The Sun.
London, England, 1869-10-27 00:00:00

THE GREAT GOLD GAMBLE.

These " G's" remind us of Geese, and appropri-
ately bead an account of the late transactions in
the Gold Room of New York, on which the Nation
of October 7 has two lucid articles —" The Gold
Room" and the " Gold Bubble." The cotton crop
of 3,000,000 bales was beginning to go forward, each
bale at $lOO, representing a total of $300,000,000.
One-third the cotton is consumed at home, two-
thirds abroad, and it is thus exported :

" The Liverpool cotton merchant telegraphs to the New
York commission-house—' if you can buy one thousand
bales of middling cotton so as not to cost mo more than
tenpence, or twenty cents gold, per pound, laid down here
in Liverpool, you can do so.' The commission merchant
finds that the freight, insurance, and other charges will
+o ohrbni twn cents: he can therefore afford to give
eighteen cents gold for the cotton itself. lie goes into the
cotton market and inquires the price of cotton per pound
in gold. The dealers answer that cotton is sold for cur-
rency; they buy their provisions, their agricultural imple-
ments, and their manures for currency ; they owe their
debts in currency ; all freights and expenses on their
cotton aro currency ; they can tell what their cotton costs
them in currency ; and they don't want to sell it except
for currency. The commission merchant telegraphs to
Charleston, Savannah, Mobile, New Orleans—from all
these places he gets the same answer —' Middling cotton
is selling for about twenty-seven cents a pound in cur-
rency ; no price can be given in gold.' Finding that he
cannot buy the cotton for gold, but knowing that he is
authorized to pay eighteen cents gold per pound, he next
proceeds to the Gold Room to ascertain the price of gold,
so as to know how much currency he cau get for eighteen
cents gold ; or, in other words, how much in currency he
can afford to pay fcr the cotton without exceeding the
orders of his Liverpool correspondent. He finds gold
selling at I.lo—in other words, his eighteen cents gold are
worth exactly twenty-seven cents in currency; Le can
pay twenty-seven cents in currency per pound for his
middling cotton without exceeding his correspondent's
orders."

Say he gets the order by cable on a Monday, he
then concludes the purchase, buying perhaps at 27
cents. Next day he engages a vessel, by Friday
she is ready, the loading being completed about
the following Monday. The bill of lading is then
signed by the captain, to which the merchant at-
taches his bill for the cotton shipped, and a foreign
banking house gives him the amount, less a small
commission for forwarding and collecting the money
in Liverpool. The coin being in his possession, the
merchant goes to the Gold Room to sell at 150 for
greenbacks with which to pay for the cotton he had
purchased and exported. Within the eight or ten
days, however, the price of gold has fallen to 145,
which is '26 cents instead of the 27 cents represented
by the 18 cents in gold the Liverpool correspondent
authorised ; hence there is a loss of one cent per lb.,
say on 1,000 bales, making up a deficiency of
$5,000. It might have been the other way, but this
is not what the merchant wants who requires a fair
profit on a straightforward transaction and is con-
tent therewith. His Liverpool correspondent, for
whom he buys, trades in gold ; the American cotton
seller, in currency ; and between them he is forced to
stand as a buffer the risk of fluctuations. This is
the evil of the irredeemable paper currency, in the
attempt to avoid which it was that the merchants
fell into the power of the gold clique, bound hand
and foot. The merchant, who will not run the risk
sells his gold in anticipation of completing the
transaction. In ten days he will have it, therefore he
borrows and sells at once, and on this basis the bulk
of the export business of the country has been trans-
acted, and its amount is about 1,500,000 of dollars
a day. The import trade causes similar transactions,
and both are enormously swelled by the dealings in
bonds and other securities, as well as with the West
India, South and Central America, and the Chinese
trade. The mode of doing the business complicates
and adds to its magnitude. The metal is loaned
from day to day, and the lending of one million
and a half being counted on each side is re-
ported as three millions, and before the transaction
can be completed it is recorded as six millions.
This is renewed each day over which the transac-
tion runs, and out of the average daily business of
the Gold Room of $60,000,000, some po,ocopo
represent genuine transactions, though but five to
seven millions of real purchases and sales may be
effected ; hence, the Nation argues, to attempt to
interfere with such a business as proposed by Senator
WILSON is absurd. Our readers may now perceive
on what the gold clique based their operations. On
every case of gold-borrowing the lender receives cur-
rency to the amount at which the gold then sells, as
security. Thus, when foreign trade is brisk gold is re
quired, and the holder= readily loan it for its value
in currency. This aided the bull operations, for as
quickly as they bought gold they lent it, and bought
It again from the merchants, who were the sellers,
with the greenbacks these merchants had deposited
for the loan. Thus they gradually became possessed
of the larger portion of the gold afloat in New York;
but such transactions must transpire, for the mer-
chants discovered that the same parties who had
lent them the gold re-bought it when in the course
of their trade these merchants had sold it. The
report then spread that a " ring " of operators

