discoveries be made, our Peruvian bond-
holders will be in their former miserable
position.

When the unnitiated in the mysteries of
Coupons read in the columns of the morning
journals a notice headed significantly,
"Conversion of Spanish, Portuguese, Mexican, and
Chilian Old Fours," they need not turn to
the next column in the belief that it relates
in the most remote degree to any missionary
triumphs over the inhabitants of those countries;
well might it be if spiritual conversions
were as readily affected as those of secular
Stock. The notice alluded to is simply a
notification that the governments indicated
having failed for many years to pay any of
the interest due on their English loans at four
per cent, per annum, intend to convert the
shares of the said loans into Three per Cents.
This change, harsh and arbitrary as it is
thought by many not in the secret, will not
in reality affect the holders of foreign stock
to the smallest extent, as those persons will
receive quite as much interest after the
"conversion," as they were in the habit of doing
previously.

The Stock Exchange, as it now exists, is of
modern growth. Like "Lloyd's" and similar
institutions, it has grown with the age, and
by slow degrees accommodated itself to the
altered circumstances of the times. Dealers
in funded property, and negotiators of stock,
first appeared in London in the year sixteen
hundred and ninety-two; at that period the
transactions in this description of business
became so extensive, that men found it
well worth their while to devote their
whole time and energies to it. For a period
of about eight years their dealings were
carried on within the busy walls of the
Old Royal Exchange; but at a very early
date in the eighteenth century, share-brokers
assembled for sales and purchases in the
coffee-houses of 'Change Alley, in Cornhill.
This continued the case for fully a hundred
years, and the brokers and jobbers in
stocks were then known as the men of the
"Alley."

In eighteen hundred and one the first
stone of the present Stock Exchange Building
was laid in Capel Court, and since that
period its members have been in the habit
of meeting daily under its roof for business
purposes, just as merchants assemble
in the Royal Exchange every afternoon.
Nevertheless Change Alley continues the
favourite locality for persons following the
profession of stock and share-broker, whose
quiet offices may be easily recognised by the
slips of paper containing daily and often
hourly fluctuations in the prices of the Funds,
which are exposed to public view in their
windows or at their doors. For many years
the dealings in foreign stocks were carried on
in the rotunda of the Bank of England; but
as those transactions grew in importance, it
became impossible to continue the practice,
and all stock and share business is now
transacted under one roof.

The members of the London Stock
Exchange have ranged at various periods from
five hundred to a thousand, paying annual
subscriptions of ten guineas each; at the
present moment there are scarcely so many
as the latter number. No person can become
a member who is engaged in any trade, or
who is a clerk to any merchant or company.
Every one admitted must be recommended by
three well-known members, who also become
his sureties for two hundred pounds each for
two years. The society is governed by a
committee of twenty, having a president and
vice-president; their rules are very numerous
and stringent, calculated as far as any regulations
are capable of doing so, for preserving
unimpaired the respectability of the body.

In spite of every precaution, however,
improper characters sometimes gain admission,
and damage the reputation of the institution
by acts of fraud; which unfortunately are
very easily committed. Besides these
intentional cases, there are others, which though
equally damaging, are yet regarded by the
gentlemen of 'Change, "more in sorrow than
in anger." Men of previous high character
have, through some unforeseen losses, been
induced to enter rashly into speculation, in
the hope of extricating themselves from their
difficulties, by an anticipated rise in some
particular stock: disappointment has blighted
their expectations, and has led to their
becoming defaulters. Others again are ruined
through the insolvency of those for whom
they act.

The much-dreaded result of a " default"—
or inability to pay claims—when accompanied
by fraudulent dealings is the exhibition of
the defaulter's name upon the "Black Board."
To be once gibbeted in this way, is civil
death to the sufferer, as regards the Stock
Exchange; no interest, no wealth, can
again place his name on the society's
books. Care has to be taken in this act that
the committee, who order the fatal notice,
be not made liable to an action for libel. For
this purpose the sentence runs as follows:—
"Any person transacting business with John
Smith, is requested to communicate with
Thomas Brown." John Smith will be the
party whose expulsion is determined on, and
the notice answers the purpose; for no
defaulter has ever been known to make his
appearance after having had his name on the
Black Board. This effective and peaceful
mode of killing members has been in
existence since seventeen hundred and eighty-
seven. Members who become defaulters, or,
in ordinary language, insolvent, are
re-admitted after a careful inspection of their books,
provided they are able to pay thirty per cent,
of their liabilities. They are re-admitted
under three grades of what in bankruptcy
would be called certificates; the class depends