Various

By Robert Stewart

Sir Richard Steele, in describing the Spectator Club, remarks of the Templer that “most of his thoughts are fit for conversation, as few of them are derived from business.” Nevertheless, almost any man should be able to philosophize more or less pleasantly and instructively over his calling, and if statesmen, soldiers, lawyers and medical gentlemen write autobiographies and describe the various debates, campaigns, litigations and horrible operations they have been engaged in, why should not an old stockbroker chat about his business, and give a little “inside information,” perhaps, about that Street whose ways are supposed to be so tortuous?

Go into the Waldorf any afternoon you please, and see which has the more attentive audience, Mr. Justice Truax discussing cases, or Mr. Jakey Field tipping his friends on sugar. Watch the women at a tea and see how their eyes brighten when young Bull, of the Stock Exchange, comes in. Bull has a surer road to smiles and favor than all the flowers and compliments in New York—he has a straight tip from John Gates.

Business not fit for conversation! Ask Mr. Morgan if anybody fidgets when he talks? Has any clergyman as eager a congregation as the audience Mr. Clews preaches to from the platform in front of his quotation board every morning at eleven o’clock?

“Come, ye disconsolate,” then, and if I can’t tell you how to make money, I venture to assert I can interest you in the place where you lost it.

There is no place of business, indeed, so pictorial as Wall Street. Sunk down amid huge buildings which wall it in like precipices, with a graveyard yawning at its head and a river surging at its feet, its pavement teeming with an eager, nervous multitude, its street rattling with trucks laden with gold and silver bricks, its soil mined with treasure vaults and private wires, its skyline festooned with ticker tape, its historic sense vindicated by the heroic statue of Washington standing in majestic serenity on the portico of that most exquisite model of the Parthenon, and with the solemn sarcasm of the stately brown church, backed by its crumbling tombstones, lifting its slender spire like a prophetic warning finger in its pathway—this most impressive and pompous of thoroughfares is at once serious and lively, solid and vivacious. You say to yourself this must be a vast business which is so grandly domiciled; and you wonder if the men live up to the buildings.

The broker, in fact, who fills the eye of pictorial satire and the country press, is not an admirable object. His tall hat and shiny boots are in too obvious a foreground in sketches of race meetings, uptown cafÉs and flash clubs. He is represented as a maddened savage on ’Change, and a reckless debauchee at leisure, who analyzes the operations of finance in the language of a monte dealer describing a prize fight, and whose notion of a successful career is something between a gambler, a revolutionist and a buccaneer. He is supposed to vibrate in cheerful nonchalance between Delmonico’s and a beanery, according as he is in funds or hard up, and to exhibit a genial assurance that “a member of the New York Stock Exchange, sir,” will prove a pleasant addition to the most exclusive circles.

This happy-go-lucky gentleman, however, to use one of his own delightful metaphors, “cuts very little ice” in the region where he is believed to exert himself most effectively. He is really but the froth, riding lightly on the speculative current. Still, I have placed him, like Uriah, “in the forefront of the battle,” while we draw back a little, because he is the caricature of that stocking-broking man-about-town Wall Street has had the honor to create, and because in popular fancy he is seen standing, like Washington, before the doors of the Stock Exchange, with a gold pencil in one hand and a pad in the other, ready to pounce on the pocketbooks of parsons and schoolmistresses.

Parsons and schoolmistresses actually do come to Wall Street; all the world comes here, incorporates its idioms into its dialect and is infected with its spirit. It is a lounge for men of pleasure, a study for men of learning, an El Dorado for men of adventure, and a market for men of business. It has a habitat and a manner, a character and a vernacular. It bristles with incongruity and contradiction, yet it is as logical as a syllogism.

Superficially, everything is manipulation, chance, accident. Really, every fluctuation is regulated by laws of science, and, with adequate knowledge and just deduction, profit is not speculative but certain. It is this which differentiates it from all mere gambling. And it is this union of impulse and logic which makes it so human, so humorous, so dramatic and pathetic.

