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)
All these things tended to prepare the mind of the English
capitalist. But a further temptation was offered. The revenues of
the kingdom were portrayed in glowing colors. It was said that Don
Miguel could, but would not, pay the interest of the existing debt,
and that Don Pedro could and would. The scheme proved thoroughly
successful. The note of expectation being thus sounded, a band of men
was engaged, vessels were hired, and, with the aid of English money,
English men, and English ships, Oporto was taken. The public mind
was now ripe for a loan. The success was magnified, the achievement
enlarged on, and £800,000 were demanded on the security of some
port-wine. The money was lent; Don Miguel fled to Rome; and the young
queen was installed in his place. A further loan of two millions
followed; the interest was difficult to pay, the dividends were
capitalized, and great excitement pervaded the Stock Exchange at the
rumors which were currently circulated.
But another important movement was going on in connection with loans
to Spain. The principal powers of Europe had agreed that Spain
and Portugal should assist each other in the expulsion from their
respective territories of Don Carlos and Don Miguel, and that the
other courts should assist the belligerent parties. From this treaty
arose an auxiliary force raised in England to assist the youthful
queen of Spain, and “The British Legion” is yet named with derision.
From the courts and from the alleys of St. Giles’s, from the town
jail and from the rural workhouse, came half-clad, wretched, and
miserable beings, who preferred being shot to being starved. Efforts
to gain commissions were made by as motley a crew. Youths from the
counting-house and from the shop were assiduous in endeavouring to
attain them. Gentlemen with small incomes and no knowledge of war put
forward their pretensions; and the officers were, in their way, a
match for the men.
With all these disadvantages, the legion secured the success of the
cause for which it fought; and, after a series of battles, Don Carlos
was compelled to fly from the territory. A loan of course became
advisable; and, although the interest on the previous debt could not
be paid, it was proposed to advance an additional four millions.
It need scarcely be said that, to procure this, promises were as
plentiful as ever. The property of the Church was to be confiscated,
and the Church itself to be upset, rather than not remunerate the
bondholder. By means of deferred stocks, active stocks, and passive
stocks, bargains were concluded, and, for a time, all was excitement
in the foreign market. Every kind of security became sought for;
however worthless, it had a price; however valueless, it found a
buyer; and the debts of states which had never paid one dividend,
which were scarcely in existence, and which had not any revenue,
advanced 100 per cent.
Public-domain text, read in full here on John Shaqi.
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