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.- Lady Jane, who had so blamed and conducting us to the door we met Mrs.

so ridiculed Mrs. Blossoin for her con- Versatile and Lady Bellamy. “ Do, my ceit and fantasticalness, wow began ber- love," said the former to Lady Jane, self to play the dificult. She found a "return with me to the painting room, thousand faults with the picture, and and see if you can find out my portrait ; was quite angry with me for not finding it is not quite finished, although I have a thousand more. “The eye wants sat ten times"_Yes,' interrupted the light," observed she; • I will give it a artist, 'for ten minutes eacb tiine; little,' answered the Painter. “And the “But cootinued she, “if the likeness bosom should be fuller." He made it be striking, you will know it immeso, although it was nearer the truth at diately." We re-entered the room, and first. “ It is too old,” said she next, by an approving smile and glance of He retouched it. The likeness,or rather Mrs. Versatile's, we discovered a most the portrait, was more flattering. (Lady beautiful picture to be her's; not by the Jane) “That's better! Now I'll have likeness, but by her self-satisfaction at the head-dress altered; it shall be like being so flattered. We both agreed those of the Greek models." (Artist) that it was uncommonly like. Lady

Your Ladyship shall be obeyed.' Bellamy grew pale with envy; and " And that nose again is frightful. I Lady Jane observed bastily, Mr. am sure that I have not that pert turned- Varnish has not taken half so much up thing wbich you have given me." pains with my picture as with yours. The Painter looked all confounded : his He modestly answered, “ Madam, it is eyes said, 'Pray what nose would not yet finished ;" whilst Mrs. Versatile your Ladyship please to have ?' but smiled disdain, as much as to say, he could not express himsell so. He . Poor silly thing! do you ever expect pondered, and at last painted a very to look half so weil as me ?? handsome nose, quite unlike the origi- Mrs. Versatile then addressed herself nal; for Lady Jane is pleasing, without to the artist. “Mr. Varnish, I really the least pretensions to regularity of do (laying a stress on the last word) features, or to what may be termed beg your pardon for being so troublebeauty, and she has precisely the nose some to you, but you must excuse me objecied to.

to day; I was up all night at a quadBy this cime the picture was grown rille ball; and I shall fall asleep, or do yery unlike indeed. “That's better,” nothing but yawn if I sit down (turnsaid she, with a nod and a smile, ing to the looking-glass ;) I protest * Come, my friend," continued she,ad- that I look quite a fright; I will oot dressing herself to me, “tell me some of the not sounded very positive and your excellent anecdotes, in order to put emphatically) sit to-day." He bowed me in good humour with mysell."— submission ; and it came out afterwards . And with me also,' modestly added that she had disappointed him fire the Painter. There, my Lady, that times running; once she was engaged sinile will do inimitably.' She turned to a dejeuné; once she had a sick her head, and was uneasy; she looked head-ach; the third time she disapall impatience; it was lost. You do proved of her dress, which was to be not sit so well as you did yesterday- changed ; next she looked too pale after not so pleasantly, nor in such good riding; and lastly, she was Auttered spirits,' observed the artist.“ Ob! I and put out of temper, and could not, remember---yes, I had that rattle George as she called it, “ bear herself, because Myride of the Guards with me, who she looked so unbecoming." kept taking nonsense to me the whole To all these changes of temper and tiine of iny sitting; do excuse me for disappointments are artists exposed : this morning, and I'll come again to- Her Grace is so disordered by the high morrow, and bring him with me.” Mr. wind, that she is not fit to be seen ; Varaish dropped bis brush, and bowed - Lady so aud so has had no rest, and disappointment- Just as your Lady- her eyes look quite red; --Miss Loveship pleases.'

more is so fidgetty that she cannot sit We all rose together; and as he was still ; she is going to a waltz party,

YOL. 4.]

On the Stocks, or Public Funds.


and will put off the sitting until to. senator, which he is as like as he is to morrow.-Lady Bellamy now put in a windmill; the Reverend Mr. Preach- , her word; for she bad a picture which hard, in a scarlet huating frock and did not half please her, and which was black velvet cap, whfch be used to wear to be altered. “Mr. Varnish," said before his ordination, and a fox's brush she, “my husband does not approve instead of the Bible in his haods; a. of my picture (the case with many hus- Captain Fairweather, in a suit of pobands, thought I :) he says that it is a lished armour; a Mrs. Modish, as a stiff, prim, formal piece of stuff.” The Magdalen; and the Dowager Lady Painter looked all patience. “It is Lumber, as a sleeping Venus, having a not half as gay as I am (some truth in little more modest drapery throwo over that ;) it is unlike about the eyes; it her. Now, who on earth could expect must be touched up again and iinprov- to discover their friends under such disa ed; besides, my husband says that he guises? Yet to all these whims and fans must have me in an easy undress, in- tasies must the painter submit. His lask stead of that crimson robe and feathers.” to please must be difficult.

