Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-10-31
THE GOLD GAMBLERS.
MIR. and Mrs. Grant, Butter
field and COrbin.
Startling Disclosures from
Jay Gould.


The New York Sun continues to unfold
the secrets of the ''Gold pool" and the
developments in its issue of the 21st inst.
are of a most startling character, seeing
that not only President Grant, but Mrs.
Grant also, are made TO figure as parties
personally interested in the great gambling
speculation which eliminated SO disas-
trously on the oath of September The
following statements, the San says,
have been furnished by Mr. Jay Gould,
President of the Erie Railroad, in his own
handwriting:
HOW A SUB-TREAsURER WAS APPOINTED.
The first Mr.. Gould saw of Mr.. Corbin
was in the latter part of May last, when
Mr.. Corbin sent for him, and they had an
interview at Mr.. Corbin's residence, No. 81
West 9th street, regarding the appoint
ment of Sub-Treasurer in this city. Mr.
Corbin represented to Mr.. Gould that he
could control the appointment, and wanted
TO know how he and Mr.. Gould could
make money by having the inside track
Mr.. Gould understood that the appointee
was to be Mr.. r. B. CatherWood, the SON
in-law of Mr.. COrbin. Mr.. Catherwood
was an old friend Of Mr.. Gould, and the
latter was anxious for his appointment.
Mr.. Catherwood told Mr.. Gould that he
would take no action in the matter with
out first consulting Mr.. Corbin.
WHY CATHEEWOoD WAS DROPPED AND But
TERRIFIED WAS TAKEN UP.
Al into IN,
formed Mr. Gould that he had dropped
Mr.. Cathcrwood, fearing that his conHec-
ton with the Presidents family might be
the subject of scandalOus comment, and
that he had fixed on Gen. Butterfield as
the appointee, and could get letters from
Mr. A. T. Stewart and others, which
would make things appear easy and natu-
raj. He said he could control Mr.. Butter
field, in fact that he owned him, and that
lac had consulted with Mr.. CatherwOod
and the arrangement was satisfactory to
him.
The understanding was that Mr.. Gather
wood was to receive One-fOUrth Of the
profit from whatever was made by any
financial operations undertaken upon ac-
count of Mr. COrbin and Mr. Butterfield
CORBTN MEETS THE PRESIDENT
Shortly after this Mr.. COrbin requested
Mr.. Gould TO meet Gen. Grant at his (Mr.
Corbin'sD residence, which he did, and sub
sequcntly accompanied the President to
Boston, where he attended the Peace Ju-
lNilee On the way Mr. Gould spoke to
SAen. Grant in favor of the appointment
Of Gen. Buuerfield, and Immediately after
the Presidents return the appointment of
tL.r, Dr,4tar4io1l ,,-au r,,oIn Y,1,blia
Some time in July Mr.. Gould again met
Gen. Grant at Mr. COrbin's house, by in
vitation of Mr.. Corbin. Mr.. Gould
asked him what would be the financial
policy of the government, and the Presi-
dent replied that, as he was anxious to Sc
cure high prices for farmers produce, no
gold would be sold before the first of No
yember, except the regular sales of two
millions q month. Mr.. Gould then asked
how he would obtain means to purchase
government bonds, and his answer was
that the internal revenue receipts were IN
eXpeCtedly large, and the currency bal
anccs in the Treasury would be sufficient
without selling gold. Mr.. Gould further
inquired how he expected TO keep money
easy. To which he replied that there were
from Sl2, 1900 TO $4,000, 900
going out inpensiOns, and that heintended
10 increase the fractional currency from
$50, 600. 600 to $50, 600, 600.
GEN. GRANT PUTS UP A MARGIN OF SO, 900
OK $4,000.
Shortly aferward, on the strength of
this information, Mr. Gould purchased
Sl,TOO, 600 of Government bonds on the
Joint account of himself, Mr. Corbin, Mr..
tV.tl,,r,.-,nl fzn,, p,,ffoyfin1I Mr.
Corbin then informed Mr.. Gould that he
had received a margin of 5000 or Sl2,
600 from Gen. Grant, with which to car
~ $500, 600 of Government bonds, which
were held for the account of Gen. Grant
rs Corbin said, by Mcssrs. Stone, Nichols
a Stone, Mr. Corbin's brokers.
Mr. Corhin said he was anxious to re-
turn the money advanced by Gen. Grant,
and To show him "A profit on the transac-
ton 80 far as il had gone, aud desired Mr.
Gould 90 pay Stone, Nichols q Stone one
per cent more than the market price, and
then 10 carry the bonds for the account of
Gen. Grant until they should reach 125,
without having any margin or security.
Mr. Gould agreed 20 DO this, reserving, of
course, the right to sell the bonds at any
time, if necessary, to protect himself;
and on July % he paid Stone, Nichols &
stone 1864, 500 for those bonds, which
was $4,000 more than they were worth
ON that day, and which represented profits
Shat Mr. Gould's firm anticipated would
Eccrue under the governmental policy Of
buying bonds.
THE CLIQUE LosE $50, 600.
The transactions thus entered into be
tween Mr.. Corbin and his associates re
suited in an eventual loss of $4,000,
The bonds were sold with the assent OF
Mr. Corbin.
OPERATIONS FOR A RISE.
Jur,-cung from the large short in
tprcst in gold. and the absence Of the
Government sales, an advance in the price
was inevitable, Ncssrs. Gould and Corbin
determined so enter into a speculation fol
the advance. Mr. Gould visited Mr.. Cor
hin daily, and sometimes twice a day, "a
consult with him on The subject, meeting
there most always Mr Cathcrwood, and
Gen. BulcricIA occasionally. Mr. Cor.
hin gave Mr. Gould orders 10 buy several
distinct lots of gold, bcsidcstaking a Joint
interest in the other transactions Among
other lots, he directed Mr. Gould 10 pur
chase $500 900 in gold at one time. which
hc did, at the price OF l22.
MRS. GRANT Is TIE rD0L
When The market had advanced to 1871
MI Corbin directed him 10 sell that lot
S~which he said WAS for thCaCcauut of Mrs
Gen Grant This was the first iutima
..pn that M Gould had received that tn
President or ANY OF his family were in
larcstad in The market. He sold the COL
acrorlmglv, and gave Mr. Corhm a chez
for so. ODu on Sept Is. Pheir interview
Hill continued 60 De very frequent, mon
inc and evening. and at several Mr.. c.
Norwood was present
SECRETARY boutwell, EUNG IN.
ln September they discovered that
number of bankers and brokers, VIII
were supposed 10 be very influential wit
Secretary Boutwell,, had undertaken
hear the gold market on a large scal
After they had made enormous short sale
the combination sent one of their numb,
10 escort Nj Boutwell, 10 this city, an
.uangcd to give him a handsome dim,
Al tHe Union League CLUB, where they e!