Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1869-11-17
NEW SERIES--V0L. 10, NO. Is.



But il, after the purchase is made,
the market "falls of'-that is, the
price of gold declines-the broker
will "carry" the gold only until the
difference between tho purchase price
and its deteriorated value shall amount
to the sum deposited as a "margin," :"
less commission ard interest, when he
potifes Smith to deposit more margin.
If Smith fails to do this, the broker
proceeds 20 "scl him out" at once
That is, he sells the gold, rays the
borrowed money pockets his commits
sion and interest, and leaves Smith
out of pocket exactly $4,000
GOLD CERTIFICATES.
In the recent gigantic operations in
gold, of course the reader understands
that no shiningmetal was on the street
Indeed tho actual gold is seldom
seen The gold IxoSsaqo Bank has
that locked up in its vaults, or some
thing else to represent it, This bank,
however, issued 'gold certificates" on
the demand Of the dealers. That is
Brown & Johnson, on the settlement
Of days business at tho clearing
house--which was this Gold Exchange
Bank-had $3.50, 900 in gold due them.
The Bank, at their demand, would is
sue TO them a certificate of deposit for
that amount Of gold. That certificate
was redeemable by the bank in gold,
on demand and was therefore as good
as gold, besides being much more con
vcnient to handle and carry about.
LOANING GOLD.
The clique that created the late fu-
r0re in the market commenced opera
tions long before the crisis came. They
had been purchasing gold for more
than week at prices running from
1872 TO 1876, at which the bulk of their
purchases were made. This Gold they
loaned ns fast as they bought it, re-
quiring the borrowers toput up mar
gin as security equivalent TO the cur
rent price of the metal When they |
had s30,000,O00 or S40,O0O,000 thus
loaned out, they began to "bulI' the |
market-tha. is, advance the price of 1
gold. This was accomplished by bid |
ding higher price than the gold was
selling for, and occasionally buying
lots at high price, in order to esta6-
lish a market price and secure quota.
tions. All gold so bought was loaned
again as quick as borrowers could be
found. As fast as the price advanced
they called for additional margins on
their loans, until finally the price
reached 100, TO which figure they
called AL their margins, then pocket
ed the proceeds and then left the
street, thus virtually forcing the gold
off on to the hands Of the borrowers
at this high price.
"LoADISG," "UNLoADING," AND "coR-
NERING."
Whom party has more gold or
stocks than he wants and proceeds to
sell them, he is technically said to be
"unloading." II he sells out his "long"
gold, say at 1875, he is said TO havo
'unloaded" at the price If he is
"short," that is sold what he has not
got and is in danger of being called
upon for delivery, he goes into the
market and purchases either the stock
or gold be needs, or something else on
which be can make a rapid turn, and
save himself from loss, which is called
covering bis shorts"
A CORNER" IN GOLD.
A "corner" is the result of com.
bination by which the parties unite to
seonre th6 control of the market for
the particular thing "cornered." Thus
last week the gold clique made cor
ner in gold by securing control of all
the floating gold in the market, and
were only broken up by the action Of
tho government in throwing an extra
and unanticipated amount of gold in
10 the market. This they were not
prepared to purchase and hence they
Jailed.
There are a great many other tech
nicalilios and phraseologics peculiar TO
Wall street, but tho above are the
most common and sufficient to render
ordinary transactions intelligible.
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