Transcriber’s Notes

The cover image was created from the title page by the transcriber and is placed in the public domain.

The eponymous street of the title appears in three guises: “wall-street” (once), “Wall Street” (twice) and most commonly “Wall-street”.

“Mr. Jacob Broker opened an office near the wall-street”, describing the street built on land where the old city wall was knocked down. His descendant brokers, the author writes, have “since congregated in the region round about Wall Street”, the name which is also used in the book’s title. In all other places in the text it appears as “Wall-street”.

See the [end of this document] for a full list of corrections and changes.

A WEEK
IN
WALL STREET.

BY

ONE WHO KNOWS

NEW-YORK:

PUBLISHED FOR THE BOOKSELLERS.

1841.

Entered according to the Act of Congress, in the year 1841,
BY FREDERICK JACKSON,
In the Clerk’s office of District Court of the Southern District of
New-York.

TABLE OF CONTENTS.

CHAPTER I.—Introduction—The origin of Joint Stock Companies, and Brokers.

CHAPTER II.—The History of the Morrison Kennel—Nicholas the 1st.—A Stock Speculation.

CHAPTER III.—State Stocks—History of the Morrison Kennel continued—Introduction of new characters—The U. S. Bank.

CHAPTER IV.—How Stocks are bought and sold—How Brokers get out of a bad Speculation—How money is sometimes made by doing a losing business—How Discounts are made and obtained.

CHAPTER V.—The Defaulter.

CHAPTER VI.—A Panic.

PREFACE.

The following pages were written during leisure hours of the last six or eight weeks, of which “the times” have thrown rather too many upon the writer’s hands; and the statement of this fact, I conceive to be a tacit admission, that such hours might have been better employed.

They were originally composed for the writer’s own amusement; to beguile the tediousness of otherwise idle time. And not the least motive for this indulgence was a desire to abstract the mind from too near a contemplation of the dark side of that picture, which I have described as a panic. They were not written in the first place, with any view to publication, but as each chapter was successively read in the presence of friends, and principally for amusement, those friends at length advised their publication; and with their advice they have been submitted to the press, in the original manuscript, almost without correction.

The writer has no claims to literary qualifications, and of course he seeks no reward of literary reputation. Were it otherwise the reader would at once convict him of his presumption.

Those persons who are acquainted with the business of Wall-street, will be able to judge for themselves of the truth of the descriptions; and those who have not that opportunity of judging, are respectfully requested to consider the reflections and moralizing, occasionally introduced, as made in seriousness, and the rest as the truth in burlesque.

That there is existing, at the present time, a demoralised condition of principle, feeling, and practice, pervading the country throughout, in regard to pecuniary transactions and engagements, deserving a severe castigation, will not I believe be denied by any one; and for the vindication of good faith and honesty, the writer could wish that the subject had been taken in hand, by some one more skilful than himself in the use of the scourge.

The proper correction of public morals is public opinion; but so long as public opinion is indifferent to the innovations that have grown up, and so long as pecuniary credit, and the posts of honor, trust and profit, are so frequently accorded to the most successful in their negotiations or their intrigues, without regard to the principles, or practices, that have placed them where they are—so long we may expect nothing but the increase of those mischiefs, of which so many now complain.

I confess, that were I to write the same pages over again, with a view to publication, I would alter, amend, and expunge much that is here. But as I am now engaged in something that will afford more pleasure in its pursuit, and more profit if attained, I have not time for this purpose at present. And since the present is a time, when men’s minds are alive to the subjects which I have endeavored to bring out in ridicule, I submit the whole for what it is worth.

The introduction of vulgar wit may serve to amuse some, but it is not a passport to men’s good sense; and, although it may sometimes make a book sell, it is not, in my opinion, the best way to convince of the truth. And the only excuse for indulging in it is, that the subjects of remark, and the slang frequent in Wall-street, are not of that character which cultivate the delicate sensibilities—nor can they be pourtrayed to the life, by such language or figures, as should grace the conversation and writings of a gentleman.

The practice of making a book personal, is, and ought to be condemned; and, if it is objected that, in this, I have called persons by their right names, or pointed too clearly at individuals, the answer is, that, except in the case of one martial spirit, the notable Major Downing, [1] whom I have shorn of a little of his patriotism and courage, I have in “no instance made allusions which have not been directly applied, and treated with much greater asperity, by all the newspapers of the day.” And this fact, I conceive, has given me licence, since it would be folly to wing a shaft of invective or ridicule, if it aimed at no object.

The major, I must suppose, will not consider himself aggrieved, because, from his position, he was the only person whom I could conveniently make tributary to the information I wish to give; and, since he has so often asserted his courage, without fairly acknowledging his identity, he has no cause to complain at being assailed on that point.

The remark will generally hold true, that whatever requires to be explained, or excused, is always wrong; but, in this case, I think it will not apply. I would therefore be understood as excusing only the faults of the book, and not the object at which it is aimed.

And, lastly, the writer cannot help saying that, in the face of the trite remark that, “those who live in glass houses should not throw stones,” he will not deny, that, in the expressive language of Wall-street, he has himself been “flunked;” and, with this candid acknowledgement, which will, perhaps, satisfactorily account for the production of the book, in the minds of those who may please to consider it an effusion of spleen,—he subscribes himself—

Respectfully,
The Author.

N. B. It is perceived that a considerable number of errors have escaped notice and correction, in the following pages; but as they affect only the orthography and the grammar, without detracting from the truth, or the moral of the story, I have thought it best to leave their correction to the intelligent and good humored reader, rather than mar a page with a formidable list of errata—except, that, in one instance, as a mere friendly suggestion, I would request the substitution, on [129th page, 7th line], of “stewardship” for “friendship.”

CHAPTER I.

INTRODUCTION.—THE ORIGIN OF JOINT STOCK COMPANIES AND BROKERS.

As the practice of some readers is to begin in the middle and read a book backwards, I respectfully request those who may open here, to begin at the beginning and read the preface first. In case of any captiousness of disposition on their parts, they may thereby save themselves a good deal of ill nature, and quarrelling with the author. But if any one is perverse, and chooses to go on without taking my advice, I will not hold myself accountable for the preservation of his temper, nor even of this book; for I am not sure but he may throw it in the fire, before he gets through the first or second chapter. But, should he even persevere and go through, until he receives my parting “salaam,” still I request him to turn back and read the preface, that he may see what the writer thinks of his own book.

HOW BOOKS ARE WONT TO BE MADE.

It is usual with authors, in the outset of their story, to introduce to their readers their Hero and Heroine, with elaborate descriptions of their persons, manners, habits, dress, &c. &c.; all of which is intended, either to prepare the reader’s mind for the very interesting positions which these personages are designed to fill, or to amuse those who are fond of that kind of portraiture. But in this history of “a week in Wall-street,” there is neither hero nor heroine, but a great number and variety of characters, each of whom lives out his sunny hour, and passes again into oblivion. Some there are, it is true, who, from a crawling worm, pass into a chrysalis, and appear to be dead for a time, not only to revive again with new life and beauty, but to soar a lofty height into the world of fashion, and boast the gayest plumage among those who float on the wind of fortune’s fickle favors.

The veritable history of Diedrich Knickerbocker was not a truer story than is every whit of this history of “a week in Wall-street;” but alas for the mutations in all human affairs!—a sad change has come over the waking dreams of the inhabitants of this goodly city, since the days when Petrus Stuyvesant surrendered the government of Niew-Amsterdam to the conquest-loving Briton.

HOW NEW-YORK BECAME SO POPULOUS.

From that day, when first its name was changed to New-York, it has not ceased to be overrun by the stragglers from every country and clime, but especially by those cunning vagabonds from Connecticut, and her sister states, who had well nigh taken in their toils the venerable Petrus and his jolly trumpeter, Antony. And they have now trodden down, or overturned, every remnant of social order, that was so remarkable in the time of the honest Dutchman. In one respect, at least, these interlopers seem to be the favored of heaven—for their seed has multiplied as the sands on the sea shore; and it is shrewdly suspected, by some, that the gambols of the cunning Antony with the lasses of New-Haven, in his famous journey thither, may have had some hand in this, since never was a people known who could blow the trumpet of their own fame, better than these same descendants from the colony of New-Haven.

THE OLD WALL BROKEN DOWN.

From their love of continual change—which they call improvement—they had no sooner gained a footing in the city, than they persuaded the honest Dutchmen to break down the city wall, which had hitherto prevented them from robbing the cabbage garden or tapping the hollands of the rich burghers, and which, some have said, was erected partly to prevent their too frequent solace of themselves with the softer beauties concealed by close caps and short petticoats. And they further persuaded them to convert the ground into a street, thence called “Wall-street;” which, being the scene of their first victory over that prejudice which prefers to keep folks honest when they are so, has ever since continued to be the focus of all enterprises undertaken for one’s own benefit, to be accomplished by other peoples’ means. And it is even said, that the projectors of this work, in reality, designed only to gain for themselves unobstructed access to the good living, and the pretty damsels, of Niew-Amsterdam, now New-York. Want of means themselves to perform so great a work, first suggested to them the idea of a Stock Company, for objects of public improvement; the principal virtue of which is, to replenish the fortunes of those who plan and conduct it, as is more than suspected, since most of the money generally stops short of its intended application, and can only be accounted for by mistakes in the original estimates, or expenses preliminary to the commencement of the real work.

