that is to say, the sellers had contracted to deliver gold that they did not have, but expected to receive or buy.

The latter part of August a speculative clique or "conspiracy," as it was termed, was organized by Gould, Fisk, and others, whose purpose was to quietly buy up all the actual gold there was in the market and as much more as the "bears" would sell to them for future delivery. When this had been done they designed to quickly bid up the market, and force those who were short to buy their gold from the clique at such a price as the manipulators might arbitrarily determine upon. In other words, it was an attempt to "corner" gold, though the principals in the undertaking denied. that such was their original purpose. For some time previous the Treasury, not wishing to hoard gold, had periodically sold moderate amounts of its surplus. As its aggregate reserve at that time was about eighty millions, it will be readily understood that the success of this speculative movement could be largely frustrated by the Treasury, if so disposed. In order to prevent the Treasury from selling they sought to convince President Grant and Secretary Boutwell, upon whose options sales could be made, that in order to enable our farmers to market abroad their surplus products a premium of 40 to 45 on gold was indispensable. This may be explained by saying that a cargo of wheat, for instance, laid down in Liverpool sold for so much gold, and that when the premium in New York was high this gold would command more greenbacks than if it were at a lower premium. In other words, prices for grain would be high, which would cause the farmers to sell freely. This, of course, would reduce our adverse balance of foreign trade after the movement of the crops, and gold would fall in premium of its own weight. To make "assurance doubly sure" they made an effort to interest prominent Government officials in the pecuniary success of their speculative undertaking, but their overtures in this direction were repulsed and defeated.

The latter part of August this clique began to buy gold, and by the 22d of September, according to Fisk's testimony, they held in gold, or calls for its delivery, fifty to sixty millions. Other interested parties estimated the sum at lower figures. There really was not at that time more than eighteen or twenty millions of gold in New York outside the Sub-Treasury. On the 22d, gold closed at 1.40%, a premium of 40% per cent. On the 23d, they continued to buy, and the market that day left off at 144.

That night they determined to force a crisis on the morrow, though it does not appear that they decided exactly in what manner "the deal" should be closed.

On the morning of Friday, the 24th, orders were sent in to bid gold up,

and the price rapidly mounted to 150, 155, 160. During this time agents of the clique were endeavoring to make private settlements with those who were "short" under threat to put the price to 200. Alarmed by the wild rumors floating in the air that the Government would not sell gold, that prominent officials were interested and that the corner was complete, many bought gold from the clique to make their deliveries or settle their differences on the basis of the advanced price. The control of the Tenth National Bank had been purchased by men directing the manipulation, and it was used by them to certify their checks to enormous amounts and furnish the financial assistance necessary.

The excitement in the Gold Room was at a high pitch and the power of the clique seemed to be omnipotent. A newspaper of the time thus graphically describes the climax of the day: "Amid all the noise and confusion the penetrating voices of the leading brokers of the clique are still heard advancing the price at each bid, and increasing the amount of their bids at each advance, until at last, with voice overtopping the bedlam below, the memorable bid burst forth 160 for any part of five millions.' Again the noise was hushed. Terror became depicted on every countenance. Cool, sober men looked at one another and noted the ashy paleness that spread over all. Even those who had but little or no interest at stake were seized with the infection of fear and were conscious of a great evil approaching. And from the silence again broke forth that shrieking bid 160 for five millions' and no answer; 161 for five millions, 162 for five millions,' still no answer; '162 for any part of five millions,' and a quiet voice said 'sold one million at 162.'

In

"That quiet voice broke the fascination. The bid of 162 was not renewed. But 161 was again bid for a million and the same quiet voice said 'sold,' and the bid of 161 was not renewed. But 160 was again bid for five millions. Then it dimly dawned upon the quicker witted ones that for some reason the game was up. As if by magnetic sympathy the same thought passed through the crowd at once. There was a rush amid the crowd, new men wild with fresh excitement crowded to the barriers. an instant the rumor was abroad The Treasury is selling.' Quick as thought men realized that it was not safe to sell to the clique brokers Scarcely any one now wanted to buy. All who had bought were mad to sell at any price, but there were no buyers. In less time than it takes to write about it the price fell from 162 to 135. The great, gigantic gold bubble had burst and half Wall Street was involved in ruin."

Those brokers who bid up the price to 162 found that their orders were repudiated and the richest men in the clique could not be held responsible,

and so they failed to make good their contracts, and those who had sold gold to them at the high prices were left with it on their hands.

