Year: 1869




The New York Post, of the 24th, in an
article relating to the gold excitement of
last week gives the following explanation of
the manner in which gambling i'll gold is
carried on, and rs many do not thoroughly
understand the business the extract will be
of service to them. The explanation will
also apply to many Of the transactions in
stocks and grain:


The plan is not difficult to understand.
There are hundreds of men in this country
who are in the habit of selling gold for frl-
ture delivery when they think the price
will fall; and when it falls their profit is
made by buying it at the lower price and
delivering it, in falfilment of their contract
at the higher But sometimes it Uses, in
stead Of falling; they have to pay more for
it than they get, and the result is loss. In
either case, during the interval between
the sale or contract Of sale and the pur-
chase for delivery, the Speculation is prop
erly said to be seshOrt OF gold;" he has
none, and must obtain it III order to fill
his contract. {


Instead of contracting for delivery at 4
definite future time, as three or thirty or
sixty days from the day of sale, it is most





livery and then to borrow it until the seller
wishes to ''coyer," that is to buy it back.
By far the greater part of all the tTansac-
tions in gold are OF this nature; that is to
say, they are bets on the future price of
coin. The proportion which these bets
bear to what is called the. Legitimate bust
ness" that is, to the transactions of mer-
chants who buy and sell gold i'll the ordi-
nary course of trade, is startling to those
who have not considered it. The daily
transactions of the Gold Exchange Bank
are from 500, 900, 900 to 5000, 900, 900; that
is to say, the book transfers of gold bought
and sold amount to these sums; while the
actual amount Of coin and coin certificates
used in these exchanges is from 50, 0OO, 900
to So, 600, 600.


It is q fair estimate Of the mercantile
business of the Gold Room to reckon it at
the sum of all the imports and experts OF
the port, and Of the duties paid on them.
These amount, perhaps, to 50. 100000 per
day, on the average; but such transactions
have been almost entirely suspended for
some days past. On the other hand, the
speculative business Of yesterday cannot
have been less than $400, 900, 900; and it is
on the average, atleast sixty times as great as
that which represents the trade of the
country.


Now the whole amount ofgold coin own
ed by the banks, bankers, merchants and
spectators of New York rarely exceeds
$40, 600, 600; and but part of this can be
brought into Wall street for speculative de-
liveries. IF u combination of capitalists,
therefore, but buy up that amount, then all
who have gold 10 deliyermust either buy or
borrow of them. If they buy not only that
amount, but much more, sold ''shOrt'' by
the other gamblers around them, they have
the latter at their mercy; and can raise the
price. for the time, at their will, compelling
all who are short" to pay them the differ
ence of price. The advance from 1877 on
Thursday morning to 155 this morning,
represents difference of more than forty
millions of dollars on the transactions OF
yesterday alone; and if the combination
which has invested perhaps thirty millions
of dollars III the corner" can secure even
twentieth of this difference for them
selves, they are likely to close their ac-
counts at last with q large profit.