The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1869-11-13
Special Letter from New York.
The Late Panic d. Wall street..

NEW YORK, Sept. 20, 1859.
EpIroR OF THE p. G. ADVERTISER We are hav-
ny lively times here in New York, and in Wall
street, which is the focus Of the " blawsted row."
we are having it hot and heavy. The newspapers
are daily filed with long aud interesting accounts Of
the events to which am about to allude. and only
write to make some few explanations in order that
the whole affair may be better understood by those
not familiar with the routine of Wall business
Il seems that some master minds put their heads
together some days ago to control the gold market
With much capital to back them, and no doubt as
sisted by some of the banks, the sequel will show,
they we're enabled it is called, to corner gold
You should be made aware that the amount Of gold
in actual circulation in the United States is not
great say about twenty millions available for use in
Wall street. vast amount Of course is spread oil
over the country, little sums in hundreds Of thou
sands Of hands, making in the aggregate large
sum Uncle Sam has accumulated n vast amount in
his treasury holding usually on an average eighty
one hundred millions which cannot be touched, as
the policy Of the Government not TO dsarrange
the finances Of the country, which undoubtedly
would be the IL large sums were suddenly sold
OF hte Secretary Boutwell, has regularly oid about
pne million dollars gold weekly. aud with the pro
eeis purchased United States bonds, thus gradually
reiscing national debt and consequent heavy
interest account. and quietly dsposing Of the sur
ptr gold which comes in for customs dues, all the
time 80 easily aad regularly not to disturb the
balance Of trade, I have previously mentioned.
Prom this explanation your readers readily see
bow holiness and capital can manage the gold mar
et. provided the manipulators can hnd enough per-
bons to whom To sell the gold they have resolved to
buy
E3-k - -. l..
elearIy understood, I will enIighten your readers
&pncerning an Institution here in New York called
Ae New York Gold Exchange Bank. acting as 4
earring house for al gold dealers, enabling person
= extremely limited capital to and handle n
Ast amount Of gold, not gold coin, but transactions
representing gold. During the war this bank was
pt in existence. and then gold frequently and
Nm twenty-five per cent. in day. Then the actual
pin was dealt in-now nearly the whole Of the gold
transactions fictitious. Imagine. therefore. the
bdely-spreaI loss on 900 millions. the amount
pared on Friday last. at a range from $50 up to
B4 and then down to 1s1. I have always urged
at the Government should put out its strong hand
ad crush this gold bank, when gold would speedily
l To ll5 I'D and all these unhealthy and gigantic
eculations would cease. and gold maintain its real
llue In Austria, a country hopelessly involved in
d it is doubtful. with its present enormous debt If
country will ever return again to = specie basis.
&c the discount on their paper G- e., premium on
Pld) for many years has never gone above 25, even
aring the Italian French war and now, If my
lemory correctly serves me, Is about Is. And here
our great, prosperous country. with fair prospect
paying of its entire debt certainly long before
expiration ofthe present century, with its oblga-
pms at n regular discount Of from 30 TO 90. This
ate Of things is unnatural and unhealthy, and by
30 simple suppression Of the gold bank. affairs
ouid reach their proper position As you will see
60 on further, IL Is to be hoped that the Gold
xehange Bank Is on its last legs. I think IL Is .
tate Bank Not satisisd with paying annual divi-
ends of 40 per cent, the directors must put finger
the pie Of gold speculation. and now their Affairs
re in the hands Of receiver. The strongest infu-
nee viii be made TO prevent this or any similar in
tution ever going again into operation.
To further explain regarding this gold bank routine
will repeat that the bank acts as receiver and dis
urser for the gold dealers I, for instance repre-
ent the hrm Of John Smith & Co, and myself or
~ customers have the belief that gold ought to 60
CHER 50 we buy gold. that Is 60 "long" Of gold.
p 20 TO various gold dealers and buy from them
~ 100000 gold at 1s5. II II goes up, as pre-
amed and hoped it would. and am satisfied with
70 profit, sell out my 100000 gold. thus clcsing
's Transaction With the party or parties pur-
bassd from exchanges tickets. extending the cur
ncy valss Of the gold. going through the same
rm With the parties to whom sold the gold For
ssaucs bought 100000 gold at 135 and sold i.
lss. make up my statement to the bank. accom-
MED BY the tickets Of the dealers traded with,
O~tns $1,000 TO be due me On the opposite side.
other parties make out their statement, accom-
isd with tickets showing that they oxe the bank
~. Tor which sum they deposit tksir certified
T. and ut subsequent hour. sftsr having eI-
ped AZ the transactions. ths bank pays over to
my $1,000. which they have already received
the other parties So one hand washes the
Ia case there are errors or desciencies-the