The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1897-05-03
HEARD THE MESSAGE
THE DEATH OF CUNNINGHAM RE-
CALLS "BLAck FRIDAY"

He Was the Man Who Posted Fisk ON the
Governments Plan-viyid Retrospect Of
Wall Streets Great Financial Disaster.
Gold Fell 81 Points In Ten Minutes.
''Black Friday" and the great gold
conspiracy Of 1869 were recalled to the |
minds of Wall street men recently by |
the death of Robert Cunningham, who,
according to tradition, played curious
part in connection with that catastro-
phe.
The incident of the gold conspiracy
in which Cunningham is said to have
played part was the immediate pre-
cipitator of the panic. For four years
preceding September, 1869, there had
been every summer rise in gold-or,
as matter of fact, fall in the paper
currency in which the price of gold was
expressed. In March of the fateful year
the precious metal fell to 1871. Jay
Gould, as it was afterward said, bought
$1,000 900, and the price advanced to
145. influenced by the Alabama diff
culties, the prospects Of war between
France and Prussia and other disturb
ing facts and rumors 1t was the success
of this operation which led to the sub
sequent attempt of Fisk, Gould and
i their associates to corner" the yellow
metal.
In August, 1869, the floating supply
with which spectators made deliveries
and merchants paid import duties was
estimated at less than $50, 600, 600.
Aside from this the banks held certain
amount in their vaults, and the sub
/ treasury contained about $50, 900, 900,
of which the government was then sell
ing 81, 900, 900 once fortnight. 1t was
obviously easy for combine" to buy
up on margin all there was afioat, but
there was the danger of the government
opening the gates OF the subtreasury
and flooding the market.
Here was the pivot of the whole deal.
After an unsuccessful attempt to secure
the appointment of subtreasurer in
the interest of the combine or ring,
as it was called in those days, efforts
were made to learn from President
Grant what the policy Of the govern
ment would be in case of a'great rise in
gold. In August gold was down to 131
and all the world was selling 1T short
in the confident expectation that the
government notes soon would be on a
parity with it. By the 22d day of Sep
tember the conspirators had bought
more gold for future delivery than there
was in the city outside of the subtreas-
ury, and the price had risen to only AL.
1t looked as if the ring would be
!. forced to go under. On the evening of
the 23d the clique met in the private
office of William Heath & Co., and Will
liam Belden, a former partner OF Fisk,
was brought into the combination. He
, agreed to buy S., 900, 600 for account OF
the clique on the following day. Or
Thursday, the 23d, Fisk visited the
"goldroom," where the dealings were
, made, and offered to bet any part O.
! $50, 900 that gold would sell at 200. HI
went about bulling gold everywhere ant
! giving out the hint that the government
was aware of the deal and would no
9 sell gold to relieve the situation. 1t wa
stated that he even proposed to his asso
ciates to publish in the newspapers ;
list of $50 firms known to be short O
gold, and warning them that if they
I did not settle by 3o'clock at 145 high
o er figure would be demanded. But this
I ON advice of counsel, was rejected.
q The position was astounding. The
a calls ON options held by the clique fo
n deliveries of gold by others were esti
!. mated to cover from $50, 000,0 900 t.
: 500, 900, 900, and the short interest wa
{ said to be about $3.50, 900, 900, although
9 the extent of this interest had been con
@ cealed by lending the leash" gold t.
: the bears as fast as it was bought.
k All was arranged to put up gold rap
4 idly OH Friday, the gath, and terrify tn
$ bears into settling Albert Speyer,
g gold broker, was chosen to do this unde
n the orders of Fisk and Gould. Sustain
q ing orders were given to 90 minor bro
: kers, and the opening price Of 1431 wa
held despite the furious sales Of legiol
of bears, and by IL O'Clock gold wa
$50. Meanwhile agents of the conspira
tors were visiting the offices of bea
!, operators and trying to force them int
= settlements When they refused, renew
:. ed orders were given, and the price OF
y the Exchange was hoisted to 100, AL
bert Speyer buying during that morning
:. S26, 600, O0O William Heath, fresh from
: the presence of the plotters, pushe'
- through the crowd and bid 160 for 81,
q 600, 900.
This was followed by an appalling 81
lence, and many of the shorts rushed {
the office of Goulds firm, Smith. Goul
81 Martin, and settled their contracts
The foreign bankers, however, refuse
to settle. and the price was put to 1862 =
While Speyer was still frantically bid
ding "1G0 fer 81, 900, 0G0" whispe
ran through the room, 1.-The government
d is selling.
Ten thousand furics seemed loosed
Every man in the crowd was shriekin
offers to sell, ard with a crash the pric
fell to 1876. The fabric of the stree
credit was III ruins. tic Gold bank coul
nc. clear and suspended. Scores OF firm
- were unable To settle and went by tn