A WALL STREET STORM.

Gisborne Times, Volume XXV, Issue 2047, 6 April 1907, Page 1

A WALL STREET STORM.

The financial crisis in New York recalls the historical disturbance , caused by Jay Gould in 1869, when that great, gambler attempted to “corner” the gold supply. The quantity of gold floating in Wall ■ street for settlement was under 20,i 000,000 dollars, and things were perfectly quiet, so Gould saw that it might lie possible to take the market i by storm and “corner” the metal. The danger that faced him was that tile Treasury might release its store and bring hack rates so sharply that an enormous loss would have to lie faced. It is even said that the President was decoyed to a remote part of the country, .so that lie might not bo at hand to instruct the Treasury. Gould began to buy gold, and so well did ho lay his plans that be and bis partner on Tuesday night had bought over .100,000,000 dollars’ worth of gold, and the market was at least another 250,000,000 short. Tho next day was perhaps the most memorable, in the history of Wall street. Gould and his party owned the Tenth National Bank and relied on it to certify their brokers’ cheques for any amount. But the opposition saw him through this, and when the officials came down to the bank on the - Friday morning they fonml a Government examiner in possession. This was a bad blow to Gould and his party, but they fought with the courage of desperation. The price of gold had been 133 before the operations commenced. It started on the Friday morning at 143} and by eleven was up to 150. Five minutes later it .was 160. By noon ail agent of tlio •party had bought 20,000,000 dollars and was offering “K!0 for any part of a million.” Then through tie frenzied crowd ran the whisper. “The Government is selling,” and the place became quiet save for the hoarse cry of Speyer asking for a million at 160. Then came 'confirmation of tlio statement that the Government was selling. Prices t«!l with a crash to 1311, while Speyer, like a madman, still called out for millions. Gould’s firm did not send in a settlement, but this was framed for them at 135, and it was shown that they owed 13,000,000 dollars. Speyer’s liabilities rail into 37,000,000 dollars, but Gould’s firm declined to recognise any of these latter contracts. Tho Gold Exchange met the next day, and. then adjourned for a week. The wildest ruin followed. Values went down 100.000,000 dollars; firms were ruined by the score, and thousands outside failed, while Gould’s offices were only saved from destruction by troops.