Chronicles and characters of the stock exchangeFrancis, John, of the Bank of England
History
Chronicles and characters of the stock exchange
Francis, John, of the Bank of England
Speculation; Stock Exchange (London, England)
The well-known attempt to defraud the Stock Exchange occurred in
1814; but the features of the hoax were so like that of 1806, and
its effects so similar on the members, that a brief notice is deemed
sufficient. Prior to February, 1814, various brokers were employed
by persons, some of whom were not accustomed to speculate in Capel
Court, to purchase government securities to the amount of £826,000.
Among other and less important individuals, were Lord Cochrane
and Mr. Cochrane Johnstone, M. P., who, when information arrived
that some French officers had landed at Dover, with the news of
Bonaparte’s death, took advantage of the consequent rise, to sell the
stock they had previously purchased. In a short time, however, it was
discovered that the “French officers” were fictitious, and that the
news was false. Every endeavour was made to discover the inventors
of the plot; suspicion was pointed at persons who had bought so
largely and sold so well; and Lord Cochrane, Mr. Johnstone, M. P.,
with several more, were tried for conspiracy, and found guilty. The
committee of the Stock Exchange did not, as in the previous case,
cancel the bargains made, but left the parties to the remedy which
the law provided. Mr. Johnstone fled from the country, and Lord
Cochrane was dismissed from the navy. But public opinion has reversed
the decree, and reinstated his Lordship in that service of which he
was the pride and the ornament.
In consequence of the above fraud, it became necessary to serve
certain law processes on many of the members; and an attorney’s
clerk, ignorant of the custom of the Stock Exchange, or confident in
the sanctity of his mission, ventured boldly in. The solemn character
of the law was no defence, and scarcely was his errand known, when
he felt as willing to retire as he had been anxious to enter. The
disgraceful mode in which a stranger is usually treated by the
jobbers and brokers was carried out in its fullest extent, and it
was not until he had received his initiation into the manners of the
members that he was allowed to leave the mart dedicated to Mammon.
In 1815, the first French loan was negotiated in London. The fall of
Napoleon, the return of Louis le Gros, the personal expenses of the
monarch, and the pecuniary concessions of the government, demanded
a supply to which French capitalists were unequal; and a successful
attempt was made to borrow in the English market.
In the following year an act was passed, authorizing the transfer of
stock upon which no dividend had been claimed for ten years, to the
commissioners for the reduction of the national debt.
Public-domain text, read in full here on John Shaqi.
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