New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-04-08
A WALL-ST. CONSPIRACY.
THwARTING THE SCHEMES OF a DESPERATE
CLIQUE.


FIVE MILLIONS OF MONEY "LocKED Ur" BY
| THE TENTH NATIONAL BANK--LEGAL PRO-
CEEDINGs INSTITUTED AGAINST IT-HsTOKY
| OF TIE PLOT.
Much excitement existed in the city, Saturday
afternoon and yesterday, in financial circles the
| threatened panic i'll the money market. caused 10y
ring of spectators. chiefly Of BLACK Friday" mo-
| tOrety, who, being largely short Of stocls, have
made desperate effort to retrieve their fortunes by
locking up" legal tenders and thereby creating
| stringency in the market and q sudden decline
in stocks. To accomplish their pnrposes
they are said TO have secured the
services of the Tenth National Bank, and the result
| Of their operations began to be felt SATURDAY
with the prospect of partial repetition OF the fack
Friday" scenes during this week. The excitement
was increased yesterday the rumOr became clr-
rent that a prosecution would be begun to-Gay
against the Tenth National Bank for violation OF the
National Banking laws of the United States locking
up money. reporter OF THE TRIBUNE visited Assistant
United States DisrictAttOrney Purdy last and
| ascertanel from him that the well founded.
the following complaint ha7ing been lodged before
United states Commissioner Davenport
Southern District Of Ne,o- YORK; ss.: 4 j. Par 80
beng duly sworn, says on informati'n .. H.i"i.
that at the Southern District OF New f,".. .n 'r
about the fourth day Of April, 1SI2 lar- .Hrr oi
checks Tor the payment OF moneys 70 WIZ loi ne pa
ment OF four million of dollars received and De-
as the Tenth National Bank OF the City o! NcwfoIS;
aud that thereafter on said day and year aforesaid d
National Banking Association did Withhold from lsr =
certain larger AMOUNT 0I United states roy ana
National Bank notes, the exact amount to thc pou nj
United states approved February 10, 1872
Wherefore. 10y reason of the premises dcponont pryS
said National Banking Association may De examined iy
this Court and said bank committed TO await t.c art'
or the Grand Jury OF the SAID United states Tor t S"-
ern District OF NeWYOgk. a u. 90 ln'.
subpenas have been issued to theicicors and directors
OF the Tenth National Bank, requiring t9em 10 appear 81
IL O'Clock and testify in relation 10 tue matter.
The history OF this conspiracy is as follow Several
weeks since the Wallst operator and old Eli, I ,n
Henry n. Smith, together with Jay Gould ID EuuJ"r
Of followers began withdrawing money from = uariet
in order to produce fall in stocks being heavily .ucr
ested on the bear side. They succeeded in making money
very DEAR and running the rates " interest high
figures but owing to the great strength al
the bull party, and the sudden overthrow o.
the Erie Ring and consequent large ed
vance in that stock, together with almost mprecc
dened support nom outsiders tae sock market con
nUed 10 advance the face Of lie great sun ney 81
the money market. The ring Of b9ars rendered
desperate by the heavy losses incurred b. tho uGooh d.
for rise stocks. aud III interested ToFc driven 10
their Wits end for means to break the 1,aet AID
produce decline While in this extremity, tie veteran
stock operator Daniel Drew. who hsd previously be.a
engaged on the bull sde having sold 1920 sIres 81
Ere at 81, " sellers ten months" in order 10 u.cio.
his Erie stock at lower figure than he h.I
sold IT, Unexpectedly came 70 their assi,ianoo and
joined with them in their Efforts to produce panic and
decline in the stock mark Thus reinforced they began
still more desperate measures than hey mad yet at
tempted On Thursday last, Henry y. Smith, formerly
OF the notorious firm OF Smith, Gould MARIN. dopo,-
tied in the Tenth National Bank checks for abplt s
600, and Immediately drew the money over TIE counter
Ia United States legal tender. At the TINE the
President Of the bank called IL OutsIiuS loans o. te
bank to the amount OF about $4,000. tAus withdrawing
from circulation at and without warning 10
the business public the enormous sum O. <b,jg-
900 in legal tenders and reducing ,As bunk reserve 90
within about million dollars cf ti legal int. Another
branch ofthis conspiracy operated through th' Bank o.
Montreal which for his been pa -e !.n.r
OF money in this market il agent al this diy httIn-
been induced to withdraw from circulation ooHtd Pee
bic portion OF the banks funt5 4it-rtui !0c'ar up i
the legal tenders which they could control, %; 80 .n
went into the open market an bid oXhJr lnt rl r
money. 1t is understood that on Saturday atnrnoJn
brokers, working in tn il interest ana tn. t"ir
direction, bid ouehalf per cent ABOVE he l' rt' ol
the Use OF money, paying the Interest an2 Nsr the
money the hands o. the leader 10 prevent lis usc by
other parties
Owlngto the closencss in money. inIr''' by thoe
men, the merchants of the city SER gsaty 'nbar-
rassed by inability to ct ther notes discounted at ne
banks and the business u .c Corn cAan; pa, been
brought almost TO q standstil Eminent lawyers arc Of
the opinion that the Uned states l4w pa. li.E con.
spiracy "a broad enough to this or q that
under it these men may be indicted and semi 10 ste
Prison. 1t is also stated that leF the provisions u
this law several prominent Wdist operators WI. be
arrested and brought trial. As the warrants fot tis
purpose have not Jet been issue II would oc Improper
to mention THE Of those implicated blt Is prob
able that action will be taken ga the macer today
Telegram sent to Secretary Boutwell, requesting
him to relieve the money market and thWart the eva
designs Of The consprators which he can readily d. ~
Ioanng portion Of the large reserve in the Treasury