MR. SOLOMON SINGLE-EYE.

The good Dutchmen at first looked astonished at a project so bold and vast; they next smoked a pipe and doubted; but on an explanation being given by Mr. Solomon Single-Eye, of all its advantages, accompanied with a prompt offer to embark HIS whole fortune, and give his services for nothing, the shares were eagerly caught up. And as the scheme rose in public estimation, the shares rose in nominal value, greatly above their subscription price; and such was the clamor for more, that the directors—having nothing in view but the public good—disinterestedly consented to sell out theirs at an advance of only seventy-five per cent., in order to appease public opinion, in respect of their apparent partiality in having retained any for themselves. Still, however, the inquiry for shares was eager and constant, so great was the public confidence in the integrity and shrewdness of the directors, and of Mr. Single-Eye, particularly.

At this juncture, Mr. Jacob Broker opened an office near the wall-street, that was to be, for the sale and purchase of shares.

MR. JACOB BROKER.

Mr. Broker was a man of great shrewdness and penetration. His education, to be sure, had been somewhat neglected, having been superintended in his youth by a strolling professor of the “black art,” whom to follow, he ran away from home at the age of fourteen. But his genius was of that universal kind which all men desire and but few possess—and hence the facility with which he adapted himself to his new employment. His initiation into the black art now stood him instead of capital, and made it easy for him to convince the honest Dutchmen of his power to turn “metals of drossiest ore to purest gold.” To him, therefore, they all went, whether to buy or to sell shares in the Wall-street Stock Company. And as he had often learned by the sad vicissitudes of life, the necessity of turning an honest penny for himself, he reasoned as all philosophers would do in the same circumstances, “that if he took not the tide of fortune at its flood, he might again suffer under the same unhappy conviction.” In other words, he thought, and acted accordingly, that if he did not embrace the opportunity to improve his fortune when it offered, it might never present itself again. He shrewdly guessed that he might greatly aid the rise in the value of the shares by appearing to be entirely disinterested—while at the same time he contrived, generally, to be the real purchaser when people employed him to sell, and the seller when they employed him to buy: by which means, as the stock gradually rose in the market,—the commission being considerable, the profit more—and as he bought and sold the whole number of shares several times over, he was enabled to abstract from the pockets of the honest Dutchmen and placing it in his own, in solid cash, nearly the whole amount of the nominal rise in value on all the shares.

HONESTY AND DISINTERESTEDNESS.

He was of course a man of substance, made so by his wits, and at the expense of the burghers of New-York.

That he was a strictly honest man, is quite certain; for his old master of the “black art” is known to have said, that when he paid him a secret visit, and suggested the propriety of manufacturing a few certificates of shares, to meet the urgency of demand, Jacob replied, that “if detected it would spoil the profits of his trade, and therefore, in honor, he could not consent to the proposal.”

He honestly paid his debts, also, for the same reason, and as a man of public spirit, lent his means to assist in building the “old jail,” to confine all those rogues in, who could not pay theirs.

PRINCIPLES OF TRADE.

To be sure, he acted on the principle that there is no friendship in trade, and that a bargain is a bargain, however made, and must be fulfilled. What if his customers did pay him a commission? he sold only his services, not his wits; and them he had a right to use for his own benefit. He had long since learned, in his profession of the “black art,” that the measure of success depended on the closeness of his secret, and if people did not know his arts, he thought it but right that they should pay for being amused by them; and following this mode of reasoning, in the scale of progression upward to the higher sciences, he judged rightly, “that if people were ignorant they must pay for instruction.”

MORAL REFLECTIONS.

Skilfulness in trade was, in his opinion, justly placed at the head of moral science, of which he had now become a professor; and why should he be expected to impart what he knew without a “quid pro quo?” Not he; but rather following the plain dictates of wisdom, he would learn all he could, and impart nothing.

If he knew better how to make a bargain than his customers did, that was their fault, not his. People should look before they leap, and look too with their own eyes, not attempt to borrow his; they should know his mode of business before they came to him; not come and complain afterwards.

These reflections while they clearly show the astuteness of his mind, also suggest the reasons why stock rose rapidly; and point out the means by which Mr. Broker pocketed nearly all the advance himself,—without ever retaining more than ten shares in his hands at any one time.

In time Mr. Broker became a sage, and, as a fruit of his wisdom, left behind him a code of laws which have ever since been the standard of Wall-street.

VIRTUE OF CORPORATIONS.

We shall have frequent occasion to refer to points in this code, but, for the present, will only mention, that he improved upon the great Lacedemonian, who is said to have made a law that placed the crime of stealing only in detection—Mr. Broker placed it only in the punishment. It was of no consequence that a man should be found out in his roguery—that only established his character for shrewdness—a word of modern coinage, which some silly and old fashioned people have supposed to be, only a mitigated term for dishonesty. He never became a criminal until the law reached him with punishment; and the merit of his character, as well as the measure of his success, depended entirely on the length he could go, and the frequency of his exploits, and still escape the lash of the law.—And herein is seen the peculiar virtue and particular wisdom of those contrivances called Corporations, and Joint Stock Companies, of which Mr. Broker was a great encourager. An ingenious device, wherein an imaginary body alone is made accountable for the acts of its members; while the real actors may hide behind it, as long as it has power to protect them, and scamper off without fear, when it has not. It has also this peculiar property, that, when the directors have taken to their heels, like the ignis-fatuus, the farther you pursue it the farther it recedes; and he who follows it long will, very likely, get stuck in the swamp from whose foul vapours it has been generated: and, at most, if fairly got hold of, it is never found to consist of any thing more than a worthless bit of parchment.

DISCOVERY IN NATURAL HISTORY.

We have said that Mr. Broker was a man of universal genius. In proof of which, he essentially improved the vocabulary of English; and in two particulars, conclusively shew that Johnson and Buffon are in error, viz.—that a Bear means a man who has no shares in the Stocks—one stripped—in an em-bar-assed condition, and that a Bull means a man who has more shares than he can keep, and has gored his neighbour to procure them.

His was the first Broker’s office ever established in the city of New York; and from him have descended all the race of brokers which have since congregated in the region round about Wall Street. Whether his posterity have answered Dr. Johnson’s[2] definition of the word broker, viz: “A negotiator between two parties who contrives to cheat both,” will be seen in the course of this history.

SIMPLICITY OF THE GOVERNMENT.

When the gallant Col. Nicholls had, in the name of the crown of Great Britain, taken full possession of the city and territory of New Amsterdam, and bestowed upon it the name of his patron the Duke of York; by way of conciliating the Burghers, he left them undisturbed in all their civil and domestic privileges, without embarrassing them with the intricacies of British laws. And in those days of simple legislation, the government had not yet learned the way to purchase power, and make people dishonest, by selling corporate privileges. And demagogues had not yet learned to claim the monopoly, as a reward for their intrigues. Consequently, Mr. Single-Eye, and his coadjutors in the matter of the Wall-street Stock Company, had the power of fixing things all their own way; that is, they made all their own laws, rules, and regulations, without let or hindrance of any kind. And so ingeniously were they contrived, that, by their natural operation, the money which came in by subscription, all leaked out again exactly at the right place and at the right time. Since that time, the wisdom of the Legislators of most of the states has decreed, that people shall not associate in bodies for purposes of roguery, without first buying a licence; and, under the name of Charters, they will sell licences to cheat the public, as the Pope sells plenary indulgences, to replenish a wasted Treasury, (vide the great state of Pennsylvania and the U. S. Bank.)

WHAT A DIRECTOR SHOULD BE.

It is worthy of remark and imitation, that neither the president nor the cashier of the Wall-street Stock Company ever ran away with a dollar of their money; so rigid a surveillance did Mr. Single-Eye keep over its affairs. Although nothing but a director himself, he held the true doctrine, that directors should really be the head of an institution, and that the president and cashier were merely heads of the clerks. Mr. Single-Eye was moreover of opinion, that it was better for a director to hustle the money into his own pocket, and make sure of the gain, than to suffer another to do it, and incur the odium himself. To be sure, he was somewhat at variance with Mr. Broker on this point, but Single-Eye had the power, and there is nothing like that for enforcing a good reason.

DEGENERACY OF OUR DAYS.

And here I cannot forbear to remark on the degeneracy of these days, when directors so often give up all management to the presidents and cashiers, thus leading them into temptation, and provoking them to do that, which they might do themselves with greater safety, because they are less immediately responsible. Alas! how many men, with their families, have been ruined by this cruel lack of vigilance.

