The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-01-03
The ways OF WALL Street.-The Pccu
Liar Pafofs or tine Butts and Bears.

rrOIl AppietOn'5 JOnrnai.j
OF the technical terms in use In Wall street,
Where transactioiis Amounting to fifty or
sixty million dollars frequently take place in
one day, only q few are understood BY the
general public. You, my good sir, are not a
speculator; of course not. You do not care
button about "cliques" and 'ecorners !"
and, whether "bulls,' "squeeze," " shorts"
or "bears " "hammer the Market" your
mind Is easy and your conscience clear. But.
nevertheless, you may possibly be willing to
know the meaning of the strange phrases
which form the idiom of the great financial
centre, and which, if you read the money.
articles in the dailies, doubtless sometimes
set you wondering at the queer antics our
language Is compelled 70 play.
As all the world knows, the regular OPERA
tors In stocks are divided into two classes
:. bulls F" and "bears." Sometimes these
animals change their species, bulls becoming
bears and bears bulls, as falling or rising
market may lead their honest hearts. The
main object of the bulls Is to advance prices :;
that of the bears, to depress. Frequently,
when the market is rising, and there are pros
poets ola continued advance, SPECTATORS who
have consorted with the bears for several
months will suddenly desert them and Join
the ranks Of the bulls, remaining there while
Fortune smiles on that side, and rushing back
to the bears the moment the tickle goddess
indicates an intention to transfer her favors.
On the other hand, llabitual bulls often leave
their own pasture for the den of Bruin when
the market shows signs of tending down.
ward, and remain in Bruins company till
their regular graziDS-groundS again become
particularly attractive. Or, to simplify the
matter, 4 Spectator will be bull or bear,
according to the prospect of making money
on one side or the other. One who is bull
to-day may figure as a bear tomorrow, and
tice Cersd.
Bears thrive most on public calamities.
Any occurrence that unscttles values puts
money in their pockets. The burning of
Chicago was worth many millions to the
bear interest in Wall street. Occasionally the
leaders of this interest devise scheme to
shake confidence in financial soundness. and
possibly bring Oh panic, in order that they
may break the market and buy stocks at low
prices. They do not care how much the
community may suffer, or how many mer-
chants, bankers, or manufacturers may he
ruined. provided their own interest is served.
Generally they are utterly INSCRIPTIONS as
to the means employed to accomplish their
object, and the more embarrassment and SUI.
iering they cause to others the more likely
are their own transactions TO yield them
handsome profits. Yet if there were no
bears in Wall street the Stock Exchange
would he found rather dull place.
The terms "long" and "short" are OF
respective application to the bull and bear
parties. The bulls are always "long" of
stock, and the bears are always "short."
The specuator who has stocks on hand,
which be bought with the expectation of
selling at higher prices, is on the bull side,
and, in the parlance of the street, is " long"
a bear seldom has stocks on hand. His bust
ness is to sell "short that is, to sell pro-
perry which he has not got, intending to buy
and deliver when prices are lower. Gene
rally the stock is to be delivered the day
after it is Sold but quite often the bear does
not buy it for month, or two or three
months. How, then, can he deliver it within
twenty-four hours! BY borrowing from
another person.
There is in Wall street q regular system
for borrowing stock. The broker who repre-.
SCENTS the Spectator procures the stock on
loan from another broker, to whom lie gives
a check rs security for the value OF what is
borrowed. This transaction is good for one
day only, but ii may be renewed the next
day, and then the next; and thus several
" ecks may pass before the stock is really
purchased for delivery. Meantime the seller,
if he belongs to a clique or pool is try.
Ing every day 10 dcprcSS prices in order that
he may buy the stock at Il lower figure than
rn, at which he sold it. This is the oper,.
ton known as hammering the market, >
and IA very exciting one it SOMETIMES Is
but the BEATS ire often badly "squecztd,''
and then they ntakc rush to "coyer."
When the bulls lcaru that there is large
"short" intbr:}st id any particular spot
they put their heads together and get Up a
s'corner" When stock is said to be "cor
nered," the meaning is that it is controlled
by il clique, The clique holds enough of il
to control the tttarket and exact such terms
as may be desired. An Upward niofeuent is
suddenly developed, and Tie bears who have
sold short" i'll expectation of lower prices
become aiafmed aid bhsir 10 bug. In the
majority of cases the men who work the adj
vance are the very ones who bought what
the bears sold, and they are now selling il
to them at high figures for delivery back to
themselves.
"Twistins" is the process of making thu
bears pay high prices for what they proba
bly, sold at low prices, and "covering" is
the operation of buying stock to close "Short'
contracts. Once in while stock is SC
closely "cornercd" that it car hn barrowed
only ut enormous interest for the days Use
perhaps at rate that is equal to one thou
sand per cent. per annum. An operation Of
this sort Is the worst "SquecZe' of all, auC
it is not TO be wondered at that, M the gen
tleuen OF the Stock Exchange say, the bear:
GENERALLY "Suueal" under it. One shrcwt
manipulation of stocks is known 10 have
cleared fifty thousand dollars in one dny by
looming Il fancy stock that he hid "corncred.
But the same gentleman sometimes gets into
"corner" prepared by others. 1t is con-
monty understood that he was lecccd TO the
amount Of nearly two millions during the
likely "Northwe>t' gale few weeks since
Puts" and calls" are terms of more
than ordinary difficulty for the initiated tc
understand. Their meaning may, however
be made comparatively plain. A. for in.
stance, proposes to "put' 10 B-that is, de-
liver TO him-a certain amount of certain
stock within certain time at price agreed
upon when the contract is made, and gives
Ba bonus of one, two, or three per cent, us
the case may be, for the privilege. This is a
"put." II the stock does not decline in
value to an amount exceeding the sum given
to b, A cannot make anything by the trans
action, and unless he chooses TO deliver the
stock he is not obliged to do so. If it falls
more than that amount, A may make good
profit, for b, having accepted the bonus, is
bound to take the stock, even though it may
l,nc al Mt Tt-a halo br
price at which he agreed to take it.
A "cal " is pretty much the same thing,
with this difference y gives B a hundred or
a thousand dollars, or whatever sum may be
agreed upon, for the privilege of calling"
from Is certain amount of stock within 4
given number of days. If the stock advances