STOCK EXCHANGE MORALITY.

Thames Star, Volume XVII, Issue 5151, 21 July 1885, Page 3

STOCK EXCHANGE MORALITY.

Perhaps there are few institutions possessing attributes more diametrically opposed to one another than the Stock Exchange. Undoubtedly useful in its way, it nevertheless abounds in gross abuse. It is a necessity to the bond fide investor, as indicating the locality where he can on the instant purchase or find a market for almost any stock in the world; yet it becomes a very hotbed of vice in the hands of the professional speculator. We apply this term to the man who fraudulently buys without (he intention of paying, and worse still, sells what he does not possess. Take a quite recent illustration of the two evils. Only a short time ago, a letter purporting to come from Mr Gladstone's private secretary, ad dressed to the secretary of the Exchange, was received by him, and posted op in the House. It stated that unexpected interests would be paid to the Peruvian bondholders. The price went up over thirty per cent, in a few moments so tbafc atijone having bought ten thousand pounds worth the day before, could have then sold them for nearly fourteen thousand pounds. It is more than probable that the writer of the forged letter bad previously purchased without any intention of paying or ' taking them off,' and on the imposition taking effect at once sold out not only those he possessed, but also more that he did not possess. Within half an hour, the forgery was " discotered, when the price immediately fell the thirty per cent, it had just risen. Thus this impudent adventurer would not only secure an enormous profit by the rise, but by buying back on the fall the extra quantity he had sold on' the rise, reap an additional profit. Now, it is this class of gambling, particularly the selling of wTiat one does not possess, for the purpose of depressing the value of a certain stock to the prejudice of real owners, ibat constitutes the most unwholesome element of our Stock Ex chaDge. • Every conceivable artifice, the most consummate cunning, the most unblushing lies, are employed to depreciate a securify which has either risen to a high figure on iis merits, or else been puffed up artificially beforehand. Syndicates,as they are called—combinations of uu- ! principled rcen usually—are formed for the purpose, and there are indeed very few stocks existing at the present daj that are not honored by tbeir special syndicate. On any unfavorable rumor, more often concocted than otherwise, these eagle - eyed monsters swoop down upon their unsuspecting and inoffensive prey, attacking with the ferociousness of a bear, until, in sheer desperation, one victim after another sucenmbs, and sells out to the ' bear'at an enormous sacrifice in order to save the remnant of his dwindled inheritance.. If, as they were uttered in it, the falsehoods of a sJDgle day could but glue themselves to and stick on the walls of that building, it would be a feat impossible of achievement, for a fly to crawl unscathed between them! Monte Carlo is bad; but an institution where more fortunes are dishonestly lost and p on in a day than at that notorious gambling place in a week, must be at least no better, if not infinitely worse. \ That there are men of integrity on 'Change, men of known principle, gentle* men in every sense of the word, admits of no doubt: and it is they who would first appreciate any effort, legislative or otherwise, for the suppression of. the practices alluded to here. An act called "Leeman's Act " was passed some years ago for the special protection of shareholders in banking establishments, which made it illegal to sell shares of any bank first proving yourself to be a holder of its shares, giving their respective numbers. &c. The same protection should be afforded to every shareholder, no matter of what stock ; and the time has now arrived for the legislature to take the matter seriously in hand. The blessings conferred- thereby would be inestimable. The recent reports concerning Mrs Garfield's endowment of the Garfield Hospital, and other gossip about the widow of the martyr President have created some curiosity about the lady's financial condition. An intimate friend of Mrs Garfield gives the following descrip lion ofherestate :—The subscription raised through the instrumentality of Cyrus W. Eield aggregated, when invested in Government bonds, about §312,000. Gen. Garfield's life was 'insured for §50,000, the payment of which the companies for the sake of the extended advertisement it would give them, if for no other purpose, promptly made. Congress also voted her the remnant of the salary which would have been due Gen. Garfield for the first year of service as President, which amounted to §40,000. The little estate which Garfield left aggregates some §30,000. This was all that he had been able to accumulate after a life of unusual activity. This makes her total estate in round numbers, £450,000 in money well invested, From this an income of probably §16,000 is derived. In addition to that, she has from Congress an annual pension of $5,000, which is now voted to the'widows of all ex Presidents. ",