1 • Just as your husband pleases,' answer- . Of one thing I was convinced, namely, ed the tormented artist.

that to picture our acquaintances, and We now took our leave; and Lady friends, or even public characters, strict Jane set me down at Hookham's, ob- resemblance, without flattery, is necess serving on the way, that Mrs. Versatile's sary. The general expression of the picture was not a bit like her, that Mr. countenance, the prevalent habit of the Varnish had made a perfect beauty of original, and the dress usually worn by her; and that she much regretted having her or by hiin, are equally requisite. her portrait painted by him, as she did Our wife or daughter should be a wonot admire his likenesses at all. man, and not a goddess; our friend or . On mny way home, I could not help acquaintance should be a gentleman, ruminating on the painful task of the and not a bero of antiquity, good exPainter, and recollected that very few of ecution and correctness of similarity the portraits, which we saw in his show. should complete the portrait; eise may room, were strong likenesses of those we have a very fine picture, yet like for whoin they were taken. The two nobody whom we know,-a mere great causes for this, however, were, that matter of fancy. almost every body wishes to be flattered. With these remarks, and with this while some others have the conceit of conviction I shall conclude, professing being painted in dresses foreign to high esteem and pity for the meritorious their situation in life, and in which their artist thus exposed, and an irrevocable acquaintances can never possibly have resolution never in future, by accomseen thein.

panying a fanciful lady to have her picThere was, for instance, Lord iure taken, to lose a morning of the Heavy head in the costume of a Roman


From Black wood's Edinburgh Magazine, October, 1818.


S I have no doubt of your desire introduced, and, at the same time, less A to contribute to the instruction, as generally understood, than that of the well as the amusement, of every indi- Public Funds, and I know few subjects vidual among your readers, who pays on which the uninstructed can derive so down his half-crown for your monthly little information from books. Systems bill of fare, I shall make no apology for of political econoniy, and profound troubling you with a few remarks on disquisitions on the national debt, are the subject that stands at the head of indeed every day issuing from the press; ibis paper. There are few topics of but in none of these that I bave niet conversation perhaps more frequently with, not even in the luminous pages of the Edinburgh Review, which, of all demand repayment, even though they other works, is supposed by its admir- were quite certain of r?ceiving annual ers to go to the bottom of every subject, interest, and of transiiitiog the right to will ordinary readers find any explana- that interest to their posterity. To remtion of the first simple principles of the edy this inconvenience, therefore, the Public Funds? It is for the instruction leader who wishes to employ the sum of such readers, then, that I would ber which he lent to government in any leave to occupy a page or two of your other way, though he cannot directly Magazine ; and though I ain quite a- deinand repayment, is at liberty to sell ware, that my observations will cut a his bill to any body who will purchase very sorry figure beside the nervous it, and for any sum that another may declamation of Idoloclastes, or thu sar- be willing to pay for it. In doing so, castic humour of Timothy 'Tickler, I'am he merely sells to a second person the nevertheless certain, that I will render right which he bimsell possessed to the a very acceptable service to many, and annual interest of £5, and that second these oot the least respectable of your person is of course at liberty to dispose readers, if pean throw so much light up- of his right to another in the same way. on the suhject as may enable them to Tbis transaction, in general, is called a understand the prices of the Stocks, as transfer of stock ; and in the particular given in the public papers.

