Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1880-02-05
GEN. GRANT AND BLACK
FRIDAY.
Ex-Secretary BOutWell's State
nlent Ofihe Connection of the
Administration With the
Defeat Of the Gold Ring

WASHINGTON, Jan. 25.-GOvern0r
Boutwell,. who was Secretary of the
Treasury during the "Black Friday" ex-
citements says that the following state
ment gives the history of the relations
of the Treasury Department and of
President Grant to the Black Friday
transactions:
The merchants of New York for some
days had been sending piteous appeals
to Washington, showing they were at
the mercy of the gold gamblers ring,
and that it was becoming impossible to
obtain gold at gamblers rates to pay
their duties. 1t was not until the Thurs
day morning preceding the noted Black
Friday that Governor Boutwell, con-
cluded that it was his duty as Secretary
of the Treasury, and the duty of the Ad-
ministration to use the power of the
Government for the relief of the legiti-
mate importing interests, and to thwart
the purpose of this gambling ring. The
of having its revenue impaired by the
locking up of gold, and the consequent
inability of importers to pay duties, was
itself controlling reason which led to
this decision. Accordingly, in the
course of Thursday afternoon, Mr.. Bout
well, as Secretary of the Treasury, re-
quested Mr. Knox, Controller of the
Currency, to come to the Secretary's of
fee after official hours. The same re-
quest was sent to three of the most ac-
complished banking and bookkeeping
experts of the Treasury.
| 1t had been ascertained that the gold
clique was able to conduct its operations
only by means of certificatioD of checks
through the bank where the leaders OF
the clique kept their account. 1t was
also known that during certain hours OF
the day-say from II to 2-these checks
were certified when the makers of them
really had no gold to their credit, and
that this certifcation was in violation OF
the National Banking Act. Governor
i Boutwell, Immediately commissioned the
three experts to proceed by the night
train to New York, directing them to GO
to the bank and remain there constantly
requiring the cashier to inform them OF
the certiication' of every check and to
show them the books, and instructing
him. the moment that the credit of any
Fdepositor was exhausted, to refuse to
certify his checks. This would be one
very efficient means of breaking the
power of the ring to lock up gold. The
officers left for New York and obeyed
their instructions next day.
Meanwhile, on that same Thursday
evening, Secretary Boutwell, says, he
called upon President Grant and inform
ed him of the serious condition of com
mercial affairs and of the disaster likely
to follow if the gold ring was not check
ed in its career. President Grant imme
diately replied that the Government
CfOiy " NhOch OhS
ring. Secretary Boutwell, suggested that
the Treasury sell $3,OOO,O0O of gold
president Grant instantly replied, make
it $5,OO0,O0O. Secretary Boutwell, die
not say what he should do, but returned
to the Treasury, and next morning or
dered the sale of $4,000,O00. The sale
with the success of the Treasury ex
perts in preventing the over-certifica
tion of the gold checks, resulted in tn,
defeat of the gold ring on the historical
Black Friday.
This, Governor Boutwell, says, is tn,
accurate history of the relations of Pres
ident Grant to the sale of gold as far al
he knows them, and of the entire relia
tions of the Treasury to, that matter
This statement of fact, he says, has new
, er before been published, and wOuls
perhaps not now have been given ou
but for the sensational articles recent.
published in New York.