The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1869-05-20
The Ethics of Finance.

There is Il great fallinr-oh in the trading
morality Of large cities iii this country. 1t
would be happy thing if there could be a
recurrence to the healthy ethics Of the
.arlior days Of this nation, especially with
regard to mems honor as custodianS of
other peoples property. 1t should be con-
Sdercd Il breach Of honor III any man acting
Is an agent, entrusted with large amounts
Of the property of his customers, to embark
in speculation in gold, or, indeed, any Of
those numerous kinds of hazard Of the day
ny which fortunes are suddenly made, and,
If course. as snddcnly lost. There is no.
thing more dcmoralizinc, and as sure as Il
man enters upon it, misfortune will drive
him to a misrepresentation of the money
entrusted to him.
A great failure has just happened in New
York in which Il Westinghouse is stated
20 be short in its gold contracts S, 900, 600 !!
The "short' business is steadily rising i'll
magnitude. This is smartly above amy Of
The late failures which had thrown in the
shade all preceding failures. This great
house which had this great fall-ScHEpLER
& Co.'s said to have been large shippers
If petroleum and provisions, and "hcayy
:" dcalcrs in gold, stocks, and bonds, for
"Europc." We infer that these people
were entrusted with other peoples funds
for special purposes, and that their reckless
Spcculations exhausted their own means
and what they had of other peoples.
Whether this be correct or not, the suppo-
siion points to Il great source OF the pccu-
niarv troubles Of this country. Money in
tended for other purposes IS used i'll spccu-
laton in violation Of prudence and honor.
This ends in great injury to hundreds whose
confidence is abused, while by the intro
duction of means not properly devoted to
speculation the standard Of value is
swcrved from its true point, and made again
TO yacllatc injuriously when the natural
revulsion from this immoral dealing follows.
While the business rcctitude and probity
are declining under the rayageS of the rage
for speculation, the magnitude of the frauds
and the rccklcSSnc>S of the gambling i'm gold
and stocks are increasing. See the immense
amounts Of the deficits of failing houses in
these times. Could any one have dreamed
of such thirty years since: They arc the
result of an utter departure from honorable
trade, and II resort to every dishonest artilice
which greed and cunning may suggest
| Speculation has 10 solid basis. Men buy on
margins. the article bought is not delivered:
but the difference in value when bought
| from that prevailin" when it is delivered is
made up by one or the other a. the case may
be. Men OF straW-mcre gullS-thuS enter
the market, and their transactions affect
prices as though they were solid capitalists.
These, again, are employed is raScully
agents by millonaires in The business Of pro-
ducng Il fictitious rise or fall iii values not
warranted by any just cause. And by such
means is the country constantly troubled
With vibrations i'll even so solid thing as
gold, and those engaged i'll honest trade are
made to suffer.
II there were some means Of breaking up
this Scoundrclly system of gold and stock
speculation, and all transactions were re-
duced to cash and instant conclusion, ii
would be happy thing for the country, its
morals, and its finances.
II to this grand revolution we could en-
force Il more strict integrity in the matter of
the security of deposits with agents and
bankers, it would be a great blessing indeed.
But these reforms depend upon each other.
Put an end to the present system of stock
gambling and the wild mania of speculation
and the maintenance of the integrity of GUS
todian> Of other peoples money would he
comparatively all easy matter.
No man should entrust dollar to the
care Of one whom he knew to be specu-
lator i'll gold, or even to have made single
transaction of that kind. 1t is not easy TO
stop with one. If it brings Il loss there
must be one more TO regain what's lost.
IL II results IN profit, why one more will
double the profit, and SO OH.
But is not all this deprayity inseparable
Tom our system of finance with two
kinds Of moncy-sold and greenbacks? The
Government demanding gold and paying
greenbacks? Deriving profit from its gold
and redeeming It's own obligations in the