case which I have supposed, the one is 9 It is perhaps hardly necessary to re- said to sell, aod the other to buy, a mark, that in every war in which this £100 of 5 per cent, stock. If 3 per country has been engaged since the Re- vent, be considered as a fair and equivolution, the amount of the annual taxes table interest for money lent, it is obhas been found inadequate to defray the vious, that such a bill as I have pow expenses of Pernment. T oujiply been speaking of, or, in other words, the defigieses cou rukus but Auripally thai £100 of 5 per cent. stock, is just had recoarser To Loanshings I say, worth £100 sterling. It is possible, they have borrowed noney from such however, that in certain circumstauces, individuals as were able and willing to the holder or that bill may receive more, lend it, giving these individuals a secu- or be obliged to take less for it than rity for the payment of a certain annual £100. If two or three individuals, interest. To explain the nature of this for example, have each a sum of money transaction, I shall take a very simple wbich they are anxious to lay out at case. Suppose, then, that £100 is the interest, but find it difficult to do so, sum which government wishes to bor- a competition will naturally take place row,and that an individual offers to lend among them to become the purchaser that sum at an interest of 5 per cent. On of the bill in question, which will alpaying down the money, the lender re- ways secure to the holder £5 of yearly ceives a bill, bond, or acknowledgment, interest. The possessor of the bill will for the amount; by which acknowledg. of course take advantage of this compement, he is entitled to draw yearly from tition and raise his price, say, to £105. the public revenue £5 of interest, but The purchaser, therefore, pays £105 on the express condition, that he is not for £100 of 5 per cent, stock, or le to demand repayment of the principal, lays out his money at an interest of £5 or sum lent, unless government is will- for every £105, which is at the rate of ing to repay it. The person who thus something more than 41 per cent. JF, possesses the bill or acknowledginent, on the other hand, however, ibe posis said to be a holder of L100 of 5 per sessor of the bill or stock is anxious to cent. stock, and the money lent upon dispose of it, while few are willing to that bill constitutes a part of what is buy it, he will be forced to offer it for called the national debi, because it is in less than £100, say, £95. The purfact borrowed by the nation, and the chaser, in this case, pays £95 for £100 interest is paid out of the laxes. It is of 5 per cent, stock, or he lays out his obvious, however, that few persons money at an interest of L5 for every would be disposed to lend money on 195, wlich is at the rate of something the condition of vever being allowed to inore than 5 per cent, . For simplicity


VOL. 4.]

On the Stocks, or Public Funds.


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of illustration, I have supposed, that their money, still it may possibly be L100 is the sum borrowed by govern- more that they can draw for it in any ment, and that of course there is just other way, while the security is better one bill to be disposed of, or transferred, than if they lent their money to private' by the lender. If it be supposed, how- individuals or companies. Jo this case, ever, as is really the fact, that the loans the contractors would gain 5 per cent. generally amount 10 several millions, upon the loan, or L 50,000 on the the necessity which the lenders are un- wbole ten millions. It, on the other der of selling their bills, or, in other hand, however, comparatively few perwords, transferring their stock, will be sons are found disposed to lay out their more apparent. The transaction be- money at 5 per cent., the contractors tween government and the lenders, is may be obliged to offer their bills for precisely the same in the case of mil- less than £100, say, as belore, £95. hons as in that of a hundred, and it is In this case, the contractors lose 5 per unnecessary, therefore, again to illus. cent. on the loan, or £50,000 on the trale the general principle of that trans- whole ten millions. It is easy to see, action. It is evident, however, that from this view of the subject, how the even ihe most opulent merchants, who price of stock is liable to fluctuation, are generally the lenders, cannot be from accidental circumstances. I shall supposed to have such a command not attempt to enumerate these ; but it of money as to be able to advance may be worth while to point out how ten or twelve millions to government it is affected by peace and war, as these al ouce. When they contract for a two states of the country are generally Joan, therefore ; tbat is, when they found to bave the greatest influence in agree to lend to government the sum raising or depressing the value of stock. required, they generally pay the money In the time of war, then, the price of by instalments, or partial payments, at stock is comparatively lou, because, in certain intervals, say one million such a state of this, it is likely that a-inonth, till the whole is advanced. government will be under the necessity In the mean time they sell, or transfer of borrowing ; and as every loan prothe bills or securities which they receive duces new bills, the quantity of those from government, to those who may to be disposed of, or, in other words, have money to lay out at interest, and the supply of the market, will be inwho of course will be disposed to pure creased. The price, therefore, will fall, chase such bills, so that the sale of the for the same reason that the price of bills of the first instalment may enable corn falls after a plentiful harvest. In them to pay the second. In this way time of peace, again, the price of stock government securities or bills become is comparatively high, because, in such articles of commerce, and their price is a state of things, the taxes are likely to regulated, like that of any other article, be sufficient to defray the expenses of according to the supply and demand. government without any loans, and If we suppose, as before, that the con- consequently no new bills are to be tractors for the loan, that is, the origi- disposed of, or the supply, though not nal lenders, receive from government a positively diminished, ceases to be aug£100 bill for every £100 sterling that mented. For the same reason, the they leod, bearing 5 per cent. they will price of stock in the time of war is magain or lose by the transaction, accord- terially affected by ibe nature of the ining as they can dispose of these bills, telligence ibat comes from the scene of for more or less than £100. If the action. If that intelligence be unsabuyers are numerous, compared with vourable, stock will fall, because there ibe quantity of bills; that is, if there is a prospect either of protracted warbe a great number who are ambitious fare, or of ibe necessity of more vigorto have their money laid out at inter- ous exertions on the part of governest, they will be tempted perhaps to ment; in both which cases, new loans give, as was before supposed, L105 sor may be necessary, and consequently a every bill; for though, by doing so, new supply of bills will be thrown into they will have only 41 per ceat.' for the money market. On the other band,

