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del sentit mense extent of British commerce, Joo in last good-faith with which its opera- ground to the public, or to any one

E; and the the amount of money which re- sterling. The commission upon ubes pat . quires to be sent

thither, the bills these transactions — which varies ing and may be purchased at a fraction be- from one-eighth per cent on the nk bike low their normal value ; but if the sale or purchase of Consols, to onese niveles payments to be made in Calcutta fourth per cent on the dealings in the great exceed the amount of the bills, then other and more variable kinds of

a competition for the bills ensues, stock - amounts to a large sum ; business and their price is slightly enhanced. and this sum constitutes the profits Let me But the range of variation ne of the stock-brokers, who conduct For the exceeds the difference between the these sales and purchases for the a stranget cost of postage on the one hand, public. A stock-broker ought not r for star. and the expense and inconvenience to deal or speculate in stocks at all. was erite of transmitting specie on the other. He is simply the agent by which entral ozThe normal price of a bill, as we such sales and purchases are effectted_0171 have said, is simply the amount of ed. And if he himself becomes a neither in the bill, minus the discount on the dealer, the persons who employ bim ctable, sur time it has to run. Accordingly, have no security that their interests h the res by means of these bills of exchange, will be properly attended to. He at some d the whole cost, risk, and incon- may buy for himself the stock here by a venience of collecting and trans- which they commission him to sell; nient me

mitting specie from one country to and in such a case it is not to be hers are 1 another is saved. And this saving expected that he will give for it

is really an immense one. If the the highest price that can be obT'nesday ar payments of commerce had to be tained. But the stock-brokers are e serie de sent backward and forward from not the only parties in the Stock Ters are the country to country, not all the Exchange. There are also the stockone 15specie in the world would suffice to jobbers—men who deal in stocks

carry on operations so vast. If the and shares, selling them at the helmesi agency of bills were suspended for highest price which they can get, zee

, but d a few months even between Eng- and buying them at the lowest. of entT &

land and India, the drain of cur The entrance to the Stock Exthat the rency would speedily produce a change-or. Capel Court, as the

deadlock in both countries. Such large room is called where these is the importance of the operations operations are carried - is in the Royal Exchange; and there through a large pillared front, are no others, even in this Capitol or portico, facing the east end of of

money and trade, which display the Bank. But it has other entranin so remarkable a manner the im We remember the first time

we stumbled upon this sanctuary as well as the skill and mutual of jobbing-upon this forbidden tions are carried on.

who is not a member of the brotherThe operations on the Stock Ex- hood who carry on their operations change are of quite a different here. Seeking a short cut from nature. The property there dealt the eastern part of Threadneedle in is stocks and shares of all kinds : Street into Throgmorton Street, we Government securities, ranging in entered an alley not so privatesolidity from British consols, the looking as many which in this steadiest of all, to Greek coupons precinct connect one thoroughfare and Spanish passives — railway with another. Men were passing shares, mining shares, and shares along it to and fro, and we did not and bonds of joint-stock companies doubt we should quickly emerge in of all kinds. În these the public in- Throgmorton Street. But suddenvests its spare capital, and the trans- ly it assumed the appearance of a fer of these stocks from one hand to cul-de-sac, and we found ourselves another, by buying and selling, is so at the doors of a large hall, full of great that the daily average of trans- people and of a clamour of tongues. actions amounts to many millions À porter was at the door to keep

