The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-06-24

cOmprencnsiNo even
man OF the maurest yes Is, Mr.. getchun looks FOR
material influences IN y analysis for instances Of
the future fluctuations OF gold.
FAMILIARITY W IrH POLITICAL ECONOMY
and all the events " at are daily traRspirnS through
He never does any ching without the shonghtful
deberation lie watches the movements OF foreign
statesmen. parp aments, Diets he keeps his sharp
armies; he M assures intended conques,s, ncursions
military and political depredatons; and, above ALL
home prodp ctions ana industry, and OF the reclpro
cal relations OF European and American products
Us they arr, passed from one shore co the other.
Mr.. Kefchum is not, however OF the large class
who
SPECULATE UPON THE CREDIT OF THE COUNTRY
looking for It's destruction and hoping for Its speedy
downfall.
1t VI but one OF the incidents of Wall street life
night without large gold balance, believing that
ere the morning comes some great dsas-
men dream Of OUT foreign 0hS wars fea oi donsss
nc troubles and diplomatic complications.
they lay awake thinking Of Cuba; how her recog.
nion as belligerent or her f0rcibie occupation by
the United States might lead to war with Spain, and
then gold ut 2OO-what reasts Of profits then Or q
bama claiIns-how gold would shoot then Or war
IN Germany, where our bonds are held, and where
Ties might be thrown unfortunately upon the mar
ket--waaat
Or an aggressive policy by the administration to-
ward nations that would resistwhat oceans OF pro-
ITS
Under such exciting Influences and such deusiye
hopes that founded IN Ill for the r country these
men grasp the morning papers tor intelligence that
win send gold up and NIL their own pockets. Thus
is the mania kept up; thus are these men deceived
and thus do they leave Wall street losers but rarely
winners II Is trading upon our national prosperity
IL Is wishing for the nations evil. And yet these
same men llve and day by day pursue the same dis
assons policy. They are as short-sighted as they
With Mr. Ketchum the case has been very differ
emf. In the operations that came TO an unfortunate
csose yesterday he mad been constantly acting upon
that the imports would be very heavy and that the
demand for coin would therefore lie very great. He
looked, therefore, for heavy rise In gold, thinking
that its consumption would be so large that grain
and cotton exports would not keep up the equiib-
This theory has been wrong, and Mr.. Ketchum has
failed; and In his failure Mr.. James Boyd has gone
down with him. The mistake was here:-The great
national export is cotton. The crop this year Is
abundant-surprisingly immense. When 1t goes to
Europe goes IN the place OF gold for value returns
AN EQUIVALENT OF COIN.
Profound as Mr. Ketchum's sagacity has been, he
| weight deserved. He underestimate the re-
sources Of the country, aud fixed the date
100 far ahead. This is all evident from his
failure. Had ne delayed MS specnlations for thirty
DAYS hey might nave h nae very different result
closed yesterday he Immediately went into
GOLD BUYING AND SELLING.
In his. earlier times, during the war, gold was his
manila He seemed to understand II and manlpu-
late Its fluctuations better than any OF the commod
ties Of the market 1t is related OF him that he was
the shrewdest man on The street. He was an admi-
rable strategetarian.
1t is said OF him that In the days when slight causes
would send gold up or down he would buy 81, OO0 OOO
or s2000.O00 OF gold and put half OF the amount on
board European steamship to sail &C once for
Europe. The news Of such large shipment making
gold scarce in the MARKET and Its withdrawal from
the channels Of trade would send coin up He would
then sell and order his shipment back at once by
mall or. II possible, by telegraph. BY such keen
movements ne became famous on the street. The
result result was he had large crowd OF fol-
Ketchum may have done subsequently. there
are thousands to this day who are boated with
riches which were reaped by the sharp edge OF his
acute mind. Who, then, will suppose It was posi-
BILE for such man 20 keep out Of Wall streets
EARLY IN MAY
he began the work quietly In the street. He would
60 down in close carriage and seek the Office of
Mr. Boyd. at No. 80 Broad street. Mr. Boyd, who so
honorably announced his own bankruptcy yeser.
day In the letter printed above, went heartily into
cooperation with Mr.. Ketchum and thoroughly
Ketchum was working for the position he once held.
He was ambitious to regain
THE POWER He ONCE HAD.
To assist him, and with no attempt or desire to
reap proft OF MS own, Mr. Boyd made his assistance
Mr.. Ketchnm therefore, started with ample funds
and steadast friends He was at once brilliantly
successful. He bought largely Of gold when gold
became dun ana everything was nat; foreign ex-
changes fell of; the immense new cotton crop broke
coin set in from the East. First then, Mr.. Keicnum
was
BEAR IN THE MARKET.
and he made largely OF thousands of dol
lars. Then he became a bull IRON theory OF his
own that the imports would be large and that there
would be no disturbing influences of political econ.
Omy. Then he lost, and finally irretrievaby.
During these operations 100000 were made and
and the process Of absorption was rapidly going, on
amounting to 81 900 day for interest, and large
amount mount 10, for snrnkags" and commissions
market Mr.. ketchum went into stocks Then, also
he bought SO ooo 600 IN Pacific Mall OHIO and Mis-
much lower than they are now.
FOLLOWED BY HIS EVIL DESTINY,
called for more COMMISSIONS, the Stocks We're heavy
losers ana Mr.. Ketchlm continue d long 5000 O00
He bought and sold on light margins, and Mr..
Boyd, not only his true and confding friend, was
his constant supporter In every movement.
1t will thus he seen that Mr.. Ketchum had hts
his heavy losses in gold. Ii was practically hedg.
ing, but 1t did not save him. The end came too
soon. II ssSs -. -e.s
II the reader Will take care to study these opera
lions he Will dnd thai they were marked by extra
ordinary financial abinty. Mr.. Ketcnum almost
new conner on the street and nghting against des
tiny and the better Judgments OF his best friends,
made "a mistake only as to time. He overrated the
THE JULY GOLD INTEREST
but MS plan was perfect only developed too early
The 900 shares OF stock that Mr.. Boyd carried
were IN the bull interest; so was the $50O0O0O in
gold. But the crash came. lis announcement ia !
the Gold Room made profouad sensation.
GOLD FELL
instantly from l11T to 1117 but recovered as will
be found In our financial columns. All sorts OF |
rumors were anoat-some for good, others for evil.
Parties having contracts with Mr. Boyd did not sell
under the rule, but properly closed out their stock
In the regular way. But for such timely turn the
panic might have been greater than it was-doubt- |
less general and rapid decline in all values. |
Or course universal sympathy was expressed for Mr..
Boyd, especially when it became known that his fail
ure was caused by Mr.. Ketchum not respondi ny |
TO the call for more margins. Still there were mean |
efforts at
PANIC
on the part OF some dealers who were short of gold
and who were watching for just such an eXgency- |
. break IN the market-to catl out gold under the /
rule. These irmS reaped their profit.
when the note OF MIR. Boyd was read the Board Il
SOLD OUT NINE HUNDRED THOUSAND DOLLARS GOLD |
or his account. under the rule at from 111s Il14.
Mr.. B0yd's liabilities VIII not exceed $50, 0J0 and
statement Will soon be made, whentt is believed he
VIII re-enter upon his business with the assistance
md cooperation Of his brother members Of The
Board.
y The reporter called upon Mr.. Boyd at his ONCE
So. 30 Broad street, last evening" at four O'Clock,
md found that gentleman In a very gentlemanly
mood, and willing to speak freely as to the many
peculiar points surrounding this interesting rO-
DAxrA l.tAl.1.