BROKE

Sib Philip Bowes Vere, a British admiral, was bom in 1776; died in 1841. He entered the navy in 1792, and after he had seen much active service, distinguished himself, particularly in 1813, as commander of the Shannon, in the memorable battle which that ve el, in answer to a regular challenge, fought with the Chetapeake off the American coast. The Shannon^ carrying thirty-eight guns and 330 men, after an engagement of only fifteen minutes, bouded and captured the • CheMapeaJte, caixying forty-nine guns and 440 men. Sir Philip was severely wounded in the action. BROKER^ an agent who is employed to conclude bargains or transact busine for others in consideration of a charge or compensation, which is usually in proportion to the extent or value of the transaction completed by him, and is called brokerage. broker in English ikw is considered a middleman, intermediate negotiator between the - principals both sides of the negotiations conducted by Primarily he is the agent of one party, who originally employs him, but as it is his busineas to receive and represent to his principal, if need be, the posals of the other party, he oomes under a twofold obligation, and good faith is required in his dealings with both, or, if there should b^ a plurality of tiators, with alL The use of brokers indicates a sider able advance in mercantile organization, implies extensive and complicated mercantile tions in the community where it prevails. In natural order of development it would probably after the establishment of a regular currency. community where the merchants or negotiators few there would be little need for a broker, and fees would hardly suffice for his subsistence; broker who was only occasionally employed would very imperfectly represent the principle of brokerage, which requires that the agent should be exclusively set apart for agency busine . In large mercantile communities not only are brokers regularly employed; but the businera of a broker is limited to a particular cla of transactions, with which he is expected specially conversant; and brokerage forms not single trade, but a complete cla of trades with systematic subdivision. The use of a broker mercantile transactions rests upon two main positions. A merchant may deal in a number of different modities, with flJl of which and with the parties buy or sell them he cannot be so specifically acquainted as to be able to conduct his whole busine satisfactorily with principals; but in each transaction he find a broker whose busine it is to have the knowledge required for his purpose, and whose knowledge and practical experience he may have the of for a fee. But even when the principal knows exactly with whom he is going to deal, and sufficient experience to deal for himself, there often advantages in carrying on negotiations through a third party. Experience shows that there are different kinds of influence and pre ure brought bear in the conduct of mercantile transactions, there is almost always some kind or other of extraneous influences which a man who is acting himself finds it difficult to resist. A merchant, example, may be doubtful of the credit of a proposed customer, and yet be very unwilling to tell hun In all such cases a broker who can refer all difficulties and refusals to an unknown principal has advantage which is well worth purchasing moderate fee. In markets where the busine brokerage is well imderstood the services of a broker are regularly resorted to for this reason alone, when they might be otherwise dispensed with, the broker consequently obtains a standing, acquires immunities, which enable him to conduct his busine with a freedom and succe which would otherwise be impo ible. This is well illustrated the different treatment which the broker receives a small or imperfectly educated mercantile community. If a broker in such a conmiunity is employed for specific knowledge, say of a particular cla of buyers, he takes great pains to conceal this knowledge his employer, who would otherwise on the next sion go straight to the principals. In a large market the broker attempts no such concealment, and protected not only by the intrinsic value of his vices, but by the habits of the market, which would attach open disgrace to the attempt to use the information of a middleman to his disadvantage. Brokers have legal privileges, covering the right of remuneration for their services, but these are founded on The derive their efficacy from the mercantile usages of or each community. In a mercantile community there on are nearly as many species of brokers as there are him. different departments of trade, but there are a £ew which from their particular privileiges or importance it may be of advantage to enumerate. pro- BiLL-BBOKEBS, EXCHANGB-BBOKEBS. See BUX OF Exchange. Insubanoe-bboeeb is the middleman who negotiates between underwriters and the owners of Te els negoand shippers of goods whose property he insures. (See conand Undebwbiteb.) An insurance-broker has a set of relaunder Writer a, who are his principals, and a con the stituency of owners and merdiants, who are his