Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1863-03-07
WOrtester Daily Spy.
THE DAILY SPY.
the Gold Market Panic.


money article, speaking of the operations Of
Wednesday, says -
"a well-known clique of spectators,
known by the name of the Washington party
is said to hold some two millions of dollars.
These, and others in the same predicamcnt
stroye hard, but Intellectually, to stem the
downward tide. There was no resisting the
effect OF Yesterdays legislation. BY the law
of congress passed yesterday, not only does
every purchase or sale of gold pay tax larger
than a fair profit on the operation, but banks
and bankers are expressly prohibited from
lending over par on gold. Spectators are in
fact obliged to carry their own gold-to invest
of their own money one dollar for every one
per cent premium on the metal TO buy
$4,000 gold now a man must lay out $6500
Under such circumstances speculation for the
rise becomes hopeless, and will be aban-
doned. Several leading operators in bullion
whose speculative purchases have deprecated
the national currency very considerably,
are already closing their accounts and pre-
pairing to resume their old business in decay
ed apparel. 1t is impossible to say how far
the decline in gold may go. 1t is pretty well
ascertaned that from twenty to twenty
millions of gold are held under hypothecation
by our banks and bankers. The New York
banks, which showed a specie average of over
5000, 900 last Monday, and which had lent
$1,000 900 to the government, had only $22,-
900, 600 in specie when they suspended in De-
cember 1861. They may have swelled this
reserve to $25, 900, 600 since. 1t follows that
100000, 900 of the gold held by them belong
to individuals, and it is fair to presume that
advances have been made upon it. From all
that we can learn suppose that from 125
to 100 has been lent on the greater part of
ha oil
ed in, and the gold sold in open market Who
will buy it, and pay the tax, besides locking
up $1,000 of currency on every $4,000 gold?
The acutest minds in Wall street would not
be surprised if, under the operation of this
new law, gold fell to l25."
The New York Commercial of Thursday,
has the following on the gold speculation =
"Gold mas been falling gradually since the
10th ult., under the effect of congressional
enactments-the tax bill, &c.-and yesterday
it closed at l65. The market opened at that
figure this morning, and almost Immediately
thereafter fell to l5l. This caused the most
intense excitement and the stock exchange
and brokers' offices were soon beleagueredhy
a crowd of interested parties, some of the
timId anxious to dispose of their auriferous
load, and others devising ways and means by
which the depressed market might be inflated
L ne GuilS at CDce went 10 WOrk ana by means
common to the craft ''worked" the market
until about noon gold "touched" l57. Then
the fun was at its height. The Shylocks OF
the American bourse continued all their eff
forts to still further initiate the price of bullion.
In their hands it was a shuttlecock, and went
up and down with persistent regularity. Then
was no time for bona tide operations. The
market was too volatile to risk an honest sale
or purchase Hence most of the transactions
were 'hyerS" thrown out to effect rise in
he price.
The lockers on were intently amused, and
those who unders TODD the game watched the
ups and downs with extreme qualification.
As each spectator emerged from the Sanctum
of the money gods he would be met by a bull,
generally of the Israelitsh persuasion, who
would Immediately seek to counterfeit the
dread announcement of fall in the market.
Offers OF fabulous amounts at good figures
would be made in tine hope that some one
would be gulled. But those that were wont
to wink at the auctoneers AN a-half ANA,
half preserved a rgdity Of the facial and
'bhnkial' muscles; and gave no sign They
kept themselves and their pockets as closely
sealed us possible. One jew who had made
about 100000 in the bullion business, CON
tessed, with tears in his eyes, that he had lost
all his earnings and was ruined. Many 9TH
ers, doubtless, will retire to their couches
this evening mourning the loss of their earn
ings OF ill gotten gains.
Zone incident occurred worthy of note and
characteristic of the locality. new COM
petitor for the game made his way through the
crowd to the inside of the sidewalk, and cried
out to those below, sell $4,000 at 62;' the
answer came 'done'-again sell $4,000 at
81 3-4;' answer came done; sell $4,000 at
81 l-2;' done and so on until $4,000 were
w - In n,.1io -
man, minated 10 him that his loud voice
should not be tolerated. as it was attracting
too large crowd, and that if he wanted to
operate he had better go below. His reply
was 1 have watch in my pocket-do you
suppose would go down there?'"
The New York Herald of Thursday gave
this account of the panic =
can astounding panic has prevailed for the
last two days throughout all that region bor-
dering on Wall street, and in which brokers'
offices do most abound. Unlike all other pam
les, which subside almost as speedily as they
are created, this which has now seized upon
the innumerable host of large and small gold
spectators bids fair to be lasting and promises
to bring hundreds of the small fry dabblers to
grief. 1t first made its appearance in the
ranks VINO had taken up their usual ground
around change on Wednesday morning; but
eiN NV" "H'Nh ouose4uenGy caused SuCll dire
commotlon failed for a time to make any
perceptlble change in the state of affairs. A
little later, however, there was a noticeable
lengthening of viSages and a stealthv SHINING
away from the now really perturbed and
anxious crowd of the long beaked chaps. who
made big tracks to the various brokers' of
fees. These were soon followed by a whole
mob, now divided into different packs. ac
cording to the direction In which their Drev
lay, and the rush was SO great that it became
dangerous for a casual passenger to enter one
of these narrow streets. This was the result
of the effect which the new banking law has
had upon gold speculation, and which brings
up all standing those who have of late de-
voted their whole time to this one all absorb
ing pursuit. Yesterday the panic increased,
and from up town and down town, from
Brooklyn and Williamsburg, and all around
came thousands who poured down Wall street
and scattered themselves here as from a COM
mon center.
$50 great was the rush that it was almost
impossible for any one to elbow his way
through the excited mass, who fumed and
frettod, and pulled, and pulled their hair,
ald cursed with a confusion of tongues that
would have slammed the gathering Of Babel.
The excitement was not alone increased by
the vast accession of cormorants to the crowds
of the previous day, but by the increasing de-
probation Of the premium on gold, which babe