The times., 1897-04-10
RECALLS BLACK FRIDAY
a Former WashingtoniaI's Part
in the Gold Conspiracy.

| pleXy occurred in New York Wednesday,
! was well known in Washington, having
| been at Que time connected with the tele-
+; graph service OF the War Department.. Ac-
| Cording to tradition, Cunningham played q
| curious part in connection with the famous
Black Friday and the gold conspiracy of
| 1869
Cunningham, who for many years had
earned a moderate subsistence by reporting
news and gossip of the street, was takcniII
ON Wednesday at Broadway and Clinton
place, and, calling cab, ordered the driver
to take him to Lenox avenue ami One Hun
dred and Thirty-eighth street. Later on,
flndlng Ills unfortunate passenger unc0n-
scious, the driver conveyed him To the Har-
lem Hospital, whers ne died, the cause be-
Ing reported as apoplexy
The incident of the gold conspiracy in
which Cunning nghamis said to have played
part was the immediate precipitation OF
the panic For four years preceding Sep
tember, 500, there had been every summer
a rise III gold-or, as u matter Of fact, a
fall in the paper currency in which The
price OF gold was expressed In March OF
the iateful year the precious metal fell to
13l. Jay Gould, as it was aiterward
said. bought $7,0GO,OOO, and the price ad-
yanced to As, influenced by tie Alabama
difficulties, the, prospects Of war between
France and Prussia and other disturbing
facts ind rumorS. 1t was The success OF
this operation which led 10 the subSe-
qucnt attempt of Fisk and Go.ld and their
associates to corner the yeilDw metal.
In August, 1869, the floating supply with
which spectators made deliveries and
merchants paid import duties was esti-
mated at less than $40 ,00G ,DUO. Aside
from this the banks held 1t certain amount
i'll their vaults, ana the sHbtreasury CON
tained about $50, coo, 600 OF which the
Government was then selling million pnce
fortnight. 1t was obviously easy for a
'coinbiie" TO buy up on margin all there
was dIi0at, but there was the danger OF
the government opening the gates OF the
Subtreasary and floating tie market
Here was the IiNoU OF the whole deal.
After an unSuCC esstul attempt to secure
the appointment OF Il SHb-Tr"asurtr in he
interest OF tile combine" or ring as it
was calledin those Gays, efforts were made
to learn from, President Grant what the
policy OF the Government would be in case
of great rise in gold. Failing in this, the
ring tried TO influence the President -at
least learn his views through the medium
OF Abel k. Cor win, Il reat of Mrs. Grant.
In August gold was DOWN 20 136, and all
the world was selling it short in tile Con-
ndent expectation that the government
notes soon would be on 81 rarity with it.
BY September 90 the Conspirators lad
bought more gold for future delivery han
there was in the city outside OF TIE Sub
treasury, and the price had risen TO only
141.
1t looked as il the ring would he forced
TO go under. On the evening oil the 23d the
clique met in the private office. OF William
Heath Il Co, and William Beidea, a former
partner OF Fisk, was brought into the com
He agreed to buy SS, S,00o,00O for
account of the cliqus: on the following day
On Thursday, the 2 Sd, Fisk visitedtlie' gold |
room, " where the dealings Were male, and
offered to betany part of $50 900 that gold
would sell at 200. He went abuut builing
gold everywhere and giving ont the hint |
that the Government was aware of the |
deal and would not sell gold to relieve the. |
IL was stated that he even |
To his associates 10 publish in
the newspapers u list of $50 firms known |
to he short of gold. aad warning them that |
-. a
higher figure would he demanded; but |
this, on advice OF COUNSEL, was rejected.
The position was astounding. The calls
on options held by the clique for delv->
cries OF gold by ctters were estimated to-
cover from $4,000, 900 to 100000, 900, |
ana the shortintereSt was said t. be about
$3.50, 200, ,o00l although the extent of this
interest had been concealed by lending the
cash gold to the bears as fast as il was
bought. One prominent brokerage firm
W carrying $4,000, 900 for the clique
without any margin. 1t had cost above
IS, a nd was being carried OIL the margin
afforded by the rise ,Of a few points i'll
The price. The Gold Bank then in exist
ence afforded facilities for clearing spec |
ulative deals by mere payment of differ
ences without deliveries of the actual coin.
All was arranged to put up gold rapidly
on Friday, the cath, and terrify the bears
into settling. Albert Speyer, a gold broker,
was chosen to do this under the orders of
Fisk & Gould Sustaining orders were
given to fifty minor brokers, and the open
ng price of 143 12 was held, despite
she furious sales of legion of bears, and
)y IL O'Clock gold was 100 Meanwhile
agents of the conspirators were visiting
lie offices of bear operators and trying to
orce them into settlements When they
refused renewed orders were given and
he price the exchange was hoisted
% 100, Albert Speyer buying, during that
morning, $26 100000. William Heath,
rcsh from the presence of the plotters,
pushed through the crowd and bid 16O
'or million.
This was folio we'd by an appalling silence,
md many of the shorts rushed to the office
f Goulfs firm, Smith, Gould & Martin, and |
ettlcd their contracts. The foreign tank
rs. however, refused to settle, and the
rice was put to 1872 12. While Speyer
vas still frantically bidding "16O for a
nillion'' a whisper ran through the room,
The Government is selling"
Ten thousan d furies seemed !oosed Every |
nan in the crowd was shrieking offers to
ell, and with a crash the price fell to 1876.
he fabric of the street credit was in
uins, the Gold Bank could not clear and
uspended Scores of firms were unable
. settle and went by the board, and
,bispered devastation enSued, which has
lade the name Of Black Friday a terror
, the succeeding generation.
On that awful day, Robert Cunningham, |
Who had formerly been manager of the
franklin Telegraph Company in Broad
treet opposite the Stock Exchange was |
utsde the counter, writing a private dis
at CHI when he heard a 1uessage passing |
yer the wires from the Secretary of the
,reu sury at Washington. to the subtreas-
rer in New York stating that $4,000,0 900
{ gold would be sold on Government &C
ount Cunningham rushed to Fisk and his