Perhaps its most curious incongruity is its combination of secrecy and frankness. The atmosphere about the Stock Exchange fairly palpitates with suspicion and subterfuge. No man knows what another man is about, and every man bends his energy to find out. “Inside information” is the philosopher’s stone that turns every fraction into golden units. The leading firms take the greatest pains to conceal their dealings. Orders are given in cipher. Certificates are registered in the names of clerks. Large blocks of stock are bought, and sold, and “crossed,” for the mere purpose of misleading. A wink or a shrug is accepted as more significant than the most positive assertion. The disposition to “copper a point” is so general that the late Mr. Gould used to say he always told the truth, because nobody ever believed him.

The very penny chroniclers of the market acquire an infelicitous adroitness in the phraseology of deceit. And yet nowhere on earth is ignorance so carefully counseled and so almost ludicrously warned as in this place of trickery and innuendo.

What conceivable enterprise which expected to exist on public patronage would assume as the unofficial metaphor of dealings a pair of wild beasts bellowing and growling over the carcass of a lamb, and make this most helpless and stupid of animals the representation of the customer? To call a trader a lamb is as opprobrious an epithet as it was to call a Norman baron an Englishman.

In any other business the buyer is an honored and privileged patron; in Wall Street he is welcomed with the respect and pleasure that was exhibited to a bailiff serving a writ in Alsatia. Should he stroll guilelessly into the Exchange he proposes to benefit, he is set upon, mobbed, hustled, mussed and finally ejected from the door with a battered hat and torn coat collar. Every other broking office in the Street has a pictorial caricature hanging over its ticker of his hesitancy and timidity, his rash venture, his silly and short-lived hilarity, his speedy and inevitable ruin, and his final departure, with his face distorted by rage and grief, and his pockets turned inside out.

The air is thick with signs and evil portents: Stop-loss orders, breaks, raids, slumps, more margins, are in everybody’s mouth. The path to fortune is emphasized as slippery by every adjective of peril, and is hedged with maxims, over each of which is dangling, like a horrible example, the corpse of a ruined speculator.

A too subtle analyst might suggest that this presentation of opportunity and restraint, while apparently incongruous, is the most fascinating form of temptation. But subtlety, except in manipulating stock values, is not a Wall Street characteristic. The Stock Exchange is an arena where men fight hand to hand, head to head. Beneath the conventions of courtesy, each man’s fists are guarding his pockets and his eyes are on his neighbor. Such a vocation breeds courage, quickness, keenness, coolness. Weak men and fools are weeded out with surprising celerity and certainty.

Wall Street men are frank because they have learned it is wisest. The average commission broker secretly regards his clients with a feeling of benevolence delicately tinctured with contempt. Experience teaches him to use a favorite professional phrase, that there are times when “you can’t keep the public out of the market with a club,” and that when engaged in stock operations they usually display the judgment of a child picking sweets out of a box. His first care, naturally, is to protect himself, financially and otherwise, against the losses which ensue. Hence he surrounds their transactions with every legal and friendly restraint. But his existence depends on their success, or in replacing them. The broker, therefore, is quite as anxious for his clients to make money as they are themselves. More profit, more margin; more margin, more commissions and less risk. There you have it in a nutshell.

The stockbroker says to the public: “My dear sir, here is an open market. Nowhere else can you get such large and quick returns on so small an investment. For these opportunities I charge you the ridiculously small percentage of one-eighth of one per cent., and loan you, besides, ninety per cent. of your investment. Could any man with a proper regard for his wife and children do better by you? You own whatever security you buy, and get its dividend. Your margin is your equity in it. In property whose market value fluctuates so widely and rapidly, I naturally require you to keep your margin at the per cent. agreed upon. If, unfortunately, it becomes exhausted, I, as mortgagee, foreclose at the best price obtainable. I shall be pleased to execute all orders with which you may favor me on the above basis, in all securities dealt in on the New York Stock Exchange, reserving to myself, of course, the right to refuse to carry any security I do not care to loan my capital on. Some are risky, some safe, some inactive. All speculation implies risk.