I should not have said so much on the origin of stock companies and brokers, but that I thought it necessary, to a more perfect understanding of what shall follow. Having said so much, it is proper that I should make known the fate of this first attempt at stock jobbing. And it is especially necessary that I should do so, for the benefit of those widows and orphans, who have any doubts about the entire safety of investing their little fortunes in the like securities.

Every body has read of the severe reproof once administered, by a Spanish lady, to a gentleman who complained of the indelicacy of their statuary. She told him that, had his own mind been pure, he would never have discovered indelicacy in what was “true to nature.”

STOCK COMPANIES.

It is well known that stock companies, such as banks, insurance companies, trust companies, and the like, are got up entirely by disinterested men, for the purpose of affording an opportunity for ladies of a “certain age,” widows, and orphans, to invest what little funds they have in safety, with the certainty of a moderate income. Accordingly, whenever a company is started, and the stock all subscribed for by the managers, this class of people are particularly favored, in being permitted to purchase some shares at a trifling premium of ten or fifteen per cent., and urged to take an interest before they shall go higher. And then, after two or three years’ refusal to make any dividend, for fear they might spend it imprudently, the same gentlemen who sold the stock, are willing to buy it back again at a discount of only fifty per cent.; and the poor spinster is perfectly satisfied of the safety of her investment, because, having once parted with the money, she can never get it back again. This class of stockholders are also particularly favored and acceptable, because they never want to borrow, and never find fault with the management; and if, by chance, they should suspect themselves to be badly used, a tear shed in secret is the only complaint they ever make.

EVIL TO HIM WHO EVIL THINKS.

I will lay it down as a rule, therefore, that whoever distrusts the integrity and good intentions of those gentlemen, who get up a stock company, and collect within its vaults the widow’s mite and the orphan’s support, is no better than the gentleman before alluded to, whose perversion of the luxuries of taste flowed from the impurity of his own mind.

A DIRECTOR A WEASLE.

Whenever any company is attempted to be established for purposes of public improvement, it is always a prerequisite of success, that in the programme, the expense should be set down at one half, and the profits and advantages at double—and this mode of stating things, although it varies from the actual result only three hundred per cent., is sure to convince, and the public will eagerly catch at the enterprise. The reason of this necessity is, that if the truth were told in the first place, there would be little chance for management in the stock, and none whatever of its being all taken up. But by this shrewd management, it generally happens that an original subscriber, after having paid up in full his subscription, and two or three assessments beyond, loses all confidence, and suffers all he has paid to be forfeited to the company, rather than pay more. Thus the original subscribers generally lose all their money; the stock is resold by the company to some new comer, and the company, in the end, collect a million capital upon a subscription of half that amount. And whoever subscribes to a new fashioned bank, or a railroad, and does not find the directors awake to this management, may hereafter say with truth that he has caught a weasle asleep—there being no other difference whatever in the vermin, than is expressed by the simple affixes bi and quadru.

Such was the character of Mr. Single-Eye, of the Wall-street Stock Company; and the number of similar institutions which now display their gilded signs there by the same means, can only be told by multiplying some of the numericals.

It so happened, however, that the Dutchmen, from their natural stupidity and ingratitude, as Mr. Single-Eye averred—but, as some suppose, from some lurking doubts of his virtue, and a spice of his own cunning—after having paid seventy-five per cent. premium for their stock, through the agency of Mr. Broker—could not be convinced of the propriety of paying more in the shape of assessments, notwithstanding Mr. Single-Eye, and his partners in the directorship, assured them that all was right, and that the money had all been properly expended.

COMMITTEE OF INVESTIGATION.

A committee of examination into the company’s affairs was therefore appointed; whereupon Mr. Single-Eye, being grieved at such indignity offered to his honor, took the “book of minutes” and walked off, leaving the Dutchmen in a state of “confusion worse confounded,” from which they never recovered: thereby establishing a precedent for the tragedy lately enacted in the Water Works Bank, in this city—wherein, if the directors of that institution had consulted the ancient chronicles, they would never have tried to cover their own delinquency, by a contemptible persecution of their late venerable cashier.

The committee of examination, without waiting to come to their senses, adjourned “sine die.” The city wall had been broken down, and its materials were all scattered about in delightful confusion. A complete inroad had been made on the hitherto peaceful and happy homes of the Dutchmen. They had lost all the money invested in the company, with the melancholy satisfaction that it would cost them as much more to clear away the rubbish; and the street was left to the slow progress of time, to assume its present magnificent appearance.

HONORABLE END OF SINGLE-EYE.

It is remarkable, that such fatal results to the first experiment, should not have proved a death blow to all similar enterprises in future. But the Dutchmen overcame their misfortunes by patience and industry. The memory of their wrongs was all washed away by the soothing lethe of time, and their follies were all buried in the deep dark valley of the land of forgetfulness. Mr. Single-Eye, and Mr. Broker, ever afterwards fared sumptuously every day. They lived long and died lamented; and the tablet to their memory, lately removed from the Garden-street church yard, was inscribed with this motto: “Money is good, fame is good, but to know how to improve the follies of others is better than either.” And their descendants, learning wisdom from this law, have ever since continued to follow their example.

THE MORRISON KENNEL.

And now, my dear readers, having initiated you into the origin of stock companies and brokers, as well as the phrase and practice of Wall-street, in my next chapter I will give you the history of the “Morrison Kennel”—a company that has exhibited so many of the phases of human nature, that some have said that “old Nick” must have had a hand in it. If you expect that the dogs of this Kennel will prove to be hounds, I will tell you beforehand, that they are the veriest puppies in cowardice, treachery, and meanness, while they are perfect wolves in voracity; as will be proved by the perfectly denuded bones of the dead but stall-fed ass, which they have just forsaken.

If any one is curious to know from whence I got all this information, I will tell him. I received it from a venerable chronicler of the age, who has the old manuscript in his possession, and who now visits Wall-street daily to mark the passing events. He has agreed to meet me there every day for a week, where he will reveal to me the history aforesaid, and such other matters as his experience and observation may suggest.

CHAPTER II.

THE HISTORY OF THE MORRISON KENNEL—NICHOLAS THE 1ST—A STOCK SPECULATION, &C.

It is a pleasure which comes gratefully home to the heart, when contemplating the picture of human life, in whatever grade of society or condition we view it, amongst the multitude that flit by us, occasionally to see a being that stands out in bold and bright relief to its dark shades.

On the second day of my visit to Wall-street, while sitting with my venerable friend, the old gentleman, pointing to the street asked, “do you see that man.”—“Yes,” I answered, “and I know him; he is a man of honor, such as honor should be considered,—one of nature’s noblemen; his word is as good as his bond, and his friendship is better than either. He pays his debts because he promises, lends to oblige his neighbor, and gives to benefit the receiver—he tells the truth because it is right, and cheats nobody because it would be wrong. He has gradually risen in wealth and credit, has the confidence of every body, and amidst all the slime and filth that surround him, his character stands untouched and unsullied by its poison.”

ONE HONEST MAN IN WALL-STREET.

He may be seen every day, at half past ten, going to the stock exchange, with a book under his arm; and may be known by the breadth of his foot, the swing of his legs, and the weight of his bottom. He will occasionally appear in the course of this history, under the name of Mr. Bottomly, and I hope his conduct will vindicate my description of his character.

The old gentleman heard my remarks with apparent consent and pleasure, which were indicated by a smile of satisfaction peculiar to himself; but my silence was immediately commanded by a significant nod, with a gesture of the hand, as much as to say “there are some things however in Wall-street, which I know better than you do,” and he then proceeded, agreeably to promise, to relate the history of the Morrison Kennel.

THE VALUE OF A NAME.

The garrulity peculiar to men of his age, must excuse the frequent introduction of remarks foreign to the narrative; and when I tell my readers, that my friend is a man of deep reflection and high toned moral sentiment, as well as acute observation, they will not be surprised at his occasional illustration of fact by reference to principle.

“The practice of the aborigines of this country,” said he, “of giving names to men and things, indicative of their qualities and exploits, is well considered savage. Since the day when the poet first propounded the question ‘what’s in a name?’ mere moralists have been at fault. But modern practical skill has discovered that there is much; and it was left for the originators of the Morrison Kennel, to find out the best use that could be made of it, viz: that it may be made to cover one purpose under color of another—may gain credit for what it is not, and shield from detection what it really is, or may gull a State with the promise of improvement, and cheat the people of their money for their credulity. In short, the advantages to a stock company of a judicious choice of a name, are incalculable; not the least of which arises from properly compounding it, so as to mean more things than one, as the Morrison Kennel and Banking Company. One peculiar advantage of this last is, that as the projectors are not always certain what they will do, but intend to be governed by their success, they are thereby enabled to shift their course to suit the breeze.”

WHY THIS WAS CALLED KENNEL.

