The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-11-06
WALL STREET AFTER TIE ELEGTIOY.

That 'the best laid plans of mice and men gang aft
agee" was never more truly written of any time or
place than IL IL OF Wall street just The Prcsi
DENTAL election was an event on which hinged the
fortunes OF thousands who make that locality the
scene OF Their struggle and strife for this worlds
goods. For month beforehand it was ''discouned,'
TO use the expression familiar TO financial lps and
millions were siaked upon the result How sadly
they reckoned upon the developments Of the future
many SPECTATORS pocket empty viii tell.
Fortunc-making in Wal street Is one OF the most
popular enterprises OF the hour II is bred OF
the reports, which reach only willingly listening
ears OF vast wealth suddenly accumulated by some
lucky Spectator who went down there with q
thousand dollars and converted them into a hum
dred times as many within year. The fact Is lost
sight OF that for the one who Is thus successful ana
trumpes his luck to the world there are ninety nine
vino lose all and hide their misfortune In con-
ceament. Wall street IL not place where
industry makes eati or where LABOR adds
10 captalN The amount OF wealth remains
the same from time to time, and he who plucks
riches from Its midst does at the ruin OF his
neghbor. The Erie Railway Is worth no more to-
day than II was year ago. except by so much its
traffic has increased and this even on the best of
roads and routes, seldom permits an annual divi-
dend OF more than ten per cent. Yet successful
SPECTATOR, by turning million Of Erie stock
raj times year, may make another million. II there
fore follows that his gain j. somebody elses loss for
1t does not ARISE from any legitimate earning of the
The methods Of speculation in Wall street are many
and curious. man with $1,000 goes there, de-
posts the sum with broker ana requests Its Invest
lustration. The broker puts $4,000 with his custom
er's deposit or ''margnn as II Is technically denom
mated, and purchases SIC, 900 worth oil the stock. IL
is at once seen that for every one per cent rise In
value the customer makes 500 and for
same proportion. The broker Is guaranteed against
loss by the margin" of $1,000 When this
"A N INV IA n ub
to make the advance demanded, the broker,
to save his own $4,000. Is compelled to throw
the whole upon the market and sell for what
he can get, giving his GU toner the residue after de-
Quoting his own money and his commission. This
IL the general method OF speculation; but II Ii
vars Ia dozen differ n ways TO suit the specula-
tors IDEAS OF money-making.
styles those who go down there to deal by margins,
us well rs the stock gambing community In general,
began laying their plans for vast rise In stocks as
the sequence OF General Grants election. The event
was s.dlscounted" at once. The "buls', tossed up
stocks and everybody rushed In and purchased with
them still higher me .sbalIs' made fortunes
ana then OBSERVATION-DISCLOSURES il, they threw large
quantities Of stock the market, realized ana
prices down again only to purchase at the de-
| cline, hold Off the stock to make 1t scarce anu 80
send It up once more This process they repeated
| several times with immense pecuniary success. The
"outside public" thought splendid opportunity was
also afforded them for making money; so they pur-
chased mt any price, and when figures were az their
highest bought in and laid away great "bocks," ex
pecting to sell st great profit when the election
OF Grant should send everything up to fabulous
prices. Millions OF dollars we're thus invested on
margins, and The result was impatiently awaited.
the 'buls" hatclled n plot FOR the discontinue OF
their opponeu !. Ine Duoyancy OF the stock market
was solely due TO the abundance of money. A dine
rent state OF the money market would, therefore,
knock the prop from under stocks. Making money
scarce Is no easy matter IN u city where so much
capital Is centred Two attempts with this object in
view were unsuccessful. But perseverance, IL Is
said will work wonders The ''bears" made q vast
combination. They got together from ten to twenty
mi
as collateral, withdrew nearly as many millions OF
dollars from the banks, and OF course, from crcula-
ton The scarcity Of money caused u general caiin4
an of loans and an advance in the rate OF interest.
speculation IN stocks was arrested There was no
loose money 10 purcnaSl men WIN; mnc1 'ne asa
New .'Inargns" were called ior. The SPECTATORS
had stased their all ana could advance none; or
could they pay the hign rates OF interest
Oh tho money which the brokers had 10
borrow for the purpose Oh eafy n,v s.oe cr,
waited. The brokers, to save themselves,
had TO sell out the stock for whatever price they
could obtain in the market. Those VINO nal Tue Tue
expectation that the election was the turning point
| and that they would inaly gain Election day Came
| 4 stringent money market was more depressing
| upon the lnancts VI Wall street than would nave
been the election OF Jc DAVIS had ne been the sue
ccssiui candidate for the Pie 'ioency. Yesterday
morning the artificial strngency, aggravated ~ u
wss BY the remittance OF money 10 ~, 1ie west
Aet ana stocks we're thrown in for SAFE
BY the armfui. Money, money WAS wanted ana
| must be had. Everything was sacrificed to the need
for It. Gold was sod "short' against the same event
that Ia, the spectators contracted 70 denver NJ
certain price below the then market value, their ex-
pectation being that II would fail still lower WIN tue
election OF Grant. Rut god Was discounted when
they made their contracts, although they did not
suspect II. Gold Is cash at this 1c, and hence there
IL another reason for s refusal to fall. When THIS
fact is remembered, as wen az that millions Oh gov.
! ernment bonds were carried on margins, with the
same expectation OF rise after the election some
Idea may he gathered OF tne number Oh victims ol
..laa,e duchsii who now bemoau their ill-luck