends national poverty, and is, in a great 
 measure, the cause of it. We may already apply to our country what 
 Sallust makes Cato say of Rome, — 'Public want and private wealth 
 abound in all declining states.' " 
 
 A reference to the tracts, pamphlets, and broadsides, which were given 
 to the world in the early part of the century, will prove that public at- 
 tention was constantly drawn to the growing difficulty ; but the writers 
 committed the great error of pointing their darts at the stock-jobbers. 
 They persisted in regarding the consequence as the cause ; nor was it, 
 Mr. Alison thinks, until after the peace of Ryswick, that the great evil 
 was regarded with any thing like alarm. This gentleman, in his " Mil- 
 itary Life of Marlborough," draws the following vivid picture, and the 
 writer can confirm it from a careful perusal of contemporary docu- 
 ments : — 
 
 " The finances of Great Britain," he says, " as they were managed in 
 former times, could never have sustained the cost of such a war for a 
 tenth part of the time. But expense now seemed no obstacle to the gov- 
 ernment. A new engine of surpassing strength had been discovered for 
 extracting capital out of the country ; and the able statesmen who had it 
 in their hands felt it to be not less serviceable in consolidating the inter- 
 nal power, than in meeting the external expenses of the new dynasty. 
 
 " When this system first began, the nation was not sensible of the im- 
 portant consequences to which it would lead. They thought it could only 
 be a temporary expedient ; and that, though it might, perhaps, lead to a 
 few millions being added to the national debt, yet that would be all. 
 Though from the first, accordingly, its progress was viewed with a jealous 
 eye by the thinking few, it made but little impression upon the unthinking 
 many, before the peace of Ryswick. But when the War of the Succession 
 began, in 1702, and continued without intermission, attended by daily and 
 increasing expenditure, for ten years, the apprehensions of a large part 
 of the nation became excessive. At the Revolution the national debt 
 was ^661,000; by 1710 it exceeded ^50,000,000. 
 
 " The wars in which WiUiam was of necessity engaged, the loans 
 which they rendered unavoidable, and which the commercial wealth of 
 the nation enabled it to advance, and the great increase in the expendi- 
 ture of the Exchequer, all conspired to place a vast and unprecedented 
 amount of patronage in the hands of government. This was systemati- 
 cally directed to buy oflf opposition in Parliament, and secure a majority 
 in the constituencies. Corruption, in every possible form, from the high- 
 est to the lowest, was employed in all parts of Great Britain, especially 
 among the urban electors, and with such success, that almost every meas- 
 ure of government passed without difficulty through both Houses of Par- 
 liament. The nation had shaken ofi* the prerogatives of the crown, but 
 
 83 
 
/ 
 
 Adam Smith. 
 
 they had fallen under the domination of its influence. The gold of the 
 Exchequer was found to be more powerful than the penalties of the Star- 
 Chamber." 
 
 Almost every one professes to consider the debt as a drain upon the 
 resources of the nation ; as a nightmare upon the chests of the people ; 
 and as a millstone which will sink England below her proper position. 
 Most of our political writers affect this view. All our alarmists make it 
 their theme. Hume wrote, — " Either the nation must destroy public 
 credit, or public credit must destroy the nation." Sir Robert Walpole 
 said, — " When the debt reaches 100 millions, the nation will be bank- 
 rupt." In 1735, Lord Hervey, in his memoir of George II., remarked, 
 — " I do not see how it would be possible for the country, on any exi- 
 gence, or for the support of the most necessary war, to raise one million 
 a year more than it now raises "; and in 1777 the third earl wrote as a 
 note, — " What would my father have said had he seen seventeen mil- 
 lions raised in a year ? " Lord Bolingbroke declared the debt was sink- 
 ing England into the gulf of inevitable bankruptcy. Cobbett was per- 
 fectly rabid in his attacks on those whom he invariably classed as Jews 
 and fundholders, predicted the ruin of England in half a century, and 
 proposed, in 1832, a plan which would have ceased the interest on the 
 national debt in twenty-seven years, and have classed England among 
 the repudiators. 
 
 Adam Smith thought that the practice of funding had gradually weak- 
 ened every state which had adopted it. Paine openly predicted the Bank 
 and the government would perish together in a few months. Mr. Tier- 
 ney said, in 1817, such a state of things could not go on. Sir James 
 Graham proposed, in 1827, a reduction of thirty per cent. Mr. Baines 
 thought it might be ultimately necessaiy to make a general contribution 
 to extinguish a large portion of the debt ; and the late Earl Grey talked 
 in early life of " taking the bull by the horns " ; although he failed to 
 fulfil in his age the promise of his youth. 
 
 If prophecies such as these have been plentiful, the following extract, 
 at once a picture and illustration of the period when the nation first com- 
 menced to borrow, will prove that other views are entertained by many, 
 and that there is a large class who, however they may deprecate the great 
 evils arising from the debt, consider that it has been beneficial to the in- 
 terests of England. 
 
 " The era of the Revolution is chiefly remarkable for the new dynasty 
 having taught the government how to raise taxes in the country, and thus 
 brought England to take the place to which she was entitled in the scale 
 of nations, by bringing the vast national resources to bear upon the na- 
 tional struggles. That which the Stuarts never could eflect by appeal to 
 honor, spirit, or patriotism, William and Anne soon accomplished by 
 bringing into play, and enlisting on their side, different and less credit- 
 able motives. They no longer bullied the House of Commons, they 
 bribed it ; and, strange to say, it is to the entire success of the gigantic 
 system of borrowing, expending, and corrupting, which they introduced, 
 and which their successors so faithfully followed, that the subsequent 
 greatness of England is mainly to be ascribed. It was the system of 
 
 84 
 
Annuities. 
 
 managing the House of Commons by loans, good places, and bribes, 
 which provided the sinews of war, and prepared the triumphs of Blenheim 
 and Ramillies. William tripled the revenue, and gave so much of it to 
 the House of Commons that they cordially agreed to the tripling. He 
 spent largely ; he corrupted still more largely ; he made the national 
 interest in support of taxation more powerful than those operating to re- 
 sist it. The memoirs recently come out give details of corruption so 
 barefaced and gross, that they would exceed belief if their frequency, 
 and the testimony to their authenticity from different quarters, did not 
 defy disbelief." 
 
 It is now known, that when Walpole's ministerial supporters were in- 
 vited to his ministerial dinner, each found a .£500 note under his napkin. 
 
 It is one great evil of the present age, that it persists in regarding the 
 debt as perpetual. Immediately the expenditure is exceeded by the rev- 
 enue, there is a demand for the reduction of taxation. We, a commer- 
 cial people, brought up^t the feet of McCulloch, with the books of the 
 national debt as a constant study, with the interest on the national debt 
 as a constant remembrancer, persist in scoffing at any idea of decreasing 
 the encumbrance ; and when a Chancellor of the Exchequer proposes a 
 loan of eight millions, we growl and grumble, call it charitable, trust for 
 better times, and read the opposition papers with renewed zest. 
 
 There is no doubt that the resources of the nation are equal to far more 
 than is now imposed ; but it can only be done by an efficient revision of 
 our taxation ; and this will never be effected till the wolf is at the door. 
 A war which greatly increased our yearly imposts would, with the pres- 
 ent system, crush the artisan, paralyze the middle class, and scarcely 
 leave the landed proprietor unscathed. The convertibility of the note of 
 the Bank of England would cease ; and it would be impossible to pre- 
 serve the charter of Sir Robert Peel in its entirety, while twenty-eight 
 millions were claimable yearly in specie, and the gold of the country 
 went abroad in subsidies. 
 
 In an earlier portion of the volume, the writer briefly advocated annui- 
 ties as one mode of treating the national debt. There would in this be 
 no breach of faith to the present public ; there would be no dread of a 
 general bankruptcy ; there would be no need of loans ; and, had this 
 principle been carried out, the national debt would be yearly diminishing. 
 In ten years nearly two millions of terminable annuities will expire ; 
 and it behoves the government to inquire into the effect which the conver- 
 sion of the interminable debt into terminable annuities would have on the 
 money market. 
 
 It is absolutely idle for the Financial Reform Association to think of 
 effectually lowering the taxation of the country while twenty-eight mil- 
 lions are paid for interest ; and it is to be feared that great evil will ac- 
 company whatever good they may achieve. That there are many offices 
 which might be abolished ; that it is a rule in England that the least 
 worked should be best paid ; that an extravagant system of barbaric 
 grandeur exists ; that the army and the navy, the pulpit and the bar, are 
 conducted unwisely ; and that great men are paid great salaries for doing 
 nothing, — are indisputable ; but it is equally so, that great savings have 
 8 85 
 
Plans to reduce the Debt. 
 
 been effected, and that great efforts are making to economize further. 
 There is a faith pledged to the public servant as much as to the public 
 creditor ; and, whether he be a colonel or a clerk, a man of peace or a man 
 of war, it is impracticable, imprudent, and unjust to attempt that which 
 would as much break faith with him, as to cease to pay the dividends on 
 the national debt would be to break faith with the national creditor. 
 
 These things are paltry and puerile compared with that which, except- 
 ing a total revision of taxation, can alone materially meet the difficulties 
 of England ; and the gentlemen of the Reform Association are aware of 
 this. They may cut down salaries ; lower the defences of the country ; 
 abolish expensive forms and ceremonies ; amalgamate a few boards of 
 direction ; reduce the civil list ; and do away with all sinecures. But 
 the evil is too vast, and the difficulties are too gigantic, to be met in so 
 simple a manner. Nor will these gentlemen be satisfied with it while 
 there are 800 millions at which to level their Quixotic spear. Repudi- 
 ation was darkly alluded to at one meeting of the Association ; and, 
 though it has since been denied, it is to be feared that time only is re- 
 quired to ripen the attempt. 
 
 Mr. Henley, a few months ago, brought forward a motion to deduct 
 ten per cent, from all official salaries, and the motion was deservedly 
 negatived. But such motions, when meant to meet a great difficulty, are 
 too contemptible to notice ; and would only pauperize the feelings of 
 those who are already almost pauperized in purse. Let Mr. Henley 
 think of the salaries paid at the Custom-House, the Post-Office, and 
 Somerset House, before he again introduces a proposal on a principle so 
 broad that it is unworthy a statesman, and insulting to an educated, an 
 intelligent, and a trustworthy class. 
 
 To reduce or pay off the national debt may be gigantic, but it is not 
 impossible ; and the writer closes the present chapter with a review of 
 some of the proposals which have been laid before the public. 
 
 In 1715, a pamphlet was published, entitled, "A Method that will 
 enable the Government to pay off that Part of the Public Debt which is 
 redeemable by Parliament," by which twenty-one millions were to be paid 
 in seventeen years, by bills of credit without interest. Soon after the 
 accession of the present royal family, Mr. Archibald Hutcheson pre- 
 sented a plan which excited much attention at the time, and is well en- 
 titled to recapitulation ; and his principal propositions were, — 
 
 1. That the sums severally assessed on the lands of Great Britain for 
 the land-tax of 1713 be made payable as a rent-charge in fee for ever, 
 out of the several respective lands, redeemable at any time by the pro- 
 prietors paying twenty-two years' purchase. 
 
 2. That the said rents, or the money raised by redemption or assign- 
 ments of the same, be applied to the discharge of the public debt. 
 
 3. That one tenth part of all annuities for life, and all other rents 
 issuing out of the aforesaid lands, and of all sums of money secured by 
 mortgage, and of all other debts which affect lands, be entirely remitted 
 to their respective proprietors. 
 
 4. That the proprietors of such land be empowered to sell so much of 
 them as shall be sufficient to redeem the aforesaid respective rent-charges. 
 
 86 
 
Stephen Barhier. 
 
 5. That one tenth part of all the debts secured by public funds be 
 remitted. 
 
 6. That one tenth part of all the other net personal estates of all the 
 inhabitants of Great Britain, which affect land and public funds, be applied 
 to the payment of the public debt. 
 
 7. That 2s. in the pound be made payable yearly out of the salaries 
 and perquisites of all offices and places. 
 
 8. That the legal interest be reduced to four per cent, per annum. 
 
 9. That, for the effectual securing of the payment of such public 
 debts, for which there either is at present no provision, or the provision 
 made by Parliament appears deficient, all funds granted for any term of 
 years be made perpetual, until the principal and interest of all the said 
 public debts be fully paid off ; and that the interest of such public debts 
 as at present have defective or no securities be paid out of the yearly 
 produce of the said funds ; and that the remainder only of such produce, 
 over and above the interest of the said public debts, be applied towards 
 the sinking of the principal money. 
 
 10. That provisions may be made by an excise on apparel, or some 
 other excise, sufficient to produce one million per annum in lieu of the 
 land-tax, till all the public debts are discharged. 
 
 In 1715, Mr. Asgill published his plan for the more speedy redemption 
 of all the perpetual funds ; two millions were to be raised in specie, and 
 deposited in a bank, to support the circulation of twenty millions of ex- 
 chequer-bills at three per cent., with which all the redeemable debts were 
 to be paid off. As an annual interest of .£1,182,454 10s. M. was then 
 paid for these redeemable debts, and as the interest of the two millions to 
 be borrowed at six per cent., and of twenty millions of exchequer-bills at 
 three per cent., amounted only to .£720,000, the public would thus have 
 acquired a sinking fund of £ 462,454 10s. 5rf. 
 
 In 1719, Stephen Barbier proposed to pay the public debt. The plan 
 of this gentleman was to convert forty millions of the debt into notes, 
 bearing one per cent, less interest than the original fund, which was thus 
 to be converted ; the conversion was only to take place at the request of 
 the creditor, who might thus at any time obtain both principal and in- 
 terest. These notes were to be current in all pecuniary transactions, 
 and were to be paid in specie, six months after they were presented for 
 payment. 
 
 Such were the chief propositions at the commencement of the eigh- 
 teenth century. It would be impracticable to follow the numerous schemes 
 which have since been propounded, but a few of the later plans may not 
 be uninteresting. In 1819, a proposition was made which boldly grap- 
 pled with the immediate difficulty. Estimating the entire private property 
 of the kingdom, on the lowest calculation, at two thousand five hundred 
 millions, it suggested that all such property, including all claims on the 
 government, in respect of money lent and advanced, should be declared 
 liable to a contribution of fifteen per cent. 
 
 In 1821, a " practical scheme " appeared, the leading points of which 
 were, — 
 
 That all the annuities must be consolidated, viz. : — 
 
 87 
 
Dividend Accounts. 
 
 The 3 per cents at 65 
 
 Sh " 78i 
 
 4i « 81 
 
 5 " 100 
 
 That an assessment of twenty per cent, be laid on all property and 
 funds so consolidated. 
 
 That an assessment of five per cent, be laid on private property not in 
 the British funds. 
 
 That fixed property, except buildings, be valued at twenty years' 
 purchase. 
 
 That this assessment be converted into a redeemable income-tax, at the 
 option of the proprietor, at five per cent, per annum. 
 
 That a similar assessment, for the term of ten years, be levied on net 
 profits of trade and agriculture. 
 
 In 1827, it was proposed to pay one half the debt by an assessment 
 of twelve per cent, upon the entire capital of the country ; and, in 1832, 
 another " practical plan " was suggested ; " to impose a loan of twenty 
 per cent, upon all the net real property, excepting those whose posses- 
 sions are less than £ 100 ; the amount to be paid either at once, or by 
 instalments, within five years." 
 
 To impose a tax of five per cent, for one year upon all incomes of not 
 less than £ 100 a year, arising from profits of artists and other profes- 
 sional men. 
 
 To abolish all internal taxes, excepting the land-ta^. 
 
 Other propositions have appeared, but they have been entirely disre- 
 garded. The evil day has been deferred, and will continue to be so ; 
 but it affects all good citizens to bear in mind that it must eventually 
 arrive ; and some future historian will record that the ruin of England 
 arose from the greatness of her national debt, because her citizens were 
 deficient in that abnegation of self which alone could grapple with a 
 great difficulty, save a great country, and alleviate the sufferings of a 
 patient and enduring people. 
 
 In 1817, the ministry debated the advisability of altering the mode of 
 registering the accounts of the national debt. Many complaints had been 
 made by bankers and merchants, of the long period employed by the 
 Bank of England in preparing for the payment of the dividends ; and 
 they contended that six weeks were unnecessary ; or, if necessary, that 
 some new method should be tried by which the annoyance might be 
 remedied. 
 
 The suggestion was taken into consideration, and the system of deben- 
 tures very generally debated. After much mature thought, it was decid- 
 ed that, though the plan answered very well with foreign securities, the 
 English debt was too gigantic, and the plan would involve too great a risk 
 to be entertained. After much discussion in the journals, and a few 
 questions in the House, the idea was abandoned ; nor was it until thirty 
 years from the above time, that the objection of the bankers was met ; 
 and, by the arrangements of Mr. William Ray Smee, now in operation 
 at the Bank of England, the stocks closed only three instead of six 
 weeks. 
 
 88 
 
Changes and Inventions. 
 
 CHAPTER XIII. 
 
 Progress of Invention. — Public Roads. — Steam. — Duke of Bridgeioaier. — 
 Canals. — Railroads. — Thomas Gray, their Pioneer. — His Difficulties. — 
 Proposals for the Liverpool and Manchester Railway. — Monopoly of the 
 Canals. — Parliamentary Inquiry. — Extraordinary Opinions of Witnesses. 
 — The Claims of Thomas Gray. — Value of Canal Property. 
 
 It is not unworthy of remark, that many of the greatest efforts of in- 
 tellect are within the scope of the writer ; as most of those works which 
 have from time to time benefited the world, both socially and physically, 
 have been assisted by the money power of England. Nor will the in- 
 quirer be backward in comparing the singular difficulties with which all 
 inventions requiring great capital contended in the last century, with the 
 remarkable facility which marks their progress in the present, if they 
 fairly promise, as most grand inventions do, to interest the entire com- 
 munity, and pay ten per cent. 
 
 The annals of invention have ever been those of opposition ; and the 
 history of locomotion has been singularly illustrative of this. The jour- 
 ney from city to city, and from county to county, was once painfully 
 slow. It is a subject of ridicule in the present day. A great feature 
 with novelists, a few years ago, was to represent the incidents of a long 
 inland journey. The memory of the reader will at once recur to " Tom 
 Jones," to " Humphrey Clinker," and to the humorous scene drawn by 
 the modern master of fiction in the opening chapter of " The Antiquary," 
 as some illustration of the liabilities of the traveller. 
 
 It is easier to ridicule than to reason, and safer to prophesy defeat 
 than to predict success. The minds of the mass generally depreciate 
 that which is beyond them ; some fancy that they elevate themselves by 
 lowering others ; while the many, who bigotedly view all change as evil, 
 doggedly refuse to acknowledge the good till they reap the fruit ; and it 
 is probable that the loudest grumbler in the railway-carriage of the pres- 
 ent day was the loudest declaimer against locomotives a quarter of a 
 century ago. 
 
 When the turnpikes were extended from the metropolis to the country, 
 many of the counties petitioned Parliament against so heinous an attempt 
 upon vested rights. The rustic gentleman grew eloquent upon the sub- 
 ject of rendering London accessible, and drew pictures of desolation, in 
 which the grass was to grow in the streets, in which rents were to be re- 
 duced, cultivation was to be lowered, and the producer ruined. The 
 toll-bars of the newly-made roads in the eighteenth century were torn to 
 the ground, and the blood of a prejudiced people was shed in their de- 
 fence. The first " flying coaches," though six days were employed to do 
 that which is now done in six hours, were met with invectives. It was 
 said that they would be fatal to the breed of horses and the art of horse- 
 8* 89 
 
y 
 
 Bridgewater Canal, 
 
 manship ; that saddlers and spurriers would be ruined ; that the inns 
 would be abandoned ; and, above all, the Thames, as the great nursery 
 of our seamen, would be destroyed. The post, that grand social benefit, 
 as denounced, in Charles II. 's reign, as a Popish contrivance ; and the 
 first attempt to light the streets — an attempt which only made darkness 
 visible — was vehemently attacked. 
 
 When the Margate steamboat, with its six hours' journey, superseded 
 the Margate hoy, which occupied almost as many days, the coach pro- 
 prietors, under the idea that Margate was their peculiar property, and its 
 visitors their particular prey, petitioned Parliament to support the coaches, 
 at the expense of the steamers. A century and a half since, it was 
 thought a great effort to run a coach between Edinburgh and Glasgow in 
 three days ; it is now done in one hour ; and, only a century since, it 
 occupied thirty-six hours in doing that which is now accomplished in four. 
 Although this tediousness of transit was partially owing to what were by 
 courtesy called roads, it must be remembered that then, as now, there 
 were the prejudices of the people with which to contend ; and, perfectly 
 content with the existing state of things, the country gentlemen were most 
 strenuous in their objections to the introduction of stage-coaches, on the 
 plea that their wives would lose their domestic habits through travelling 
 too frequently, and cease to be worthy housewives to the squirarchy of 
 England.* 
 
 The floor of the House of Commons was covered with memorials 
 from inkeepers and petitions from postboys. They merely indicated 
 the selfishness of the memorialists, tired the patience of the senators, and 
 wasted the time of the nation. But petitions in favor of " no progress " 
 were not the only mode of opposition. When the Lea was made navi- 
 gable, the farmers became furious, broke down the banks, and injured 
 the river. Still, with the progress of the nation, the roads continued to 
 Improve. Transit became easier, more rapid, and cheaper ; and just as 
 the world was congratulating itself on the perfection of its highways, a 
 new plan was proposed. 
 
 It soon became public, that a strange, eccentric nobleman, known as 
 the Duke of Bridgewater, had a queer crotchet in his head to create a 
 water-carriage, by cutting canals. It began also to be rumored, that this 
 same eccentric Duke, seriously determined to finish what he had com- 
 menced, had reduced his personal expenses to £ 400 per annum, and 
 given up the remainder of his rental to carry out his project. The 
 many had no hesitation in declaring him insane ; but his Grace scarcely 
 thought of their opinions as he proceeded with his task ; and the remark- 
 able firmness of the Duke of Bridgewater, aided by the great mind of 
 John Brindley, his architect, produced an effect which has already sur 
 vived the pecuniary results at which he aimed. It is impossible in the 
 present volume to 'do justice to the resolute character of the Duke, or to 
 
 * The road to Paddington, now known as the New Road, was hotly contested by 
 the Duke of Bedford, on account of the dust it would create, and the view it would 
 ahridge. Walpole wrote, that the Duke was never in town to feel the dust, and was 
 too short-sighted to see the prospect. 
 
 90 
 
Carriages of 1646. 
 
 the obstacles overcome by the skill of Mr. Brindley. Stupendous mounds 
 of earth were removed, which seemed to demand Titanic power ; suppUes 
 of water were procured sufficient to exhaust mountain springs and moun- 
 tain rivulets ; aqueducts were built far above the surface of the river, 
 rivalling those which conveyed water to the Eternal City from the moun- 
 tain recesses. 
 
 At last the prejudices of the ignorant multitude were uprooted, and the 
 scientific few delighted. They who had gone to scoff remained to praise ; 
 and an engineer, who had sneeringly said they had heard of castles in 
 the air, but now they were to see them realized, began to wonder as much 
 at his own opposition as at the simple grandeur of the work he had de- 
 rided. The chief business of the Duke's agent was to ride about the 
 country, borrowing money on the promissory notes of his Grace, whose 
 bond for £ 500 was refused in the city, where great purposes are little 
 regarded unless they promise a great percentage. 
 
 In five years the attempt was crowned with success, and the effect 
 upon commerce became manifest. Liverpool received the manufactures 
 of Manchester at a cheaper rate, and Manchester was supplied with 
 goods from places hitherto comparatively inaccessible. The neighbour- 
 ing woods and vales were visited by the pale denizen of the factory on 
 the day of rest ; and passengers were enabled to travel along that canal 
 which they owed to the patient endurance and undeviating firmness of 
 Francis, Duke of Bridgewater, and to the singular ability of his unrivalled 
 architect, to both of whom personal comfort and public praise were noth- 
 ing in comparison with the achievement of a great idea. 
 
 But a new power was in progress, which was to realize all the visions 
 of a day-dreamer, and almost to annihilate both time and space. The 
 progress and development of railways is one of the most interesting 
 features in locomotion. About 1646, a Mr. Beaumont was ruined in 
 attempting to convey coals in carriages of a novel construction. The 
 necessity of some improvement in the conveyance of this article was, 
 therefore, thus early recognized. Thirty years afterwards, a saving of 
 thirty per cent, was effected by some tram-roads near Newcastle ; and as 
 information spread, and the great dogma that time is money began to be 
 appreciated, further improvements were made. The wooden roller of 
 the wagon was changed for an iron wheel with cast-iron rails. Plenty of 
 claimants were found for this imperfect alteration, although soon after it 
 was necessary to adopt a rail fixed a few inches above the ground. The 
 next improvement was that which detached the horse, and made him 
 follow the wagon ; and when the road was constructed with two inclines, 
 so that a descending train of loaded coal might draw up an empty one, 
 it was thought that all which human ingenuity could effect had been 
 achieved ; and at this point it is probable the rail would have remained, 
 but for the great discovery of steam-power, and its application to prac- 
 tical purposes. About 1760, coeval with the introduction of iron rails. 
 Watt entertained the idea of employing steam as a moving power ; but 
 the design was abandoned ; nor was it till 1802 that the attention of en- 
 gineers was devoted to locomotive engines on railroads ; when a pa- 
 
 91 
 
Thomas Gray, 
 
 tent was taken out, and the principle tested with success at Merthyr 
 Tydvil.* 
 
 The name of Thomas Gray in connection with railroads ranks at pres- 
 ent among the many whose ideas were derided by the very men who 
 afterwards adopted them. From an early period he formed the opinion 
 that railways would become the principal mode of transit. It was his 
 thought by day ; it was his dream by night. He talked of it until his 
 friends voted him an intolerable bore. He wrote of it until the reviewers 
 deemed him mad. Coaches, canals, and steamboats were, in his mind, 
 useless. His wisdom and far ken shadowed forth the path which the 
 purse of others consummated ; and, while the projector died steeped to 
 the lips in poverty, the speculators realized great profits. His conversa- 
 tion was of a world which his companions could not comprehend. To 
 appropriate the idea of Mr. Macaulay, there were fools then as there are 
 fools now ; fools who laughed at the railway as they had laughed at the 
 canals ; fools who thought they evinced their wisdom by doubting what 
 they could not understand. For years his mind was absorbed by these 
 dreams ; and there was something magnificent in all his projects. He 
 talked of enormous fortunes realized ; of coaches annihilated ; of one 
 great general line ; — and he was laughed at. He went to Brussels ; and 
 when a canal was proposed, he again advocated railways. At last he 
 put his thoughts into form ; wrote " Observations on a Railroad for the 
 Whole of Europe "; and was ridiculed ; the work being suppressed, lest 
 men should call him mad. In 1820, however, he published a book which 
 he called, " A general Iron Railway, or Land Steam Conveyance," 
 which attracted great notice. There was something so pertinacious in 
 the man, and something so simple in his scheme, that, though it became 
 the custom to laugh at him, his book went through many editions. When 
 from Belgium he came to England, true to his theme, he went among the 
 Manchester capitalists. The men who passed their lives among, and 
 owed their fortunes to the marvels of machinery, were not yet equal to 
 this. They listened graciously, and with a smile, something akin to 
 pity, dismissed him as an incorrigible visionary. But opposition was 
 vain ; nor was Thomas Gray the man to be easily laughed down. He 
 continued his labors, he continued to talk, to memorialize, to petition, 
 to fill the pages of magazines, until the public mind was wearied and 
 worried. 
 
 The first result of Gray's great scheme was with the capital of those 
 men who had previously derided him. The men of Manchester found 
 they were paying too much for the cost of conveyance, and availed them- 
 selves of the idea they formerly denounced. A railway was projected 
 between Liverpool and Manchester, and then commenced that ignorant 
 opposition, of which one of the blue books contains such pregnant proof. 
 
 =* The attempt of Mr. Ogle to run locomotives on the public roads must have cost 
 him many thousands ; and nothing but the same popular prejudice which attempted 
 to prove that engines on railroads would send horses mad with fright, prevented this 
 great attempt from becoming general. The reader must remember the grave shaking 
 of heads which met Mr. Ogle's cherished design, as similar heads have always been 
 shaking at novel propositions. 
 
 92 
 
Liverpool and Manchester. 
 
 By this it appears clearly that the transit between Liverpool and Man- 
 chester had long been insufficient. It was stated in evidence, that places 
 were bespoke for goods, like places at a theatre. " It is not your turn 
 yet," was a common reply, if extraordinary energy were required ; and~^ 
 It was clearly proved that the monopolizers would only send as much 
 cotton as they chose, arbitrarily fixing the quantity at thirty bags a week. 
 The fifty-five miles by canal occupied as long as the distance to New 
 York. The boats were too few to convey the goods ; and on one canal 
 the proprietors received for their yearly dividend the amount of their 
 original investment. In vain were the agents importuned to render con- 
 veyance more rapid and less expensive. The monopoly remained with 
 the owner of the canal, who, blinded by a long course of success, could 
 not see that, with the increase of business, an increased communication 
 must be opened ; and it is singular that, when the railroad was first con- 
 templated, and its promoters applied to the agent to take some shares, an 
 answer worthy of an autocratic government rather than a commercial 
 age was given, of " all or none." The shrewd merchants of the North 
 chose the latter alternative. 
 
 The difficulties, therefore, with which the new invention had to con- 
 tend, were legion ; and the Parliamentary inquiry, already alluded to, 
 produced one of the most remarkable blue books ever published. A few 
 extracts from the folio will evince the extraordinary ideas entertained on 
 the subject, the extraordinary ignorance evinced by men regarded as 
 scientific, and the yet more extraordinary prejudice which marked the 
 progress of opinion on railway transit. It is, however, right to say, that 
 the friends and foes of the proposed scheme were equally unscrupulous 
 in their endeavours to forward their interests, as levels were taken with- 
 out permission, strawberry-beds destroyed, cornfields trodden down, and 
 surveys taken by night, at the risk of life and limb. On the other hand, 
 guns were discharged at the intruders ; the land was watched incessantly ; 
 and the enthusiasm of the great engineer of the line narrowly escaped 
 being cooled in a horsepond. 
 
