16363. New York Gold Exchange Bank (New York, NY)

Bank Information

Episode Type: Suspension → Closure
Bank Type: private
Start Date: September 24, 1869
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 32cbcdde

Response Measures

None

Description

The articles describe the Gold Exchange Bank's refusal/ inability to clear large gold transactions after the September 24, 1869 'corner' in gold, followed by injunctions and the appointment of a receiver. There is no clear description of a depositor run. The bank was effectively suspended as a clearing house and placed in receivership and later administered by a receiver making partial payments to creditors, consistent with suspension followed by closure/receivership.

Events (5)

1. September 24, 1869 Suspension

Cause: Local Shock
Cause Details: Attempted corner in the gold market (large speculative 'corner' on Sept. 24) created enormous unsettled gold balances the bank could not clear; Clearing House operations were disrupted and the bank departed from normal clearing rules to meet obligations, producing suspension of normal clearing operations.
Newspaper Excerpt: The bank refuses to clear these transactions. and is in fact unable to do so; performance of the contracts is impossible.
Source: newspapers

2. September 27, 1869 Other

Newspaper Excerpt: An injunction was issued restraining the bank from paying the sum ... deposited as security for the return of borrowed gold. (multiple injunctions against the Gold Exchange Bank).
Source: newspapers

3. September 28, 1869 Receivership

Newspaper Excerpt: The bank had been put in the hands of a receiver ... application for permanent receiver is returnable next Monday. (reports of receiver appointment and injunctions).
Source: newspapers

4. October 1, 1869 Other

Newspaper Excerpt: To dealers with this bank ... send in at once their statements ... notice from H. M. Benedict, President; later notices by Vice President requesting amended statements (communications from bank during receivership).
Source: newspapers

5. October 22, 1869 Other

Newspaper Excerpt: C. N. JORDAN, Receiver. gives notice to all creditors ... he is prepared to pay 25 per cent upon the amounts of such adjusted claims ... (receiver making payments).
Source: newspapers

Newspaper Articles (16)

1. September 25, 1869 The New York Herald New York, NY

Article from The New York Herald, September 25, 1869

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o'clock the combined forces seemed to take a rest, there seeming to be a sort of mutual truce after the excitement of the morning. Gold fell, and as it descended the "bulls" threw up the sponge, their brother gamblers at the same time striving to conceal their weakness by smiles. The welcome telegram from Secretary Boutwell sent the reckless plunderers reeling to the ground, and the financial robbery was timely nipped in the bud. The horde has been promptly dealt with, and the result will prove satisfactory. ### AN EXPLANATION. Though apparently wrapped in mystery, the roguery is not difficult to comprehend. Some men sell gold for future delivery in the hope that the price will fall. When it does so their profit is made by purchasing it at the lower price and delivering it in fulfilment of their contract at the higher. Now and then it rises instead of falling, and they have to pay more for it than they obtain, and the result is loss. But no mat- ter in what aspect during the interval the specula- tor is "short" of gold, but nevertheless obtains it in order to carry out his contract. Instead of contracting for delivery at a definite future time, as three or thirty or sixty days from the day of sale, it is most common to sell the gold for immeditae delivery, and then to borrow it, until the seller wishes to "cover"-that is, to buy it back. By far the greater part of all the transactions in gold are of this nature; that is to say, they are bets on the future price of coin. The pro- portion which these bets bear to what is called the "legitimate business" that is, to the transactions of merchants who buy and sell gold in the ordinary course of trade-is startling to those who have not considered it. The daily transactions of the Gold Exchange Bank are from $100,000,000 to $200,000,000-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 $2,000,000 to $3,000,000. The whole amount of gold coin owned by the banks, bankers, merchants and speculators of New York rarely exceeds $20,000,000, and but a part of this can be brought into Wall street for speculative deliv- eries. If a combination of capitalists, therefore, but buy up that amount, then all who have gold to deliver must 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 dif- ference of price. The advance from 135 on Thursday morning to 155 yesterday represents a difference of more than $40,000,000 on the transactions of that day alone. ### SUSPENSIONS. The result has created a profound sensa- tion throughout the entire community. Imme- diately after the news had become known con- fidence was somewhat restored, though many still lingered around the Gold Room in anticipation of another rise. The consequence of yesterday's opera- tions cannot be known in a day. Of course the most idle and injurious rumors were put in circulation. To be sure, there may have been many failures, but temporary suspensions cannot be regarded in that light. Indeed, it is unfair to put forth statements calculated to damage the credit of many firms im- perilled by the movement. It is entirely impossible to give any authentic list of the supposed failures and suspensions. In fact the reports prevalent about several firms can scarcely be relied upon. To be sure, several brokers closed their doors, but new statements will be revealed to-day. Others were compelled to suspend payment on their gold balances; but the fact is that it was a physical Impossibility yesterday, and that fact alone has given rise to a great deal of the embarrassment. ### THE GAMBLERS IN THE RING. As already mentioned, there will be very little sympathy with the victims. It was a desperate struggle between two gambling factions, either be- ing bound to win. Altogether it was a miserable and degrading spectacle, injurious to trade and damning in its character. Princely fortunes have been lost and won, but the moral is the same. It is unfortunate that two such despicable in- stitutions should exist-two cliques of reckless conspirators, who care as little about disturbing the peace of the community as perhaps the indiviqual members of them think of committing suicide. The prudent energetic action on the part of the admin- istration has elicited the most hearty recognition, and it is sincerely to be hoped that the groundless panis, started for the benefit of a few operators, has been satisfactorily disposed of. Such was the excitement long after the announcement of the telegram that immense crowds still thronged the streets, eager to ascertain the freshest intelligence appertaining to the affair. When gold descended to 133½ all hopes were abandoned, and the great excitement which had hitherto prevailed quietly toned down. Little remains to be told. Reckless- ness, plot and roguery have done their work in Wall street, adding but another chapter to the long, sad list of crimes characteristic of that locality. ### SCENES AT NIGHT. Wall street was virtually open all last night, although most of the brokers had gone home. Half the houses reported to have failed have only temporarily suspended payment, and that, too, owing to the inability of the Clearing House to attend to the great flood of business that inces- santly poured. It is estimated that the amount of gold bought and sold yesterday exceeded $500,000,000, and as that sum is divided up in lots ranging from $5,000 to $100,000, the manual labor of the clerks be something enormous. Most of the clerks were engaged the entire night, a cir- cumstance of rare occurrence-one only demanded by the exigencies of the occasion. When state- ments have been properly made out the prospects of some may be yet brighter. So ends the panic. ### THE CLEARING HOUSM, At a late hour last night we received the following notice from H. M. Benedict, President of the New York Gold Exchange Bank:- NEW YORK GOLD EXCHANGE BANK, NEW YORK, Sept. 24, 1869. The rules of the clearing department of the bank requires the payment of all balances to the bank be- fore the payment of any balances by the bank. Owing to the failure of several dealers the adjust- ment of the accounts has been delayed. The bank has a large surplus of both gold and currency on the movements of the day and will pay out to dealers as fast as the accounts can be settled. H. M. BENEDICT, President. ### THE EXCITEMENT IN BROOKLYN. Brooklyn did not escape the excitement which prevailed among these financiers, and the remarka- ble fluctuations in gold was the all-absorbing topic of conversation on the boats, in the cars, in saloons and on the streets. Every one appeared to be deeply interested in the matter, and awaited with feverish impatience to learn the latest news from Wall street. All sorts of rumors were afloat during the afternoon, and finally it was reported that the

