The New York herald., 1870-03-02

WashinXt0h on ihursd3y, the 23d, ana tnat evening
had consultation with the Secretary Of the Treas
ury concerning the condition OF the gold market.
The testimony OF Mr. boutwell, shows THAI bosn the
they should II possible avoid any interference on the
part OF the governments In q contest where both
ce 'Se Sa oo
higher 80 as 10 threaten general financial panic 1t
would be their duty 10 interfere and protect the
ing the prico advanced rapidly. and kilograms
poured into Washington from all parts OF the
country ex hbtng ,ns general alarm and
prevent = financial crash. Soon after eleven the
Secretary called at the Executive mansion. Con-
cerning that visit Mr. Boutwell, says the President
expressed the opinion Immediately that ought to
Sell nye millions. i expressed the opinion that we
should sell three millions, which Thought would
be sufficient for the purpose. I returned almost
Immediately, without saying to him whether would
order the sale OF five millions OF three millions
that gold should be sold. Wnile going back TO my
Office came TO the conclusion that would advertise
the sale OF four millions, ana Immediately upon my
return to myoiflce dictated despatch, which was
copied by Mr.. Bartlett my short nAnd writer direct
lng General Butterfcla to give notice that ne would
sell $4,Oo000O oil god and buy Si,0000oO OF ponds.
The message was not in cypner ana there was no
attempt To keep II secret IL was duplicated and
copy sent over each OF the rival hnes Tne one sent
by tile western Union line was dated at the Treasury,
forty-two minutes past eleven Washington time,
and reached General Butterfeld ten minutes past
twelve, New York time That sent over the Frank
lin line was dated AZ the Treasury forty FIVE minutes
past eleven and was delivered TO General Butserned
at nve minutes past twelve New YORK time. Inc
actual time occupied IN transmitting the DE-
spatch from the Secretary to General Butter
neld. including messenger travel at each end OF the
line, was eight minutes the same over each line;
but in toe branch Office OF the Western Union Com
pany, washington. there was delay OF elght mlh-
utes before the operator could get control OF tue wre
The committee, after careful examination. found no
evidence that any officers or employees OF either
company were unfaithiul 70 their duty IN regard
in some Of INC seesraphic oiiices IN New YORK oy
outside experts standing near the instruments.
and thus the news may have been known ia tae
Gold Room tn advance OF ITS publications; but the
evidence on That point Is not conclusive. A few
minutes before noon, when the excitement ia the
offered to sell one million at 1872; then another
million al 15l and thea five millions more at 100,
and the market broke. About ten minutes after
wards the news came that The Treasury would sell,
and the break was complete. Within the space OF
fifteen minutes the price fell from 100 TO 133 and IN
tho language OF u wlt1ess, haf OF Wax street Was
involved in ruin. IL was not without difficulty that
the consplratOrs escaped from the fury OF their VIC
TINS, and look refuge IN the up town stronghold
the oflce of the Erie Railroad. During Thursday
and Friday they had sold out at high rates
large part OF the gold they had previously
purchased ana had made many private settle-
ments at rates ruiuous 10 their victims They
at once repudiated all their purchases made through
Beiden and his brokers'. amounting to seventy mil,
Hons, ana II Is evident that either before or after the
fact they tad bought Belden's consent TO this
vllany. The Cola Clearing House, with It's almost
unlimited iacltes Tor settling the accounts OF gold
gamblers, was sulfocaed under the crushing weight
OF ITS transactions and It's doors were closed.
Whatever may have been the Goal pecuniary
result to the c0n5pirators 1t evident that that
day Mr.. Fisk, at ieast, supposed that they had
suffered enormous losses. lie called on Coroin and
overwhelmed him Win threats and denunciati0ns.
Ia his evidence concerning this interview he says:
knew that somebody had run right u.s. and
told you would consider The whois party pack OF
,sy ANA s1pessa s s & xhsn we % 10 ssar o
don't know whether you have he'd or not and don't know
table weeping and wainy and gnRshing my teeth.
