Chapter XLI: The Stock Exchange (2)

Goldsmid seems to have been a kind-hearted man, not so wholly absorbed in speculation and self as some of the more greedy and vulgar members of the Stock Exchange. One day Mr. Goldsmid observed his favourite waiter at the City of London Tavern very melancholy and abstracted. On being pressed, John confessed that he had just been arrested for a debt of L55, and that he was thinking over the misery of his wife and five children. Goldsmid instantly drew out his chequebook, and wrote a cheque for L100, the sight of which gladdened poor John's heart and brought tears into his eyes. On one occasion, after a carriage accident in Somersetshire, Goldsmid was carried to the house of a poor curate, and there attended for a fortnight with unremitting kindness. Six weeks after the millionaire's departure a letter came from Goldsmid to the curate, saying that, having contracted for a large Government loan, he (the writer) had put down the curate's name for L20,000 omnium. The poor curate, supposing some great outlay was expected from him for this share in the loan, wrote back to say that he had not L20,000, or even L20, in the world. By the next post came a letter enclosing the curate L1,500, the profit on selling out the L20,000 omnium, the premium having risen since the curate's name had been put down.

The vicissitudes of the Stock Exchange are like those of the gambling-table. A story is related specially illustrative of the rapid fortunes made in the old war-time, when the funds ran up and down every time Napoleon mounted his horse. Mr. F., afterwards proprietor of one of the largest estates in the county of Middlesex, had lost a fortune on the Stock Exchange, and had, in due course, been ruthlessly gibbeted on the cruel black board. In a frenzy, as he passed London Bridge, contemplating suicide, F. threw the last shilling he had in the world over the parapet into the water. Just at that moment some one seized him by the hand. It was a French ensign. He was full of a great battle that had been fought (Waterloo), which had just annihilated Bonaparte, and would restore the Bourbons. The French ambassador had told him only an hour before. A gleam of hope, turning the black board white, arose before the miserable man. He hurried off to a firm on the Stock Exchange, and offered most important news on condition that he should receive half of whatever profits they might realise by the operation. He told them of Waterloo. They rushed into the market, and purchased Consols to a large amount. In the meantime F., sharpened by misfortune, instantly proceeded to another firm, and made a second offer, which was also accepted. There were two partners, and the keenest of them whispered the other not to let F. out of his sight, while he sent brokers to purchase Consols. He might tell some one else. Lunch was then brought in, and the key turned on them. Presently the partner returned, red and seething, from the Stock Exchange. Most unaccountably Consols had gone up 3 per cent., and he was afraid to purchase. But F. urged the importance of the victory, and declared the funds would soon rise 10 or 12 per cent. The partners, persuaded, made immense purchases. The day the news of Waterloo arrived the funds rose 15 per cent., the greatest rise they were ever known to experience; and F.'s share of the profits from the two houses in one day exceeded L100,000. He returned next day to the Stock Exchange, and soon, amassed a large fortune; he then wisely purchased an estate, and left the funds alone for ever.

