The Sun.
London, England, 1866-04-11 00:00:00

THE SUN, LONDON, WEDNESDAY EVENING, APRIL 11, 1866.

ELECTION COMMITTEE--This Day.

The members of this committee re-assembled this

morning.
Thomas Rawley (examined by Mr. Rodwell)—He was
in business as a shoemaker at Nottingham, and was ac-
quainted with a man named Tombs, who kept a shop in
High-street, Nottingham. He had a conversation with
him, which induced him on the day of the election to go to
a man named Elijah Holroyd respecting his vote.
Mr. Mundell objected to any evidence respecting Hol-
royd, as the only person on the register of voters for Not-
tingham at the last election of the name of Holroyd was
described as Matthew Holroyd.
The witness explained that this was a mistake, and that
was the name of the voter. _ _

After some discussion between the counsel, the com-
mittee decided that the error was fatal to any evidence re-
lative to Holroyd.
The witness, in continuation, said--that on the came
morning he wont to Holroyd, ho called on a man named
George Hudson at his shop. He had a conversation with
him, in consequence of which he wont to Mr. Beecroft, at
Morley and Paget's Pavement Ward Committee-room. It
was between eight and nine in the morning, and he saw
Mr. Beecroft and told him that Hudson wanted
to know how much he would give him for his
vote. Mr. Beecroft said that he would give him 14 days'
pay. That would be £4 165., which was the rate at which
commissions were paid. He then brought Hudson to Mr.
Beecroft, who said to him, " I will see you all right."
The Saturday after the election they called on Mr. Bee-
croft, who gave them a card, which was to be deli-
vered to lawyer Heath, upon which he wrote a few
lines. They saw Mr. Heath, but were unable to get any
settlement from either him or Mr. Beecroft. Hudson re-
ceived no money, and if he had been paid, was to have
shared in it.
In cross-examination by Mr. Mundell, the witness said
that he lived in Manner's-street, and employed six men.
He never went to Mr. Beecroft before the polling day. It
was quite untrue that he had seen him three days before
the election. The card on which Mr. Beecroft wrote to
lawyer Heath was at Nottingham.
George Hudson corroborated the evidence of the last
witness as to what had passed between then and Messrs.
Beecroft and Heath.
Other evidence was adduced in support of the allega-
tions of bribery against Mr. Morley, the sitting member,
and Mr. Paget, the petitioner against Sir Robert Clifton's
return.
The committee will re-assemble to-morrow at the usual
hour.

POLICE INTELLIGENCE.—This Day.

The Mysteries of the Stock Exchange•

From a Correspondent of the Money Market

- Review.]
The long-continued and increasing depression in
the more hazardous securities, and the existing
panic with reference to some of them, which has
caused so much loss to investors as well a to specu
lators, induces me to trouble you with a few re-
marks, founded on my own experience, showing
how and why speculation on the Stock Exchange,
and even investments on speculative securities, are
necessarily peculiarly dangerous and ruinous.

The uninitiated and inexperienced are apt to
suppose that buying and selling securities is much
the same as buying and selling produce, and that
the operation of the higgling of the market is to fix
with sufficient exactness the value of each of these
commodities ; but, though there is a certain amount
of speculative dealing in produce, and, more espe-
cially of late years, in cotton, it is obvious that the
comparatively stationary character of the value of
produce, and the limited number of persons who
deal wholesale in such articles as tea, sugar, &c.,
restricts the speculation in them within compara-
tively narrow limits. It is not very usual for an
outsider to purchase chests of tea or hogsheads of
sugar, about the value of which he is far less able
to judge than about Stock Exchange securities, and
the greater comparative elasticity of these impels
the principal current of speculation into this chan-
nel.

