Encyclopaedia Americana: a popular dictionary of arts, sciences, literature, history, politics and biography, brought down to the present time : including a copious collection of original articles in American biography : on the basis of the seventh edition of the German Conversations-Lexicon (Volume 12).
- Date:
- 1830-33
Licence: Public Domain Mark
Credit: Encyclopaedia Americana: a popular dictionary of arts, sciences, literature, history, politics and biography, brought down to the present time : including a copious collection of original articles in American biography : on the basis of the seventh edition of the German Conversations-Lexicon (Volume 12). Source: Wellcome Collection.
Provider: This material has been provided by the National Library of Medicine (U.S.), through the Medical Heritage Library. The original may be consulted at the National Library of Medicine (U.S.)
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![ditional stock of different kinds is termed omnium. If these be disposed of sepa- rately, before all the instalments are paid, the different articles are called scrip, which is an abbreviation of subscription. The value of the stocks is perpetually fluctuating, the variations being occasion- ed by unfounded as well as real causes. Any occurrence by which the security of the state is either hazarded or strength- ened, though one may be as imagi- nary as the other, has an immediate effect upon the ]trice, which will ad- vance or fall as the news may be con- sidered gogd or otherwise. The gaining of a victory, the signing of an armistice, and the conclusion of a peace, have each a direct influence on the rise of the stocks; whilst, on the other hand, the loss of a battle, the death of a sovereign, the commencement and protraction of war, are equally certain to lower the funds; even the mere report of a mo- mentous event will frequently lead to a considerable alteration of price. The quantity of stock in the market will also either depreciate or raise the value, as purchasers may be more or less nu- merous. The manner of buying stock is, to give a specific number of pounds for a nominal hundred pounds. Thus, if the purchase be made in the three per cents., and the current price be eighty pounds, that sum is paid for one hundred pounds stock, which yields a dividend of three pounds per annum. Persons con- versant in these things will sometimes ob- tain a considerable advantage by trans- ferring stock from one branch of the funds to another, the variations in the value of the different stocks not being always adjusted to their proper level. Every possible degree of facility, consist- ent with prudence, is given to the pur- chase and sale of stocks; yet the inter- vention of a stock broker is generally thought requisite, as the identity of the persons making the transfer must be vouched for, before the witnessing clerk will allow kis signature to be made in the bank books. All transfers of stock are made on the appointed transfer days ; and no stock can be transferred twice on the same day. The space between the shutting and opening the books of any stock is usu- ally about six weeks. (See Stock-Jobbing.) Stock-Fish. (See Cod, vol. iii., p. 288.) Stock-Jobbing. The practice to which the term stock-jobbing is more particularly applicable, is that which is carried on amongst persons who possess but little or no property in any of the funds, yet who contract for the sale or transfer of stock at some future period, the latter part of the day, or the next settling day, at a price agreed on at the time. Such bargains are called time bargains, and are contrary to law; and this practice is gam- bling, in every sense of the word. The business of jobbing is carried on to an amazing extent, and is of this character: —A. agrees to sell B. £10,000 of bank stock, to be transferred in twenty dj»ys, for £12,000. A., in fact, does not possess any such property; yet if the price of bank stock on the day appointed for the transfer should be only £118 per cent., he may then purchase as much as will enable him to fulfil his bai-gain for £11,800; and thus he would gain £200 by the trans- action. Should the price of bank stock advance to 125 per cent., he will then lose £500 by completing his agreement. As neither A. nor B., however, may have the means to purchase stock to the extent agreed on, the business is commonly ar- ranged by the payment of the difference— the profit or the loss—between the cur- rent price of the stock on the day appoint- ed and the price bargained for. In the language of the alley, as it is called in London (all dealings in the stocks having been formerly transacted in 'Change al- ley), the buyer in these contracts is de- nominated a bull, and the seller a bear. As neither party can be compelled to com- plete these bargains (they being illegal), their own sense of honor, the disgrace, and the loss of future credit, that attend a breach of contract, are the sole princi- ples on which this singular business is regulated. When a person refuses, or has not the ability to pay his loss, he is termed a laine duck; but this dpprobrious epithet is not bestowed on those whose failure is owing to insufficient means, provided they make the same surrender of their property voluntarily, as the law would have compelled had the transac- tion fallen within its cognizance. This illegal practice is nothing more than a wager as to what will be the price of stocks at a fixed period ; but the facility which it affords to extravagant and un- principled speculation, and the mischief and ruin which have frequently followed it, determined the legislature to lay a pen- alty of £500 on every pereon making such time bargains ; and the like sum on all brokers, agents and scriveners em- ployed in transacting or writing the said contracts. By the same statute also (7 Geo. II, ch. 8), a similar penalty is im- posed lipon all persons contracting for the](https://iiif.wellcomecollection.org/image/b21136816_0014.jp2/full/800%2C/0/default.jpg)
