The Portland daily press., 1869-10-01
RoutweuI i'm wall street

GoLD CLOSED in New York last night az
129 1-2 1884.
Secretary Boutwell, in Wall street,
Some personal and political friends of Gov.
Boutwell, are disposed to concur with his OPP |
moments in unfayorable criticism of his recent |
action in offering gold from the United States |
Treasury, for sale in New York at an unex-
pected, or unannounced, time, and in unusu-
al quantities. We believe his action proper,
udicious and welltimed. What are the facts
Certain gamblers in New York city, who seek
to dignity their occupation with the more eu-
phonious name of "brokers," bet among them |
selves that gold would be quoted at or above |
stated price at or within a given time. Ihey
immediately set about verifying their own
prediction. This practice OF betting on ire
future condition of the market has Deen SO |
long continued that classes have been formed
among the gamblers, those betting on a rise
assuming the names of "bulls" and those who
bet on fall being called "bears." Iftheir fran
tic efforts to win did not interrupt the ordi-
nary course of business and disturb its usual
avocatons nobody would care who of these
large capitalists are sure to eat up the little
ones from the very nature of the transaction
For instance,-there Is but about $20,0OOOOO
OF gold usually in hand by all of the banks, |
bankers, merchants and operators in New
York: of this large fraction is not avaia-
BILE for speculative purposes. If a few large
capitalists choose to buy up this gold and al
so to contract with the 'bears" for a future
delivery of further large quantities, they have
these unfortunate Bruins at their mercy, and
eau put up the price for short time to any
point they may indicate. Neither party ex-
poets that any gold is actually to change
hands; but the loser pays the winner the diff
ference between the market price of the article
and the price at which he agreed to deliver it.
mus, and through the nuisance known as
the "Gold Exchange Bank" where the ac-
counts OF these fictitious purchases and sales
are kept, a firm with capital of five hundred
dollars may apparently buy and sell million
of gold in day; if, at the close of the days
operations, the difference between the buying
and selling prices of the gold nominaly
bought and sold does not exceed the $500, the
firm is solvent and has the reputation of do
ing an immense business and obtains unlimit-
ed credit-if it exceed that sum the firm fails
for the amount of the excess-which NAV be
hundreds or thousands, according as the cap
italists choose to absorb the gold and run up
the price or to let things take their course. If
the brokers really have large capitals to risk,
and do lose fortunes-their fortunes 90 as
they came, by speculation. They were not
Won by honest toll in any useful occupation
but by 'luck" in their bets; and if they are
lost 1t is but an incident to the hazardous
pursuit they follow. They happened to bet
deep when their adversaries had the four aces
up their coat sleeves. So far as they are con-
cerned nobody wastes sympathy on their
gains or losses. Generally their wealth like
their purchases and sales are fictitious They
no more have the millions with which thew
are credited than they really buy or sell gold
at the prices they appear to give or take A
week ago yesterday when these gamblers
were pretending readiness to buy the pre-
cions metal by the million at 100, the agent
Of foreign banking house, having very
large amount at his disposal, was unable to
obtain an actual equivalent for any portion of
it at any higher rate than u.s. and the very
next day the Secretary of the Treasury could
get but 132 and 1874 offered. 1t is too absurd
Tor human credence that the actual demand
for bullion, really delivered, vibrated from 1873
to l63 on the oath ult, as indicated by the
figures in the bulletin of the gold-board.
But these quotations, though fanciful so
thOSA w fba,,
nave real and injurious effect upon those
engaged in legitimate business. Those who
have made purchases abroad which they are
compelled to meet upon given day 1.-THE oath
ult., Tor instance, are severely injured, and
may be ruined by this pretended rise in gold
to l63, which really drives it up from 1888 to
145 for those who must purchase to pay their
foreign debts or duties to the United States
Another effect of this rise in gold is evidently
to discredit and depreciate the government
securities which foreign and domestic holders
would hasten to convert into gold while it
stood at such high figures. To protect hon
est merchants and the government the secre
tary very properly used the means which the
possession of vast amount of gold put in
his hands. But for his orders to sell, those
who had absorbed all the floating gold in the
market could easily have put up its nominal
price to their alleged collective point" of 1870
or to 200; their vast means, however, were
inadequate to take up the boards of treasure
in the U. S. vaults, and they were obliged to
succumb. Tc be sure many gamblers were
ruined that is the proper fate of gamestcrs,
and nobody cries; but many honest men
were saved, at which we ought to rejoice.
The situation in which the Secretary of the
Treasury was placed can be stated very brief.
ly. he held, say, sixty or hundred millions
OF gold in the vaults of the u S, Treasury.
There is large outstanding Indebtedness of
the United States, which this gold is destined
in part 10 pay. OF course, the higher the rate
at which it is sold, the greater amount of this
Indebtedness it will liquidate.
Is it not clearly, then, the duty of the Sec
Rotary to sell his accumulation of specie when
the market for it is higher? In then offering
it did he do anything different from what any
merchant or farmer of ordinary capacity
would do with his commodities? Further
more, If this high price were fictitious, and
could not be realized, was it not equally bis
duty to demonstrate this fact to the country
ana the world for the interest of the public |
and of all honest dealersp
~ The Secretary is invested with discretionary
power to Sell in order to prevent lasting injury
from the combining of wealthy capitalists to
buy up the floating gold; and that he may sell
in the best state of the market He can only
be complained of when he communicates to
favored few his purpose to exercise this dis.
cretion and thus enable them to benefit
themselves at the expense of the State or
other unintiated persons. That Mr.. Bout
well has done this now, Or at any former time,
nobody pretends. M ....s.. -...... |
OUR able contemporary the Eastern Argus,
took occasion yesterday TO cOmmiserate the