In Paris and on the other Continental Exchanges,
as well as in our provincial exchanges, transactions
in securities take place through the medium of
brokers, who are the mere agents of the outside
public, and the seller receives the market value of
his security from the purchaser, the only expense
being the broker's commission, which is usually in
England per cent. on stocks, and from 6d. to ss.
on shares of £1 to £5O, or from to 2/ per cent. ;
and from one-half to one-third these rates on the
Continent. On the London Stock Exchange, how-
ever, and there only, there exists the class of job-
bers who only buy what they are sure to be able
immediately to resell, the result of whose operations
is to foster, increase, and aggravate speculation,
and to entail an enormous tax, which is continually
increasing and probably amounts to upwards of a
million a-year on investors and speculators. It is
more especially heavy on the light shares of the
Finance and Marine Companies. If I want to sell,
for instance, Union Marine Shares, with £2 paid,
at Liverpool, the last price being, say to 1 prem.,
my broker there seeks out another broker employed
by a purchaser, and deals probably at the middle
price, or 15-16ths prem. ; whilst, if I sell in Lon-
don, I lose the " jobber's turn," and have to sell at
i—a loss to me, and a gain to the " jobber " of 2
per cent., whilst,' on reselling he makes a similar
profit ; and if he:only makes one such operation in
the shares in each fortnightly account his profit
will be upwards of 100 per cent. in the year.
This, however, is but a small portion of the " job-
ber's" gain ; and if the " jobber" were merely
like the retail dealer, who bought shares wholesale,
and resold them, without " banging," " rigging,"
or other triskery, at a profit, the public would not
be such considerable losers. But, in aid of the
" jobber's" schemes, there comes into play the ope-
ration of the fortnightly settlement ; and as the
outside public are usually " bulls," or speculators
for the rise, when this term approaches, the " job-
bers," who are usually "bears," or speculators for
the fall, by means of inventing and circulating false
or exaggerated reports, and by " banging " the
shares, produce, if they can, a depreciation in secu-
rities, or, at least, prevent them from rising; and,
as the outside investors or speculators seldom buy
at the end of an account, and as the expense of
taking up registered shares is 10s. per cent. for
stamps, besides transfer fees, the " jobbers" are
able to make a further enormous profit in " job-
bing in contangoes." This is the penalty paid
for " continuing" the shares for a fortnight,
and this charge varies on the light shares from
6d. to 2s. 6d., or from the rate of 10 to
that of 50 per cent. per annum. If a rise does
not take place within a few " accounts," the
needy speculator is obliged to sell, and put up with
his loss ; but the wealthier operator, who goes in
for large profits and slow returns, which is his only
chance, and who thus saves " contangoes" and
brokers' commissions on " continuation,' borrows
money for from three to six months from his banker
or broker, at 1 per cent. above the Bank rate, on
deposit of a sufficient cover, and stipulates that he
shall pay but one commission on buying and another
on selling.
If the tendency of the market is upwards, and
discount is low, the " jobbers " immediately set
agoing all sorts of reports of a probable decrease in
the Bank rate of discount, of enormous dividends,
colossal additions to reserves, prodigious sums to
be carried forward, great names to be added to
boards of direction, advantageous amalgamations
to take place, large transactions entered into likely
to be profitable ; that Rothschild, Baring, Peabody,
or the directors are buying largely, and they then
gradually " bull " the market by a tacit and com-
mon understanding, and raise the quotation by de-
grees ; and the outside public, as a matter of course,
urged by their brokers, rush in and buy on the
rising market.