 The objections urged by the opponents of the railway were worthy their 
 cause. It was contended by them that canal conveyance was quicker ; 
 that the smoke of the engines would injure the plantations of gentlemen's 
 houses ; and one witness, more imaginative than perceptive, described the 
 locomotives as " terrible things," although, on further questioning, he 
 admitted he had never seen one. It w£is boldly declared, that a gale of 
 wind would stop the progress of the carriage ; that there would be no 
 more practical advantage in a railway than in a canal ; that Mr. Stephen- 
 son was totally devoid of common sense ; that the plan was erroneous, 
 impracticable, and unjust ; and that the tendency of the railway would be 
 to increase the price of carriage. It was declared to be based on fraud 
 and folly ; that balloons and rockets were as feasible , and that the whole 
 line would be under water for two and three weeks in succession. 
 
 " It is quite idle and absurd," said one, " to say the present scheme 
 can ever be carried into execution, under any circumstances, or in any 
 way." " Whenever," said another, with the authority of an oracle, 
 " Providence in Lancashire is pleased to send rain or a little mizzling 
 
 93 
 
Opposition to Railways. 
 
 weather, expeditious it cannot be." A third gave it as his opinion, that no 
 engine could go in the night-time. " because," he added, more Scrip- 
 turally than soundly, " the night-time is a period when no man can 
 work ! " 
 
 It was said that no one would live near a spot passed by the engines , 
 that no houses would let near a station ; and that all property on the line 
 would be frightfully deteriorated. Not content, however, with proving 
 the impracticability of the plan, the most frivolous causes were adduced 
 to show why this, the grandest national project ever brought forward, a 
 project which has changed the face and features of the land, the com- 
 merce of the country, and the social habits of the rural population, should 
 not be allowed to pass. 
 
 The public services of a railroad were put in competition with the an- 
 noyance which an individual would receive from the smoke of the engines 
 coming within 250 yards of his house ; and it was pathetically asked, 
 " Can any thing compensate for this ? " Gentlemen objected because it 
 would injure their prospects, and land-owners because it would injure their 
 pockets ! Pictures of ancient family residences destroyed by the smoke 
 were vividly drawn. The claims of unprotected females and reverend 
 gentlemen were strongly urged ; and pathetic representations were given 
 of families, who had lived for centuries in their ancestral home, leaving 
 the dwelling-place of their youth, and going to another part of the town. 
 
 " Mr. Stephenson," it was boldly declared, " is totally devoid of com- 
 mon sense. He makes schemes without seeing the difficulties." " Upon 
 this shuffling evidence, we are called to pass the bill." " It is impossible 
 to hold this changing Proteus in any knot whatsoever." " It is the great- 
 est draught upon human credulity ever heard of." 
 
 " There is nothing," said one, " but long sedgy grass to prevent the 
 train from sinking into the shades of eternal night." " They cannot go 
 so fast as the canal," said another. A third appealed to the pocket. 
 " If this bill succeeds, by the time railroads are set going, the poor, 
 gulled subscribers will have lost all their money ; and, instead of loco- 
 motive engines, they must have recourse to horses or asses, not meaning 
 to say which." Those whose interests would be affected decided that 
 " locomotives could not succeed "; and numberless were the sneers at 
 the idea of engines galloping as fast as five miles an hour. One sapient 
 gentleman thought the trains might go at four miles and a half in fine 
 weather, but not more than two and a half in wet. 
 
 " When we set out with the original prospectus," was the remark of 
 the counsel, " we were to gallop I know not at what rate. I believe it 
 was twelve miles an hour, with the aid of a devil in the form of a loco- 
 motive sitting as postilion on the fore-horse, and an honorable member 
 sitting behind him to stir up the fire, and keep it up at full speed. I 
 will show they cannot go six. I may be able to show we shall keep up 
 with him by the canal." " Thus, Sir, I prove that locomotive engines 
 cannot move at more than four miles and a quarter an hour ; and I show 
 the scheme is bottomed on deception and fallacy." 
 
 Turnpike trusts were to be ruined, and therefore railroads were not to 
 be forwarded ; and it was deemed unanswerable to say that the canal 
 
 94 
 
Thomas Gray and Lord Egerton, 
 
 interests would be hurt by the rail. Though it was proved by others that 
 more money had been offered for land if the line passed through than if 
 it did not, it was of no importance in the eyes of those who, blinded by 
 selfishness, refused to be convinced. The war-cry on one side was the' 
 venerable " vested rights " ; on the other, " progress." 
 
 Men prosily and pathetically talked of tempting Providence by travel- 
 ling at the rate of twelve miles an hour. The fine breed of English 
 horses would be deteriorated, and our cavalry be worsted at the first on- 
 set. The prosperity of a great community was said to be involved in the 
 contest ; and the question whether a few miles of railway would peril 
 the welfare of the kingdom, was openly discussed. Stable-boys joined 
 in the contest, and urged the greatness of their claim ; the porters proved 
 how important a class would be sacrificed to so unimportant an end ; and 
 the clergy, alarmed lest the rustic should neglect the Sunday sermon to 
 see the passing train, added to the number of petitions. A million horses 
 were to be thrown out of service, and eight millions of oat-growing acres 
 to be abandoned. Gentlemen with neither sense nor science wrote 
 treatises to demonstrate the danger of travelling more than ten miles an 
 hour, and, at the same time, left on record their want of sympathy with 
 crack-brained speculators. 
 
 But if the opponents were thus bitter in their attack upon the new 
 scheme, they were equally ingenious in their defence of the canal. It 
 was described as never subject to drought ; the frost never stopped it ; 
 the sun never lowered it ; accidents never happened on it. Its friends 
 were also hardy enough to contend, that a saving of nine miles an hour 
 was not sufficient to justify the attempt ; and " therefore," added one 
 who supported this argument, " I do protest against the despotism of the 
 Exchange at Liverpool striding across the land of this country." The 
 reply to all these objections is in the fact that some thousands of miles are 
 now open to the public. 
 
 The Manchester and Liverpool Railway succeeded ; but no reward was 
 conferred upon Thomas Gray. Other railways followed, and were suc- 
 cessful ; but no notice was taken of Thomas Gray. The great railway 
 mania came ; but Thomas Gray was nothing in the eyes of excited 
 speculators, greedy of gain. An endeavour was made by some of the 
 friends of Gray to win for him the public sympathy ; and the poor, old, 
 broken-hearted man, when he respectfully begged for a situation on one 
 of those railways which he had so greatly forwarded, was refused. 
 
 " The claim of Gray," said the Westminster Review^ " is, that he 
 found the railway and the locomotive in the condition of mere miners' 
 tools, dragged them to light, and proclaimed them as the means of uni- 
 versal progress. He published a practical plan, in 1820, which was 
 scoffed at on all hands ; but in 1830 was made a fact by George Stephen- 
 son, though in 1829 it was almost considered a certain thing that the 
 -haulage on the Liverpool and Manchester would either be performed by 
 horse-power or by stationary engines." 
 
 The truth of these assertions has never been called in question. The 
 railway press has generally recognized it. Public subscriptions for the 
 public benefactor were proposed. A petition in his favor was forwarded 
 
 95 
 
Speculations in 1824. 
 
 to the House of Commons. But Thomas Gray was poor, and without 
 influence ; and has added another name to those who have benefited and 
 been buffeted by mankind. Neglected by the directors of the great 
 works he had pioneered into existence ; neglected by the state, whose 
 profits from railway stamps and railway duties are mainly owing to him ; 
 neglected by the great mass of men, who avail themselves of the con- 
 veyance which once they derided ; the " railway pioneer," that title which 
 to the last he so dearly loved, died steeped to his lips in poverty, while 
 the speculators reaped large gains. 
 
 It is a curious circumstance in financial history, that Lord Francis 
 Egerton, the representative of the great canal projector, received shares 
 which produced a clear profit of more than £ 100,000, to prevent his 
 opposition in the House of Peers ; although it is a most suggestive fact, 
 that, with the increase of railway travelling, canal property has abso- 
 lutely improved. The following is the price of shares in 1824 : — 
 
 Original Cost. 
 £140 
 
 OLD BIRMINGHAM CANAL. 
 
 Value in 1824. 
 £2,840 
 
 Annual Dividend. 
 £100 
 
 £140 
 
 STAPPOED AND WOECE8TEE. 
 
 £960 
 
 £40 
 
 £200 
 
 TEENT AND MEESET. 
 £4,600 
 
 £150 and bonus. 
 
 CHAPTER XIV. 
 
 Monetary Excitement. — Approaches to the Stock Exchange. — Gold Company. 
 — Equitable Loan Company. — Frauds in Companies. — Loan to Foreign 
 States. — Poyais Bubble. 
 
 The excitement of 1824 and 1825 has usually been considered in 
 reference to banking and the Bank of England. It is the writer's pres- 
 ent purpose to draw attention to the social and moral evils of the pe- 
 riod ; and, by a simple detail of some curious incidents and dangerous 
 adventures arising out of it, to draw attention to the great and crying 
 iniquities which obtained. 
 
 The readiness with which shares were attainable first created a class 
 of speculators that has ever since formed a marked feature in periods of 
 excitement, in the dabblers in shares and loans with which the courts and 
 crannies of the parent establishment were crowded. The scene was 
 worthy the pencil of an artist. With huge pocketbook containing worth- 
 less scrip ; with crafty countenance and cunning eye ; with showy jew- 
 elry and threadbare coat ; with well-greased locks and unpolished boots ; 
 with knavery in every curl of the lip, and villany in every thought of the 
 heart ; the stag, as he was afterwards termed, was a prominent portrait 
 
 96 
 
New Mining Companies. 
 
 in the foreground. Grouped together in one corner might be seen a 
 knot of boys eagerly buying and selUng at a profit which bore no com- 
 parison to the loss of honesty they each day experienced. Day after 
 day were elderly men, with shabby faces and huge umbrellas, wit- - 
 nessed in the same spot, doing business with those whose characters 
 might be judged from their company. At another point, the youth, just 
 rising into manhood, conscious of a few guineas in his purse, with a 
 resolute determination to increase them at any price, gathered a group 
 around, while he delivered his invention to the listening throng, who 
 regarded him as a superior spirit. In every corner, and in every vacant 
 space, might be seen men eagerly discussing the premium of a new 
 company, the rate of a new loan, the rumored profit of some lucky spec- 
 ulator, the rumored failure of some great financier, or wrangling with 
 savage eagerness over the fate of a shilling. The scene has been appro- 
 priated by a novelist as not unworthy his pen. " There I found myself," 
 he writes, " in such company as I had never seen before. Gay sparks, 
 with their hats placed on one side, and their hands in their breeches 
 pockets, walked up and down with a magnificent strut, whistling most 
 harmoniously, or occasionally humming an Italian air. Several grave 
 personages stood in close consultation, scowling on all who approached, 
 and seeming to reprehend my intrusion. Some lads, whose faces an- 
 nounced their Hebrew origin, and whose miscellaneous finery was finely 
 emblematical of Rag-fair, passed in and out ; and besides these, there 
 attended a strangely varied rabble, exhibiting, in all sorts of forms and 
 ages, dirty habiliments, calamitous poverty, and grim-visaged villany. 
 It was curious to me to hear with what apparent intelligence they dis- 
 cussed all the concerns of the nation. Every wretch was a statesman ; i 
 and each could explain, not only all that had been hinted at in Parlia- \ 
 ment, but all that was at that moment passing in the bosom of the Chan- j 
 cellor of the Exchequer." 
 
 The entrance to the Stock Exchange became at last so choked up, that 
 nothing but a fine of ^ 5 on those who stopped the way had any effect 
 in dispersing the nuisance. 
 
 Among the companies which sprung up daily was one to make gold ; 
 and success was declared to be undoubted. The shares were all greedily 
 taken ; and it was then advertised, that, as the expense of producing one 
 ounce of gold would cost double the value of the produce, the company 
 would be dissolved, and the deposits kept to pay expenses. 
 
 The capital of a mining company was divided between fifty propri- 
 etors, whose advertisements and puffs were disgraceful. The meanest 
 utensils of the peasantry were declared to be silver ; and, although there 
 were but ninety-mne mines in the whole district, the company professed 
 to have purchased 360. In a place containing 5,000 inhabitants, it was 
 affirmed the projector possessed 3,000 mines ; and, although they had 
 been previously abandoned after a loss of £ 170,000, they were pur- 
 chased at a high price, and puffed to an enormous premium. 
 
 The Equitable Loan Company was another specimen. In paragraphs 
 calculated to excite the sympathy of the public, the directors denounced 
 the profits of the pawnbroker, arraigned his evil practices, and delicately 
 9 97 
 
Equitable Loan Company. 
 
 concluded by hinting that a company formed upon the most philanthropic 
 principles, and paying forty per cent., would soon be formed. The 
 philanthropy might have been proclaimed for centuries, but forty per 
 cent, was irresistible. The Duke of York good-naturedly lent his name ; 
 members of Parliament were bribed with shares ; and when it was hon- 
 estly said by one, that the bill would never pass the House, the trium- 
 phant reply given was, " O, we have so many on the ministerial, and 
 so many on the opposition side, and we are sure of the saints ! " The 
 shares, however, went to a discount ; both opposition and ministerial 
 members lost all interest in the nefarious doings of the pawnbrokers, and 
 the philanthropy of the saints faded with the fading vision of forty per 
 cent. 
 
 The Bolivar Mining Company boasted of " mountains, not mines," of 
 metals. A railroad was projected to cross from Dover to Calais. A loan 
 of £ 225,000 was proposed for Patagonia ; another in derision advertised 
 for the Lilliputians and Houyhnhnms of Swift's political satire ; and, to 
 assist them all, a parliamentary steam company announced to pass more 
 rapidly the bills before the House. 
 
 At the formation of another mining company, the utmost magnanimity 
 was evinced. Rules were passed that none of the directors should hold 
 more than 200 shares, that all which remained should be brought hon- 
 estly into the market, and that every thing should be fair. But this 
 moderation waxed weaker as their power increased. Thousands of 
 shares were allotted among the managers, and locked carefully up. A 
 resolution was passed, that no director or officer should be required to pay 
 deposits ; and then, employing the most respectable brokers to purchase 
 1,000 shares with the money of the company, they created a sensation 
 in the market, and sent them to a premium. The person who sold the 
 mines to the company was employed to report upon their value. Opin- 
 ions the most flattering were given of property absolutely worthless ; 
 and, as a proof of the greediness of one party and the incapacity of the 
 other, it may be mentioned that a mine, the full value of which was 
 ,£400, was purchased at .£11,000; and that £121,000 were paid for 
 some which, in almost every instance, were exhausted. 
 
 When the Lower 'Rhine Steam-Navigation Company was announced, 
 it became a great favorite. Large quantities were sold for the account ; 
 and, as the settling time approached, the premium rose to 28. The 
 sellers were unable to deliver the shares, and their difficulties became 
 serious. To meet them, new receipts were printed, closely imitating the 
 old, the name only of the banker being changed. The deceit was dis- 
 covered. A committee sat to elucidate the fraud, and the supposed con- 
 coctor was expelled from the Stock Exchange. The circumstance ex- 
 cited great attention at the time ; and many more were said to be impli- 
 cated than it was in the power of the committee to reach. 
 
 Another peculiar feature of the period was to be found in the loans 
 which preceded and accompanied the memorable era when the public 
 was wild to lend its capital to foreign states, and the resources of the 
 borrowers were scarcely regarded. The dividends of the English funds 
 were scoffed at ; the general rate of percentage was increased in the 
 
 98 
 
'^l 
 
 South American Loans. 
 
 eyes of the many ; Patagonian or Lilliputian securities, which promised 
 eight per cent., were eagerly looked for; and solid loans were followed 
 by visionary dividends. 
 
 It is a somewhat curious fact, that directly the Navy five per cents 
 were reduced, the people rushed wildly into new securities to retrieve 
 their loss, and missed in the promises of the one the certainty of the 
 other. In 1822, foreign states which, in some cases, had not even at- 
 tained the freedom for which they fought, became creditors to the Eng- 
 lish public to the amount of £ 10,150,000. 
 
 Chili, after a protracted resistance to the mother country, found success 
 followed its efforts. Lord Cochrane gave his powerful support to the na- 
 vy ; and, in 1818, a large tract of coast was declared by him in a state of 
 blockade. The vigor of his Lordship proved too much for the royalists ; 
 and in a short period a free constitution, with a popular government, was 
 appointed. But neither the free constitution nor the popular government 
 could do without money. The Chilian republic, therefore, borrowed one 
 million of the English people, at six per cent., and, having received the 
 cash, thought it unnecessary to pay the interest after 1826. 
 
 Peru, a place so interesting to the historic reader, from its early dis- 
 covery, its connection with the Spaniards, and the cruelties of Pizarro, 
 exhibited another specimen of loan-contracting. After years of violent 
 commotion and of resolute resistance, her independence was proclaimed ; 
 but independence did not produce quiet, and the name of Bolivar became 
 known in a sanguinary and protracted war. The Spaniards refused qui- 
 etly to yield their territory ; Lima surrendered to Spanish troops ; and 
 though they were dispossessed by Bolivar, and Peru became safe from 
 subjugation, doubt, distrust, and anarchy remained. During this period, 
 the opinion of the English people may be guessed from the fact, that they 
 lent, in 1822, ^450,000 at six per cent., and that it was contracted for at 
 eighty-eight per cent. 
 
 Colombia, which only dates its history as a nation from 1819, followed. 
 During the contest which preceded its independence, the insurgents were 
 supplied with implements of war and ammunition from this country, on 
 the security of debentures bearing ten per cent, interest ; and when the 
 great battle, in which Bolivar the hero of American independence ob- 
 tained a complete victory, and consummated the freedom of Colombia, 
 was fought, the new state borrowed two millions at eighty-four per cent. 
 
 Poyais was another instance of English liberality. .£200,000 were 
 lent on a security so visionary, that not one dividend was ever paid ; 
 while sadder and more sorrowful effects than this followed. Adventures 
 which commercial history has rarely paralleled marked its progress ; and 
 sufferings, which make us shudder at the recital were the result of the 
 delusion. But little known out of a particular circle, the name of the 
 Poyais settlement is never mentioned there but with feelings of unmiti- 
 gated detestation. 
 
 A Scotchman, named Gregor MacGregor, claiming to be chief of the 
 clan which bears his name, formed the' idea of creating a settlement on 
 the shores of the Black River. The first appearance of this man in a 
 public character was in the service of the patriots of Spanish America. 
 
 99 
 
The Poyais Fraud. 
 
 Under the florid title of " General of Brigade of the Armies of the United 
 Provinces of New Granada and Venezuela, and General-in-chief of the 
 Armies destined against the Floridas," he succeeded in seizing a place 
 known as Amelia Island, which he proposed to use for purposes of ag- 
 grandizement. His views proving fallacious, he vacated it, and was next 
 heard of as carrying, with a trifling force, the rich town of Portobello. 
 Here he addressed to his men a manifesto, in which gold and glory, plun- 
 der and patriotism, equally occupied its periods. Scarcely was it issued, 
 however, ere the force of MacGregor was surrounded, and the great gen- 
 eral could only save his life by leaving his followers, leaping out of the 
 window in his shirt, and swimming on board his ship. It is probable that, 
 during these campaigns, the idea of a settlement first occurred to Mac- 
 Gregor, as, not long after their conclusion, he proposed a plan of emigra- 
 tion about to be related ; a plan by which colonization was to extend to 
 that part of America known as the Mosquito country. The more pleasing 
 title of Poyais was given ; the Stock Exchange was employed to circulate 
 some bonds for a loan of .£200,000, at eighty per cent., on the security 
 of the country ; and a land renowned for its inhospitable climate was 
 puffed into a most undeserving celebrity. Every device of human in- 
 genuity was practised. Books were published in which the climate of 
 paradise seemed uncongenial by that of Poyais. The air was soft and 
 balmy ; the sun and sky were alike fructifying ; the soil yearned to yield 
 its fruits ; the water ran over sands of gold. Grain was to grow without 
 sowing. Tortoise-shell, diamonds, and pearls were plentifully promised ; 
 and, to the least imaginative, the most glowing realms of the Pacific grew 
 pale in comparison with a region where the sun was ever bright, and the 
 soil ever yielding. Labor would be superseded, life commenced in hard- 
 ship would end in luxury ; while gorgeous pictures of " the finest climate 
 and most fertile place in the world," excited the undisciplined imagina- 
 tion of those who had the money necessary to convey them thither. A 
 song, to be paid for by a company of Poyais lancers, was chanted in the 
 streets ; and the attention of the passing crowd was attracted by hired 
 ballad-singers. The new home was to be graced with a knight of the 
 Green Cross, a colonel to command, three legislative houses to guide its 
 affairs, and a sovereign in the person of Gregor MacGregor, under the 
 romantic title of Cacique of Poyais. An agent was employed to make 
 sales of land, and, unhappily, the applicants were numerous. 
 
 Nor was this all. An engraving was published, in which a church 
 attracted the religious sympathies of some, and a bank the mercenary 
 thoughts of others ; while a theatre gave an air of civilization and luxury 
 the scene. 
 
 Tempted by such descriptions, two hundred and fifty persons em- 
 barked for the land of promise ; their lives, their fortunes, and their 
 families engaged in a scheme which led to destruction. The mere ad- 
 venturer was drawn by the beauty of the settlement, the fineness of the 
 climate, and the hope of making a fortune. The son of the soil, who had 
 amassed a capital which in Great Britain was unable to save him from a 
 poor-house, but promised in Poyais a sufficiency for life, gathered his 
 family together, sold his little furniture, reserving, with Scottish piety, the 
 
 100 
 
King of the Mosquitos. 
 
 Bible which had often consoled his Scottish hearth, and sought an un- 
 known clime, and a new home for his household deities. Notes, payable 
 at the Bank of Poyais, were given in exchange for notes of the Bank of 
 Scotland, under the plea that the latter would not circulate in the Mos- " 
 quito country. At length, the barks which were to conduct the settlers 
 were entered at Leith harbour ; and under different auspices, but with 
 similar results to those which marked the Darien expedition from the 
 same port, they left the spot which many were destined to see no more. 
 
 Their arrival at the Black River was ominous. As their vessel neared 
 the new country, a gun was fired, and colors hoisted, to announce the 
 coming of the emigrants. Every moment they looked anxiously out 
 for some symptoms of the settlement. Every eye was strained to see the 
 spire of the church which, in all their dreams, had decorated their home. 
 Every heart beat with a strange, unwonted anxiety as they came near the 
 place which had been pictured in such vivid colors. No great powers of 
 imagination are necessary to conceive their watchful expectation, as hour 
 after hour passed, and their signals remained disregarded ; or with what 
 a bounding joy they must have seen the first boat, conveying three white 
 people, approach the ship. The delusion was brief; and a few words 
 damped their hopes and destroyed their visions, by the information that 
 it was a savage, sterile, and desolate spot. Greatly dispirited, they com- 
 menced a sad and sullen journey up the creek. With a burning sun and 
 sky above, no traces of civilization around, exhausted by the climate, and 
 galled by insects which the heat of the air nourished in great size, they 
 proceeded with an almost funereal melancholy to their city of refuge. 
 The young and ardent asked for gold and gems ; the old and cautious 
 looked at the situation, as, with an anxiety they could not conceal, they 
 questioned of the soil, its capabilities, and its cultivation. " Lo ! " wrote 
 one who suffered greatly in this disastrous expedition. " Lo ! they said it 
 was all swampy." By the shades of evening they landed, and eagerly 
 looked for their future home. It was too dark to see where the old town 
 of St. Joseph's formerly stood, as its site was covered with bushes ; and 
 new town there was none, save a couple of huts, scarcely worthy the 
 name. The next day, the terrible heat of the climate demanded shelter ; 
 but, with every possible exertion, it occupied three days in clearing suf- 
 ficient ground for their habitation. Some wept at sight of the desolate 
 spot ; others gnashed their teeth ; while many, yielding to despair, threw 
 themselves on the ground, and declared themselves abandoned of God 
 and man. The more hopeful were employed in pitching tents, and had 
 scarcely commenced landing the goods, on which their safety depended, 
 when a great gale arose, and the vessel was blown away ; nor did they 
 hear of her until a month had elapsed. Their situation was not only 
 painful and perilous, but almost hopeless. Hardy as they were, and fit 
 to battle with any fate, they bore with them those for whose safety they 
 would gladly have perilled their lives. 
 
 The young child and the aged grandsire, alike incapable of restraining 
 
 their wants and wishes, were there. The mother and the infant, the 
 
 maiden and the matron, had each her representative. " Bushes were 
 
 around, and the moon above," wrote one of the survivors. Night brought 
 
 9* 101 
 
Failure of the Poyais Bubble. 
 
 its fearful malaria, day its yet more fearful sun ; and who can imag- 
 ine the first dig of the spade which, as it sunk deeply into a soil, half 
 mud and half water, sunk more deeply into the heart of the unhappy 
 agriculturist. They sowed corn, and the sun withered it as it rose from 
 the ground. They planted potatoes, and as they sprung up, they perished 
 from the great heat. A further danger appeared to the settlers. They 
 were told by the king of the Mosquito nation, that no grant would be 
 recognized by him, and that they must acknowledge allegiance or quit 
 his territory. In these circumstances, it was deemed advisable for a 
 deputation to wait upon his Majesty ; and over sandy beaches they took 
 their way. Weak from want of food, weary from want of rest, their 
 journey proved one of toil and trouble. The rainy season was fast ap- 
 proaching ; sickness and death decimated the wanderers ; and vainly did 
 they make desperate efforts to avert their impending fate. One party 
 procured a boat, and started in search of aid ; but, unhappily, forgetting 
 to take water, died ere it could attain help. Others bought a canoe, and, 
 with Indians to guide them, were scarcely at sea, ere their treacherous 
 companions plundered and flung them overboard. Those who remained 
 had yet to be acclimated ; and sickness added to the sufferings they had 
 already endured. Eating salt provisions, drinking impure water, bum 
 ing by day and shivering by night, on the borders of a creek which bred 
 disease, with a fatal malaria around, they were unable to resist the ague, 
 which in its worst form seized upon them. Without help and without 
 hope, far from home, in an inhospitable country, sickness seized upon 
 one and all. It spared neither age nor sex, neither strength nor decrep- 
 itude. The most resolute fell beneath its power ; the weakest felt its 
 fatal influence ; and so fearfully was the colony at one time situated, that 
 not one could lift a finger to assist the other. Death ensued ; and the 
 only portion of the soil gained by many was that which gave a grave. 
 The mortality was two thirds. 
 
 But these were not the only evils. In September, 1824, it was said, 
 " Another thing, in the shape of a Poyais loan, has been brought into the 
 market." Great as the excitement was, there were not many disposed 
 to risk their money ; but those who did were persons who had saved a 
 small amount, which, though insufficient to live upon, was sufficient to 
 excite a desire for more. By this class a considerable sum was ad- 
 vanced ; and the ruin which fell upon them was tremendous. Their 
 despair was loud, but useless. The Poyais loan was an epoch from which 
 many dated for the remainder of their lives ; and the figure of one of 
 these unhappy speculators must still be familiar to some readers, as she 
 wandered daily through the offices of the Bank of England, and the pur- 
 lieus of the Stock Exchange, exposed to all the annoyances which fall 
 upon those who earn their bread in the public thoroughfares. The 
 Poyais scrip was destined to a lower employment still. It was used 
 during the mania for foreign loans in 1836, as a mode of jobbing, the 
 turn in which, suited to the pockets of those who dealt in it, varied from a 
 halfpenny to a penny, according to the demand. 
 
 Emigration received a great shock ; and " to be served like the Poy- 
 ais settlers " was a common excuse of the poor and unthinking. If, how- 
 
 102 
 
Loan to Guatemala, 
 
 ever, the Stock Exchange proved indirectly injurious to the great cause 
 in this instance, one of its members has done more towards its assistance 
 than is often effected by individual exertion. The efforts of Mr. Benja- 
 min Boyd will form an important chapter in some future history of our 
 Australian colonies ; as, from his determined energy, an impulse has been 
 given to emigration which no future official supineness can eradicate. 
 
 Steam-navigation to Australia is greatly desirable ; and governments 
 which, as the present volume proves, often lavish their money unworthily, 
 should at least be ready to assist in achieving so great and beneficial a 
 fact. All local objections are overcome. The difficulty of the " barrier 
 reef" is proved to be an idle dream ; and the time will yet arrive when 
 men will wonder that a few thousand pounds should for years have re- 
 tarded steam-navigation to colonies important alike to the commerce, the 
 comfort, and the civilization of England. The writer gives the following, 
 to show that the few words he has said are not unsupported : — 
 
 " We unhesitatingly and confidently reply, that for all this the colony 
 has to thank Mr. Benjamin Boyd. With this gentleman solely the move- 
 ment originated ; by him and his family it has been maintained and sup- 
 ported. To this cause Mr. Boyd has devoted his individual labor ; he has 
 lavished his wealth on it ; he has enlisted in it the activity and talent of 
 his own relations, and that of their numerous and influential friends ; he 
 has supplied them with information and advice, and urged on their flag- 
 ging zeal, when requisite, up to the formation of the Colonization Society, 
 and the commencement of the Colonization Crusade now in progress. 
 And in this course he has persevered, in spite of obstacles cast in his 
 way by the colonists themselves, in spite of obloquy and ridicule from 
 men who were to benefit by his exertions, but on whose ignorance and 
 supineness his stirring activity was a bitter and ceaseless censure." 
 
 CHAPTER XV. 
 
 Loan to Guatemala. — Dispute concerning it. — Greek Loan. — Its Mismanage- 
 ment. — Asserted Jobbing. — Mr. Hume. — Dr. Bowring. — Quarterly Re- 
 view. — Proposed Tax on Transfers. 
 
 Guatemala was a further specimen of loan-making. According to 
 custom, Barclay & Co. announced that they were appointed agents to the 
 above state, and were prepared to receive tenders for a loan to the amount 
 of ^1,500,000. The house of Powles & Co. stood highest on the list; 
 and it was publicly stated that their offer of sixty-eight per cent, was ac- 
 cepted. The first payment was to be made on the 22d of September, 
 1825 ; and should either of the instalments not be paid, those previously 
 received were to be forfeited. The price was considered low ; and Mr. 
 Alderman Thompson took £ 10,000 of the loan, at an advance of five 
 
 103 
 
Continental Loans. 
 
 per cent., paying i^4000 as a deposit to Barclay & Co., as the agents. 
 When the sixth instalment became due, Powles & Co. advised Mr. 
 Thompson not to pay it, as a serious disagreement had arisen between 
 the government of Guatemala and their agents. 
 