“This company would probably never have attained the soubriquet of Kennel, a mere play upon the original sound, but for the remarkable financial talents of Nicholas the 1st, profanely called old Nick, in the first place, and its employment afterwards to help to hold up the sides of the great bull dog of Pennsylvania, ycleped the U. S. Bank, who had grown so weak from disease, that it was feared, without such aid, his attempt to bark, would prove a concussion of air from the wrong orifice. In other words it was feared, that without collateral support, the first resumption would not last as long as the second did.

“The circumstances which called into activity the financial talents of Nicholas, deserve a particular notice, as they have an important bearing on this history. And for that purpose, I must introduce to you a gentleman well known in Wall-street; of amiable disposition, gentlemanly deportment and honorable connections. His person may be known from his resemblance to king Saul, being taller, by the head, than any of his tribe of brokers, and, as he bears the appellative of an immortalized Friend, and the signification will be descriptive of his character, I will call him Mr. Friendly.”

MR. FRIENDLY AND HIS APPETITE.

“The only thing remarkable about this gentleman is, his extraordinary appetite; from which, taken with his slender proportions, it has been inferred by some, that, like the bird most avoided by sportsmen, his alimentary canal consists only of a straight passage; for he has been known to gorge and digest more stocks in one day, than the weight or bulk of his whole body in the certificates.”

FRIENDLY’S CAUTION.

“With this introduction of a part of the ‘dramatis personæ,’—having already described, with some particularity, the motive for, and the manner of, getting up stock companies, with such parts of their general management as can be interesting to the public—I will commence with the Morrison Kennel, at that point when the causes for the activity before alluded to commenced, viz: precisely at that time, when the directors had expended the whole amount of capital subscribed, together with a loan of seven hundred thousand dollars obtained in Holland, in digging a ditch through the State of New Jersey, which served little other purpose than to drown the Jersey farmers’ pigs—without any one of the said directors having cleared more than fifty thousand dollars out of the company, by means of contracts or otherwise—when their credit was exhausted, the stock reduced in market to one fifth its original cost, and the directors ready, on the first symptom of alarm, to take to their heels for safety. Then, fortunately for them, Mr. Friendly, desirous of improving his fortune, which at this time he found to be in rather a waning condition, formed a scheme of speculation in the stock, commensurate with the vastness of his own desires; and, with this view, he began with the caution and finesse of one who has a game to play. He first ascertained that some of the directors were still in possession of a considerable amount of the stock; whom he could, very probably, draw to his own interest by endeavoring to aid them; and he then proceeded to the office of Mr. Bottomly.”

CALLS ON BOTTOMLY.

“Good morning, John,” said he, “how are you?”

“Pretty well Dan, how are you?”

“Hard up.”

“Hard up,” eh!—“No cornering, I hope”—“No,”—“dull times, no movements, things are paralysed, very much.”

Mr. Friendly wished, and was therefore pleased, to find his neighbor alone. So he sat down without ceremony. And after a variety of common place remarks, he at length arrived at the point where he should unburthen himself of his subject. His object was to enlist Mr. Bottomly in his proposed speculation, and thereby secure his means, his influence, and his interest in its favor.

“John,” said he, “the Morrison stock is very low, what do you think of it?”

“That it sells for more than it is worth.”

“That may be, but a thing is worth what it will bring.”

“The seller always thinks so, but the buyer sometimes finds that he has paid too dear for the whistle.”

TWO WISE HEADS TOGETHER.

“What would you think, John, to see the Morrison at 75.”

“I should think very strange.”

“Stranger things have happened though, John. I have a mind to move in the Morrison, what say you to join me?”

“What do you propose?”

“Why, you have the means,—the stock may be had at twenty, and a hundred thousand dollars would control the whole of it. It must be done quietly; and then by contracting on time we should have the power to deliver without loss when we sold; and by making three contracts to receive to one to deliver, we can make them pay whatever difference we choose.”

“That would be too much power to get in our hands, Dan, would it not?”

“True, it would not answer to trust every man with so much; but in your hands and mine, I think we would not abuse it.”

“What amount of exaction do you think would be an abuse of such power?”

“Why, it would be wrong to take more than two hundred per cent. profit, unless we got hold of some one who could well afford it.”

“But that would be using force to appropriate other people’s money to our own use. I think it would not be justifiable.”

PLAN CHANGED.

Mr. Friendly, though not devoid of sound sense and a good judgment, usually suffered his eagerness for speculation to blind his mind to every probable result but the glitter of gain. He had never looked on the subject in this light before. He intended nothing but a “fair business transaction,” and was desirous that his friend Bottomly should share in its success. His mind revolted at doing a positive wrong; he therefore abandoned his plan, but adopted another on the instant, which though less culpable on his part, was in the end productive of an equal degree of evil. Always quick and decided in his actions, he said “well John, you are always right-minded, though you are sometimes wrong headed, we will say no more of this plan for the present; but I think well of a speculation, and therefore you shall buy me five hundred shares to day at ‘the board,’ I will send you in a check for ‘ten up,’ and the rest we will arrange to-morrow.”

THE BANK PARLOR.

Having decided upon his plan of action, Mr. Friendly then immediately, sought the directors who held stock. Fortunately he found them all in the bank parlour. They had just been talking over the affairs of the company, I will not say that they had been discussing its affairs, for their conversation was like any thing else but a discussion, and consisted of sundry expletives directed principally against their predecessors in office. And here let it be remembered, that those gentlemen, whose ambition had led them to desire such a post of honor, were but newly installed in their places. And, having purchased stock to procure their election, with knowing but very little about the real state of the company’s affairs, they were now unable to get rid of it, and were lamenting their folly and cursing the authors of it. For be it known, that their ambition and vanity had been stimulated by their predecessors before the election, to induce those gentlemen to seek a post which they wished to abandon themselves, knowing that sooner or later it would disgrace them.

Mr. Friendly disclosed his errand at once, and was well received.

EAVESDROPPERS.

He said he was apprised of a speculation going on in the stock of the Morrison; he intended to embark in it—wished them to hold back their stock, and aid his views in effecting a rise, and he would aid them in disposing of theirs at the right time. He did not tell them that he was the sole author of the speculation; he modestly forebore that, under the plea that he did not feel at liberty to tell all that he knew. But the directors were almost immediately confirmed in their good opinion of his knowledge and sagacity, as well as of his intention to do them a service, by hearing of the large purchases of Mr. Bottomly, at a considerable advance on the previous market value.

It is curious, as well as amusing, to see how many and how slight causes sometimes tend to aid or to frustrate a speculator in his designs.

There is a set of proscribed men in Wall-street, who were once brokers, professionally, and are now broken in reputation, credit and finances—having no means but what they have kept from their creditors, and—being expelled from the exchange board for defalcation or bad conduct—they still linger round their old haunts, and carry on a system of gambling in what are termed fancy stocks, through which they contrive occasionally to entrap and empty the purse of some newcomer, or filch each other of their ill retained means, until each in his turn gets placed on the “black list,” which is the final seal of reprobation, and in Wall-street signifies—“that whoever deals with that man, shall himself not be dealt with by any one.”

EAVESDROPPERS.

These gentry may be seen, daily, in squads of three, four, and five, standing on the side walks, or on the steps of the large offices, talking vociferously, and making such bids and offers in the funds, as that one not knowing better, would suppose that each held the finances of the country in his palm.

One of them, whom I will call Mr. Eavesdropper, had his ear timidly placed at the key hole of the Stock Exchange, and heard Mr. Bottomly’s bids for Morrison, which instantly infused such courage into his mind, and activity into his limbs, that he went out, and before the transactions of the board were publicly known, he had privately contracted for the delivery of a large number of shares; and then, to aid his purpose in effecting a further rise, gave out that he was in confidence with John Jacob Astor, or some one no less powerful, who had determined to buy up the whole company.

MR. SPRIGGINS.

As soon as Mr. Friendly had returned to his office from the meeting of the Board of Brokers, on the day I am speaking of, and, as is common, had laid open on his outer desk, for public inspection, the record of the transactions which had there taken place—in which he had carefully noted all those in the stock of the Morrison—he walked out into the street, where he encountered Mr. Spriggins, who, contrary to his wont, for some cause, had not been present at the board that morning.

Mr. Spriggins is one of those gentlemen, whose conceit of himself supplies the place of education, manners, and intellect, and he accosted Mr. Friendly as follows:

“Dan, what does all this speculation in the Morrison mean?”

Mr. Friendly, whose polite manners encouraged the freedom of such men as his friend Bottomly, held in contempt the rudeness of impudence, and, instead of answering Spriggins, turned on his heel without noticing him.

THE FEVER UP.

Spriggins, who could never imagine the existence of such a feeling towards a gentleman like himself, attributed this treatment entirely to another motive; and knowing Mr. Friendly’s speculative character, he at once imagined that Friendly had a secret that he wished to keep, and improve for his own benefit, and he immediately resolved in his own mind to outwit him. Upon this impulse he hurried away to purchase all the Morrison stock he could get hold of—which he did at a large advance of price over the purchases of Mr. Bottomly; and when he had done so, exultingly told Mr. Friendly that he was “not to be come over.” “But never mind,” said he, “you can keep your secret now, Dan; but if you are so disposed, as you know what is going on, we will operate together.”