2. September 25, 1869 New-York Tribune New York, NY

Article from New-York Tribune, September 25, 1869

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bulling the gold, at once changed about and began to bear on the gold and bull on the stocks. A complete revolution took place within 20 minutes. The situation at nightfall was about as follows: Many of the houses alleged to have suspended are. perhaps. only perplexed with the complication of houses with which they have had dealings. If the main movers in the affair, Messrs. Fisk and Gould, come for ward and meet their engagements. and thus aid others everything will move harmoniously in the street to-day. There may be a little excitement in the morning, as the Gold Exchange Bank will be hardly ready to make a statement of the accounts before 1:30. If, however, the alleged managers fail to comply or settle, the scenes that will ensue may perhaps eclipse those of yesterday. The commission brokers of the street are openly delighted at the panic. for they say the thunder and lightning of the past few days will clear the sky, and drive from the street the irresponsible harpies who have formed "corners" and preyed upon the public generally. The moral presented by the sickening spectacle is that it may take merchants and other business men from the street, and they will learn that even sharp players can be beat at a game where loaded dice are used. There was no reason for the rout and tumult of the last few days. The whole story in a nut. shell is: A combination of powerful men boldly struck out for an object which they nearly attained, and everything that stood in the way was compelled to go down before them. Business was made to stand still, the poor to suffer, the nervous to experience alarms, while bulls and bears held high carnival. The following official notice from the United States Treasury will tend to restore harmony and allay the excitement. The country is not quite gone to the dogs. nor can Wall-st. smash the commercial prosperity of this great city. UNITED STATES TREASURY, NEW-YORK Sept. 24, 1869. NOTICE.-The Government reserves the right to accept all bids made its 12 to-morrow. even in excess of $4,000,000 for gold or bonds, in at discretion. By direction of the Honorable the Secretary of the TreasDANIEL BUTTERFIELD, Assistant Treasurer. ury, The following explains itself: To the Editor of The Tribune. SIR: The rules of the Clearing Department of this Bank require the payment of all balances to the Bank before the payment of any balances by the Bank. Owing to the failure of several dealers the adjustment of the accounts has been delayed. The Bank has a large surplus of both gold and currency ou the movements of the day, and will pay out to dealers as fast as the accounts can be settled. H. M. BENEDICT. President. New York Gold Exchange Bank, No. 58 Broadway, and No. 29 New-st., New York, Sept. 24. 1869. AT THE FIFTH AVENUE HOTEL. The Fifth-ave. Hotel last evening wascrowded with nearly as many brokers as Broad and Wall-st. during the day. Homes were deserted, their attractions overcome by a desire to know more of the day's panic. Everybody was in a state of unrest. The natty velvet coats clad nervous bodies, and the wellstarched chokers were pillories for the throats that breathed out denunciation on every one who could have an imaginable agency in the day's doings. To complain a to alleviate, and 80 the excited gold men ruin on Benedict, charged little, was their and said he they was the author of the mischief. Indignantly asked why he put an injunction on the paying out of gold? why he locked up the gold-room and why he didn't do something he didn't do Baring Brothers are charged with acting in behalf of the Government, and the $5,000,000 they ordered Duncan & Sherman to sell is thought to be the gold of the Government. It will all be known to-day at 10 o'clock; but time speeds too slowly. Until then, hope 18 to be strung to its utinost tension. During the night, men paced the walks in groups, wondering whether Gould, Smith, Martin had utterly failed, or whether they would resume to-day-whether other houses would survive their losses. It was a wanton provocation to console any one. Deep solicitude expressed for the ruined only caused deep agony. They hoped for the best: and many of the houses which suspended yesterday said they could go on to-day. Millions were talked of as though they were mills. But the men who intrusted their money to these houses for speculative use were wild, and their friends had well-grounded fears for their sanity. One man in pale unrest cried out he was lost! lost! lost! repeating in a dull, oblivious way his cry at short intervals through the evening. Others showed their frantic suspense by smoking venemently and drinking largely. To these men matters became mazily mixed. It was past midnight when the last group strolled away from the hotel.