 It appeared that Barclay & Co. had induced Powles & Co. to allow 
 their names to appear as contractors for the whole, while Barclays were 
 the real possessors of a million of that stock, the whole of which they pub- 
 licly announced had been taken by Powles. The news, however, reached 
 South America ; and the government, indignant at this conduct, repu- 
 diated the acts of Barclay, refusing to pay any dividend on the loan. 
 Under these circumstances, the purchaser declined to pay any more in- 
 stalments, and Barclay declared the previous deposits to be forfeited. 
 
 Mr. Thompson appealed to the courts of law; but law and equity 
 rarely go hand in hand. The defendants contended that six per cent, 
 was usurious ; the justice of the case was one thing, but international law 
 was another; and it was, therefore, a triumph, — but one which few 
 would envy, — when the Vice-Chancellor " confessed that the case ap- 
 peared such as would entitle the plaintiff to the equitable relief prayed ; 
 but, as contracts for loans were illegal if the contractors were at war with 
 an ally of England, it could not be entertained as a subject of suit." 
 
 It is not to be wondered at that this willingness to lend found a corre- 
 sponding willingness to borrow. It was not alone the South American 
 states that came into the market ; nor was it only republican dictators 
 who were anxious to borrow. Denmark accepted .£3,000,000, Portugal 
 took £ 1,500,000, and Russia .£3,500,000. 
 
 From this period up to 1825, loans to foreign places — foreign pow- 
 ers they cannot be called — were very frequent. Brazil borrowed 
 .£3,686,200 in 1824, and in 1825 two millions more. Buenos Ayres 
 followed the good example, received one million, and then omitted to pay 
 the dividend ; while Mexico took £6,400,000. The emancipation of this 
 country from the yoke of Spain was a fair specimen of the liberal prin- 
 ciples of the Liberals of this period. Augustin Iturbide matured a plan 
 to emancipate Mexico ; and, having expelled the Spaniards, established a 
 regency, nominated by himself, formed of his own creatures, and con- 
 trolled by his own will. The army was with him, the usurpation of the 
 throne followed, and the dictator was proclaimed emperor. The crown 
 was made hereditary, his sons were to be princes, a million and a half of 
 dollars were settled on him, and all the accessories of royalty were es- 
 tablished. 
 
 A million and a half of dollars were more easily voted than procured. 
 Money was scarce, and the new emperor exacted it with severity. The 
 people grew disgusted ; the opposition saw its time ; disaffection spread 
 to the troops ; and Iturbide tendered his resignation to the senate he had 
 formed. It need scarcely be added, that the dividends were as difficult to 
 get from Mexico as they were from Peru. 
 
 But the Greek loan was the most extraordinary feature of the pe- 
 riod ; and with it is concluded the present rapid sketch of the bubbles of 
 1825. 
 
 The history of its mismanagement is one of those strange records of 
 
 104 
 
The Greek Loan of 1824. 
 
 which the writer has seen so many during his search into the by-ways of 
 financial history. It must be in the memory of many, that, for some 
 years previous to 1824, the arm of the Greek was Hfted in resolute, 
 though almost hopeless, resistance against the Ottoman. When the in- 
 telligence reached England, that the nation whose tongue was classic, 
 whose statuary was regarded with despairing wonder, whose, records 
 formed one of the finest pages of history, was, after centuries of subju- 
 gation, striving to obtain freedom, a genuine enthusiasm pervaded Eng- 
 lish society. The antique grandeur of Greece was remembered ; the 
 ancient glory of her people brought to mind ; names which had roused 
 the enthusiasm of schoolboys were repeated ; the clime which had pro- 
 duced the great men of a great age was in every man's thought ; dreams 
 of renewed glory were in every man's brain ; and on every man's 
 tongue, and in every man's heart, were the virtues of that past world 
 revived. Of this feeling the subtle Greek availed himself, and negotia- 
 tions were entered into to procure a loan. The proposal was favorably 
 received by the Stock Exchange. In 1824, two agents of the Greek 
 government, or deputies, as they were popularly called, arrived in Lon- 
 don ; and loans to the amount of .£1,602,000 were raised for the service 
 of Greece. This sum was not placed uncontrolled in the power of the 
 deputies, the sanction of Mr. Edward Ellice, Mr. Joseph Hume, and 
 another, being necessary to its appropriation. After much hesitation, 
 50,000 sovereigns were despatched to aid the cause ; but when they ar- 
 rived, the government of that unhappy country refused to give any pledge 
 as to their worthy employment. The emissaries declined to part with 
 their treasure without ; and, to the alarm of the Greeks, they saw this 
 large amount sailing from their shore. Any pledge would now have 
 been given ; and the English emissaries were followed with protestations 
 and promises, which meant nothing but an earnest desire for the gold. 
 Scarcely had the ill-fated vessel returned, ere the yellow fever attacked 
 the crew. Helpless and dying, they reached the Asiatic coast ; and their 
 money was taken by the Greek government with an avidity which did 
 not affect disguise. 
 
 Mismanagement marked the progress of the cause in Europe as in 
 Asia. Two excellent Swedish vessels were offered for .£47,000. Time 
 was success, and, instead of purchasing vessels ready for action, con- 
 tracts were made with America for two frigates at £ 160,000. A cavalry 
 officer was appointed to superintend the naval department, and in two 
 months and a half five steamboats were to be placed at the disposal of 
 Lord Cochrane. *' Within a few weeks," said Mr. Ellice, rather more 
 pompously than to the. purpose, " Lord Cochrane will be at Constan- 
 tinople, and burn the Turkish vessels at that port. Cochrane will suffice 
 for admiral and general. He will clear Greece of the Turk." "Give 
 yourselves no further concern about the matter," said Sir Francis 
 Burdett, speaking as familiarly of war as of reform ; " your country 
 shall be saved." But though Sir Francis Burdett and Mr. Ellice said it, 
 the country was not saved. After spending £ 155,000 on two frigates, 
 £ 50,000 more were required to finish them. This was not forthcom- 
 ing, and the vessels were seized. All seemed anarchy and confusion. 
 
 105 
 
Hume and Bowring. 
 
 Schemes of the most extravagant character were propounded. Three 
 very important towns were to be besieged and carried by one thousand 
 men. A free press was to shed light and lustre around. Improvements 
 which were impracticable, and a constitution which could not be carried, 
 were promised. 
 
 During this unhappy period, the news of cities burned to the ground, 
 and forts stormed, of besieged places sacked after months of heroic re- 
 sistance, aroused the public ; and a storm of indignation was poured upon 
 projectors, deputies, and proprietors. The flagrant enormities of the 
 management were exposed, the military projects discussed, the financial 
 artifices denounced ; and attention was pointed, through the report of the 
 committee, at two, whose voices, loud in the cause of Greece, were said 
 to be louder in their own. Joseph Hume, a member of the senate, and 
 John Bowring, a linguist and a scholar, were on the committee. Reports 
 which touched the honor of both were in free circulation. Political feel- 
 ing, perhaps, prompted many of the remarks ; and the public press assert- 
 ed that to which no honorable man could submit. Mr. Merle, at a public 
 meeting, said " he had been told that certain portions of the Greek loan 
 had been appropriated to Mr. Hume ; that those bonds had not been taken 
 up ; and that they had afterwards been sold at a great loss to the Greek 
 government." 
 
 " Mr. Hume," wrote a daily paper, " has been publicly accused of 
 fraud and hypocrisy, in throwing upon the Greek nation the loss which 
 attended a speculation of his own, while acting in the assumed character 
 of a friend to the cause." 
 
 It was proved that one million had been wasted in commissions and 
 military preparations, in Stock Exchange transactions and Stock Ex- 
 change jobbing. The Greek deputies received allowances larger than 
 those paid to the diplomatic agents from great courts. Mr. Hume, in his 
 ardor for Greece, had £ 10,000 assigned him of the first loan. The price 
 fell sixteen per cent., and his ardor was said to have fallen in propor- 
 tion. Alarmed at a loss so great, the senator endeavoured to release 
 himself from the burden ; but when he applied to the deputies and con- 
 tractors, he was met with the reply, that, had the stock risen, he would not 
 have returned the gain. The argument was sound, but the head is obtuse 
 when the purse is endangered ; and Mr. Hume — clear-headed generally 
 — could not see the fairness of the position. After some correspondence, 
 the deputies agreed to take it oflT Mr. Hume's hands, at thirteen instead 
 of sixteen per cent, discount ; thereby saving Mr. Hume £ 300 out of the 
 loss of £ 1,600 which he first feared. In time, the Greek cause grew 
 prosperous, the stock rose to par, and Mr. Hume, with a singular power 
 of perception compared with his previous notions, claimed the .£1,300 
 which he had lost. The surprise of the deputies may be imagined, and 
 they must have had curious ideas of the way in which the friends of 
 Greece wished to serve her. Mr. Hume, however, was powerful ; Mr. 
 Hume was a senator ; and to Mr. Hume was accorded a privilege for 
 which others might have looked in vain. But a further question arose. 
 Mr. Hume, remarkable for the closeness of his calculations, discovered 
 that £ 54 was due for interest. This he applied for, and this was granted. 
 
 106 
 
Dr. Bowring's Losses. 
 
 The defence of Mr. Hume was comprised in the assertion, that, some 
 of his actions having been misinterpreted j because he was a proprietor of 
 stock, he had determined to part with it. The deputies offered to save 
 the friend of the cause so great a loss ; and Mr. Hume thought the con- 
 clusion at which they had arrived a sound one. After some correspond- 
 ence, they agreed to take his stock at thirteen per cent, discount, the 
 market price of sixteen per cent, being but nominal. Mr. Hume wished 
 to be relieved entirely ; but this the deputies declined. Shortly after, 
 Mr. Hume was informed that these gentlemen would pay him the sum he 
 was deficient ; and as he considered this as fair, and not as a favor, he 
 also considered he was entitled to the interest. " The worst that any one 
 can say of me," concluded Mr. Hume, " is, that I may have evinced an 
 OVER-ANXIETY TO AVOID A PECUNIARY LOSS." Mr. Humc probably re- 
 members his over-anxiety to the present day. 
 
 The case of Dr. Bowring was equally memorable. The sum of 
 ,£25,000 had been allotted to this gentleman, and his horror and alarm 
 may be conceived when he saw it decline to a discount of eighteen per 
 cent. The doctor was very vehement in his applications. He repre- 
 sented his great services ; he worried the unhappy deputies ; he placed 
 his cause before them in such vivid colors, that the stock, which had 
 fallen to eighteen per cent., was taken off his hands at only ten per cent, 
 loss. When it rose to par, he imitated his illustrious fellow-laborer, and 
 applied to have it returned. He was reminded that he had parted with 
 his stock ; but the doctor, blessed with a short memory, professed to have 
 forgotten the very circumstance which it had cost him an agony to com- 
 pass. The letters of Dr. Bowring were somewhat naive. " I am still the 
 holder of a considerable sum, and I hope we shall see the loan rise to a 
 good price for the benefit of every body.^'^ " As the difference to me is a 
 serious one, and to the Greek government of little importance, I hope you 
 will oblige me by allowing the return of the .£25,000 scrip." 
 
 There were statements and counter-statements in the journals ; there 
 were pleadings and special pleadings in the magazines ; there were elo- 
 quent papers in the Westminster Review, to prove it was all right ; and 
 there were powerful articles in the Quarterly, to prove it was all wrong. 
 ' The economical Mr. Hume's over-anxiety for scrip," said the latter, 
 " the erudite Mr. Bowring's various translations of stock, the romantic 
 partiality displayed for per cents by Orlando, have been sufficiently dis- 
 cussed. Public opinion is quite made up in all these details ; and when 
 the sacred cause of insurrection all over the world shall again need a 
 loan, the suffering patriots may allow such statesmen to plead their cause, 
 to clamor about their wrongs, to weep over their miseries, to dabble in 
 metaphysical, poetical, and periodical departments, provided they do not 
 meddle with the pecuniary." 
 
 A poem was extensively circulated, in ridicule of the affair, and with 
 an extract, the present account of the Greek loan is concluded : — 
 
 " 0, when the bubble burst, 't were sweet to mark 
 How cash and cant roared in alternate bark ! 
 Here, ' Missolonghi's fall the spirit shocks' ; 
 There, ' Were that all, — but, 0, the price of stocks ! ' 
 107 
 
Removal of the Stock Exchange. 
 
 Here, * Brimful now is misery's fatal cup, 
 The Turks have blown another fortress up ! ' 
 There, ' Forts blown up '? I 've heavier news to tell ; 
 The scrip, the scrip will be blown up as well ! ' 
 One cries, ' The cause is lost ! ' Another, ' Zounds, 
 "Who cares ? I Ve lost my four-and-fifty pounds ! ' 
 Snuffles a saint, ' I sorrow for the cross ; 
 * , But nineteen discount is a serious loss.' 
 
 Whispers a sinner, ' Why, the thing must fall ; 
 But, 't was a very pretty bubble after all ! * " 
 
 The following extract from Dr. Shelton Mackenzie's " Partnership en 
 Commandite," will form a fitting conclusion to the history of the foreign 
 loan excitement of 1825 : — " Upwards of twenty-five millions sterling 
 were advanced in foreign loans, of which the show of paying even the 
 smallest dividend is scarcely kept up. Taking into account the foreign 
 loans, the investments in foreign funds, and the amount advanced for 
 foreign railways, about 100 millions sterling have gone out of this country 
 in the last twenty-five years. Three fourths of this immense capital are 
 irretrievably sunk." 
 
 " I always," said a retired financier of great capacity, " tell my brokers 
 to sell when the Whigs come into office, as they are sure to lower con- 
 sols with the credit of the country." To intimate that the Whigs were in 
 office in 1831, is to say that their financial difficulties were great. In 
 this year curiosity was raised to know the mode which the Chancellor 
 would adopt to meet the deficient revenue ; and great was the surprise of 
 the commercial public when this gentleman boldly proposed, that, upon 
 every transfer of funded property, a tax of 10s. per cent, should be 
 placed. From this source he reckoned upon <^ 800,000. It need hardly 
 be said, that the city received the proposal with such a burst of con- 
 temptuous derision, that the unhappy Chancellor in a very short time 
 consented to abandon it. 
 
 In the following year the reform question startled many capitalists, and 
 large sales of funded property were made. Some, alarmed at what ap- 
 peared more like revolution than reform, when they heard of " moral dem- 
 onstrations " to be made by two hundred and fifty thousand determined 
 men ; of soldiers detained in their quarters on Sunday, to sharpen their 
 swords ; of mutiny among the Scots Greys ; of business suspended, and 
 all the usual accompaniments of great changes, — determined to sell 
 securities which a day might render worthless. The dealers narrowed 
 their personal operations to a limit consistent with safety ; while others 
 sold all, and purchased in foreign funds. The feeling of these individ- 
 uals was evinced by the fact, that they bought chiefly in Russian funds, 
 as affording greater security. 
 
 For a considerable number of years, many, who, not members of the 
 Stock Exchange, yet dealt in its securities and acted as brokers, em- 
 ployed the Rotunda of the Bank of England for their transactions. The 
 broker who had no counting-house made it his place of business ; and his 
 clients waited there until the transfer was ready, or the business was ar- 
 ranged. As a theatre for jobbing, it interfered with the Bank ; but Mr. 
 Curtis, governor of that establishment, turned them out somewhat uncer- 
 
 108 
 
Nathan Meyer Rothschild. 
 
 emoniously ; and, when he afterwards failed in business, so great was his 
 unpopularity with those he had summarily dismissed, that the news of his 
 bankruptcy was received with three cheers by the members of the Stock 
 Exchange. It is impossible to give a fact more suggestive of the manners 
 of the men from whom so disgraceful a token of triumph emanated. 
 
 The great increase in the business of the foreign funds called for 
 additional space ; a room was, therefore, opened for the dealers ; and 
 from this arose the Foreign Stock Exchange, which for some years main- 
 tained a separate committee, chairman, and deputy-chairman. It now 
 forms part of the edifice known as the Stock Exchange. 
 
 The number of members varies. It has reached 1,000, it has de- 
 scended to 400, and it now numbers about 800. 
 
 CHAPTER XVI. 
 
 Sketch of the Life of Rothschild. — Ck)mes to England. — Introduction of Foreign 
 Loans. — Large Purchases. — Anecdotes concerning Rothschild. — His Difficul- 
 ties and Annoyances. — His Death and Burial. — Last Crisis on the Stock Ex- 
 change. 
 
 The eminent abilities of Nathan Meyer Rothschild were inherited from 
 his father, who, educated for the synagogue, distinguished himself as a 
 financier, and, though engaged in the uncongenial sphere of a counting- 
 house, became a learned archaeologist. Frankfort, Berlin, Vienna, Lon- 
 don, Naples, and Paris, have alike witnessed the prescience of the money- 
 making Rothschilds ; and it is reported that the first great success of 
 Meyer Anselm, the father of the house, originated in the possession of 
 the fortune of the Landgrave of Hesse Cassel, which he saved from the 
 grasp of Napoleon, and which must have been to a commercial man of 
 the utmost importance.* 
 
 By his own report, Nathan Meyer Rothschild came to Manchester be- 
 cause Frankfort was too small for the operations of the brothers, although 
 the immediate cause was some offence to a customer ; and it is charac- 
 teristic of the intrepidity of the man, that, with scarcely any hesitation, 
 and with an absolute ignorance of the English language, he came to the 
 country in which he realized such great results. On Tuesday he told his 
 father he would go to England, and on Thursday he started. With 
 ^20,000 he commenced his career ; and in a short time his capital was 
 trebled. At Manchester he soon saw there were three profits to be made, 
 — in the raw material, the dyeing, and the manufacturing. It need 
 
 * " The prince of Hesse Cassel," said Rothschild, " gave my father his money. 
 There was no time to be lost ; he sent it to me. I had £600,000 arrive unexpectedly 
 b^ post ; and I put it to such good use, that the prince made me a present of all his 
 wine and linen." 
 
 10 109 
 
Rothschild Loan of 1819. 
 
 hardly be added, that his great mind had stomach for them all, and that, 
 having secured the three, he sold goods cheaper than any one else. This 
 was the foundation of that colossal fortune which afterwards passed into a 
 proverb ; and, in 1800, finding Manchester too small for the mind which 
 could grapple with three profits, Rothschild came to London. It was the 
 period when such a man was sure to make progress, as, clear and com- 
 prehensive in his commercial views, he was also rapid and decisive in 
 working out the ideas which presented themselves. Business was plenti- 
 ful ; the entire Continent formed our customers ; and Rothschild reaped 
 a rich reward. 
 
 From bargain to bargain, from profit to profit, the Hebrew financier 
 went on, and prospered. Gifted with a fine perception, he never hesitated 
 in action. Having bought some bills of the Duke of Wellington at a dis- 
 count, to the payment of which the faith of the state was pledged, his 
 next operation was to buy the gold which was necessary to pay them, and 
 when he had purchased it, was, as he expected, informed that " govern- 
 ment required it." Government had it, but doubtless paid for the ac- 
 commodation. *' It was the best business I ever did ! " he exclaimed 
 triumphantly ; and he added, that, when the government had got it, it was 
 of no service -to them until he had undertaken to convey it to Portugal. 
 
 In 1812, Meyer Anselm, the head of the house, died at Frankfort. A 
 princely inheritance, unbounded credit, and solemn advice never to sep- 
 arate, were left to his four sons. From this period, Nathan Meyer 
 Rothschild was regarded as the head, though not the elder of the family ; 
 and skilfully did he support and spread the credit of the name. Previous 
 to the advent of Mr. Rothschild, foreign loans were somewhat unpopular 
 in England, as the interest was receivable abroad, subject to the rate of 
 exchange liable to foreign caprice, and payable in foreign coin. He 
 introduced the payment of the dividends in England, and fixed it in ster- 
 ling money, one great cause of the success of these loans in 1825. 
 
 Although Mr. Rothschild was commonly termed a merchant, his most 
 important transactions were in connection with the Stock Exchange. It 
 was here that his great decision, his skilful combinations, and his un- 
 equalled energy, made him remarkable. At a time when the funds were' 
 constantly varying, the temptation was too great for a capitalist like Mr. 
 Rothschild to withstand. His operations were soon noticed ; and when 
 the money-market was left without an acknowledged head by the deaths 
 of Sir Francis Baring and Abraham Goldsmid, — for the affairs of the 
 latter were wound up, and the successors of the former did not aim at the 
 autocracy of the money-market, — the name of Nathan Meyer Rothschild 
 was in the mouths of all city men as a prodigy of success. Cautiously, 
 however, did the capitalist proceed, until he had made a fortune as great 
 as his future reputation. He revived all the arts of an older period. He 
 employed brokers to depress or raise the market for his benefit, and is 
 said in one day to have purchased to the extent of four millions. 
 
 The name of Rothschild as contractor for an English loan made its first 
 public appearance in 1819. But the twelve millions for which he then 
 became responsible went to a discount ; it was said, however, that Mr. 
 Rothschild had relieved himself from all liability before the calamity 
 
 no 
 
The Crisis of 1825. 
 
 could reach him. From this year his transactions pervaded the entire 
 globe. The Old and the New World alike bore witness to his skill ; and 
 with the profits on a single loan he purchased an estate which cost 
 £ 150,000. Minor capitalists, like parasitical plants, clung to him, and 
 were always ready to advance their money in speculations at his bidding. 
 Nothing seemed too gigantic for his grasp ; nothing too minute for his 
 notice. His mind wa,s as capable of contracting a loan for millions, as of 
 calculating the lowest possible amount on which a clerk could exist. 
 Like too many great merchants, whose profits were counted by thousands, 
 he paid his assistants the smallest amount for which he could procure 
 them. He became the high-priest of the temple of Janus ; and the cou- 
 pons raised by the capitalist for a despotic state were more than a match 
 for the cannon of the revolutionist.* From most of the speculations of 
 1824 and 1825, Mr. Rothschild kept wisely aloof. The Alliance Life 
 and Fire Assurance Company, which owes its origin to this period, was 
 however, produced under his auspices ; and its great success is a proof 
 of his forethought. None of the loans with which he was connected were 
 ever repudiated ; and when the crash of that sad period came, the great 
 Hebrew looked coolly and calmly on, and congratulated himself on his 
 caution. At his counting-house a fair price might be procured for any 
 amount of stock which, at a critical time, would have depressed the pub- 
 lic market ; and it was no uncommon circumstance for brokers to apply 
 at the office of Mr. Rothschild, instead of going in the Stock Exchange. 
 
 He was, however, occasionally surpassed in cunning, and, on one occa- 
 sion, a great banker lent Rothschild a million and a half on the security 
 of consols, the price of which was then eighty-four. The terms on 
 which the money was lent were simple. If the price reached seventy- 
 four, the banker might claim the stock at seventy ; but Rothschild felt 
 satisfied that, with so large a sum out of the market, the bargain was 
 tolerably safe. The banker, however, as mucli a Jew as Rothschild, had 
 a plan of his own. He immediately began selling the consols received 
 from the latter, together with a similar amount in his own possession. 
 The funds dropped ; the Stock Exchange grew alarmed ; other circum- 
 stances tended to depress it ; the fatal price of seventy-four was reached ; 
 and the Christian banker had the satisfaction of outwitting the Hebrew 
 loan-monger. 
 
 But, if sometimes outwitted himself, there is little doubt he made others 
 pay for it ; and, on one occasion, it is reported that his finesse proved too 
 great for the authorities of the Bank of England. Mr. Rothschild was in 
 want of bullion, and went to the governor to procure on loan a portion of 
 the superfluous store. His wishes were met, the terms were agreed on, 
 the period was named for its return, and the aflfair finished for the time. 
 The gold was used by the financier, his end was answered, and the day 
 arrived on which he was to return the borrowed metal. Punctual to the 
 time appointed, Mr. Rothschild entered; and those who remember his 
 
 * In 1824, it wag said that public attention was so entirely absorbed by financial 
 operations, that the movements of Mr. Rothschild and a few London capitalists ex- 
 cited an intensity of expectation scarcely inferior to the march of armies. 
 
 Ill 
 
Mr. Rothschild'' s Early Intelligence, 
 
 personal appearance may imagine the cunning twinkle of his small, 
 quick eye, as, ushered into the presence of the governor, he handed the 
 borrowed amount in bank-notes. He was reminded of his agreement, 
 and the necessity for bullion was urged. His reply was worthy a com- 
 mercial Talleyrand. " Very well, gentlemen. Give me the notes ! I 
 dare say your cashier will honor them with gold from your vaults, and 
 then I can return you bullion." To such a speech the only worthy reply 
 was a scornful silence. 
 
 One cause of his success was the secrecy with which he shrouded all 
 his transactions, and the tortuous policy with which he misled those the 
 most who watched him the keenest. If he possessed news calculated to 
 make the funds rise, he would commission the broker who acted on his 
 behalf to sell half a million. The shoal of men who usually follow the 
 movements of others, sold with him. The news soon passed through 
 Capel Court that Rothschild was bearing the market, and the funds fell. 
 Men looked doubtingly at one another, a general panic spread, bad news 
 was looked for, and these united agencies sunk the price two or three per 
 cent. This was the result expected ; and other brokers, not usually 
 employed by him, bought all they could at the reduced rate. By the 
 time this was accomplished, the good news had arrived, the pressure 
 ceased, the funds arose instantly, and Mr. Rothschild reaped his reward.* 
 
 But it was not an unvaried sunshine with this gentleman. There were 
 periods when his gigantic capital seemed likely to be scattered to the four 
 quarters of the globe. He lost half a million in one English operation ; 
 when the French entered Spain in 1823, he was also in the utmost jeop- 
 ardy ; but, perhaps, the most perilous position in which he was placed 
 was with the Polignac loan, although his vast intelligence again saved 
 him, and placed the burden on the shoulders of others. With this, how- 
 ever, he suffered greatly, as the price fell thirty per cent. 
 
 He had, also, other sources of apprehension. Threats of murder were 
 not unfrequent. On one occasion, he was waited on by a stranger, who 
 informed him that a plot had been formed to take his life ; that the loans 
 which he had made to Austria, and his connection with governments 
 adverse to the liberties of Europe, had marked him for assassination ; 
 and that the mode by which he was to lose his life was arranged. But 
 though Rothschild smiled outwardly at this and similar threats, they said, 
 who knew him best, that his mind was often troubled by these remem- 
 brances, and that they haunted him at moments when he would willingly 
 have forgotten them. Occasionally his fears took a ludicrous form. Two 
 tall, mustachioed men were once shown into his counting-house. Mr. 
 Rothschild bowed, the visitors bowed, and their hands wandered first in 
 one pocket, and then in another. To the anxious eye of the millionnaire, 
 they assumed the form of persons searching for deadly weapons. No 
 time seemed allowed for thought ; a leger, without a moment's warning, 
 was hurled at the intruders ; and, in a paroxysm of fear, he called for 
 
 * The intelligence of this gentleman was so good, that he was the first to announce 
 the Paris revolution of July to Lord Aberdeen, and the victory of Waterloo was 
 known to him some days before it was made public. 
 
 112 
 
Mr. RothschiWs Habits. 
 
 assistance, to drive out two customers, who were only feeling in their 
 pockets for letters of introduction. There is no doubt that he dreaded 
 assassination greatly. " You must be a happy man, Mr. Rothschild," 
 said a gentleman who was sharing the hospitality of his splendid home, as 
 he glanced at the superb appointments of the mansion. " Happy ! me 
 happy ! " was the reply. " What ! happy when, just as you are going to 
 dine, you have a letter placed in your hands, saying, ' If you do not send 
 me c£ 500, I will blow your brains out!' Happy! me happy!" And 
 the fact, that he frequently slept with loaded pistols by his side, is an in- 
 direct evidence of a constant excitement on the subject. 
 
 The name of this gentleman, the entertainments given by him, the 
 charities to which he occasionally subscribed, and the amount of his 
 transactions in the money-market, were blazoned abroad. Peers and 
 princes of the blood sat at his table ; clergymen and laymen bowed 
 before him ; and they who preached loudest against mammon bent low- 
 est before the mammon-worshipper. Gorgeous plate, fine furniture, an 
 establishment such as many a noble of Norman descent would envy, 
 graced his entertainments. Without social refinement, with manners 
 which, offensive in the million, were but brusque in the millionnaire, he 
 collected around him the fastidious members of the most fastidious aris- 
 tocracy in the world. He saw the representatives of all the states in 
 Europe proud of his friendship. By the democratic envoy of the New 
 World, by the ambassador of the imperial I^uss, was his hospitality alike 
 accepted ; while the man who warred with slavery in all its forms and 
 phases was himself slave to the golden reputation of the Hebrew. The 
 language which Mr. Rothschild could use when his anger overbalanced 
 his discretion, was a license allowed to his wealth ; and he who, when 
 placed in a position which almost compelled him to subscribe to a press- 
 ing charity, could exclaim, " Here, write a check, — I have made one 
 
 fool of myself! " was courted and caressed by the clergy, was feted and 
 flattered by the peer, was treated as an equal by the first minister of the 
 crown, and more than worshipped by those whose names stood foremost 
 on the roll of a commercial aristocracy. His mode of dictating letters 
 was characteristic of a mind entirely absorbed in money-making ; and his 
 ravings, when he found a bill unexpectedly protested, were translated into 
 mercantile language ere they were fit to meet a correspondent's eye. It 
 is painful to write thus depreciatingly of a man who possessed so large a 
 development of brain ; but the golden gods of England have many 
 idolaters, and the voice of truth rarely penetrates the private room of the 
 English merchant. Mr. Rothschild's was a character which may be 
 serviceably held up as* a warning. There was, however, an occasional 
 gleam of humor in him, sternly as his thoughts were devoted to heaping 
 up riches. " I am as much as you," he said to the Due de Montmorenci, 
 wlien his title was granted ; " you style yourself the first Christian baron, 
 and I am the first Jew baron." 
 
