The New York herald., 1872-09-18
ket. While endeavoring to see what the future
promised, Mr.. Smith, that Is his name,
HENRY N. SMITH,


looked goldward, and its nrmness in the vicinity Of
lib tempted him to think that with the existing
oversold condition OF the market 1t would not be
bad idea to buy gold again. He was not largely in
terested. however, until toward the close OF last
week, when the enthusiasm OF Jay Gould won him
over to full espousal OF the ''bull' movement, the
policy proposed being not any great advancement
OF the premium, but rapid and close "corner''
upon the ''shcrt" interest which, reposing in
faacied security, had been gradually growing In
proportions. At the same time that the arrange
ments were making for the conduct OF the specula-
tion in gold the views OF Mr.. Smith as TO the future
OF the stock market were found to have coincded
with those OF Mr.
JAY GOULD,
who had beeu was and still is if all the signs be
true, ''short' of Erie to very large extent. The
par mobile ffuhum OF so many desperate Wall
street venture again became allies and were in the
field. The hesitatng, cogtat!ng Smith had given
over his indifference and become an active ener-
getic "bear" When Mr. Drew bought his Erie
great deal oft came from Messrs. Smith and Gould.
The consequences must be foreseen. A battle was
inevitable, and Wall street has witnessed to-day
the first result OF the great contest between these
financial giants Indeed survey Of the situation
recalls strongly the memorable Fall OF the year
1865, to which the present season bears enough
semblance to confirm the truth OF the saying that
HISTORY REPEATS ITSELF.
Then. now, the leaders OF the "bear" party were
Smith and Could whose forces comprised the late
James Fisk. Their chief opponent ON the "bull'
side was then, now, Daniel Drew, who in en-
deavoring to "corner" Erie became the victim of
the trick of overissung stock which he had taught
his apt pupil Fisk and had played himself upon
Commodore Vanderbilt. These being the elements,
therefore, OF the conflicting sides Of speculation,
the results should not be surprising, however
much they may have perpeXed the thousands Of
outsiders, who stood nervously at the telegraph
tape all day to-day and wondered 'what the
dickens" was the matter with the market. AS Mr.
Drew frightened his
GRASP ON ERIE,
Messrs Smith and Gould tightened their clutches
on gold and money. The squeeze in gold had a
double effect 1t made money for the clique headed
by Gould and it incommOded the Exchange street
brokers who were regarded as the allies OF Mr.
Drew in the Erie corner. That is, the triangular
duel ran something in this shape. The clique
squeezed gold on 'the Germans;" the latter had to
retort on Mr.. Drew by forcing him to take care of
| Erie while they took care Of their gold, and
| Mr.. Drew retorted on the clique by shutting
Off the supplies of Erie; all of which would
be pronounced by Sir Lucius O'Triggcr
VERY PRETTY QUARREL
as it stands. AS the game began in Erie we trace
of that stock under Mr.. Drew's merciless fingers
evoked from the ''bears a luctuating series of
cash considerations ranging from q to 2ls per cent
for the of the stock in this afternoons deliv
cries. That is, the operator who was ''short" OF
hundred shares had to pay from twelve and half
dollars up to two hundred and fifty dollars for the
use of a hundred shares In keeping his contract
alive. The stock naturally advanced under this
pressure, and at one time touched 55 cash, the
other extreme being 49al. The difference between
CASH AND REGULAR
in one exceptional instance, where doubtless both
orders were very hurriedy executed, was Ak per
cent. The gold clique were next to rctort They
had opened their guns on "the Germans at the
very beginning of business in the loan market by
demanding and getting as much as u per cent for
the use of gold at the Clearing House, and ia the
desperation of the succeeding struggle they put
this rate up to IA per cent. In other words, they
compelled the "shorts" in the gold market to pay
s125 for the use Of each $4,000 gold required to
settle accounts at the Clearing House or at bank.
This was the highest figure mentioned n the book,
but there is reason for believing that the brokers Of
| MR. A. 7. STEWART
paid as high as ~ per cent for one large lot OF
gold, which he was using in his business. and one
rumor this evening says that the "corner" OF to-
day has cost him as much as S75,0OO cash. This
rate has been exceeded once only IN the history of
the god market corner" several years ago
having put the borrowing rate to two per cent for
one day. The adroitness and silence with which
the present 'corner" was projected and carried
out have been a prominent feature Of it, such
movements generally being noised about q long
time in advance of anything being done. Foreign
exchange was demoralized, and prime sixty-day
sterling sold at 107 for cash, or about per cent
below the previous days standard
THE ttCORNERn IN MONEY
was naturally further development OF the great
struggle between the parties to the fight over gold
and Erie. Mr.. Drew needed money to corner Eric
and the clique needed money to corner gold, and
between their several efforts the rate on call was
run up to the extravagant rate OF " per cent for
the day, equivalent to 225 per cent per annum.
The early dealings were at what now seems the
modest and insignificant rate OF 8 per cent, and
strngcncy was not precipitated until about two
O'clock when the ominous appearance or '7 per
| cent godr was followed by commissions" for
TURNING STOCKS
the demand continuing until about twenty min
| utes OF lour O'clock when the quotation was "a q
! u per cent. At quarter to four a counter-demon-
| stlation was made, and some money changed hands
at as low as per cent, but it was evidently done
for effect as no checks could be certified at that
hour. As a consequence the stock market wavered
and declined and, In the last half hour of business
went of quite rapidly, the fall in prices ranging
from one to three per cent. The Wander
bilt patty sustained their favorlte Union Pa
cifc throughout the depression, and were
credited with buying about 5o,C0) shares dnring
the day. the price of the stock showing at the close
depreciation OF only per cent Our com.
parative table below and our table of closing
prices will illustrate more fully the effects upon the
stock market. The virtues of the four O'Clock plan
OF adjournment were seen in the arrestng OF the
growing excitement OF the street. Over night
calmcr thoughts will prevail and, as conse-
quence, the market tomorrow Will be likely to be
swayed by the consideration that money cannot
remain very long 80 stringent or gold and Erie
continue so scarce as to-day.
GOVERNMENTS LOWER,