I will suppose the quotation of certain shares to
be s to 1, when the " jobbers" see that the chances
are favourable for " buffing." One or two of the
more influential, wealthy, and daring, whom all the
rest follow like sheep, call them 1 to 11, feeling
their way gradually as to how many they will sell
at that price, and thus only risking their " turn" if
sellers appear, whilst, if buyers preponderate, they
then advance the quotation to 14 to li, and so on,
their leaders, perhaps, even risking somewhat more
than the " turn" if the current is obviously strong
in favour of the rise, whilst, at the bi-monthly " ac-
count," they may, perhaps, call the " contango"
" even," or 3d. " back," in order still further to
encourage the outside " bulls" by the idea that it is
a " bear" account.
As soon as an opportunity occcurs, or can be
made, for turning round, such as a real or supposed
rise in the rate of discount, or something disastrous
or ominous in the affairs of one or more companies,
then are set going rumours of failures and calls, re-
ports 6f losses, surmises of diminished dividends, or
of the withdrawal or bankruptcy of directors, or as-
sertions that Rothschild, Baring, Peabody, or the
directors are large sellers ; and then the " jobbers"
turn round, and become " bears," or sellers,
with all the additional leverage which it is so
much easier to establish on the fears than on
the hopes of speculators. By reversing the
operation above described, but risking the " turn,"
and, perhaps, somewhat more, and thus " banging"
the shares, a heavy and profitable fall takes place,
which, besides benefiting the " hear," stimulates
and increases the business of all the dealers.
There is another rock on which speculators
usually split, namely, that when money is easy
bankers and brokers will lend almost any amount
with a very small cover, but the moment there is a
rise in the rate of discount and a fall in shares the
cover is doubled or trebled, or the loan is called in,
and the shares must be sacrificed at any cost in a
falling market. Brokers are notoriously afraid of
incurring the ill-will of " jobbers" (for whom they
have a touching but, to outsiders, a costly sym-
pathy), by endeavouring to deal at toolow a " turn"
—say 1-32nd, which is considered shabby, or by
dealing with other brokers and thus depriving them
of their " turn," to the advantage of their clients, or
by opposing stratagem to stratagem, and saddling
the "jobbers" with shares when they suppose the
principal is a buyer, instead of allowing them to find
out, as they usually do, that he is a frightened or
forced seller, and then to " bang" the shares in order
to enhance the " turn" to the utmost possible ex-
tent.
experience, brokers are
the very y aworst add
either as to buying or sell-
ing,
advisersth at, in my
and usually make a " mull" of their own private
n
investments.
Independently, however, of the dangers which
speculators and investors incur from the causes
I have already named, they run the risk of enor-
mous losses from Continental complications, revo-
lutions or rebellions, failures of cotton or corn
crops, cattle disease, over-speculation in other parts
of the world, from the market being glutted with
foreign loans or other schemes, from disasters hap-
pening in other companies, from extensive sales by
directors who see danger ahead, from the death of
large holders causing a large number of shares to
be thrown on the market, from the intrinsic rotten
ness of many of these companies, from the extor-
tion of promoters and others, the incapacity of
directors or the treaehery of brokers, who some-
times receive double or treble their usual rate of
brokerage for puffing new schemes. In short, the
"pull" against the speculator is infinitely greater
than at any gaming-table in Germany, and the risk
of loss is more considerable than on the turf, in spite
of "legging" and "welshing," without a tithe of
the amusement or excitement. I conclude by giving
to persons about to speculate the same advice as
Punch does to those about to marry " Don't."
A VICTIM.

