Baltimore commercial journal, and Lyford's price-current. [volume] (Baltimore, Md) 1840-1849, 1849-04-14
THE NEW YORK STOCK EXCHANGE.

THE NEW YORK STOCK EXCHANGE.
The Stock Exchange, as at present organized, has
been in existence about 80 wears There now
very nearly 10 members. A candidate is admitted
after having been broker year, or clerk with
a broker two years. No other qualification is ncces-
sary, except that Of good reputation and credit.
/ These have sometimes not been very closely nquir-
cd into, and some have been admitted who did not
deserve it, either from their character the
of their capital 1t is unfortunate that the facilities
OF obtaining livelihood BY stock speculation are so
great that many, who unwilling TO submit to the
drudgcry of life, induced to hang about Wall-st
and by the purchase and sale of perhaps 30 shares Of
fancy stock, are enabled TO gain subsistence out OF
the profits OF the transaction. But Fortune is prcca-
rous, ahd these operations always end in ruin. The
spectators divided between the insiders and
the outsiders. Those who out, possessing, per-
haps as little : 100 or ) 500 capital are enabled
TO speculate, by placing that in the hands of in
slider as a margin. The latter buys 50 shares on
time, and if il should IN, sells ut a profit In
this case the capital of the outsider is incrc ascd and
he may go on increasing his risks accordingly. The
cases Of loss, however, frequent. and the out
slider may, By bad stroke, lose the whole of his
capital
There is no place where credit has been unforu
nafcly, more easily obtained than in w alI-st. few
months OF promptitudc enables man 10 get credit
Tor stock Spccuatons 10 large amounts, that, if he
Is bold, and moves in a fortunate time he may make
large fortune. This, however, is very seldom the
case The caution Of brokers has lately somewhat
increased Dt insiOrtunrs growing out OF such conf
dcncc, and ii is not easy 10 obtain credit form
cry.
Considering the vast amounts Of business done on
the Stock Exchange th.re is less cGbitll engaged in
II than in any other Of the large departments of
trade. II will be readily seen that broker may
make large transaction without any capital. 4
capitalist gives broker order TO buy s 50 900
l. ). Skies, which he purchases at the Board He
draws his check for the amount, and transferring the
stock to his principal, receives his check aud the
commission. In this ease il will be seen that the
broker makes no use Of capital-his credit is It's sub
stue; but /! he be not good credit, the party
selling will require ccrtiti check for The amount
b,tJrc hc transfers the stock.
In cur long observation Of Wal-st we find few
operators retiring with a competency. But a very
few fortunate cases have occurred within our rccol
lccton-indeCd 1t is almost always the case that per-
Sfrfrdnce IN speculation stcnmpS the party and he
ends worse off than he began. In the mean time he
has handled large sums Of money, lived in luxury,
drove his fine horses and excited envy. After this
climax il Is difficult for him return TO the unex
cItablc routine oil honest and humble labor, and he
moves about a decaycd gentleman, making small
operation for commission, merely acting the 60
betUefn between two sympathizing patrons, who try
TO help him along.
Setting aside any view Of the moral influence Of
Stock Speculation, we believe the Board and Bro
kers to be honorable among themselves, and always
fulfil their contracts with fidelity that ought 10 be
initiated by all men in other professions. We know
that two-thirds Of the contracts made the Board
cannot be enforced by 10 all time sales unless
the party selling really possesses the stock the
time, Illegal. Whatever may be the motive,
these contracts fulfilled, sometimes under i'm
mcnsc sacrifices; and we know Of cases where hun
drcd OF thousands If dollars have been paid out to
fulfill contracts that could not have been enforced by
law.
Taking the Board Of Brokers as a whole it is COM
posed Of very respectable mcn-somc occupy high
positions socially, and are deseryCdv respected.
Many Of them have seen every phase Of fortune,
have been rich and poor alternately; many, highly
respectable, have changed positions with those who
were their Interiors and at this day struggling
against pride and poverty with a tenacity which w ill
. MT rclinqnsh its aims. Hope alone sustans them
/ They look forward to some fortunate period when
they shall be able TO redeem heir position and stand
again at the top Of the ladder
Nall-st is the world in small compass, although
the changes are more rapid and frequent than in any
other branch Of business.
We have within twenty years almost two
thirds Of the members Of the Stock Exchange fail IN
their contracts, and probably onchalf Of their pre-
sent members at least have been obliged al times
, compromise their dcbt-.
/ Ih1 Brohes Of the Board, those who buv and sell
only commission, and never take "ilver" for
| themselves, are fetc. Probably there is not half A
dozen OF Them vino attend strictly to commission bI-
sincss-the temption to make a venture is too
/ strong for them, and they Cannot resist it.
This Is not the case Oh the London Stock Exchange
The members must enter INTO bonds when elected,
and they forbidden TO speculate on their own &C.
count The obocrS alone, on the outside, being the
fellow members, that they will be able or compelled
TO fulfil their Obligations TO certain specified amounts
On our Stock Exchange everything is left to the in
tegrity and honor Of the member. lie may or NAV
not iufl-the forfeit is only his at the Board.
This may appear rather lOOs: system, but il works
as well as # they were compelled by law 10 fulfil
their contracts. The contracts are regarded as debts
OF honor aud are generally met with great prompt.
tude.
In most Of the transactions on time for outside spc-
culaors the Brokers run very great risks and we
believe we may say with confidence that they are
oitrncr cheated than any other class of men, BY weak
and unprncipled outside spectators who NAV obtain
their confidence; indeed we know Of cases where
brokers have lost $4,000 or more by the drfalca.
ton Of sing outside operator, while they are de-
barred from any protection from the law it stands
Inc fluctuations IN property in Wall-st. are per.
hafs the most extraordinary parts Of its history for
in country in the world do Stocks RISE and FAIL
to the same extent. We know Of a party who pur-
chased Stock in a Railroad Company. II cost
him 10 per ccnt. He made voyage 10 the East In
dies. In the meantime the Stock fell TO g. but on
his return it sold at 81, leaving him a small profit!
Such were the singular changes of this Stock; but
this is frequent occurrence in Wall.st, and those
who have watched the market for years well know
the extent 10 which they occur.
The technical terms Of Wallst. we believe are
well understood: the buyers and sellers are dcnomi-
mated 'bulls' and "bears''-the buyers or "bulls"
wish to toss things up as they anxious 10 sell at
profit; the "bears" 10 trample them do,on-they
having sold stock deliverable next month"; or in 30
or 90 days, and therefore wish to buy in the stocks
they have to deliver at price less than they sold
them at the difference being the profit loss of the
transaction. Hence the buyer is always willing to
hear any favorable rumors Of improvement in the
money market-n the receipts OF the company whose
stock he holds or has purchased, &c. &c while the
sellers or bcars" are too apt TO exaggcrae in their
imagnations the difficulties Of the country or of the
money market. Each takes a view according with
his interest and acts accordingly. The Board of
Brokers frown upon any concealed or undermined
attempt TO deceire with regard 10 any stock, and
member detected in knowingly making false
presentation would lose his position.
The Stock Exchange is composed Of men having
varied and diversified interests, and il would he i'm.
possible for them to unite in any effort to deceive the
public.