The President and Secretary, who were kept advised of the progress of the corner on that eventful day, determined to afford relief as far as possible, as it was ruinous and demoralizing to all business interests, and so they gave the word to sell, at first, four millions. The corner might have been maintained in spite of this had those who were parties to it held faithfully together, but as the conditions were entirely artificial and opposed to a high premium they were all timid and each tried to protect himself, with the result that no one apparently realized much, if any, profit by the transactions. Fisk, when asked why he feared the Treasury sales when his party held calls for five or six times as much gold as there was in New York outside the Sub-Treasury, replied: "Oh! our phantom gold can't stand the weight of the real stuff."

The brokers in gold found that the actual delivery and receipts of gold in the settlement of each individual transaction involved a needless risk and expense, so the Gold Exchange Bank was organized to act in the capacity of a clearing house, so that only differences would be paid or received. On Black Friday this bank and its clearing house machinery succumbed to the panic, losses, and confusion. The leading members of the clique sought to save all they could from the wreck of the day and they procured injunctions and orders of Court, and it was believed that some of the judicial privileges allowed in their interest were obtained by improper influence.

The Gold Room was closed from the 24th to the 30th, and when it re-opened gold sold as low as 130§, and by December 31, 1869, the premium was only 19 per cent. After this there was no attempt to "bull" the price of gold, and the premium gradually wasted away until it finally disappeared December 16, 1878, a few days before resumption of specie payments became an accomplished fact.

The first dealings in gold began in what is known as the "Coal Hole," a dingy basement in William Street, and later Gilpin's Reading Room be. came the theater of the speculation. In the Fall of 1864 a regular organization was effected and its membership was of a more homogeneous character. This was the Gold Exchange proper, and it continued in existence until April 30, 1877, when it was formally dissolved by its last President, Mr. C. O. Morris.

A Gold Department of the Stock Exchange was then established, and trading in gold was continued there until greenbacks rose to par, when, like Othello, its "occupation was gone." The war stimulated speculation

of every description and the volume of the banking and speculative business of Wall Street was vastly enlarged. The Stock Exchange furnished unlimited facilities for obtaining capital to build railroads, and as the shares and bonds were multiplied fresh fuel was added to the flame of speculation which large emissions of paper money and Government securities had already ignited. During the war excitement ran so high that brokers traded far into the night up-town, notably at the Evening Exchange at the corner of Broadway and Twenty-third Street, and later on the site now covered by the Madison Square Theater.

This vicious practice was abolished by the joint action of the Stock and Gold Exchanges, which, February 17, 1865, prohibited their members from trading after five o'clock. Wall Street brokers deal in intangible property, and their enormous transactions on the various exchanges are entered into by a hurried word or nod and seldom with observing witnesses. No notarial seals or acknowledgments or elaborate contracts are employed to bind the bargains. Yet it is extremely rare that any purchases or sales are denied or repudiated, even though serious losses might often be averted. The business is based upon man's confidence in man, and without personal honor it could not be transacted at all.

The banking and currency system of to-day and the magnitude of Wall Street's financial power are outgrowths of the Civil War.

Money there, is literally like Faith, "the substance of things hoped for and the evidence of things not seen." For singular as it may appear for a street whose trade is in money the thing itself is rarely seen. Checks, bills of exchange, and clearing houses are the active agents which settle over 95 per cent. of all transactions, involving millions daily. It is only in times of panic and distrust, when the value of the substitutes and the integrity of the tokens are questioned that Bank and Treasury vaults fly open to expose their golden treasure.

At the head of Wall Street stands Old Trinity, which for years has guarded the gateway of this golden thoroughfare, and its chimes ring out a daily warning to the worshipers of Mammon, that all is "vanity, vanity and vexation of spirit," and its very spire seems to point out those "treasures where neither moth nor rust doth corrupt."

George Rutledge Gibson

ORIGINAL DOCUMENTS

Interesting Unpublished Letters of Major-General Phillips.

Contributed by John S. H. Fogg, M. D.

Phillips to Heath.

Cambridge Nov: 18th 1777.

Sir.

The Reverend Mr: Brudenell Chaplain to the Staff of the Army has been rob'd by his Servant the last night, who has taken away many things of value.

It is so contrary to the established customs of all civilized Nations to permit private Robberies to escape under pretence of Desertion, that I can have no doubt but you will issue your Orders for apprehending this Villain, and that it may be permitted to have him advertised in the publick papers.

The Reverend Mr: Brudenell will send a description of the Man.

I was last Sunday informed that a quarter was provided for me and that I could occupy it on Wednesday morning-the House formerly belonged to a Mr: Phips and is now held of the Committee by Mr: Mason. This morning I receive a message that Mr: Mason and Family cannot go out and consequently I have no quarter.

I will not enter into farther detail upon this subject, only to observe that I require a quarter suitable to my Rank of Major General, and that I will not interfere