The New York herald., 1872-09-20
Is It an End to "Cornering" Op-
erations in Money?
rHB ERIE CORNER" MAINTAINED
Drew, Smith and Gould Rise
to Explain.
"A. T. Stewart Speaks for the Mer-
camille Interest.


On 'Change to-day wheat and nour were steady.
Cotton was weak ana lower.
-s THE EXCITEMENT IN WALL STREET
has undergone considerable abatement, and the
uaArket this forenoon even dull although In its
sene quite feverish. This earlier inactivity was the
result of general suspension OF operations pend
ting the action OF the Treasury Department as re-
CARDS the sale Of gold advertised for midday.
Meantime the feeling was unsettled by the an
~nouncement OF the failure OF another broker and
the suspension Of one two houses in the grocery
trade The impression gained ground as the day
advanced that the cliques and the corners" were
certain to meet with all the obstruction tnat sa
THE SECRETARY OF THE TREASURY
could throw in their way. The action OF Mr.. Bout
well in coming to the relief Of the money market
was the subject OF great deal OF sharp criticism
because 1t could be regarded as the interference Of
lhe United States Treasury Department In behalf
OF one OF the contending sides TO the speculative
contest In Wall street. The power to disburse the
government money so arbitrarily would give dis.
honest Treasury Secretary an opportunity for
stock and gold gambling, which should not be per-
mitted 1t is easier TO point out the evil in this
case than to suggest the remedy Mr.. Boutwell,
ACTED PERIODICALLY,
OF course; but the government should be above in
reference IN a stock gambling crisis and allow the
markets to adjust themselves, they would by
normal financial system -The earlier good feeling
inspired by the action OF Mr.. Boutwell, on Wednes.
day was encouraged by the further report from
London by the cable this morning that the Direc.
tors OF the Bank OF England had done nothing fur
ther with the discount rate, their contentment
with the minimum OF four per cent causing smart
rise in our government bonds in the foreign mar
ket. Meantime the gold market had opened at
Ila1 and had gone or TO 1Is% on the facts Just
stated,
THE. DEPRESSING TENDENCY
OF which Is readily perceived, especially as they
were aided by q relaxation In the rates for cash
gold. At noon however, the market suddenly
strengthened with the discovery thai the bids at the
6ubTreasury were thirty-fve IN number, calling for
total OF $40 go 0oe, gold, at prices ranging from
1122 to l140 the clique bidding ll4Sor 81 oO0, 900.
When It thus became evident that the govern
ment geld must go to the clique, as the sales could
not, with propriety, exceed the bond purchases
OF the previous day, exasperating as Was the me-
cessity, and when subsequently single million
was awarded to give the clique ss6o,oOo at ia
and $4,000 to the man who bid l14.ol,
GSLD ADVANCED
fraction by fraction until 1t touched Il47S. Here it
halted and remained quiet until within q few
minutes Of 1he close when a broker OF the cliaue
entered the room and gave one OF the attorneys an
order to put the market mp 10 ll5i&-a command
hnat was Ia1tnfullv eXecuted-the last sales being
made at that price and the quotation closing I15k
116A, the general scramble 60 cover short sales
being accelerated by a cable despatch from London
that our bonds there mad fallen or again late In the
day In consequence OF the depression in the gene.
raj market caused by another heavy commercial
failure. And so ended the operations of the pool
IN the gold market Meantime -
MONEY
had opened at plain per cent, currency to gold
interest, but by the time the ascendancy OF the
Clique looked like being restored the rate call
had hardened to q per cent commission In addition
TO legal Interest equivalent to about so per cent per
anaum. Naturally the stock market dropped at
THIS time particularly as 1t was known that the
Clique brokers had again gone around 10 the banks
ana collected greenbacks for the face value Of the
cernned checks which they had withheld from their
own banks and the Clearing House. But their high.
handed career In this procedure was doomed 20
meet most unexpected obstacle in the
DOWNRIGHT REFUSAL
OF two OF the banks TO pay greenbacks for the
checks 80 presented. The institutions are the |
City Bank and the Bank OF Commerce, two of the |
soundest and most reputable In the city II not in
the United States Mr. Moses Taylor, OF the City |
Bank, de1ed the clique to their teeth and willuy |
accepted tho consequences Tho cashier Of the |