It produces an uncertainty with regard to rates which prevents stability of prices, and is apt to promote the interests of the unscrupulous speculator at the expense of those whose business methods are more conservative.
If the test of the settlement were not frequently applied, speculators who were unfortunate would be tempted to plunge deeper until finally some became insolvent for large sums. As it is, the speculator who has incurred losses beyond his means tends to be discovered before his creditors are heavily involved.
This exclusion of the European land speculator and denial of the right to buy and sell land and of freehold tenure was held by all the authorities to be essential for the moral and material welfare of the inhabitants of a land where the duty of the white man is mainly that of administration and his material advantages lie in trade.
There are a few who remember his little patch among the walnuts, which he let grow up till he should be old and need them; but a younger and whiter speculator got them at last.
He became the victim of a certain "earnest-frothy" speculator, who induced him to sell his little Lincolnshire estate at Grasby, and to invest the proceeds, with all his other money, and part of that of his brothers and sisters, in a "Patent Decorative Carving Company": in a few months the whole scheme collapsed, and Tennyson was left penniless.
He was the son of Archibald Cochrane, 9th Earl (1749-1831), who is remembered as a most ingenious, but also most unfortunate, scientific speculator and inventor, who was before his time in suggesting and attempting new processes of alkali manufacture, and various other uses of applied science.