3. September 28, 1869 The New York Herald New York, NY

Article from The New York Herald, September 28, 1869

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King Charles Under William Hahr and Charles vs. William M. Lloya, Charles II Hamilton Matthew T. Dill and the New York Gold Exchange Bank.-In this case an injunction was issued against the defendants restraining the Gold Exchange Bank from paving: check for thousan of $11,000, deposited with the bank as security for the return of borrowed gold. AND ANOTHER STILL J. Edward Eastmond US. Alexander G. Wood. James e. Rieck and life New York Gold Exchange Bank.- in this case an injunction was issued restraining the bank from paving the sum of $5,000 now on deposit to the credit of Wood & Rieck, to the said Wood & Rieck LEGAL CHECKS PUT ON GOLD CHECKS. Henry C. Hardy and Frederick Hardy vs. Robert Waller and the New York Gold Exchange Bank.-In this ease an injunction was issued to restrain the bank from paying to the other defendants the sum of $35,803 75, deposited by plaintiffs with said bank as security for the payment of borrowed gold to be returned to the said Waller. Caldwell Ashworth vs. the New York Gold Exchange Bank and the National Bank of commerce.In this case an injunction was issued restraining the defendants from parting with certain checks of plaintim given in gold transactions. Notice from the Sub-Treasury. The following notice has just been posted in the Sub-Treasury:NOTICE UNITED STATES TREASURY, NEW YORK, Sept. 27. 1869. The following instructions have been received at this office this day from the Secretary of the Treasury:SIR-You are authorized to announce that you will sell in the usual manner $1,000,000 of gold on each Tuesday and Friday until the 1st of November, and that the first sale will be made on Tuesday next: also that you will continue the purchases of $10,000,000 of bonds each fednesday until November 1. The sales and purenases hereby authorized are in add1tion to the sale of gold and the purchase of bonds on account of the sinking fund, which will be continued without change; also a further letter directing that payment in currency must be for gold at the time of delivery. DANIEL BUTTERFIELD, Assistant Treasurer. The Stock Market Demoralized. Saa havee was made in values by the deadlock In the Cold Exchange Throughout a portion of the day a regular paute prevailed. The inability of the people to get money out of the Gold Exchange Bank and the extreme stringency in money forced the stock houses to let go their stocks. There was a general crash and stocks were thrown completely overboard. The sellers were of course largely in the majority, the buyers being extremely few. In fine, the protracted difficulties in the Gold Room completely demoralized the stock market. Moreover, the stringency was not a little aggravated on account of a number of the banks calling in loans and requiring a heavy addition to the margins. There was, however, a steadier feeling towards the close. The Supposed Suspensions. The rainors of the several suspensions were in many instances unfounded. A note from Ward & Co. is to the effect that the report of their suspension is entirely unfounded; while it appears that Drexel, Winthrop & Co. had no interest in the gold speculation, not having borrowed or owed any money, but, on the contrary, loaning largely to their friends. It has never been stated in these columns that any firm had actually suspended in consequence of the crash, though it has been stated that many labored under temporary embarrassment, owing to the delay in the Clearing House. Some of the wealthiest firms in this city have certainly felt the induence of the speculation. It is expected. however, that even a large number reported to have suspended will, when the statements have been made come out all right. The National Banks of This City. Charles Callender, the National Bank Examiner, states freely that every national bank in this city is in sound condiction and conservatively managed. Also that the Tenth National Bank is to-day creditor at the Clearing House for over half a million of dollars. The Tenth National Bank of New York. WASHINGTON, Sept. 27. 1869. Mr. A. U. Wyman. cashier or the United States Treasury, who went to New York on Thursday last to investig the affairs of the Tenth National Bank of New York, is expected back to-day. The capital of that bank Is $1,000,000, and it is reported that during the gold excitement last week the certificates of indebtedness issued by the bank amounted to $37,000,000. The attention of Secretary Boutwell was called to the "cornering" efforts of Wall street gold gamblers on Wednesday last, and when it was intimated that this bank was,In the "Ting" the Secretary determined to ascertain tho truth of the report. Mr. it yman has sent several de alled reports of his 1 Investigation to Treasurer Spinner but the contents have not transpired. Under the national currency act the Comptroller of the Currency is authorized to point a receiver in case any bank fails to pay its circulating notos, and makes it unlawful for any bank to certify any checks drawn upon said bank unless the person or company drawing said checks shall have on deposit in sald bank at time the check is certified an amount of money equal to the amount specified. It is not improbable that the Secretary will find it necessary to watch other New York national banks. The Prospects To-Day. it 14 idle to speculate upon what the result of to-day's proceedings will be. The action of the Gold Exchange will determine everything. The members of the Gold Room will meet at ten o'clock this morning. Secretary Boutwell and Gold Finetuations. [From the Charleston Courter (democratic) Sept. 25.) Had Mr. Bontwell known his business the ductual tions of vesterday never could have taken place. and no combination could ever have been made suffeiently strong to have produced such an excited condition of the market. The Treasury is in constant receipt of gold for duties. and wonld only retain enough for 118 necessities and sell the balance no trouble could exist, and a large part of the gambling in gold would cease entirely. In addition to this the debt would be steadly reduced, and instead of having money tdle in the Treasury 16 could be made use of to lighten the borden of interest under which the country is now groaning. (From the Boston Advertiser (republican), Sept. 27.] Under these circumstances there 19 much to bo said on both sides as to the propriety of the interfer ence by the Secretary of the Treasury. which enriches one man and impo verishes another according to the moment when made KNOWD but which relieves the merchant for the time from the embarrassment which the gambling bout has caused him. If it were poss ble for the government by any act within the scope of its power to destrov utteris the wealth of the men who make a liveliffood by these speculations the achievement would meet perhaps with general applanse: but if every one them were aunitilate ill person as we.l in estate to day there can be no doubt that a new get would aríse to-morrow and at the evil we deplore would be continued as long as the absence of any fixed standard of value gives an opportunity for it. of It may perhaps be the duty of the Secretary the Treasur now and then in step aside from the plain path of policy which he has marked out for htmself, to meet extraordinary emergencies in the market: but certainly his duty now more than ever, to push forward through any obstacles to the great goal of suecie payments, which. once reached, will make such emergencies impossible: and is the duty of Congress to do its utmost to make the road cery and direct. (From the Boston Post (domooratic), Sept. 27. To whisper suspicton against the credit of a firm accounted the highest crime, in ordinary times is the ture doubt attaches to its truth: but in If any of prominent moil of Friday we observe numbers more houses in New York subjects of gossip

