New-York tribune. [volume] (New-York [N.Y.]) 1841-1842, 1841-12-20
stocks and stock Gambling.

niiv were fixed on the manTuyres of the Stock
Exchange win view TO the removal OF the enor-
nous evils which, through perverson ST its ma
chinery, are inflicted on public and private inter
<.ts Experience has abundantIy shown that Law
can do nothing toward their correction, but Public
Opinion may and, in the hope that it may BE-
brought TO bear efficiently on the action OF The
Board, we TOW approach the subject.
Public Stocks exist, aud will exist; persons
holding them viii occasionally wish to sell, with
view to o,her Investments or uses; while other'
will buy from time ,imo, either for personal in
vestmen, or as guardians of minors, trustees of in
sttu,ions, directors of savings banks, &c &c.-
The process Of transfer, Of buying in and selling
out, is constantly going on and the interests OF all
but those who take advantage OF others necessi-
ties are promoted by the existence OF an Exchange
Board, where any Stock may at any time be pur-
chased or sold Ii, the current rates. But for some
such organization, Stocks worth par might to- ia!
be bought at l05 and sold at 95-in sther words.
the difference TO The community between the buy
Ing ana SrliIHS IdlcS Nouiu pS ihi SANosNi t'io'
now the facilities OF Investment and sale greatly
diminished, and the ordinary value OF Stocks much
less than under good system of Stock Exchange,
But the undeniabe advantages resulting from
are fully neutralized present by the fragrant
abuse of them Ia purposes Of baneful speculation
and gambling, through the medium Of sales OF
time If a meniher of the Board purchase New
a legitimate bargain, possibly for himself, but more
probably for some one else who has employed him
as his agent in making the investment. The inter
eat of all parties concerned in the transaction l.
either favorable to stability, quiet and good faith
or, ut any rate, not adverse to them. But he who
bargains 10 deliver one thousand shares Of New
York or other Stock thirty, sixty, OF ninety day.
ahead, has in fact made bet AZ uinst the integrity
sovency and prosperity Of the country; public
calamity is his good fortune; and Le hus placed
himself under the strongest temptations to act The
part Of an anarchist or Bcendiary. 1t any State
can be brosght to dishonor her faith if the iend.
prpuuIuuUii, var NC ruaAru ~ irut any wirre M
horrd head if general dis,rust embarrassment,
and bankruptcy can be produced and public
swndhng come 10 he looked Oh with complacencl
as a proper necessary recourse, his chance OF
profit from the depression OF the Stock--in other
words, of winning his bets rendered certainty.
Ii by these means The stock on which he has be,
is depressed five per cent, by The Time he has
agreed TO deliver, he wins s. 600; it ten per
$40, O00-ata cost to the community OF possb,
uot more than 500 GOO, but not iniprobably hall
million
We have here briefly described process which
is constantly going Three or four HUNDRED
s.en, betting against the integrity and soycncy eli
the States, have Rlade perhaps ten TO twenty thou
sand dollars each the past year, at an expense TO the
community of at least One Hundred Millions
They make the public calamities on which they
ta,ten. Suppose a State Stock is to-day WORT.
par, they stand ready 10 sell any quantity OF it
49, deliverable sixty days hence-in other words,
they are ready to bet tina, it will depfeciatc Two
per cent. liz sixty days. Where there are foxes,
geese are seldom wanting; and enough stand ready
10 take their bets, Now the game is opencd-its
object 10 knock down that Stock, or Stocks gen
orally: for any affects all more or less. The
very fact that a sale, though on time, has been
rumor, exhibit actual occurrence tending to show
that the State is not perfectly solvent is worth its
weight in gold to the seller on time. He can wei!
afford TO pay $l00 for strong Money Article in
The right quarter proving that the State against
whose integrity he has bet is not able 10 pay, or, ii
able, not willing. On the strength of this, he
dashes into the market and sells FIVE hundred
shares (vcry probably a confederate) at 81 FIVE
hundred tomorrow Il, &c; and five hundred mex,
day at 95-all time, mind you he has Nevsi
owned share from the first. Or perhaps he viii
buy few shares and sell them SYSTEMATICALLY at "a
decline. By this time the sensitive public takes the
alarm; the Stock is daily running doren. Hold
ers throw their Stock into the market TO get rid Of
1t before it falls to the ground every sale increases
the alarm, and crowds more Stock upon the Board
until the alarm becomes 4 panic, and the retreat a
rout, in which one ,umbles headlong over anSthe'
in dire confusion The sixty days expire; the
Stock has been run down 20 80; the author OF the
mischief pockets $1,000 difference on ms hrs
dash and perhaps as much more on the inciden'als'
without having owned touched a share of the
Stock. and ia now ready 10 commence again by
selling on time SIS, and so on.
The evil effect is not confined 10 Stocks; it ex-
tend, into every department of business. blishtins
and depressing. A. B. has loan Of $50, OO0 st
cured by hypo,hecaron ofStock at 80. He is soon
Informed that his security has become Insult
..;an.=-hr rnnst ala 10 !. & 900 o- 81 n nnA arH