The times., 1901-05-12
A FINANCIAL EARTHQUAKE
The Disastrous Overflow of Wall
Streets Cauldron.
of the Darkest Day
I'm American Financial History
Scenes in the stock Exchange Gold
Room-schemez of Could and Fisk.

The result or the present fever Tor siscc-
ulation in Wall Street. Russell Sage de-
cIares. will be another Black Friday.
What was Black Friday?
IL was the panic Of Friday, September
"a. 1859. resulting from uuwarranted spec
ulation in inflated stocks at a time when
the country was in a hitherto unknown
state Of prosperity.
1t was the bursting of superficial values
In 1869 this country found its crops far
in excess Of its needs and some means
of stimulating exports were sought The
Government h.ld been selling gold in such
quantities that gold. as a commodity. was
cheaper than farm products
Letters poured into Washington by the
thousand from leading merchants and
bankers, urging the Government TO stop
selling gold. The supply in New York
was only S25.090.OO0 and the Government
stopped selling. Everybody bought gold.
and the price rose twenty points
Months before Jay Gould had fcreseen
the wonderful possibilities Of this situa-
tion, and with every means at his COM
mand had worked to secure his end. But
President Grant was conservative, and
had to be convinced
To convince him, Gould. through his
able tool James Fisk. jr. arranged that
General Grant should accompany a party
one evening in June to attend the great
peace jubilee concert given by Patrick
Sarsfieid Gilmore in Boston. There was
a fine champagne supper on board the
Boston boat. and several gentlemen were
present who were conversant with finan-
ciaI matters. and could talk gIibly on the
state of the country.
General Grant was an eager listener 70
made up that 1t was the best policy for
the prosperity OF the country to stop the
sale of gold. After they had exchanged
their views some one asked the President
what his views were. He turned to Mr.
Could deferentially:
''In my opinion" said Mr.. Gould. the
Government ought to let gold alone. and
allow it to find its commercial level 1t
ought. in fact to facilitate an upward
movement of gold in the fail
This is sufficient 10 show how ably Mr..
Gould played his part in educating the
President to endorse a policy so vitally
necessary to the success Of the gold
clique.
Nothing more was said, but the remark
had great weight with the Executive.
Meanwhile the wizard OF finance wOve
another link in the chain Of his speculative
design of securing the position of Assist
ant Secretary of the Treasury for Cen
Daniel ButterfeId- Thus, with Abel r.
COrbin whose wife was a sister of Mrs
Grant; with Fisk whose pull with Wall
Street men was powerful, and with But
terfieid at the helm in Washington. this
human spider began the weaving of the
web.
When ali was ready COrbin was sent TO
see the President, From him the emissary
received the positive assurance that Secre-
tary Boutwell, was not TO sell any more
gold Gould went TO the White House 70
hear the glad tidings with his own ears.
Eut with the links all forged and the
chain perfect, with the bankers and mer-
chants largely in his favor through COM
merciaI necessity. and With the Sub
Treasury fixed as he thought. ard the
Treasury of the United States itself where
it could not spoil the deal II President
Grant did not change his mind. one thing
remained to be dOue-JG get Grant him
self out Of the way
This was the crowning effort of the con-
spiratOrS.
The President was carefully shadowed
by GOuIdS detectives. Great care was
taken 10 impress him with the necessity
of d vacation, and he was at last prevail
ed upon to go to Little Washington,
then obscure town in Pt mrs ylVanla-
The thing was so arranged that his
feelings were worked upon 10 visit that
place for the purpose Of seeing an old
friend who resided there The town was
cut off from teiegraphic communication.
and access was not convenient There
the President was settled to remain about
a week or so, about the time the cabai
was fully prepared for action.
If Fisk had maintained the cOOlness and
penetration Of his partner-GOuld-dN
would then have been well But not sat
iSfied to buy gold al the tremendously IN
creasing valuation. knowing that IL would
rise score of points within few days,
he ordered COrbin TO send a letter to
General Grant, asking the President 70
write d letter 10 the Treasury not 10 sell
gold under any consideration.
Meanwhile it suddenly dawned upon the
public that Gould rad cornered gold The
idea spread like wildhre. and the price
jumped from 135 to 160.
The intense excitement of the Wednes-
day and Thursday preceding the memory
OF which even now makes Wall Street
shudder. was not in the slightest abstted
as the morning of Black Friday dawned.
Long before the usual hOt.r Wall Street
was alive. FeveriSh looking men. show
ing plainly the lack of sleep and the in
almost maddeneG by fears and hopes OF
gain, braCed themselves Tor the emerg-
eney, knowing that at any moment
crash might come that would crush them.
Crowds gathered near the gold room
shortly before 10 O'Clock, while ore report
after another reached the crowds that
gold was still going up.
The tide of speculation rose. Excitement
increased. The gold room was the magnet
for all The closing price or the day be-
fore had been 1f3is. At Friday opening
the clique bid 150 for five millions OF gold
CONSERVATION Immediately spread. Men
were trampled upon, and left 10 take care
of themselves as best they could IL was
a human stock pen; miniature mob Of
the French Revolution.
At 10:30 O'Clock the scene in the gold
room was beyond parallel. The fuctua-
tiOn in prices was as rapid as il was sud-
den. but there was always the upward
'"TOilers of the Sea, flowed steadily UO-
ward. while the bears looked on in impo-
tence
When $50 was reached the financial cauI-
drOn OverflOwed. spreading its contagious
fever Of gain through the city. The COM
mUnity became bewildered. commerce was
at a standstill, and there was a simultane-
our rush TO Wall Street Shortly before
noon the thrOng blocked Broad. Wall and
New Streets until the mass was as stone
wall.
From $50 the price scared to 162 then
to 1929. Ordinary means Of posting the
price were given up. and d1als, raised on
every available post and wall. were sur
rounded by crowds, which surged and
fought in demOuiacal frenzy
While some men were almost deliriOus
with JOY and others We're going mad with
despair; with the community disturbed.
business paraiyZed. and the usual order
of things reversed, with the fever at its
height and gold at 165, the chimes OF old
Trinity proclaimed the hour of noon.
Meanwhile the message from Fisk was
speeding 10 the President at Little Wash
ington. The President. upon receipt Of il.
OWNED the Agnifcance of such a request.
and. gallOpinS To the nearest telegraph
office. he ordered Boutwell, TO sell at once
Sc. 900. 600 of gold.
The news reached the gold room before
the echo of the chimes had fairly died
away Gold fell to l3S.
No tnFlf bta with
rife violence than did this news of See
retary BOutweIIs 5 telegraphic order To