4. September 30, 1869 The Evansville Journal Evansville, IN

Article from The Evansville Journal, September 30, 1869

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NEW YORK Stormy Debate in the Gold RoomStatement of the Gold Exchange Bank Presented to the Board. NEW YORK Sept. 29 Stormy de bates in the Gold Room. alternate markable depression and buoyancy on the Stock Exchange, stock failures and receiverships and injunctions. form a group of events which make the day without an equal in the annals of WallStreet At the early session of the Gold Board the following was presented STATEMENT OF THE NEW YORK GOLD EXCHANGE BANK otheCommissioner of the Gold Board: An official of the Bank went into the Gold Room on the morning of the 24th inst. and suggested to few that it would be impossible to clear the transactions of that day on account of an attempted corner. but on consultation decided that it was the duty of the bank to make the attempt, even at some sacrifice. The bank assumed the clearing in the usual manner and received. a in the payment of balances. very large amount of gold and currency It was necessary to restore a large portion of those amounts to the dealers or wide spread disaster would have followed. To do this. the bank was forced to depart from the rule of receiving all balances before paying any, and went on pay ing dealers portion of the balance of their statements, reserving a safe margin where practicable and trust. ing to the dealers to make good any over dealings.on the final settlement This was the course pursued on Tuesday and Saturday On Satur day a committee was appointed at an informal meeting of the dealers to confer with the Directors who went info an investigation ex tending through Saturday and Sun day, on the plan to declare pine deal ers rejected from the clearing and assume the rest as good- only basis of settlement they deemed practicable. The bank acted on this in paying dealers on Monday The emergency the ement the Clearing House of the banks on Mon day! and Tuesday, was passed by transferring to the Committee of the Clearing House a sufficient amount to secure the balance in the bank The bank has now at its control. after settlement with the Clearing House Bank, an amount not far from its capital, and surplus with which to liquidate the dealers statements as soon as it can be ascertained what is due from the bank to the dealers and from the dealers to the bank. It 18 the expectation that these results ean be approximated to day,and from all th evidence.now ac cessible, we believe the bank to be solvent and able to pay all its debts complications exist at present cept on our dealers statements. The bank has not failed or suspended. It has paid its obligations as stated paid Monday obligations at the Clearing House, in gold at par, and on Tuesday $1,000,000 in gold and say $1,300,000 in securities [Signed] H. M. BENEDICT, President September 28, 1869 The committee of twenty, appoint ed by the Gold Exchange, worked steadily on the statements of dealers since P.M. yesterday, and at 1 P.M. only two statements remained to be received those of Smith, Gould & Martin, and Krickerbocker & Co The net result as far as ascertained is that the dealers are short with the Gold Exchange Clearing H ouse about $10,000,000 of gold, which Smith, Gould & Martin are offering to sell them at 135. There appears to be no doubt that the committee will succeed in effecting the clearings on Friday's business, the settlement being made on a basis determined upon yesterday The difference between 135 and the actual price will remain to be adjusted between the dealers themselves. At 3:45 the committee of twenty reported to the Gold Room, in executivesession that they had referred the making up of statement from the tickets of Smith Gould & Martin, to competent ao countants, and requested to be released from further duty The report was accepted, and it was agreed that the transactions of Friday be settled. The Exchange Clearing House and Board adjourned till to-morrow The President of the Gold Room has been served with an injunction, granted on the application ot Smith Gould, Martin restraining him from selling gold on their account, according to rule resolution was passed by the New York Stock Exchange to deal in gold in the Long Room until such time as the governing committee ef fect plan establishing a gold room under the direction of this Association The Stock Exchange, later in the day, passed resolution to deal in gold in the hall of the old Open Board of Stock Brokers, the dealings to begin to morrow at 10 o'elock A meeting of a Joint Committee, representing the New York City Bank. Clearing House and New York Gold Exchar Bank, was held in the parlor of the Clearing House t this meeting the Gold Exchange Bank which made no clearings to day, proposed to the Clearing House Committee that the other banks should advance 20 per cent on the $2,500,000 of gold paid by the Gold Exchange Bak yesterday, and the day before, in the settlement of their in debtedness at the Clearing House which would enable them (the Gold Exchange Bank) to pay their entire indebtedness. The effect of this would be to release the other securi ties held by the Committee. and give the Gold Exchange Bank about $300,000 in currency. Several banks had agreed to furnish the means to carry out this proposition, when it was learned that the Bank had been put in the hands of a receiver, con sequently, the negotiations were stopped. The injunction was granted by Judge Cardoza, on application of person claiming to be creditor of the bank The application for perma nent receiver is returnable next Mon meantime Aug Brown

