The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-10-06
The Margin.

Il was noticed, no doubt, by our readers
a few days since, that at the rc0pcning of TIN
New York Stock Board sales of stock upOl
ga margin" were prohibited for time
If the stock Board could prohibit such sale
altogether it would be one of the bcS
Things that could be done to promote The
s,cadine>S aud peace Of the money market
If there is any way on earth to accomplish
this treat object it ought to be employed
At Tie Ncy York Stock Board arc sold, an!
duv, more shares of stock OF Il particular
kind, the subject of the days transactions,
than arc in existence. This sort of gambling
should be prohibited altogether. TranSac'
tons should be real, aud what is sold should
pass TO the hands Of the buyer.
Tui, Kim. Of selling or buyin" upon 4
ma,"in-t. t., buying 50 mony imaginary
share, Of stock to be delivered in thirty Or
any Number Of days. Il certain amount OF
money icing deposited rs" margin TO cover
the ,,ill.r,rcc between the price agreed upon
and the price that may prevail al the time
the stocks shall be tlcliyercd-is III fact il bet,
with the money put up. il is bet that on
4 certain day stocks will be sold for certain
price. II they sell for less, the difference be-
tween the two prices is made good ont Of the
put up" margin
OF ,o,r>c :,!is is mere gambling: yet it
takes effect upon the property held 10y other
Dcoplc. More shares of stock than are III
existence are sold and bought. The stock
never appears it never changes hands
transfers are not made. The gamblers pay
I'D or receive their losses or winnings, and
they never see a share Of stock.
In this wav the law of supply and demand
!. cyadcd, and the prices seriously affected
Of stocks which may not really be for sale at
all. 1t is a nefarious and dishonest trade,
which enables the bulls and bears to conduct
their ra>c..lly and barbarous wars to the dis
turbarce OF the quiet Of the money market,
and 10 the serious injury Of innocent people.
What we say Of stocks applies equally to
the gambling i'll gold.
Now. ii it be possible TO compel people to
make real sIles-to compel them to pass
what is sold--it would be applying the axe
TO the root OF one Of the greatest evils that
aflict this country. Let it be remembered
that New York is the settling point OF the
nation. and any disturbance OF the money
market there affects the whole country. Ill
is, then, OF national Importance that any
cause OF money troubles there should DC re-
moved.
Why has this sort Of gambling-thls puy'
ing and >clling'upon " margin been re-
sorted to at all? 1t is to enable men OF small
means to make large gambling speculations
A man having q small capital may buy many
times As much stock or gold as he has the
means to ray for, and if the wheel of fortune
turns in his favor he may make his profit on
many times more stock or gold than he coulC
possibly have bought and paid for. II ne
loses, he loses part or all Of the" margin
which he has pledged for the chance of win
ming. A more complete species of gambling
never was known and permitted as ii is in
the assembly Of leading brokers in the me-
tropolis of the nation, it is national dis
grace as well as serious national evil.
The margin should be abolished alto
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