not only held all the gold, but had lent it several
times over, and were therefore in the position i 4
demand the return of a sum infinitely beyond the
power of all New York at once to raise. On this
being rumoured, prudent merchants hastened to bay
back and be quit of the liability at any loss, and the
market was stimulated by the rumours circulated
by the gold clique, whose object it then became to
increase the alarm. When really -Wanted, the difs;
culty of procuring the gold was made evident, an
the price advanced rapidly. Determined merchants
who felt the pressure towards the' corner" imtnecli'
ately seized the bull by the horns and swung thelad
selves out of the net. It was not a pleasant 013era:i
tion, yet they were right to decide at once
realising their loss ; but the mass, as usa3
,0
dallied, looking for an outlet and endeavouring `0
shut their eyes to the net closing around them.
day by day they felt more forcibly the insidion:',
power, they grew frightened, and many bought bac''
at a heavy sacrifice to escape a threatened baukruPteli
Every rise was an enormous sum iu the pockets
the clique, and gradually being emboldened by se;
cess they advanced the price from 133 to 143, vibe,
gold closed strong on the Thursday night preeeclii/01
the memorable Friday, a purely artificial advance
10 per cent. within a few prosperous weeks. It ll'o
then that every man who had a contract to deliver
gold felt the meshes around him, and before On sirh:o
the alternate to break the net or perish.
opened that day renowned in the history of ca to
merce. Those who first assembled by the l 6
fountain which plays in the centre of the Exchtt
were hushed into a death-like silence. The first big
arose in a room usually the scene of uproar in/
stillness wherein the fall of a pin might be bear
145 for $lOO,OOO. No answer; then another bid, %,
for $100,000; again no answer, 147 —another paas it
148—again a pause, 149—still no reply, and thefts
was that the index marked on opening 150, and eh
news flashed to all the great cities struck as nltititii
terror as amazement throughout the country-
despair came to the aid of the ruined " bears ;0
ruined they must be with such a clique in possess;ej
of their contracts, the price being left to be fibeit
by operators whose greed was as boundless as t,,,b1
hearts were callous. Then came that great ne
which instantly turned the death-like room into
ed
Bedlam, and for over two hours the battle 013/er,
backwards and forwards. For a time, howevp
the strong impetus given by the great and sneco,
;
ful advance of the " bulls" bore back the increasvg
`0
"bear" resistance till at last the voice of SrEYE3 srd 001
sharply over the tumult with the memorable 191 dr
160 for any part of $5,000,000. Its effect is the
scribed as by magic stilling the uproar, marl Bs
aG
terror-stricken throng becoming ashy pale. 'atir
the opening so now not a sound broke the deo for
like stillness, save the voice shrieking forth 1'4000;
$5,000,000! No response; then 161 for ss,o°°,'
plf
another pause, 162 for $5,000,000 ; still n°
from the spell-bound mass ; finally, 162 for OP 00
of $5,000,000. Then came a quiet voice frcwlsot
crowd, " Sold $1,000,000 at 162," and the bid 0000
renewed. The next offer was 161, and the sarneoi,
was heard in response, " Sold $1,000,000 at treri4
and that figure was not again bid. The third n'tif o
this duel was 160 for $5,000,000, and in5t313.,„4
dozen men leaped furiously at the bidder clalpeir
to have sold the whole five millions, when ta bole
horror he accepted the offer from each. Scarcell%adel
ever, had the consternation the buyer's action to s 3
to cause struck on their hearts, when therao
surge among the multitude, a new impetus had bo
given, fresh shouting men were pushing throat' 00
ring, and the rumour spread that the Treasariri;of
selling. The scene at the close was the NY otape
but a few minutes. The mass appeared ~5a030
swayed by an impulse, and like electricity th;sect
thoughts, the same hopes and fears, swale cools
and all. It was the most extraordinary sP%
ever witnessed in New York ; for, though beige
pearance the densely congregated human. 00,
were like raving maniacs, they were, in
mass of nerves, appearing instantly and voice
taneously to vibrate to a touch. The quiets rid+
that turned back SPEYER'S advance broke th 000'
the retreat becoming almost immediately 3buttiO
plete rout. Instantly the " bulls" who had a ps'
previous moment been apparently cased
noply of steel, and dealing around death w°brielv
were stripped, disarmed, and helpless. 'The sop°
ing offer of SPEYER afterwards was but the ratg,
of a lunatic, at whom men smiled compassi°ll thot
desiring his friends to take him away 1d boot
same voice, articulating the same offer, ha
five minutes before, "
"A doleful knell in the storm-swept inert.
,000°
With the "bull" clique no one would then dehacy viers
the electric prevailing notions being that they foree•
insolvent, when their offers to buy lost 3 oath °f
Those who had bought believing in the stra:, in'
ti
the clique to carry the price up to any fig ru'e,stbr
stantly changed to the " bear" side, and
qu
pressed sales ; but there were no buyers, an bell
than we write the price fell to 135, leaviagua rola ;
the exploded bubble a mass of perplexitY ot1013:
the damaged credit, extending even to trweeapyievio
and involving the reputation of wen 14e,,
the highest places. The Nation adds I:traor'i
York bankers believe they see in these etbe ahead
nary operations carried almost to a success
.0 Patp
of somebody in authority.—Anglo-I 1
• J‘'
his I) 01
Mark M. Pomeroy, well known underpoiery
name of "Brick," is said to be hopelessly ill.
possessed that sort of ardour to be found in Pars" Bled P.
cl 5
a
low, who has also been very ill. His energy ores g,
through all difficulties, and he established, in alopeP.,ici
pointof view, ono of the most successful of Aeleri.cs b is frojrio
What is most rernarklble about Mr. Foraer°Yi tebece
id
abstinence from any intoxicating beverage and itoe ci of
",
any form ; yet in the extraordinary inteniPecriteove'ro,
language he made up for the want of Quo 0% 9000
an excess in the other. He is a thorough-goillgbig p6r/1e
toso that of
and will at least be missed if he is not a loss
A Maine letter says it is now definitely 101°. t 3J,:r,
vernor Chamberlain will appoint ex-Senator lishep.l:o
rill to succeed Mr. Fessenden in the Senate.--: p,rooPilo
dall, of the Episcopal Church, has ialceio eats
charge of St. John's, in Denver, Color,a:ollo;earct.
also become principal of-the "Young Ladies
The Neapolitans have been puzzled by the fu rival
ersop of id'
and Mrs. Layard. They know him to be al ',jai.
portance, but they do not know what to et'
rage; 13;5'0
Layard wo'nt do, as he is not in the Peeoi I,OPB
evening paper hits on the happy the him as the illustrious General Layard, rt 113,4
d
Nineveh is satisfied.—Prince Hubert and
expedient we
coo
Tuesol
Margaretta arrived in Naples on el
1 Pft
at half-past five o'clock. The BeY3,_ rked ° • Dt.
splendid passage from Genoa, having eawando, !Igo./
the Flavio Gioja at twelve o'clock on Stl,,.arayell!,ooV
At St. Louis, Mr. Berry, publisher of the 1.4.,;/000 de'
Freeman, has sued ox-Governor Fletcher to tr.erf
gomery 650,000 damages for personal violet, `.:;.oot,ge:rogo.
struction of his printing office in 1866, whoa:Li:lo
commanded the militia at Lafayette. A !ard 1:1°
Convention met at that city; Mrs. Julia ;:trs_floyfrfo' ;to
Boston, president. Addresses were made bY„..e'rsuier,
01)
Minor, and Miss Susan B. Anthony.--J.
Fran G•
the celebrated American artist, has settl.edfisamily,
the _ irto;t, u:
States Consul at Lei sic arrived in
on-the-Maine, for the winter, with Woo, i 0
Welch also, a noted American landscape , the"l,o;
ing the winter with his family at Frankfort.
to 11,00,00.00
—Mrs. Ex- President Lincoln has return
an
lop 10 Oa
on-the-Maine.—Mrs. Maxwedel, a Gerratllveraerl offer°,
to establish a horticultural school Mhos
United dor
States, and for the purpose sbe,dot t fee
some acres of excellent land by theiphroocioverotbbecoo
nell University at Ithaca, and near
dom of which will be extended to the girls,
members of the horticultural school.