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out the profane vulgar : and the not the permanent value of the room into which we were lookingstock—or merely from sympathy both through door and window, with the rise or fall in other stock of was the Stock Exchange. This a similar character. The public has place of business is the property of neither the leisure nor the knowa corporation; and, unlike the Royal ledge sufficient to judge with conExchange, no one can come there to fidence, and is generally more sell or buy unless he be a member encouraged or depressed by the of the corporation. It is for its rumours or facts of the day than own members that the Stock Ex- there is reason to be. All these change reserves all the profits on things the jobber has to take into the traffic which goes on within its account; and as it is no easy matwalls. The business of the stock- ter to be a prophet, he must either broker is simple enough, and if he be a lucky or a clever fellow if he have good connections, it is as does not sometimes come to grief. profitable as it is easy. When he Great gains usually alternate with gets an order to execute, all he has great losses in this kind of busito do is to buy or sell at the cur One would think these jobrent rate. He steps into Capel bers would soon die of worry and Court, and at once finds the dealers anxiety,and often enough they he wants. Every stock-jobber has are to be seen very down-in-thea special line-one deals chiefly in mouth. But Nature is kind, and Mexicans, another in Indian stock, fits the back to the burden. Or and so on; and, moreover, there rather, most of these men have are places in the room where been born with the peculiar temcertain kinds of stock are specially perament of the speculator : they dealt in. The broker finds the have an extra amount of hopejobber, and, after ascertaining that fulness, and get through life, with the terms offered are in accordance more excitement indeed, but hardly with the ruling price, he makes with less equanimity, on the whole, the bargain, and in five minutes than any other men engaged in the business is over.

trade. whether given to him to make a The most novel feature in the purchase, or received as the proceeds economy of capital during the last of a sale, passes through the hands year or two, has been the estabof the broker, who deducts from it lishment of great credit-companies. his commission, the cost of stamp The special object of these comor registry, &c. The business of panies is to provide money for carthe jobber is a much more difficult rying out industrial or financial one. He is, in fact, a speculator. enterprises which are worthy of He buys stock in the hope of sell- support. The credit-companies do ing it again at a higher price. It not directly engage in these enteris therefore indispensable that he prises: they simply launch them, should carefully examine the cha or at least provide the capital reracter of the stock in which he quisite for carrying them on, deals, and

the circumstances, charging a commission for their whether political or commercial, aid. One of these, the Internawhich from day to day affect its tional Land Credit Company, is value. He knows that the value worthy of notice here, because its of stock, although substantially de-operations display in a remarkable pendent upon the soundness of manner the system of financial coguarantee and the rate of interest operation which is now being estabwhich it yields, is nevertheless lished throughout Europe, as well affected from day to day by what as the great amount of social good may be called merely moral influ- which may be effected on the mere ences—by passing gleams or sha- principle of self-interest. There is dows, flitting prejudices it may be, no safer security than land; but which affect the popularity though the prime requirement in financial

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operations is, that the security manage the whole of this part of should not only be perfectly safe, the business, while the Bank fur

but readily negotiable. In other nished the funds. This business 1. Do words, the bonds, representing the proved so profitable, and the field

money advanced, should not only be of operations was found to be so

certain to be paid when due, but the extensive, that it was resolved to gener holders of them should be able to invite the co-operation of capitalists derreneta sell them easily, or get money ad- all over Europe. Hence the estab1 01 th: vanced upon them. Not one, but lishment of the International Land

several financial establishments are Credit Company. The business

needed to accomplish these ends on of this company is simply to raise it is no ai a large scale ; and the International funds for carrying on the highly

is the last and crowning company profitable operations above-menof a series previously established. tioned, the money being readily It will deal with land everywhere, obtained from the public upon but at present its field of operations bonds issued by the Company, and is in Austria. In Austria there are bearing 5 per cent interest, and estates of immense size, held by in- which are rendered more than usu

dividual proprietors, many of them ally negotiable, owing to the numiten ene

heavily burdened with mortgages ber of local land-banks and other contracted on the most usurious financial establishments which are terms. Half - a - dozen years ago

