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These may become vacant and cease for a time to yield interest. But they do not therefore de- preciate in value, simply because there is no aue who can come forward and sell them on time at any price he may be able to get. It is otherwise with shares. I may hold shares in a company whose working has been unprofitable, still I hold on to them in the hope of improvement; but the bears will not leave me alone, tle out the ground from under my feet, selling my own shares before my eyes. If I am holding these shares from ad- vances made by the Bank, so soon as the fall in price equals the margins held on such shares lodged in the Bank I am called upon to increase av margin, and if I fail to do so my shares are sold and the savings of years are lost to me. This is one effect of the operatious of the bears. If share bisin ss were restricted to the shares actually in existence such calamities as above! described would be averted. The sharebrokers complain that if Mr. Koswick's Bill became law, their business would be affected. I sulmit that their business would be somewhat curtailed, but only to the extent in which fictitious shares are dealt in, and the 'oss of auch business ought! not to be lamented by any honest mau. More. over the business left them, if smaller, would be sounder and less fraught with anxiety for the broker.
It may be urged that bulls with limited means should not overload themselves with shares. But these weak people are enticed into making these purchases by the exciting reports given out by the bears before they become so loaded, and the credulity of the dups does not extenuats the frand of the tempter who, spider-like, has spread his not to catch the victim.
No rules or regulations made by the Govern ment will exempt the people of this colony who deal in shares from liability to rain unless a law be enacted restricting transactions to business done in the actual scrip. The gam bling instinct is unfortunately innate in man, and it would be waste of time to endeavour to stop speculation. If a man is disposed to gamble in shares he must do so, but let the game be fair, and let us see to it that he does not full a prey to the bear, by interdicting the sale of fictitious shares. All trades and pro fessions contribute losses to the pool of the bears' operations Nine-tenths of the distress aow felt in the colony are attributable to the over-selling that has been indulged in during the past few years. The effect of this gam bling in stocks is widespread; it is responsible for the dull state of several trades of the colnay, and for the reduction in the income of many persons living at bome on money invested here. I am an old resident, and I have for years followed the finotnations of the share market, and I bave keenly watched the tactics of the bears, and I can therefore attest with some confidence that the periodical seasons of de- pression and retrogression that we have suffered here during the last ten years are due mainly to the over-selling of shares. I have not bought at inflated rates, but I have been a firm, staunch, and sanguine shareholder for ten years or more in almost all old companies, and I have been so indifferent observer of the tricks of the bearing fraternity; but it is rather hard to be made rich and poor, in common with other proprietors, at! the freak and fansy of a pack of scheming speculators. If I am asked for advice by a friend anxious to make an investment
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in any of the companies of which I am director. I cannot give it lost the action of the bears should suddenly couvert a rising into a falling market, spite of the good prospects for the time being of such a company.
It was suggested to me to-day that by restrict- ing sales on time to two months and by getting the brokers to discontinue the practice of sign- ing for the concerned “ we might meet the grievance complained of. I maintain that no- thing short of confining transactions to the number of shares actually in existence will re- : medy the evil. In the former case, notwith- standing the smaller hauls the bear would make each time under the proposed change, he would be able to effect six operations in each stock every year instead of two or three as at prosent. The balls, on the other hand, would have less breathing time, with less chance of anything! good turning up to ameliorate matters in the event of their transactions meeting adverse eir- enmstances at the start. In the latter case the speculators who bear the market will still re- main behind the scene; instead of baving brokers to sign for them they will obtain won of substance who for a small commission will allow their names to be used instead.
The evils I have enumerated are due to the want of a strong balling element to counter- balance the bearing of shares so extensively practised here. The bears have one well defined object-to make a pile anyhow and leave the colony to care for itself. I have made this place my home; my interests are identified with those of the colony, and I wish to soo it in the posses sion of a sound and permanent prosperity; and I have with this view most carefully studied the proposed Ordinance both with regard to its pro- visions and its probable effect on business. Mr. Keswick's Bill merits the support of the community. It is an honest measure and i will inflict no real hardship on any de seving or industrious person, while lt will afford protes- tion to small investors with limited capital. I am confident it has the support of the larger section of the community, and no importance should be attached to the vote of the Chamber of Commerce against it the other day because this was won by the votes of the brokers, whereas had they been eliminated there would have been a majority in favour of the Bill.
Finally, in the interests of the community I hope and trust the Legislative Council will, feel. ing the justice of the step, pass the Bill on Fri- day in its entirety.-Yours faithfully,
E. R. BELILIOS. Hongkong, 24th June, 1891.
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