“I beg you to remember my relation with you is only to execute your orders. You must use your own judgment. I should advise you, nevertheless, to keep in the active stocks. Opportunities for quick and profitable turns in them are more frequent, and the broader the market, the closer the trades, and the less the difficulty of disposal. Union Pacific, just now, looks good for a rise. They tell me, confidentially, that the Rockefellers are buying it, but I know nothing about it. It acts all right. Mr. Jones, this is my partner, Mr. Robinson. I’ve just been telling Mr. Jones, Robinson, that we hear the Rockefellers are buying U. P. There it is, three-quarters, on the board now——”

And the broker glances over the quotation board, grabs his hat, and flies to the “floor,” shaking his head and saying to himself: “I’ll give that fellow just six months to drop his wad.”

Well, is it his fault? He has been honest with you, frank with you. Be sure he will help you make money if he can.

“I did my best for him—damn fool!” is the mental summary inclosed along with many a closing-out statement.

To the visitor accustomed to regard Wall Street as a vast faro layout, its very face should be a striking object-lesson.

Emerging from the lofty and beautiful hallway of the Empire Building, those stupendous heights of stone and glass which confront him in solid squares are evidently not the creations of the baccarat table and the roulette wheel. The most dignified temples of chance are designed to shelter pleasure and frivolity. These huge homes of the corporation and the bank, with entrances as sternly embellished as palaces of justice, are oppressively significant of business.As one crosses Broadway and descends to Broad Street, the impression deepens, stirs, until you realize you are standing in a place of strength and power, in the very heart of the nation’s financial life. The crowd of curb brokers yelling out quotations before the Stock Exchange seems merely a casual and ludicrous episode, and the Stock Exchange itself but a factor in this tremendous neighborhood.

Here is a world force which expresses itself on land and sea, and in the heaven above; which has built itself an abode that is the wonder of man; which bids fleets go forth, transports armies, and commands in foreign senates; which restrains kings in their wrath; which feeds the peasant on the banks of the Gloire, and clothes the coolie toiling in the rice fields of Honan.

You stand there, I say, and recognize that you are in the presence of the creative energy of millions of men and machines building, hauling, planting, laboring, all over the world; and then you go into your broker’s office and hear slim young gentlemen talk of “playing the market,” and you don’t wonder the broker is cynical and careful.

This serious, solid, fundamental character of Wall Street, performing amid its colossal setting, an important and essential office in the world’s work, must be conscientiously painted in and emphasized in any portrait, however gay and frolicsome, which attempts to depict its spirit.

This sense of drama, indeed, this consciousness that tremendous things are happening while we amuse ourselves, is one of the causes which make Wall Street so fascinating. You can take it as seriously or as frivolously as you please. You can operate with all the statistics of “Poor’s Manual” and “The Financial Chronicle” packed into your head, or you can trade with the gay abandon of M. D’Artagnan breakfasting under the walls of La Rochelle.

I have said all the world comes here, and the more I reflect upon it, as a man of twenty years’ experience, the less I wonder. The wonder is that anybody stays away. It is so tempting, so amusing, so respectable, so reckless or cautious, as you choose.

In appearance, a broker’s office is something between a club parlor and a bank, and it unconsciously represents its business. The room is spacious and richly carpeted. The great quotation board, with that jumping jack of a boy bobbing up and down on the platform before it, is of solid mahogany. The chairs are large and comfortable. From the great windows you can look out on the varied and beautiful panorama of the Hudson and the harbor, the water flashing in the sunlight and lively with tugs, schooners, steamers, yachts. On the table are all sorts of stock reports, newsfiles, financial statements.

The daily papers are in a rack, and over the mantel are bound volumes of the “Chronicle,” and copies of “Poor’s Manual.” Here is a commodious desk with note paper, order pads and so forth for your use. By the quotation board the ticker is clicking busily, and next it Dow-Jones’ news machine is clacking out printed copy that the newsboy will be howling “Extra” over an hour afterward. Cigars in the table drawer await your acceptance.

A knot of gentlemen are chatting about the ticker; some more are watching the board. An old man with a white beard is dozing in a corner with a “Reading Annual Report” on his knee. If you are a quick and accurate judge of values, here is a means of livelihood under the most agreeable, gentlemanly and easy auspices. You are making your fortune seated comfortably among your friends, so to speak, smoking and chatting pleasantly.