Some terrible failures occurred in the Stock Exchange during the Spanish panic of 1835. A few facts connected with this disastrous time will serve excellently to illustrate the effects of such reactions among the speculators in stocks. A decline of 20 or 30 per cent. in the Peninsular securities within a week or ten days ruined many of the members. They, like card houses in a puff of wind, brought down others; so that in one short month the greater part of the Stock Exchange had fallen into difficulties. The failure of principals out of doors, who had large differences to pay, caused much of this trouble to the brokers. Men with limited means had plunged into what they considered a certain speculation, and when pay-day arrived and the account was against them, they were obliged to confess their inability to scrape together the required funds. For instance, at the time Zumalacarregui was expected to die, a principal, a person who could not command more than L1,000, "stood," as the Stock Exchange phrase runs, to make a "pot of money" by the event. He speculated heavily, and had the Spanish partisan general good-naturedly died during the account, the commercial gambler would have certainly netted nearly L40,000. The general, however, obstinately delayed his death till the next week, and by that time the speculator was ruined, and all he had sold. Many of the dishonest speculators whose names figured on the black board in 1835 had been "bulls" of Spanish stock. When the market gave way and prices fell, the principals attempted to put off the evil day, says a writer of the period, by "carrying over instead of closing their accounts." The weather, however, grew only the more stormy, and at last, when payment could no longer be evaded, they coolly turned round, and with brazen faces refused, although some of them were able to adjust the balances which their luckless brokers exhibited against them. Now a broker is obliged either to make good his principal's losses from his own pocket, or be declared a defaulter and expelled the Stock Exchange. This rule often presses heavily, says an authority on the subject, on honest but not over-opulent brokers, who transact business for other persons, and become liable if they turn out either insolvent or rogues. Brokers are in most cases careful in the choice of principals if they speculate largely, and often adopt the prudent and very justifiable plan of having a certain amount of stock deposited in their "strong box" as security before any important business is undertaken. Every principal who dabbles in rickety stock without a certain reserve as a security is set down by most men as little better than a swindler.

During the rumours of war which prevailed in October, 1840, shortly before the fall of the Thiers administration in France, the fluctuations in Consols were as much as 4 per cent. The result was great ruin to speculators. The speculators for the rise--the "bulls," in fact--of L400,000 Consols sustained a loss of from L10,000 to L15,000, for which more than one broker found it necessary, for sustaining his credit, to pay.

The railway mania produced many changes in the Stock Exchange. The share market, which previously had been occupied by only four or five brokers and a number of small jobbers, now became a focus of vast business. Certain brokers, it is said, made L3,000 or L4,000 a day by their business. One fortunate man outside the house, who held largely of Churnett Valley scrip before the sanction of the Board of Trade was procured, sold at the best price directly the announcement was made, and netted by that _coup_ L27,000. The "Alley men" wrote letters for shares, and when the allotments were obtained made some 10s. on each share. Some of these "dabblers" are known to have made only fifty farthings of fifty shares of a railway now the first in the kingdom. The sellers of letters used to meet in the Royal Exchange before business hours, till the beadle had at last to drive them away to make room for the merchants. There is a story told of an "Alley man" during the mania contriving to sell some rotten shares by bowing to Sir Isaac Goldsmid in the presence of his victim. Sir Isaac returned the bow, and the victim at once believed in the respectability of the gay deceiver.

With the single exception of Mr. David Ricardo, the celebrated political economist, says Mr. Grant, there are few names of any literary distinction connected with the Stock Exchange. Mr. Ricardo is said to have amassed his immense fortune by a scrupulous attention to his own golden rules:--

"Never refuse an option when you can get it;
Cut short your losses;
Let your profits run on."

By the second rule, which, like the rest, is strictly technical, Mr. Ricardo meant that purchasers of stock ought to re-sell immediately prices fell. By the third he meant that when a person held stock and prices were rising, he ought not to sell until prices had reached their highest, and were beginning to fall.

Gentlemen of the Stock Exchange are rough with intruders. A few years since, says a writer in the _City Press_, an excellent clergyman of my acquaintance, who had not quite mastered the Christian philosophy of turning the right cheek to those who smote the left, had business in the City, and being anxious to see his broker, strayed into the Stock Exchange, in utter ignorance of the great liberty he was committing. Instantly known as an interloper, he was surrounded and hustled by some dozen of the members. "What did he want?" "How dared he to intrude there?"

"I wish to speak with a member, Mr. A----, and was not aware it was against the rules to enter the building."

"Then we'll make you aware for the future," said a coarse but iron-fisted jobber, prepared to suit the action to the word.

My friend disengaged himself as far as possible, and speaking in a calm but authoritative tone, said, "Sirs, I am quite sure you do not mean to insult, in my person, a minister of the Church of England; but take notice, the first man who dares to molest me shall feel the weight of my fist, which is not a light one. Stand by, and let me leave this inhospitable place." They did stand by, and he rushed into the street without sustaining any actual violence.

