Middletown transcript., 1869-10-02
THE NEW YonK GOLD CONSPIRACY.


New York spectators contesting for the
possession of railroad involved the courts
and judges of that State in disgraceful
conflict Of authority which is not yet set
tied, and marshalled their own adherents
and employees for conflict of arms, which
was only prevented from having bloody
termination by the Intervention of Gov
ernor Hoffman and regiment of State
troops. The spectacle was disgrace to
the whole country, but the material loss
and damage were confined chiefly to the
unfortunate road which was the bone of
contention, and which has its business in
terrupted, its track partially torn up. and
its locomotives used as battering-rams by
the contending parties in fight for the
possession of tunnel. Last week a COM
bination of New York gold operators,
said to include some of the very parties
who got up the aforementioned =" AL
bany and Susquehanna railroad war;" de-
termined, by way of mingled profit and
diversion, to force rise in the price of
gold, by effecting what is technically
known as corner" in the supply, thus
compelling everybody who needed gold,
either to meet " short" contracts or to pay
duties, to buy from them on their own
terms. This they succeeded in doing to
the extent, during Thursday and Friday,
of forcing rise in gold from 132 to 1872,
thereby occasioning violent fluctuations in
the currency, disturbing the course of
foreign exchange, subjecting importers
and others who needed gold in their bus
iness to heavy loss, impairing the credit
and diminishing the revenues of the gov
ernment, and creating a widespread feel
ing of anxiety and dismay throughout
commercial circles. These effects, felt
Immediately in New York, extended more
or less throughout the country. Had the
same condition of affairs lasted few days
longer they would have been felt directly
and painfully by every class of society
Not only might commercial failures have
followed, but every workingman would
have realized by next Saturday night that
his weeks wages were worth to him SO
much less bread and meat, in consequence
of these wild doings in the New York
gold room. That matters did not reach
this extremity was only because the bub-
BILE broke on Friday. The defeat of the
conspirators is supposed to have been
brought about in part by the interposition
of the Secretary of the Treasury mea-
sure sufficiently undesirable in ITSELF and
suggestive of the possibility of frightful
abuse of power and of most dependent
condition of trade. The announcement Of
the Secretary's purpose to unlock the gov
ernment vaults and sell Sd, 1000, 900 Of
gold to relieve the distress of the business
community was magnifed by the hopes
and fears of the gold gamblers into an
order to sell $15, 900, 900, and if need be,
as much more. A panic seized upon the
hitherto victorious bulls" and gold fell
as rapidly as it rose. On Saturday, by
common consent, there was suspension
of business, ii such the doings of the
gamesters can be calird, { and which still
continues, to enable the parties engaged
in the mad strife of the three preceding
days to ascertain where they stood, anc
who was ruined and who was not Fol
the moment the business world breathes
more freely, but the precarious footing
upon which the whole credit and business
of the country rest has been brought for
chilly home to the attention of every
thoughtful man. Naturally, the frs
question that arises to everybody's lips is
what is it that gives SO much power to ,
few men, and puts the whole trade, par
ticularly the foreign trade of the country
the credit of the government and the pric,
of the poor mans daily supplies at th'
mercy of few reckless spectators?
First, and primarily, it is the effect o
having two systems Of currency of unequa
value--gold and paper. For ordinary pur
, poses of business paper is used. For Ger
= tain other purposes, paying duties to tn
: government on foreign imports among tn
| number, gold is required. Hence gold
+ which should be itself the standard Of al
! values, acquires value of its own whicl
is estimated in paper. 1t becomes a com
modify, like pork and grain; is bough
S and sold, and becomes the subject of spec
e ulation. For this the only complete rem
e edy is of course a return to specie pay
ments, which we hold should be the irs
a and paramount aim and duty of the gov
ernment as well as the people, the latte
h holding the former to the exercise of tn
strietest economy in the sphere Of its con
n stitutional duties.
But, secondly, the supply of gold'ma
vary according to the productiyeness {
l. the mines, the state of exchange and th
e balance of trade with foreign countries
IS not so with the other or paper medium
Instead of being an elastic currency, base
upon the real capital of the country, eS
, handing or controctino accordinp tn II
resources and its wants, it is a fixed quar-
d tity, regulated by law, based upon cree
it in the form of government bonds
Of system of national banks, introduced du
ing the war to meet its supposed or re-
in necessities, and in favor of which the ci
culation of the State banks (Which serve
ic so we'll local needs) was taxed out of exi
: tence, with view of compelling the il
j. vestment of the wealth of the country
government bonds has heen nernetrat.