cuscome tomers, and who send him orders to insure for them. He meets with other brokers to settle the terms on In a were which risks will be taken, and when he has a risk to his cover for one of his customers he may periiaps put but a down his own underwriters for a portion of it, and give a portion of it to other brokers to be covered by their underwriters. In this way the risks are divided, and each underwriter has a large number of small risks instead of a few great ones. The transactions of the broker are subject to the approval of the imderwriters, who must sign the contract as printo be cipals but; he usually receives general instructions to a act for them in a particular way, and as long as he a conforms to his instructions they sign as a matter of in course. This understanding enables him to canry on his busine systematically with his customers. He com is paid by a percentage of the premiums. When a who merchant insures goods through a broker the premiiim or price of the insurance may not be immediately paid; but if there is an established period of credit can the insurance, notwithstanding this, is valid, and the exact policy, or stamped engagement signed by the underwriters, lies with the broker in trust for the inaorcr use as a lien for payment of the premium. If the broker gives any credit to the insurer beyond the established has custom he is himself liable to Ids principal for tbi* are payment of the premium, and it becomes a point of great legal nicety whether the policy is vitiated or many not. The busine of an insurance-broker is quite to different from that either of an authorized agent, or and of a sub-agent or canva er of an insurance oompAny. such Marine insurance is now largely carried on by oomfor panies, and the merchant who deals with the agent for of a company deals to all intents not with a broker but with a principaL so. Pawnbbokeb, though called a broker, is really a principal. See Pawnbboeeb. an Pboduce-bbokebs and others who sell by auction by a act by license, and are sometimes sworn. of Ship-bboksb is the agent of owners of veasel? in chartering them to merdiants or procuring ^tstght^ even for them from one port to another. lake the in sur and ance-broker he usually acts upon general instrucand tions, but his busine is governed entirely by the common principles of brokerage. Stoce-bboeeb is the agent of dealers in abarea of by joint-stock companies, government seouiitiesy and in other monetary investments. On account ai th^ great respx>nsilnlities incurred by these brokers thi-v his are usually placed under some restrictions or apeci.ii regulations, either by legal enactment or mezcantiii' from custom. In France the stock-brokers {agents «i< change) are sworn in. They are allowed from on^^ occaeighth to one-fourth per cent, brokerage on each transaction. The number is limited for eadi toiim he is according to its size. The number for Paris is sereach of whom g^ves security for 125,000 or (£5000). The position of a stock-broker in Pj other large towns of France has thus beoonae a _ perty transmi ible by purchase, and can only lie and acquired by a large capitalist In America tlie 5* of stock-broker is unrestricted. In England stock handsome. brokers are subject to certain general legal restricwell-known tions, aa that by which contracts in the form of wagers are rendered void, and the sale of stock in base. tbf public funds is limited to licensed brokers^ but in tropical Asia general the trade is only restricted by the regulations variety of the brokers' a ociations in each town, which are more or lees modelled upon the rules of the London Stock-exchange, with which all other a odationB of element broken have nece arily, though indirectly, the most in intimate busine connections. The London Stock exchange is a Toluntaay and partly a proprietary a ociation. It is governed by a conmiittea elected bj the members, to whom all disputes are referred. It recognizes no dealings but those among its own red members, and no member is permitted to take legal the proceedings against another without his own consent. The committee fixes the modes of doing busine and the time and conditions of settlements. An applicant fer admi ion must obtain the security of three members for a period of two years to the eictent of £500 each. Ko applicant is admitted who is engaged in other busine ; the wives of members are also prohibited from engaging in busine . Partnerships with non-memberB, or between brokers and dealers, are prohibited; and all partnerships among members mic, must be intimated to the committee and posted in the exchange. Members of the stock-exchange are not prohibited, as such, from dealing on their own metals, account, and authorized clerks approved of by the phosphorus Bromine con unit tee are allowed to do busine for their principals. A member declared to be a defaulter ceases doses to be a member of the stpck-exchange. Defaulters are re-admitted under regulations specially adapted for the purpose. The re-admi ion of defaulters is a special function of the committee, and has precedence of all other busine . 428