Practical joking, says an _habitue_, relieves the excitement of this feverish gambling. The stockbrokers indulge in practical jokes which would be hardly excusable in a schoolboy. No member can wear a new hat in the arena of bulls and bears without being tormented, and his chapeau irrecoverably spoiled. A new coat cannot be worn without peril; it is almost certain to be ticketed "Moses and Son--dear at 18s. 6d." The pounce-box is a formidable missile, and frequently nearly blinds the unwary. As P. passes K.'s desk, the latter slily extends his foot in order to trip him up; and when K. rises from his stool, he finds his coat-tail pinned to the cushion, and is likely to lose a portion of it before he is extricated. Yet these men are capable of extreme liberality. Some years ago knocking off hats and chalking one another's backs was a favourite amusement on the Stock Exchange, as a vent for surplus excitement, and on the 5th of November a cart-load of crackers was let off during the day, to the destruction of coats. The cry when a stranger is detected is "Fourteen hundred," and the usual test question is, "Will you purchase any new Navy Five per Cents., sir?" The moment after a rough hand drives the novice's hat over his nose, and he is spun from one to another; his coat-tails are often torn off, and he is then jostled into the street. There have been cases, however, where the jobbers have caught a Tartar, who, after half-strangling one and knocking down two or three more, has fairly fought his way out, pretty well unscathed, all but his hat.

The amount of business done at the Stock Exchange in a day is enormous. In a few hours property, including time bargains, to the amount of L10,000,000, has changed hands. Rothschild is known in one day to have made purchases to the extent of L4,000,000. This great speculator never appeared on the Stock Exchange himself, and on special occasions he always employed a new set of brokers to buy or sell. The boldest attempt ever made to overthrow the power of Rothschild in the money market was that made by a Mr. H. He was the son of a wealthy country banker, with money-stock in his own name, though it was really his father's, to the extent of L50,000. He began by buying, as openly as possible, and selling out again to a very large amount in a very short period of time. About this time Consols were as high as 96 or 97, and there were signs of a coming panic. Mr. H. determined to depress the market, and carry on war against Rothschild, the leader of the "bulls." He now struck out a bold game. He bought L200,000 in Consols at 96, and at once offered any part of L100,000 at 94, and at once found purchasers. He then offered more at 93, 92, and eventually as low as 90. The next day he brought them down to 74; a run on the Bank of England began, which almost exhausted it of its specie. He then purchased to a large extent, so that when the reaction took place, the daring adventurer found his gains had exceeded L100,000. Two years after he had another "operation," but Rothschild, guessing his plan, laid a trap, into which he fell, and the day after his name was up on the black board. It was then discovered that the original L50,000 money-stock had been in reality his father's. A deputation from the committee waited upon Mr. H. immediately after his failure, and quietly suggested to him an immediate sale of his furniture and the mortgage of an annuity settled on his wife. He, furious at this, rang the bell for his footman, and ordered him to show the deputation down stairs. He swore at the treatment that he had received, and said, "As for you, you vagabond, 'My son Jack' (the nickname of the spokesman), who has had the audacity to make me such a proposal, if you don't hurry down stairs I'll pitch you out of window."

Nicknames are of frequent occurrence on the Stock Exchange. "My son Jack" we have just mentioned. Another was known as "The Lady's Broker," in consequence of being employed in an unfortunate speculation by a lady who had ventured without the knowledge of her husband. The husband refused to pay a farthing, and the broker, to save himself from the black board, divulged the name of the lady who was unable to meet her obligations.

It is a fact not generally known, says a writer on the subject, that by one of the regulations of the Stock Exchange, any person purchasing stock in the funds, or any of the public companies, has a right to demand of the seller as many transfers as there are even thousand pounds in the amount bought. Suppose, for instance, that any person were to purchase L10,000 stock, then, instead of having the whole made over to him by one ticket of transfer, he has a right to demand, if he so pleases, ten separate transfers from the party or parties of whom he purchased.

