The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1869-09-30
NEW YORK
Stormy Debate in the Gold Room
Statement Of the Gold Exchange
Bank Presented TO Ghe Board.


NEW YoRx, Sept. 29.-Stormy de-
bates in the Gold Room, alternate re-
/ markabIe depression and buoyaney on
/ the Stock Exchange, stock failures
| and TeceiYershIps and injunctions,
/ form a group of events which make
1 the day without an equal n the annals
| Of Wall Street. At the early session
Of the Gold Board the following was
presented:
STATEMENT OF THE NEW YORK GOLD
EXCHANGE BANK.
To the Commissioner of the Gold Board:
An official of the Bank went into
the Gold Room OF the morning of the
| 24th inst, and suggested to q few
that it would be impossible to clear
| the TRANSACTIONS Of that day on ac-
count Of an attempted corner, but on
consultation it was decided that 1t
was the duty Of the bank to make the
attempt, even at some sacrifice. The
bank assumed the clearing movement
IN the usual manner and received,
In the payment of balances,
very large amount of gold
and currency. It was necessary to
restore a large portion of those
amounts to the dealers, or vide spread
disaster would have followed. To do
this, the bank was forced to depart
from the rule of receiving ali balances
before paying any, and went on pay
ing dealers a portion Of the balancs of
their statements, reserVing a safe
margin where practicable, and trust
ing to the dealers TO make good any
over dealings on the final settlement.
This was the course pursued on
Tuesday and Saturday. On Satur-
day q committee was appointed
at an informal meeting of the
dealers TO confer with the Directors,
who went into an lnvestlgl gltIo8, ex-
tending through Saturday and Sun
day, on the plan to declare nine deal
ers rejected from the clearing, and
assume the rest as good-the only
basis of settlement they deemed prac-
ticable. The bank acted on this In
paying dealers on Monday. The
emergency Of the settlement with the
Clealiug House of the banks on Mon
day. and Tuesday. was passed by
transferring to the Committee of the
Clearing House a sufficient amount
to secure the baiance IN the bank.
The bank has now at its control. after
settlement With the Clearing House
Bank, an amount not far from its
capital, aud surplus with which to
liqaidate tbs dealers statements,
as soon as it can be ascertained
what is due from the bank 10 the
dealers and from the dealers to the
bank. 1t Is the expectation that
these results can be approximated to-
day, and from all the evidence now ac-
cessible, We believe the bank to be
solvent and able to pay all its debts.
No com plleatIons exist at present eX-
cept on our dealers statements The
bank has not failed or suspended. 1t
has paid all its obligations as stated.
It paid Mondays obligations at the
Clearing House, in gold at par, and
on Tuesday 81 100000 in gold and
say 81. 800, 900 in securities.
[Signedl H. NJ BENEDICT.
President.
September 28, 1869.
The committee of twenty, appoint
ed by the Gold Exchange, worked
steadily on the statements OF dealers
since 4 Pm, yesterday, and at 1 Pm.
only two statements remained to be
received-those Of Smith, Gould &
Martin, and Knickerbocker & Co. |
The net result, as far as aseertained,
is that the dealers are short with |
the Gold Exchange Clearing House /
about S10,000,000 of gold, which |
Smith, Gould & Martin are offering
to sell them at 135. There appears /
to be no doubt that the committee /
will succeed in effecting the clearings |
on Fridays business, the settlement |
being made on a basis determined |
upon yesterday. The difference be- /
tween 135 and the actual price will /
remain to be adjusted between the /
dealers themselves. At 3:45 the |
committee Of twenty reported to the |
Gold Room, in executive session, that |
they had referred the making up of |
statement from the tickets of Smith, /
Gould & Martin, to competent ac-
countants, and requested to be re-
leased from further duty. |
The report was accepted, and it was |
agreed that the transactions Of Friday |
be settled.
The Exchange, Clearing House aud |
Board adjourned till tomorrow.
The President Of the Gold Room |
has been served with an injunction,
granted on the application OF Smith, /
Gould, Martin 81 Co, restraining him /
from selling gold on their account, |
according to rule.
A resolution was passed By the +
New York Stock Exchange to deal in /
gold In the Long Room until such /
time as the governing comm.ttee eff |
feet plan establishing a gold room /
under the direction Of this Associa- /
tion The Stock Exchange, later in |
the day, passed a resolution to deal /
IN gold in tho hall of the old Open 4
Board of Stock Brokers. the dealings
to begin tomorrow at 10 o'clock.
A meeting Of Joint Committee, /
representing the New York City |
Bank. Clearing House and New /
York Gold Exchange Bank, was held |
IN the parlor of the Clearing House. /
At this meeting the Gold Exchange
Bank. which made no clearings to-
day, proposed to the Clearing House !
Committee that the other banks /
should advance 20 per cent. on the
s, 500, 900 of gold paid by the Gold
Exchange Bak yesterday, and the day
before, in the settlement of their in
debtedness at the Clearing House. /
which would enable them (the Gold
Exchange Bank to pay their entire
indebtedness. The effect of this
would be to release the other sacuri-
ties held By the Committee, aud give
the Gold Exchange Bank about
$500, 600 IN currency. Several banks
had agreed to furnish the means to
carry out this proposition, when it
was learned that the Bank had been
/ put IN the hands of a receiver, con-
sequently, the negotiations were
stopped.
The Injunction was granted by
Judge Cardoza, on application of =
person claiming to be a creditor of the
bank. The application for a perm.
nent receiver Is returnable next Mon