Year: 1869




IFrom the New York SUM-


ORIGIN OF THE GOLD EXCHANGE.


As soon as there came to be pre-


MUM on gold, dealers commenced or


Grating irregularly in what was thel


called the "Coal Hole" on William


street. Subsequently they purchases


tickets Of admission TO Gilpin's New


Room, for which they paid s25 pc
annum, and there they traded in gold
buying and selling There was thei


no organization, no officers, no rule
of proceedings, and contracts in man,
cases could not be enforced, whereby
persons buying and selling sometime
sustained heavy losses, for the reason
that some men, who were honorable
and wouldtako gold when they bough
IT, would find themselves in possession
Oft, without being able TO pass il I,
persons to whom they had sold it, ant
therefore they had to sell at a reduced
price. IL was out of this state O
things that the organization of tn,
New York Gold Exchange arose
which will have been in existence fiy,
years next May. The building now
occupied by the Board was Originally
built for mercantile purposes, and re
modelled


RULES AND REGULATIONS OF THE TX.


CHANGE.


When the Exchange was organized
certain rules and regulations govern.
ing transactions among It's members
were adopted, of which the following
will show the general plan Of opera
tions:


All offers for gold made and accep
ted shall be binding.


Unless otherwise expressed, all con.
tracts for gold shall be settled through
the New York Gold Exchange Bank.


Any member who becomes subject
10 the payment Of a fine at the Bank
through an error or delay of another
member, shall have recourse on the
member at fault for the amount of
said fine. In case of delivery of gold
in bags, the receiver shall have no re.
course for short gold unless counted
and examined at the time Of delivery
Claims for counterfeit or deiaced coin
shall be paid without limit as to time.
when proved by affidavit.


In all contracts on time over three
days, made at the option of the buyer
and seller, one days previous notice
shall be given in writing, before the
gold can be given or demanded. and
such notice shall be given al or before
two o'clock, p NJ.


No purchase or sale at the option of
the buyer or seller for three daysshall
bear interest. All purchases and sales
beyond that time shall bear interest,
unless otherwise expressed. When
contracts on time are not closed at
maturity, interest shall continue un-
less otherwise stipulated by the par
ties.


On all contracts made at the Board
either contracting party may require
of tho other deposit not exceeding
twenty per cent as security for the
inlfillment Of the contract, and notice
Of tuch requirements hall be given on
the same day.


IL such notice be given before 9
o'clock, p. NJ, the deposit shall be
made within one hour after notice is
given. If after o'clock, then such
deposit shall be made by IL o'clock
the following day. A failure to make
the deposit required within the time
specified shall be considered failure
to complete the contract.


When a difference of opinion as re.
CARDS The place Of deposit for the Sc
curity Of purchases and sales shall
arise, the same shall be made in the
United States Trust Company.


Either party TO a contract having
not over three days to turn, may call
for a deposit equal in amount to the
difference between the contract price
and the market price during the pen
dency Of the contract.


No member of this Board who does
not receive and deliver his own gold,
shall have tho power to issue a power
Of attorney 20 any other banker or
broker


Any member of the Exchange who
shall directly or indirectly make any
in gold in the streets, or
passage leading to the Board Rooms
or in any hotel or public place, shall
be suspended from the privileges Of
the Exchange for thirty days, and
pay a fino of two hundred and fifty
dollars.


ADVANTAGE OF THE EXCHANGE.


Dealers urge the advantage Of an
organization Of this kind by saying
that in 1864, when Congress passed a
law forbiddingall transactions in gold
excep. for cash, the Gold Exchange
was temporarily suspended, aud gold
,,,.-aucc1 within three days from about
zoo to ESQ; wnefss:ron Ccaeercss re-
pealcd the law, and the very uay O.
the repeal the premium fell to 225.-
The effect Of such an organization up
On tho market, il is claimed, is TO keep
ID steady, for the reason that one can
buy or sell a million of gold in the
space Of half an hour, without moving
The market more than a quarter per
cent, otherwise such large amount
lf gold could not be purchased with
put advancing the premium greatly.
on the contrary could large
amount like that Of gold be sold with
out depressing the market greatly
Otherwise, too, the fluctuations would
be violent Dealers over the counter
would buy or sell at largo margin,
paving, say, not more than 1872, and
selling at lS6--4 per cent margin, a
difference OF 81 per cent. between the
case and cited aud when done in the
Exchange. On Monday, for instance,
the ruling price at three o'clock was
81. A member could 60 upon the
floor and buy 100000 gold at 3la,
aud take fhc gold away the next day
or he could sell that amount with
in one-eighth of n. lie, however,
would not be able TO dispose of his
gold outside at above l2S, and If he