 He was a mark for the satirists of the day. His huge and somewhat 
 
 slovenly appearance ; the lounging attitude he assumed as he leaned 
 
 against his pillar in the Royal Exchange ; his rough and rugged speech ; 
 
 his foreign accent and idiom, — made caricature mark him as its own ; 
 
 10* 113 
 
Death of Nathan Meyer Rothschild. 
 
 while even caricature lost all power over a subject which defied its ut- 
 most skill. His person was made an object of ridicule ; but his form and 
 features were from Grod : his mind and manners were fashioned by cir- 
 cumstances ; his acts alone are public property ; and by these we have a 
 right to judge. No great benevolence lit up his path ; no great charity 
 is related of him. The press, ever ready to chronicle liberal deeds, was 
 almost silent upon the point ; and the fine feeling which marked the path 
 of an Abraham Goldsmid, and which brightens the career of many of the 
 same creed, is unrecorded by the power which alone could give it pub- 
 licity. Dr. Herschel, indeed, said that Mr. Rothschild had placed some 
 thousands in his hands for the benefit of his poorer brethren ; but thou- 
 sands spent in a career of thirty-five years, by one who counted his gains 
 in millions, assume a narrow form. The Jewish code prescribed a tithe ; 
 but Jewish laws are often abrogated, when Jewish ceremonies are closely 
 followed. 
 
 At last the time arrived which proves a millionnaire to be a man, Mr. 
 Rothschild's aflfairs called him to Frankfort, and he was seized with his 
 last illness. The profession there could do nothing for him, and, scarcely 
 even as a last hope, Mr. Travers, the eminent surgeon, made a rapid 
 journey to see if English science could avail the dying Croesus. The 
 effort was vain, and the inevitable fate was well and worthily met. There 
 appears even a certain degree of dignity in his resignation to the last 
 struggle, and something touchingly manful in the wording of the will 
 which was to surrender to others the gold won by the sweat of his brain. 
 Breathing an almost patriarchal simplicity, it recommends his sons to 
 undertake no great transaction without the advice of their mother, of 
 whom he speaks with tender and even touching affection. " It is my 
 special wish that my sons shall not engage in any transaction of moment, 
 without having previously asked her maternal advice." 
 
 The first intelligence of his death was received by the same method 
 which had so often contributed to his success. Beneath the wings of a 
 pigeon, shot in sport at Brighton, were discovered the words " il est 
 morty The intelligence created ah intense sensation, as the uninitiated 
 were ignorant that his illness was dangerous, and calculations were plenti- 
 ful as to the amount of his fortune. A greater tumult than had been 
 produced since the violent death of his predecessor, marked the pre- 
 cincts of the Stock Exchange, as it was impossible to tell the tendency of 
 his speculations, or what effect might be produced by his unexpected 
 demise.* 
 
 His remains were brought to England. The Austrian, Russian, Prus- 
 sian, Neapolitan, and Portuguese ambassadors assisted at his funeral ; and 
 his sons, who were deeply affected, attended him to his last resting-place. 
 The coffin which contained his massive remains was elaborately carved 
 and gorgeously ornamented, looking like some splendid piece of man's 
 
 * Mr. Salomons attributed the difficulties which followed his death to the sudden 
 withdrawal of the dexterity with which he managed the exchanges, as Mr. Eothschild 
 prided himself on distributing his immense resources, so that no operation of his 
 should abstract long the bullion from the Bank. 
 
 114 
 
Loan to Portugal. 
 
 cunning, destined for the boudoir of a lady, rather than the damp of the 
 grave. 
 
 His children inherit his business ; but they do not inherit his position in 
 the stock-market. They are competitors for government loans; but, 
 though with the name remains a certain prestige of its former power, 
 they do not appear willing to entertain the extensive and complicated 
 business in the funds in which their father delighted. 
 
 The few anecdotes recorded of the gentleman whose life has been s6 
 imperfectly sketched, form a portion of many which have been carefully 
 collected. A good life of Nathan Meyer Rothschild would be, to some 
 future Tooke, a complete and perfect key to the financial history of the 
 early portion of the nineteenth century.* 
 
 The last crisis in the Stock Exchange which it is the writer's purpose 
 to record was that memorable era, in 1836, when a convulsion — scarcely 
 equalled in degree, though limited in its extent — made bears and bulls 
 alike bankrupts. 
 
 For many years previous, the business of Capel Court had been de- 
 creasing. The attempts 'made to excite public feeling were insufficient to 
 produce much result. Consols remained without those great and sudden 
 movements so beneficial to the members ; little was done in shares ; and it 
 was remarked that the Stock Exchange had become a monetary dead sea ; 
 that the carriage seemed likely to be exchanged for the wheelbarrow ; 
 the breaking of credit for the breaking of stones ; and that, when the eagle 
 eye of the hungry broker and jobber looked round for dupes, all was barren. 
 
 At length the spell was broken. The attempt of Don Pedro to seize 
 the crown of Portugal afforded the members an opportunity of exercising 
 their vocation ; and it has been confidently said, that, long before a loan 
 was attempted, their money was employed in assisting the above ex- 
 pedition. Every art was used to blacken the character of Don Miguel. 
 Every trick was attempted to excite sympathy for Don Pedro. Private 
 memoirs were published, and anecdotes related. Truths were distorted, 
 and falsehood not unfrequently perpetrated. Paragraphs made their con- 
 stant appearance, in which " our ancient ally " was represented as suf- 
 fering from a most intolerable tyranny. Unbearable torture and insuffer- 
 able trials were the lot of the Portuguese people ; darkness and dungeons 
 the doom of the aristocracy. The Tagus was red with the blood of the 
 populace ; and the " tower of Belem," said a writer in Eraser's Mag- 
 azine, "emitted more doubtful and indescribable sounds than its pre- 
 decessor of Babel." 
 
 All these things tended to prepare the mind of the English capitalist. 
 But a further temptation was offered. The revenues of the kingdom 
 were portrayed in glowing colors. It was said that Don Miguel could, 
 but would not, pay the interest of the existing debt, and that Don Pedro 
 could and would. The scheme proved thoroughly successful. The note 
 of expectation being thus sounded, a band of men was engaged, vessels 
 were hired, and, with the aid of English money, English men, and Eng- 
 lish ships. Oporto was taken. The public mind was now ripe for a loan. 
 
 * For a Memoir of Rothschild, see the Bankers' Magazine, Vol. II. p. 473, et seq. 
 
 115 
 
Fall in Spanish Stock. 
 
 The success was magnified, the achievement enlarged on, and .£800,000 
 were demanded on the security of some port-wine. The money was 
 lent ; Don Miguel fled to Rome ; and the young queen was installed in 
 his place. A further loan of two millions followed ; the interest was 
 difficult to pay, the dividends were capitalized, and great excitement per- 
 vaded the Stock Exchange at the rumors which were currently circulated. 
 
 But another important movement was going on in connection with 
 loans to Spain. The principal powers of Europe had agreed that Spain 
 and Portugal should assist each other in the expulsion from their respec- 
 tive territories of Don Carlos and Don Miguel, and that the other courts 
 should assist the belligerent parties. From this treaty arose an auxiliary 
 force raised in England to assist the youthful queen of Spain, and " The 
 British Legion " is yet named with derision. From the courts and from 
 the alleys of St. Giles's, from the town jail and from the rural workhouse, 
 came half-clad, wretched, and miserable beings, who preferred being shot 
 to being starved. Eflbrts to gain commissions were made by as motley a 
 crew. Youths from the counting-house and from the shop were assiduous 
 in endeavouring to attain them. Gentlemen with small incomes and no 
 knowledge of war put forward their pretensions ; and the officers were, 
 in their way, a match for the men. 
 
 With all these disadvantages, the legion secured the success of the 
 cause for which it fought ; and, after a series of battles, Don Carlos was 
 compelled to fly from the territory. A loan of course became advisable ; 
 and, although the interest on the previous debt could not be paid, it was 
 proposed to advance an additional four millions. It need scarcely be said 
 that, to procure this, promises were as plentiful as ever. The property 
 of the Church was to be confiscated, and the Church itself to be upset, 
 rather than not remunerate the bondholder. By means of deferre'd stocks, 
 active stocks, and passive stocks, bargains were concluded, and, for a 
 time, all was excitement in the foreign market. Every kind of security 
 became sought for ; however worthless, it had a price ; however value- 
 less, it found a buyer ; and the debts of states which had never paid one 
 dividend, which were scarcely in existence, and which had not any 
 revenue, advanced 100 per cent. 
 
 But the market became overloaded, and holders began to realize. 
 Every packet from abroad bore foreign securities, and the price drooped. 
 During the fever, Spanish Cortes stock, which in 1833 was 16|, was 
 forced to 72. Portuguese was done at 102, and every foreign stock rose 
 in proportion. 
 
 By May, 1835, the market became overloaded ; all were sellers ; the 
 price drooped ; and on the 21st the panic commenced. Spanish stock 
 fell at once sixteen per cent. ; the scrip went to three discount ; and the 
 lower the price, the more anxious were the holders to sell. Every one 
 grew alarmed; and those who had bought as a permanent investment 
 parted with all their interest. Private gentlemen, who had been tempted 
 to buy, hurried with heavy hearts to their brokers ; and the Stock Ex- 
 change may be said to have groaned beneath the burden. 
 
 To add to the distress, the greatest holder turned bear ; and it is diffi- 
 cult to describe the confusion with which the market closed on the even- 
 
 116 
 
Revulsion of 1835. 
 
 ing of the 21st of May. Some were rejoicing at their deliverance, though 
 suffering a large loss, while others were absolutely ruined. In many 
 panics there had been hope. They were known to be alarms which time 
 would rectify ; but there was no hope for the holder of foreign stock ; it 
 was worthless, and it was known to be worthless. Every one felt assured 
 that no dividend would ever be paid upon it ; and when this was remem- 
 bered, men cursed the fatuity which had led them to buy waste-paper, 
 and execrated the greediness which had lured them to ruin. Those 
 who the week before possessed securities which would have realized 
 hundreds of thousands, were reduced to bankruptcy. Brokers who had 
 kept to their legitimate business were defaulters ; most who had bought 
 for time were unable to pay their differences ; while respectable men, 
 who had laughed at speculation, and thought themselves too clever to be 
 taken in by companies, had ventured their all on the faith of foreign 
 governments. Establishments were reduced, families were ruined, de- 
 licately-nurtured women were compelled to earn their bread. Death 
 ensued to some from the shock, misery was the lot of others, and frantic 
 confusion once more marked the alleys and the neighbourhood of Capel 
 Court. Consternation reigned paramount, and almost every third man 
 was a defaulter. All foreign securities were without a price ; the bank- 
 ers refused to advance money ; the brokers' checks were first doubted, 
 and then rejected ; nothing but bank-notes would be taken ; and, with a 
 desperation which will never be forgotten, the jobbers closed their books, 
 refused to transact any business, and waited the result in almost abject 
 despair. The stocks bore no price, the brokers ceased to issue their 
 lists, and the blackboard was found inadequate to contain the names. 
 Differences to the amount of ten millions were declared ; and the entire 
 wall would have been insufficient to contain the names. The practice 
 was, therefore, dispensed with, and an additional time allowed to settle 
 the accounts. 
 
 To mitigate the evil, the principal holders of foreign securities formed 
 themselves into a society to purchase all stock below forty ; but it was 
 found inadequate to meet the catastrophe in the house, while out of it the 
 excitement in Spanish, Portuguese, and other foreign funds created evils 
 which never met the public eye, but which are yet felt by innumerable 
 private families. 
 
 During this period, the Royal Exchange, previous to the assembling of 
 the merchants, witnessed a curious scene, and beheld a motley group of 
 speculators ; and, says Mr. Evans, in his work on the city, such was the 
 rage for shares in companies which had arisen out of the general excite- 
 ment, that the beadle was obliged to drive them away, as the frequenters 
 of 'Change could not get to their places. In the height of this specula- 
 tion, some of the dabblers made a price of one farthing per share on a 
 railway now promising to be the first in the kingdom, but of which there 
 were then no buyers. 
 
 With the above panic the present chronicle of the Stock Exchange 
 closes. To have brought it to 1849 would have involved living men and 
 their actions, and to some future historian must be left the many whose 
 names assume so important a position in English financial history. 
 
 117 
 
The Stock Exchange in 1761. 
 
 CHAPTER XVII. 
 
 Legends of the Stock Exchange. — Mr. Dunbar. — Duke of Newcastle. — French 
 Ambassador. — James Bolland. — Extraordinary Incident. — Fortunate Adven 
 ture. — Morals and Manners of the Stock Exchange. — Its Constitution and 
 Arrangements, 
 
 The early part of the present chapter is devoted to anecdotes, which, 
 though difficult to prove, yet bear in themselves every appearance of 
 reality. Many legends are thus in the debatable ground between truth 
 and fiction ; and those which are selected are chosen from their resem- 
 blance to fact, rather than from the actual knowledge of their veracity. 
 
 In 1761, Mr. Dunbar, a West- Indian merchant, finding his affairs were 
 less prosperous than usual, sought " the Alley," as it was then termed, to 
 retrieve his failing fortunes. From some private information, he believed 
 that he had good grounds for supposing a peace would soon be effected, 
 and that the funds would rise. He therefore ordered his broker to buy 
 £ 100,000 for the account ; told him the opinion he had formed, with the 
 intelligence on which it was based ; and the latter, in violation of his 
 oath, jobbed extensively on his own account as well as for his client. 
 February passed away without the expected peace, and Mr. Dunbar paid 
 the difference. Confident in his views, he continued the operation ; but 
 each account-day proved that the price had been against him, and with 
 great difficulty did he find money to pay the amounts due. In July, 
 unable to pay cash, he gave notes of hand to the broker, who agreed to 
 receive them. No objection being made, the account was continued on 
 for August. In that month the prospect of peace revived, the funds rose, 
 and Mr. Dunbar, seeing a chance of paying the greater part of his losses, 
 went with all speed to 'Change Alley. His distress may be imagined, 
 when he was coolly told, that, since he had given notes of hand, no ac- 
 count had been opened, and no advantage could be reaped from the rise 
 in price. The act of Sir John Barnard rendered any appeal to law use- 
 less ; but, as Mr. Dunbar became a bankrupt, the members of the Stock 
 Exchange subscribed to pay the amount claimed, in order that so flagrant 
 a case might not become public. 
 
 One of the loans raised by the Duke of Newcastle, when prime minis- 
 ter, fell, from some unforeseen accident, to three per cent, discount. 
 His Grace, thinking he had made an unfair bargain, or fearing the job- 
 bers would not lend to him again, convened a meeting of those who had 
 taken it, who, as well as the Duke, were greatly frightened, not knowing 
 what project to adopt. At length one of them — said to be Samson 
 Gideon — desired the minister to walk with him into another room. 
 There they remained for a few minutes, and then returned in high spirits, 
 telling the others to go home and be perfectly easy, as care should be 
 taken of their interest. Gideon went immediately to 'Change Alley, 
 
Count de Guise. 
 
 and, buying up the scrip as fast as it was offered, produced an immediate 
 rise to one per cent, above par. 
 
 Gambling in the funds has not been confined to commoners ; and the 
 French ambassador at the Court of London was guiUy of a deception 
 which marks the name of the Count de Guise with infamy. Avaihng 
 himself of his political position, he traded in English securities, and, by 
 the aid of his secretaries, made large sums. While success attended the 
 ambassador's operations, he received the profit, and rejoiced in his good 
 fortune ; but when a long run of bad luck dissipated his gains, and made 
 demands upon his purse, his Excellency denied all knowledge of the 
 transaction, refused to pay the balance, retired to France, and com- 
 menced a prosecution against his subordinates. But this was not suf- 
 ficient to exonerate him with thinking people. A memorial was pub- 
 lished by his secretaries ; and the evidence they gave satisfied every 
 impartial mind that the ambassador of the Most Christian King had abused 
 his trust, duped his dependents, and defrauded the stock-broker. 
 
 About the middle of the eighteenth century, one of the constant deal- 
 ers in 'Change Alley, although in a small way, was James Bolland ; a 
 man of low extraction, but of great mind, of immense impudence, and 
 unrivalled crime. There was nothing at which he would hesitate to 
 obtain money, to spend on the Stock Exchange ; and, having once com- 
 menced, he soon found that the legitimate profits of his trade — that of 
 a butcher — were not sufficient to support him. He formed, therefore, 
 a wooden weight, which, resembling one of fifty pounds, weighed only 
 seven pounds ; and, in his capacity of tradesman to St. Thomas's Hos- 
 pital, employed his roguery with great success. 
 
 From butcher he turned sheriff's officer, revived every past miquity, 
 invented new frauds, and spent his money in buying lottery-tickets, to 
 which pursuit he was passionately attached. He robbed the broker whom 
 he employed, alike of his mistress and his money ; and with the latter 
 bought the place of city marshal. The citizens, however, discovered 
 that his character was scarcely equal to his impudence, and refused to 
 maintain their bargain. 
 
 Every moment he could spare was passed on the Stock Exchange, 
 where his pursuits were marked by a singularly bad fortune. Every 
 speculation went against him ; he never drew a prize in the lottery ; and, 
 finding there was a chance of his becoming penniless, he added forgery 
 to his long list of crimes. The fraud was discovered, the penalty was 
 paid at Tyburn ; and James Bolland adds another to the many proofs of 
 the truth of the old adage. 
 
 A century ago was the hanging century ; and a great fraud was com- 
 mitted towards its close on the East India Company. The leading wit- 
 ness — the only witness who could prove the guilt of the accused — was 
 accustomed to visit a house in the neighbourhood of the Bank, to be 
 dressed and powdered, according to the fashion of the day. Shortly 
 before the trial came on, a note was placed in his hands, informing him 
 that the attorney for the prosecution was desirous of seeing him, at a cer- 
 tain hour, at his private residence, in or near Portland Place. 
 
 At the time appointed, the witness proceeded to the house ; the door 
 
 119 
 
The Blackboard. 
 
 was opened, and the footman, without asking his name, ushered the 
 visitor into a large room, where, discussing some wine upon the table, sat 
 a group of gentlemen, in earnest conversation. " There is a mistake," 
 exclaimed the new-comer, thinking he had been shown into the wrong 
 room. " No mistake, Sir," interrupted one, in a determined tone, while 
 the remainder sat quietly, but sternly, by. Unable to comprehend the 
 scene, and, in some alarm, the visitor prepared to leave the room. " There 
 is no mistake," repeated the same person, unostentatiously stepping be- 
 fore the door. " I am," he continued, " brother to that gentleman who 
 is to be tried for forgery, and against whom you are the chief witness. 
 Without your evidence he cannot be convicted ; the honor of a noble 
 house is at stake ; and your first attempt to escape will lead to a violent 
 death. There is nothing to fear, if you remain quiet ; but all whom you 
 see are sworn to detain you until the trial be over, or," he added, after a 
 pause, " to slay you." The witness was a sensible man ; he saw the 
 determined looks of those around, and thought it best quietly to acquiesce. 
 
 In the mean time great surprise was excited in the city. That the 
 missing man had been inveigled away was universally believed ; and 
 every endeavour was made to track him. Whether the calmness with 
 which he bore his confinement deceived his jailers is not known ; but it 
 is certain that he effected his escape from the house, although not so 
 securely but that his captors were after him before he could get out of 
 sight. A mob collected ; his pursuers declared he was an insane noble- 
 man, and that they were his keepers. The mob shouted with delight at 
 the idea of a mad lord ; and the unfortunate man was on the point of 
 being again confined, when a chariot drove up. The inmate, a lady, de- 
 sired the coachman to stop, and listened to the counter statements of the 
 pursued and his pursuers. Remembering the current story of a missing 
 witness, she opened the carriage, he sprung in, the door was closed, and 
 the lady, to whom he told his story, ordered her coachman to drive 
 with all speed to the Old Bailey. It was the last day ; the case, which 
 had been postponed, was being tried ; and the missing witness was just 
 in time to place the rope around the neck of the unhappy forger. 
 
 In the memorable year 1815, a member of the Stock Exchange found 
 that, notwithstanding all his exertions to save his credit, his name stood 
 every chance of gracing that blackboard on which so many appeared 
 during the eventful period. Melancholy and meditating, he wandered 
 forth, scarcely knowing the direction which he took, until from London 
 Bridge he gazed gloomily upon the " dark flowing river," half doubting 
 whether its depths would not be his best abiding-place. In this mood he 
 was hastily greeted by a voice he knew ; and, turning round, was rapidly 
 informed of news which at once turned his thoughts back to that world he 
 had felt inclined to quit. The stranger had just arrived from the spot 
 where the great battle of modern history had been fought ; and the 
 ruined jobber become the depositary of a secret which at once re- 
 stored his spirits. Hastily learning all the particulars which might affect 
 him, he retraced his steps, found the price unaltered, , and the news, 
 therefore, unknown. Without hesitation, he made large purchases of 
 stock. AH that was to be procured he bought ; and, as the secret which 
 
 120 
 
1^ 
 
 ■» had the 
 
 Morals of the Stock Exchange. 
 
 had that morning sent him gloomily away was not even guessed, he was 
 able to purchase very largely. He availed himself of his opportunity ; 
 and ere long had cause to congratulate himself on his good fortune, as, 
 when the news arrived, the price rose sufficiently to clear all his diffictd- — 
 ties, and leave him a profit of .£20,000. 
 
 The morals and the manners of the Stock Exchange are difficult to 
 treat. Morals too often fade before money-making ; and manners are 
 regarded as unnecessary in the same eager pursuit. Nor is Capel Court 
 an exception. When the fate of a jobber depends on the turn which 
 the market may take, — when sorrow or success hangs upon a word, — 
 when family, friends, and fortune are in the balance, and a rumored 
 falsehood may sink or save, — it is not in humanity to resist the tempta- 
 tion ; and it has, unhappily, become too general a practice to stop at no 
 invention, and to hesitate at no assertion, which may assist the inventor. 
 From this cause the Stock Exchange is rarely mentioned with that respect 
 which it merits, as the theatre of the most extensive money transactions 
 in the world. Public opinion punishes the many for the few. The great 
 mass of its members have not power to disseminate an untruth. The 
 brokers, bound not to speculate on their own account, have no interest in 
 doing so ; the small jobber cannot influence the price ; many are too high- 
 minded to avail themselves of dishonorable methods ; and it is, therefore, 
 to a particular class that the Stock Exchange owes its false reports, its 
 flying rumors, and its unenviable notoriety. Capel Court is, indeed, a 
 complete anomaly. There are men of high character and station in its 
 body ; there is every endeavour made by its executive to abolish all which 
 tends to make it despicable ; the greatness of its dealings are unequalled ; 
 some of its members are members of the senate ; others are honorable in 
 spite of the temptations which surround them ; it is consulted by chan- 
 cellors, and taken into the councils of ministers ; peace or war hangs upon 
 its fiat ; and yet the Stock Exchange is seldom named, out of the city, 
 but with contempt ; and a Stock Exchange man is, like the moneyed man 
 in the early reign of William, despised by the landed, and looked down 
 upon by the mercantile, aristocracy. One reason, perhaps, for this is, 
 that the great mass of their transactions are without the pale of the law. 
 All their time-bargains — and the Stock Exchange might close to-morrow 
 if these were abolished — are illegal. They are, strictly speaking, gam- 
 bling dealings, which our judicature refuses to recognize ; and the dealers 
 are gamblers, whom the legislature will not acknowledge. 
 
 The tricks which are resorted to are numerous. The penniless spec- 
 ulator can enter into transactions which may retrieve his fortunes, or con- 
 solidate his ruin. It is said to be a not uncommon trick for two persons 
 to agree together in the following manner : — one buys and the other 
 sells for the account to the largest amount for which each can procure 
 credit. One must lose, and the other must gain. One becomes a mil- 
 lionnaire, the other a defaulter. The former receives a large amount, the 
 latter is declared on the blackboard. A division of the spoils is after- 
 wards privately effected ; and the gainer pursues his avocation in the 
 funds, while the loser becomes a prosperous gentleman. 
 
 The public cannot be too decidedly warned against the dangers to which 
 11 121 
 
Manners of the Stock Exchange, 
 
 they may be exposed in legitimate transactions. On one occasion, a mer- 
 chant having requested his broker to purchase a certain amount of stock, 
 and having concluded the business, was surprised in the evening to hear 
 his broker announced as a visitor. Some remark being made, the latter 
 stated that a dispute had arisen w^ith the jobber about the price which was 
 in the receipt, and he should be glad to take it with him as an evidence 
 of his correctness. Knowing that a stock receipt is in itself of no value, 
 the buyer readily complied. His visitor thanked him, and from that mo- 
 ment was never heard of. The receipt was false, the names were forged ; 
 and, secure in the possession of all evidence against him, the broker 
 sought a foreign land in which to enjoy his unrighteous gains. 
 
 If the morals of the Stock Exchange be as described, its manners are 
 as curious. It is not long since the papers reported a limb broken in 
 sport. The writer has perused in the journals occasional duels which 
 have arisen from the " fun " of the members ; and the courtesies of life 
 are wanting if a stranger ventures among them. When this is the case, 
 instead of the bearing of gentlemen, the first discoverer of the intruder 
 cries out, " Fourteen hundred fives ! " and a hundred voices reecho the 
 cry. Youth or age is equally disregarded ; and the following description 
 of what occurred to an unhappy visitor will attest the truth of that which 
 has been asserted : — 
 
 " Not long ago, a friend of my own, ignorant of the rule so rigidly 
 enforced for the expulsion of strangers, chanced to drop in, as he phrased 
 it, to the Stock Exchange. He walked about for nearly a minute without 
 being discovered to be an intruder, indulging in surprise at finding that 
 the greatest uproar and frolic prevailed in a place in which he expected 
 there would be nothing but order and decorum. All at once, a person, 
 who had just concluded a hasty but severe scrutiny of his features, sent 
 out, at the full stretch of his voice, ' Fourteen hundred.' Then a bevy 
 of the gentlemen of the house surrounded him. ' Will you purchase any 
 new Navy five per cent.. Sir,' said one, eagerly, looking him in the 
 
 face. ' I am not ' ; the stranger was about to say he was not 
 
 going to purchase stock of any kind, but was prevented finishing his sen- 
 tence by his hat being, through a powerful application of some one's 
 hand to its crown, not only forced over his eyes, but over his mouth also. 
 Before he had time to recover from the stupefaction into which the sud- 
 denness and violence of the eclipse threw him, he was seized by the 
 shoulders, and wheeled about as if he had been a revolving-machine. 
 He was then pushed about from one person to another, as if he had only 
 been the effigy of some human being, instead of a human being himself. 
 After tossing and hustling him about in the roughest possible manner, 
 denuding his coat of one of its tails, and tearing into fragments other- 
 parts of his wardrobe, they carried him to the door, where, after de- 
 positing him on his feet, they left him to recover his lost senses at his 
 leisure." 
 
 In a graphic picture of the Stock Exchange, drawn by one who had 
 every opportunity of testing its truth, the following will confirm the above 
 description, and affords an interesting evidence of the civilization of the 
 Stock Exchange in 1828 : — 
 
 122 
 
I 
 
 Treatment of Intruders. 
 
 " I turned to the right, and found myself in a spacious apartment, 
 which was nearly filled with persons more respectable in appearance than 
 the crew I had left at the door. Curious to see all that was to be seen, I 
 began to scrutinize the place and the society into which I had intruded. - 
 But I was prevented from indulging the reflections which began to sug- 
 gest themselves, by the conduct of those about me. A curly-haired Jew, 
 with a face as yellow as a guinea, stopped plump before me, fixed his 
 black, round, leering eyes full on me, and exclaimed, without the slight- 
 est anxiety about my hearing him, ' So help me Got, Mo, who is he ? ' 
 Instead of replying in a straightforward way. Mo raised his voice as 
 loud as he could, and shouted with might and main, ' Fourteen hundred 
 new fives ! ' A hundred voices repeated the mysterious exclamation. 
 ' Fourteen hundred new fives ! ' ' Where, where, — fourteen hundred 
 new fives, — now for a look ; where is he ? Go it, go it ! ' were the 
 cries raised on all sides by the crowd, which rallied about my person like 
 a swarm of bees. And then Mo, by way of proceeding to business, re- 
 peating the war-cry, staggered sideways against me, so as almost to 
 knock me down. My fall, however, was happily prevented by the kind- 
 ness of a brawny Scotchman, who, humanely calling out, ' Let the mon 
 alone,' was so good as to stay me in my course with his shoulder, and 
 even to send me back towards Mo with such violence, that, had he not 
 been supported by a string of his friends, he must infallibly have fallen 
 before me. Being thus backed, however, he was enabled to withstand 
 the shock, and to give me a new impulse in the direction of the Scotch- 
 man, who, awaiting my return, treated me with another hoist as before, 
 and I found these two worthies were likely to amuse themselves with me, 
 as with a shuttlecock, for the next quarter of an hour. I struggled vio- 
 lently to extricate myself from this unpleasant situation, and, by aiming a 
 blow at the Jew, induced Moses to give up his next hit, and to allow me 
 for a moment to regain my feet. 
 
 " The rash step which I had taken was likely to produce very formid- 
 able consequences. All present were highly exasperated. The war 
 became more desperate than ever. Each individual seemed anxious to 
 contribute to my destruction ; and some of their number considerately 
 called out, ' Spare his life, but break his limbs.' 
 
 " My alarm was extreme ; and I looked anxiously round for the means 
 of escape. 
 
 " ' You ought to be ashamed of yourself to use the gentleman in that 
 sort of way,' squeaked a small, imp-like person, affecting sympathy, and 
 then trying to renew the sport. 
 
 " ' How would you like it yourself,' cried another, ' if you were a 
 stranger ? ' shaking his sandy locks with a knowing look, and knocking 
 off my hat as he spoke. 
 
 " 1 made a desperate blow at this offender. It did not take effect, from 
 the expedition with which he retreated, and I had prudence enough to 
 reflect that it would be better to recover my hat than to pursue the enemy. 
 Turning round, I saw my unfortunate beaver, or ' canister,' as it was called 
 by the gentry who had it in their keeping, bounding backwards and for- 
 wards between the Caledonian and his clan and the Jew and his tribe. 
 
 123 
 
Rules of the Stock Exchange. 
 
 " Covered with perspiration, foaming with rage, and almost expiring 
 from heat and exhaustion, I at last succeeded. I did not dare to reinstate 
 it, but was forced to grasp it with both hands, in order to save what re- 
 mained of it. I baffled several desperate snatches, one of which carried 
 away the lining, and was now trying to keep the enemy at bay, afraid 
 again to attack the host opposed to me, but not knowing how to retreat, 
 when a person who had not previously made himself conspicuous ap- 
 proached and interfered. ' Really, you had better go out ' ; at the same 
 time pointing to a door I had not seen before." 
 