The descriptions of English stock which are least generally understood are scrip and omnium. Scrip means the receipt for any instalment or instalments which may have been paid on any given amount which has been purchased on any Government loan. This receipt, or scrip, is marketable, the party purchasing it, either at a premium or discount, as the case chances to be, becoming of course bound to pay up the remainder of the instalments, on pain of forfeiting the money he has given for it. Omnium means the various kinds of stock in which a loan is absorbed, or, to make the thing still more intelligible, a person purchasing a certain quantity of omnium, purchases given proportions of the various descriptions of Government securities.

Bargains made one day are always checked the following day, by the parties themselves or their clerks. This is done by calling over their respective books one against another. In most transactions what is called an option is given, by mutual consent, to each party. This is often of great importance to the speculator. It is said that the business at the Stock Exchange is illegal, since an unrepealed Act of Parliament exists which directs all buying and selling of Bank securities shall take place in the Rotunda of the Bank.

There are about 1,700 members of the Stock Exchange, who pay twelve guineas a year each. The election of members is always by ballot, and every applicant must be recommended by three persons, who have been members of the house for at least two years. Each recommender must engage to pay the sum of L500 to the candidate's creditors in case any such candidate should become a defaulter, either in the Stock Exchange or the Foreign Stock market, within two years from the date of his admission. A foreigner must have been resident in the United Kingdom for five years previous, unless he is recommended by five members of the Stock Exchange, each of whom becomes security for L300. The candidate must not enter into partnership with any of his recommenders for two years after his admission, unless additional security be provided, and one partner cannot recommend another. Bill and discount brokers are excluded from the Stock Exchange, says the same writer, and no applicant's wife can be engaged in any sort of business. No applicant who has been a bankrupt is eligible until two years after he has obtained his certificate, or fulfilled the conditions of his deed of composition, or unless he has paid 6s. 8d. in the pound. No one who has been twice bankrupt is eligible unless on the same very improbable condition.

If a member makes any bargains before or after the regular business hours--ten to four--the bargain is not recognised by the committee. No bonds can be returned as imperfect after three days' detention. If a member comes to private terms with his creditors, he is put upon the black board of the Exchange as a defaulter, and expelled. A further failure can be condoned for, after six months' exile, provided the member pays at least one-third of any loss that may have occurred on his speculations. For dishonourable conduct the committee can also chalk up a member's name.

It is said that a member of the Stock Exchange who fails and gives up his last farthing to his creditors is never thought as well of as the man who takes care to keep a reserve, in order to step back again into business. For instance, a stockbroker once lost on one account L10,000, and paid the whole without a murmur. Being, however, what is called on the Stock Exchange "a little man," he never again recovered his credit, it being suspected that his back was irretrievably broken.

But a still more striking and very interesting illustration of the estimation in which sterling integrity is held among a large proportion of the members was afforded (says Mr. Grant) in the case of the late Mr. L.A. de la Chaumette, a gentleman of foreign extraction. He had previously been in the Manchester trade, but had been unfortunate. Being a man much respected, and extensively known, his friends advised him to go on the Stock Exchange. He adopted their advice, and became a member. He at once established an excellent business as a broker. Not only did he make large sums, in the shape of commissions on the transactions in which he was employed by others, but one of the largest mercantile houses in London, having the highest possible opinion of his judgment and integrity, entrusted him with the sole disposal of an immense sum of money belonging to the French refugees, which was in their hands at the time. He contrived to employ this money so advantageously, both to his constituents and himself, that he acquired a handsome fortune. Before he had been a member three years, he invited his creditors to dine with him on a particular day at the London Tavern, but concealed from them the particular object he had in view in so doing. On entering the room, they severally found their own names on the different plates, which were reversed, and on turning them up, each found a cheque for the amount due to him, with interest. The entire sum which Mr. L.A. de la Chaumette paid away on this occasion, and in this manner, was upwards of L30,000. Next day, he went into the house as usual, and such was the feeling entertained of his conduct, that many members refused to do a bargain with him to the extent of a single thousand. They looked on his payment of the claims of his former creditors as a foolish affair, and fancied that he might have exhausted his resources, never dreaming that, even if he had, a man of such honourable feeling and upright principle was worthy of credit to any amount. He eventually died worth upwards of L500,000.

