Evening star. [volume] (Washington, D.C.) 1854-1972, 1878-12-21
THE RULE OF THE GOLD ROOM.
History of the Institution Which
Resumption AbOlishes.

born of an emergency, has had more OF the
praise and blame for good ana Ill done 10 the
in America. For seventeen years 1t has been
an element of almost supreme control In the
commercial finances Of the country, and at
times has been so overwhelming in its power as
to create crises which have been felt from one
end of the land to the other. The room, at No.
IS New street, was bare enough and dull enough
to-day, with the premium at one eighth Of one
per cent, and the men who still cling to the
place In which most Of their business lives have
been spent looked discOnsOlate. As Chairman
Williams remarked, "There Is little or nothing
doing In gold to-day. A few days ago there was
something like the old activity, and Gould's
brokers bought In from $40 900 900 to SIS 900.
What he Is going to do with 1t, l don't know"
''But the business men can hardly do without
.sNo, not until resumption Is fact. The
stopping Of the issue OF gold certificates by the
Treasury has already caused embarrassment,
and the banks have been carting coin about
with which to settle their Clearing House bal
anceS. The Bank Of Commerce has had to
cart about as much as $25O,OOO in coin In sim
gle day."
AS he said this the little fountain which is the
center OF the pool In the middle of the room was
manned lounged upon the benches and talked
among themselves in an idle fashion, as If their
sole object in life was to fill the benches. The
brokers Stil split hairs over commissions On
small sales, but there is nothing bought for
speculation, and only the smallest possible
amounts for actual delivery, and these only for
In gold is sold a day, and the contrast with the
days when sales ran from $50, OOO, $780, the
daily average Of an entire year. to 5000, DOG, $685.
$500, 900 and even $500 900, 900 is very great
Scarcely fifty men now frequent the room
where, on that fatal Friday In September 1853,
there were crowded 3,0O5 people, damned
into their places SO tightly by the bowling
Exchange place and adjoining thoroughfare5,
that entrance to or exit from the room where
the tragedy was Transporting were equally i'm
U cyCf1 IN nliylrr To or
place are only doing so on the bare chance that
resumption may not come about SO easily as Is
anticipated, and that speculative business in
the yellow metal may still arise. Conversation
with number Of them, however, brought out
the fact that there was not one who anticipated
that the resumption scheme would be anything
put success sIc one very candid gentleman In.
these two years if Congress had let the matter
alone, or the merchants had been sure that
there would be no repeal legislation. You see
and the Gold Exchange have been expensive
ornaments to this country, young man." There
was nairete about the statement which was at
it looked as if he intended to be truthful. O
4 he history OF gold and its market places In
this city is varied one. Before the war, and
even for many months after it began, there was
no regular market, and no premium was ever
paid except for handling or for actual carriage
and delivery, which was ia ken as a commission,
and amounted, except under special contract,
MUM to-day. All the business for long time
after gold first became marketable commodity
was transacted over the counters and through
brokers' When the business became Of more
importance, the street corners at Exchange
place and William street became the general
resort Of those who bought and sold gold, and
transactions took place on the cobbIe and curb
stones and over the flags and iron area ratings,
after much the same methods which were after
wards adopted in the regular board. When the
weather was stormy or bitterly cold this impro-
Themselves in
of the old and well-knOwn Gilpin'S NewS-room,
the resort which for many years occupied the
building now used by the Farmers Loan and
Trust Company. The first men who system
atcally entered into the business We're John
V. Van Antwerp and E. o. Read, the last
OF whom was afterwards the leader in Or
ganiZ1ng the regular Gold Exchange. In the
news-room it was an open board, but it soon
became too large and too noisy group for its
quarters, and the proprietors put the managers
OF the new business into the Street. The first
quotation that had any real sanction was on
January 1, 1862, when the premium was two per
cent. On the following day it rose to four per
cent, and fell On January to two and one-half.
1t tiuctuated In this way among the low figures
until september, when it stood 10Sss. I'D to
this time there was no market until the call
was made in the Stock Exchange. Gold was
nrSt on the call, which was made twice day.
at ten and one O'Clock. Then taking this quo
tatiOn the little street nucleus began its DAYS
operations. A disaster which occurred to the
Union army on october p sent the price sud
denly TO 1887 just about the time the new board
was crowded out at G1lpin's This was accom-
panied by the failure of German named Bloch,
was the first Of the failures Of gold Dealers but
despite the shadow and the loss of their old
headquarters. the men were not discouraged
and Immediately rented cellar at Beaver and
william streets, now used as restaurant, and
went to work with something more OF order
The place was decidedly notable for dirt and
than comfortable. The title of s.The Coal
Hole' soon became attached to it and it is
known by that name to this day, although
us Us, condition l has changed for the better.
Even here there was no regular organization,
but charge of $50 was made by the manage
ment to all new corners, and this was after
wards increased to 500 and 5000. Van Antwerp
and Read were still the practical head and
front of the business and Geo. Henriquez s'pre-
sided" At least that was the term they used
In speaking OF him when, without any pretence
sent, he sat astrtde of high and backless stool
In the center OF the 'sHole" and acted as a sort
OF general arbitrator over these singular sales,
their influence felt. During the next three
months gold went up very rapidly, and in Feb
ruary, 1868, 1t touched 1888. John Tobin, who
come down every morning and sell his cool
+ 800, 900 without any regard to where the mar
ket stood, made his first big money that day
G0id dd LOOK d tumble said gentleman land
would drop out Of the market, sure. But it
stopped at 4676, and no one knows how much
IOUln mace" But the total fall or 26L in one
day had cleaned out all the smaller dealers and
some OF the larger ones, among them JAS NJ
Crommerlin, the big bull Of the hour .!The
boys tried to put him On his feet" said the gen
tieman just quoted, ''and he settled for notes
which he has never been able to pay 1t was q
big amount, and l forget the figures; | only
know that still have the note for my balance. ;:
The Hole" which had been rented at first
by I'VE men, continued to be occupied for long
time and long after 1t was OyeTcrowded Here
the men who afterwards were known all over
the country as brokers and SPECTATORS. first
began to become prominent, among Them in
addition TO those already named, John Dillon
PhippS, Halgarten & Co., Charlie Osborn, Smith,
Gould, Martin & Co., Marvin Brothers, G. c.
Parks q Co., Albert Speyer and others, some OF
whom have long been out Of the business. Their
methods began to be Simpliied by the intro
duction of gold certificates, gold checks, and
Clearing House, where all clearanceS were
portant that the rooms, which are still occupied
at No. Is New street. were secured at a heavy
rental, and here some of the most exciting
scenes in the history OF the metropolis have Oc.
CURED. The iron steps which lead to the room
are entirely worn through in places, and they
are everywhere worn smooth to the point of
slpperyness by the hurrying steps Of a dozen
years. Mr.. Benedict was elected first president
and Mr.. Edwards secretary, and Mr. MerSereau
registrar, position which he still occupies
MIR. James b. Colgate succeeded Mr. Benedict
and held the Office three years, these two terms
including all the more important events which
have occurred in the market The upward
tendency OF gold WAS CONSTANT and atm6ct nm