 Comment is unnecessary ; and, however the practice may be repu- 
 diated by the members when out of the house, there are few who would 
 not, in it, act in a similar disreputable mode. 
 
 The constitution of the Stock Exchange is simple. Governed by a 
 committee of twenty-eight, with a chairman and deputy-chairman, an- 
 nually elected by the members, their power to expel, suspend, or repri- 
 mand is absolute ; their decision final ; and that decision, adds one of the 
 rules, " must be carried out forthwith." In cases of expulsion, the com- 
 mittee should not consist of less than twelve ; and of these, at least two 
 thirds must concur in the sentence. No bill or discount broker, no clerk 
 in any public or private establishment, — excepting those to the members 
 of the Stock Exchange, — no one in business, either in his own name 
 or in that of his wife, can be received as member. Every applicant 
 must be recommended by three members of two years' standing, who 
 must each give security for <^300 for two years. The committee meets 
 every alternate Monday, at one o'clock ; but a special meeting may at 
 any time be called by the chairman and deputy-chairman, or by any five 
 members. Brokers and jobbers, or dealers, as they are politely termed, 
 are not allowed to enter into partnership ; and, when a defaulter is ex- 
 cluded, his clerk is excluded with him. 
 
 Directly the books are closed at the Bank of England, the price of 
 stocks, excepting only bank stock, is quoted without the dividend. 
 
 When a defaulter, or one who cannot or will not pay the just claims 
 on him, is posted, a Hbel is avoided by the following words: — " Any 
 person transacting business with A. B., is requested to communicate with 
 C. D." 
 
 The rules of the Stock Exchange amount in number to 159, and are 
 calculated to meet every difficulty. The charge to the public for buying 
 and selling English stock is 2s. 6d. per cent. ; and the following, taken 
 from the third edition of Mr. Robinson's valuable " Share Tables," is the 
 commission on shares : — 
 
 s. 
 
 d. 
 
 1 
 
 3 per cent. 
 
 2 
 
 6 " 
 
 5 
 
 
 
 10 
 
 
 
 Under the value of £ 5 . . . . 
 Amounting in value tx) £ 5, and under £ 20 . 
 £20, " £50 . 
 
 " " £50 and above . 
 
 The terms used on the Stock Exchange have been in vogue for more 
 than a century ; and the origin of many may be traced to the early 
 transactions in the stock of the East India Company. Buying for the 
 
 124 
 
Life Assurance. 
 
 account has been described ; but " bull " and " bear," " backardation " 
 and " continuation," are understood only by the initiated. 
 
 " Bull " is a term applied to those who contract to buy any quantity of 
 government securities, without the intention or ability to pay for it ; and^ 
 who are obliged, therefore, to sell it again, either at a profit or loss, be- 
 fore the time at which they have contracted to take it. 
 
 " Bear " is a term applied to a person who has agreed to sell any 
 quantity of the public funds, of which he is not possessed, being, how- 
 ever, obliged to deliver it against a certain time. - 
 
 " Lame Duck " is applied to those who refuse or are unable to fulfil 
 the contracts into which they have entered. f 
 
 " Backardation " is a consideration given to keep back the delivery of 
 stock, when the price is lower for time than for money. 
 
 " Continuation " is a premium given when the price of funds in which 
 a person has a jobbing account open is higher for time than for money, 
 and the settling day is arrived, so that the stock must be taken at a dis- 
 advantage. In this case a percentage is paid to put ofi* the settlement, 
 and continue the account open. 
 
 " Jobber " is applied to those who accommodate buyers and sellers of 
 stock with any quantity they require. The dealer or jobber's profit is 
 generally one eighth per cent. 
 
 The " Broker " is the person employed by the public to sell or pur- 
 chase stock at a certain percentage. 
 
 " Omnium " is a term used to express the aggregate value of the differ- 
 ent stocks in which a loan is usually funded. 
 
 " Scrip " is embryo stock, before the whole of the instalments are paid. 
 
 CHAPTER XVIII. 
 
 Life Assurance. — Its Benefits. — Its Commencement. — Suicide of an Insurer. — 
 Insurance of Invalid Lives. — The Gresham. — Sketch of the West Middlesex 
 Delusion. 
 
 The day on which the first life-assurance office was established is 
 worthy of remembrance by the great mass of the middle class. Faulty 
 in construction, and erroneous in detail, it was the enunciation of a great 
 principle, the birth of a great blessing. Innovations were not made in 
 the eighteenth, any more than in the nineteenth century, however, with- 
 out opposition ; and when, in 1706, the Amicable commenced business, 
 prophets were plentiful in declaring it must fail, while others announced 
 that it would open the door to gambling, and was flying in the face of 
 Providence. But the excellence of the principle triumphed; and, al- 
 though one uniform rate prevailed for the sick and for the sound, for the 
 old and for the yoyng, the Amicable succeeded. The pale face of the 
 11* 125 
 
Suicide of a Policy Holder. 
 
 invalid was ro objection ; the purple hue of him who fared sumptuousljr 
 was no preventive. The man on the brink of the grave, and the youth 
 on the verge of manhood, paid the same premium ; and for c£5 per cent, 
 per annum, and £1 lOs. per cent, entrance-money, every one was en- 
 abled to insure his life. Such was the primitive plan of the first life 
 association. 
 
 The London Assurance and Royal Exchange corporations followed, in 
 1720. In 1762, the Equitable was established ; and, although a trifling 
 progress was made, the clumsy plan of equal payments, without reference 
 to years, was perpetuated, and five per cent, paid by all. When, how- 
 ever, the rates were varied in proportion to age, when sick men were 
 rejected, and only the healthy taken, a step was made in the right direc- 
 tion ; and life assur9.nce began to flourish with a vigor which astonished 
 even its promoters. 
 
 It is believed that England is the only state in which the insurance of 
 lives has never been prohibited. The Dutch, a commercial people, re- 
 fused to legalize it until a recent period ; and in France it was long 
 deemed unlawful, " because it is an offence against public decency to 
 set a price upon the life of a freeman, which is above all valuation." 
 Another great objection was the fear that individuals might destroy them- 
 selves to enrich their families ; and though this exaggerated view of the 
 case is provided for in modern policies, yet the following anecdote will 
 prove that the fear was not altogether groundless. So early as the 
 middle of the eighteenth century, the clause which excluded the repre- 
 sentatives of suicides from a participation in the amount insured excited 
 attention ; and an office was established, which, for a corresponding 
 increase of premium, paid the amount to the relatives of the self-mur- 
 derer. One man, deeply in debt, wishing to pay his creditors, and not 
 knowing how, went to the office, insured his life, and invited the insurers 
 to dine with him at a tavern, where several other persons were present. 
 After dinner he rose, and addressing the former, said, " Gentlemen, it 
 is fitting you should know the company you have met. These are my 
 tradesmen, whom I could not pay without your assistance. I am greatly 
 
 obliged to you ; and now " Without another word he bowed, pulled 
 
 out a pistol, and shot himself. 
 
 The number of insurances w^as, at first, necessarily veiy limited ; the 
 mode in which the directors transacted business, the premiums they re- 
 quired, the determination to take none but lives which were almost faultless, 
 the pernicious plan of occasionally resisting the payment of policies, the 
 absence of much opposition, all tended to reduce the business. When, 
 however, the capital of the country increased, and men looked earnestly 
 about them for new modes of investment, the profits and the principles of 
 life assurance were anxiously investigated, its demands inquired into, its 
 difliiculties overcome ; and though from 1706 to 1806 nine offices had 
 been found sufficient, yet from 1806 to 1846 the desire spread so rapidly, 
 that no less than one hundred and eleven were established. In 1820, 
 there were only twenty offices in the United Kingdom ; in 1830, their 
 number was exactly doubled ; in 1840, they had again doubled ; and from 
 1840 to 1845, they increased in the same proportion. 
 
 126 
 
I 
 I 
 
 I 
 
 The Indisputable Company. 
 
 The success which has attended these companies has induced capital- 
 ists to invest their money in similar schemes, and the result has been, 
 that during every period of excitement new associations have been 
 started, with new claims to patronage. Those claims were put prom- 
 inently forward to benefit themselves ; and life assurance companies 
 cannot greatly benefit their promoters without benefiting others. The 
 constant advertisements, the names of their directors, the statement 
 of their terms, the peculiarity of their constitution, pressed upon general 
 attention, the public mind gradually became possessed with the idea that 
 life insurances were for every class, and business increased. Every ob- 
 jection was met, every demand grappled with ; and there is now, prob- 
 ably, not a man in London who cannot, in a smaller or greater degree, 
 provide for those he may leave behind. The principal offices were 
 proprietary ; and the entire gain went to the shareholder. But the in- 
 surers began to see that the profits made by a corporation might as well 
 be made by themselves ; and companies which joined the proprietary 
 with the participating principle followed. Another movement was that 
 which divided the entire profits among the assured, reducing the premium 
 as the company prospered ; and so thoroughly is the value of life under- 
 stood, that a society, commencing on this plan, with fair premiums and 
 fair management, is as safe as a company with a capital of half a million. 
 
 But there were other difficulties to be met, as a pernicious plan ob- 
 tained of disputing the payment of policies when the life fell in, on trivial 
 and often unjustifiable grounds; the advantages of the system being 
 greatly reduced owing to the desire for gain of the proprietary offices. 
 To meet this, a society is now established, termed the Indisputable, which 
 holds the policy inviolable when once granted. 
 
 There still remained one class for whom life assurances were unavail- 
 ing. The anxiety for profits of the companies, the determination to 
 divide good dividends, the extreme desire to take none but unexception- 
 able lives, produced an evil, at first view, irremediable. The stringent 
 regulations, the declarations required, the -personal examination, and the 
 private inquiry, produced an unhappy effect. Average lives were de- 
 clined, and for him whose health was not perfect, there was no chance. 
 The healthy, but nervous man, whose pulse, when examined, beat like a 
 steam-engine, was very often refused ; and stories of rejected applicants, 
 which speak volumes, are prevalent. One gentleman was declined be- 
 cause he was deaf, as he ran more risk of being run over. Another was 
 refused because he had been three times bankrupt, and his system might 
 have suffered. A third was too full of health, and might die of apoplexy. 
 A fourth was deficient, and might die of decline. The old companies 
 were absolutely determined to take no life but what was unexceptionable. 
 The consequence was, that men in rude, robust health, if blind in one 
 eye, or deaf with one ear, were often rejected ; and there are innumer- 
 able instances of the refused party living to a good old age ; while cases 
 are not wanting, in which, after outliving doctor, actuary, and half the 
 board of directors, the very man who, thirty years before, was refused 
 at "any price, was gladly taken by the same company at the ordinary 
 premium. 
 
 127 
 
Insurance of Diseased Lives. 
 
 The possessor of sound health, who has provided for his family, cannot 
 comprehend the misery occasioned to the invaUd by the conviction that 
 his apphcation will be rejected ; and in a country where men labor long 
 in an impure atmosphere, there are too many whose lives are early dam- 
 aged. To these, every allusion to life assurance was an agony ; ancl it is 
 difficult to enter thoroughly into the distress of him who knew he would 
 die penniless, when a sudden sickness possessed him. Unnerved both 
 mentally and physically, he saw his last hour approach. Loathing the 
 trifling luxuries which sustained him, because they would impoverish his 
 family ; dreading the footsteps of the physician, as he thought of his fee ; 
 the love of his wife was no comfort, the voices of his children no pleas- 
 ure ; for he knew that his death would leave them to public or private 
 charity. Such was the position of the individual rejected by a life office. 
 
 But even this want has been responded to. Many offices now profess 
 to take invalid lives at an increased premium ; and two are really devoted 
 to this particular risk. The Invalid and Medical Life Assurance Com- 
 pany first began, and was successful ; and the Gresham, lately estab- 
 lished, has proved that the class for which it is specially intended is 
 numerous. Much may depend upon the judgment of the medical officer ; 
 but so great is the anxiety to insure, that the premium is of less im- 
 portance to the insured than in ordinary cases, and the office is able to 
 protect its interest. The idea has been supported and approved by 
 actuaries generally. The success of the Gresham is a proof of its merit. 
 Every man of feeling must cordially agree in the principle ; and the 
 speech of Mr. Marshall, cashier to the Bank of England, is one of many 
 proofs that the insurance companies, a quarter of a century ago, were 
 ignorant of their own interests.* 
 
 " I myself," said that gentleman, " fell under the class of declined 
 lives, and for the whole of my life have been deprived of the advantages 
 which are offered by life assurances. One-and-thirty years ago, I had the 
 misfortune to break a bloodvessel in my lungs, and had I proposed to 
 any office, that fact, as an honest man, I must have stated, and that state- 
 ment would have caused my rejection. From that time to this I have 
 enjoyed perfect health, and I stand before you this evening, a strong and 
 healthy man, a living example of the value of this society, and I present 
 to you a fact, to show that this is likely to be a profitable investment." 
 
 Another society deserves notice, from its admirable plan of uniting a 
 benevolent principle with the benefit derivable from life assurance, and 
 from its addressing a class, to the families of which life assurance is the 
 only barrier against absolute poverty. That class has been hitherto but 
 little thought of, though there is none on whom it would be better be- 
 
 * The writer can add his personal testimony to the necessity of some such office. 
 Twenty years ago, he suffered similarly to Mr. Marshall, and has since been debarred 
 from the' benefit of life assurance, althotigh in possession of good average health. 
 There are a tliousand other cases ; and the fact that the Gresham gradually increases 
 in business, and has in the first year granted policies to the amount of £> 150,000, pro- 
 ducing nearly £6,000 yearly, is very suggestive of the public requirements. The 
 fact, also, that in such a company no death has occurred during the first twelve 
 months, is honorable to the skill of its medical officer. 
 
 128 
 
Fraudulent Companies. 
 
 stowed, than on the clerks of England. Industrious, faithful, and intel- 
 ligent, they are almost compelled, by virtue of their position, to maintain 
 an appearance beyond their means. With incomes which just enable 
 them to pay their debts, and which provide for no contingencies, they are 
 to a great degree incapacitated from insuring their lives ; and solacing 
 themselves, therefore, with the idea that a small insurance would be of no 
 avail, they feel that they cannot afford a great one. To this class, there- 
 fore, a society which specially provides for its wants is a great benefit ; 
 and a kindly feeling between the clerk on the one side, and his superior 
 on the other, is encouraged, to the advantage of both, through the Prov- 
 ident Clerks' Mutual Life Assurance Association. 
 
 Many instances might be given of the value of this society ; and the 
 writer trusts that the few lines in which he has honestly and earnestly 
 indulged, for the sake of pointing attention to those offices which he 
 deems deserving notice, may be regarded in the light in which they are 
 written. 
 
 The cause of life assurance has occasionally received severe blows ; 
 and though, perhaps, less fraud has been attempted in these than in other 
 companies, yet there is one instance of deception, so boldly planned and 
 so successfully executed, as to stand out in strong relief in the history of 
 life assurance. 
 
 About the year 1837, the provincial papers were filled with advertise- 
 ments, drawing attention to the peculiar claims of the Independent West 
 Middlesex Life and Fire Assurance Company. Its capital was stated to 
 be one million ; it was declared to be a legal corporation ; and Acts of 
 Parliament, dated from 1696, were boldly quoted. Cautiously did the 
 promoters proceed in the metropolis, where they did not at first advertise, 
 contenting themselves with establishing agencies in various parts of the 
 country, and publishing advertisements in country papers. An imposing 
 array of names as directors, declared to be of the first character and 
 respectability, was promulgated ; and when such names as Drummond 
 and Perkins appeared in the list, the uninitiated believed the one to be the 
 great banker, and the other the rich brewer, bearing the same names. 
 To add to the delusion, the Bank of England was advertised as their 
 bankers ; and when they opened handsome premises in London, Dublin, 
 Edinburgh, and Glasgow, the minds of the many were thoroughly delud- 
 ed. Some notion may be formed of their intention from the fact, that 
 they not only insured lives on smaller premiums than other offices, but 
 gave larger annuities for smaller sums. According to their tables, a man 
 of thirty, by paying £ 100, could obtain £S yearly, and could insure his 
 life at ^1 15s. per cent.; thus making a clear interest of <£6 55. per 
 annum. 
 
 The deed of the company — for, strange to say, it had a deed — was 
 signed by any one who chose ; and the law-stationer applied indiscrim- 
 inately to all who came near him. Any one who asked for a situation 
 was made a governor. A schoolmaster, who requested a clerkship, was 
 made a director. An errand-man was employed as manager. A boy of 
 sixteen was appointed to a seat at the board. One director had been 
 tapman to a London tavern ; another had been dismissed from his employ 
 
 129 
 
Mr. Mackenzie's Developments. 
 
 as a jounieyman bell-hanger ; a third had been a gentleman's servant ; 
 all had orders to dress well, to place rings on their fingers, and adorn 
 their persons with jewelry ; fines being instituted if they omitted to wear 
 the ornaments provided. 
 
 The advertisements which blazoned the pretensions of the company, 
 the puffing to which they resorted, the declaration that they had taken 
 .£40,000 in one year, together with the terms they offered, attracted that 
 numerous class determined to get every thing cheap. Premiums to a 
 large amount were procured by them, and they prospered. 
 
 The attention of the established assurance offices had long been drawn 
 to these transactions ; and it was known that a great crash must one day 
 come ; byt they had not sufficient courage to declare the iniquity. It was 
 left, therefore, to individual energy to expose their doings, and to indi- 
 vidual resources to support the consequences. In March, 1839, Mr. Peter 
 Mackenzie, editor and proprietor of the Scotch Reformers'' Gaxette, hav- 
 ing investigated the question, and made careful inquiries which satisfied 
 him of the nature of the company, commenced a series of articles in that 
 paper, warning the public against transacting business with them. The 
 task was difficult and dangerous ; but it was boldly met, and skilfully 
 supported. The following extracts from the journal of Mr. Mackenzie 
 will show the earnest spirit in which he grappled with his task : — 
 
 " In a word, we raise our voice and warn the public to beware of this 
 so-called Independent West Middlesex Insurance Company." " It is a 
 false and fictitious company." " No better than a parcel of tricksters in 
 London, disowned, repudiated, or condemned by every respectable per- 
 son." " Will the mere statement of a parcel of swindlers in their own 
 favor entitle them to public favor, or secure public confidence ? " " Nor 
 shall we rest contented till we chase them out of every town and city in 
 her Majesty's dominions, or till they are fairly seized by the strong arm 
 of justice." " We defy the confederated bahd of swindlers, from the 
 highest to the lowest." 
 
 The wild fury of Mr. Mackenzie's opponents may be conceived. They 
 declared him to be a false and malicious calumniator. They published 
 counter-statements, assumed the aspect of injured and of innocent men, 
 and instituted separate actions against him for £ 12,000 damages. One 
 of the agents had been in London, and had the audacity to state, on his 
 return, that the deputy-governor of the Bank of England had personally 
 assured him of the respectability of the association. Mr. Mackenzie, 
 however, procured and published a denial from that gentleman ; and this 
 increased the hatred of the accomplices. Two thousand pounds were 
 placed at the disposal of their law agents, to destroy Mr. Mackenzie, who 
 appears to have been one of those not easily moved from a righteous 
 purpose. He continued his articles, he continued to warn the public ; 
 and though, when the actions brought against him in 1839 were dismissed 
 in 1840, they raised new suits, he persisted in his bold defiance, and did 
 not hesitate one moment in the task he had undertaken. They could 
 not, however, long conceal their practices ; and one fine morning, the 
 entire gang absconded, taking with them from the premises every article 
 of furniture, after having realized, in four years, a booty of .£250,000. 
 
 130 
 
I 
 
 I 
 
 I 
 
 Conclusion. 
 
 The distress which pervaded the middle and the lower classes was 
 great. Applications to magistrates were frequent. Aged men, who had 
 invested their all, went to the workhouse ; servants, who had bought an- 
 nuities with the savings of a life, were obliged to commence anew. 
 Parents, who imagined they had provided for their children, were half 
 broken-hearted. Day by day brought some new case, and day by day 
 evinced the importance of being contented with a fair and legitimate 
 percentage. 
 
 There is no knowing to what extent the evil might have reached had 
 not the boldness of Mr. Mackenzie induced him to attack the Independent 
 West Middlesex Company. The longer such an association lasts, the 
 more numerous are its constituents ; and to the above gentleman the 
 thanks of the entire country are due, for performing, at a personal risk, 
 and at a personal sacrifice of £ 700, a great public service. 
 
 The following extract from a letter, evincing the amenity of disposition 
 and choice of language of the person who conducted the delusion, may 
 prove an interesting close to the above narrative : — 
 
 " Thou art a scoundrel, and thy son no better. I give you and your lying rascal 
 
 of a notice, that if you or he should dare to publish any slander relative to my 
 
 character, I shall instruct my solicitor to prosecute you, perjured scoundrel. You 
 base wretch, swear against your own handwriting! What! swear you never bor- 
 rowed any money of me for the office. O wicked wretch ! I have your signature, 
 and my solicitor has seen it. Base, base, base, base ! Hang thyself with thy friend ! 
 
 "P. S. I have heard you have again plundered the office. O, how many times, you 
 wretch!" 
 
 131 
 
J 
 
APPENDIX. 
 
 12 
 
THE 
 
 ANATOMY OF EXCHANGE ALLEY; 
 
 OK, 
 
 A SYSTEM OF STOCK-JOBBING: 
 
 PROVING THAT SCANDALOUS TRADE, AS IT IS NOW CARRIED ON, TO 
 KNAVISH IN ITS PRIVATE PRACTICE, AND TREASON IN ITS PUBLIC.'' 
 
 The general cry against stock-jobbing has been such, and people have 
 been so long and so justly complaining of it as a public nuisance, and, 
 which is still worse, have complained so long without a remedy, that the 
 jobbers, hardened in crime, are at last come to exceed all bounds, and 
 'now, if ever, sleeping justice will awake, and take some notice of them, 
 and if it should not now, yet the diligent creatures are so steady to them- 
 selves, that they will, some time or other, make it absolutely necessary to 
 the government to demolish them. 
 
 I know they upon all occasions laugh at the suggestion, and have the 
 pride to think it impracticable to restrain them ; and one of the top of the 
 function the other day, when I casually told him that, if they went on, 
 they would make it absolutely necessary to the legislature to suppress 
 them, returned, that he believed it was as absolutely necessary for them 
 to do it now as ever it could be. But how will they do it ? It is im- 
 possible, said he ; but if the government takes credit, their funds should 
 come to market ; and while there is a market, we will buy and sell. 
 There is no effectual way in the world, says he, to suppress us but this, 
 viz., that the government should first pay all the public debts, redeem all 
 , the funds, and dissolve all the charters, viz. Bank, South Sea, and East 
 India, and buy nothing upon trust, and then, indeed, says he, they need 
 not hang the stock-jobbers, for they will be apt to hang themselves. 
 
 I must confess, I in part agree that this is an effectual way ; but I am 
 far from thinking it the only way to deal with a consideration of usurers, 
 who, having sold the whole nation to usury, keep the purse-strings of 
 poor and rich in their hands, which they open and shut as they please. 
 
 * The above tract appeared in 1719. 
 135 
 
Appendix. 
 
 But before I come to the needful ways for restraining those people, I 
 think it will be of some service to expose their practices to common view, 
 that the people may see a little what kind of dealers they are. 
 
 And first, they have this peculiar to them, and in which they outdo all 
 the particular pieces of public knavery that ever I met with in the world, 
 viz., that they have nothing to say for it themselves ; they have, indeed, 
 a particular stock of hardware, as the braziers call it, in their faces, to 
 bear them out in it ; but if you talk to them of their occupation, there is 
 not a man but will own it is a complete system of knavery ; that it is a 
 trade founded in fraud, born of deceit, and nourished by trick, cheat, 
 wheedle, forgeries, falsehoods, and all sorts of delusions ; coining false 
 news, this way good, that way bad ; whispering imaginary terrors, frights, 
 hopes, expectations, and then preying upon the weakness of those whose 
 imaginations they have wrought upon, whom they have either elevated 
 or depressed. If they meet with a cull, a young dealer that has money to 
 lay out, they catch him at the door, whisper to him, " Sir, here is a great 
 piece of news, it is not yet public, it is worth a thousand guineas but to 
 mention it ; I am heartily glad I met you, but it must be as secret as the 
 black side of your soul, for they know nothing of it yet in the coffee- 
 house ; if they should, stock would rise ten per cent, in a moment, and I 
 warrant you South Sea will be 130 in a week's time after it is known." 
 "Well," says the weak creature, " pr'y thee,, dear Tom, what is it?" 
 " Well, really. Sir, I will let you into the secret, upon your honor to 
 keep it till you hear it from other hands ; why, it is this, — the Pretender 
 is certainly taken, and is carried prisoner to the castle of Milan ; there 
 they have him fast. I assure you, the government had an express of it 
 
 from my Lord St s, within this hour." " Are you sure of it ? " says 
 
 the fish, who jumps eagerly into the net. " Sure of it ! why, if you take 
 your coach and go up to the secretaries' ofiice, you may be satisfied of it 
 yourself, and be down again in two hours, and, in the mean time, I will 
 be doing something, though it is but little, till you return." 
 
 Away goes the gudgeon with his head full of wildfire, and a squib in 
 his brain, and, coming to the place, meets a croney at the door, who 
 ignorantly confirms the report, and so sets fire to the mine ; for, indeed, 
 the cheat came too far to be balked at home ; so that, without giving him- 
 self time to consider, he hurries back full of the delusions, dreaming of 
 nothing but of getting a hundred thousand pounds, or purchase two ; and 
 even this money was to be gotten only upon the views of his being before- 
 hand with other people. 
 
 In this elevation he meets his broker, who throws more fireworks into 
 the mine, and blows him up to so fierce an inflammation, that he employs 
 him instantly to take guineas to accept stock of any kind, and almost at 
 any price ; for the news being now public, the artist made their price 
 upon him. In a word, having accepted them for fifty thousand pounds 
 more than he is able to pay, the jobber has got an estate, the broker two 
 or three hundred guineas, and the esquire remains at leisure to sell his 
 coach and horses, his fine seat and rich furniture, to make good the de- 
 ficiency of his bear-skins ; and, at last, when all will not go through it, he 
 must give them a brush for the rest. 
 
 136 
 
The Anatomy of Exchange Alley. 
 
 There aie who tell us, that the Exchange Alley improvements made 
 upon the news of the Pretender's being taken, were part of the plot, that 
 the late Earl of Mar having concerted the voyage of Voghera, and how 
 and in what manner the report of the Pretender's being there should 
 spread, who it should amuse, and how at one blow it should spread east 
 to Vienna, and northwest to Paris, and so on, forgot not to contrive it, as 
 at once should serve political ends in Italy and at Vienna : so, on the 
 other hand, it should not fail to serve a private view in Exchange Alley ; 
 and, at the same time that he deceived some of the Whigs who he owed 
 a large grudge to for shrewd turns at Preston and Dumblain, he might 
 also raise a tax upon them towards the incident changes of his wandering 
 circumstances. 
 
 I do not aver this story to be true, but the concert is so exact, and the 
 nature of it so agreeable to the stock-jobbing art, nay, and to the artists 
 also, whose correspondents are very punctual, especially since it is said 
 
 that Mr. T 's chief agent was formerly my Lord M r's broker ; 
 
 that I won't affirm it may be true ; but this I will venture to say of it, that 
 if we are often served thus, the Pretender may very easily raise a hun- 
 dred thousand pounds a year in Exchange Alley, for the carrying on an 
 invasion, and lay the tax wholly upon his enemies the Whigs, which, by 
 the way, I leave them to consider of. 
 
 But now that I make good the charge, viz., that the whole art and mys- 
 tery is a mere original system of cheat and delusion, I must let you see, 
 too, that this part of the comedy may be very well called, " A Bite for 
 the Biter," for which I must go back to the broker and his gudgeon; 
 the moneyed gentleman finding himself let into the secret, indeed, and 
 that he was bitten to the tune of £ 300,000 worse than nothing. After he 
 had, unhappily, paid as far as his ready money would go, of which piece 
 of honesty they say he has heartily repented, and is in hopes all that 
 come after him will forgive him for the sake of what followed, stopped 
 short, as he might well, you '11 say, when his money was all gone, and 
 bethinks himself. What am I doing ! I have paid away all this money 
 like a fool ; I was drawn in like an ass, by the eager desire of biting my 
 neighbours to a vast sum, and I have been fool enough in that ; but I have 
 been ten thousand times a worse fool to pay a groat of the money, espe- r 
 cially since I knew I could not pay it all. Besides, who but I would have 
 forgot the nature of the thing I was dealing in, and of the people I was 
 dealing with ? Why, is it not all a mere body of knavery .? Is not the | 
 whole system of stock-jobbing a science of fraud .'' and are not all the \ 
 dealers original thieves and pickpockets ? Nay, do they not own it them- 
 selves ? Have not I heard T. W., B. O., and F. S., a thousand times say 
 they know their employment was a branch of highway robbing, and only 
 differed in two things ; first, in degree, viz., that it was ten thousand times 
 worse, more remorseless, more void of humanity, done without necessity, 
 and committed upon fathers, brothers, widows, orphans, and intimate 
 friends ; in all which cases, highwaymen, generally touched with re- 
 morse, and affected with principles of humanity and generosity, stopped 
 short, and chose to prey upon strangers only. Secondly, in danger, viz., 
 that these rob securely ; the other, with the utmost risk that the highway- 
 12* 137 
 
Appendix. 
 
 man run, at the hazard of their lives, being sure to be hanged first or 
 last, whereas these rob only at the hazard of their reputation, which is 
 generally lost before they begin, and of their souls, which trifle is not 
 
 worth the mentioning. Have not I, I say, heard my broker, Mr. , 
 
 say all this and much more, " That no man was obliged to make good 
 any of their Exchange Alley bargains, unless he pleased, and unless he 
 was in haste to part with his money, which, indeed, I am not ; and have 
 not all the brokers and jobbers, when they have been bitten too hard, 
 said the same thing, and refused to pay ? 
 
 " Pray, how much did old Cud worth. Ph. C — p — m, and Mr. G g, 
 
 eminent jobbers, monarchs in their days of Exchange Alley, break for ? 
 And how much did they ever pay .? One, if I mistake not, compounded 
 at last for one penny per pound, and the other two for something less. 
 