Every minute something happens, and every other event is a financial opportunity. A boy rushes in with a news slip that Russia is to coerce China—wheat rises. Chicago unloads stocks to buy grain—shares decline a point all round. A money broker in to offer a million dollars, and he knows the City Bank people are buying Amalgamated Copper. There is a sudden chorus of greetings and smiles; the popular man of the office has arrived unexpectedly from London. The telephone rings; the board member sends word the market looks like a buy.

“Mr. Morgan has started for the Steel meeting,” reads the manager, from the news machine. “The div-i-dend on Steel”—whirr—whirr—clack, clack, clack—“one per cent.” … “regular.”

“Gee whiz! Look at Steel,” calls the tape trader. “Three-quarters, one-half, one-quarter, one-eighth, one! See ’em come. Three thousand at a clip. Sell ’em! Sell me two hundred, Robinson, quick!”

A clubman drops in with a funny story. Somebody offers to match you for lunch. A friend invites you, over the telephone, to dine with him. You conclude to take your profit in Wabash Preferred on the rally. It is three o’clock and “closing” before you know it, and time to run over to Fred Eberlin’s and have Frank mix you a cocktail.

But aside from a profitable acquaintance with values, I know of no place equal to a stockbroking office for the acquirement of that general and intimate knowledge of men and of the town, which, organized and classified, constitutes the science of life. Here congregate men of every conceivable calling and character, all meeting on the equal and easy terms of a reputable pursuit, and all more or less under the influence of the natural and perfectly selfish ambition of money making.

One has only to observe them to be instructed. They are well groomed. They are rosy and plump. Any one of them evidently could sit down at the desk and write you a check any minute. Whatever they may be elsewhere, whether their private lives are distinguished and benevolent or riotous and shameless, whether their margins are the fruit of admirable diligence or the purloined inheritance of the widow and the orphan, while they are here these men are capitalists. They have the feelings, the ideals, the desires and fears of the rich.

Here is a railway president amusing himself taking a flier in sugar, while he waits for his steamer. He is chatting with a tobacco manufacturer who sold out to the Trust. On that sofa by the window Jerry Jackson, the bookmaker, is whispering a point to a man of pleasure from the Knickerbocker Club. There is a clergyman from Chelsea Seminary talking to a doctor smelling of iodoform. The two tall gentlemen laughing with the manager are lawyers who will be scowling fiercely at each other presently before Recorder Goff.

The man with his hand in a bag is a mine owner from Colorado, showing a copper specimen to a dry-goods merchant on his way to the Custom House. The man with his nose glued to the ticker globe is a professional operator who trades from the tape. And that hungry-looking person who has just rushed in is a bankrupt tipster, making a precarious and pitiful existence, like a woman of the town, out of the means of his ruin.

Graduates of Oxford and alumni of Harvard rub elbows with City Hall politicians, and farmers from Kansas and Pennsylvania exchange market opinions with men of science.

It is only for short intervals that the customers in broking offices can be busy. At other times they must lounge, and smoke; and chat, and read, and watch the board. A good-sized concern may easily have two hundred running accounts. Can you imagine a livelier, more entertaining place of gossip? You can have stocks, horses, commerce, law, medicine, small talk, art, science, the theater and religion in fifteen minute causeries, every day if you like. You have the milieu of every club in New York and the Waldorf cafÉ massed in one elegant composition in more than one broker’s parlor.

I once knew a clever fellow who dined out every evening. He always had the latest scandal, the newest story, the straightest tip and the last word from Washington. He knew all about stocks, grain, races, theaters, society, clubs, athletics. He could advise you about ocean steamers, table d’hÔte places, country hotels, Berlin pensions, young ladies’ schools, where to buy Ayrshire bacon and who had a yacht to sell. And he acquired this vast and useful assortment of knowledge simply by spending his afternoons, from noon to three, at different Wall Street offices.

The brokers cordially welcome such a visitor. Now and again they carry a hundred shares of stock for him. He is a kind of private news agency. The dull office gets ready to laugh when he comes in; and his tips, whispered merely out of friendship, of course, to the customers, add many a credit entry to Commission Account. It may be said, without any hysterical exaggeration, that he represents the worst of Wall Street; and that the worst of Wall Street is very bad. But among his virtues are a merry mind and an abiding faith that a “board member” is the most distinguished of associates.