Gould seemed to have hope that Corbin might still
be OF some service BY gong TO Washington ana
disaster all paroles might be mlgated by suspend
ing the governments order 10 sell gold. Fisk Joined
TINS proposal win but little hope and saia regard
CorbIn's going -. thought that tie further or he
was the happier should De." Two days before this
C0rbin had written to the President, denying, i'll the
most positive terms that he had any interest direct
or indirect IN the gold movement ana ventured To
70 to washington on Saturday or Saturday night,
and Sunday attempted 10 talk With the PRESIDENT
Oh the subject. According TO his own testimony and
also tnat OF General Porter the President cut hm
snort with the remark that that subject was
C osed up C0ro.n pursued the attempt no fur
ther and that night returned to New YORK. The
fact that they received no despatch ON sunday and
that the next morning furtner sales oil government
gold were ordered showed FISK and Gou.d that Cor
bins misslou mad failed. lie made no report, and
the three conspirators never met again. Fisk says
Of Sins mission OF Corbm's:--"laatters took such
turn that II was no USE. IL Vas each man drag out
his own corpsc.n
method OF saving what they could from the ruins OF
Friday. To answer the demand Tor settlement
scores or oe sourIs IAey New Yoea
city SINGLE day Twelve injunctions and judicial
orders, whicn placed the Cod Clearing House IN
the hands OF receiver restrained It's officers Irom
making settlements except on the order OF the
courts restrained the officers Of the Gold Exchange
from enforcing against the consprat their rules
ana compel settlements among It's members.
The committee do not consider II necessary to fol-
low the history Of the settlements further.
In reviewing the whole subject the committee sub
mt the following concusi0nS:-
FfSt-Ihe Gold Exchange ana the Gold Elk.
change Bank are creatures OF this country and this
decade alone. All their operations are founded on
the difference between the prce OF gold and OF paper
money. All the foreign trade OF the country and
indeed all transactions where the commodity Is pur
chased currency ana sold IN another requires
u purchase, loan or sale OF gold to complete the
transaction. TO meet this Iegti nate necessity Of
business these institutions were organized IN 1913
but soon became the instruments OF reckless specu-
lation. The prominent bankers and merchants VINO
testified before the committee were nearly unanl-
nous In the opinion that there was no sufficient
for the existencc OF these Institutions. that
to be destroyed Tho testimony OF william Z. Dodge
ST., expresses the OPINION Of the comnittes and OF
many witnesses he says IN regard to the Gold
RoOm:-"My opinion Is tnat without that 0rganlZa-
lion would have been utterly Impossible to get up
the panic; in the open market NO such excitement
can occur; IN the Cold Room gold, or rather the
ownership OF gold, changes hands vt fictitious val
ues; men OF almost no capital buy and sell gold,
which they do not in reality possess, merely for the
purpose VI speculation; there Is NO legitimate Dusi-
ness about II, and the commerce OF tne country Is
Obliged TO mako settlements at the current rate OF
Xcl0 according TO the ucLltlOuS Prices GStaDiSneu
by those gamblers; unscrupuleus and irrespon-
siDe men, without q hundred dollars In the world,
either gold currency, buy ana sell to the extent
OF millions at fictitious prices and every merchant
In the United States IS At tneir mercy The leRiti-
mate gold transactions are very large but tney bear
no kind ot proportion to the amount that changes
hands in the Gold Room solely matter Of specu-
atiOn. ON q return 10 specie payments there would
De no necessity for goid room or gold exchange
bank IN the regular course OF commerce--not the
least ia the word. 1t might exist Tor q time as a
mere gambling house-nothlng else. Take the Gold
Room out vi the way, and the commerce In gold Will
regulate Itself. l look upon the whole thing AZ
gambling operation. Such Tansacnons ought to be
placed entirely outside the pale OF commerce. The
law ought to treat IL As gambling for that what
ls; gambling In the very life blood OF the nation-n
the currency oI the country In which every person
throughout the land is Interested Ii Is proper to
aad that che testimony OF MI. HodgsKn gives the
strongest points mai have been presented Ia favor
OF these institutions.
Second-rhe gold conspiracy has already been 80
fully exhibited that but little more can said. Ii
Is evident thai the tendency OF gold was downward
and that tue movement OF the conspTatOrs was
wholly artificial and unnatural, and that lts effects
were most disastrous to tho legitimate business OF
the country. 1t dealt heavy blow to our credit
abroad by shaking the faith OF foregn capitalists In
the stability oi our trade and the honesty Of our
peope. At home It's effects extended Dey0pd