 " In a word, they are all a gang of rogues and cheats, and Pll pay none 
 of them. Besides, my lawyer. Sir Thomas Subtle, tells me there is not a 
 man of them dares sue me ; no, though I had no protection to Jly to ; 
 and he states the case thus : — 
 
 " ' You have, Sir,' says Subtle, ' contracted to accept of stock at a high 
 price ; East India at 220, Bank at 160, South Sea 120, and the like. 
 Very well. They come to put it upon you, the stock being since fallen. 
 Tell them you cannot take it yet ; if they urge your contract, and de- 
 mand when you will take it, tell them you will take it when you think fit. 
 
 " ' If they swagger, call names, — as rogue, cheat, and the like, — 
 tell them, as to that, you are all of a fraternity ; there is no great matter 
 in it whether you cheat them, or they cheat you ; 't is as it happens in the 
 way of trade ; that it all belongs to the craft ; and, as the Devil's broker, 
 Whiston, said to parson Giffard, tell them you are all of a trade. If 
 they rage, and tell you the Devil will have you, and such as that, tell them 
 they should let the Devil and you alone to agree about that, it is none of 
 their business ; but when he comes for you, tell them you would advise 
 them to keep out of the way, or get a protection, as you have against 
 them. 
 
 " ' After this, it is supposed they will sue you at law. Then leave it to 
 me ; I '11 hang them up for a year or two in our courts ; and if ever in 
 that time the stock comes up to the price, we will tender the money in 
 court, demand the stock, and saddle the charges of the suit upon them. 
 Let them avoid it if they can.' 
 
 " This is my lawyer's opinion," says he to himself, " and I '11 follow 
 it to a tittle ; and so we are told he has ; and I do not hear that one stock- 
 jobber has begun to sue him yet, or intends it ; nor, indeed, dare they 
 do it." 
 
 This experiment, indeed, may teach understanding to every honest 
 man that falls into the clutches of these merciless men, called stock- 
 jobbers ; and I give the world this notice, that, in short, not one of their 
 Exchange Alley bargains need be otherwise than thus complied with. 
 And, let these buyers of bear-skins remember it, not a man of them dare 
 go to common law to recover the conditions ; nor is any man obliged, 
 farther than he thinks himself obliged in principle, to make good one of 
 his bargains with them. How far principle will carry any man to be just 
 
 138 
 
The Anatomy of Exchange Alley, 
 
 to a common cheat, that has drawn him into a snare, I do not, indeed, 
 know ; but I cannot suppose it will go a very great length, where there is 
 so clear, so plain, and so legal a door to get out at. 
 
 It must be confessed that, if the projected story of the taking of the 
 Pretender was acted in concert between Rome and Exchange Alley, 
 between my Lord Mar and a certain broker, as fame reports, — either the 
 broker is the devil of a Jacobite, or my Lord the devil of a broker, — it 
 must be acknowledged it was a far-fetched trick, and answered the end in 
 Exchange most admirably. 
 
 Nor can all the world tell us any other end that it could answer ; for 
 as to the pretences of deluding the imperialists on shore, or the British 
 men-of-war at sea, and so the better to facilitate the escape of the Pre- 
 tender to Spain, I undertake to prove that this is absurd and ridiculous ; 
 for the Pretender was embarked at Netunna, and gone away to sea thir- 
 teen days, at least, before this whim of people taken at Voghera was 
 talked of. 
 
 As to the amusements among the Courts at Vienna, Paris, and Lon- 
 don, they amounted to nothing at all, answered no end ; neither prompted 
 any design on one hand, or hindered any thing on the other. In a word, 
 we may challenge the world to tell us any one turn that was served by it, 
 or end answered by it, but this in Exchange Alley. 
 
 Nor was this so inconsiderable a design as not to be worth while to 
 form such a juggle, though a great way off; and, as far off as it is, if we 
 may believe the report of those who remember the machines and con- 
 trivances of that original of stock-jobbing. Sir F C . There are 
 
 Fthose who tell us letters have been ordered, by private management, to 
 be written from the East Indies, with an account of the loss of ships 
 which have been arrived there, and the arrival of ships lost ; of war with 
 the Great Mogul, when they have been in perfect tranquillity ; and of 
 peace with the Great Mogul, when he was come down against the factory 
 of Bengal with one hundred thousand men ; — just as it was thought proper 
 to calculate those rumors for the raising and falling of the stock, and 
 when it was for his purpose to buy cheap, or sell dear. 
 
 It would be endless to give an account of the subtleties of that capital 
 ch — t, when he had a design to bite the whole Exchange. As he was the 
 leading hand to the market, so he kept it in his power to set the price to 
 all the dealers. The subject then was chiefly the East India stock, though 
 there were other stocks on foot, too, though since sunk to nothing ; such 
 as the Hudson's Bay Company, the Linen Manufacture stock. Paper 
 stock, Saltpetre stock, and others, all at this day worse than nothing, 
 though some of them then jobbed up to 350 per cent, as the two first in 
 particular. 
 
 But the East India stock was the main point. Every man's eye, when 
 
 he came to the market, was upon the brokers who acted for Sir F . 
 
 Does Sir F sell or buy ? If Sir F had a mind to buy, the first 
 
 thing he did was to commission his brokers to look sour, shake their 
 heads, suggest bad news from India ; and at the bottom it followed, " I 
 have commission from Sir F to sell out whatever I can " ; and per- 
 haps they would actually sell ten, perhaps twenty thousand pounds. 
 
 139 
 
Appendix. 
 
 Immediately the Exchange (for they were not then come to the Alley) 
 was full of sellers ; nobody would buy a shilling ; till perhaps the stock 
 would fall six, seven, eight, ten per cent., sometimes more. Then the 
 cunning jobber had another set of men employed on purpose to buy, but 
 with privacy and caution, all the stock they could lay their hands on ; 
 till, by selling ten thousand pounds at four or five per cent, loss, he 
 would buy a hundred thousand pounds stock at ten or twelve per cent, 
 under price ; and, in a few weeks, by just the contrary method, set them 
 all buying, and then sell them their own stock again at ten or twelve per 
 cent, profit. 
 
 These honest methods laid the foundation, we will not say of a fine 
 great stone house, on a certain forest, but it certainly laid the foundation 
 of an opulent family, and initiated the crowds of jobbers in tha4; dexterity 
 in tricking and cheating one another, which, to this day, they are the 
 greatest proficients that this part of the world ever saw. 
 
 By this exactly-concerted intelligence, he then knew how to turn the 
 wages (a sort of jobbing then in mode, and which grew so infamous that 
 they were at length obliged to suppress it by Act of Parliament) which 
 way he pleased, and by which he got an immense sum of money. How 
 often did the gentleman run down true news as if it had been false, and 
 run up false news as if it had been true, by the force of his foreign in- 
 telligencers ! How often coin reports of great actions, to serve a turn ! 
 It is too late a trick to be forgot by many that were bit by it to the bone. 
 
 In a word, the putting false news upon us is nothing but an old trade 
 revived, — though, it must be confessed, this of the Pretender has been a 
 masterpiece, — and the worthy projector who has the credit of it must 
 pass for a dexterous manager as any the university of Exchange Alley 
 has bred up for thirty years past. 
 
 It had, also, one particular in it for which it was very remarkable. 
 Sham reports, false news, foreign letters, &;c., are things that have been 
 often trumped upon us, as above ; and the town have been, not long ago, 
 cheated to a good round sum that way ; but then they have been soon 
 detected, the morning news has been set to rights in the afternoon, or the 
 evening's heat has cooled by morning. But this trick had a fatal duration, 
 for it held us near a fortnight in a firm persuasion of the thing ; and even 
 then it continued but suspected only for some time longer, and was yet 
 longer before it was fully detected ; and even at last it was hardly con- 
 quered till the Jacobites laughed us out of it, and the Pretender was 
 looked for nearer home. 
 
 The assurance with which it was carried about the several places from 
 whence it was written, made it so effectually be swallowed down, that 
 really people saw no room to question the truth of it for a great while. It 
 was written from Rome, from Leghorn, from Genoa, from Turin, and from 
 Paris. Nay, it was even believed at court, and almost everywhere else. 
 
 Exquisite fraud ! Who could have believed that this had been born in 
 Exchange Alley, sent over to Rome, agreed to there, and executed in 
 such a manner as to cheat, not the town only, but all Europe ! 
 
 The authority that every one found attended the report, supported it 
 so that it possessed us all ; even those whose concern for the fact extorted 
 
 140 
 
The Anatomy of Exchange Alley. 
 
 tears from them, were not undeceived. Thus the hucksters had time to 
 play their game, and they made hay while the sun shone ; for, if we may 
 believe common fame, bargains, contracts, and agreements for stocks, 
 bear-skins included, amounted in that time to some hundred thousands 
 of pounds ; nay, some say to two millions and better, most of which was 
 to the loss of the believing party. 
 
 But what tricking, what fraud, what laying plots as deep as hell, and as 
 far as the ends of the earth, is here ! What cheating of fathers, and 
 mothers, and brothers, gulling widows, orphans, cozening the most wary, 
 and plundering the unwary ! And how much meaner robberies than 
 these bring the friendless even to the gallows every sessions ! 
 
 But I must not stop here. The story of the Pretender is over ; that 
 trump is played ; and the artful gamester is wanting a new trick, after 
 having played so many already that one would think invention was at an 
 end ; yet they have found it out, and we are just let into the secret. 
 
 Hitherto, craft and knavery appears to be their method ; but we shall 
 trace them now a little farther ; and, like true hussars, who plunder not 
 the enemy only, but their own army, as the opportunity presents, so these 
 men are now come to prey upon the government itself. 
 
 Let us look into the late lotteries ; had not a piercing eye detected the 
 roguery, and not the fall of other things taken off the edge of the people's 
 fancy for venturing. These artists have brought up the tickets to sixteen 
 shillings apiece, advance, even before the act was passed. That this 
 could not be but by securing the possession of all the tickets in their 
 own hands, except such select tickets as were not to come to market, I 
 say this could not be but by connivance, and this every one knows ; and 
 that this connivance again could not be but by some higher people than 
 those that were named to it, this, also, every one may know. Who they 
 were, is none of my business to inquire, though it is easy to guess. It Is 
 very hard when our statesmen come into a confederacy to bite the peo- 
 ple, and when dukes turn stock-jobbers. Yet that this was done is most 
 certain ; and what was this but making a property of the power that 
 might be in their hands, the better to bite the people ? For if the Parlia- 
 ment appointed <£ 500,000 in tickets, to be given out at a certain rate that 
 was low and reasonable, was it not to encourage the people, on whom the 
 rest of the national burden lies ? And if, by the craft and knavery of 
 jobbers, the people are made to pay £ 600,000 for them, which is much 
 about the case, pray, why not pay the hundred thousand pounds to the 
 public, either to pay off a hundred thousand pounds of debt, or to make 
 the burden of the current year a hundred thousand pounds lighter ? — of 
 which, 1 am sure, there is need enough. 
 
 It has been, indeed, our happiness, that a worthy member, being in- 
 formed of this abominable cheat, detected it, and laid it before the House ; 
 upon which a vote was passed to make void all bargains make for tickets 
 before the act was passed ; so the biters were bitten ; and a certain Sir 
 
 George was obliged to refund ; but the roguery of the design was 
 
 never a jot the less for that. 
 
 But the fatal influence of this growing evil does not end here, and I 
 must trace stock-jobbing now to its new-acquired capacity of intermed- 
 
 141 
 
Appendix. 
 
 dling with the public, assisting rebellion, encouraging invasion ; and if I do 
 not bring the stock-jobbers, even the Whigs among them, to be guilty of 
 treason against their king and country, and that of the worst kind, too, 
 then I do nothing. 
 
 Had the stock-jobbers been all Jacobites by profession, or had the em- 
 ployment led them by the necessity of their business to put king and 
 nation, and particularly their own, to bargain and sale ; and had the feel- 
 ing of news been their property, and they had an act of Parliament, or 
 patent, to entitle them to the sole privilege of imposing what false things 
 they pleased on the people, I should have had much the less reason to 
 have complained of their roguery, and have rather turned myself to the 
 rest of them people, who are the subject they work upon, and only have 
 stood at Exchange Alley end, and cried out, " Gentlemen, have a care 
 of your pockets." 
 
 Again, had it been a private club, or society of men, acting one among 
 another, — had the cheats, the frauds, and the tricks they made use of, 
 in which the English rogue was a fool to them, being practised upon 
 themselves only, and, like gamesters at a public board, they had only 
 played with those that came there to play with them ; in this case, also, 
 I should have held my tongue, and only put them in mind of an old 
 song, every stanza of which chimed in with, " Tantararara, rogues all, 
 rogues all." 
 
 But when we find this trade become a political vice, a public crime, 
 and that, as it is now carried on, it appears dangerous to the public, that, 
 whenever any wickedness is in hand, any mischief by the worst of the 
 nation's enemies upon the wheel, the stock-jobbers are naturally made 
 assistant to it, that they become abettors of treason, assistant to rebellion 
 and invasion, then it is certainly time to speak, for the very employment 
 becomes a crime, and we are obliged to expose a sort of men who are 
 more dangerous than a whole nation of enemies abroad, an evil more 
 formidable than the pestilence, and, in their practice, more fatal to the 
 public, than an invasion of Spaniards. 
 
 It is said by some, that the principal leaders in the jobbing trade at that 
 time, and to whom most part of the satire in this work ought to be point- 
 ed, are Whigs, members of Parliament, and friends to the government ; 
 and that, therefore, I had best have a care of what I say of them. 
 
 My first answer is, So I will. I will have a care of them ; and, in the 
 next place, let them have a care of me ; for if I should speak the whole 
 truth of some of them, they might be Whigs ; but I dare say they would 
 
 be neither P men, or friends to the government very long ; and it is 
 
 very hard his Majesty should not be told what kind of friends to him 
 such men are^ 
 
 Besides, I deny the fact. These men friends to the government ! Jesu 
 Maria! The government may be friendly to them in a manner they 
 do not deserve ; but as to their being friends to the government, that is 
 no more possible than the Cardinal Alberoni or the Chevalier de St. 
 George are friends to the government ; and, therefore, without reflecting 
 upon persons, naming names, or the like, — there will be no need of 
 names, the dress will describe them, — I lay down this new-fashioned 
 
 142 
 
I 
 
 I 
 
 I 
 
 I 
 
 The Anatomy of Exchange Alley. 
 
 proposition, or postulatum, take it which way you please, that I will make 
 it out by the consequences of what I am going to say. 
 
 1. That stock-jobbing, as it is now practised, and as is generally under- 
 stood by the word stock-jobbing, is neither less or more than high-treason 
 in its very nature, and in its consequences. 
 
 2. That the stock-jobbers, who are guilty of the practices I am going to 
 detect, are eventually traitors to King George, and to his government, 
 family, and interest, and to their country, and deserve to be used at least 
 as confederates with traitors, whenever there are any alarms of invasions, 
 rebellions, or any secret practices against the government, of what kind 
 soever. 
 
 This is a black charge, and boldly laid, and ought therefore to be 
 effectually made out, which shall be the work of a few pages in the fol- 
 lowing sheets. 
 
 1. I lay down this as a rule, which I appeal to the laws of reason to 
 support, that all those people who, at a time of public danger, whether of 
 treasonable invasion from abroad, or traitorous attempts to raise insurrec- 
 tions at home, shall willingly and wittingly abet, assist, or encourage the 
 traitors invading or rebelling, are equally guilty of treason. 
 
 2. All those who shall endeavour to wcEdcen, disappoint, and disable the 
 government in their preparations, or discourage the people in their assist- 
 ing the government to oppose the rebels or invaders, are guilty of treason. 
 
 All that can be alleged in contradiction to this, — and perhaps that 
 could not be made out neither, — is, that they are not traitors within the 
 letter of the law ; to which I answer, if they were, I should not satirize 
 them, but impeach them. But if it appears that they are as effectually 
 destructive to the peace and safety of the government, and of the king's 
 person and family, as if they were in open war with his power, I do the 
 same thing, and fully answer the end proposed. 
 
 As there are many thieves besides housebreakers, highwaymen, lifters, 
 and pickpockets, so there are many traitors besides rebels and invaders, 
 and, perhaps, of a much worse kind ; for, in a dispute between a certain 
 lord and a woman of pleasure in the town, about the different virtue of 
 the sexes, the lady insisted that the men were aggressors in the vice, and 
 that, in plain English, if there were no whore-masters, there would be no 
 whores ; so, in a word, if there were no parties at home, no disaffection, 
 no traitors among ourselves, there would be no invasions from abroad. 
 
 Now, I will suppose for the purpose only, that the people I am speaking 
 of were not disaffected to the government ; I mean, not originally and in- 
 tentionally pointing their intention at the government ; nay, that they are 
 hearty Whigs, call them as we please ; yet, if it appear they are hearty 
 knaves, too, will do any thing for money, and are, by the necessity of 
 their business, obliged, or by the vehement pursuit of their interest, that 
 is to say, of their profits, pushed upon things as effectually ruinous and 
 destructive to the government, as the very buying arms and ammunition 
 by a protest Jacobite, in order to rebellion, could be, are they not traitors 
 even in spite of principle, in spite of the name of Whig ; nay, in spite of 
 a thousand meritorious things that might otherwise be said of them, or 
 done of them ? 
 
 143 
 
Appendix. 
 
 A gunsmith makes ten thousand firelocks in the Minories, the honest 
 man may be a Whig, he designs to sell them to the government to lay up 
 in the tower, or to kill Spaniards, or any of the rest of the king's enemies ; 
 a merchant comes and buys some of them, and says they are for the 
 West Indies, or to sell into France. But upon inquiry, it appears they 
 are bought for rebellion ; the undesigning gunsmith comes into trouble, 
 of course, and it will be very hard for him to prove the negative, that 
 when he has furnished the rebels with arms, he had no share in the 
 rebellion. 
 
 To bring this home to the case in view, who were the men who, in the 
 late hurry of an expected invasion, sunk the price of stock fourteen or 
 fifteen per cent. } Who were the men that made a run upon the Bank 
 of England, and pushed at them with some particular pique, too, if pos- 
 sible, to have run them down, and brought 'em to a stop of payment .? 
 And what was the consequences of these things ? Will they tell us that 
 running upon the bank, and lowering the stocks, was no treason } We 
 know that, literally speaking, those things are no treason. But is there 
 not a plain constructive treason in the consequences of it } Is not a wil- 
 ful running down the public credit, at a time when the nation is threatened 
 with an invasion from abroad, and rebellion at home .? Is not this adding 
 to the terror of the people .'' Is not this disabling the government, dis- 
 couraging the king's friends, and a visible encouragement of the king's 
 enemies ? Is not all that is taken from the credit of the public, in such 
 an occasion, added to the credit of the invasion ? Does not every thing 
 that weakens the government strengthen its enemies } And is not every 
 step that is taken in prejudice of the king's interest a step tsiken in aid of 
 the designed rebellion .'' The kindest thing that can be said of a certain 
 triumvirate of jobbers, whose hands have been deepest in this part of the 
 work, and who, indeed, had more obligations upon them than any other 
 men in the town, to have assisted the public interest and advanced the 
 credit of the nation, is, that they did not think what they did, and that 
 this excuse may not serve them another time, I may soon furnish them 
 with an anatomy of some of the conduct of that little body of Number 
 Three, that when they see their mistakes with the eyes that other men 
 see them, they may at their leisure give a better turn to the measures of 
 unbounded avarice. 
 
 I now, that I may not be said to speak without a precedent, I humbly 
 refer to those moneyed gentlemen to a case recent in memory, and even 
 in their own, which, though indeed they may think fit to have forgotten 
 for a time, they will all call to mind when they hear of it again ; and this 
 was the case of two goldsmiths (knights also, and one of them member of 
 Parliament, too) in Fleet Street, who pushed at the Bank of England at 
 the time that the Pretender's invasion from France was in its preparation. 
 One of them, it was said, had gathered a quantity of Bank-bills, to the 
 value of near £ 100,000, and the other a great sum, though not so many, 
 and, it was said, resolved to demand them all at once. 
 
 Let the gentlemen I point at look back to the printed papers that year ; 
 let them inquire what construction was put upon it ; let them inquire 
 how the government resented it ; how my Lord Treasurer Godolphin 
 
 144 
 
The Anatomy of Exchange Alley. 
 
 jd upon it as a mine formed to blow up the queen's affairs, and 
 low, in a word, all the friends of the government took it to be such a step 
 favor of the Pretender, as was impossible to consist with duty to the 
 rueen. 
 
 Let them inquire farther, with what difficulty Sir R Ho 
 
 wiped off the imputation of being a favorer of the rebellion, and how 
 often, in vain, he protested he did it with no such view, and how hard the 
 
 Whigs were to believe him. Sir F C d, indeed, carried it with 
 
 a higher hand, and afterwards pretended to refuse the bills of the Bank ; 
 but still declared he did it as a goldsmith, and as a piece of justice to 
 himself in some points in which the Bank had, as he alleged, used him 
 ill. But, in general, it was looked upon as an open affront to the govern- 
 ment, and an abetting and countenancing the invasion of the Pretender 
 from abroad, and the rebellion intended at home. Nor was the govern- 
 Iment, much less were the authors of private papers and prints, wanting in 
 [letting them know it ; nay, if I am not misinformed, they were threatened 
 fwith being treated as enemies to the government ; and if things had gone 
 on to extremities, they had doubtless been marked out as persons the gov- 
 ernment were to take care of. 
 
 Now I only speak in plainer words ; it was said then, that such men as 
 endeavoured to run down the public credit were enemies to the govern- 
 ment. I know no distinction in the case, that should require so much 
 flenderness. Every subject of King George, who is at the same time an 
 tenemy to King George, is a traitor ; and every overt act of that enmity, 
 fit being his duty to his utmost to favor, aid, and support the government, 
 jfe an overt act of treason, let it be gilded over with what fine words the 
 persons please, 't is the same thing, if it is not literal treason, and within 
 reach of the statute, yet the crime is in itself of the same nature. 
 
 And let any one tell me what is the difference between two dealers in 
 Paris credit in the time of a French invasion, and three dealers in paper 
 credit in the time of a Spanish invasion, or what sanctity in Birchin 
 Lane more than in Fleet Street, that one should be a protection for the 
 same practice that was resented so justly in another. 
 
 Were those stock-jobbers sincerely and heartily in the interest of King 
 George and his government, as they pretend loudly, what run could there 
 be upon the Bank, what ebb of credit, what sinking of stock ? The 
 honest Whigs, who were friends to the government at that time, mentioned 
 above, who not only knew their duty, but how to make it seasonable and 
 useful, acted after another manner. When others ran upon the Bank 
 with all the fury possible, they carried all the money thither they could 
 gather up ; nay, I could name a man in this city, who, having but .£500 
 in the world, carried it all into the Bank to support the credit of the pub- 
 lic ; and the story being told to her Majesty by the late Lord Treasurer 
 Godolphin, the sense of such fidelity so moved the queen, that she sent 
 him a hundred pounds as a gift, a royal token of her accepting such an 
 act of loyalty ; and caused my Lord to give him an obligation from the 
 Treasury to repay him the whole £500 if any disaster to the Bank should 
 have made it doubtful. 
 
 Where 's the like courage and conduct to be found now } Is it in 
 13 145 
 
Appendix, 
 
 being ? Are the gentlemen less able ? Or is it that they have not the 
 same zeal for King George as that honest citizen had for the queen ? 
 Or do they doubt the king being as sensible of the service ? Or what is 
 the matter that the public credit had rather met with injurious juggling 
 and jobbing upon it, than real support, either from Exchange Alley, 
 Birchin Lane, or some other places less noted ? 
 
 Let those men reflect a Httle upon the circumstances the public credit 
 must have been in by such mismanagement, if the Spanish attempt had 
 been made, and if these easterly Protestant winds had not chopped in, by 
 which Providence has given the government time to put itself in a posture 
 of defence, so as now not to be afraid of them ; and if the capital stock 
 of the persons interested in the funds is now sunk a million in the real 
 value of them as they stood before even at the market, which is nothing 
 but what the matter of fact will justify, to what degree would the same 
 current, if it had gone on, have sunk the estates of all the moneyed men 
 in England ? 
 
 In what manner would money have been raised upon a new credit for 
 any immediate exigencies that might have happened ? And should the 
 government have been supported, — nay, though the Parliament had 
 granted funds, — while these men had made all credit ebb, perhaps, to 
 twenty-five or thirty per cent, discount ? And is not this, then, a species 
 of treason and rebellion ? 
 
 It was very remarkable, that, in the juncture of those things, the Jac- 
 obites could not refrain taking notice how easy it was to set the citizens 
 plundering the Bank, and even the Exchequer, too ; for, had this gone on, 
 the funds, which are, in effect, the Exchequer itself, would have gone 
 down hill hand in hand with the Bank ; credit would have borne equal 
 pace in one as well as in the other ; and the government would no more 
 have been able to borrow, than the Bank would have been able to pay. 
 
 It is scarce fit to enter into a description of all the mischievous conse- 
 quences which necessarily follow running down the public credit, in case 
 of such dangers as I have mentioned above. If I should fully describe 
 them, it would appear incredible. Every one will allow that this practice 
 of the jobbers, carried on a little farther, would indeed appear to be the 
 worst kind of treason. 
 
 But it is needful, after having said thus much of the crime, to say 
 something of the place, and then a little of the persons, too. The centre 
 of the jobbing is in the kingdom of Exchange Alley, and its adjacencies. 
 The limits are easily surrounded in about a minute and a half, viz., step- 
 ping out of Jonathan's into the Alley, you turn your face full south ; 
 moving on a few paces, and then turning due east, you advance to Gar- 
 raway's ; from thence, going out at the other door, you go on still east 
 into Birchin Lane ; and then halting a little at the Sword- blade Bank, to 
 do much mischief in fewest words, you immediately face to the north, 
 enter Cornhill, visit two or three petty provinces there in your way west, 
 and thus having boxed your compass, and sailed round the whole stock- 
 jobbing globe, you turn into Jonathan's again ; and so, as most of the 
 great follies of life oblige us to do, you end just where you began. 
 
 But this is by way of digression ; and even still, before I come to the 
 
 146 
 
The Anatomy of Exchange Alley. 
 
 main case, I am obliged to tell you that, though this is the sphere of the 
 jobbers' motion, the orb to which they are confined, and out of which they 
 cannot well act in their way, yet it does not follow but that men of for- 
 eign situation (I mean foreign as to them, I do not mean foreign as to 
 nation) ; nay, some whose lustre is said to be too bright for the hemisphere 
 of a coffee-house, have yet their influence there, and act by substitutes 
 and representatives. But first I must speak to originals. 
 
 C , a man of brass sufliicient for much more business than he can 
 
 be trusted with, is said to manage for three blue ribbonds, and for four or 
 five cash-keepers, who tell more money than their own. He fetches and 
 carries with such indefatigable application, that he is said never to fail his 
 appointments to a minute, however remote from one another. Wherever 
 he appears, he makes an Exchange Alley in his person, and a court in 
 his audience ; he is himself a Jonathan's coffee-house in little ; though he 
 be at a cockpit, he realizes Exchange Alley in every place ; and yet he 
 rather is directed than directs ; and, like a certain great general, famed 
 for more fire than phlegm, is fitter to drive than to lead. 
 
 S has twice the head, but not half the business as C is said 
 
 to have, yet he gets more money for himself, and C gets more for 
 
 other folks. S is as cunning as C is bold, and the reserve of 
 
 one with the openness of the other, makes a complete Exchange Alley 
 
 man. C jumps at every thing, and as he got the start of the world 
 
 at his beginning, by venturing more than he was worth, so he deals now 
 with all men as if they ventured more than they are worth. Originally 
 he was a bite, which, in modern language, is a sharper ; or, being fully 
 interpreted, may signify the head-class of the fraternity called pick- 
 pockets. 
 
 T , a gamester of the same board, acts in concert with C and 
 
 S , and makes together a true triumvirate of modern thieving. He 
 
 .inherits the face of C , with the craft of S , but seems to take 
 
 ifitate upon him, and acts the reserved part more than either ; yet even 
 this, too, is all grimace, for wherever he can be sure to kill, he can't fawn 
 like an Irishman. 
 
 They are all three of yesterday in their characters, yet they are old in 
 their crime, viz., of resolving to be rich at the price of every man they 
 can bubble. Their first blow was aimed at the Bank, but there they 
 were outwitted; and the great Lord Treasurer Godolphin, in the late 
 reign, gave them their just characters from that action. The defeat 
 they met with there sticks so close to them, that they reserve the meas- 
 fures of their revenge, not to cool, no, not till the charter of the Bank 
 'shall expire. 
 
 However, their wings being clipped by the clause then obtained in an 
 Act of Parliament, — that no society, corporation, dec, should issue out 
 bills of credit as a bank, but the Bank of England only, — they were 
 obliged ever since to turn stock-jobbers, or, if we may speak properly of 
 them, they are the stock-jobbers' masters ; for they have so many bear- 
 skins pawned to them at a time, so much stock deposited with them upon 
 bottomree, as it might be called, that indeed they may be called the city 
 pawnbrokers ; and I have been told, that they have had fifty stock- 
 
 147 
 
Appendix. 
 
 jobbers and brokers bound hand and foot, and laid in heaps at their doors 
 at a time. 
 
 The next trick they tried, and which was, indeed, the masterpiece of 
 their knavery, was the getting an assignment of the forfeited estates in 
 Ireland into their hands. Indeed, they began the world upon this pros- 
 pect, and expected to have had the whole kingdom of Ireland mortgaged 
 to them. But here, too, they were disappointed, and had they not found 
 a man that had as much money as themselves, and more honesty, that 
 bargain of the forfeited estates had been the last they had made in the 
 world. 
 
 The endeavours they use to cheat that gentleman, after he had deliv- 
 ered them from a blow that would have blown them up, is another black 
 part of their story that remains to be told, for the illustration of their 
 character, at another time ; but in the interim, 't is enough to say, that 
 he who delivered them as fools, knew how to deliver himself from them 
 as knaves ; and so they were dropped out of the Irish bargain, to their 
 great mortification. 
 
 Now they stand ready, as occasion offers, and profit presents, to stock- 
 job the nation, cozen the Parliament, ruffle the Bank, run up and down 
 stocks, and put the dice upon the whole town. 
 
