The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-06-25
FINANCE, FRAUDS, AND FAILURES.
BY THE AUTHOR OF THE BUBBLES OF
FINARCE.n


Amongst ordinary Englishmen, how many
were there five ears ago who attached any ded-
mite meaning TO the word "hnance,n or in con-
veisaton ever used the verb "to 6nanCeP We
had all read OF the Minister of Finance In cont-
mental counties, and shortly alter the great
mUtiny, British Ind was not little puzzled at
hearing that the late Mr. Wilson had been
appointed "Finance Minister" for our Eastern
Empire. The office OF the former we know was
analogous to that Of our own Chancellor of the
Exchequer; and we lamented the death of
the latter, who so quickly met in the East
the late OF seven out oi every ten Europeans
VINO 90 late in life to that land of the sun.
But the substantive finance" was rarely, and
the verb ITO finance" never, made use Of Not
even within the precincts OF the city did any
man OF business apply to the work of banking,
discountiDg, lending, or borro wing, the terms,
Finance or ito Finance.n There we're then,
as now, bankers in Lombard street. and tor
those who had good security to offer, 1t was
never difficult to obtain and IN peouniary dttti-
Guilty. Ii a merchant wanted money h used TO
take TO his bankers the bills of exchange which
he held, and which had been accepted by firms
Of respectful lity IN consequence OF merchandise
sold or conveyed to their care for sale, and these
documents ii deemed good the banker dis
counted at the current rate OF the day. Thus the
merchant obtained money he required, whils', in
return for what he had dsbursed, the banker
held legal available security, for the payment of
whichtwo, three, or more firms were responsible,
and Tor which, IT he wished 20 exchange for cur
rent money, he the banker, couldalways do by
way country gentlemen, landed proprietors,
hbuseholdeTs, or others who hal security to
offer, could always get advances at reasonable
rate Of interest by depositing with their
bankers, equivalent security Tor the sum they
required. ....
Nor was it only those who had substantial
securities tO place at their bankers that could
obtain advances or loans. Ii Captain Heavy
OF the "Baysn wanted couple of hundreds or
so 10 pull him through the Epson week, what
more natural than that he Should get his
friend De Saurey Of IL Guards to write his
name across piece of stamped paper, and with
this document he should repair to Mr.. Leverson
and get him TO ''don the BILL paying for the
accommodation" at the rate OF between so and
100 per cent. per annum? Nor could the
transaction be deemed altogether lllegltimate,
although it was certainly irregular. 1t was OF
vital Importance to Heavy that he should get
money somehow, else how could he meet his
engagements at Tattersalfs or pay his brother
plungers at the Rag what he had lost to them
Heavy has nothing that could be called "capi
tai" bey ond his two chargers, his uniform, a
gold watch, chain, rings, and scart-ptns, in
In addition to plentiful, but mostly unpaid,
wardrobe of clothes. 1t is true that his aJher
allows him $500 years but he owes Poole alone
half years income, and his paper" Is by no
means unknown to the money-ending fraternity
OF London, Aldershot, and Dublin. LeversOn
knows this, ard is equally aware that-beyond
a yearly increasing crop of debt Lieutenant
and Captain the Hon. Arthur de Saurey, of the
Coldstreams, the acceptor of the bill, has no
property Whatever. but L6VeTSOn Trusts 10 Jne
chapter OF accidents, and for the chance of an
immense profit is ready to run the risk of an
entire loss. The friends and relations of
Heavy would not allow that foolish dragoon
TO be ruined for want OF so small sum.
And even if his relatives fail altogether, is not
De Saurey the younger son of an earl and
surely his lOrdsbip would never see his offspring
reduced 10 go through the Bankruptcy Court?
Such is the train OF reasoning OF Mr.. Leverson.
We have written of all these money dealings
In the past tense, not because similar transac-
Gons are unknown at the present time, but be-
cause very few years ago there we're as q general
rule, no other kinds OF monetary business prac.
tised amongst us. Unfortunately for the pockets
and the prospects OF many thousand English
men, ii Is now otherwise. 1t was an evil day
for this country when the word FINANCE and
the undertakings known as "Fnance Com
panies,n became known in this country; and the
mania OF attempting to make paper represent
money without moneys worth oelng given
in exchange seized upon so many persons
of all classes and callings throughout the
land. Ever since, failures in trade have been
more frequent and as the facilities OF
obtaining money for what represented nothing
became more common, frauds, in the general
race for wealth, gradually came to be looked
on as far less iniquitous than formerly In TACT,
the introducing OF financing amongst US ha 81
been one OF the most serious evils which ever
afflicted our commercial world. IL began by
calling into existence race OF men formerly
unknown In business, and now called ''pro
moters of companies;" and 1t has gradually
brought ABOUT the 1auuT6S anu pdnlC WulCu
were witnessed in the city on Thursday and
Friday, the 10th and llth of May. The era OF
Finance" and "hnancing' in England found
our. commerce hourshing, and confidence be.
tween men OF business as great as 1t mad ever
been in the history of trade. 1t has ended; for,
let us hope that we have, at any rate,
seen the beginning of the end of the system in
this country, by leaving our monetary
dealings branded as gambling, and oy spreading
the curse OF mutual dstrust amongst all our
trading classes. But TO illustrate our meaning
we will relate some facts which happened
within our own experience.
Rather more than two years ago, oue of the
many financial companies which at that time
were daily springing into existence was
drought out" The promoters" of the concern
were three in number. One was solicitor
without business but who mad not long before
had to take refuge from his debts under the
doors OF the court in Basinghal street. The
second was Scotchman, who had never been
possessed of capital, or land, OF business, but
had been traveller for Dundee or Glasgow
firm, and had lately settled IN London
taking a small office in the city and calling him,
self commission agent. The third was naval
officer on balf-pay, whose modest pension barely
served to keep down the interest of his debts,
and who had managed 10 live in London for
many years by the renewal OF small bulls at
three months by touting for money-lenders,
and finding wealthy victims for bill dlscounters.
The first time these three worthless met to dis
Suss the prospectus OF their proposed scheme,
it was at the Office Of the Caledonian 'commls-
sion agent,n and having ordered q luncneon oil
beefsteaks and cooper" from neighborng
tavern, found, after they had discussed the
meal that the means OF paying for It could not
be raised among the three. The lad who brought
them the repast said he had masters orders
not to leave without the money!" aud so the
halEpay lieutenant, under pretense OF 'seeine
whether friend in the next office had any silver
by him." went out and pawned for five shilling;
silk umbrella which he had the day before
0Dtalned credit West End