affiliated with the International. The some foreign capitalists discerned credit of conceiving so remarkable the fine field that was here open to a series of co-operative companies, them; but before foreign capital to and of successfully establishing it, is a large amount could be attracted, due to M. Langrand-Dumonceau, of it was indispensable to establish the Brussels. The security offered is perfect soundness of the security the most complete that can be and the negotiability of the mort- imagined :-1. The land ; 2. The gage bonds. The first step towards double amount for which the purthis was the establishment at Vienna chasers give their bond ; 3. The of the Vindobona — a joint-stock capital of the Vindobona ; 4. The company which, on receiving a per- capital of the Banque de Credit centage or commission, guarantees Foncier et Industriel ; and lastly, the repayment of loans on estates, The immense capital of the Interas well as the regular payment of national. But what is chiefly rethe interest. In this way, the markable, from our point of view, creditor acquired a double security is the system of financial co-opera-first, the land itself, secondly tion herein displayed - a system the capital of the Vindobona. which is destined to be ere long Next, land - banks were established immensely developed — until, in which advanced money on these fact, Europe shall become but one bonds or mortgages to their full country as regards industrial fiamount—thus rendering them ne nance, the spare capital of each gotiable. Next it was seen that a country being drawn to common large and most profitable business centres, and seeking the best marmight be carried on by the purchase. ket wherever that may chance to and re-sale of estates—purchasing be found. them in block, and re-selling them This wealthy and busy precinct immediately in comparatively small has a literature of its own-jourportions, say of 100 to 500 acres. nals whose special task it is to reTo accomplish this, the Banque de cord its operations and set forth its Credit Foncier et Industriel was condition. But it has more than established, which has agents all this; for the whole country takes an over Austria, who examine into interest in its bulletins. In all our titles and values, who find out daily newspapers there is a departproprietors ready to sell and small ment of news, never omitted, which capitalists ready to buy, and in fact is scanned with devout attention by

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hundreds of thousands of readers, Edinburgh, where men live by the yet which is certainly not indebted learned professions only, and who for its popularity to any attractive scorn trade in the old sense of the ness of style or appearance. It is word. In truth, nearly all men in the driest column or columns in this country are traders now, though the paper. It is full of figures, and many of them trade as it were by tables of figures (usually so repul- proxy. The joint-stock system of sive to readers), preceded by a few enterprise has of late years drawn paragraphs, seemingly of a very the whole community into its vorstereotyped aspect, and couched in tex. As a nation, we have grown language peculiar to itself. There- very rich. It is computed that the in we read of “ Consols for deliv- annual savings of the nation amount

“Reduced and New Threes,” to the enormous sum of £80,000,000. “ Turkish Consolidés,” “ Danish Like thrifty men, we desire to emScrip,” "Greek Coupons,”. “ New ploy that sum, our spare money, in Granada Deferred," "Spanish Pas- the most profitable manner. Nowsives," Russian Threes," “ Chil- adays, too, we have the whole ian Sixes," and other such things world open to us as a field of comhard to be understood by the mercial and financial enterprise. In uninitiated, however conversant commerce, at least, nations are now they may be with the grammar brethren. No nation objects to the of Lindley Murray and the Dic- introduction of foreign capital to tionary of Dr Johnson. We develop its resources. These two also read that “the market is facts—the vast increase of wealth easier,” or that it “ opened flat," in this country, and the magnitude that it “ assumed a more lively ap- of the field open for its employment pearance,'

or that it “ showed a -have given an extraordinary exfalling tendency,” or “great de- pansion to the joint-stock system; pression.” This never-omitted and an expansion which has been greatly much-studied portion of the paper aided by the passing of the Limited is the City article, in which the Liability Act. Previous to the health and spirits of the Money passing of that Act, it had been Market are described pathologi- proved by long experience that cally; and the price of stocks and business could be conducted as ably shares, and the condition of all by a board of directors as by a priestablished companies quoted on vate firm. True, the management 'Change, are carefully recorded. A of a public company is never so single glance at this portion of the economical as that of a private firm,

Times' will show the magnitude and the supervision of a salaried and variety of the enterprises

quoted board of directors is seldom so vigion 'Change. Besides the loans to lant as that of private partners, foreign governments, there are up- whose whole fortune is at, staké wards of 600 kinds of stock or in the concern.

