The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-10-05

the purchaser on the morrow, had no gold to
sell; ana, & except that they We're rich men, able
some way and deliver 1t al the appointed time.
they would have had no more right to sell the
gold than :, any ny boot-blaek, with only his days
earnings III Ills pocket, In the City Hall Park
The sale was made; gold had to be delivered.
the sellers (lllc bcals) had no gold.
Ihey had. first. to obtain the gold to deliver
credit.
They had, second, to secure themselves
against loss OF the. one per cent. difference
between the price Of gold on the day Of agree
ment and the price they had agreed to deliver
i for. Or else they were, inevitably, losers by
the transaction.
The first thing the bears did, after selling
short In the way described, was to borrow the
gold wherewith to make good their deliveries.
This borrowing process was effected through
their brokers, with brokers representing the
parties having the gold 10 loan. The thing
that the gold market, finder .the influence OF
their short sales, would decline, 30 that they
could go and buy next day, or the day follow
Ing TINT an amount of gold equivalent 70 that
1873: If they could do this, they could return
their borrowed gold to the lenders and retain
profit Of onc-half OF one per cent y;', 4
Io the chagrln OF the bear operators, their
short sales filled to weaken tho gold market
SO they had to renew their loans day after lay,l
and trust to the future. Weeks passed /; they
continued their short sales and continued bor-
lating and apparently weak, did not once de-
scend below the rate which existed when they
frss began their operations. ~. .....,..t,
They were disappointed, but. still utterly
They failed, all the while, to find out the fact
that the bull clique Of operators, with ten or
twelve millions of gold In their possession,
brokers, the goldthat they borrowed, and buy
Ing buck again, through another,set Of brokers,
- Il Tfs S bears I st last ST became ehraged. Fhey
sell 4l2, 600 600 of golitshort. They sold It
short; and without their knowledge the bull
clique took nearly every dollar Of It. They
ant ad TO borrow the gold and the bull clique
back again, OF course, on the day of delivery,
through their brokers, who had bought It.
stu the market, thus entirely in the hands
go down In favor Of the bears. On the con-
trary, tho immense short sales of Wednesday
disclosed to the bulls more fully than before
how completely the bears and oil classes of
speculators besides outside the bull-ring were
In their (the bulls) tolls. 80,
me TThey raised ths}price Of gold in the market
must not omit to consider that tho bears, who
had kept on borrowing over and over again the
gold necessary to make good their contracts,
mad, some time or another, to buy the gold to
endeavor bad oil along been to break, the mar
ket down, buy the gold OF reduced rate, and
thus make their profit But, when the market
rose against them, imagine the CONSERVATION
lSi these men, who bad by that time engaged
lions q '' 'I''T'T=TD Fff'I-- : -.
They made one more venture another short
sale sale Of five millions OF more. Again the bulls
took,lt. But when tho bears went to borrow
the gold to make this last sale good, the bears
stopped lending; there was no gold
" This was on Friday.
t6ewhoe bisihess Thelr l' necessities a id S We're u
700 well known. up went the price, higher.
higher, higher. The. tempest thFentened to
Then It was that Secretary Boutwell,. the
Mlay irIend OF these bears Of the Loyal League,
iGame 70 the rescue with the promise of four mil,
IL % was MhsfeSisa tsf tS M 70 relieve their Gbon
,Tnl Street and It's envlrons, which stII makes
''g A; bulls run mp gold too high-therefore,
80 many fixtures resulting from the gold trans
actions. Many Of the. benighted bears who
BID for and agreed to take gold the extreme
take It after all. BUT the bull clique, notwth-
standing their excessive ayarfce, arc presumed
tohave emerged bother OF than their victims.
resulted from this crash in gold wi was FOL. FOL.
lowed by the panic in stocks. Men and. firms
were compelled to realize money on railway
6noreS, winch, when forced heavily upon the
market, suffered. The fictitious values OF
many of them burst at once, and the real vglue
Of others fell under suspicion, or were sa3rt-;
feed from necessity. - - =
The nominal depreciation of railway shares
above is estimated to be not less than two hun
dred millions.
The stock panic, far more than the gold
panic, affects business men and the. rural
banks throughout the country. In, cities such
as Buffalo and CleVeland, arid TN the cities
throughout the West, merchants and banks
have lost heavily-eVen, disastro1sly. The
banks here and In Philadelphia arc not, It is
believed, cramped as yet by the downfall OF
stocks and the great firms dealing in them; II
themselves by the retention Of heavy margin
loans on railway shares margins which have
constantly to be k5ptig00d, as such shares de-
cline: It is the keeping good these margins
which drains the resources of dealers; and
whenever q house to which the loan is grant
ed fails to keep good its margin the bank has
the privilege Of selling the collaterals forth
with for its own protection. The price which
the securities thus -bring, together with the
margins already In the banks possession, will
generally make good, or nearly good the risk
which the bank has taken.
Sull, there Is yet room for doubt Us to what
4,- >- - - ~
VTRAITs OF, TaE oHfKa l14E.
BY One Who Knows. a.
t-,-,., U.-- sl-r':