[§ 4. Of Stock-jobbing.]

The practice of stock-jobbing, or the buying stocks by time has, too, on all occasions, a very considerable influence on the rise and fall of stocks. The method in which this practice is carried on is as follows. A man who has not perhaps £1000 in the world, subscribes for £100,000, which is to be delivered at several fixed times, and in certain portions. He therefore hopes to get these several portions sold out to great advantage by the rising of the stocks before they fall due, but as anything he is worth would go if the stocks should fall, he uses all means to make them rise, he spreads reports at Change Alley that victories are gained, that peace is to be concluded, &c.1 On the other hand, they who want to purchase a stock, and want that it should fall, propagate such reports as will sink the stocks as low as possible, such as that war will continue, that new subscriptions are thought on, &c. It is owing to this that, in time of war, our newspapers are so filled with invasions and schemes that never were thought of. In the language of Change Alley the buyer is called the bull2, and the seller the bear3, and as the bulls or bears predominate, Edition: current; Page: [252] stocks rise or fall. This practice of buying stocks by time is prohibited by the government, and accordingly, though they should not deliver up the stocks they have engaged for, the law gives no redress1. There is no natural reason why £1000 in the stocks should not be delivered, or the delivery of it enforced, as well as £1000 worth of goods; but after the South Sea Scheme this was thought upon as an expedient to prevent such practices, though it proved ineffectual. In the same manner, all laws against gaming never hinder it, and though there is no redress for a sum above £52, yet all the great sums that are lost are punctually paid. Persons who game must keep their credit, else nobody will deal with them. It is quite the same in stock-jobbing, they who do not keep their credit will soon be turned out, and in the language of Change Alley be called lame duck3. It is unnecessary here to give any account of particular funds, as they are all of the same nature, and the security equal. If the interest of any sum of money be not paid by the funds allotted for that purpose, it is paid out of the sinking fund, which is the surplus of all the rest. There is perhaps some little difference in the facility of payment, but this is by no means considerable, and merits not our attention.

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