But, on the other shares in the official list, connected hand, a joint-stock company obtains with railways, mines, docks, joint- the command of a far larger amount stock banks, colonial government of capital than private firms—which securities, and miscellaneous enter- gives it a great advantage ; and, prises.

moreover, in many cases, it is inThe City article is no longer read sured of a large amount of business, merely by a particular class of the in consequence of its shareholders community. All classes, and all being also its customers. Take, for places in the country, have a direct example, the case of a joint-stock interest in the facts which it re bank. It may have a thousand cords. It is read with interest not shareholders, and all these sharemerely in London, Liverpool, Man- holders are its customers. They chester, Birmingham, Glasgow, and have not only subscribed the the other great centres of industry, capital by which the business but even in uncommercial cities like is carried on, but they intrust


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get all their loans and discounts lishments to do the work which

from it. In this way they make would be more economically perEh, nearly dis business for it, and at the same formed by one; and it is full of trader inte time share in the profits of that social unhappiness, and fruitful in trade as the business. They not only get from the bitter feelings of rivalry and int-stock yox it the usual interest their jealousy, because each establishof late per deposits, and the usual advantages ment seeks its gains at the expense munity ind i of monetary accommodation, but of the others. The new system of on, we here they share in the profits which arise co-operation, on the other hand, - computed from this form of business.

seeks to unite and fuse into one the f the nating The Limited Liability Act has hitherto rival interests of the trader sum of. Will greatly lessened the risk incurred by and his customers, of the consumer e, we dan shareholders, by limiting the liability and the producer. Take for ex

of each to the amount of capital for ample the case of a company for the

which he has subscribed. Share- supply of gas, or water, or any other have the holders are now comparatively at necessary or luxury of life, and there

They elect from their you find that a large portion of the cial enterpers own number a Board of Directors, customers are also shareholders.

whom they pay for conducting or By-and-by the system will be more at least supervising the business of fully developed, and the social adthe company, and they know that vantages will be commensurately at the worst they cannot lose more increased. Say that a little town is than the sum which they have chosen desirous to supply itself with gas

to subscribe. The system, on the or water; then a company will be rits emple whole, has worked remarkably well. formed, with a capital apportioned

It is also accomplishing a revolution in many small shares, so that nearly
in the ideas and financial habits of every householder may be a mem-
our people. It offers a higher rate ber. In this way the company will
of profit than the interest obtain- insure for itself the largest possible
able upon deposits in banks, and number of customers — opposition
thereby more effectually puts an end and jealousy will disappear, and the
to hoarding, extends the spirit of en- little community will have but one
terprise among all classes, and draws interest in the matter. In like man-
into active use the whole spare money ner, also, a town may supply itself
of the people. Clergymen, lawyers, with bread, or groceries, or butcher-
doctors, noblemen, and tradesmen meat, or any other article for which
alike, now become shareholders in there is a general demand. The
joint-stock companies. Each, while employés, too, of the company, by
pursuing his own calling, invests holding shares in it, may be made
his reserve funds in some financial, to participate in its interests, and
trading, or industrial enterprise. He to discharge their duties with more
thus obtains the profits of another scrupulous diligence than is usually
trade while following his own. We to be found in a hireling or salaried
are at the outset of a new era in agent. No doubt the time is still
social progress, and one which is distant when the system of co-opera-
probably the highest to which ma tion shall reach this development;
terial civilisation can attain. It is nevertheless, its coming may be cal-
the era of Co-operation. Hitherto culated upon. And thus, at the pre-
Competition has been regarded as sent hour, we are witnessing the
the most efficient agent of social initial stage of a principle which will
progress. But the principle of com revolutionise oursystem of industry,
petition is one of rivalry and strug- and accomplish results fraught with
gle—it is a system of beggar-my- a vast increase of happiness and
neighbour-most useful in the ear- prosperity to the community.
lier stages of civilisation, but one Large as are the annual profits of
most unworthy of civilisation in its our nation, it seems beyond doubt
maturity. It is

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