Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1870-03-09
REPORT TOFMR. GARFIELD on THE
GOLD PANIC OF SEPTEMBER.
Vindieatlon of the President.


Gen. Garfield, chairman of the COM
mittee on Banking and Currency,
made report on the 1st inst, on the
gold panic. Il gives eireumstantial
account of its history and comes to
the following conclusion, in view of
all testimony:
First-PrOminent bankers and mer-
chants, who testified before the COM
mittee, were nearly unanimous in the
opinion that there was no sufficient
reason for the existence of Gold Ex-
change and Gold Exchange Bank
that they were source of measureless
evils and ought to be destroyed.
Second-The gold conspiracy dealt
heavy blow at our credit abroad by
shaking the faith of foreign capital
lists in the stability of our trade and
the honesty of our people. Hundreds
of firms engaged in legitimate busi-
ness, were wholly ruined or severely
| crippled. Importers of foreign goods
were for many days at the mercy Of
gamblers, and suffered heavy losses;
in fact the entire country waS injured.
| The foundations of business and NOR
ality were shaken, and the numerous
defalcations that shortly followed, are
clearly traceable to the mad spirit en-
gendered by spectators.
Third-The Committee find wicked
and cunningly devised attempts Of
conspiIatOrs to compromise the Presi-
dent of the United States or his fami--
| ly utterly failed. Corbin, using the
| opportunity which his family relation
| ship to the President afforded, and
I under that worst form OF hypocrisy,
which puts on the guise of religion
and patriotism, used all his arts to
learn something from the private con-
versations of the President which
could be made profitable to him and
his conspirators, but with these and
all the efforts of his associates, the
testimony has not elected word or
an act of the President inconsistent
with that patriotism and integrity
which befit the Chief Executive Of the
nation. The message sent to COrbin
when his duplicity was first suspect
ed, and the order which laid the
strong hand of the Government upon
the conspirators and broke their pow
er, are the most significant declara-
tions that the President held and
treated them as enemies Of the credit
and business of the country. The re-
port relieves Mrs. Grant and General
Porter from any suspicion Of gold
gambling.
All public funds entrusted to Gen.
Buttertield were faithfully accounted
ior. 1t is not conclusively proved
that he was interested with the con-
4piratOrs in raising the price OF gold,
though on this point the testimony is
conflicting. Gould swears positively
he bought two lots of gold for Butter
.ield, amounting in all to one million
| and a half dollars. Butterheld, also
under oath, denies this statement
Both Fisk and Gould swear they re-
ceived messages from Butterfield aud
| answers to messages which they sent
during the days of the panic in refer
ence to news from Washington, and
this statement receives some support
from the testimony of Mr.. Brown,
messenger of the Sub-Treasury. II /:
proved by his testimony that during
The days of the panic, two firms o
brokers sold gold on Butterheld's or
der. and for his profit, and that during
his whole term of Office he was deal
ing largely in United States bonds OF
his own account. When asked by
the Committee whether he knew o
any officer of the United States whC
was directly or indirectly interested
in gold. he answered nQuafihedly II
the negative, but when afterwards
, confronted with the testimony o.
Seligman, concerning his purchases o
r gold, he admitted that it was true
The committee recommend the adOp
ton of the following resolutions:
/ 81, ffea
Means be instructed to report a bill
, Ievying such tax on the TRANSACTIONS
of gold exchange and the gold ex
change clearing house as in theil
Judgment the interests OF the country
may require.
That the committee on Judi
ciary be instructed to inquire into
the expediency of reporting bill tG
define and punish conspiracy against
the credit of the United States and
the business of its people.
That the committee on Banking
and Currency be instructed to inquire
whether any further legislation Is
necessary to prevent the improper use
of certified checks by National banks,
and that they have leave to report by
bill or otherwise.
Messrs. Cox and Jones unite in 8
minority report. They contend the
inception of the gold plot was involv-
ed in the appointment Of the Assist
ant Treasurer at New York; that ii
was encouraged by the changing
policy of Secretary MeCulloch; thai
the sales of gold, if at all made, should
be regulated by law; that the COM
mittee refused to investigate the con-
duet of persons, including the Presi-
dent, in Washington, and that there
fore the investigation was partial.