Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1880-01-30
GRANT AND BLACK FRIDAY.
Ex-secretary BOufWel1's State
ment Ofthe Connection Of the
Administration with the
Defeat of the Gold Ring.

A special dispatch from Washing
ton to the Tribune says. Governor
Boutwell,, who was secretary of the
treasury during the BLACK Friday
excitement, says that the following
statement gives the history of the re
latlons of the treasury department and
Of President Grant TO the Black Fri
day 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 gam
blers' ring, and that it was becoming
impossible to obtain gold at gamblers
rates to pay their duties. 1t was not
until the Thursday morning pre-
ceding the noted Black Fri
day that Governor Boutwell, con-
cluded that it was his duty as secre-
tary Of the treasury, and the duty Of
the administration, to use the power
OF the government for the relief of.
the legitimate importing interests.
and to thwart the purpose of this
gambling ring. The fact that the
government was in danger of having
its revenue impaired by the locking
up of gold, and the consequent ina.
bility of importers to pay duties, was
itself a controlling reason which led
to this decision. Accordingly, in the
course Of Thursday afternoon, Mr..
Boutwell,, as secretary of the treasury,
requested Mr. Knox, controller ofthe
currency, to come to the secretary's
office after official hours, The same
request was sent to three of the most
accomplished banking and book keep
ing experts ofthe treasury.
1t had been ascertained that the
gold clique was able to conduct its
operations only by means of certi6ca.
tion Of checks through the bank
where the leaders Of the clique kept
their account. 1t was also known
that during certain hours ofthe 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. Govern
or Boutwell, Immediately commission
ed the three experts to proceed by
night train to New York, directing
them TO 90 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 no
ment that the credit of any depositor
was exhausted, to refuse to certify his
checks. This would be n very eff
Gent 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, saws. he
called upon President Grant and in.
formed him of the serious condition
of commercial affairs and of the disas-
ters likely to follow if the gold ring
was not checked in its career. presi-
dent Grant Immediately replied that
the government should make every
effort to check the ring. Secretary
Boutwell, suggested that the treasury
sell S3,OOO,0OO of gold. President
Grant instantly replied, make it So.
100000. Secretary Boutwell, did not
say what he should do, but returned
to the treasury, and next morning
ordered the sale of $4,000, 900. This
sale, with the success of the treasury
experts in preventing the over.certif-
cation Of the gold checks, resulted in
the defeat of the gold ring on the
historical Black Friday.
This, Governor Boutwell, says. is the
accurate history of the relations of
President Grant to the sale of gold, as
tar as he knows them, and Of the en-
tire relation of the treasury to that
matter. This statement Of fact, he
says, has never before been published.
and would perhaps not now have been
given out but for the sensational arti-
Giles recently published in New York.
A correspondent writes from Nice