5. October 2, 1869 The Wheeling Daily Intelligencer Wheeling, WV

Article from The Wheeling Daily Intelligencer, October 2, 1869

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who and this morning of different madeup their minds to sell and their profits. This drop is not to be taken as an indication of any fall in prices, general feeling distrust in the of In order to facilitate the itlement outstanding gold contracts of last Friday, Wm. Heath & Co offer to settle the whole of their $9,000,000 135, and upon the difference between that actual figures to pay the guaranteed by Smith. Gould & Martin the remaining 17 per cent to be paid soon as they obtain their funds, amounting to nearly $400,000, from the Gold Exchange Bank Their carrying out of this proposal dependent upon two-thirds of the amount of their credit tors accepting it. Already creditors covering two millions of contracts have accepted the proposition. This afternoon it was reported that the receiver ship over the Gold Exchange Bank had been annulled by the Court. Thestatement is incorrect. as it must be from the fact of the order appointing a Receiver not being returnable until Monday. The offers of Lockwood & Co., are being generally on the street The actual condition of the firm cannot be known for some time, but from enormous magnitude of their !transactions and the fearful sacrifices they made in almost frantic endeavors to keep themselves from failing, their condition feared is really worse than has been imagined. They to have paid $1,000,000 in gold dif ferences at once and they were bulls in Pacific Mall stock at from 120 down to 60. The effect of these transactions must have been most disastrous. The street was filled with rumors this after noon in regard to the losses of the Lake Shore and Michigan Southern Companies in order to stop building of the Akron branch road bought shares of Toledo & Vabash at 85 and paid for it, and further contracted receive 15,000 shares more on Octo18th at 85, on which deposit of 30 per cent. was put up. The Commercial says the investigations to-day make it probable that the amount owing by Lockwood & Co. to the Lake Shore Company will be near $1,500,000. No formal meetir of the Lake Shore rectors has been held to-day, but some opposition is offered to Mr. Banker ing the successor of Mr. Lock wood by the directors recently arrived in the city. ?heExpress has report that M: Bank er has been tendered the treasurership and declined, but it seems improbable. An informal conference was held to day, and four members were delegated to wait on Mr. Lockwood, and ascer tain whether what funds belonging to the company have been involved in his failure. The Post says that according to re port he, as treasurer. held before the suspension of his house $620 000 cash belonging to the ompany and the proceeds of the sale of 81 075 000 par value of stock of the company. which, according to rumor, he sold at 84 reported that Commodore Vanderbilt has effected loan of $10,000,000 with Baring Brothers. giving Hudson stock at par as collateral and that one half of this sum is to be used to purchase the 70,000 share of the Lake Shore. The propriety of establishing a new Clearing House is being discussed the Gold Room. The plan proposed to clear all gold at given price. No action has yet been taken, but this proposition seriously talked of Many millions of gold on Friday's contracts were settled to-day and the end of this complicated affair seems to be drawing to a close: It may, however, take some days to clear up the wreck There were some few injunctions and counter injunctions to day. The Gold Room presented deserted appearance this afternoon, owing to the brokers being busily engaged in their offices. or making settlement around the street, The President of the Gold Room received the following notice from the Gold Exchange Room. NEW YORK GOLD EXCHANGE BANK, October 1, 1869. To Townsend Cox, Esq. Sir-Is am directed to notify every dealer with this bank to send into bank a full and complete of claims. of nature against this bank. with every item specified to verify those claims. This should be done at once. Respectfully H. M. BENEDICT. President. Later in the day an additional notice sent to the Gold Exchange: BANK NEW YORK GOLD EXCHANGE, October 1, 1869. Dealers with the Gold Exchange Bank will please send in at once their statements of Friday morn amended on the basis of striking out from their statement the nine names ad Ivertised as rejected on Sept. 27th. The names were as follows: Albert Spey ers, Dornin & Bocock. Galway, Hunter Co., Wm. Belden & Co. Perega & Graves, Chase, McLure & Co., Williams Jr. & Co., Charles W. Keep & Co. and James Brown &Co. (Signed) CHARLES H. WOOD, Vice President The State Superintendent of the banking department is understood to express the opinion that when these statements are all in, the bank will be in such condition as to be relieved from the receivership. If this be true then many brokers will be able to meet their liabilities and resume business. It is reported that Smith, Gould & Martin will be forced into bankruptcy by their creditors, An Enormous Failure Rumor places the liabilities of Lockwood at thirty to thirty-f thousand dollars. The Lake Shore tailroad day. paid interest on the bonds of the Boffalo and Erie branch John Simonton for many years one of the editors of the New York Times, has resigned his position on that journal. MONEY AND STOCKS MONEY-Market easy during the afternoon, and before the closing of the banks money could be had quite freely at 7 per cent on Governments and stock collaterals. Discounts nominal. STERLING-Dal and heavy at 1071/8 1073. Gold-Opened at 130. and closed at 130% The Sub-Treasurer sold mil lion at 129 55a130.17. Carry rates per cent. and 1-32 per cent to flat for borrowing GOVERNMENT BONDS-Activ and higher, particularly on currency sixes closing strong. Coupons of 81, 119 1/8 do '62 119 1/2 do. new