Mr. Friendly was not disposed to embrace this offer, liberal as it was, and maintained such a reserve as excited still further the cupidity of Spriggins. Meantime, having heard of the operations of Eavesdropper, Mr. Friendly perceived that he had fairly put the match to a train that, if properly fed, would lead to an explosion. But he resolved that before it should happen, he would take good care of himself.

LOAFERS.

There is another set of men in Wall-street, which demand my description. They have neither trade nor profession of any kind, and if they ever had any, they have abandoned it. Some of them are of that class called Gentlemen, who have married fortunes and squandered them—some are broken merchants—some disgraced politicians—defunct post masters, &c. &c.,—and all of them are Loafers. They have neither wit enough to contrive, nor credit enough to carry out, a speculation: but when one has begun, like that I am now describing, they may be seen flocking in and out of the brokers’ offices—examining the stock books—talking wisely of the nation’s affairs—each one pretending to know more of finance than even Mr. Woodbury himself; and their exuberance of knowledge is almost as luminously exhibited. Like flies round a honey pot, each one is anxious for a sip, and according to his slender means, pledges a hundred dollars, more or less, and orders his broker to buy as many shares as he will upon this security. They thus materially aid the great speculators; but the result to themselves generally is, that their families or friends suffer precisely the amount they have risked—and so it was in this instance.

DEEP IN FOR IT.

Mr. Friendly continued to purchase largely of the Morrison stock, which increased the excitement, and continually advanced the price; and Mr. Spriggins, nettled by Friendly’s reserve towards him, continued to be a large purchaser also, and induced several of his friends to join him.

It ought to be observed here, that these purchases were generally made “on time:” that is, the stock was agreed to be delivered at a future day. And it so happened that when Spriggins was the buyer, Mr. Friendly was generally the seller, through some other persons, as his agents; and he had taken care so to provide himself with stock, that he could meet his contracts on time—not only without the danger of loss, but with a certain profit.

HOW SOME PEOPLE NEGOTIATE LOANS.

So long as the stock maintained the very high price to which it had now advanced, all was well; but the time must come, when it would not, and then, there was danger that Spriggins, and his compatriots in the speculation, would not be able to fulfill their engagements. Mr. Friendly, therefore, as a stimulant to the action of Spriggins, and to prepare for the denouement, hinted to him that, as the stock had now so much increased in value, probably Nicholas the 1st would loan money liberally upon it; and, as the stock must rise still more, such an accommodation would be very desirable, to enable one to hold it. He dropped this hint in such a way, as led Spriggins to believe that he intended to make the application for himself. He had really, however, no intention of asking such a favor, for such a purpose, but he knew well what the effect of such a suggestion would be with Spriggins, and—as he expected—the dapper gentleman immediately started, post haste, for Philadelphia, and succeeded in obtaining from Nicholas, the promise of a loan of one hundred and fifty thousand dollars, on stock of the Morrison, which, six weeks before, was not worth, in the market, one-fourth of that amount: that is, provided Mr. Spriggins would negotiate half a million of dollars of the bonds of the U. S. B., payable in twelve months from date; by which means, Nicholas cunningly foresaw, that, instead of lending Spriggins, he should himself be the borrower of no less a sum than three hundred and fifty thousand dollars. But those were palmy days of credit: the bonds were all negotiated with ease, and the Morrison stock transferred to Nicholas, as security for the loan, as fast as the greedy purchases of Mr. Spriggins could command the large amount necessary.

FRIENDLY’S PLAN CONSUMMATED.

Mr. Friendly now saw all his hopes about to be realized. By obtaining the control of a very large amount of the stock at 20 to 25 per cent. on the par, and stimulating the cupidity and self conceit of Spriggins, he constantly went on buying ten shares at an increased price, and always selling, through some one else, twenty shares to every ten that he bought, until he succeeded in throwing the whole stock upon Spriggins, and his associates, who, as we have seen, were supported by Nicholas, in their mad speculation. And, in less than four months from his first purchase, Mr. Friendly retired, with a clear profit of one hundred thousand dollars, and the eternal gratitude of the directors of the Morrison, whom he had assisted and relieved.

THE DIRECTORS STUCK FAST.

The directors of the Morrison rubbed their hands with glee, and treated Mr. Friendly with the greatest respect, when they found that they had got rid of all their stock, not only without loss, but at an enormous profit. But then came the affairs of the company, which were not a whit better now, than when the stock was depressed. In fact, they were every day growing worse—for the interest on their enormous loans, was now becoming due, and they had nothing to pay it with.

At a meeting of the board of directors, about the time we are speaking of, for purposes of business, they all sat in silence, for some minutes, looking at each other—each one wishing that his neighbor might propose some remedy—and their hearts sank within them, as each one successively uttered a desponding sigh at the poverty of his invention, or—what was still worse to get over—the poverty of their finances. At length, Mr. Faintheart proposed that they should all resign, and let the affairs of the company take care of themselves. This course—although so successfully practised some time afterwards by their successors in office—did not suit the taste of Mr. Hold-on; who said that “the public mind was not now prepared for such a movement. A few years more, and the people will be more enlightened, and will not expect directors to retain their seats when they have nothing to gain by doing so. But, if we desert them now, the thing will be looked into; we shall be accused of all the roguery that others before us have done—we shall be hunted like rats. My motto, therefore, is, ‘don’t give up the ship;’ and, as none of you propose a remedy, I suggest that, as Nicholas now holds a large amount of the stock, perhaps he will loan us a couple of hundred thousands, especially, if he is made to believe that it is wanted to finish our works of improvement, and that when they are finished it will improve the value of his stock fifty per cent.”

A WISE SUGGESTION—ITS RESULT.

The proposal was hailed with delight, and Mr. Hold-on was deputed to manage the negotiation, which he did with the same success, in the same manner, and on the same conditions, as did Mr. Spriggins.

This cunning device of Nicholas, always to be the borrower, when he appeared to lend, is altogether a modern invention, and was very successfully practised, a few years since, in an attempt to relieve the merchants of New-York, and which, some have wickedly said, was used to enable certain gentlemen to collect their private debts, and finally went to relieve Nicholas of his money, by throwing the same debts upon him. Be that as it may, it is universally admitted that Nicholas was the first inventor of a bank, whose business was to borrow, instead of lending, money.

OLD NICK’S SHREWDNESS.

By these master strokes of policy, Nicholas came into possession of a claim of two hundred thousand dollars against the Morrison, and held an equal amount of their stock, both which in six months afterwards he found to be not worth a farthing. To these circumstances it was owing, that, through his influence, the Morrison Kennel was afterwards revived with great splendor, and scenes were enacted, which, though they have caused many a tear of grief to flow, will, I hope, not fail to excite your laughter by their relation.

My venerable friend here excused himself on account of fatigue, but with the assurance that, at our next meeting, he would introduce me to some new and original characters, and also tell me about the negotiation of a great state loan—how the directors of the Morrison helped to nurse the great “bull dog” of Pennsylvania in his sickness, and how they all ran away, when they found he was likely to die, together with some account of his disease, and his last moments.

HOW THE OPERATORS CAME OUT.

If any one is curious to know what became of Messrs. Friendly, Spriggins, and Eavesdropper, after their figure in the Speculation, I will take this opportunity to tell them, that what has here been said is but a small part of the fame to which they are entitled; but it is my business only to show the results of such things as I have related.

Mr. Friendly, as all good men do, spent his money liberally and charitably. To a large circle, his house was the centre of politeness, elegance, and hospitality; but his insatiable appetite for speculation ruined him at last, as it does all others; at least, he is so far ruined, that until another speculation shall turn out like the Morrison, he will be content to practice economy. Mr. Spriggins set up his carriage on his anticipated profits, and was let down from it before his coachman had fairly mounted his livery; and report says that he has since done the same thing three times over. Mr. Eavesdropper ran wild with his first success, and, in the end, only arrived one stride nearer the “black list.” And exactly one hundred and forty others were made poorer than they were before, by the whole amount which they put at risk.

RESULTS OF GAMBLING.

If the mischiefs arising from this species of gambling were confined to those who set that kind of speculation on foot, or who make it the business of their lives, there would be nothing to lament. But such is not the fact. The whirlwind naturally sweeps everything within its influence, and over which it has power, to its centre. Hundreds, nay thousands, allured by the success of a few, are induced to embark in the rash adventure. They are unacquainted with the real character or causes of the fluctuations, and even if they are not ignorant, they are liable to be outwitted by some of the hundred minds that are continually plotting against them. Here is the fruitful source of all those defalcations of public officers—the purloining of money by officers, and clerks of institutions which have so much multiplied of late—inflicting misery on the families, and disgrace on the names of many a once honorable man.

