LITERATURE.

Globe, Volume XXI, Issue 1755, 4 October 1879, Page 3

LITERATURE.

MY FIRST SPECULATION. ["London Society."] One morning, in what year it does not matter, I received the following communication from my friend T. : 'Dear Mr S., —I have something most important to communicate to you. Can you come round to mo immediately ? —Yours always faithfully, T.' T. was a character in his way. He was one of those Smen whose modesty or shyness stands in their way of advancement in life. Well read, and with a large experience of life from travel and mixing in all kinds of society both in Europe and America, he was passed easily by others of very much less pretensions to merit, and was looked upon rather as a social failure. He was sensitive even to a_ fault, and it was through some mistaken idea of duty—at leaat so his friends said—that he had quarrelled with his own family, who were well to do, and lived entirely by his own exertions. He had been all sorts of things and had tried all sorts of things, and was, at the timo of which I am writing, a temporary clerk in an office in the city, and which appointment I had been partly the means of getting him. I had not seen him for some little time, so that his comtnunicition somewhat surprised me. I went round to his office, when he asked me to step down stairs to a dark room underground, where he said we could talk undisturbed. He apologised for giving mo tho trouble to come round to him; •but as I'm not on the regular staff here,' he said. 'I could not presume to ask for leave of absence in the middle of the day.' He then shut the door in a mysterious manner, aud produced from his pocket a M.S., which he held before me. ' I've got something here to show you,' he said. I knew that ho dabbled a little in literature, and had occasionally published some verses of his own composition it and as I looked at the closely written pages, I began to fear-that he. had aslioil me round to give my opinion on some sublime p'iem. Though I had befriended him slightly on one or two occasion?, T did not look for this return of gratitude, and I am afraid I gasped out ' I hope I haven't ta road it!'

' No, I don't want you to read it.' I breathed again. * But I want to tell you what it is, I want to put yon np to a good thing ' Again visions of a. work whioh I w«s expected to take a dozen copies or so came before me.

' Well, what is it ?' I said. ' The magnum opus come, out at last ?' ' You flatter me," he said ; * bnt I'll tell shortly what it ia. You know I was oa,oe in the employment of the Great Buffcjo Bailwav Company, and did duty with them both ia Amerlcs and in this country for some time. I told, you before how badly they trotted. ase,

how when they got all the information and ' work they could ant of me, they gave me notice to go, on the plea that their establishment must be reduced to lessen the expenfers. They turned me off, but retained a junfor, because ho happened to be a friend of the chairman of the company. I can put up with a good dea 1 , bat I can't stand that; you know as well as I do that the affair is a gigantic swindle, and must collapse sooner or later. I know more about them than most people give me credit for, and I have written this pamphlet giving a fall history of the company and the present stati of thei' flnamcerv When it comes out I know Hi will have a very damaging effect; the shares are certain to ran down, and if you sell before the news hs made public, I can guarantee you a certain gain. Yon have always been very kind to me, and I wish to make yon soma return for It. lam going to have the pamphlet privately printed and circulated. I am backed up by a well-known- man in the city, so tbat I am guaranteed my expenses. It will cost us- nothing at all, and give us a certain harvest.'

The idea was- a novel and tempting one to me. Visions- of a '"potentiality off growing- rich beyond the dreams- of ava rica,' Bach as Dr.- Johnson saw in tho brewery of Mr Thrale, Abated before my eyes. But I had never had any dealings with the Stock Exchange, and I knew no broker who would operate for me. The temper before me got over that difficulty by suggesting that he could 1 introduce mo to- his stockbroker when tho time came.

'You needn't be in-a hurry.' he said.. 'Tho pamplet has to be printed firßt, and then sent round to the city editors- of the papers. Then will be the time for us to tell.*

