The Russellville Democrat. [volume] (Russellville, Ark.) 1875-1898, 1883-10-18


| Old and experienced Wall strest
/ operators who have breasted successive
panics for over quarter Of century
| claim that the true inwardness of the
renowned and terribly disastrous
sBlack Friday has never been told,
and that instead of Jay Gould being
the only actor in that dreadful crisis
who escaped with profit, he lost many
millions of dollars and nearly went to
the wall. The crops of the country in
1869, so the story runs, were unusually
ahundant-far in excess of home de-
mands and there was an almost uni
versal desire that the Administration
should devise some means to stimulate
exports. Letters by the score poured
into Washington by every mail adj
dressssa 10 President Grant and Secre-
tary Boutwell,, from leading bankers
and prominent merchants, urging the
Treasury Department to abstain from
selling gold, so that the premium might
advance to "A figure that would send
our products out ofs..the country 1t
was argued with great force that by ex-
porting our cheapest articles in place Of
coin, which at its artificially depressed
price was the cheapest, and the only
indispensable, to part with. The
Government finally decided to suspend
gold sales for an indefinite period.
Jay Gould and associates becoming APP
priscd of this decision at once began
buying large amounts of gold, and sue
ceeded in accommodating vast quantity,
covering period of three months, at
1856 to 140. During this time Jim Fisk
was opposed to the movement, regard
ing it as too venturesome, and he had
no connection with the Gould syndicate,
which consisted of Jay Gould, Arthur
Kimber, representing Stern Brothers, of
London, and w. S. Woodward, of the
Rock Island notoriety. The latter
two, however, sold out their interest
to Gould, who ran the big deal alone
through his firm of Smith, Gould Il
Martin, in their Office in Broad street,
near Wall, and where the Drexel hlild-
ing now stands. Kimber, after going
out of the syndicate, sold largely short
and was forced to cover at a loss Of
over &l,000,000 to the London firm
whom he represented. Kimber was
then recalled, and the London firm
closed up the New York branch.
Black Friday, 1t is now asserted, was
really caused by the erratic conduct of
James Fisk, who joined the movement
on the day before the great crash and
grew wild with enthusiasm on the sub
ject of high gold. He commenced to buy
large blocks of gold on the fatal Friday
through his brokers, William Belden and
Albert Speyer, running the price up
very rapidly from lao, at which it
-,
the gold-room never before equaled in
any New York Exchange or in Wall
street. Conservative bankers and brok-
ers became alarmed, panic siezed the
masses, and a general feeling Of alarm
existed. At this juncture Henry Clews
sent a telegram to Secretary Boutwell,
and President Grant representing fully
the actual condition of affairs, and urg
ing the sale Of gold without delay. He
also prevailed upon General Butterfield,
the New York Sub-Treasurer, and
Moses H. Grinnell, Collector of the Port,
to send similar dispatches. Timely ac-
ton was al once taken in Washington
by an order to sell $4,000, 900 in gold
The moral effect of this act was to strike
terror to the holders of gold, and gen
eral rush was made TO sell out The
premium was driven down from 165 in
less than two hours to 1872. The down |
grade produced an excitement equal to
the up twist earlier in the day. Albert
Speyer, who held carte blanche Order |
from Jim Fisk to buy in million lots all
the gold he could secure at $780, kept on |
buying millions upon millions at this
figure, and at the same time in other
sections on the opposite side of the room
sales were being freely made in modcr-
ate amounts at 140, 145, 147 and $50, |
and even when 1855 was reached, Speyer
still kept on bidding 100 for $1,000, 900
at time, making one Of the widest and
most ludierous spectacMs ever witnessed
among sensible business men.
Fisk afterward repudiated the con-
tracts made for his account by Speyer
by simply denying that he gave either
Speyer or Bcldcn such orders, and, as
they were not in writing, they could not
be proven. The result of this trick was
that both brokers failed, throwing inn
mense losses upon large number Of
other dealers. A noted firm.sold Speyer
some of the million-dollar lots, which
they bought back at lao, being satisfied
with the profit of twenty per cent.
When they finished buying the price in
stantly broke to 1872. and Speyer's fail
lIre also carried this firm down, as well
as half the members of the gold room.
1T was dark season in Wall
street." remarked Mr.. Clew, as he fin
shed the above recital, land very many
Of the wrecks on that awful Black Fri
day were never raised. Jay Gould lost,
n il said over "a 600 O0O In that cold
and for a long time was be-
lieved to be seriously crippled financial
y. He recovered, however, and is one
Of a. very few who is in a position now
10 smile over the dreadful doings of that
terrible crisis. ~ y. Star.
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