GOOD LESSONS TO THOSE WHO WILL HEAR.

The business is showy and fascinating, its temptations subtle and alluring. Young and enterprising merchants embark in it, and find that they have lost their money and their credit, when it is too late to repent. The hard working mechanic embarks a few hundred dollars, and when he finds himself in debt and no means of paying, sees that he has been outwitted, and that, if others have made money, he has lost it. In fact that it is he, and others like him, who have assisted the successful to pocket his profits. Women yield up the savings of years to be invested in something, they know not what, and wail over their folly and their credulity, when all their bright hopes have faded into a worthless certificate. In fact it is only the loss sustained by such as these that enables the operators, as they are termed, to accumulate, or even to live by their business; for they could do neither the one nor the other within themselves. And it will be found to be a necessary consequence, that in all such speculations as that of which I have endeavored to give but too faithful a picture, if one is made rich, a hundred are made poor. In no country in the world, is the hazard of stock gambling, so great as in this, where there is such a multitude of stocks, based upon the schemes of individuals, and affected by the ever changing prosperity of our growing, yet comparatively unsettled condition; and where the capitals are often so small, that it is in the power of two or three designing individuals to raise them above, or depress them below, their real value, as may best suit their plans or their convenience, thus often destroying the sole dependence of the needy and helpless.

CHAPTER III.

STATE STOCKS—HISTORY OF THE MORRISON KENNEL CONTINUED—INTRODUCTION OF NEW CHARACTERS—THE U. S. BANK, &C.

BUBBLES.

Among the many schemes of finance that have disgraced our country, and been fruitful sources of peculation, deserving the severe censure of justice, and the ridicule of wit, there are none more prominent than the bubble of state stocks. Time was when that name had a signification of value; but a new era is now upon us, the end of which, “is not yet.” The character of our western population is one of hardy enterprise, and great intelligence in their own particular sphere; but by some strange fatuity they have overrated their credit, and in so doing, have overreached themselves. That confidence of a western man which induces him to believe that he can “whip his weight in wild cats,” is no vain boast, but the natural consequence of that hardihood, of vigor that comes of their spirit of enterprise; and it is not to be wondered at, that the thrift of their situation should inspire a similar confidence in other matters.

HOW WISE MEN HAVE BEEN DUPED.

But, until they can learn to take better care of their credit, and intrust the management of it to more skilful and experienced hands, they will never cease to be cheated and dishonored. The following detail by my venerable and facetious friend, of a negotiation for the sale of state bonds, would be true to life, if it were not too feebly described, for as I write only from recollection I find it impossible to do justice to his humor.

BUTTONING UP.

“Before,” said he, “I proceed to the story of the state bonds, I must first relate to you what changes took place in the Morrison.” As soon as the speculation detailed yesterday had ceased, and Mr. Friendly had fairly retired with his profits, the stock went down, down, down, and not a purchaser for a single share could be found at any price; and as soon as the whole class of small speculators perceived that they had been “stuck,” aware of the injury the little credit they possessed would sustain, if they were known to have met with a loss, they all shut their mouths, except, that each one pitied his neighbor; and strange as it may seem, not a man could be found in Wall-street, who confessed the ownership of a share; where three weeks before there were thousands. This is called “buttoning up,” and if any gentleman in a certain predicament was ever surprised by a bevy of ladies suddenly turning the corner, he will know something of the hurry felt, and the nonchalance assumed, on this occasion.

NICK’S TALENTS AND COURTESY.

Six months from the time when Nicholas made the loans before spoken of, he “found that the security was not worth a farthing.” If any one is surprised that he should have been so improvident of safety, they only need be told, that he is one of those men whose expansiveness of mind, and splendid talents were at home only in great things. He could grasp at millions, and sport with them as mere baubles; but the dull and dry detail of investigating trifles, was fit occupation only for meaner minds. And to the same splendid talents it was undoubtedly owing, that in passing into retirement, he was enabled to discover so much soundness and prosperity in the affairs of the U. S. Bank of Pennsylvania, when nobody else could, and that the stockholders of that institution, are so permanently fixed in an investment of a capital of 35 millions, that they will never get a dollar of it back again.

Nicholas, however, was a man of courtesy, and when on a visit to this city, condescended to call on the directors of the Morrison. The money borrowed by them, had been all expended; another instalment of interest was becoming due, and nothing provided to pay it with. He met them in the Bank parlor, with solemn faces, and like the Irishman’s owl, which he feigned to be a parrot, they spoke not, but were thinking very hard.

THE D——L NOT TO BE FEARED.

“Well gentlemen,” said he, “what is the matter?” Mr. Faintheart, always foremost to express discouragement, and always the last to aid in relief, immediately replied. Why Mr. B. the D——l is to pay, and we have no money. True, answered Nicholas, you owe me a good deal of money, but if that is all, it can no doubt be arranged.

Mr. Faintheart first blushed, then turned pale, rose from his seat, and his knees smote together, when he perceived that he had unluckily hit on the vulgar cognomen of Nicholas. Regarding the man with the highest veneration, and even with fear, and unable himself to comprehend, how so great a mind could exist, without more aid than falls to the lot of common mortals, he secretly believed the profane allusion to be a verity, and, in his fears, expecting a blow from the forked tail, that would annihilate him at once, he was fain to ensconce himself under the table. But perceiving that none of his comrades attempted to run away, and that Nicholas himself sat in “the armed chair, calm as a summer’s morning,” with a smile playing upon his countenance, benignant as benevolence herself, he was re-assured; the purple came to his nose again, and he stammered out, I beg pardon, I had no allusion to—to—you, sir.

“Sit down, Mr. Faintheart,” said Nicholas, “your wit amuses us.”

Mr. Faintheart sat down, but was unable sufficiently to master his disturbed, and mortified feelings, to utter another word.

EVERY MAN HAS HIS PRICE.

What further took place at this conference is not fully known, but it is generally understood that, by the advice and influence of Nicholas, it was then and there agreed, that, to revive the credit of the Morrison, it was best to have a new official organization, and to select for that purpose men of talent, shrewdness, property and credit. But as few such could be found who were willing to act, common scandal has affirmed, that resort was had to the principle, that “every man has his price,” and that sums as high as ten thousand dollars were paid, in more than one instance, to procure the requisite number, all of proper standing.

All this took place soon after the period we are speaking of, and if, by talent and shrewdness, is meant, the ability to obtain credit, when none is merited, and to know how to appropriate the avails to themselves, without incurring liability, with two or three honorable exceptions, the selection of officers was a judicious one. All these, however, were minor considerations, and when Nicholas saw his new friends installed, with a prospect of reviving the credit of the company, and not only recovering his debt, but obtaining a bolster also, to support the weary head of his great Pet, his ends were nearly answered. This was probably one of the encouragements which led to his famous letter of resignation; and, since the cotton speculation is now closed, and the commissions all realised, we must now leave him to enjoy his taste for literature, botany, and horticulture, on the banks of the Schuylkill.

FIGURES MAY BE MADE TO LIE.

A semi official statement of the affairs of the Morrison was now put forth. This also is a plan of modern invention, not called for of yore; and whenever it appears gratuitously, is always designed to support a false credit. Its success depends on such a classification, division, and subdivision of the items, that the figures will express the same things three or four times over. In this instance it was properly done, and accordingly, the stock and credit of the company were revived under its influence.

NEW CHARACTERS.

And now, said my friend, it is time I should make you acquainted with the gentlemen you saw this morning. The tall, spare, white haired gentleman, with a scooping form, a down-cast look, and a contriving countenance, is Mr. Bold Eno. You saw that he had an eye of fire; but it is only a spark struck from a heart of flint, and a conscience of steel. I have not much to say about him now, but he will figure by and by. The next is a gentleman of more noble presence, and less of the look of the d——l about him. His mouth is full of honied words, but if you believe them all, they will very likely prove “sweet to the taste but bitter in the belly.” His name is John-of-the-Field, which signifies that he is a great sportsman; but his sports are chiefly confined to shooting with the long gun. It has been said that he could shoot round a corner; but that is a slander upon the truth, and arose only from his dexterity, in always providing a corner, round which he can escape, whenever his favorite weapon throws wide of the mark. He is a lover of the arts, and his soul melts at the dulcet sounds of music. His politeness, and hospitality, can be measured only by his love of power; and his opinion of himself is, that to make him the “greatest and best” man alive, he needs only to have his own way.

A WESTERN FINANCIER.