Perhaps divining the doubt that was in my mind, ho added, ' Von needn't be under any apprehension ; it' is a dead certainty that the shares will run down as soon-as my reve lat ions see the light. In the mean time not a word to anybody.'' So we parted for the present, in abont a fortnight 8- time T. sent' me a proof of the pamphlet It was very ably written, and was certainly very- damaging, if everything was true that was stated in it. My spirits revived, and I almost began to share the enthusiasm of my friend, though I couldn't quite get over the feeling that £ was assist ing at a small gunpowder plot which was to blow the Great Buffaloes to atoms. But hivvng ro>Lo.-d Mont'-aglo-among/the sTwrholdets> I kept my own counsel. The next day T. called npon me, and said that all the city editors of the papers had received the pamphlet, and would most likely notice it tho following day, and that now was the time to give oar directions to the brokers. I went round with him to Messrs Script and Bond, stockbrokers, feeling, however, very much as if I was 'going to my execution. Both the partners were out, and I felt as if I had been reprieved; but an officious boy in the office volunteered to go round to the Stock- Exchange and fetch one or both of them. Mr Script presently appeared. He - was a bland-looking man, and was evidently well known to T.. I found oat afterwards that T. was in the habit-of doing small speculations with him. I was formally introduced, and my business made known to him. He appeared pleased, acd, in a. bland manner saidthe should be very happy to execute any orders I should like to give him;.but, as if noticing my scared look—for now the time had come II began, in common parlance.- to ' f auk' it*— ha called his partner Bond, who had just cornsla, and' my friend T. into his private room, and- with closed: doors they consulted together for some little time. L. then came oat, and said-that though Script and Bond: would be very, pleased. ; to operate for me,, they would not caTry over. 'CaTry over!: What- on earth do thoy mean J?l! said.

T. smiled at my simplicity ; but as-some of my readers- may be jtist as ignorant of the- ways of-the Stock Exchange as I was then, T will give them the gist of-T.'s- explanation. When a, person, boys or sells- shares or stock, ha- either pays or is paid for them: at once, or, ho waits-for the account, which is a term used on the Stock Exchange to denote the time (generally about two weeks) in whioh the transaction must be oomploted,, and all purchases or sa'es of stock must be 'made up'' or paid for on or boftne the settling-day, whioh is the last day of the account. If- a,person is only speculating—it 'will often happen that the price of tlfce shares has not gone up or Cowa according to hls.expectations—he can sometimes, by paying a smaJl' fibe, ' carry over' his account till the following settling day. This operation is attended with some risk to- the stockbroker,, as should the shares go down instead of up, or- viae- versa, and the operator should prove unables to pay the difference between the buying and the selling prices, the stockbroker would have to pay the difference out of his own pocket. It follows that unless he known his olient to be a man of substance, he will as a rulo refuse to transact business of this kind. I was unknown to Messrs Script and Bond; they therefore naturally refused to ' carry over' for me. To comfort me, T. added to his explanation.

* I am quite sure that even if they would do 'it there -would be no occasion for it. Long before the 20th, the day for whioh I propose to sell, the shares will have gone down, and we shall have bought in. You needn't be afraid ; they mnst to a moral certainly go down.' I was satisfied, and bo were Messrs Fcript and Bond. I gave my orders to sell Great Buffaloes, and then it was that I firat began to understand how I could sell things that I did not possess, and could buy them back again and still be without any. The contract note was forwarded to my rooms in the evening, and I spent half the night in intricate calculations of how much I should make if they fell to certain points. I did not sleep much that night, and by the next morning my fears of any evil consequences had totally vanished, and my only regret was that I did not know more brokers who would sell shares for any amount I pleased. I did really go the next day to one man I knew slightly; but fortunately for me he was away from town, and as I was not known to his partners, I merely said that my business, like that of Mr Toots, was not of ' the slightest consequence.' The pamphlet was published, and was noticed by several of the newspapers—one paper which especially delighted in abnse of any hind gave it a whole column. Still the efiect was imperceptible upon the shares of the Great Buffalo They remained stationary. On my representing this to T. he immediately explained that the news had not yet had time to get down to the oountry; that when the pamphlet reached the great centres of industry in the middle and north of England, there would naturally be large orders for sale upon London, and we should then see the shares begin to move with a vengeance. Never before in my life had the money article been of any interest to me ; but now it was the very first thing I turned to whenever I took up a paper; and, not content with the latest quotations in '.the * special' evening papers, I gave my servant strict orders to bring the morning paper directly it arrived to my bedroom, that I might see if the latest quotations were confirmed, before I was out of bed. Two or three days passed, and still the rush downwards did not come. On the contrary the shares went np. T. was ready with his explanations as usual. •My dear fellow,' he said, * don't be alarmed. As I told you before, the information must get down Into the country, and must thoroughly filter through the minds of holders of stock there. Of oourae people are suspicions at first of any news, and they wait till it is confirmed by their London correspondents.' ' But why don't the London people aot upon this information you have so given them ? I remarked. 'So they will shortly,' ho said. * But daring the last month there has been great speculation in Great Buffaloes.and a fictitious buoyancy ib'given to the market by the mere fact that people are forced to buy in for the next settlement.'

