The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-09-25

O'Clock the combined forces seemed TO take rest,
there seeming to be o sort OF mutual truce after
the excitement Of the morning. Gold fell ana
as 1t descended the "bulls'' threw up the
sponge, their brother gamblers at the same
time striving to conceal their weakness by
smiles. The welcome telegram from Secretary
Boutwell, sent the reckless plunderers reeling to the
ground, and the financial robbery was timely nipped
in the bud. The horde has been promptly dealt
WITH and the result VIII prove satisfactory.
AN EXPLANATION.
Though apparently wrapped In mystery, the
roguery is not dInicult to comprehend. Some
men sell gold for future delivery In the
hope that the price will fall. When 1t does
SO their profit Is made by purchasing IL at
the lower price and delivering it in sfulaIment Of
their contract ct the higher Now and then 1t rises
instead OF falling, and they have TO pay more for 1t
than they obtain, and the RESULT loss. But no mat
ter In what aspect during the interval the specula
tor Ia shOrt OF g0ld but nevertheless obtains 1t In
order to carry out his contract
Instead OF contracting for delivery at definite
future time, as three or thirty or sixty days from the
day OF sale, ia most common to sell the gold for
immediate delivery, and then to borrow IL, until the
seller wishes to 'cover"-that is to buy IL 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 pro-
portion which these bets bear to what Ia called the
Legitimate business''-that Is to the transactions
Of merchants who buy and sell gold In the ordinary
course OF trade-ts startling to those who have
| not considered It, The daily transactions OF the
Gold Exchange Bank are from 100000 TO
5000 000 000that Is to say, the book transfers OF
gold bought and sold amount to these sums, while
the actual amount OF coin and coin certificates used
in these exchanges Is from 900 to So 900 900.
| The whole amount OF gold coin owned by the banks,
| bankers, merchants and SPECTATORS Of New York
rarely exceeds $40, 600 0O0 and but part OF this
can be brought into Wall street for speculative dev
| cries. If combination OF capitalists therefore,
| but buy up that amount, then all who
| have gold to deliver must buy or borrow
Of them. If they buy not only that amount,
but much more, sold "short' by the other gamblers
around them, they have the latter OF their mercy.
and can raise the price for the time at their will,
compelling oil VINO are 'short" to pay them the DIFF
ference Of price. The advance from 1876 Thursday
morning to 1856 yesterday represents difference Of
more than S40 900 on the transactions OF that
| day alone.
| SUSPENSIONS.
| The result has created profound sensa-
| ton throughout the entire community. lmme-
| dlately after the news had become known con-
| fdence was somewhat restored, though many still
fingered around the Gold Room In anticipation Of
|
lions cannot be known in day. OF course the most
idle and Injurious rumors were put in circulation.
To be sure, there may have been many failures but
| temporary suspensions cannot be regarded In that
light. Indeed, it Is unfair to put forth statements
| calculated to damage the credit Of many firms i'm
| perilled by the movement.
1t is entirely impossible to give any authentic list
| OF the supposed failures ana suspensions In fact
the reports prevalent about firms scarcely
| be relied upon. To be sure, several brokers closed
| their doors. but new statements will be revealed
to-day. Others were compelled to suspend payment
on their gold balances: but the fact is that II
physical mpossblty yesterday, and that fact alone
has given rise to great deal OF the embarrassment
THE GAMBLERS IN THE RING.
AS already mentioned there will be very little
| sympathy with the victims. It was desperate
struggle between two gambling factions, either be.
| ing bound to win. Altogether 1t was miserable
| ana degrading spectacle injurious to trade and
damning in Its character. Princely fortunes have
been lost ana won but the moral Ia the same. 1t Ia
unfortunate that two such despicable In
| stitutlons should eXist-two cliques OF reckless
conspirators, who little about disturbing tho
peace Of the community as perhaps the Individual
members OF them think OF committing suicide. The
prudent energetic action on the part of the admin
istratlon has elected the most hearty recognition
and 1t is sincerely to be hoped that the groundless
panic, started for the benefit OF few operators has
| been satisfactorily disposed Of. Such was the
excitement long after the announcement OF
the telegram that immense crowds still thrOnged the
Streets eager to ascertain the freshest intelligence
apperLaining to the affair. When gold descended to
1891 all hopes were abandoned, and the great
| excitement which had hitherto prevailed quietly
toned down. Little remains to be told. Reckless
ness, plot and roguery have done their work In
Wall street. adding but another chapter to the long,
sad list Of crimes characteristic Of that locality
| SCENES AT NIGHT.
Wall street was virtually open all last night,
although most Of the brokers had gone home.
Half the houses reported to have failed have only
temporarily suspended payment, and that, too
owing to the inability Of the Clearing House to
attend to the great flood OF business that inces.
sanity poured. 1t is estimated that the amount
OF gold bought and sold yesterday exceeded
s5oO,ooo,ooo, and as that sum Ia divided up
In lots ranging from $4,000 to 100000, the manual
labor Of the clerks be something enormous Most
OF the clerks were engaged the entire night q cir
cumstance Of rare occurrence-one only demanded
| by the exgencies Of the occasion. When state.
ments have been properly made out the prospects Of
some may lie yet brighter. So ends the panic.
THE CLEARING HOUSE,.
At late hour last night we received the following
notice from II. NJ Benedict, President of the New
York Gold Exchange Bank
NEW YORK GOLD EXCHANGE BANK,(
| NEW YORK, Sept "a, 1869.
The rules Of the clearing department Of the bank
requires the payment OF all balances to the bank be-
fore the payment OF any balances by the bank.
Owing to the failure Of several dealers the adjust
ment OF the accounts has been delayed. The bank
has large surplus Of both gold and currency on the
movements Of the dav and will pay out to dealers
'''' 'Ns a''0uH' III X BESgD1cT President
| THE EXCITEMENT IN BROOKLYN.
Brooklyn did not escape the excitement which
prevailed among these 1nanciers, and the remarka.
BILE fluctuations in gold was the alLabsorbng topic
OF conversation the boats in the cars in saloons
and on the streets. Every one appeared to be deeply
interested In the matter, and awaited with feverish
impotence to learn the latest news from
Wall street. All sorts OF rumors were anoat during
| thu oftarpnon md Anollv n ranorfed that tho