The third gentleman, whose hat was a little slouched, and his coat not of the most modern cut, who measured as much space at one stride of his legs, as the other gentlemen measured at two, with his fist doubled in his glove, expressive of his determination, and his wrath, is Mr. Commissioner —— from the state of ——. In his early youth, he left the land of his fathers, the land of steady habits, where he had learned, (what every one learns there,) how to read and spell correctly, with the rudiments of Pike and Murray, and fearless and alone, treading the western wilderness in search of a more genial soil, he established himself, where now a flourishing city spreads out her next to queenly beauty. Of course he reapt golden fruits of his toil, and opinions of his sagacity; in short he became, not unworthily, a great man among them. The principal error of his mind, was, that being born in comparative poverty, and accustomed to matter of fact dealing, he regarded the stupendous bubbles of artificial credit and means, as all real, and the men who managed them, as all abounding in riches, and as honest as himself. He is now here, to see how far his improved knowledge of finance may enable him to correct his past errors of judgment.

DINING PRELIMINARY, &C.

Two or three years ago, this same gentleman came here, by the way of Philadelphia, being there recommended to the Morrison Kennel Company, and others, to negotiate the sale of two millions of dollars, in state bonds. On his arrival here, he made himself acquainted with all the characters here introduced, and was “dined” by each in turn, with a view to sound him as to his wishes and expectations.

The president of the company having been authorised to open preliminaries of negotiation with the commissioner, the board of directors was subsequently called together to hear the report; and, not to offend the dignity of any one, who may fancy he recognises his own character, I will abbreviate the names of those present, as follows, viz: The Prest. and Messrs. J. G. S. T. and W., directors; and when all had taken their seats, they proceeded to business, as follows:

DIRECTORS’S WIT AND CHAMPAGNE.

Prest. Gentlemen: in conformity with your request, I have attended to the duty imposed on me, and my report is—that in stubbornness, one Hoosier is more than a match for us all.

“Ha, ha, ha!” all around the board.

G. Well, in cunning how does he stand, Mr. President?

Prest. Simple as a doe.

T. Then he can’t escape, G., if we turn him over to you.

G. Leave off your jokes, T.; this is not a place for them. Mr. President, what says he to our proposal?

Prest. He likes it not; he wants more ready money than we possess—he won’t budge.

S. But, if we could get possession of the bonds, I think I could make a private advance.

T. (aside.) Yes, no doubt, and a private profit, too.

G. Does he object to our credit, Mr. President.

Prest. Not at all; he has the most perfect confidence; that was cared for at Philadelphia, before he came here.

J. Can’t we come over him with champagne?

PLANS, HARD NAMES, AND FLOORING.

T. If we had less sham here, I think it would be better.

J. But, it is our only chance; and, if we do not contrive to raise some active means soon, we shall never accomplish our designs.

T. And, if you are not quick about it, John-of-the-Field will outwit you all.

J. What says Mr. Bold Eno?

G. He is throwing cold water, and I suspect he is attacking our credit.

J. Tell the commissioner, then, that we will mortgage the Kennel to him.

G. But, it is mortgaged already.

S. No matter, tell him it is only for 700,000, and cost two millions and a half.

T. Yes, and you can tell what became of some of the money, eh?

S. Mr. T., you are impertinent; do you accuse me sir, at this board. Sir, you are a scoundrel.

Here Mr. T. brought round his right foot against the leg of the chair in which Mr. S., who sat next him, was balancing himself with offended dignity, and knocking it from under him, brought him to the floor, to the very sensible uneasiness of his crupper, for some time afterwards.

AVOID INDIVIDUAL LIABILITY.

Mr. S. was a man of courage, in words only; it therefore evaporated with what he had last spoken, and he dared not provoke his assailant any further.

Prest. Gentlemen, I must use my prerogative! order—gentlemen, order!

W. Gentlemen, this is not what I expected; I must retire.

T. Well, W., I’ll go with you; rogues must bear to be told the truth, without throwing back an insult, generally the best evidence of their guilt.

Messrs. W. and T. here retired, and the rest again took their seats.

Prest. Suppose, gentlemen, we send for Nicholas?

G. We are no longer dependant on him, and as it might eventuate in our individual liability, if we go forward in this thing, it is my opinion that it is the duty of the president to conduct the negotiation officially on behalf of the company, and I therefore move a vote of the board that he be directed accordingly.

Prest. Gentlemen, I have resigned one treasury department, sooner than do another man’s bidding, and shall decline the service; I like not this business much.

G. Suppose, then, gentlemen, that we resolve ourselves into a committee, and call the commissioner in to-morrow.

The proposal being agreed to, the board adjourned, and Mr. S. still suffering from the contusion of his lower spine, walked home with a gait much as he would have done, had he chanced to have made a rent in his nether integuments, on a windy day.

BREAKING UP—COLLOQUY.

As they went out, J. said, “Mr. G., look well that the commissioner has not another interview with Bold Eno.”

“Never fear,” answered G.; “I have provided employment for him.”

While these things were going on in the parlor of the Morrison, the commissioner sat in consultation with John-of-the-Field, and the following colloquy took place between them:

PALAVER.

John. Mr. Commissioner, your State is one of great resources, I think.

Com. Undoubtedly, sir; surpassing that of any other State in the Union; i. e. when they are fully developed.

John. And you are taking the right course for that purpose. The example of New-York, in internal improvements, has, by its success, given an impulse throughout the country. In point of locality, you far exceed us; but then, we have the capital here, which is our great advantage.

Com. Yes, sir, if we had the capital of New-York in the State of ——, to carry out our plans of public improvement, in twenty years from this, we should exceed her in population by a million.

John. Yes, Mr. Commissioner, and your soil is so fertile, that when they were completed, even the farmers of New-York would draw their supplies from you, through the lakes, the Erie canal, and the Erie railroad, which is now in progress, principally with that view.

Here John, perceiving a stare of surprise and doubt in the eye of the commissioner, added, “i. e. provided they could turn their lands to a better account, by the cultivation of products more congenial to the poverty of their soil.”

Com. The view taken of the subject by our legislature, is, that if we can borrow the capital now, to complete the works, the income from them will so increase, with the increase of products and population, that in twenty years they will pay the debt and interest, and leave a large revenue to the State ever afterwards.

FEELING HIS WAY.

John. I have always advised my friends to invest in the securities of the Western States, as being the safest they could make; and many of them are large capitalists, who frequently ask my advice in such matters. I think if I had the agency of all the Western States, in this market, I could save them a great deal of money in their negotiations. Their debts being only about forty millions, the management of them would relieve me from too much leisure, which I find rather irksome, since I retired from the active superintendance of a large institution here.

Com. Perhaps the best introduction to such an arrangement, would be, for you to take up the loan now offered.

John. Well, my investments, latterly, have been very large, which I would not like to disturb at present, but if it would accommodate you, I would take the matter of 300,000 dollars of the bonds, at par; but then, I should pay you 200,000 in the stock of the Long Island Railroad at par, and the balance in six months. This railroad is estimated to be the most promising stock in the country; and its friends are sanguine, that when completed, and in operation, the stock will be worth, at least, 250 per cent., and produce an interest of, at least, 20 per cent. per annum. The original capital was but 700,000, and with that capital, and the income of the portion already finished, say only about one-third the distance, the company has already expended one million and a half—i. e., including a small debt still outstanding. I would not part with the stock for any other purpose than to oblige you—being anxious to facilitate the interest of all the Western States.

Com. My object, sir, is ready funds; they are wanted for immediate disbursement, to about the amount you speak of; if that could be arranged, terms could be made for the balance.

JOHN OVERSHOOTS HIS MARK.

John. Well, Mr. Commissioner, if that is the object with you, I think I could arrange for 300,000, and give you Mississippi funds at par. The State would, of course, give me some additional security, and you would deposite the remainder of the 2,000,000 of the bonds with me for sale. My commission would be very reasonable.

Com. Why, sir, if the security of the whole State is not good, they have nothing else to offer. However, I will think of your offer of Mississippi funds. I have another call to make—so, good morning, sir.

As soon as the commissioner had left, John held this soliloquy with himself:

HIS SOLILOQUY THEREUPON.

“I am afraid I have overshot the mark. That asking security was a bad affair; but then, I am so in the habit of asking six or eight for one, hang me if I could resist it in this instance. The railroad stock, too: if he should inquire about it, ‘he’ll smoke me.’ Two hundred thousand dollars!—why, I’ve got but ten shares; but then, I could buy the rest at five dollars a share. A small debt they owe, indeed—ha, ha, ha. I have no doubt those they owe would be glad to make it small. A promising company!—yes, they promise every thing, and perform nothing. They will never divide one-twentieth of one per cent.; and then, the Mississippi funds, too—I wish I had said at a small discount, instead of par; and then I could have fixed it at one per cent., which certainly would have been small enough, for I can buy them at 30 off. Confound my avarice—I’ve made a miss-fire. The fellow is tame as a spaniel—but then, he’s no fool; how he stared, when I puffed his State; he didn’t believe me. If he talks about this, I’m ruined; but then, I’ll deny it all, when he’s gone.”

HIS GAME UP.