6. October 2, 1869 Nashville Union and American Nashville, TN

Article from Nashville Union and American, October 2, 1869

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NEW YORK. The Financial Tempest-What Gold and Stock Dealers are Doing to be Saved. NEW YORK, Oct. L.-The prevailing feeling on street this evening is one of rather less confidence than this morning. has a of but the variety All kinds that causes, of stock parties principally been who lower bought from from fact outside yeeterday and this morning of different stock, made up their minds to sell and realize their profits. This drop is not to be taken as indicating of any general fall in prices or any general feeling of distrust in final result of the affair. In order to facilitate the settlement of the outstanding gold settlements of last Friday Wm. Heath & Co. offer to settle all their, nine million at 135 and upon the difference between that and the actual figure to pay 83 per cent. guaranteed by Smith, Gould & Martin, the remaining 17 per cent to be paid as soon as they obtain their fund, amounting to nearly $400,000, from the Gold Exchange bank. NEW YORK, Oct. 1.-It was reported that the receivership of the Gold Exchange Bank had been annulled by the court. The statement is incorrect, as it must be from the fact that the order appointing a receivsf er is not returnable till Monday. The fairs of Lockwood & Co. are being general ly canvassed on the streets. The actual condition of the firm cannot be known for some time; but from the enormous magni< tude of their transactions and the fearful escrifices they made in the almost frantic endeavor-to keep themselves from falling, their condition, it is feared, is really worse than has been imagined. They are said to have paid $1,000,000 gold difference alone, and they were bulls in the Pacific Mail stock at from 120 down to 60. The effect of these transactions must have been most dieastron. The street was this to of the or Southern panic. igan filled the with losses rumors Company Like afternoon Lake by Shore the Shore late in regard Mich- Com It is reported that the pany, in order to stop building the Akron branch road bought fifteen thousand shares of the Toledo and Wabash at 85 and paid for it, and further concluded to receive fifteen thousand shares more on Oct. 18, at 85, on which 8 deposit of 30 per cent. was put up. The Commercial says that investigation n to day makes it probable that the amount Lockwood to shore will be near No the owing formal Company by meeting of & the Co. directors $1,500,000. the of LakeLakeshore has There some were Company few been injunctions The held gold to-day. and counter injunctions to-day. room presented a deserted aspect this afternoon, owing to the brokere being busily engaged in their offices or making settlements around the streets. The president of the gold room received the following notice from the Gold Exchange Bank: NEW YORK GOLD EXCHANGE BANK Oct 1, 1869.-To Townsend Cox, Esq.,Sir: I am directed to notify every dealer with this bank to send into the bank a full and complete account of claims of what. ever nature against this bank, with every item specified to verify theis claims. This should be done at once. M BENEDICT, Respectfully, President. Late in the day the following additional notice was sent to dealers with the Gold Exchange Bank. NEW YORK GOLD EXCHANGE BANK, dealers with the Gold Ex Bank will once statement of change Oct.1-All their please Friday send in evening, at from bisis of striking out names as on names as amended their rejected statement on Sept. the 27. The advertised were BabAlbert Hunter & & & Graves, den cock, follows: Galway, Co, Zarega Speyers, Co, Dorwin Chas Wm & Bel- Mc. Clure & Co., P H Williams Jr., & Co. Char W Keep & Co., Jas Brown & Co. CHAS P. WOOD, Vice President. The State Superintendent of the bankis express the that are all bank a ing ir, opinion department the will when understood be these in such statements to condition as relieved from If then many be this to be be true, the brokers receivership. and will able their liabilities resume It is Gould & Martin will be business. to meet their creditore. rumored forced that into Smith, bank ruptcy by The money was easy during the after and before the closing of banks mon ey be had per cent on and t noon, could government quite stock freely collaterals. dull at 7 and Discount nominal. Sterling heavy e 17t@7fc. Gold opened at 130, touched 130g and closed at 130 The sub-treas urer at le ratés per cent g cent. to and $130 17-100. 1.32 sold per $100,000,000 Carrying flat for $129 7 borrowing 5100@ Governments active and higher. State bonds firmer; old Tennessees 601; new 52 NEW YORK, Oct. 1-Ramor places the liabilities of Lockwood at $30,000,000 t $35,000,000. , John Swinton, for many years an edito of the New York Times, has resigue in position on that journal e

7. October 11, 1869 The Charleston Daily News Charleston, SC

Article from The Charleston Daily News, October 11, 1869

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made for the removal of the receivership over the New York Gold Exchange Bank on Tuesday next. The coal was removed from the steamship Cuba, at Wilmington, N. C., on Saturday. She had ten tons, enough to run eight hours, which evidently proves she came in in distress. The New Orleans Times, of Saturday evening, says that the steamship Lillian arrived at Cedar Keys in time, took on board her freight and passsengers, and sailed without being molested. Parties in search of her came too late.

8. October 13, 1869 The New York Herald New York, NY

Article from The New York Herald, October 13, 1869

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NEW YORK CITY. THE COURTS. UNITED STATES DISTRICT COURT-IN BANKRUPTCY. The New York Gold Exchange Diffenlty-The Petition Filed in Bankruptcy Against the Bank Dismissed. Before Judge Blatchford. Ernest Otten and Edward G. Taege, Petitioning Creditors vs. the New York Gold Exchange Bank, Defendants.-An - order has been signed by Judge Blatchford in the above entitled case, dismissing the petition of Edward G. Taege and Ernest Otten who Bought to place the affairs of the Gold Exchange Bank in bankruptcy. The order states that the petitioners, Otten and Taege, failed to sustain their allegations. which were that the Gold Exchange Bank. while insolvent, or contemplating bankruptcy or inscivency, had, during the recent panic in Wall street, made preference payments or transfers of money, in some instances of $1,000,000 or upwards, to certain creditors in fraud of other persons. Failure in the Far Trade. Before a Register in Bankruptcy. In the Matter of David J. & W. King. 1 This was the meeting for the choice of assignees and the proof of debts under this estate. The petitioners had carried on business as retail dealers in furs in Broadway; their Habitities are stated at $70,000, and assets about $20,050. Various creditors had placed attachments upon property in their store, and they filed their petition in bankruptcy to save the stock for division among their creditors. Edwin James, who, with Mr. J. Fletcher, appeared as council for the bankrupts, presented a written request on behalf of the creditors asking for an adjournment in order to effect a compromise which IS now in progress. Mr. McMahon, council for the creditors, consented, and the Register adjourned the meeting till Saturday next, at twelve o'clock.

