The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1869-10-28
The Late Gold Speculation.

1 S1Cic.
/ The Late Gold Speculation.
The Connection of Grant and his EeIa-
tives Therewitk = Statement of JAY
AGould.
The New York San of the 21st, an
ultra Radical paper, publishes state
ment from Jay Gould, touching the
late gold operations in New York,
which shows that President Grant is
mixed up with the affair. In this let
| ter he says, that 60 "A. r. Corbin, in
May last, sent for him, and they had
an interview at Corbin's residence
about the appointment of the Sub
Treasurer. Corbin represented that
he could control the appointment, and
at first proposed r. B. Catherwood,
his son-in-law. AT a second inter-
view he told Gould that he had drop
| ped Catherwood and decided ON Gen.
Buttertield, whom he could control,
and the arrangement would be salts
isfactory to Catherwood, who would
receive one=fourth Of the profits on
any speculation on account of Corbin
and Butterfeld:
Soon after, at an interview between
Gould and the President at Corbin's
house. Gould spoke to the President,
urging Butterfield's appointment. In
July Gould again met the President at
Corbin's house, by Corbin's invitation,
and ssked what would be the finan-
cial policy of the Government. The
President said no gold would be sold
before the first of November, except
the regular sales of two millions
monthly, as he was anxious to secure
high prices for farmers produce
Money would be kept easy by the
payment of pensions and increase of
fractional currency.
"Shortly afterward, on the strength
of this information, Mr.. Gould pur-
chased seventeen hundred thousand
dollars of Government bonds, on the
joint account of himself. Mr. Corbin,
Mr.. CatherWood and General Butter
field.
"Mr. Corbin then asserted to Mr..
Gould that he had received margin
OF ten or twelve thousand dollars
from Gen. Grant, with which to car
ry 100000 of Government bonds,
/ which Corbin said were held for the
account Of Gen. Grant by Messrs.
Stone, Nichols u Stone, Mr.. Corbin's
bankers. Mr.. Corbin said that he was
anxious to return the money advanced
: by Gen. Grant, and to show him q
profit on the transaction, so far as it
had gone. and desired Mr. Gould to
pay Stone, Nichols 81 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 l25, without having any margin
or security.
Mr.. Gould agreed to do this, re.
serving, of course, the right to sell the
, bonds at any time, if necessary, to
protect himself, and on July 90, he
paid Stone, Nichols s. Stone 1854, SOC
for these bonds, which were $4,000
more than they were worth on that
day, and which represented the profits
that Mr.. Gould's firm anticipated
would accrue under the Government
policy OF buying bonds.
, "The transactions thus entered into
between Mr.. Corbin and his associates
f resulted in an eventual loss of $50,
L 900. The bonds were sold with the
assent of Mr.. Corbin. .e
"Foreseeing, from the large shor
t interest in gold and the absence O.
governments, an advance in the price
t was inevitable, Messrs. Gould ant
: Corbin determined to enter into 8
speculation for the advance Mr.
: Gould visited Mr.. Corbin daily, an6
+ sometimes twice day, to consult W It'll
: him on the subject, meeting, there, al
: most always, Mr.. CatherWood, anG
: General Butterfield occasionally.
!, Mr.. Goblin gave Mr.. Gould order:
: to buy several distinct lots of gold
besides taking a joint interest in the
' transactions. Among other lots he
: directed Mr.. Gould to purchase $500,
f 600 in gold at one time, which he did
: at the price OF 132. When the marke
2 advanced to 137, Mr.. Corbin directed
3 him to sell that lot, which he said wa;
for the account of Mrs. General Grant
: This was the first intimation that Mr.
: Gould had received that the Presiden
f OF any of his family were interested
: in the market. He sold the gold ac
: cordingly, and gave Mr.. Corbin {
: check for $25,000, on September g.
: Their interviews still continued to bt
: very frequent, morning and evening
t and at several Mr.. CatherWood wa!
/ present.
: elm September they discovered ;
number Of bankers and brokers, who
were supposed to be very Influential
: with Secretary Boutwell,, had under
t taken to bear the gold market on {
f large scale. After they had made
' enormous short sales, this combina
finn nf hni 70
+ Mr.. Boutwell, to this city, and to ar
t range to give him handsome dinner
, at the Union League Club, where the,
eXerted their utmost influence to i'll
: duce him to sell gold,
: "Learning OF this movement, anC
/ in order to checkmate it, Mr.. Corbil
: procured from General Grant letter
:, to be delivered TO MI. Boutwell,, per
S emptorily instructing him not sci
V gold. This letter Mr.. Corbin gave tC
: General Buttertield, with instructions
t to deliver it to Mr.. Boutwell, OH hi
e arrival. But various circumstance
: having excited Mr.. Corbin's suspi
D cions that General Butterfield wa
playing him false, he proposed to MI
Gould that Il safe messenger shoul(
be sent to General Grant with q lette
: from him (Corbin), which, he said
e would settle all of them. This lette
l he read to Mr.. c., who thereupon sen
w, o. Chaplin to Washington, Penn
sylvania, to deliver it.
When gold reached III Mr.. Cor
n bin informed Mr.. Gould that he hat
!. just sent letter by mail to Genera
Grant, in which he told him that h
was out of all sPeculations, either il
: gold or in bonds, and that as an i'm
partial observer he was decidedly o
c the opinion that it would be very dan
@ gerous to sell gold. lie then said tina
= at the present price of gold ther
{ would be about $l50,000 profit; tina
/, he wished Mr.. Gould 10 give him
: check for that sum, deducting tn
It $4,000 loss on the bond. Mr.. Goul'
:, replied that it was utterly impossibl
:" Tor Mr.. Corbin to be entirely clear o
Z the speculation until all parties inter
g ested had sold out, but consented t.
I oiVo him n check for SiOOOOO on nc