 They had another flap with a Fox-tail, to the scandal of their politics, 
 in the late vote about the tickets of the lottery which I mentioned above. 
 What market they will make of it is well enough known. But the plot 
 was never the less cunning, and 't is certain the knavery is not the less 
 visible for the miscarriage. I come next to their more modern manage- 
 ment." 
 
 Whenever they call in their money, the stock-jobbers must sell ; the 
 bear-skin men must commute, and pay differences money ; then down 
 come the stocks, tumbling two or three per cent. ; then the tools must 
 sell and their masters buy ; the next week they take in stocks again, then 
 the jobbers buy, and the managers sell. Thus the jobbers bite their 
 friends, and these men bite the jobbers, qui sarpat sharpabitur, — Ex- 
 change Alley Latin : they that are let into the secret will understand it. 
 
 The truth is, it has been foretold by cunning men, who often see what 
 can't be hid, that these men, by a mass of money which they command 
 of other people's, as well as their own, will, in time, ruin the jobbing 
 trade. But 't will be only like a general visitation, where all distempers 
 are swallowed up in the plague, like a common calamity, that makes 
 enemies turn friends, and drowns lesser grievance in the general deluge. 
 For if the reprisal trade should adjourn from Exchange Alley to Birchin 
 Lane, it may seem to be like the banishing usury from the city of Rome, 
 which transferred it to a Jew at Genoa, a monk at Naples, and a banker 
 at Venice, who, it was said, had no less than seven-and-twenty princi- 
 palities in Italy mortgaged to them at a time, besides two kingdoms, seven 
 duchies, and the jewels of the crown of France. 
 
 Having thus given the blazing characters of three capital sharpers of 
 Great Britain, knaves of lesser magnitude can have no room to shine ; 
 the Alley throngs with Jews, jobbers, and brokers ; their names are 
 needless, their characters dirty as their employment ; and the best thing 
 
 148 
 
The Anatomy of Exchange Alley. 
 
 that I can yet find to say of them is, that there happens to be two honest 
 men among them, — Heavens preserve their integrity ; for the place is a 
 snare, the employment itself fatal to principle, and, hitherto, the same 
 observation which I think was very aptly made upon the Mint, will justly 
 turn upon them, — that many an honest man has gone in to them, but 
 cannot say that I ever knew one come an honest man out from them. 
 
 But to leave them a little, and turn our eyes another way, is it not sur- 
 prising to find new faces among these scandalous people, and persons even 
 too big even for our reproof ? Is it possible that stars of another latitude 
 should appear in our hemisphere ? Had it been Sims or Bowcher, or 
 gamesters of the drawing-rooms or masquerades, there had been little to 
 be said ; or had the groom-porters been transposed to Garraway's and 
 Jonathan's, it had been nothing new ; true gamesters being always ready 
 to turn their hand to any play. But to see statesmen turn dealers, and 
 men of honor stoop to the chicanery of jobbing; to see men at the 
 
 offices in the morning, at the P house about noon, at the cabinet 
 
 at night, and at Exchange Alley in the proper intervals, what new phe- 
 nomena are these ? What fatal things may these shining planets (like the 
 late great light) foretell to the state and to the public ; for when states- 
 men turn jobbers, the state may be jobbed. 
 
 It may be true that a treasurer or cash-keeper may be trusted with 
 more money than he is worth, and many times it is so ; and if the man 
 be honest, there may be no harm in it : but when a treasurer plays for 
 more money than he is worth, they that trust him run a risk of their 
 money, because, though he may an honest man, he may be undone. I 
 speak of private, not public treasurers. 
 
 Indeed, it requires some apology to say such a one may be an honest 
 man ; it would be hard to call him an honest man, who plays away any 
 man's money that is not his own, or more than he is able to pay again 
 with his own. But if it be dishonest to play it away, that is, lose it at 
 play, 't is equally dishonest to play with it, whether it be lost or no ; 
 because, in such a case, he that plays for more than he can pay, his mas- 
 ter runs the hazard more than himself; nay, his master runs an unequal 
 hazard, for if the money be lost, 't is the master's, if there is gain, 't is 
 the servant's. 
 
 Stock-jobbing is play ; a box and dice may be less dangerous, the 
 nature of them are alike a hazard ; and if they venture at either what is 
 not their own, the knavery is the same. It is not necessary, any more 
 than it is safe, to mention the persons I may think of in this remark ; 
 they who are the men will easily understand me. 
 
 In a word, I appeal to all the world, whether a man that is intrusted 
 with other men's money (whether public or private is not the question) 
 ought to be seen in Exchange Alley. Would it not be a sufficient objec- 
 tion to any gentleman or merchant, not to employ any man to keep his 
 cash, or look after his estate, to say of him he plays, he is a gamester, or 
 he is given to gaming and stock-jobbing, which is still worse, gives the 
 same, or a stronger ground of objection in like cases. 
 
 Again, are there fewer sharpei-s and setters in Exchange Alley than at 
 the Groom Porters ? Is there less cheating in stock-jobbing than at plav } 
 13* 149 ^ ^ 
 
Appendix. 
 
 Or, rather, is there not fifty times more ? An unentered youth coming 
 to deal in Exchange Alley is immediately surrounded with bites, setters, 
 pointers, and the worst set of cheats, just as a young country gentleman 
 is with bawds, pimps, and spongers, when he first comes to town. It is 
 ten thousand to one, when a forward young tradesman steps out of his 
 shop into Exchange Alley, I say 't is ten thousand to one but he is un- 
 done : if you see him once but enter the fatal door, never discount his bills 
 afterwards, never trust him with goods at six months' pay any more. 
 
 If it be thus dangerous to the mean, what is it to the great ? I see 
 only this difference, that in the first the danger is private, in the latter 
 public. 
 
 It has not been many years since elections for members of 
 
 came to market in Exchange Alley, as current as lottery-tickets now, 
 and at a price, like these, much above what any Parliament allowed them 
 to go at. While this was carried on, a great many honest men exclaimed 
 against it, and exposed it ; nay, several Acts of Parliament were pro- 
 posed for regulating elections, and preventing bribery and corruption ; 
 but all this would not do, and this, indeed, was one of the happy conse- 
 quences of that otherwise necessary act for triennial Parliaments ; and I 
 firmly believe, that it is owing very much to the late suspending that act 
 for a time, that these things are not come to market again. 
 
 It may easily be remembered, that the first occasion of the Exchange 
 Alley men engaging in the case of elections of members was in King 
 William's time, on the famous disputes which happened between the Old 
 East India Company and the New ; which, having held a great while, 
 and having embarrassed, not the city only, but the whole nation, and even 
 made itself dangerous to the public business, it was expected it should be 
 fully decided by the House of Commons. To this end, the members of 
 'both companies, with all the trick, artifice, cunning, and corruption, that 
 money and interest could arm them with, bestirred themselves to be 
 chosen members. 
 
 Brokers rid night and day from one end of the kingdom to the other, 
 to engage gentlemen to bribe corporations, to buy off competitors, and to 
 manage the elections. You will see the state of things at that time, and 
 the danger this stock-jobbing wickedness had brought the public to, if you 
 please to read the following exclamation of the honest freeholders at that 
 time, which was presented to the public by way of complaint. The thing 
 was laid before the king first, and before the Parliament afterwards ; and 
 it was his Majesty's sense of the consequence, that made him resolve to 
 bring the two East India Companies to unite their stocks ; for, in a word, 
 the stock-jobbers embroiled the whole nation. 
 
 There was a book published some years ago, and when the stock-job- 
 bing people were thought as willing, yet not quite so daring or so cunning, 
 as they are now ; it was entitled, " The Villany of the Stock-jobbers." 
 ^*' Indeed, it set them out in their true colors, and for some time gave them 
 
 a little shock ; for the truth was, they jobbed King William and the gov- 
 ernment at that time at such a rate, that, in spite of the invincible valor 
 and resolution of the soldieiy, in spite of the most glorious prince and 
 most vigilant general the world had ever seen, yet the enemy gained 
 
 150 
 
 \ 
 
The Anatomy of Exchange Alley. 
 
 tpon us every year ; the funds were run down, the credit jobbed away in 
 Exchange Alley, the king and his troops devoured by mechanics, and 
 sold to usury ; tallies lay bundled up like Baifi faggots in the hands of 
 brokers and stock-jobbers ; the Parliament gave taxes, laid funds, but the 
 loans were at the mercy of those men ; and tliey showed their mercy, 
 indeed, by devouring the king and the army, the Parliament, and, indeed, 
 the whole nation, bringing that great prince sometimes to that exigence, 
 through unexpressible extortions that were put upon him, that he has even 
 gone into the field without his equipage, nay, even without his army ; the 
 regiments have been unclothed when the king has been in the field, and 
 the willing, brave English spirit, eager to honor their country, and follow 
 such a king, have marched even to battle without either stockings or 
 shoes, while his servants have been every day working in Exchange 
 Alley, to get his own money of the Stock-jobbers, even after all the hor- 
 rible demands of discount have been allowed ; and, at last, scarce fifty 
 per cent, of the money granted by Parliament has come into the Ex- 
 chequer, and that late, too late for that service, and by driblets, till the 
 king has been tired of the delay, and been even ready to give up the 
 cause. 
 
 We have just now had a test of their cunning on the subject of the 
 invasion. These were the men that made the first advantage of the 
 news ; immediately those that were to put stock upon any man at a high 
 price tendered it, the accepters, forced by the demand, call in their 
 money on their hand, pay the difference, the price falls, a general run 
 upon the Bank follows, and stock-jobbing began it. 
 
 Say this was no design, yet if every alarm of the foolish, or the timor- 
 ous, or the false, is capable to set the humor afloat by the agency of Ex- 
 change Alley, is as dangerous to the public safety as a magazine of gun- 
 powder is to a populous city. 
 
 But if it be by design, then, whenever the Pretender is to be pawned 
 upon us by any foreign power that can but talk of lending five or six thou- 
 sand men, our public credit is at his mercy, by the agency of Exchange 
 Alley and the brokers. 
 
 The story of the invasion from Spain, we hope, is now over. Indeed, 
 at the worst, I saw no such reason to be surprised to that degree as was 
 the case here. Let us look back, and see what injury to the public has 
 the very rumor been ! what damage to credit ! what stop to trade ! what 
 interruption to our general commerce ! besides sinking above a million 
 sterling upon our estates ; and every farthing of this is occasioned by the 
 stock-jobbers, and in the consequence of their contrivance, and by no other 
 means ; for as to the design of an invasion, or that they resolved to come 
 hither at all, though we have evident proofs of that, because some of 
 them have been actually landed, yet we cannot yet resolve the question 
 positively, whether it was ever worth our being so much alarmed, as we 
 have been in Exchange Alley. 
 
 While these sheets were at the press, we had another little test of their 
 knavery to the public ; and it is not at all owing to them that the thing 
 ran no farther. The contrary winds and storms, &c., had disappointed 
 the king's enemies, and the Spanish fleet was driven back to Spain in a 
 
 151 
 
Appendix. 
 
 shattered and defeated condition, as appears by the public account of those 
 things : but in the interval of this news came an account, on the other 
 hand, that some of the party were arrived in Scotland, that they had beat 
 it up, notwithstanding all the opposition of nature, the hindrances of winds 
 and seas. Immediately «tocks fell two per cent., nor did the good news 
 of the defeated return of the rest animate these men to keep up the in- 
 terest, by which it appears that they are acted more by the bad principle 
 than by the good ; that they choose rather to do evil than to do good ; 
 that they sink faster than they rise, and are willinger to do harm than 
 good to the government. 
 
 From whence I infer, that the government, looking lipon them as they 
 really are, rather enemies than friends to the general interest, should 
 rather incline to root them out than preserve them. AMEN. 
 
 152 
 
English Funds, 
 
 ENGLISH FUNDS. 
 
 HIGHEST AND LOWEST PRICE OF THREE PER CENTS IN EACH 
 YEAR, FROM 1731 TO 1848. 
 
 1731 
 
 1732 
 
 1733 
 
 1734 
 
 1735 
 
 1736 
 
 1737 
 
 1738 
 
 1739 
 
 1740 
 
 1741 
 
 1742 
 
 1743 
 
 1744 
 
 1745 
 
 1746 
 
 1747 
 
 1748 
 
 1749 
 
 1750 
 
 1751 
 
 1752 
 
 1753 
 
 1754 
 
 1755 
 
 1756 
 
 1757 
 
 1758 
 
 1759 
 
 1760 
 
 1761 
 
 1762 
 
 1763 
 
 1764 
 
 1765 
 
 1766 
 
 Highest 
 
 Lowest. 
 
 
 99 
 
 — 94 
 
 1767 
 
 101 
 
 — 96 
 
 1768 
 
 103 
 
 — 92 
 
 1769 
 
 94 
 
 — 90 
 
 1770 
 
 98 
 
 - 92 
 
 1771 
 
 113 
 
 — 100 
 
 1772 
 
 107 
 
 — 105 
 
 1773 
 
 106 
 
 — 102 
 
 1774 
 
 105 
 
 — 97 
 
 1775 
 
 101 
 
 — 98 
 
 1776 
 
 101 
 
 — 98 
 
 1777 
 
 102 
 
 — 98 
 
 1778 
 
 103 
 
 — 100 
 
 1779 
 
 99 
 
 — 90 
 
 1780 
 
 92 
 
 — 85 
 
 1781 
 
 89 
 
 — 75 
 
 1782 
 
 86 
 
 — 81 
 
 1783 
 
 91 
 
 — 76 
 
 1784 
 
 102 
 
 — 91 
 
 1785 
 
 101 
 
 -- 98 
 
 1787 
 
 103 
 
 — 97 
 
 1789 
 
 106 
 
 — 101 
 
 1790 
 
 106 
 
 — 104 
 
 1791 
 
 104 
 
 — 102 
 
 1792 
 
 101 
 
 — 90 
 
 1793 
 
 90 
 
 — 88 
 
 1794 
 
 91 
 
 — 86 
 
 1795 
 
 98 
 
 — 89 
 
 1796 
 
 . 88 
 
 — 79 
 
 1797 
 
 83 
 
 — 76 
 
 1798 
 
 88 
 
 — 66 
 
 1799 
 
 87 
 
 — 63 
 
 1800 
 
 , 96 
 
 — 82 
 
 1801 
 
 86 
 
 — 80 
 
 1802 
 
 . 91 
 
 — 85 
 
 1803 
 
 90 
 
 — 87 
 
 1804 
 
 Highest. Lowest. 
 
 91 — 
 
 87 
 
 93 — 
 
 88 
 
 89 — 
 
 84 
 
 87 - 
 
 78 
 
 88 — 
 
 81 
 
 95 — 
 
 87 
 
 87 — 
 
 86 
 
 89 — 
 
 86 
 
 90 — 
 
 87 
 
 90 — 
 
 81 
 
 80 — 
 
 76 
 
 72 — 
 
 61 
 
 64 — 
 
 59 
 
 63 — 
 
 60 
 
 . 59 — 
 
 56 
 
 61 — 
 
 53 
 
 . 68 — 
 
 58 
 
 57 — 
 
 54 
 
 . 71 — 
 
 55 
 
 78 — 
 
 69 
 
 . 8U- 
 
 711 
 
 80i — 
 
 70i 
 
 . 89| — 
 
 751 
 
 97i- 
 
 72i 
 
 . 81 — 
 
 704 
 
 72&- 
 
 62| 
 
 . 70i- 
 
 61 
 
 701- 
 
 53i 
 
 . 56i — 
 
 47i 
 
 .58 — 
 
 47J 
 
 . 69 — 
 
 521 
 
 67i- 
 
 60 
 
 . 70 — 
 
 54i 
 
 79 — 
 
 66 
 
 . 73 — 
 
 50i 
 
 58J- 
 
 53| 
 
 153 
 
Appendix. 
 
 1805 
 1806 
 1807 
 1808 
 1809 
 1810 
 1811 
 1812 
 1813 
 1814 
 1815 
 1816 
 1817 
 1818 
 1819 
 1820 
 1821 
 1822 
 1823 
 1824 
 1825 
 1826 
 
 Highest. 
 
 Lowest. 
 
 
 62 — 
 
 57 
 
 1827 
 
 641- 
 
 58i 
 
 1828 
 
 641- 
 
 57| 
 
 1829 
 
 69J- 
 
 621 
 
 1830 
 
 701- 
 
 63| 
 
 1831 
 
 71 — 
 
 634 
 
 1832 
 
 66| — 
 
 611 
 
 1833 
 
 63 — 
 
 55J 
 
 1834 
 
 67i- 
 
 54h 
 
 1835 
 
 72i- 
 
 eih 
 
 1836 
 
 65| — 
 
 531 
 
 1837 
 
 641- 
 
 59h 
 
 1838 
 
 844- 
 
 62 
 
 1839 
 
 82 — 
 
 73 
 
 1840 
 
 79 — 
 
 645 
 
 1841 
 
 701- 
 
 651 
 
 1842 
 
 781 - 
 
 681 
 
 1843 
 
 83 — 
 
 75^ 
 
 1844 
 
 851- 
 
 72 
 
 1845 
 
 96J — 
 
 84| 
 
 1846 
 
 944- 
 
 75 
 
 1847 
 
 84i- 
 
 73J 
 
 1848 
 
 Highest. Lowest. 
 
 . 89i — 
 
 761 
 
 88§ — 
 
 80J 
 
 . 944- 
 
 85| 
 
 . 944- 
 
 77i 
 
 . . 841 - 
 
 745 
 
 85| — 
 
 811 
 
 . . 914- 
 
 844 
 
 93 — 
 
 87^ 
 
 . 92^ — 
 
 894 
 
 924 — 
 
 86| 
 
 . . 93J — 
 
 875 
 
 . 954- 
 
 90t 
 
 . 93J — 
 
 894 
 
 93| — 
 
 85| 
 
 . 90i — 
 
 874 
 
 . 95J - 
 
 88 
 
 . . 975 - 
 
 92} 
 
 . 1014 — 
 
 96h 
 
 . lOOf — 
 
 915 
 
 . 971- 
 
 934 
 
 . 94 — 
 
 781 
 
 . 89i- 
 
 80 
 
 LOANS RAISED SINCE 1793, WITH THE RATES OF INTEREST. 
 
 Year. 
 1793 
 1794 
 1795 
 1796 
 (( 
 
 1797 
 
 (( 
 
 1798 
 1799 
 
 (( 
 
 1800 
 1801 
 
 Amount. 
 
 £4,500,000 
 
 11,000,000 
 
 22,600,000 
 
 18,000,000 
 
 7,500,000 
 
 18,000,000 
 
 16,120,000 
 
 17,000,000 
 
 3,000,000 
 
 15,500,000 
 
 20,500,000 
 
 28,000,000 
 
 154 
 
 Per cent. 
 
 £4 3s. 4d. 
 
 . 4 10 9 
 
 4 15 8 
 
 . 4 14 9 
 
 4 12 2 
 . 5 12 6 
 
 6 6 10 
 .649 
 
 5 12 5 
 .550 
 
 4 12 2 
 .556 
 
Acts relative to Brokers. 
 
 Year. Amount. 
 
 1802 £25,000,000 
 
 1803 12,000,000 
 
 1804 14,500,000 
 
 1805 22,500,000 
 
 1,500,000 
 
 1806 . ... . . 20,000,000 
 
 1807 14,200,000 
 
 " 1,500,000 
 
 1808 10,500,000 
 
 1809 14,600,000 
 
 1810 13,400,000 
 
 1811 
 1812 
 1813 
 
 12,000,000 
 
 22,500,000 
 
 27,000,000 
 
 " 22,000,000 
 
 1814 24,000,000 
 
 1815 36,000,000 
 
 1835 15,000,000 
 
 1847 8,000,000 
 
 Per cent. 
 
 £3 
 
 19s. 2d. 
 
 . 5 
 
 2 
 
 
 
 5 
 
 9 
 
 2 
 
 . 5 
 
 3 
 
 2 
 
 5 
 
 16 
 
 4 
 
 
 19 
 
 7 
 
 
 14 
 
 7 
 
 
 16 
 
 4 
 
 
 14 
 
 6 
 
 
 11 
 
 7 
 
 
 4 
 
 2 
 
 
 13 
 
 6 
 
 
 5 
 
 7 
 
 5 
 
 8 
 
 4i 
 
 5 
 
 6 
 
 2 
 
 4 
 
 14 
 
 1 
 
 5 
 
 12 
 
 4 
 
 3 7 6 
 
 A LIST OF ACTS RELATIVE TO BROKERS. 
 
 13 Edward L 
 
 . Statute 
 
 S 5 
 
 . Anno 1284. 
 
 1 James I. . . . 
 
 u 
 
 21 . 
 
 1604. 
 
 8 and 9 William m. . 
 
 u 
 
 32 
 
 . 1697, expired 1707. 
 
 6 Anne .... 
 
 « 
 
 16 . 
 
 1707. 
 
 10 « . 
 
 ^ ^ u 
 
 19 
 
 . 1711. 
 
 6 George I. . . . 
 
 u 
 
 18 . 
 
 1720. 
 
 3 George 11. . . . 
 
 (( 
 
 31 
 
 . 1730, for Bristol. 
 
 7 George 11. . . . 
 
 u 
 
 8 . 
 
 1739. 
 
 155 
 
Directors of the Bank of England, 
 
 DIRECTOES OF THE BANK OF ENGLAND 
 
 FROM 1694 TO 1847. 
 
 Sir John Houblon . 
 Michael Godfrey 
 Sir Thomas Abney 
 Sir James Bateman 
 Brooke Bridges 
 George Boddington 
 James Denew 
 Sir Henry Furnese 
 Sir William Gore . 
 Thomas Goddard 
 Sir Gilbert Heathcote 
 Sir William Hedges 
 Sir James Houblon 
 Sir John Huband 
 Abraham Houblon 
 Sir Theodore Janssen 
 John Knight . 
 Samuel LethieuUier 
 John Lordell . 
 William Patterson 
 Robert Raworth . 
 Sir William Scawen 
 Obadiah Sedgwick . 
 John Smith 
 Nathaniel Tench . 
 Sir John Ward . 
 Henry Cornish 
 Edward Clarke . 
 Sir John Cope, Sen^ 
 Peter Godfrey . 
 
 1694 
 
 Anthony Stevens . 
 
 (( 
 
 Sir William Ashhurst 
 
 ({ 
 
 Robert Bristow 
 
 (( 
 
 Samuel Bultell . 
 
 (( 
 
 John Page . 
 
 {( 
 
 Sir Francis Eyles 
 
 (( 
 
 John Shipman 
 
 (( 
 
 Sir Nathaniel Gould . 
 
 « 
 
 Samuel Lock 
 
 (t 
 
 Sir Peter Delme 
 
 (( 
 
 William Dawsonne 
 
 It 
 
 Francis Stratford 
 
 u 
 
 Peter Gott . 
 
 (( 
 
 Sir Richard Levett . 
 
 (( 
 
 John Devinck 
 
 (( 
 
 John Rudge 
 
 (( 
 
 Richard Perry 
 
 (( 
 
 John Reynardson 
 
 (( 
 
 William Desbouverie 
 
 (( 
 
 Josiah Diston 
 
 (( 
 
 John Gould . 
 
 (( 
 
 John Hanger 
 
 {( 
 
 Humphrey South . 
 
 (( 
 
 Sir Robert Clayton . 
 
 (( 
 
 Sir Gerard Conyers 
 
 {( 
 
 Abraham Hill . 
 
 1695 
 
 Samuel Heathcote . 
 
 (C 
 
 Charles Chambrelan . 
 
 (( 
 
 Sir William Hodges 
 
 (( 
 
 Sir Charles Peers 
 
 1695 
 1697 
 
 it 
 
 1698 
 
 1699 
 
 (( 
 1700 
 
 u 
 
 1701 
 
 1702 
 
 (( 
 (( 
 (( 
 
 1703 
 
 li 
 
 1705 
 
 156 
 
Directors of the Bank of England. 
 
 Sir Thomas Scawen 
 
 . 1705 
 
 Sir Edward Bellamy . 
 
 . 1723 
 
 Sir John Cope, Jun. . 
 
 1706 
 
 Matthew Howard 
 
 (( 
 
 James Dolliffe 
 
 . 1708 
 
 John Olmuns . 
 
 (( 
 
 John Emilie 
 
 (( 
 
 Sir Francis Forbes . 
 
 1724 
 
 William Gore 
 
 , 1709 
 
 William Fawkener 
 
 (( 
 
 Sir Justus Beck 
 
 1710 
 
 Sir John Heathcote . 
 
 1725 
 
 William Henry Comellissen 
 
 ti 
 
 John NicoU . 
 
 . 1726 
 
 John Dolben 
 
 (( 
 
 Sir Francis Porten , 
 
 (( 
 
 Jeremiah Powell . *, 
 
 (< 
 
 Stamp Brooksbank 
 
 . 1728 
 
 Sir Denis Dutry 
 
 1711 
 
 James Gaultier . 
 
 (( 
 
 Heneage Fetherstone 
 
 i( 
 
 William Hunt 
 
 (t 
 
 Sir Philip Jackson 
 
 It 
 
 William Snelling 
 
 u 
 
 John Ward, Jun. . 
 
 •c 
 
 Clement Boehm . 
 
 . 1729 
 
 Sir George Thorold . 
 
 (( 
 
 Joseph Paice, Jun. 
 
 1730 
 
 Mr. Robert Atwood 
 
 . 1712 
 
 Matthew Raper 
 
 «» 1 
 
 Richard Gary . 
 
 (( 
 
 James Spilman . 
 
 (( 
 
 Sir Joseph Hodges 
 
 <( 
 
 Robert Alsop , . 
 
 . 1731 
 
 Sir Randolph Knipe . , 
 
 (( 
 
 John Bance 
 
 (( 
 
 Christopher Lethieullier 
 
 << 
 
 Henry Neale . 
 
 . 1732 
 
 Matthew Raper . 
 
 C( 
 
 Robert Thornton 
 
 (( 
 
 John Edmonds 
 
 . 1713 
 
 Charles Savage 
 
 . 1733 
 
 Sir Richard Houblon . 
 
 (( 
 
 Benjamin Lethieullier 
 
 1734 
 
 Richard Chiswell . , 
 
 . 1714 
 
 Benjamin Longuet . 
 
 (( 
 
 Sir William JollifF . 
 
 « 
 
 Sir John Thompson , 
 
 « 
 
 Henry Lyell . 
 
 (( 
 
 Christopher Tower 
 
 (( 
 
 William Thompson . 
 
 (( 
 
 John Eaton Dodsworth 
 
 <c 
 
 Sir John Eyles 
 
 . 1715 
 
 Frederick Frankland 
 
 . 1736 
 
 Mr. Barrington Eaton 
 
 1716 
 
 Samuel Trench . 
 
 (( 
 
 John Francis Fauquier . 
 
 11 
 
 Alexander Sheafe . 
 
 . 1737 
 
 Humphrey Morice 
 
 (( 
 
 Richard Chiswell, Jun. 
 
 1738 
 
 Moses Raper . 
 
 (( 
 
 Sir John Lequesne 
 
 (( 
 
 Sir Joseph Eyles 
 
 1717 
 
 Benjamin Mee . 
 
 (( 
 
 Sir William Humphreys 
 
 . 1719 
 
 Mark Weyland 
 
 (( 
 
 Richard Du Cane 
 
 1720 
 
 Claude Fonnereau 
 
 1739 
 
 Samuel Holden 
 
 11 
 
 Charles Palmer . 
 
 It 
 
 Bryan Benson . 
 
 1721 
 
 John South . • 
 
 tt 
 
 Thomas Cooke 
 
 n 
 
 Matthew Beachcroft 
 
 . 1741 
 
 Delillers Carbonnel . 
 
 1722 
 
 Robert Nettleton 
 
 « 
 
 Nathaniel Gould . 
 
 (( 
 
 Thomas Whateley . 
 
 « 
 
 Henry Herring . 
 
 (( 
 
 Merrik Burrell . 
 
 1742 
 
 Hon. Horatio Townshend 
 
 (( 
 
 James Lever . 
 
 (( 
 
 14 
 
 157 
 
 
Directors of the Bank of England, 
 
 Theophilus Salwey 
 
 . 1742 
 
 Lyde Browne . 
 
 Robert Marsh . 
 
 1743 
 
 George Drake 
 
 James Theobald . 
 
 <« 
 
 George Hayter . 
 
 Robert Salusbury 
 
 1744 
 
 Benjamin Hopkins . 
 
 Peter Thomas 
 
 (( 
 
 George Peters . 
 
 Bartholomew Burton . 
 
 1746 
 
 Mark Weyland . 
 
 Godfrey Thornton . 
 
 . 1748 
 
 Roger Boehm . 
 
 John Weyland . 
 
 (( 
 
 Matthew Howard , 
 
 Thomas Winterbottom . 
 
 . 1749 
 
 Benjamin BraJIfill 
 
 Charles Boehm . 
 
 1750 
 
 William Snell 
 
 Matthew Clairmont 
 
 (( 
 
 Samuel Bosanquet 
 
 Samuel Handley 
 
 (( 
 
 Martyn Fonnereau 
 
 Richard Stratton . 
 
 (i 
 
 Godfrey Thornton 
 
 Harry Thompson 
 
 It 
 
 Daniel Giles, Jun. 
 
 Sir Samuel Fludyer 
 
 . 1753 
 
 Christopher Puller 
 
 John Sargent 
 
 (( 
 
 Thomas Dea . 
 
 William Cooper . 
 
 . 1754 
 
 Richard Clay . 
 
 Philip De la Haize . 
 
 (( 
 
 Thomas Raikes 
 
 Sir Thomas Chitty 
 
 . 1755 
 
 Benjamin Mee, Jun. . 
 
 Peter Du'Cane . 
 
 (( 
 
 John Sargent, Jun. 
 
 Edward Payne 
 
 . 1756 
 
 William Cooke . 
 
 Thomas Plurner 
 
 (( 
 
 Samuel Thornton . 
 
 Peter Theobald . 
 
 tt 
 
 Thomas Scott Jackson 
 
 Robert Dingley . 
 
 1757 
 
 Job Matthew . 
 
 James Sperling 
 
 (( 
 
 Joseph Nutt 
 
 Henry Plant 
 
 1759 
 
 Thomas Boddington 
 
 Samuel Beachcroft 
 
 . 1760 
 
 Benjamin Winthrop . 
 
