Los Angeles herald., 1906-05-26

could lose all his money with equal
case, but that was. the. risk.
"since the premium on gold depended
upon the stability of the national gov
ernment, the occurrence Of events af-
fecting that stability favorably or un-
ifavorably was certain to create wide
Quotations in the price-and such events
were constantly taking place in war
times. The Union men we're naturally
bears I'm gold. while Confederate SYM
pathizers took the bull side-for, asI
actually happened. Union success would
eventually reduce the premium to zero.
AS result of this state Of things theI
news of a federal victory or defeat
used to upset the balance of the Gold
Room The opposite parties, excited
by the quick Quotations of the market,
and often bitterly hostile individually
for political reasons, would shrek In
suits at one another, not infrequently
coming to blows I'm the midst Of their
battle for wealth Speculation becameI
so insane that bill was introduced into
congress i'm February 1853. making "
q penal offense to offer loans upon gold
bullion at par-but no one cared. In
September of that year the famous
gold fever began. lasting about seven
months. Almost everybody i'm the coun-
try, II seemed plunged into the mar
ket, and it was estimated that 100000
600 was realized on sale. Some of our
diplomatic representatives abroad, who
were paid i'm gold, were said to have
largely augmented their salaries by eS-
changing the coin which they received
for currency Brokers frequently made
$4,000 day in commissions. Men with
n few thousand dollars became mil
lionaires i'm q week.
In 1864 the situation had reached such
a pitch that Salmon p. Chase, then Sec
retary of the treasury, came OF to New
York from Washington to attack the
evil at it's center. He announced that
paper would he received for custom
duties at the rate of 1856 cents to the
gold dollar, and that every morning the
New York subtreasury would designate
the rate at which the government would
sell specie for the day. This brought
on a panic. Gold fell from 1S9 to 175 I'm |
one-half day on Saturday, and on the
following Monday, after bitter re-
sistance from the bulls. the market
was broken down to 1858. The panic also
lowered stocks to the extent of from |
Is to % sper cent, and many were ut
terly ruined.
"By skilfull maneuvers they actual
ly forced the government to vary its
rate as they liked. The treasury had TO
surrender. and gold rose again to 1S2.
Now, however, congress stepped in and
passed the bill previously mentioned, |
which remained in force only thirteen
daysl IT was repealed because during
that thirteen days the rates of private
gold sales rose as high as 250. The gold
room had closed when the passage of
the bill was announced, June 21 but it |
opened again after the repeal, and on
July II gold reached 2S5, it's highest Of
ficial quotation, the result of corner. |
In private transactions the price went
to 2S9. and once to 80. A man who
bought at the latter figure was Mis- |
souri, banker, who believed that the
country was going to ruin, and that |
soon no commercial medium but gold
would have any value. He happened TO |
have his order executed at the very
top of the asking price, and sold in
March, 1866, for 1856.
after this crisis the gold market had |
various fluctuations, which continued |
until the close of the war. The price
was in the habit of varying twelve or
fifteen points in a day, and changes of |
five, six or eight points were common.
Men were more wrought up than ever,
and. after the days speculation was
over, they would adjourn to an uptown
nesort where they continued to buy and |
sell until midnight After peace was
declared, however, the gold market !
gradually SUNK lDIO SIdIe OIL |
quiescence. AS an instance of what |
results this unbridled gambling brought !
about, the famous Ketchum forgeries
may be mentioned. In August, 1865, |
Edward B. Ketchum of Ketchum, Son
& Co., Exchange place, absconded. It
was found that forgeries of gold GER
tificates to the amount of of $1,000, 900
had been committed and other irregu-
larities on the same extensive scale
came to light, bringing on disastrous
panic in gold and stocks. On investiga
ton, Ketchum & Co. were found to
have made $6,000,O00 in gold in few
and then, in consequence of a |
drop in the price from POI to lat, caused
by Sherman's march to the sea, had lost |
it all. and $4,oOO,OOO besides.
"Stagnation reigned in gold until the
Black Friday corner took place in |
September, 1869. A clique headed by |
James Fiske, ir., bought large amounts
of gold until it was said to hold $780,
900. .OO0 or, at least, certificates repre- |
senting that sum. Although most OF |
the brokers were on the bear side, the |
price was forced up until Friday, Sep
tember "a, when the catastrophe came.
Gold had closed at 143 the night before. |
1t opened at 145, and was hoisted to