9. October 20, 1869 The New York Herald New York, NY

Article from The New York Herald, October 20, 1869

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SUPREME COUR T-CHAMBERS The Argument in the Gold Cases-Iojunctions Against the Gold Exchange Bank and the Stock Exchange-How the Busluess Has Been Condneted-Further Affidavits. Before Judge Cardozo Smith vs. Cor.-In pursuance of adjournment from last week the argument in the Wall street gold Injunction cases came up yesterday morning before Judge Cardozo, when a large array of counsel appeared on botn sides. Mr. David Dudley Field and Mr. Dudley Field appeared on behalf of the plaintiffs; Messrs. Clar ence H. Seward, Marvin and Da Costa for the New York Gold Exchange Bank and Mr. Marbury for the New York Stock Exchange The ease of Smith vs. Cox was hit upon as a test case for four others also in issue. Mr. Dudley Field, in opening his motion to the court, said that four of these motions came up on the original order of injunction, which was accom panied by an order to show cause why the injunctions should not be made perpetual or why they should not be continued until the trial. In the fourth case the injunction was absolute, and the defendant had obtained an order to show cause why the injunction should not be set aside, which was returnable to-day. The cases were almost identical, except that of Willard. He would, therefore. go on and give a statement of the cases as contained in the complaint: Edward K. Willard, Plaintiff vs. William H. Neilson, as President of the New York stock change, and Townsend Cox. as of the New York Gold Exchange, W illiam H Neilson Moses II. Wheelock, B o. White George H. Broad head, Townsend Cox. Thomas A. Hout. George H Bend, Thomas P Akers and George Phipps, Defendants.- The plaintif complains and alleges:First That this action IS commer need on behalf of hunself and of all other members of the New York Stock Exchange and of the New York Gold change who are similarly ituated and who may contribute to the expenses of this action Second- That the New York Stock Exchange is a joint stock association, composed of several dred persons associated together for the purpose of transacting usiness in stocks. bonds and securities and located and transacting its business only in the city and county of New York. Third- New York Gold Exchange is a joint stock association. composed of more than 200 membern or persons, associated together for the purpose of transacting business in buying and selling gold in the city and county of New York Fourth-The plaintiff 18 member of each of the said associations and is a broker in gold: the defendant Neilson 18 Presideut of the New York Stock Exchange and the defendant Cox 18 President of the New York Gold Exchange: the defendants Wheelock, White and Broadhead are each officers of said New York Stock Exchange. and the defendants Hoyt Bend, Akers and Phippe are each officers of said Gold Exchange Fifth-By the bylaws of the New York Gold Ex change in substance prescribed that all contracts made by ite members with each other for the purchase or sale of gold shall be settled through the New York Gold Exchange Bank, unless otherwise provided by the terms of the contract. Sixth The said bank is clearing house, by the aid of which the members of the said New York Gold Exchange have been for long time accustomed to settle the balances due from them to each other upon dealings in gold. and by this means the said members have been relieved from the necessity of settling all the transactions in detail. so that if a broker sold gold to twenty different persons and bought gold from twenty other persons he would. under the operation of the said rule. have to pay out or receive only the duference between the whole amount of his purchases on one day. whereas in the absence of such a provision the contract would be much more onerous, and he would have to deliver the whole amount.of his sales and obtain actual possession in one day of such an amount of gold for that purpose, and also to obtain in one day currency sufficient to pay for the gold bought by him. Seventh On Friday, September 24. 1869, the transactions or the said the New York Gold Exchange in gold betw its members were very large. exceed ing $350,000, 000 in com and 9450, 000,000 in currency. and almost the hole of these transa ctions were made under the rule aforesaid, with a distinct understanding anlong all parties that they would be settled through the said bank, and such an arrangement was an ssential element of the contracts. and particularly of those made and entered into by this plaintift with other members of the said New York Gold Exchange. Eighth-It was and is utterly impossible to perform these contracts by separate deliveries and pay ments, and was so well known to the parties thereto, there not being enough coin or currency in the country to do it. And no provision made or contemplated by the parties for the failure of said bank to act a clearing house. The said bank has neglected to clear the said transactions its anairs are If in great confusion, its solvency is much impaired not destroyed. and It is now by injunction from doing business and 18 in the hands of receiver a Ninth- The adjustment of accounts incident to clearance of the said transactions is task of extreme delicacy and great difficulty, involving the exercise of the highest personal discretion, and the duty making such an adjustment cannot lawfully be devolved upon any person other than one agreed upon by all parties Tenth The plaintiff and many other persons are members of the New York Gold Exchange and also of the New York Stock Exchange, and contracts have been entered into by the plaintiff and others members of both exchanges. with reference to the rules and bylaws of the New York Gold Exchange and subject thereto. for the sale of gold. which contracts have not yet been completed by the plaintin's delivery of the gold or cleared through the Gold change Bank It IS now claimed by some of the members of the New York Stock Exchange that these contracts shall be closed at the New York Stock Exchange, under and in accordance with rules and bylaws instead of under the rules and by laws or the New York Gold Exchange under and in pursuance of which such contracts were made Eleventh Each of the said Exchanges has rule or bylaw, by which the president or other officer of each is required to buy or sell. as the case may be, for the account of any member of that Exchange neglecting to tulfi his contracts as a member thereof and such member is bound to pay the deficiency accruing upon such sale or purchase, and in defauft thereof is liable to expulsion from euch Exchange but the said rule in each Exchange was and in sended to apply only to conducted under and with reference to the bylaws that Exchange, and never was meant to apply not has been applied, to made with reference 10 the rules of any other organization. Tacel@ tis the arowed intention of many members of the said New York Stock Excl ange to apply and enforce the rules and bylaws of the said York Stock Exchange to said contract made for the purchase and sale of gold between members of the said the New York Gold Exchange, and with reteand rence and in aubordination to the rules bylaws of the said New York Gold Exchange and to require the President of the New York Stock Exchange or some other officer thereof, to buy and sell gold on account oi such persons claimed to be deptors on the adjustment of said transactions. and as the plaintin is informed and believes the presi dent or other officers of said New York Stock Exchange will do so. and members failing to complete transactions so made on their account by the president or other officer of said New York Stock Exchange will be expelled from said association, will be deprived of the power to deal as a public broker in gold and will love his credit and standing among brokers, bankers and business men. thereby suffering damage irreparable. and wholly incapable of being estimated or made good by pecunitry compensation. and even 11 compensation for such injuries could be made It will be impossible to ascer tain the persons legally liable to pay it. Wherefore the plaintif prays Judgment:1. That the defendants and each of them, and the New York Stock Exchange and the officers hereof. be hy injunction from aying or selling gold on account of any of said New York Gold Exchange when the round of such purchase or sale is the failure of such member w per the with reference and under into entered contracts form rules or bylaws of the New York Stock Exchange, and from declaring or adjudging any member in default, by reason of a

