The New York herald., 1872-11-25
THE ABSENCE OF FAILURES.
The Way They Regulate Cor
nerS" in London.
COURSE OF THE GOLD MARKET.
Explanation Of the Rise on
Friday to la.
SATURDAYS BANK STATEMENT.
WALL STREET.

SUNDAY, Nov. "a, 1872.
The great feature OF the week and the most i'm
bortant affair OF the Kind In Wall street for many
years was
TIE CORNER" IN NORTHWESTERN,
before which paled the gores OF every other cur
rent scheme and plan cOncOcting in the busy
SIaiDs Of the great speculative thrOng who do their
gambling through the medium of the Stock Ex-
change. That q .'corner'' was in preparation in
Northwestern was no secret The ''bulls' were
hDowp 10 be headed by Jay Gould, who was fresh
from "corncr'' in Pacific Mail which had elevated
That stock to 103, and the purchases OF Northwest
were traced TO the Offices in which he does
business II was not known, however, until quite
late III the movement that he had enlisted the help
OF such persons as Horace +. Clark and Augustus
6ebell, representative men of
THE VANDERBILT PARTY,
who in the opinion OF the Street, would as soon
have clasped hands with him as would the dough.
~ Douglas with the hated Marmion. But specula-
tOn like politics. sometimes makes strange bed
fellows. the so-called Tracy party were the orr
gina leaders on the 'bear'' side and they squrmed
. long time before the folds OF the rcorner" were
20 tightly drawn. We remember now how they
threatened all sorts OF things by way OF extrcating
themselves from the meshes Of the ''bull' clique,
New stock was talked of and again large issue OF
convertible bonds was proposed. But the ''bulis'
STOOD THEIR GROUND
and check ckmated each OF these moves by show or
equal strategy, not the least OF which the
demonstration OF their ability to take all such new
issues as the bears proposed. The Tracy party
slipped the leasnes at last by covering their
''shortsi between So and 90, and now thought
10 have gone over TO the enemy, leaving some Of
their friends, like Daniel Drew, fight 1t ont as
hest they could. The venerable MIR. Drew was
caught ''short' through his sales of 'callsr con-
fr.1 Sat ind IN Mort tntyac tarn hayfn haan
one Of the weaknesses Of his life Of which he is bv
this time very probably cured. He was ''short'' in
fhis way between fifteen and
TWENTY THOUSAND SHARES,
tut early in the corner Of Friday settled about
hall his contracts by delivering stock which be-
ODged 10 the widow OF the late Mr.. Keep, formerly
President Of The Northwestern Company, which he
probably borrowed OF that lady, who having been
holding it as an investment was quite willing to
eDiTuat Mr. Drew with its custody. The rest OF his
"Calls' be made good with stock borrowed from
the "pool'' or their brokers. On Thursday the
stock had been dvaDced 10 100, and great num-
Der OF the outsiders who held Drew's "callsr sold
~ the market and
CALLED THE STOCK.
These deman ds he supplied as Just narrated, and
hence the complication by which lie was so deeply
involved in the mesles OF the .corner.n On Friday
tbe "bears," led by Henry N. Smith, put in execu
sion plan which they fancied would demoralize
ibe ".aol' and smash the corner. This was no
.ess than the suddc. arrest OF Jay Gould on GRIM
NAL charge-that OF embez.ieWent-and MS sud
Den removal from Wall street to thA courts But
the plan tailed to work. raid was made OF The
market; but Northwestern, instead OF tumbling !
down from loo, as expected, went up to l5o, while
Jay Gould was
THE HANDS THE SHERIFF,
and eventually to 200 the same afternoon, after he
had returned to the street This figure made |
- order 70 shew the power the pool" possessed
Ne XII morning they lowered the quotation to l5o
and on that basis settled With the small shorts,"
accepting from still weaker parties g.,v .sv ,ncy we're
ab,e to paw The absence OF single failure in this
whole remarkable crisis is one OF the extraord-
nary features OF the occasion, and shows how care
fully the 'pooln picked out the rich men for their
big game, while treating
THE SMALL FRY
with sbrewd and careful mercy. by two O'Clock
On Saturday the '.shortsr had all settled excepting
teo IL is thought Daniel Drew and Henry Smith,
who remained refractory, the former obstinate to
the lac, and the latter Tending of his enemies with
Q threatened appeal to the Courts to decide the
matter by judicial investigation OF the real value
OF Northwestern, which, in his estimation, would
be fixed by experts at something like 10 IS per
cent. The dispute with Smith was suffered to lie
sn allegiance while the ''pool- pressed conclusions
with Drew, for whose account 640o shares were
bought in under the rule" just before three
O'Clock on Saturday afternoon, the price rising
from l55 to 2aO during the transaction. In the re-
iatioBs Of Gould and Smith In all this matter
THERE is MYSTERY
which the street cannot fathom. Were 1t not for
the preposterous character Of such thing the
street would believe them In secret league, fit
were only possible TO explain away the afldsvt Of
smith charging Gould with embezzlement and
fraud. Their actions otherwise are extremely sus-
pic0us Smith is allowed TO stay short Of his
heavy line while everybody else is dragooned into
settlement. II may be that Gould is waiting to
make his revenge all the greater, but "the street,
wonders at his eniency and suspects ''somcthing.n
II il impossible that Gould is stayed 10y Smiths
sepal qubble, for ne must know that there hun
dreds Of
DECISIONS IN SIMILAR CASES
10 the effect that the aggrIeved party is entitled
10 the difference between the contract price and
the highest market price during the whole interval
up to the close Of the litigation. In this connec
tion we submit IL to the wisdom OF the Governors
Of the Board whether they should not consider
the propriety OF regulating speculation as they do
In London As have heretofore explained
an English corner is far less dangerous affair
Than one IN this market In London stocks are
generally sold "ior account,m equivalent to our
ioiuiar way" except t6at tAe denvery ana pay
ment IN all such transactions deferred to set
nlng cay, which comes twice month. Should the
'bears" oyersel stock and be unable to make
their deliveries committee Of the stock Ex-
tnange, having jurisdiction in such matters hxee
the penaIty or rate FOR the use Of the stock which
the bears" must pay 10 the ''bulls and the whole
speculation goes over to the next settling day, and
20 on. The brokers would find that In the long run
they would do more business were ,hc market
nee 0f
THESE VIOLENT FLUCTUATIONS
Dhicb fIiRbten away the great mass VI dealers and