The Hawaiian gazette., 1869-11-24
The Gold Room.

The gold room in Wall Street is only
another name for gambling room. Men con-
gregate there to bet upon the price of gold,
that it will be higher or lower as the case
may be, in the next hour, day or week
Men buy gold and sell gold, yet no coin is
exchanged, no gold is handled in the settle
ments. Tbs transactions are merely noted
in the betting book of the gambler, to be
passed over at the close of the session TO the
Gold Exchange Bank for settlement The
phrase ''sell Short" which means, TO sell that
'chieh you hare not, expresses in full, the style
of business that is carried on.
The corner that was made in gold on the
oath Of September, has revealed some curl
Gus facts showing how little real connec-
ton there is between the values of the gold
room and the legitimate value of gold out
side. On that day the merchant who at noon
was obliged to buy gold for paying duties at
the Custom House had TO pay at the rate of
100, yet deferring two hours, and the same
purchase could have been made at 1S0 The
mere rumor in the gold room that the Gov
eminent would sell gold in the open market,
pricked the bubble of the gamblers, and put
an end to the speculation.
The value of gold, in comparison with 9TH
er property, as prices at present range. is
rated by brokers at 1873. In exchanging it
for other property this is, its fair equivalent,
and hence it will neither rise nor fall much
from 13S, until the currency is contracted
for the purpose of bringing gold and green
backs to an equality.
The bulls succeeded in forcing up gold,
and reaped harvest from it, yet there was
very little gold in New York at the time,
and those who had actual gold to sell, could
not dispose of it.
The New York Tribune says:
While they were bidding 16O to 164 for gold
last Friday, men who had the article for sale
vainly traversed Wall street trying to sell ac-
tual gold in their possession for $50 but found
no takers. merchant in the California
trade who was directed by telegraph from
San Francisco TO sell gold in his hands, did
his very best in Wall street on Friday, and
could only obtain 14l5S, while the gambling
"bulls" were pretending that they wanted
to buy at 162.
The New York Sun asserts
Again, gentleman who presented mes
sage for transmission to Europe by the ca
bic, and rendered payment in greenbacks,
was informed that they could not accept
them, not knowing what rate to place on
gold. The message being of some import
ance, he went to Wall Street to purchase
gold, but was unable to purchase any
The mode of business at the gold room is
explained by the commercial writer of the
San Francisco Alta, viz:
The Gold Exchange Bank acts in double
capacity. 1t is bank of discount and de-
post, doing regular business at the Bank
Clearing House; but it also acts as a clear
ing house itself for the Gold Room, and by
doing so affords great facilities for the trans
action of business. The members of the
gold room all do business with each other,
and each makes a statement of his transac-
tions and sends it to the Gold Exchange
Bank by 121l o'clock the following day.
The nature of the statement is as follows.
STATEMENT OF JOHN SMITH co. TO THE