The New York herald., 1870-01-12
A WALL STREET NUDDLE.
REBELLION IN THE GOLD EXCHANGE.
Another Sensation Among the 'sBulls" and
''Bears"-A Member Refuses to Clear
Through the Gold Exchange Bank
and IL Arraigned and Tried
HIS Expulsion by q Two.
thirds Vote.

Gold Bank ~ clearing house, despite its collapse
IN tho panic OF last Iall, took the form OF decided
hostitles yesterday. and ended In the expulsion OF
Mr.. Tasker a. Marvin, prominent member snd
broker. 1t viii DO remembered that upon the re-
organization after the panic tho Gold Bank made
overtures to become again the clearing house Of
the Cold Exchange, but was strongly opposed BY
many Of tho leading brokers, who preferred the
system Of making deliveries Of che actual god or
Of gold certificates. The friends Of the clearing
house were In greater number, however, and after
considerable discussion o concurrent ret OF rules
was established for the exchange and the bank, one
OF which pTescribes that "all balance due the bank
must DO paid at tine time the statements are handed
In; II currency. by certified checks; gold, by certi
ned checks coin or United States Treasury gold GER
tincates." Another rule Is to the effect that "ln
casa shall any payment OF balances be made to any
dealer until all balances due the bank from dealers
snail have bcen paid IN" Upon these regulations
hinged the exciting events OF yesterday. The oppo.
nents Of the bank mad grown restive and tho
storm 70 long brewing manifested itself ON Monday,
when Messrs Trevor h Colgate refused to deposit
their check for $500 600 with the bank until certi
fed cheek given them for the amount due them
in return. The bank directors made complaint or
this demand to the Exchange, but did not insist
upon their position and yielded the required return
check. Yesterday the Messrs. Marvin Bros. Co.,
who had 5000 gold deliver to the bank refused
to deposit It unless a certified check ut the same
time returned them for the currency equivalent r.
may be wen TO explain here that the rules allow tho
bank at least one hour In which TO return dealers
the balances due them. The regulation is eninenty
proper and just r 1t Is strictly adhered TO, but the
Messrs. Trevor IL Colgate and Marvin Bros claim
that last Scptemb the bank, In helping It's friends
paid out checks for balances before it collected al
the checks due 1t. Hence the embarrassment delay
ana losses OF that memorable period. The refusal
being persisted In and as all tho dealings
depend ono upon another and cannot DO
cleared without general deposit OF checks
for AL balances due the bank, the situation being.
to use familiar Illustration, Ike piece OF arch
work where one missing stone destroys the whole
structure the directors OF the bank were forced
reject the DAYS clearances and accordingly sent the
following notice to the Gold Exchange
Tie bank gives notice that general clearing
cannot be made this day account OF large bal
ances due tho bank not having been paid In, and
be paid out until all balances Que the bank paid.
therefore agreeaoy 70 rule four, asl checks cur
rency, COIN, United states gold certificates. state
mens, &c., belonging 10 the dealers VIII be returned
when caileo for. JACOB RUSSELL. Cashier.
Great excitement cnsued upon this announcement
and an executive session of the Gold Board wax
called for three O'Clock. At the appointed hour the
President called the meeting to order, ana an-
nounced the business before n-viz., the arraign-
ment OF Mr.. Tasker H. Marvin for an alleged viola
ton OF the concurrent rules OF tho Exchange and
l Clearing House.
| Mr. Marvin, In explanation said that he was not
aware Of the existence OF such regulations and tnat
\ he took 1t Tor granted that the firm OF
| Trevor & Colgate yesterday obtained q certified
check under similar circumstances. and without
censuve from the Board, he. aepositinR q much
lRrger amount than tnat firm did, at liberty 70
make q like demand. MIR. Marvin, moreover stated
thar /. there was any rule OF the Exchange making
| 1t a condition OF membership that he should be re
| quircd to deposit such large amounts without
security he should not regret the Board infictlna
| upon him the penalty Of expulsion.
| Mr.. Hodgkins tnen moved the adoption OF a long
preamble, recting the facts or the case ana the fol
l lowing resoluuon:--
Whereas Tsskar H. Marvin, the firm OF Marvin Brother
Co.. has wlfuy violated article nineteen OF the Board
Resolved Thst hereby forever expelled from
al rights and privileges member OF this Board.
This excited considerable discussion. Mr.. Van
Schack ironically moved the insertion OF Mr.. Col
gates name in the resolution. Voted down. A mo-
| tion was then made TO take tho vote by yeas and
nays. As this included the calling OF roll Of %sl
| members II necessarily took some time.
The vote having been taken. the result was on.
nounced as follOws:-T0tal number Of votes cast
/ 1856; yeas, 1874: nays, O.
The ayes being exactly tvo-th,rds OF those voting
the President declared the resolution adopted and
Mr.. Marvin expelled upon which there were loud
cheers from the Affirmative side OF the motion.
Subsequent resolutions were adopted for tho ad
justmcnt OF the business details disturbed by tn,
| suspension OF cearances, and the Board adjourned
| Whatever may be said for or against the conrsc o
| either party, the promptness and firmDess Of
| tho Gold Exchange have nipped In the
| bud what threatened to be q source ol
continual annoyance and trouble Dealings
Will hencefort1 be conducted with greater satisfac-
ton among the dnercnt brokers' and legitimate or
speculative their operations VIII be unembarrassed.
\ 1t wouid seem In this connection that the question
does not enter whether the Gold Bank fosters specu-
| lation not. Those OF the Gold Board wna choose
| to deal ex-clearing house can do 3d. IT. however
with knowledge OF the rules, theJ consent TO cleas
| through the bank. 1t would seem only fair thcy
i shonld abldc by them and take the risk Of such
| losses and disaster as were Drecipitatei by Tho
l panic last fall.