Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-10-06

On the 10th, gold was selling at 361<
to S61<. The bears then urged on Mr..
Boutwell,, who was then in New York
and on Wall street, to prepay the No
vember interest, and sell ten millions Of
gold. In plain terms, these gold-gam-
blers having sold speculatively short, in
the hope Of making profit, that which
they did not possess, and seeing the trans
action going against them and loss star
ing them in the face, then had the assur-
ance to ask the Secretary of the Treasury
to use his department and the peoples
money to protect them against loss In
their gold-gambling operations by bring
ing down the price Of gold.
Now, as the World says, ''it is a fact
publicly recognized that influential Re-
publicans, and some formerly powerful
with Mr.. McCulloch, and known as the
Treasury Department ring of gold-gam-
hlers and stock jobbers, have been enor-
mOusly short of gold at low prices for
long TIME past. IL is a fact that these Re- !
puhlicans asked the Secretary, and |
brought strong pressure to bear, TO force |
him TO do lust what ne has done In the l
shape Of preparing the November inter- !
est and selling gold, Il is q fact that, if 4
the Secretary had not done what thoy /
asked him 70 do, these Republicans and
the McCulloeh Treasury Department ring !
of gold-Eamblers and stock -jobbers would !
have suffered ruinous losses, which might
have fprped them into bankruptcy. II is
u fact that these rich and influential Re-
publicans have all along felt confident that
the Secretary would do what they asked
aim 10 do, aRd thus save them from the
sconseQuenGes ofselling gold short
.. q l. Il. 4
ridden people of the United States, It is
q fact that the great advance In the price
Of gold on Friday could never.have taken
place or been possible but for the enor-
nous short sales OfSs, ,000, ,000, and then 81
D00, 900 on Wednesday last by the truly
,Oil'' patriots who engineered the Seere-
-ary iptg using the Treasury department
1fthe United States for their benefit on
Friday, two days afterwards. IL is fact
hat some of the ''trooly lOil" who sold
'hort on Wednesday at 1874 were the
most energetic in urging the Secretary to :
10 what he has done, "because the cOun-
.ry was on the verge of ruin unless he
'ompliaG With theft defaands,H
The bears, having sold $4,000, 900 short
n "Wednesday, which they had to borrow
rom the banks, on the next day, In order
o make their deliveries to the same
'apks, The advance in gold on Thursday
nd Friday would hHve been impossible l
Without the enormous short sales made
y Mr.. Boutwelfs friends on Wednesday.
IN Friday he came'to their rescue, by or c
ering the sale of 50, 900, 900 of gold.
The operators on Wall street undoubt-
dly understood that Mr.. Boutwell, would e
ell no more gold iur time, when he was J
4 New York. He may have given the !
ssurance, or they may only have in !
9rred 1t from something else said by him. !,
{ is at least certain that the operations of a
be bulls proceeded on that supposition. . .
md the facts, that he deferred his inter- :
erence so long, that he withstood great
ressure Of appeals and opportunities,
nd at last yielded with evident reluo- :
,nce, proves that the spectators must
ave had some good foundation for their
elieE His hands had evidently been tied
y an express or implied assurance,
hich he felt to be binding, and which
othing but the unsettling effects of a ,
anic prevailed on him to break.
Six months ago, four days before Mr.
outwel was appointed Secretary, gold =
I'D for SOH premium. During the six j
lonths OF his management, it fiuctuated,
'eordiniy to the caprice and pleasure Of I.
ique, from 1872 to las; never coming n
own so low as 1907.
After the contest Of Friday, the oath of
sptember, he authorized the sale of 81 al
o 600 in gold every Tuesday and Friday, n
MIL NOvart b.r 1sf a,,9 ~ ,,s,-.t..o =, > n,
900 Of bonds every Wednesday, until n
e same day. pi
After gold had gone up to los, and fallen L
Ick to about l33, ne sold s. 900, 900 to bid
rs, at prices ranging from 1907 to 1917. 4
The current rate OF gold in New York
as, on the SOth Of September, from 1907
1917. On the lst Of October it sold at s
OF. During the month of October the =
1ysrnment will purchase $4,000, 900 of
'nds. Eight millions of gold will be thus
sbursed during the month, and thirty "
illiOns more will be paid out for interest n
the first of November. A few days ago
tton Now Orleans middling) was quoted :
New York at 2sk cents On the first
October il was IN.
Shrewd men, who note these facts, and r
ho remember that Mr.. Boutwell, is a
politician, and that New
lglsnd does not feed itself, and has to
rchase large quantities of Western 5
ain, WI bile it must buy largely of South
n cotton for its factories, while all the
ist is interested in the process by which n
Lton is 10 be bought cheap, in order that
g dollar invested In 1t may pay rs much Ci
the debt due abroad on account of the d.
lance of trade, as two dollars viii paw :
cotton at thirty or thirty-five cents in e
men, l say, may de-
rhine tor themselves whether gold is -
t likely to continue to fall--that is to
y, greenbacks to become capable of buy =
2 more gold and more cotton than they y
w can and whether the Interference of
Q Treasury, to lower the price of gold,
not also intended 70 lower that Of cot -
n, which has already fallen two cents P.
T pound in New York.
The financial system of the United
ates, reduced to its simplest principles, 4.
this: The Government issues and sells
nus PAthAA5AAtS " pay bht liLtTtsl iOE Il I
rm of years in gold, and the principal ri
the end of that time In gold. The
)ney received for these, it spends in
lking war and other extravagances. =
so. it issues some hundreds OF millions =
promissory notes and shinplasters, n
1eemable in specie on presentation; ;and
en- refuses TO receive any of them for :
ties payable on imports. Thus it col p
It's gold 10 pay the interest on its bonds
d as a surplus accumulates, It takes it
es into market with it, and buys up its Bc
nds at.thoir market value,-i. e., shaves
own paper. If an individual were to n
ue his notos, without the present M cans -
pay them, refuse to receive them for tn
,neys due him, and go into the market M, M
d buy them up at discount, he would pr
branded as sharper, and what is va va
,rse for the Government, would lose his
sdit. To refuse 10 receive the green kii
eks for duties deprecistes them, of co
nrse; and to buy up the bonds at dis te