■ What do. yon mean by that ?' I asked innocently. 'A large number of people have beared the tharta ; that is, gone in for a. fall; bnt the market remaining stationary, they have been obliged to buy back to cover- themselves. The sudden demand has naturally increased the price of shares and sont them up. But the rise is but temporary ; you'll see something as soon aa this settlement is over.'

As we had sold for the settlement after the ono just concluding I tried to make my mind easy, and to wait the results of the present settlement. The settling day came and went, and. rtlll the ahurea of the. Great Buffalo did Q&\ Wftye,

The ever roidy T. was again prepared with his explanations.

' It would perhaps have heen batter,' he said, 'to have waited until after the last «ett)emont before we did anything, as the prices of the English market depend very much on those of Hew York, the greater pait of the shares being in America. Therefore, whatever may be done here will not greatly affect their steadiness out there, until the cause of it* is fully known. I have sent the pamphlet out by the last mail, so that it will reach there before the 20tb.'

I really began to have some doubts whether T. was noG an impostor, as the shares went up agahj. On the morning of the 17th, three days before the settling day, I received the following letter from Messrs Script and Bond v—- ' Capel Court. ' Dear sir,—Referring to your emed order of the Bth ult., we wonld remind you that the ebares we then sold for you should be delivered here by Wednesday morning. We presume you will have them ro»dy for delivery.—"We are, dear sir, your obedient servants, 'Siript & Bond. Having never possessed a single share, of course I had none to deliver, so in a fright I took the letter round to T, * That's onsy their way,' he said, ' of reminding you* that you niuat settle up. They know very well yon can't deliver.'

' But what's to be done ?' I said ; how am I to settle up ?' The shares are higher to day than they have been yet.' ' They always rally just before ' settlingday,' he saidu I began to lose patie»ce. 'They are always doing something, but never the right thing/1 said. But T. soothed my ruffled spirit; he put hig hand on my shoulder, and said, ' That the shares will go down I am as positive as I stand hero: We may have sold too Boon ; but what wo-most do now is to settle this account, and as soon as the settling day is over sell again for the nest account but one.'

So 1 went round<-with him-to Messrs Script and Bond's office, where, instead of receiving I had to pay the difference earased by having to bay in at the higher value of the shares. Two or three-days after, I went round to see- T. again. Hte was very sanguine. He had heard from America that the pamphlet had- been well received; ' Yon need have no' fear now about selling,''he said ;: 'l'expect in a day or two the prices- from- New STork will be very different/'

Emboldened by his marine? I volunteered to go and give the orders myself, both on my account and his. Messrs- Script and Bond received me very affably, as they had found. I suppose,, that I hod paid up all right. I told them my business. ' Let me see/'said Script j ' your last were the-preference shares, I thin.k.' Not liking- to- appear ignorant I said, 'Yes, ! think they were;.' though I was obliged to confess to myoelF that I did not know tho difference between preference and ordinary. At all events, nob knowing what I I gave tha ordJer to sell so many preference. The contract Bote was forwarded to me as usual that evening I noticed that it was different from- the last one, but I did not quite understand what it was. Hbwover, it did not trouble me very much, but I ! took it round to T. in the morning. When he looked at it his face became horrified i

*O, I'm ruined, I'm rained !' he gasped out. * What have you> done V It was now my turn, to- be alarmed. «If s all right,' I said, «isn't it ?' 'All right! no!' Do you know what you've done? You've sold the wrong shares, and'instead of they've got down two hundred.'

'•Well, I thonght it was two hundred. Script and Bond seemed to think it was all right.' ' I must go round aft once,' said T., ' and get-them to cancel the order. I shall lose every penny I've gott if the shares should go up' T. went round and got the order cancelled, and we were contented with dealing in a modest way with the ordinary shares ' to make a small but certain profit,' as T. observed.

That afternoon there cimo a telegram from America that one oi the principal bridges of the Great Buffalo, line bad been burnt, and that consequently the traffic was quite stopped for the time. It sent down the ordinary ahareß about 2, bnt in the course of that weak the preference shares fell from 38 to 25; so that wa stuck to our original bargain we should have made a little fortune. T's anquish and my disgust may be imagined, and Script and- Bond did not let the opportunity pass to twit me with my want of pluck when I went to settle up with them for the shares- I had dealt with. Thinking that the ordinary chares would certainly follow the preference in their downward tendency, I waited too long; they railed, and when I closed the account by the settling day I was a leser once more- I had had enough by this time of Great Buffaloes, and I left the office of Script and Bond ' a sadder but a wiser man.' T. avoided me for tome time after this. I never heard him mention the pamphlet again, and he has never offered t-> put me up 'to a good thing' since my first speculation.