The locality of the Stock Exchange (says the author of "The Great Babylon," probably the Rev. Dr. Croly) is well chosen, being at a point where intelligence from the Bank of England, the Royal Exchange, and the different coffee-houses where private letters from abroad are received, may be obtained in a few minutes, and thus "news from all nations" may be very speedily manufactured with an air of authenticity. One wide portal gapes toward the Bank, in Bartholomew Lane; and there is a sally-port into Threadneedle Street, for those who do not wish to be seen entering or emerging the other way. From the dull and dingy aspect of these approaches, which, it seems, cannot be whitened, one could form no guess at the mighty deeds of the place; and when the hourly quotations of the price of stocks are the same, the place is silent, and only a few individuals, with faces which grin but cannot smile, are seen crawling in and out, or standing yawning in the court, with their hands in their breeches' pockets. If, however, the quotations fluctuate, and the Royal Exchange, where most of the leading men of the money market lounge, be full of bustling and rumours, and especially if characters, with eyes like basilisks, and faces lined and surfaced like an asparagus bed ere the plants come up, be ever and anon darting in at the north door of the Royal Exchange, bounding toward the chief priests of Mammon, like pith balls to the conductor of an electric machine, and, when they have "got their charge," bounding away again, then you may be sure that the Stock Exchange is worth seeing, if it could be seen with comfort, or even with safety. At those times, however, a stranger might as well jump into a den of lions, or throw himself into the midst of a herd of famishing wolves.

Among the various plans adopted for securing early intelligence for Stock Exchange purposes before the invention of the telegraph, none proved more successful than that of "pigeon expresses." Till about the beginning of the century the ordinary courier brought the news from the Continent; and it was only the Rothschilds, and one or two other important firms, that "ran" intelligence, in anticipation of the regular French mail. However, many years ago, the project was conceived of establishing a communication between London and Paris by means of pigeons, and in the course of two years it was in complete operation. The training of the birds took considerable time before they could be relied on; and the relays and organisation required to perfect the scheme not only involved a vast expenditure of time, but also of money. In the first place, to make the communication of use on both sides of the Channel, it was necessary to get two distinct establishments for the flight of the pigeons--one in England and another in France. It was then necessary that persons in whom reliance could be placed should be stationed in the two capitals, to be in readiness to receive or dispatch the birds that might bring or carry the intelligence, and make it available for the parties interested. Hence it became almost evident that one speculator, without he was a very wealthy man, could not hope to support a pigeon "express." The consequence was, that, the project being mooted, two or three of the speculators, including brokers of the house, themselves joined, and worked it for their own benefit. Through this medium several of the dealers rapidly made large sums of money; but the trade became less profitable, because the success of the first operators induced others to follow the example of establishing this species of communication. The cost of keeping a "pigeon express" has been estimated at L600 or L700 a year; but whether this amount was magnified, with the view of deterring others from venturing into the speculation, is a question which never seems to have been properly explained. It is stated that the daily papers availed themselves of the news brought by these "expresses;" but, in consideration of allowing the speculators to read the despatches first, the proprietors, it is said, bore but a minimum proportion of the expense. The birds generally used were of the Antwerp breed, strong in the wing, and fully feathered. The months in which they were chiefly worked were the latter end of May, June, July, August, and the beginning of September; and, though the news might not be always of importance, a communication was generally kept up daily between London and Paris in this manner.

