Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1869-10-06
Gold Gambling.

lLe New lOfk IOst, OF the Z4tn, In an
article relating to the gold excitement of
last week gives the following explanation Of
the manner in which gambling in gold is
carried on, and as many do not thoroughly
understand the business the extract will be
of service to them. The explanation will
also apply to many of the transactions in
stocks and grain:
The plan is not difficult to understand.
There are hundreds of men in this country
who are in the habit of selling gold for flu
ture delivery when they think the price
will fall; and when it falls their profit is
made 10y buying it at the lower price and
delivering it, in fulfilment of their contract,
at the higher. But sometimes it rises, in
stead of falling; they have to pay more for
it than they get, and the result is loss. In
either case, during the interval between
the sale or contract of sale and the pur-
chase for delivery, the speculator is prop
erly 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
definite future time, as three or thirty or
sixty days from the day of sale, il is most
common to sell the gold tor immediate de-
livery, and then to borrow it until the seller
wishes to 'cover," that is to buy it back
By far the greater part of all the transac-
tions 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 Legitimate busi-
ness" that is, to the transactions of mer-
chants who buy and sell gold in the ordi-
nary course of trade, is startling TO those
who have not considered it. The daily
transactions of the Gold Exchange Bank
are from S1O0. 900. 900 to $500, 900, 600; that
is to say. the book transfers Of gold bought
and sold amount 10 these sums; while the
actual amount of coin and coin certificates
used in these exchanges is from s2,O0O,O00
to 50, 000, 600
1t is a fair estimate of the mercantile
business OF the Gold Room to reckon it at
the sum of all the imports and experts of
the port, and of the duties paid ON them.
These amount, perhaps. to $4,000. 900 per
day, on the average; but snch transactions
have been almost entirely suspended for
some days past. On the other hand, the
speculative business Of yesterday cannot
have been less than $400, 0O0. 600; and it is
on the average, at least sixty times as great as
that which represents the trade of the
country.
Now the whole amount ofgold coin own
ed by the banks, bankers, merchants and
spectators OF New York rarely exceeds
$50, 600, 900: and but part Of this can be
brought into Wall street for speculative de-
liveries. If q combination Of capitalists,
therefore. but buy up tnat amount, then all
who have gold 10 deliver must either buy or
borrow OF them. II they buy not only that
amount, but much more, sold 'short" 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 .'short" 10 pay them the differ
ence of price. The advance from 1877 on
Thursday morning to l55 this morning,
represents p difference of more than forty
millions of dollars on the transactions of
Yesterday alone; and if the combination
which has invested perhaps thirty millions
of dollars in the sscorner" can secure even
twentieth of this difference for them
selves, they ,sre likely to close their ac-
counts at last with large profit.