The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-10-23
ENGLAND.
The Gold Panic in New York, Its Causes
aud Conseauences-Americnn Finance Nea-
sured by the "Biguess'' Of the Union
British Reports from Wall Street.
From the London Times, Oct. l2.l

sured by the sBiguess'' Of the Union
British Reports from Wall street.
From the London Times, Oct. 12.l
When Dante placed usurers IN one OF the deepest
holes OF his Kingdom OF Darkness he had, perhaps,
a dim foreshadowing OF the battle royal that was
fought about a fortnight ago between the "bullan
and .fbears'' or the New YORK Stock Exchange.
To the simple mind Of the medieval Italian poet
other gain seemed lawful than that which sprang
from productive labor Money was for him merely
The representative OF laboiuselul III the transmits
sion and interchange OF produce, but adding no.
thing TO Its Intrinsic value and therefore entitled
no share in It's profits besides liked legal inter-
est. That such notions should be entertained In q
country and age in when Lombard and Tuscan
BANKERS shared with the Jews the monopoly OF thee
worlds exchange Is sufficiently striking; but it is
by no means unlikely that the great GDibelline had
gained sufficiently deep insight into the mysteries
the money market 1t then existed TO foresee the
dangers to which reckless and unprlncipled specua-
ton might open the way and 10 deem IL his duty to
moralize about it alter his own stern, subtle, and.
In some degree, paradoxlcal manner our ideas
with respect to money or capital have at all
events, undergone no little Modification since the
fourteenth century We look upon capital as accu.
INFLATED labor, ana we hold that 1t should come in
for It's lair share OF the gains OF that labor OF which
IL 30 potent an auxiliary. We look upon joint
stock companies as the most splendid results OF chat
spirit Of aggregate enterprise which constitutes the
boast OF our modern CIVILIZATION and we only VISA
that they may prosper without too great an amount
OF stock Exchange gambling. But gambling at the
Stock EXCHANGE Will always follow Joint stock
undertakings as shade waits on light. There Will
always be sharp men TO PRACTISE on dull ones; aud
bubbles and panlcs, and sudden calastrophes BY
which units are benefited at The expense or mll-
lIons will follow upon each other at all times and IN
every community SO long as man avoids the toll and
tedousness OF the highway OF life and trusts to his
chance OF opening snort cut 10 fortune, his conf
dence being generally commensurate with his igno-
rance OF the path on which ne ventures and his
reliance on his guides proportlonate TO his vague
impression OF their plausible character.
Reckless and upscrupuous, ana too often rum
Gus. as Jolnt stock speculation Is IN the Ola World,
no one need fancy that gambling at our Stock
Exchange Is carried on on the same scale as IN
America country In which everything good or
bad Is apt to attain dimensions IN keeping with
the 'biyness' OF the Union. In New YORK, we
are told, there two factions AZ the stock
Exchange, one mastering under the banner OF
Cornelius Vanderbilt, the "Commod0ren the
Jr, the admiral" The Commodore IL
SAID 10 be worth from fi6,0Oo,ooo to
100000. The other, who Is PERHAPS not so
wealthy seeks his strength IN a combination with
other houses and lays out with them his plans Oh
operations AT the Filth Avenue Hotel. vanderbilt
mad occasion TO leave New YORK. and the men III the
FISK interest Fronting by his absence, hit upon
scheme which, for day at eaet, laid the whole field
OF tue money market completely at their discretion.
Ihey bought up nearly the whole OF the gold IN New
YORK. owing 10 the eXofbitant issue OF paper cur
rency or greenoacks,n In the states at the time OF
the war, gold, "a our readers are aware, rose TO
great premium, from which IL has only experienced
partial decline after the peace owing chiefly to tue
necessities OF the merchants, who are compelled to
pay The duty on imports IN specie. Gold was ut itS
almost normal premium 1876, on the 22d when it
rose without any apparent cause, To l40I Il ad.
vanced 10 l44 on the z3d, and closed that day &c
143k. Finally, 1t went up to 162n little before
noon on the oath. Ii sank TO l44 only ten minutes
later then there was short reaction when again
hoisted 1t UP 10 l60 and 1866 but at twenty minutes
70 twelve IL sank to 1888 this latter quotation being
merely nominal anu then tue market virtually