In 1837-38-39, and 1840, a great deal of money was made by the "pigeon men," as the speculators supposed to have possession of such intelligence were familiarly termed; and their appearance in the market was always indicative of a rise or fall, according to the tendency of their operations. Having the first chance of buying or selling, they, of course, had the market for a while in their own hands; but as time progressed, and it was found that the papers, by their "second editions," would communicate the news, the general brokers refused to do business till the papers reached the City. The pigeons bringing the news occasionally got shot on their passage; but, as a flock of some eight or a dozen were usually started at a time, miscarriage was not of frequent occurrence. At the time of the death of Mr. Rothschild, one was caught at Brighton, having been disabled by a gun-shot wound, and beneath the shoulder-feathers of the left wing was discovered a small note, with the words "Il est mort," followed by a number of hieroglyphics. Each pigeon had a method of communication entirely their own; and the conductors, if they fancied the key to it was in another person's power, immediately varied it. A case of this description occurred worth noting. The parties interested in the scheme fancied that, however soon they received intelligence, there were others in the market who were quite equal with them. In order to arrive at the real state of affairs, the chief proprietor consented, at the advice of a friend, to pay L10 for the early perusal of a supposed rival's "pigeon express." The "express" came to hand, he read it, and was not a little surprised to find that he was in reality paying for the perusal of his own news! The truth soon came out. Somebody had bribed the keepers of his pigeons, who were thus not only making a profit by the sale of his intelligence, but also on the speculations they in consequence conducted. The defect was soon remedied by changing the style of characters employed, and all went right as before.

When a defalcation takes place in the Stock Exchange (says a City writer of 1845), the course pursued is as follows:--At the commencement of the "settling day," should a broker or jobber--the one through the default of his principals, and the other in consequence of unsuccessful speculations--find a heavy balance on the wrong side of his accounts, which he is unfortunately unable to settle, and should an attempt to get the assistance from friends prove unavailing, he must fail. Excluded from the house, the scene of his past labours and speculations, he dispatches a short but unimportant communication to the committee of the Stock Exchange. The other members of the institution being all assembled in the market, busied in arranging and settling their accounts, some of them, interested parties, become nervous and fidgety at the non-appearance of Mr. ---- (the defaulter in question). The doubt is soon explained, for the porter stationed at the door suddenly gives three loud and distinctly repeated knocks with a mallet, and announces that Mr. ---- presents his respects to the house, and regrets to state that he is unable to comply with his "bargains"--_Anglice_, to fulfil his engagements.

Visit Bartholomew Lane at any time of the year, says a City writer, and you will be sure to find several people of shabby exterior holding converse at the entrance of Capel Court, or on the steps of the auction mart. These are the "Alley men." You will see one, perhaps, take from his pocket a good-sized parcel of dirty-backed letters, all arranged, and tied round with string or red tape, which he sorts with as much care and attention as if they were bank-notes. That parcel is his stock-in-trade. Perhaps those letters may contain the allotment of shares in various companies, to an amount, if the capital subscribed was paid, of many hundreds of thousands of pounds.

To describe fairly the "Alley man," we must take him from the first of his career. He is generally some broken-down clerk or tradesman, who, having lost every prospect of life, chooses this description of business as a _dernier ressort_. First started in his calling, he associates with the loiterers at the Stock Exchange, where, by mixing with them, and perhaps making the acquaintance through the introduction of Sir John Barleycorn, at the tap of a tavern, he is initiated by degrees into the secrets of the business, and, perhaps, before long, becomes as great an adept in the sale or purchase of letters as the oldest man on the walk. When he has acquired the necessary information respecting dealing, he can commence letter-writing for shares. This is effected at the expense of a penny only for postage, pen and ink being always attainable, either in the tavern-parlour or coffee-house he frequents. When a new company comes out, and is advertised, he immediately calls for a form of application, fills it up, and dispatches it, with the moderate request to be allotted one hundred or two hundred shares, the amount of call or share being quite immaterial to him, as he never intends to pay upon or keep them, his only aim being to increase his available stock of letters, so that he can make a "deal," and pocket the profit, should they have a price among the fraternity.