should the intelligence be favourable, loss or gaia. In such a case as this, it the price of stock will rise, because the is obviously A's interest that the price prospect of a successful termination of of stock should fall, and as obviously the war readers it probable that there B's interest that it should rise, between will be po new loan, and consequently the day of the bargain and that of setno new supply of stock. It is this va- tling, and beuce the temptation held out riation in the price of stock that gives to both 10 circulate reports favourable room for the nefarious practice of stock, to their own particular views. B, or jobbing. That practice consists in the buyer, is usually denominated a raising and circulating reports, calcula- Bull, as expressive of his desire to toss ted to raise or depress the price of up; and A, or the seller, a Bear, from stock, according to the particular views his wish to trample upon, or tread of the individual. If he wishes, for down. The law, of course, does not example, to sell his stock or bills, he recognise a transaction which proceeds endeavours to propagate some report or on a principle of gambling; but a sepse other, favourable to the issue of the war, of honour, or, what is perhaps bearer and the establishment of peace, in or- the truth, self-interest, generally secures der, if possible, to raise the price of the payment of the difference, as the stock : and if he wishes to buy, be person who refuses to pay his loss, is propagates reports of a contrary tenden- exhibited in the Stock Exchange under cy. It is painful to think, that this the designation of a lame duck, a disabominable system is sometimes carried grace which is coosiderered as the senon by men whose rank and station in tence of banishment from that scene of society, to say nothing of the obliga- bustle and business. tions of morality and religion, might be I have, in the preceding remarks, for expected to place them above any such the sake of simplicity, represented the disgraceful acts; but in general, I be- transfer of stock, as carried on in a lieve it is confined to men of desperate way somewhat different from that in fortune and little character, who subsist which it is really conducted. I have by a species of gambling, to which the considered the securities which governo finance system of this country has open- ment gives to those from whom money ed a wide and extensive field. I allude is borrowed, as coosisting of bills, and to those men who make a practice of these bills as uniformly bearing interest buying and selling stock, without actu- at 5 per cent. To many, I have no

ally possessing any ; and whose trans- doubt, my observations will appear pot * actions, therefore, are nothing more than only sufficiently simple, but abundantly wagers about the price of stock on a silly, and as containing nothing but certain day. To explain the nature of what every body knew before. Now, the transaction by an example, I shall I do boldly aver, that every body does suppose, that A sells to B a governmeut not know what I have above explained, bill of £100, or a £100 of 5 per cent. and I solemnly protest against the stock, to be delivered on a certain fu- sneers and sarcasms of those wlo do, ture day, and that the price is fixed at because it is 'not for them I write, nor is £ 102. If, when the day arrives, the it their approbation that I care any price of stock shall have fallen to £100, thing about. I write for the instruction A would be able to purchase the bill in of plain bonest country folks (who, by question for £100, wbile, in conse- the way, constitute no inconsiderable quence of bis bargain, B would be portion of your readers), and if I can obliged to pay him £102 for it, so that assist one old lady in judging when it A would gain £2. If, however, stock is most advantageous to invest in, or had risen to £104, B would still be sell out of the funds, or save one young obliged to give only £102, so that A gentleman from blushing, when he is would lose L2; but instead of actually requested to read and explain the newsbuying aod selling the stock, the bar- paper report of the stocks, I shall not gain is generally implemented by A consider my owo trouble lost, or the paying to B, or receiving from bim, the paper of your Magazine wasted. I am, £2, or wbatever may be the sum of Sir, your obedient servant, T. N

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