The times. [volume] (Washington [D.C.]) 1897-1901, 1901-05-12
A FINANCIAL EARTHQUAKE
The Disastrous Overflow of Wall
Streets CauldrOn.
"Reminiscences of the Darkest Day
In American Financial History
Scenes In the stock Exchange Gold
Room-Schemes of Gould and Fisk.

The result OF the present fever for spec
ulation in Wall Street. Russell Sage de-
clares, will be another Black Friday
What was Black Friday?
1t was the panic of Friday, September
"A. 1859. resulting from unwsrranted spec
niation in inflated stocks at time when
the country was in a hitherto unknown
state of prosperity.
II was the bursting of superficial values
In 1869 this country found it's crops far
in excess of its needs, and some means
of stimulating exports were sought. The
Government had 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.O00.Oo0, and the Government
stopped selling. Everybody bought gold
and the price rose tSenty points.
Months before Jay Gould had screseen
the wonderful possibilities of this situa-
ton. 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
General Grant should accompany a party
one evening in June to attend the great
peace jubilee concert given by Patrick
Sarstieid Gilmore in Boston. There was
a fine champagne supper on board the
Boston boat, and several gentlemen were
present who were conversant ws,h finan-
cial matters, and could talk gIibIy on the
state OF the country.
General Grant was an eager listener TO
all that was said, but his mind was not
made UP that it 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..
Gould 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 fall
This is sufficient to show how ably Mr..
Gould played his part in educating the
President to endorse policy so vitality
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 Gen.
Daniel Butterfield- Thus. with Abel r.
Corbin whose wife was sister of Mrs.
Grant; with Fisk. whose pull with Wall
Street men was powerful, and with But
terrified at the helm In Washington. this
human spider began the weaving of the
web.
When all 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 to
hear the glad tidings with his own cars.
Eut with the links all forged and the
chain perfect, with the bankers and mer-
chants largely in his favor through COM
mercial necessity, and With the Sub
Treasury fixed as he thought. and the
Treasury of the United States itself where
it could not spoil the deal If President
Grant did not change his mind. one thing
remained to be done-to get Grant him
self out of the way
This was the browning effort of the con-
spirators.
The President was carefully Swallowed
by GouIdS detectives. Great care was
taken to impress him with the necessity
of a vacation. and he was at last prevail
ed upon to go to Little Washington,
then obscure town in Pc nnsylvania-
The thing was so arranged that his
feelings We're worked upon to visit that
place for the purpose of seeing an old
friend who resided there. The town was
cut of from Geographic communication.
and access was not convenient There
the President was settled 20 remain about
week or so about the time the cabal
was fully prepared for action.
If Fisk had maintained the GOODNESS and
penetration of his partner-Gould-an
would then have been well. But not sat
isfied to buy gold at the tremendously in
creasing valuation. knowing that 1t would
rise score Of points within few days,
he ordered Corbin to send letter to
General Grant, asking the President to
write letter te. the Treasury not to sell
gold under any consideration
Meanwhile it ; lddenly dawned upon the
public that Gould had cornered gold. The
idea spread like wildtsre. and the price
jumped from l35 to 16D.
The intense excitement of the WedneS-
day and Thursday preceding. the memory
OF which even now makes W4u street
shudder, was not in the slightest aDatsd
as the morning of Black Friday dawneu.
Long before the usual hour Wall Street
was alive Feverish looking men, show
ing plainly the lack of sleep and the in
tense anxiety of the last few days, and
almost maddeneG by fears and hopes of
gain, braced themselves Tor the emery
ency. knowing that at any moment
crash might come that would crush them.
Crowds gathered near the gold room
shortly before 10 O'Clock, while one 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 of the day be-
fore had been l43is At Fridays opening
the clique bid $50 for five millions of gold
CONSERVATION Immediately spread. Men
were trampled upon. and left to take care
of themselves as best they could 1t was
a human stock pen. miniature mob Of
the French Revolution.
At 1890 O'Clock the scene in the gold
room was beyond a parallel The fluctua-
ton in prices was as rapid as 1t was sud-
den. but there was always the upward
tendency. and gold, like the tide in Hugo's
''Toilers of the Sea-" flowed steadily uo-
ward. while the bears looked on in impo-
tence.
When $50 was reached the financial caul-
dron overlooked. spreading its contagious
fever of gain through the city. The COM
munity became bewildered: commerce was
at a standstill. and there was simultane-
our rush to Wall Street. Shortly before
New Streets until the mass was as stone
wall.
From 100 the price scared to 162. then
to 49,. Ordinary means of posting the
price were given up. and dials, raised on
every available post and wall. -1re sur
rounded by crowds, which surged and
fought in demoniacal frenzy.
While some men were almost delirious
with JOY and others We're going mad with
despair; with the community disturbed.
business paralyzed, and the usual order
of things reversed; with the fever at its
height and gold at los, the chimes of old
Trinity proclaimed the hour of noon.
Meanwhile the message from Fisk was
speeding to the President at Little Wash
ihSton. The President, upon receipt OF il,
OWNED the Aguifieance of such a request
and. galloping to the nearest telegraph
office. he ordered Boutwell, to sell at once
s.. 0O0, 900 of gold
M
the echo of the chimes had fairly died
away. Gold fell to 13S.