The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1869-09-30
Late Gold Panic in New York.


Fortunately the panic in New York
did not last sufficiently long to do ire
parable damage to the mercantile inter
ests of the country, Foreign trade was
Of course at stand still; orders were
stopped; prices were not named for large
invoices Men, who had to remit by
steamer, either declined fat to do so or
made arrangements by which they for.
warded collaterals to London, upon
which money could be realized quite as
carly as BY a sixty day bill, and bank
ors' bills were offered at 90 in other
words, ut 81 % gold, and it was no use
to offer mercantile bills even at that
rate. The ring was broken, however,
almost as soon as it was formed, and as
many of the brokers, it appears, were
not able, or did not feel inclined to set
tic, their differences, the losses OF those
who win pay will necessarily be very
heavy, while their profits have been
apocryphaI
The scene in the gold room on Fri.
uayt husb hafo Dccu hOJ uulikc
fight in the Roman Amphitheatre be.
tween gladiators aud wild beasts. There
were hand to hand encounters, insane
actions aud demoniacal ycls If there
was none of the bloodshed there was
much Of the wild frenzy that disgraccd
the arena in the days Of Nero Some
idea OF the immensely Of the transac.
tons may be had by the rumor which
was telcgraphed that the settings for
the day at the gold clearing house
reached the sum Of G635, 00D, 900. The
list of reported failures was very long
and comprised some Of the best names
in New York. Among them were those
of Belden & Co., Chase, Mcclure & Co.,
Ward, Chapman q Co, Drcxel, Win.
throp & Co., a. q, Speyer Il Co, W.
Heath q Co., Galwuye, Hunter Il Co,
S. NJ. Wallis and others Some of
these names, however, were not pub.
llshod on Saturday afternoon in the list
of failures, and indeed, as the Gold
Clearing Room was closed on Saturday,
nothing definite will DO known for a
day or two,
Not the least curious part orthis very
disreputablo and almost cut,throat gam.
bling transaction is the fact that it really
has assumed national character, Mr.
Boutwell, being directly charged by sev.
eral New York papers with being one
Of its chief aiders and abettors 1t is
charged that he ordered sales Of gold to
be made at the height of the panic
against his will and under the orders Of
General Grant, instigated by the men,
Der OF most prominent banking firm
The World says:
"That he sympathized with and aided
the movement for rise is universally
conceded, but the pressure of public
opinion became SO great that he was
compelled to change his course and lend
his influence to break the bubble. l.
was this unexpected interference of the
Secretary Of the Treasury that caused
the crash. They had not counted upon
that; in fact, relied upon either assist.
ance, or, at the most, hands Off The
fact that the order sent TO Mr.. Butter.
field to anticipate the November inter.
est was so long delayed after its date, is
brought up as evidence Of this conniy-
auce
In summing up the result, it appears
that hundreds have lost heavily in
stocks, aud others in gold; that Bout.
well aided the panic makers until he got
them deep 10 the game, aud, finally, uu.
der the pressure oil public opinion, dc.
ceived them; the managers Of the clique
cheated their agents; the whole clique
suspended; the performance ended with
Fisk having been disabled.
The Post says:
1T is the greatest defeat the Treas.
ury has met with under the present
administration. Nothing has brought
it more credit hitherto than its an.
nouncemcnt that all sales of gold should
be public, with due notice of the amount
to be sold; and that all sales should be
made without reference to speculation,
solely on public grounds. Both Of
these principles have been abandoned;
the largest sale ever announced is made
to meet speculative emergency, and
in aid Of one side in a gambling con
test; and the Government refuses to
announce the amount to be sold, but re-.
serves the right to accept any number
Of bids, for any amount and at any price.
This sudden abandonment Of every
sound principle in the sale of coin can |
not but affect the country unfavorably. |
1t tends to destroy the confidence in the |
independence and wisdom of the Treas. |
ury, which has been slowly growing up |
for six months past"
How far this is true we do not pre-
tend to say, We know, however, that |
the question was asked in Baltimore as |
q most natural one before the New York |
reports were herd, son which side is |
Boutwell,? Z" 1t stands to reason that |
no sharp, shrcwd, calculating money |
broker would attempt to run up gold |
when he knew that eighty or one hun |
dred millions might be thrown at any |
moment on the market, aud break his |
"corner." Still less would a combina. |
tion Of prominent gold gamblers put |
themselves in SO precarious a position. |
AS the lesson has taught some of the |
principal confidence gentlemen not to
put their faith in Treasury princes, it
may, after all, be very good one. But
if tho result of the panic is to force
Government to sell its gold, diminish
the debt, and save interest to the coun.
try, it will be much better one, aud
nnn srhaan hanaGt s..iIl l.. ......I -