Dl°
MARSIIAM —On the 21th ilinsltß.,lthlieSkon. DOrs
WS. J°llll 1
J't'
. 1
of a son. .. gt- g'
0. f
PITMAN—On the 25th inst., at Richmond, A
man, of a son.

MARRIAGES.
ii
Elizabeth,
James Elias Perron,
PERRE
_ro N—ALLERSON-011 the 24th inst., a- to . 0,
.. t St. AlVoili
Youngest daughter of of,homas „lii,
Flig:2sate-rise. , oieg"llili,
PoLLAttp —I).A.REz -On the 23d inst., at Vol. 09,1; WO
Islinglikooo,
\Parminst~.i•, Andrew Pollard, Esq., °f j'°•-o'l tLI°
Loudon, to Agn 9 Isabella Mary, daughtor,
Louis Pare 7 Eq.bn
'' iefi'
:.9 gATBS. i 10)5
CARDus —On the 25th inst , at Barwell Celli I
a 1. Israa(V'
en-Thames, Thomas Cazd'us, Esq., mod °6+" of
KING—On the 25th inst., Peter King, .(1"' 5,144
worth-road, aged 66. lc lieV/115'
LEwts—On the 25th inst., Capt. Frederic
of Tho Mall, Chiswick, aged 8. •Vii
*ll)°' a‘l
~...051 A-- ~ .trll' „
London: Printed and Published by WlT'''. No. it'il' 000'
of No. 112, Strand, Printer, at Tits Su N Office
of is
in the Precinct of the Savoy, in the Our"
Wednesday, October' i 7, OM