 Gustavus Brander 
 
 1761 
 
 Beeston Long, Jun. 
 
 Daniel Booth 
 
 ti 
 
 James Maude 
 
 John Cornwall . 
 
 tt 
 
 Isaac Osborne 
 
 Peter Gaussen 
 
 (C 
 
 Sir Brook Watson . 
 
 James Haughton Langston . 
 
 (( 
 
 John Harrison 
 
 Edmund Wilcox . 
 
 (( 
 
 Bicknell Coney . 
 
 William Bowden 
 
 1763 
 
 John Whitmore, Jun. 
 
 William Ewer 
 
 (( 
 
 Peter Isaac Thellusson 
 
 Richard Neave . 
 
 (C 
 
 Moses Yeldham 
 
 John Fisher . 
 
 . 1764 
 
 William Manning, Jun. 
 
 Christopher Hake, Jun. 
 
 (( 
 
 John Pearce . 
 
 Thomas Thomas . 
 
 . 1765 
 
 John Puget 
 
 Edward Darell . 
 
 1767 
 
 Thomas Lewin 
 
 William Halhed . 
 
 It 
 
 Peter Cazalet . 
 
 1768 
 
 158 
 
Directors of the Bank of England, 
 
 William Mellish . 
 
 . 1792 
 
 Sir John Henry Pelly . 
 
 . 1821 
 
 Edward Simeon 
 
 (( 
 
 David Barclay . 
 
 a 
 
 Alexander Champion, Jun. 
 
 . 1794 
 
 John Cockerell 
 
 n 
 
 George Dorrien . 
 
 <( 
 
 Henry Porcher . 
 
 (i 
 
 Jeremiah Harman . 
 
 (( 
 
 William Cotton . 
 
 1822 
 
 Nathaniel Bogle French . 
 
 1796 
 
 John Benjamin Heath 
 
 1823 
 
 Charles Pole . 
 
 (( 
 
 William R. Robinson . 
 
 1825 
 
 Thomas Amyand 
 
 1798 
 
 James Morris 
 
 1827 
 
 Thomas Langley . 
 
 ii 
 
 William Thompson 
 
 u 
 
 Ebenezer Maitland 
 
 (( 
 
 Humphrey St. John Mildmay 
 
 1828 
 
 Peter Free . 
 
 . 1800 
 
 John Oliver Hanson 
 
 1829 
 
 Jeremiah Olive . 
 
 (( 
 
 Charles Pascoe Grenfell 
 
 1830 
 
 Henry Smith 
 
 . 1802 
 
 Abel Lewes Gower 
 
 (( 
 
 Stephen Thornton 
 
 (( 
 
 Sheffield Neave . 
 
 i( 
 
 John Bowden 
 
 . 1803 
 
 Rowland Mitchell . 
 
 1833 
 
 Cornelius Buller 
 
 (( 
 
 Christopher Pearse . 
 
 1834 
 
 Alexander Baring . 
 
 . 1805 
 
 Henry Davidson . 
 
 . 1835 
 
 John Josiah Holford . 
 
 u 
 
 Bonamy Dobree . . . 
 
 (( 
 
 John Baker Richards 
 
 u 
 
 Thomson Hankey, Jun. . 
 
 (( 
 
 Samuel Drew 
 
 1806 
 
 Henry James Prescott 
 
 t( 
 
 Henry Davidson . 
 
 . 1807 
 
 Robert Barclay 
 
 . 1837 
 
 John Stainforth . 
 
 (( 
 
 John Malcolmson 
 
 <{ 
 
 Sir Robert Wigram 
 
 (( 
 
 John Gellibrand Hubbard 
 
 1838 
 
 John Campbell . 
 
 1808 
 
 Charles Frederick Huth . 
 
 (( 
 
 William Haldimand . 
 
 . 1809 
 
 Alfred Latham 
 
 (< 
 
 George Blackman 
 
 1810 
 
 Thomas Charles Smith 
 
 (( 
 
 William Tierney Robarts 
 
 (< 
 
 Thomas Matthias Weguelin . 
 
 (( 
 
 John Horsley Palmer . 
 
 1811 
 
 Edward Henry Chapman . 
 
 1840 
 
 Andrew Henry Thompson 
 
 (( 
 
 Kirkman Daniel Hodgson 
 
 (( 
 
 Sir Thomas Neave 
 
 1812 
 
 William Little . . 
 
 1842 
 
 Richard Mee Raikes 
 
 ({ 
 
 David Powell 
 
 ti 
 
 James Pattison, Jun. . 
 
 1813 
 
 Francis Wilson . 
 
 ti 
 
 William Ward . 
 
 . 1817 
 
 Arthur Edward Campbell 
 
 1843 
 
 Samuel Hibbert . 
 
 1819 
 
 Thomas Tooke, Jun. . 
 
 (( 
 
 Timothy Abraham Curtis 
 
 . 1820 
 
 Henry Lancelot Holland 
 
 1844 
 
 John Rae Reid . 
 
 (( 
 
 Thomas Newman Hunt 
 
 (i 
 
 159 
 
The Bank of England. 
 
 ANNUAL DIVIDENDS OF THE BANK OF ENGLAND, 
 
 From 1694 to 1849 inclusive. 
 
 
 Per cent 
 
 
 
 Per cent. 
 
 Per cent. 
 
 Per cent. 
 
 1694-1697 
 
 8 
 
 
 1706 18| 
 
 1715 
 
 71 
 
 1724 
 
 6 
 
 1698 
 
 7 
 
 
 1707 7| 
 
 1716 
 
 8 
 
 1725 
 
 6 
 
 1699 
 
 9i 
 
 
 1708 12i 
 
 1717 
 
 8 
 
 1726 
 
 6 
 
 1700 
 
 101 
 
 
 1709 8i 
 
 1718 
 
 8 
 
 1727 
 
 6 
 
 1701 
 
 9 
 
 
 1710 7i 
 
 1719 
 
 7i 
 
 1728 
 
 5i 
 
 1702 
 
 12 
 
 
 1711 7 
 
 1720 
 
 n 
 
 1729 
 
 5i 
 
 1703 
 
 16i 
 
 
 1712 8 
 
 1721 
 
 6 
 
 1730 
 
 51 
 
 1704 
 
 151 
 
 
 1713 8 
 
 1722 
 
 6 
 
 1731 
 
 51 
 
 1705 
 
 15i 
 
 
 1714 8 
 
 1723 
 
 6 
 
 
 
 Dividends, with the highest and lowest 
 
 prices of Bank of England Stock 
 
 :. 
 
 Year. Dividend. 
 
 Highest 
 
 t,. 
 
 Lowest. 
 
 Year. 
 
 Dividend. 
 
 Highest. 
 
 Lowest. 
 
 1732 
 
 51 
 
 152 
 
 — 
 
 109 
 
 1758 
 
 4i 
 
 123 — 
 
 116 
 
 1733 
 
 5i 
 
 151 
 
 — 
 
 130 
 
 1759 
 
 4i 
 
 123 — 
 
 109 
 
 1734 
 
 5i 
 
 140 
 
 — 
 
 132 
 
 1760 
 
 4i 
 
 114 — 
 
 101 
 
 1735 
 
 5i 
 
 146 
 
 — 
 
 138 
 
 1761 
 
 4i 
 
 116 — 
 
 98 
 
 1736 
 
 5i 
 
 151 
 
 — 
 
 148 
 
 1762 
 
 4i 
 
 119 — 
 
 91 
 
 1737 
 
 5i 
 
 151 
 
 — 
 
 142 
 
 1763 
 
 4i 
 
 131 — 
 
 111 
 
 1738 
 
 5i 
 
 145 
 
 — 
 
 140 
 
 1764 
 
 41 
 
 127 — 
 
 112 
 
 1739 
 
 5i 
 
 144 
 
 — 
 
 115 
 
 1765 
 
 5 
 
 136 — 
 
 126 
 
 1740 
 
 5i 
 
 144 
 
 — 
 
 138 
 
 1766 
 
 5 
 
 139 — 
 
 135 
 
 1741 
 
 H 
 
 143 
 
 — 
 
 135 
 
 1767 
 
 H 
 
 159 — 
 
 142 
 
 1742 
 
 5i 
 
 143 
 
 — 
 
 136 
 
 1768 
 
 5i 
 
 170 — 
 
 158 
 
 1743 
 
 5i 
 
 148 
 
 — 
 
 145 
 
 1769 
 
 5i 
 
 175 — 
 
 149 
 
 1744 
 
 5i 
 
 148 
 
 — 
 
 116 
 
 1770 
 
 H 
 
 153 — 
 
 105 
 
 1745 
 
 5i 
 
 147 
 
 — 
 
 133 
 
 1771 
 
 H 
 
 155 — 
 
 134 
 
 1746 
 
 5i 
 
 136 
 
 — 
 
 125 
 
 1772 
 
 5i 
 
 153 — 
 
 144 
 
 1747 
 
 5 
 
 129 
 
 — 
 
 119 
 
 1773 
 
 5i 
 
 143 — 
 
 139 
 
 1748 
 
 5 
 
 129 
 
 — 
 
 117 
 
 1774 
 
 5i 
 
 146 — 
 
 139 
 
 1749 
 
 5 
 
 140 
 
 — 
 
 128 
 
 1775 
 
 5i 
 
 146 — 
 
 141 
 
 1750 
 
 5 
 
 136 
 
 — 
 
 131 
 
 1776 
 
 5i 
 
 143 — 
 
 134 
 
 1751 
 
 5 
 
 142 
 
 — 
 
 135 
 
 1777 
 
 5i 
 
 138 — 
 
 128 
 
 1752 
 
 5 
 
 149 
 
 — 
 
 141 
 
 1778 
 
 5i 
 
 120 — 
 
 107 
 
 1753 
 
 4i 
 
 144 
 
 — 
 
 135 
 
 1779 
 
 5i 
 
 118 — 
 
 106 
 
 1754 
 
 4i 
 
 135 
 
 — 
 
 130 
 
 1780 
 
 5i 
 
 116 — 
 
 109 
 
 1755 
 
 4i 
 
 162 
 
 — 
 
 119 
 
 1781 
 
 51 
 
 119 — 
 
 105 
 
 1756 
 
 4i 
 
 121 
 
 — 
 
 114 
 
 1782 
 
 6 
 
 124 — 
 
 109 
 
 1757 
 
 4i 
 
 120 
 
 — 
 
 115 
 
 1783 
 
 6 
 
 134 — 
 
 112 
 
 160 
 
TJie Bank of England. 
 
 Year. 
 
 Dividend. 
 
 Highest. 
 
 Lowest. 
 
 Year. 
 
 Dividend. 
 
 Highest. 
 
 Lowest. 
 
 1784 
 
 6 
 
 118 — 
 
 110 
 
 1817 
 
 10 
 
 294 
 
 — 
 
 220 
 
 1785 
 
 6 
 
 142 — 
 
 111 
 
 1818 
 
 10 
 
 292 
 
 — 
 
 207 
 
 1786 
 
 6 
 
 158 — 
 
 138 
 
 1819 
 
 10 
 
 267 
 
 — 
 
 210- 
 
 1787 
 
 6 
 
 160 — 
 
 145 
 
 1820 
 
 10 
 
 226 
 
 — 
 
 215 
 
 1788 
 
 
 178 — 
 
 158 
 
 1821 
 
 10 
 
 240 
 
 — 
 
 221 
 
 1789 
 
 
 191 — 
 
 169 
 
 1822 
 
 10 
 
 252 
 
 — 
 
 235 
 
 1790 
 
 
 188 — 
 
 164 
 
 1823 
 
 8 
 
 246 
 
 — 
 
 204 
 
 1791 
 
 
 204 — 
 
 178 
 
 1824 
 
 8 
 
 245 
 
 — 
 
 227 
 
 1792 
 
 
 219 — 
 
 171 
 
 1825 
 
 8 
 
 299 
 
 — 
 
 196 
 
 1793 
 
 
 180 — 
 
 161 
 
 1826 
 
 8 
 
 223 
 
 — 
 
 193 
 
 1794 
 
 
 169 — 
 
 153 
 
 1827 
 
 8 
 
 217 
 
 — 
 
 200 
 
 1795 
 
 
 180 — 
 
 152 
 
 1828 
 
 8 
 
 215 
 
 — 
 
 203 
 
 1796 
 
 
 180 — 
 
 142 
 
 1829 
 
 8 
 
 218 
 
 — 
 
 208 
 
 1797 
 
 
 146 — 
 
 115 
 
 1830 
 
 8 
 
 203 
 
 — 
 
 194 
 
 1798 
 
 
 138 — 
 
 118 
 
 1831 
 
 8 
 
 204 
 
 — 
 
 189 
 
 1799 
 
 
 176 — 
 
 134 
 
 1832 
 
 8 
 
 208 
 
 — 
 
 185 
 
 1800 
 
 61 
 
 175 — 
 
 154 
 
 1833 
 
 8 
 
 213 
 
 — 
 
 190 
 
 1801 
 
 
 190 — 
 
 148 
 
 1834 
 
 8 
 
 225 
 
 — 
 
 211 
 
 1802 
 
 
 207 — 
 
 178 
 
 1835 
 
 8 
 
 225 
 
 — 
 
 208 
 
 1803 
 
 
 193 — 
 
 136 
 
 1836 
 
 8 
 
 219 
 
 — 
 
 199 
 
 1804 
 
 
 169 — 
 
 146 
 
 1837 
 
 8 
 
 212 
 
 — 
 
 203 
 
 1805 
 
 
 197 — 
 
 167 
 
 1838 
 
 8 
 
 208 
 
 — 
 
 201 
 
 1806 
 
 
 223 — 
 
 191 
 
 1839 
 
 
 206 
 
 — 
 
 177 
 
 1807 
 
 
 235 — 
 
 208 
 
 1840 
 
 
 179 
 
 — 
 
 156 
 
 1808 
 
 10 
 
 240 — 
 
 224 
 
 1841 
 
 
 173 
 
 — 
 
 157 
 
 1809 
 
 10 
 
 288 — 
 
 235 
 
 1842 
 
 
 173 
 
 — 
 
 165 
 
 1810 
 
 10 
 
 276 — 
 
 273 
 
 1843 
 
 
 185 
 
 — 
 
 172 
 
 1811 
 
 10 
 
 251 — 
 
 229 
 
 1844 
 
 
 211 
 
 — 
 
 185 
 
 1812 
 
 10 
 
 232 — 
 
 212 
 
 1845 
 
 
 215 
 
 -- 
 
 199 
 
 1813 
 
 
 242 — 
 
 211 
 
 1846 
 
 
 211 
 
 — 
 
 199 
 
 1814 
 
 10 
 
 266 — 
 
 234 
 
 1847 
 
 
 206i 
 
 — 
 
 180 
 
 1815 
 
 10 
 
 262 — 
 
 219 
 
 1848 
 
 
 202 
 
 — 
 
 183 
 
 1816 
 
 10 
 
 262 — 
 
 215 
 
 1849 
 
 
 200 
 
 " 
 
 188i 
 
 Bank Holidays. — At the Bank of England the only holidays in the dividend offices are Good 
 Friday and Christmas. In the transfer offices, besides the above, May 1st and November 1st. East 
 India House and Exchequer, — Good Friday and Christmas. Custom-House, — Christmas, Good Fri- 
 day, Prince of "Wales's birthday and the Queen's birthday, November 9th and May 24th. 
 
 In Ireland. — Banks, Custom-House, &c., Good Friday, Christmas, and Queen's birthday. 
 
 In Scotland. — New year's day. King Charles I. martyrdom. Queen's marriage. Queen's birthday, 
 Good Friday, Charles II. restoration, Queen's accession, Queen's coronation. Gunpowder Plot, and 
 Christmas day. 
 
 14* 161 
 
Fluctuations of the English Funds. 
 
 "^ >«^ .i22 "i <i eoci 6ot^«o<2t^ <»5ii e^ao «o*J •iw »5«o ^«o 
 
 1 I 
 
 2 2l gg" :^^ ^o ^"^ ^^ g':^ ^^ : : ^r? g"!^ : : : : 
 
 ■I .e<e Mio ^a^^crj r^o^ ^Q ^^ TfO toto ^t? :$Oi -^o coco 
 
 I II ^^ ^i ^^ ^^ ^1 ^ ^ ^^ ^^ ^1 il^ ^S ?5S5 
 
 ^ ■ • 
 
 5 gJ-13 p);;'-'oo oo o^oi ojcj a^ o^ en crt Oi <y> oio^ coco coco coco ooco 
 
 a bc-~ ;^i=;'^<'i ctjo a>CT> aiOi ^cr^ co^otco ™co ^roOico cnco o:t~ 
 
 I tlti^ ^ ^^ ^^ ^«» ^^ ^S°c.~^c. ^c. ^cr» ^cr> ^03 
 
 S 
 
 gs gS c^c7>cnOia5crjc^a5cn5ScocooooDc^co(Dcicnoo=ococoo 
 S 
 
 J ^1^" ^ ;^ i^?^ s?-^ ^^ ^^ : : s?;^ : : gi??? :::::: 
 
 ■^ ^lE; '^'=^cja;a>OT§oocoo3 ..coco ..coco .. •• .. 
 
 qI R-S <^<^O^O5cnC5ClC5Cn=OCOa303C0C0C0CO00COCOO0C003C- 
 
 »,-§ ^ <^ SO^ OJOT C75C5 OlCrj COCO CO<» coco CO05 coco COCO cot- 
 
 "? s*S S"* t^2 toGo irjs^ SS2 2® «5?S ErS S2i2 ^J2 £:S SS 
 
 be h!^ oo oo oo oo oo octi oco cncD a>CT> a^ <t> o^o coco 
 
 ^' (^2 G^«(^^ cls^ e^G^ g1(M g^s^ s^-" "'- ^ '-' ^^ ->-' »^.-ir-.^ 
 
 w ^"^'^'^^ >^*v^^ v^v^«' ■«>^/"W Vrf>/-»./ N^v"w/ '^v^^ v^v^i' v^v^.' 
 
 CO CO 
 
Fluctuations of the English Funds. 
 
 t t 
 
 a .2 
 
 a, 'a 
 
 S S ^ 
 
 a. a. 
 
 1^ Ai ^^ 
 
 g S 5 2 
 
 a. a, 
 
 gS-^a I'S^SIg isi 5i Si is 5« 18 
 
 -«i HM H« 
 
 « 05 
 
 
 ■^ II 
 
 g bp-^ CO CO" 00 oo' <»' Sj' CO" CO' CO co' w" 
 
 iiiiiSiil :iE2iggi8iliiS 
 
 COCO 0000 0303 03O3 C3 03C0<» MC3 CO . S^COTOWMOO 
 
 •So CO CO 
 
 S" 
 
 CO ©1 CO O^ 
 
 CO 03C0 COcO a>CO Ci03 COCO odco 
 
 1^^ 
 
 • o • o o 
 
 M 00 
 
 ^ CO ^ 
 
 ^ 
 
 ^ coco COO coco COo3 coco 0303 COoO 
 
 coco.t-* ..C0C0CO03CO coco 
 
 o 
 
 Eh 
 
 o 
 
 1^ « "** 
 
 ^-1 
 
 So 
 
 0003 coco C003 03CO ooo5 coflo coco 00-03 COCO coco 
 
 cow 03C0 coco C2CO 03t> COCO CO 03 COCO 03C0 0003 OOCO 
 
 SS S55 &?r- ©Jr-i 5l!:r? o^^ wm woj coo cT»«r) ooco ow 
 
 coco coco ooo oci 2°^ coco cjoo O03 cioj cr>c^ CiOi cSco 
 
 C fcT iT * 
 
 1 1 S^ 3 -g^ J- . 1 - f i I 
 
 s i 
 
Fluctuations of the English Funds. 
 
 •2 ^ 
 
 00 ■So SSS'^SX?:^2S2?'^ 'ogjo 'cogje^rrG^ 'g^o 
 
 ^ ^5 OTOlC^C^CiCiOOOwJO .oi^O -OOOOO 'OO 
 
 M« 5c? ^c8 ^S S§ »=S2 S3 *^S ^S SSi SS? !oS 
 
 e^3^ 5^15 ©^G-< e-jcv» G^G^ g5©^ &^cn s<&5 g<&< g4g^ &»g^ g<s-» 
 
 C5 
 
 ^ 
 
 <^ 
 
 Tf 
 
 5 
 
 
 QO 
 
 >* 
 
 
 I— 1 
 
 ^ 
 
 .«^ 
 
 
 » 
 
 "« a 
 
 ^ 
 
 ^ 
 
 ^^ 
 
 1— I 
 
 g 
 
 S'/T 
 
 m 
 
 < 
 
 
 Q 
 
 -< 
 
 .TR 
 
 
 ^ 
 
 'is 
 
 fe 
 
 
 a 
 
 bn 
 
 « 
 
 02 
 
 .s 
 
 "^.^cS 
 
 
 3 
 
 8 si 
 
 h:i 
 
 '■S3 
 
 ,4« 
 
 
 
 
 ly 
 
 3 
 
 •^ • 
 
 K 
 H 
 
 Wi 
 
 
 o 
 
 
 Hi 
 
 
 
 fO^ 
 
 C/J 
 
 53 
 
 
 ^ 
 
 *i^ 
 
 O 
 
 1 
 
 1,1 
 
 coo 
 
 
 
 Q 
 
 1 
 
 
 
 1 
 
 11 
 
 Ph 
 
 t 
 s 
 
 0502 
 
 
 s 
 
 2 
 
 
 
 
 
 'Ci 
 
 g 
 
 ^ "Z? t-fco-*' «>*i<«*» mWmW h»mw< tf*o-«' •«<-«« t^n 
 coco coco coco cooo coco to^co coco 00 
 
 =0 CO CO CO CO CO CO 
 
 ^S" 
 
 COCO coco ojco ^ Ob oioo cooi coco coco a>co oico co 
 
 S 12 ^^^^^^'g^ ^-^^ ^^ ^^ ^^ :^^^'^ ^^ ^ 
 
 e ,SS cocococoo^cooioiQ^o^cnooiCTJcncrjoiaioCTJCiCTJcn 
 
 f 
 
 
 o • ai 
 
 o <^ 
 
 CO CO 
 
 0*0 Kte «H. h*0 -«« -to 
 
 c^ Ex -^ CO Tf< rH 
 CO 00 oj CO Oi a^ 
 
 CO CO CO O^ CO 
 
 t^» H« -to 
 
 o^ CO o c:^ Oi 
 
 c5 S S 
 
 :S'^ '^•^ ^l^ S?^ &r^ :S'^ 
 
 CJCO OOO wlCTJ OlCl OO OO 
 
 OCO 1— iCO (TJCO r-M toco ^" »OS^ lOGO QO QCO QO COO 
 
 OCO OCO OCO OO OO OO OO OO OO OO po OO 
 
 i-lT-H I— (t-H I— iT~ I— II— I --»-« 1— (t— I I— 11-^ T-«T— G^^^ ©<•-« CNri .— -^ 
 
 « s ^ s .. 
 
 ^ ^* ^ 
 
 CO CO 
 
ALPHABETICAL INDEX 
 
 CHRONICLES AND CHARACTERS 
 
 OF THE 
 
 STOCK EXCHANGE. 
 
 Page 
 
 Alison, Remarks on the National Debt, 83 
 
 Annuities, Policy of, 85 
 
 Asgill, Mr., on reducing the National Debt, 87 
 
 Baily, Francis, Defence of the Brokers, 72, 81 
 
 Bankof England, — First Charter, 27th July, 1694, 9 
 
 " " First payment of Government dividends, ... 23 
 
 " " Directors of, from 1694 to 1847, 156 
 
 " " Dividends of, from 1694 to 1849, . . . 161 
 
 Barbier, Mr., on the National Debt, 87 
 
 Barclay and Co., Bankers, Operations of, 104 
 
 Baring and Goldsmid, Anecdotes of, 61, 75 
 
 Barings, Sketch of the House of, 75 
 
 Barnard, Sir John, Opposition to the Stock Exchange, 26 
 
 " " Act against Stock Gambling, 27 
 
 Blackboard, Notices of the, 55, 120 
 
 Blunt, Sir John, Originator of the South-sea Bubble, 23 
 
 Bolland, James, Execution of, for forgery, 119 
 
 Bolingbroke, Remarks on the National Debt of England, . . . . 82, 84 
 
 Bonaparte, Policies on the life of, 79 
 
 Bowring, and the Greek Loan, 106 
 
 Bridgewater Canal, . 90 
 
 Brokers, Acts against, ■'. . . 71 
 
 Change Alley, Origin of, 10 
 
 Charitable Corporation Frauds in London, . . . . . . . 19 
 
 Chatham, Lord, Opinions of Change Alley, 57 
 
 Clayton, Sir Robert, notice of, 8 
 
 Cochrane, Lord, Fraud of, 80 
 
 Consols, Highest and Lowest Prices of, for 120 years, .... 153 
 
 Daniels, Joseph Elkin, Fraud of, 69 
 
 Douglas, Heron, & Co., of London, Failure of, ..... . 39 
 
 Dunbar, Speculations of, 118 
 
 East India Company, Stock of, 9, 18 
 
 " " Restriction of its Dividends, 37 
 
 Elizabeth, (Queen,) Numerous Monopolies granted by, ... . 8 
 
 165 
 
Alphabetical Index. 
 
 Page 
 
 Equitable Loan Company, Charter of, 97 
 
 Exchequer Bills, First Fraud in, 17 
 
 Exchange Alley, Anatomy of, 135 
 
 Fordyce, Alexander, Fraud of, 40 
 
 Foreign Loans contracted, 17 
 
 Fox, Chaiies James, Anecdote of, 58 
 
 Frauds and Forgeries, 32,40,69,77,80,100,119 
 
 Furness, Sir Henry, Anecdote of, 11 
 
 French Kevolution, Effects of the, 64 
 
 Germany, Attempted Loan for, , . . 26 
 
 Gideon, Sampson, the Jew Broker, 33,118 
 
 Goldsmid, Abraham and Benjamin, 59 
 
 " Suicide of, -60 
 
 Gordon, Lord George, Anecdote of, 58 
 
 Gray, Thomas, Plan for Roads, 92, 94 
 
 Greece, Loan to, 104 
 
 Guatemala, Loan to, by English Capitalists, 103 
 
 Guise, Count de. Notice of, 119 
 
 Guy, Thomas, Anecdote of, 12, 25 
 
 Hebrew Brokers, Number limited to Twelve, 42 
 
 Hume, David, Remarks on the National Debt, 84 
 
 Hume, Joseph, and the Greek Loan, 105 
 
 Johnstone, Cochrane, Fraud of, 80 
 
 Joint Stock Companies, Speculations in, 73 
 
 Life Insurance, Notices of, 125, 127 
 
 '* " Indisputable Company, 127 
 
 " " Policies on Diseased Lives, 128 
 
 " " Fraudulent Companies, 130 
 
 Liverpool and Manchester Railroad, . . 93 
 
 Loans to Continential Powers, 104,115 
 
 " New, Frauds, &c., 44, 154 
 
 " Since 1793, and Rates of Interest, 154 
 
 Lopez, Manassez, Punishment of, 29 
 
 Lotteries, Invention of, 49 
 
 " Employed by the State, for Revenue Purposes, . . . . 47 
 
 " Evils of, and Frauds in, 49 
 
 " Abolition of, 53 
 
 « Effects of, 50 
 
 Loyalty Loan, Subscriptions to, 68 
 
 Marlborough's (Duke of) Victories, Effects of, . . .... 21 
 
 McGregor, Gregor, Notice of, 100 
 
 Mining Companies, Speculations in, 98 
 
 Moneyed Interest, Origin, Extravagance, and FoUy of the, .... 7 
 
 National Debt (The), Kemarks on, 1,6,23 
 
 " " Proposal to reduce the Interest on, 28 
 
 « " Increase of, 1740-1766, 32,35 
 
 " , " Curious Proposition to pay off, 66, 86 
 
 « " Review of, 82 
 
 " " Smith, Paine, Hervey, Graham, on, 84 
 
 New-castle, Duke of, Notice of, . 118 
 
 Petty, Sir Henry, Proposal for a Sinking Fund, 72 
 
 166 
 
Alphabetical Index. 
 
 Page 
 
 Pitt, William, Policy of, 64, 65 
 
 Plomer, Sir Thomas, Fraud on, 77 
 
 Portugal, Loan to, by English Capitalists, 115 
 
 Poyais Fraud, Disastrous Effects of the, 100 
 
 Ricardo, David, Notice of, 77 
 
 Rice, John, Execution of, for Forgery, 32 
 
 Rothschild, Notices of, 109,111 
 
 " Death of, 114 
 
 Royal Exchange, (The) Notice of, 8 
 
 Secret Service Money, 37 
 
 Sedley, Sir Charles, Speech of, 13 
 
 Sinking Fund, the Orgin of the, 34, 55 
 
 Spanish Stock, Fall in, 116 
 
 Speculations of 1825, 108 
 
 South American Loans, . . . . • 99, 103 
 
 South-sea Bubble, Notices of the, 23, 25 
 
 Sprott, Mark, Death of, 74 
 
 Stephenson, on Railroads, 94 
 
 Stock Exchange, Increased Importance of, 22, 76 
 
 " " Opposed by Sir John Barnard, 26 
 
 « " Origin of the Blackboard, 55 
 
 « " Removal of, . . . 67, 108 
 
 « " Increase of Business, 1810-15, 76 
 
 " " Morals and Manners of the, 121 
 
 *• " Rules of the Board for its Members, . . . . 124 
 
 Time Bargains, Origin of, 27 
 
 Tontines, History of, 6 
 
 Tulip Mania in Holland, Sketch of 4 
 
 Vansittart, Mr., Modification of the Sinking Fund, 78 
 
 Walpole, Sir R., Opposition to the German Loan, 26 
 
 « " " to a Reduction of Interest on National Debt, . 28 
 
 " " Adoption of the Sinking Fund, 34 
 
 " " Remarks on the National Debt, 84 
 
 Walsh, Benjamin, Trial of, for Fraud, 77 
 
 Wilkes, John, Anecdotes of, .... ... 42 
 
 William HI., Modes of raising Money for War Purposes, .... 7 
 
 " Enormous Briberies of, 12 
 
 " Increased Taxation under, 13 
 
 " Defence of his Policy, 14 
 
 167 
 
**.,, 
 

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