Year: 1869

The Gold Room.


This is what the Heratds financial editor
says:--


The exciting drama which is undergoing en-
actment in Wall street does not flag in interest:
The scene to-day was more particularly confined
to the Gold Room, where shouting mass OF
brokers were wedged the whole day long. The
excitement at the different offices was hardly
less intense. The gold dials were anxiously con-
suited as the fluctuations were consecutlVely an
nounced by the bell


The earliest operations comprised renewal
of the bear sales which were made on the
strength OF the announcement that the Govern
ment would anticipate the payment of the No
vember gold interest at the rebate OF SIX per
cent. The official announcement was posted at
the Sub-Treasury by General Butterheld as soon
as received from Washington. Under these
sales the price went off to 1411S, but here the
''bulls came in and bought all that was offered
until they put the price eventually to l444.
The reactions to-day were more frequent and
wide and at times amounted to two per cent.
The price surged up and down in this manner
until it finally closed at 143l9. The effect of
these changes may be easily fancied.


When it is remembered that 1t has been the
habit of brokers to speculate in gold for their
customers at margin of Oftentimes only few
per cent, the hurrying to and fro as margins
were obliterated and required renewal, the
scramble to catch the rising metal and the
frantic bidding may be conjectured. The gross
clearances at the Gold Bank to-day were of so
large an amount that they had not been made up
at the adjournment of the board. The transac-
tions to-day were on still larger scale than
yesterday and so frequent that Register Merse-
reau, of the Gold Room, was compelled to call in
an assistant, and their joint labors in recording
the fluctuations occupied twelve columns OF the
index.


The still singular feature of the speculation is
the willingness of the clique to pay carrying
rates instead of exacting borrowing rates for
their gold. They thus continue to sugarcoat the
pill which the bears have been swallowing ever
since the present movement The more conser-
vative spectators of the field prophesy the cul-
= mination of the market at no distant day. AS
gold rises it brings out larger and larger line
of sellers, and the clique are so piling above
them a mass of gold, which, like reversed
pyramid widens as it goes up TO keep the
market up they have to keep buying. The gold
which they are said to have bought is varlously
estimated at from twenty to thirty millions:
They are paying the most extravaganza rates of
interest on the currency equivalent of this
amount.


Those Terrible ''BuIs'' and -'sBears.'


To-day the rate changed from fiat Cor no
per cent. per day, or at the rate OF ninety per
cent per annum. While the "bears" are
tempted to sell in order to this interest, the
'bulls" respond by advancing the market as
they did to-day. Where the deadlock will end
is a matter of pure vaticination. The 'bulls"
defiantly announce that they viii carry out their
day, sending round each twenty-four hours for
the difference in the margin, by which gradual
process they hope to deliberate the shorts
one by one, and yet without producing a





own plans. The exporting merchants, who at
first thought an advance would be so beneficial
to their interests, are now beginning to COM
plain that the scheme of high gold does not
work SO successfully. Could they borrow the
gold for future delivery ut any reasonable rate
they would be jubilant. But the ''bulp' ciques
y are unwilling to undermine their own position,
and hence refuse to lend except at rates which
put an end to further negotiation. Where
the articles to be exported are such
as to be Immediately shipped and the
cash gold sold against their consignment there
is less complaint, and then only on the score of
1 the low rates for exchange, the fall in which
almost neutralizes the profit arising from the
y advance in gold. In fact the present combina-
ton must eventually defeat themselves, and
bring gold in shiploads from Europe as the only
equivalent for our exports None know this
better than the clique, and hence the general
fear that in raising the siege they will play some
desperate game, such as that of advancing the
borrowing rate to figures which will compel
] their opponents to settle by purchasing the gold
y ~ Irrepressible Fisk, Jr.


After speaking of the sensation in stocks on
Monday, the Times remarks editorially:-
The second sensation related to the specula-
ton and practical corner in gold. And here,
/ about o'clock on Wednesday afternoon. ap-
peared On the scene the inevitable and ire
/ pressible Fisk, Jr His presence in the Gold
1 Room was signalized by the rapid rise in gold
l from 1879 to 14119 per cent, and by the offer
of wagers for any part of $5O,O 600 that the price
would reach 145 per cent The other
~ engineers OF Lne HONclhenI "olo HoI iui0,
nor had they been through the earlier
part of the day. They not only buIled gold
! with will, but talked freely of the warrant
q which they had from Washington that the Gov
ernment would not interfere with them. The
highest official in the land was quoted as being
a. with them, and he, of course, controls the
action of the Secretary of the Treasury and
the New York Assistant Treasurer. Although
~ this must have been known to be false, there
were abundant rumors and suspicious in
-sidiously spread around the street to create
the belief or fear with good men that the
administration would not interpose by fur
ther sales of gold from the Treasury, or
extra purchases of United States 5-20s in eX-
change for gold. Among these rumors was one
MAT the Gould-Fisk party were about TO secure
the services and influence of Mr.. Corbin (the
brother-in-law of the President), as President of
the Tenth National Bank, which they have re-
Gently purchased in connection with Messrs.
Tweed and Sweeney. The consideration was to
pc $2o,0DO per annum-equal TO President
Grants own salary! This was too monstrous
Tor serious belief We have reason to know it is
wholly out of the chapter of probabilities with
MIR. Corbin himself.


Let Boutwell, Step In.


The Tribune concludes an editorial which
recltes IN brief the movements of the gold
cliques, by saying:-


Now under these circumstances what
should sagacious Secretary of the Treasury do?


is u posslole that we have one who is capable of


missing his opportunity? He has an enormous


over-supply OF particular commodity to sell


and the price OF that commodity is now unnsn


ally and unreasonably high. He has notes ONT


standing on which he is paying enormous in


terest, and he can to-day buy them up at lower


rates than he could have secured at any time for


months past. Can 1t be possible that any reason