Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-03-23
THE GIGANTIC GOLD Peel.
A Combination Which StaggeTs
the Business World.
Brokers all at Sea-FffteeR MiIIion
Dollars in the POOi-Pushing Geld

tanned, Is engineered on a purely Cdsn
basis. In the locking up Of gold hith-
ertO the practice Of the cliques has
been to make their original purchases
Of cash gold, pledge it as collateral for
q loan Of greenbaeks, buy more gold,
pledge this in turn for grsenbaeks, and
so on indefinitely. Bat II this case the
combination is what Wall street men
call ''solid." It moves but leaves no
trail. Gold is taken from the street By
the million, and disappears mysterious
": still those who hope to see it turn
up in the banks are disappointed. 1t Is
never hypothetical with the banks; it
does not find its way back to the street;
it is hidden from sight. More than
this, the operation of withdrawing gold
from the market Is slowly and mystic
riJusly going on every day. The pre-
MUM is advanced point by point at the
VIII Of the pool, and cash gold, needed
fer business purposes, can be bought
or borrowed only from its agents and
at its own rates. Wall street never
was so mystifed. In former pools there
was always something upon which to
form an accurate Judgment, but IN
this there is nothing calculated to de-
finitely point out the personelle Of the
CLIQUE. Tie street is full of rumors
and gossip, but when an inquirer tries
to pin his informer down to solid facts
he finds that most Of his statements
are founded upon conjectures more or
less justified by circumstances.
WHEN THE POOL WAS FORMED.
This much Is conceded, however, on
all sides, that the pool is one Of the
strongest, and by long odds the most
shrew3ly managed Of any IN the his
tory Of monetary gambling. 1t was
formed VIXEN gold was selling between
I'D and 113, but so quietly were its
movements conducted that 1t was many
days before the outside operators were
aware Of its magnitude. Point by
point the indicator was marked up,
until yesterday it recorded ll64 at one
time, the market closing at 1l63. Now
and then indications were thrown out
By the artful managers Of a tendency
to weakness. Then the bears came in
with a rush, and the result was Just
what the clique wanted-the formation
Of a heavy short interest. Holding
nearly all the cash gold the clique fixed
its own rate Of interest, squeezing the
shorts on one occasion to the tune Of !
per cent per diem. Knowing that any
suddenness Of movement on their part
might prompt the interference Of the
Government, which killed the famous
Black Friday combination, the man
AYERS worked slowly, bat surely,
strengthening their position day BY
day. The scarcity Of gold and the con
diti0n Of the finances and mercantile
affairs favored them, and besides this
their members were men Of immense
resources.
Opinions as to the managers Of the
clique differ almost as widely as the
poles. Some brokers are positive that
Uncle DAMP Drew and Mr.. Eugene
Robinson are the head and front Of
the scheme, but there are others who
contend that the manager and chief
spirit Of the combination is Jay Gould,
whose recent brilliant achievement IN
connection with the Pacific Mail and
Union and Central Pacific have greatly
added to his fame as a shrewd calcu-
lating fiuaCcier. An operator who
holds this opinion gave his reasons fuT
his belief to a Sua reporter in these
words:
JAY GOULD.
Il tell you Jay Gould is the shrewd-
est operator that ever came into this
street. He went into this pool when
gold was ia, but it was a long time
before anybody suspected lie was In it.
Even his own old brokers, men through
whom he has habitually dealt &c. J.
Osborne & CO.., have not, as I can
learn, made q single turn IN this matter
for him. He caused the impression
throughout the street that ne was Op-
posed 10 the bull movement.
so fixed vas this notion IN the
minds OF many merchants and brokers
that instead OF covering their shorts, -
they went deeper IN, convinced that the
opposition Of such a heavy weight as
Jaw Gould would soon break the pool
and lower the premium. Thus a ire
mendously heavy short interest was
formed, and Gould and his pool quietly
took IN al the gold that came along
and locked 1t up. To aid the scheme
stiil further 1t was given out that the
bears in stocks were buying gold with
the ann Of decreasing stocks and tight
ening money
Reporter-Wh..t other capitalists are
IN with Gould?
Operator-Nobody can answer that
question definitely. l think, however,
that Russell Sage, who IS immensely
wealthy, is largely interested IN tie
scheme. He is said to have bought
s.. 100000 gold at the start. How
much he has taken since 1t is impossi-
bic 20 say. Butt was going TO tell you
some of Jay GOuld's management. To
mislead the street his chief broker, Mr..
Il. K. En0s, who Is doing most Of the
work II the gold room, made his head
quarters with Robinson, Chase 6 Co.,
and it is probably due to this fact that
the rum0r was spread that Daniel
Drew was at the head Of the pool, and
Dir. Eugene Robinson was his right
hand man. Drew may be II this thing,
but 1 don't think he would Join hands
with Gould Just now. 1t would be ike
mixing oil and water.
Reporter-HOw much cash gold do
you think the pool controls?
STRENGTH OF THE POOL.
OpsTator-The amount IS estimated
by some at $4,000 900, bat 1 think
SI2,000,000 is nearer the true figure.
But the puzzle in the whole matter is
as to what becomes Of the gold certif-
Gates. They have disappeared utterly
and left no SIGN. This shows that the
pool is the strongest on record IN cash
resources. Nobody knows of a single
loan negotiated by it with a bank, and
from this l argue that it is composed
Of some Of the richest men on Wall
street. They must be rich to buy and
hold millions Of gold in this way.
RsTorter-Tben you think the mar
ket IS practically IN the hands Of this
pool.
OperatOr-Most assuredly. They
can run the premium up to 20 or % If
they want to. Jay Gould knows ex-
actly what the Government can do,
and he could make h.s market long
before the Government got ready to