The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-09-27

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exchanges during the excitements of the cor
ner in gold and combinations in stocks that
have been going on for the past three or four
days. The scenes of Thursday, it would seem,
were illustrated by greater excitement even than
on the previous day, when the ''street" was
suddenly startled by the rapid descent in the
price Of Central Railroad stock, and the equally
rapid advance in the quotations Of gold.
THE GREAT ADVANCE OF FRIDAY.
The New York Evening Post Of Friday has
the following very interesting editorial:
The large advance in the price of gold during
this week is due entirely to speculative causes:
The wealthy combination thst holds nearly all
the coin in this city purchased it, indeed, when
the price was temporarily depressed, and when,
therefore, q reaction to some extent was natu-
ral. Besides, the condition OF our relations
with Spain is such that they may have had some
small hope Of war alarm, which would enable
them to sell at high premium. But 1t is
plain that their schemes have been laid with
skill, independently Of such chances; and that
they mean to make sure profit out OF other
speculators, whether assisted by events or not.
The plan is not difficult to understand.
There are hundreds of men ip this country who
are in the habit OF selling gold for future deli.
very when they think the price will fall; and
when it falls their profit is made by buying 1t at
the lower price and delivering 1t, in fulhment
of their contract, at the higher. Bot some
times it rises instead Of falling; they have to
pay more for it than they get, and the result is
loss. In either case, during the interval be-
chase for delivery, the sprculator is properly
said to be "short Of gold;" he has none, and
must obtain it in order to fill his contract.
Instead OF contracting for delivery at def
mite future time, as three or thirty or sixty
days from the day OF sale, 1t ls most common
to sell the, gold tor immediate delivery, and
then TO borrow It, until the seller wishes to
s'coyer," that is to buy it back. By far the
greater part OF all the transactions in gold are
of this nature; that is to say. they are bets on
the future price OF coin. The proportion which
these bets bear to what is called the "leg1tl.
mate business" that is. to the transactions OF
merchants who buy and sci! gold in the ordi.
nary course Of trade, is startling to those who
havs not considered it. The daily transactions
OF the Gold Exchange Bank are from $780,
OOO 600 to 5000, 600. 900; that is to say the book
tranefers OF gold bought and sod amount TO
these sums, while the actual amount OF coin
and coin certificates used in these exchanges
is from 50 600 900 to $3 600 010.
1t is fair estimate of the mercantile busi-
ness OF the gold room to reckon 1t at the sum
OF all the imports and exports OF the port, and
of the duties paid on them. These amount,
perhaps, to 81 600 600 per day, on the average;
but such transactions have been almost entire
ly suspended for some days past. On the other
hand, the speculative business OF yesterday
cannot have been less than 81 0OO, ,OOO; and 1t
is; on the average. at least sixty times as great
as that which represents the trade OF the
country.
Now the whole amount of gold coin owned
BY the banks, bankers merchants and specu-
lators Of New York rarely exceeds $40 600, 600,
and but part of this can be brought into
Wall-street for speculative deliveries. II o
combination Of capitalists, therefore, but buy
up that amount, then all who have gold to de-
buy ot-orsIy tl.~4 ~rse~-., -L'~/ .A~-l>-->-.
sold .'shortS by the other gamblers around
them, they have the latter at their mercy, and
can raise the price, for the time, at their Will.
compelling all who are ..short" TO pay them
the difference of price. The advance from 1877
IN Thursday morning to 1855 this morning,
represents difference OF more than forty mil
lions on the transactions Of yesterday alone;
and If the combination which has invested
perhaps thirty millions OF dollars in the "cor-
ner' can secure even twentieth OF this dlf-
ference for themselves, they are likely 10 close
their accounts at last with large profit.
To do this requires boldness and Skill IN no
common degree; but it Is plain that the ring
now at work are not wanting in these. All
mercantile morality apart, it is as impossible
to watch the slow development OF their plans
for some weeks past, without certain kind OF
admiration, as it is to read the exploits OF Jack
Sheppard and keep in perfect sympathy With
the thief-catcher. Indeed, the most ardent
detective will scarcely claim that Jonathan
Wild is, of himself, more admirable than his
lawless foe; and, however the "bears" in gold
may growl and cry for government interference
in their behalf, it will be impossible to persuade
the public that they are worthier animals than
the ''bulls." 1t is q case in which the govern
ment and the people may look on With perfect
indifference, and admire dexterity and cunning,
since nothing else that is admirable is likely to
appear.
Il is true thst some merchants cannot be
quite indifferent. They have foreign bills to
negotiate, and all business in them Is stopped
by the irregularities OF the gold market. They
have imported goods to pay for IN coin, and
can neither buy nor borrow it at any reasonable
rate. They have food or cotton to ship on
commission, and their markets are seriously
derenged. he money market, too, is affec:-
ed, the gold gamblers paying such rates fer
funds as defy the competition of business bor-
rowers. Even the credit OF the government
and of our currency seems to be attacked; for
greenbacks have nominally deprecated nearly
ten per cent. within three days. These arc
evils, and give certain plausibility to the
clamor OF the bears" that the treasury shall
come to their ri lef.
But look forward little. If the treasury at
tends to its own business, aud leaves the gam.
biers to fight their own battle, what will be the
result lhe Inconvenience OF the situation,
at worst, can last but few days. Gold will
come from Europe, or the combination will
break down for wlat OF money, or by Some Of
it's members cheating the rest; or other specu-
lators will stop selling "shorts," and the no.
tive for holding 30 much capital idle will cease.
In no case an the embarrassment OF trade last
many days, and at its end little activity will
compensate for the short interruption. The
only sufferers will be those who have rsked
their money on the great roulette wheel OF the
''gold indicator" and lost it.
On the other hand. if Mr.. Boutwell, should
step ilto the ring, in obedience to the demands
of the "bears" and their journals, what will he
the result ? The treasury will be again sur
rendered to gold gamblers, and all principles
of public policy abandoned. A contest will
ensue between the secretary, whose resour ;es
are precisely known to every one, AMI secret
conspiracy OF capitalists, whose resources are
known only to themselves. They may be or
become strong enough to buy what Mr.. Bout
well can sell, and, If so the treasury will simply
be depleted and defeated, and it's credit injur-
ed. But, il not. there will be general panic in
the money market, immense fortunes will be
made by one class OF business and lost by ano-
ther, through no agency Of their own or the
laws OF trad. and the disposition to gamble in
''shorl" gold will be prodlgiously stimulated,
by the conviction thai it is under the special
protection of the government; conviction
which has already done more to promote such
snecnlatiens and the fcOrnerS" provoked by