The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-10-26


no doubt that we have been overtrading, and We
mad either to pay for it with gold or witn tile pro-
ducts Of the country. NOW, we raise certain
things-cotton, wheat corn, putter, cheese. The
great staples OF the country, however, are cotton
wheat corn and tobacco In cottol we compete
to certain extent with Egypt and India, but we
have far greater competition IN corn and wheat
That competition comes ro tne 1Sck Is anu an sae
between those countries and America that 1t en-
trely depends upon the price OF gold whether we
can enter the markets against tnem or not The
reason Is, that they have cheap labor In all the
ports bordering on the Mediterranean and water
transportation to London and Liverpool while
we have high-priced labor and long railroad trans
portation to the seaboard. ~ Is tne premium on
gold that equalzes the difference. AS the pre-
mIum goes up beyond the leyelling point-on that
depends whether we can send the grain abroad
or not.
Mr. Could. With gold at a6out 145T We
shall he able to send produce TO the Liverpool
and London markets from America, but with
gold at 125 the Mediterranean and Black Seas
would have the whole trade, and our iof-
eien debts would have to be paid with gold or
bonds. with gold at high price, the farmers
would get good price for grain, the railroads
would get good price for transportation, the
manufacturers would have good market out
would be able to buy Of them. What we raise In
the country is what you can ship abroad but q
case of goods you cannot ship abroad, you have
| to use them here.
M'CULLoCH NEVER RUINED TIE COUNTRY.
Mr. Gould. All, Mr.. McCulloch understood that
better than most Of them. he 9eVer did anything
during the fall Of the year when the crops were
being moyed-I mean that he never did anything
to depreciate the price OF gold On the contrary,
always kept up to o nras OF iaS ha was r
years have given you all about the bull side
| will now refer to the bear party IN gold. This
bear party Is made up In great measure OF Tor
eign houses who expect r 70 sen soG az
cover their short sales OF gold by buying our pro-
duce at the deprecated price OF gold.
THE FOREIGN BANKERS AND THE RADICALS.
Mr.. Fisk. You take hundred thousand dollars
to foreign banker and get him to send 1t to Eu-
for YOU He win gve ss HIS snst S aSSs The
moment he has sold that bill TO you ne becomes
bear In the market because be can wait forty. y.nve
days. He looks forward to the end OF that forty
Interest in the City OF New York are bears in gold
The greatest rebels during the war were the mem
bers OF the Gold Exchange. The members OF the
foreign exchange banking house were the origi-
And ney oy e she
Union League Club, who thus attempted 70 rum
the business Of the country, not understanding
what was required to level the exchange between
this country and Europe. /
THE BEARS FRIGHTENED.
Mr.. Gould. The bulls never expected to carry
gold over l4o or l45; but when they got 1t up to
That point the Radicals got frightened; because,
you see Boutwell, was unableto sell gold when
he was here, and that frightened some OF the
bears.
in the business ?
GOULD ON BOUTWELL,
Mr.. Gould. He did what lie had no business to
do In interfering with the market at all. Never
was there such chance for nation to get rich.
But when he broke down the price OF gold, then
down went the price OF crops, and we have got 70
lf we were spending as muoh money as we are
spending now, We should have got finely scared.
But now you can spend money because all the
people are getting rich, for everything you ges
Of gold we ought to let everybody get rich; and
then when the crash comes nobody will suffer. In
fact there will be no crash. The only trouble with
this rise In the price OF gGa IS Una. IL m mas aU
Old Boutwell, has no more brains than an oyster,
or he would not have interfered. Let gold fall to
ll5, and you can't ship thing out OF the country
that will give you dollar: Wnen goid was ~
pound; when gold fell, cotton also fell eight or
nine cents pound. think that very soon they
will be burning corn in the West for fuel-as they
were burning It four or five years ago.through
should have held it there Just as long he could.
THE CLIQUE AT THE BOUTWELL, DINNER.
Mr. Could And 1t was not that alone The
moment government interferes there ls also
loss OF confidence. When the finance minister OF
q great government steps in to interfere In
movement of the market first on one side and
then on the other, he loses all respect. But as
was saying about the bears-they were joined oy
the Radicals and the programme was TO get Bout
well up to this dinner Of the Union League Club.
nh W.
over Boutwell,. The Radicals invited parties VINO
were short Of gold-there was MI. Low, the Tea
merchant, he was short. When he got up and
gold. eyery man round the table was instructed
TO make q tremendous capplng OF nands; But
after this meeting with Boutwell,, the bears began
to get discouraged and endeavored TO cover
their gold contracts. That made the panic which
carried up the price Of gold. 1t was not the
bulls who commenced the panic. COM
menced selling gold at 1o7, and sold up to l62.
was o constant seller all the time: But 1t was
the bears who got frightened and raised tne price
themselves. The bears got frightened over the
great sales OF gold which they had not got. II
you take $50 millions OF short interest, wltn only
is millions Of actual gold In the market, you
NAV soon get the bears frightened, because they
know the gold isn't there. They have sold what
thew have not got. So, as have said 1t was the
bears who got frightened. There is anotner class
of bears that took another way OF getting out OF
the dIficulty, and saved themselves from loss.
They formed combination here to make money
scarce, and In that way to depress the price OF
gold and stocks. They went into the market buy.
ing all the morning, and OF course, In the AFTER
noon they would be the parties who had money
to loan. Accordingly they did go In and sell, and
they were the persons who produced the panic.
The reporter inquired whether they were aided
in that by the Secretary directly.
HOW BOUTWELL, CREATED THE PANIC.
Mr.. Could When they toere all readvJor their
operations, they telegraphed to Washington TO
Mr. BouttoeU 10 send on some bank inspectors
and pu them into the Tenth National Bank. The
intention tuas TO break that odnk. They did not
send the regular bank examiner, Mr.. Calender,
who knew that the bank was in strong and sale
position but they sent men from washington,
utter strangers-the object being In TACT, to break
the bank and create panic. They knew that l
was largely interested In the Tenth Natlonai
Bank, and that seems to me 10 snow BoutWsps ,l ;
completely in producing the panic. Certainly, that
was the object.
Reporter. But what did the bear ring gain by
that3 . ,.-
the price OF gold. You see there was spht IN
the ranks of the bears The one party was DIS
conrved that boutwell, did not help them, for he
had nj the first told parties that he would not In
terTere i'm Wall street. The other party got pos
session or HIM and he helped them to make a
"a mic il, the street. So you see there were Two
bear parties both fighting to get possession OF
Boutwell,, but only one succeeded IN weaving MIN
over. also hold that the government, IN sellng
gold, has violated an express statute
THE VIOLATED LAW OF 1852
The clause in the act Of 1862 says:
"And be il further enacted, That all duties on
imported goods which shall be Paid in coin or in