CHAMBERS'S INFORMATION FOR THE PEOPLE. 



customer not for the time requiring an advance, 

 but having, on the contrary, lodged spare money 

 with the bank. 



Irish Banks. The banks in Ireland were in 

 1882 as follows: 



Savings-banks. These are banks of deposit, for 

 receiving small sums, not exceeding ^30 in one 

 year. For information respecting these beneficial 

 institutions, see SOCIAL ECONOMICS OF THE 

 INDUSTRIOUS ORDERS. 



Stock Exchange. About the year 1700, the 

 dealers in public securities were found to encum- 

 ber the Bank of England by their increased 

 numbers, and they changed their place of meet- 

 ing to what is now known as Change Alley. In 

 1773 several of the brokers engaged rooms, to 

 which they gave the name of Stock Exchange, in 

 Sweetings Alley. In these, any one was allowed 

 to transact business on payment of sixpence. 

 Eventually, subscriptions were raised to erect a 

 building for the special purpose of dealing in 

 stocks. The site chosen was Capel Court, where 

 stood the residence of William Capel, Lord 

 Mayor of London in 1504. Free admission now 

 ceased, and members were chosen by ballot. The 

 present Stock Exchange was rebuilt, and opened 

 1 7th March 1854. It is regulated by a committee 

 of 33 members, who have power to suspend or 

 expel any member ' who may be guilty of dishon- 

 ourable or disgraceful conduct' It recognises no 

 transaction with any one who is not a member, 

 and every bargain must be in accordance with the 

 usages of ' the house.' ' Settling-days ' in English 

 and foreign stocks are twice a month, the middle 

 and the end ; in consols, once a month, a day 

 between the 6th and iith. 'Scrip 'is an abbre- 

 viation of subscription, and is applied to the 

 document certifying payment of deposits and calls 

 on shares, prior to the issue of the final certificate. 

 It is negotiable. Members are divided into 

 'jobbers' and 'brokers.' A jobber deals on his 

 own account, and is prepared to name prices at 

 which he will buy or sell stocks or shares. A 

 broker acts under instructions from his constit- 

 uent. He deals with the jobber, and is paid by 

 commission. 'A Bull' buys for settlement at a 

 future date, with a view of gaining by a rise of 

 price in the interval. 'A Bear' sells for settle- 

 ment at a future date, with a view of gain- 

 ing by a fall of price in the interval. Hence 

 Bull and Bear transactions are speculations 

 for the ' rise ' or ' fall.' ' Contango ' is the 

 sum paid for postponing settlement of a Bull 

 transaction from the original settling-day till the 

 next, and represents interest upon the purchase- 

 money of the stock or shares for the time between 

 the settling days. It is paid either to the seller 

 of the stock, who consents to wait for the pur- 



496 



chase-money for a fortnight, or to some other 

 person who lends the money to the Bull. A Bear 

 in this way often gets a Contango, or interest on 

 the purchase-money of stock which he does not 

 possess. The rate of the Contango is of course 

 primarily regulated by the supply of money in the 

 market at the time. If stock is plentiful and 

 money scarce, the Contango is high. Owing, 

 however, to Bear transactions that is, sales by 

 persons who have no stock to deliver it some- 

 times happens that stock is scarce and money 

 plentiful. The position is then reversed, and the 

 Bear, instead of receiving the Contango from the 

 Bull, has to pay for the privilege of not being 

 called upon to deliver the stock. This payment 

 is called a 'Backwardation.' In this carrying 

 over of transactions, the average price of the day 

 is fixed as a ' making-up ' price, and the difference 

 between this and the prices at which transactions 

 were originally entered into is received and paid 

 by the Bulls and the Bears. These 'time bar- 

 gains ' are purely speculative or gambling transac- 

 tions, and may be entered on with a comparatively 

 small capital. The experience of recent years has 

 led to the passing of an act of parliament render- 

 ing illegal time-bargains in bank shares. The 

 famous Pullinger frauds led to a rule being passed, 

 that clerks or subordinates should not be dealt 

 with, without notice being given to their employers 

 an excellent rule ; but complaints are made that 

 it is not duly observed. While men of great ex- 

 perience, devoting their time and brains to Stock 

 Exchange speculation, often make great fortunes 

 by it, to the inexperienced, who have no means 

 of getting special knowledge, and who fancy they 

 see in it a short cut to wealth, it is the road to 

 certain ruin. To the latter, at least, it must there- 

 fore be demoralising. The former may plead that 

 he does give brains and experience to it, and that 

 trade in general is speculation for 'rise or fall.' 



National Debt. The national debt of England 

 at the Revolution of 1688 was ^664,263 ; at the 

 accession of George I., ,36,175,460; beginning 

 of the American war, in 1775, ^127,162,413 ; 

 at the end of it, ,231,843,631 ; at the beginning 

 of the French war, 1793, ^247,874,439 ; at the 

 peace of Amiens, 1802,^537,653,008; at the peace 

 of Paris, 1815, ,861,039,049. In 1851, the popu- 

 lation of Great Britain was 20,816,351, and the 

 debt close upon ,790,000,000 or about ^38 per 

 head. In 1871, pop. 26,064,126; debt, .795, 370, 122 

 about .35 per head. In 1881, pop. 35,262,762 ; 

 debt, ^763,045,940 about ,22 per head. 