WINDS(); CASTLE.—The State Apartments of
Windsor Castle will be open to the public on and after
Thursday rexnt' under the usual regulations.
Tn eoi gold at Paris is about per mille pm., and
quotario
the short ecchang,e on London is 25.25 per £1 sterling. On
comparing these rates with the English Mint price of
lies. llOyi3dar . pa'
' ounce for standard gold, it appears that gold is
Per oent. dearer In London than in Paris.
n

SPORTING NOTES,

The Epsom meeting commences to-morrow. In the City
and Suburb= Handicap, one mile and a quarter course, 78
horses originally accepted, but since the declaration of for-
feits Victorious, Alerte, Merry Hart, Crorn Prince, Bigots,
Sidewind, Renfrew, and Roland have beer! /struck out.
Although operations were commenced by the boOknzakers
several weeks since on this handicap, the betting. ha,
been very bad, and not more than six or eight hors
have been really backed. Nevertheless, there will be a
large field, and the runners will be selected from
Copenhagen, Ostreger, Muezzin, Zambesi, Billet Dour,
Out-and-Outer, Xi, Skirmish, The Buck, Wild Poppy,
Provisor, La Valasse, Vandervelde, Nukuheva, Contra-
band, Morris Dancer, Lo Magicien, Dubiety, Lochiel, The
Czar, Mephistopheles, and Delight. The " doubtfuls" are
Archimedes, Broadalbane, Auditor, Sandal, Brahma,Elastic,
Pepper's Ghost, the colt by Rattle by Amata, Haarlem,
Hawthorn, Isis, Custaloga, and Basquine. Copenhagen
has been backed within the last two or three days, but if
the Lincoln running is correct he can have no chance.
Ostreger, Bst 11b, is one of the finest horses in training, and
as weight tells less on the City and Suburban course than
any other in the kingdom, I expect to see ostreger run
well, if, indeed, he does not -win, as Mr. Bovi▪ ll has backed
him for a heavy stake, and he is no mean judge of what a
race horse should be. Muezzin, Bst, is inferi▪
or to Zambesi
at even weights, and Mr. Merry's colt will, I think, beat
both Muezzin and Redmire, 71b 121 b, though the latter is
not destitute of racing qualities. Of the French pair
Billet Dour, 7st 81b, find La Valasse, 6st 12Ib
—I prefer La Valasse, though Pinot Dour has showed
rare form on the Continent, and must be classed
as dangerous. Out - and - Outer, 7st 510, has steadily
• maintained the position of first favourite until. Friday
last, when he was deposed from the premiership by
i De-
light. That William Day's colt is well in there
s no
denying, but I fear ho will not quite stay the course,
though he is bound to take a deal of beating. Xi, ist, has
too much weight; and Skirmish, ist, will again succumb to
Ostreger. The Buck, 7st, although in the same stable as
Mephistopheles, will, I believe, run onhis merits; but what
they are I do not pretend to know, as the form of The Buck
is nil in public. Wild Poppy, ist, has little chance to beat
Provisor, Est 121 b ; and though the latter is somewhat un-
certain, ho has only to run up to his Crorton Park form
with Miss Harriette to finish in the first flight for this race.
Vandervelde, Est 131 b, after being sent to 100 to 1, has again
joined the front ranks, and as he is very favourably
weighted, has been well tried, and is thoroughly fit, I ap-
prehend the horse that beats him will win this handicap.
Contraband, Est 41b ; Morris Dancer, Est 21b ; and Dubiety,
6st, have outside chances ; but not one of this trio appears so
tempting as Vandervelde. Lochiel, sst 13lb, and The Czar
sst 111 b, will be defeated by Mephistopheles, sst 111 b, and
Delight, sst 91b, or the high trials of the last-named pair
will prove " a delusion and a snare." Both Mephistopheles
and Delight are strongly fancied by their respective train-
ers, and if Mephistopheles is better than Gretna at level
weights, and Delight equal to Saccharometer at 2st, their
partisans have reliable reasons for their confidence. The
winner, I expect, will be either VANDERVELDE or DELIGHT.
The Half Mile Two-year-old Stakes has a capital entry of
51, the most notable names being Hermit, Knight of the
Garter, Cellina, Whirligig, Nemea, Novice, Verulam,Hippia,
Moleskin, The Assinobrine, Bounceaway, the colt by Lord
of the Isles from Lady Lurewell, and the filly by The
Duke from Lady Blanche. Mr. Chaplin's handsome Derby
colt, Hermit, it is stated, will not be sent to Epsom, and
in his absence KNIGHT OF THE GARTER and CELLINA are
the most attractive names. The Half-mile Inkerman
Plate may be won by HAVANNAH or PHANTOM SAIL ;
and the six furlongs Heathcote Plate ought to be secured
by Lord Westmorland's representative, seeing that his
Lordship has Ulphus, Indian Star, Lady Sophie, and
Rama engaged. The Great Metropolitan Stakes, two
miles and a quarter course, will probably bring out
twelve or fourteen runners. Eltham, Bst 121 b and
Brown Bread, Bst 101 b are the best of the heavy weights ;
Scandal, fist 21b and Grapeshot, Est 121 b of the middle ;
and Lucifer, Est 11b ; Farce, Est ; Treasure Trove, Est
(including 51b. extra); Eakring, sst. 121 b. (including 51b.
extra) ; Staghound, sst. 121 b., and Treasure Trove, of the
lighter weights. As public form is invariably the best
guide to go by I shall look to EARRING or TREASURE
TROVE to supply the winner. The six furlongs New Two-
year-old Stakes will, in the absence of Hermit, be won by
the Rake, though ha is penalised 51b. for his Althorp-park
Stakes victory ; and either of Mr. Chaplin's pair (Satyr or
Vespasian), probably Satyr, appears capable of winning
he six furlongs Walton Stakes.

A FRESHMAN.

SPORTING INTELLIGENCE.

CHELMSFORD SPRING MEETING.—TuEsDAY.
The Trial Stakes of 5 sous each, with 40 added, for two-
yr-olds and upwards ; weight for age, with selling and
other allowances, Three-quarters of a mile.
Mr. R. Ton Broeck's Miller's Maid, 2 yrsf Est 71b (£00)
(Evans) 1
Mr. England's Battle Axe, 2 yrs, Est (£l6) (A. Reeves) 2
Mr. Hodgman's Voracity, 3 yrs, 7st 121 b (£100)
(Heartfield) 3