The broker, indeed, if he is not always that most elevated of human spectacles, a Christian gentleman, is a highly pictorial and interesting person. He is the creature of his business, and is half host and half business man. His habitual chatty intercourse with all kinds of men of means gives him the easy nonchalance of the town, and the nervous strain he is constantly under to protect himself and his clients against those impulses of greed and fear so fostered by Wall Street, creates that keen, rapid concentration for which he is so remarkable.

Where everybody is liable to lose his wits any instant, it is necessary those in authority should be cool. This constant state of high tension, these perpetual changes from extreme concentration to frivolity, produce, in the end, the Wall Street manners, and the desire for exciting, highly colored amusements.

Every day in Wall Street is a completed day. It is a cash business. Your broker likes to talk about his trades over his after-dinner cigar, and to tell you, in the horsy, professional jargon of the Street, how he “pulled a thousand out of ‘Paul,’ and went home long of ‘little Atch.’”

He is, like all nervous people, a social animal. He is gregarious by instinct and interest. Accustomed all day long to his exciting pursuit and his club-parlor office, he seeks society for amusement and profit. He wishes to chat with his friends and to increase his following. He has no wares to display. He has no monetary advantage to offer over any of the other seven or eight hundred commission men in the Exchange. All members must charge one-eighth of one per cent, per hundred shares, each way. Interest charges can’t be very much reduced.

Every broker in Wall Street has inside information of some kind. His appeal, therefore, for commissions must rest on acquaintance and personality. He must know how to stimulate cupidity and create confidence. He must impress himself on as many people as possible as successful, honest, jolly, shrewd, well informed; a capital fellow and a first-rate business man. It is only fair to him to remark that whatever his faults, he almost invariably is a capital fellow and a first-rate business man. But is it extraordinary that this individual should become a man’s man, a man about town?

Whether he is the blatant, vulgar wretch of the caricaturist, or the cultivated, polished person who justifies Wall Street’s boast of being the aristocracy of trade, depends, of course, not on his being a broker, but on his being a gentleman.

His completed portrait, however, would be a too ambitious performance for the limits of my sketch, and I have made this little office study of him, as he leans against his ticker pinching the tape, with bits of board-room paper falling off his hat and a cigar between his teeth, simply to show the influence of his vocation on himself and on his companions.

The flavor of speculation permeates Wall Street like soot, and settles on the professional and the public alike. It is a sporty business. It appeals to the idle, the reckless, the prodigal and the dÉclassÉ. In the quickness and uncertainty of its evolutions, it is unfortunately so analogous to racing and gaming that their terms are interchangeable, and to the thoughtless the stock market is the ranking evil in that unholy trinity.

“Stocks, papers and ponies,” is the ringside slang for Wall Street, cards and horses. The sporting man finds it a no less hazardous, but an equally congenial and more respectable, means of money making, and he drifts into a broker’s office as naturally as the broker relaxes his nerves—similia similibus curantur—spending half an hour over a roulette wheel in his client’s “place.”

The flash public very naturally choose the same pleasant road to fortune. To their minds, whether they place their money on “Reading Common” or on “Waterboy,” the intention, the risk and the result are the same. There are “fake races” and “fake pools.”

“The percentage will ruin you in the end,” they warn you, “no matter what you play.” And the business man, who should know better, too often enters the share market as if he were sitting in an open poker party, among sharpers and pickpockets, and recklessly surrenders himself to every temptation of this devil-may-care atmosphere, while he “plays the game.”

It is this combination of the gambler, the sporting man, the fast broker, the frivolous and ignorant trader and the speculative public, all possessed with the mad passions of gain and fear, and all struggling more or less grimly in the maelstrom which boils about the Stock Exchange, that constitutes the Wall Street spirit.

It is a derisive goblin or a piteous, ineffective human soul, according as you are a laughing or a weeping philosopher. It expresses everything in the Street that is pictorial and dramatic; but Wall Street is first and last a realm of business. It is a strong man’s country.

The men who built the buildings and work in them are giants. When they war, they hurl millions at each other, as the Titans did mountains. When they combine, civilization strides.

The Stock Exchange is their battleground. It is a dangerous place for ladies and civilians. It is best to be serious and cautious, and to keep one’s eyes open, when one travels that way.