The purchase of stock is thus described by an _habitue_. "Suppose I went," he says, "to buy L100 stock in the Four per Cents. I soon know whether the funds are better, or worse, or steady; for this is the language of the place. If they are _better_, they are on the rise from the preceding day; if _worse_, they are lower than on that day; if _steady_, they have not fluctuated at all, or very little. To render the matter as intelligible as possible, we will suppose the price to be 80-1/8, that is, L80 2s. 6d. sterling for L100 stock. Upon my asking the price of the Four per Cents., the answer probably is, "Buyers at an eighth, and sellers at a quarter;" that is, the jobbers who either buy or sell will have the _turn_, or 1/8. Now if I leave the purchase to a broker, he probably gives, without the least hesitation, 80-3/8, because he may have a friendly turn to make to his brother broker, for a similar act of kindness the preceding day. Well, but I do _not_ leave the purchase to a broker; I manage it myself. I direct my broker to buy me L100 stock at 80-1/4. He takes my name, profession, and place of residence; he then makes a purchase, and the seller of the stock transfers it to me, my heirs, assigns, &c., and makes his signature. On the same leaf of the same book in which the _transfer_ is made to me, there is a form of acceptance of the stock transferred to me, and to which I also put my signature; the clerk then witnesses the receipt, and the whole business is done. The seller of the stock gives me the receipt, with his signature to it, which I may keep till I receive a dividend, when it is no longer any use. The payment of the dividend is an acknowledgment of my right to the stock; and therefore the receipt then becomes useless."

The usual commission charged by a broker is one-eighth (2s. 6d.) per cent. upon the stock sold or purchased; although of late years the charge has often been reduced fifty per cent., especially in speculators' charges, a reduction ascribed to the influx into the market of a body of brokers who will "do business" almost for nothing, provided they can procure customers. The broker deals with the "jobbers," a class of members, or "middle-men," who remain stationary in the stock market, ready to act upon the orders received from brokers.

There is, moreover, a fund subscribed by the members for their decayed associates, the invested capital of which, exclusive of annual contributions, amounts to upwards of L30,000.

The Stock Exchange has numbered amongst its subscribers some valuable members of society, including David Ricardo and several of his descendants, Francis Baily the astronomer, and many others, down to Charles Stokes, F.R.S., not long ago deceased. Horace Smith and the author of the "Last of the Plantagenets"--himself in his prosperity a munificent patron of literature--also for a long time enlivened its precincts. The writer of the successful play of "The Templar," and other elegant productions, was one of the body.

The managers, in 1854, expended about L6,000 in securing additional space for the Stock Exchange prior to the commencement of the works, and the contract was taken at L10,400, some subsequent alterations respecting ventilation having caused the amount to be already exceeded.

The fabric belongs to a private company, consisting of 400 shareholders, and the shares were originally of L50 each, but are now of uncertain amount, the last addition being a call of L25 per share, made for the construction of the new edifice. The affairs of this company are conducted under a cumbersome and restrictive deed of settlement, by nine "managers," elected for life by the shareholders, no election taking place till there are four vacancies. The members or subscribers, however, entirely conduct their own affairs by a committee of thirty of their own body. Neither members nor committee are elected for more than one year.

The number of members at present exceeds 1,700. The subscription is paid to the "managers," who liquidate all expenses, and adopt alterations in the building, upon the representations of the committee of the members, or even on the application of the subscribers. Of the 400 shares mentioned above, the whole, with scarcely an exception, are held by the members themselves. No one person is allowed to hold, directly or indirectly, more than four.

The present building stands in the centre of the block of buildings fronting Bartholomew Lane, Threadneedle Street, Old Broad Street, and Throgmorton Street. The principal entrance is from Bartholomew Lane through Capel Court. There are also three entrances from Throgmorton Street, and one from Threadneedle Street. The area of the new house is about 75 square yards, and it would contain 1,100 or 1,200 members. There are, however, seldom more than half that number present. The site is very irregular, and has enforced some peculiar construction in covering it, into which iron enters largely.