When the commissioner went out, he proceeded to the office of Mr. Bottomly, where, upon inquiry, he learned the truth, viz: that Mississippi funds were at 30 per cent. discount, and that Long Island Railroad was worth 5 dollars a share, instead of 100. Of course, all further negotiation with John ceased, and that gentleman was left to wait the arrival of a commissioner from some state still farther west, with whom his persuasive flattery, tempered by experience in its use, would be more effectual. And here I leave him, to the disposal of him, whom the State has adjudged to possess a wiser head than mine.

HOW TO “COME OVER” A MAN.

The commissioner, when he left the office of Mr. Bottomly, encountered Mr. G., who, as we have seen, had just left the parlor of the Morrison. G. seized him by the arm, and insisted that he should go home and dine with him. It was the intention of the commissioner, to have gone immediately to Mr. Bold Eno, whose advice he now began to consider a salvo against the tricks and managements of others; not in the least imagining that, should he once get in the clutches of that gentleman, it would be like escaping from the thievishness of apes, to throw himself into the embrace of a Bear. Such an interview was precisely what G. desired to prevent, and consequently, he was persuasive to a degree that common sense, in polite society, would denominate rudeness. The commissioner, who, in days gone by, had often urged the weary traveller to partake of the bounty of his board, or accept the shelter of his roof, and whose open heart and hand still made the luxuries of his table the common property of his friends, had no idea of such a perversion of the rights of hospitality, as a prostitution of them to the sordid purposes of interest. He was therefore persuaded; and once at home with G., he was there detained through the day and evening, and regaled with savory viands—“taste after taste with kindliest change upheld,” with flowing nectar, dulcet creams, and the sweet sounds of music, with beauty’s winning smiles, till his brain whirled with pleasure and delight.

GOOD EFFECTS OF HOSPITALITY.

It is not my business to record what further took place on that day and evening; how many friends accidentally came in, to enliven the scene, and how certain gentlemen, who were introduced to the commissioner, poured flattery into his ear. It is enough that the deed was done, and in the mind of the commissioner, the character of Mr. G. was established, as the most disinterested, polite, gentlemanly, agreeable, hospitable, and honest, of men; and to his guidance he therefore submitted himself.

On the following morning, agreeably to the preconcerted plan, the commissioner, having been notified, attended at the office of the Morrison, at the appointed hour: and, in the mean time, Messrs. G. and S. having agreed between themselves to raise the amount immediately wanted by the commissioner, little remained to be done. Terms were at once agreed upon—two millions of bonds were deposited in the vaults of the Morrison, and in a few days the commissioner started for the State of ——, with 250,000 dollars in good cash, and highly gratified with his reception and success. How much of the balance the State has ever received, the condition of their treasury will best explain. Certain it is, that the embarrassment, which, in more than one instance, has followed similar transactions, has been severely felt, and will be well remembered by our Western brethren.

A WORD ABOUT THE WEST.

And here—politics aside—a question may well be asked, which every man can answer for himself, so far as opinion goes. Have not the inexperience and inefficiency of some of their agents, and the villainy and irresponsibility of those with whom they have negotiated, contributed more to induce a proposition, in some of the States, to disgrace themselves by repudiating their debts, than any want of a proper sense of honor among the men of the West? If such is admitted to be the fact, it may, in some degree, excuse the rashness of their tempers; but whoever entertains such a proposition, after a moment’s reflection, would sell—not his own birth right—but his country and his kin for a morsel of bread.

THE BUBBLE WELL BLOWN.

To the uninitiated, it will seem a singular circumstance, that a company, without a dollar in their vaults, should undertake to loan two millions; but they forget the maxim, that credit is the life of business. This maxim formerly meant, that a credit, well sustained, gave success to enterprise—but by its misapplication and misuse, it has come to a different signification, viz: that the more one owes, the more he has to sport with; and it was precisely on this principle, that the Morrison Kennel contracted with the commissioner. It was only carrying out, in another shape, the invention of Nicholas—“always to be the borrower, when he appeared to lend.” They had now obtained possession of 2,000,000 of the bonds of the State of ——, by advancing only one eighth part of the amount. On the remainder, they could borrow largely, and they were now prepared to wing aloft a new flight; their gaseous inflation borne upward and onward by the breath of a fame of their own creation; and they were not long in choosing which way they should direct their course.

MYSTERIES LEFT UNEXPLAINED.

Some evil-minded people will perhaps begin to surmise that Nicholas was the master-moving spirit in this matter, and that he was artfully contriving to get his pay of the Morrison at the expense of some one else; perhaps of that nondescript body called the public. Only one thing, however, is certain; he did get his pay but as every story has a sequel, this will be found to have one also. If the Morrison did not lend him the State Bonds to support his own credit abroad, and then rally their own, by negotiating his bonds, appearances and common fame, whose poisoned breath we admit is no standard of truth, were certainly against them. On what principle matters were arranged between them, is not certainly known; but it is now matter of history that a system of issuing bonds, certificates, endorsing and counter endorsing, exchange and re-exchange, was adopted, by which they drew together a large amount of capital, and both became proud examples of the splendid results which a single inventive genius, like Fulton in steam, or Nicholas in finance, may produce. The affection existing between them was equalled only by the rivalry shown by each, in offices of kindness to the other.

CHARITY BEGINNING AT HOME.

The little responsibilities of endorsing or negotiating a million or two of bonds or certificates, were all undertaken and performed as mere offices of love. What if they were moved to such kindness by the promise, or the hope, of a reciprocal support? it but proves the excellence of their hearts, and the nearer approach to that command of the Master, that we “love our enemies,” and it is for such things only that we have reward. Their duty was to protect the commercial interests, of which they each considered themselves as the head; and, therefore, the first rule of propriety, and the first law of nature, imposed upon them the necessity of first taking care of themselves, individually, and their liberality in this respect cannot be too highly commended. They had a facility for raising money that other people had not, and duty required that they should enable their debtors to pay them; and if, in the accommodations necessarily granted for that purpose, the Morrison should lose a few hundred thousands, nobody would ever know how it had been lost. The stockholders, a vagabond race scattered over the face of the earth, whom nobody knows, would have to bear it; and, (aside,) perhaps they could screen themselves, and protect the Morrison, by throwing it all upon Nicholas, should things go wrong. After all, what was such a loss, compared with the importance and public benefit of supporting the commercial interest.

A CURE FOR HYPO.

It was not to be considered for a moment, and the wisdom of this conclusion was shortly made apparent in its effects. One gentleman is known to have recovered entirely from a nervous hypochondriacism, so severe, that his cheek blanched at the sight of his bill-book, and his rotund proportions shrank to the circumference of an eel, from the self-denial consequent upon poverty—or, what is more probable, the chagrin of disappointed ambition. But we are told that “the just shall inherit the earth,” and so it was in this instance; it having been affirmed, in vindication of this rule, that his reduced diameter, and assimilation to the animal aforesaid, enabled him to slide the easier between the sheriff and his conscience; and while his neighbors, one after another, were tumbling over the precipice of ruin, he was saved from being knocked down in their fall, by quietly reposing beneath the shade of the Morrison.

But I am growing too elaborate of description, and must bring this part of my story to a close. The subjects and material of the picture I am contemplating, are so numerous, and fruitful of thought, that it is difficult to decide which to choose, or where to stop; but the colors are too gross, and weary the eye and the mind. Besides, I hate to individualise, and must request my readers to bear in mind, that in the characters here described, nobody whatever is meant; and should they remember ever to have seen such a character as either of them, I must beg them to bury the memory of their follies beneath their more private and superior virtues, should they be found to have any; and if they are penitent, to throw the mantle of charity over the past, and screen them from the rude gaze of scrutiny.

CRISIS APPROACHING—NICK RETIRES.

The time was now fast approaching when the boluses administered by the Kennel physicians, could no longer support the weakened constitution of Pennsylvania’s great pet; and what was of more importance, in the opinion of the Kennel directors, his credit was no longer sufficient to support them.

Nicholas the first had retired from his charge, to fatten upon his laurels; Alas! that they should have faded so soon, and left him nothing but dry leaves whereon to feed his morbid appetite.

Mr. Done-up had succeeded to his place as chief physician; his patient had already suffered a relapse, and the symptoms were by no means favorable. His physicians recommended a more generous diet, but both shores of the Atlantic had already been dredged for dainties to satisfy his hungry maw. Yet still he grew more rabid, and would swallow at a gulp, what cost the labor of a year to procure.

SKULKING.

In this dilemma, the curs of the Morrison, perceiving that although they had paid the debt to Nicholas, contracted under the old direction, they had, in another shape, just doubled it under the new—that each of them had served his own purpose, and that not one of them owned a dollar in the Morrison or the U. S. B. they all resigned their seats, and scampered away to their dens; where, it is to be hoped, that, for the benefit of the coming generation, they will live and die in a good old age. And may God them assoil, the stockholders and creditors of the Morrison never will.

As I approach the conclusion of this chapter, my tale grows sadder, and still more sad. All created beings and things, which have beginning, must also have an end. Death lays his unpitying hand alike on man, and every monument of his greatness.

A TOUCH OF THE PATHETIC.