10. October 20, 1869 The New York Herald New York, NY

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of from tracts by any other means than actions restrained, by injunction, from buy where him on fther. his failure either said exchanges, any Plaintin Attorneys. WIIK. Edward and County City ard. plainthi, being duly sworn. says that the pending complaint is true of his own knowledge, the matters therein stated to be upon information and belief, and as to these matters he believes it to be true. EDW ARD K LLARD Sworn September 30 1869, before me- EDW ENSIGN. Notary Public New York county Mr. Field then proceeded to say that the New York Gold Exchange Is 'an association composed of more than 200 persons associated together for the purpose of transacting business in gold, one of whose bylaws provides that "all contracts made by its members for the purchase or sale of gold shall be settled through the New York Gold Exchange Bank unless otherwise provided by other And the contract of terms the to or buy laws president direct as the case may be, gold on account with to heir fall who comply members contracts. make any member personally resp the loss incurred upon such purchase or sale. and require expulsion of any member who fails to pay such loss forthwith Friday, ptember 24. sales were made to the over $300,000. 000 in coin, and $450, currency. nearly all of which were by the terms the contract to be settied through the Gold Exchange Bank. The bank refuses to clear these transactions. and is in fact unable to do so; performance of the convise other tract impossible. portion of the association have appointed a com make the clearance, but other members do assen the avowed attention of many members to require the president to buy or sell gold' under ir regular adjustment, and he will comp y, and the members W ho refuse to submit will be expelled, sufloss. fering irreparable The plainti asks that the contracts of the 24th of September be declared void, and that all attempts to enforce them by the action of the asso ciation, inde pendent of the courts of justice, be restrained by injunction. injunction having been granted, a motion is now made to continue it till the trial. enforce The Gold Exchange to the Bank an settlement. justice. through who to submit to its au usurped plaintiff. who sues not for himself but for come direct because and because secondly no in other has adequate short, plaintiff, would wholly inade To the stay hands injury, to courts the parties of jus the dietate Plaintif's Attorneys. FIEL D. of DAVID OUDLEY Mr. De Costa read in reply the answer of the Gold in the cases of Palmer Willet and Eno, which has already fully appeared in the HERALD Mr Marbury, on behalf of Mr. Neilson, President of the New York Stock Exchange, and its other officers, raised the preliminary objection that the complaint was not verified in such manner as to warrant the injunction. he defendants denied that the New York Stock Exchange joint stock association. as asserted in the complaint. was mere voluntary association of individuals, but not partnership. Mr Marbury then read mis answer, denying each and every legation in the complaint. OF HENRY SMITH. Mr Dudley Field then read the following amdavit of Mr. Henry N. Smith:and Cox Others. Henry N. Smith and Others City and Smith Henry being had saith follows: nothing with to wherein receiver the Gold Exchange Bankwas appointedand junctions obtained against bank. not party thereto implicate that a know but I still therein, suits herein one and write commenced are still pending. On the 11th made settlement. He since been engaged in and before time the including many persons, its affairs. others diligently to the Up them. the accounts, time far the were when Sept. 28, Thursday, still and merous justed, while those of Friday. September 24. remain matter public of stated by the officers of the bank and others. and repeated ithout meetings that others has clear transactions Friday. reason legal proceedings Thurs have of re cleared those and not been because their magni and the great number of not the meeting dealers. was among when the forth at folio 12 Townsend Cox and others. in my suit against them. nor been to vote have assent passed, authorize any one else to vote for Gold and Stock valuab like shares of stock. and are frequent The the and Exchange are $10,000 and the Stock Exchange which elected $10,000. every bership obliged pay before aking his seat. unless he has purchase not comply with the rules that board. or does not pay sales differences the purchase under rules, upon suspended and permitted transa business board until are paid, and they paid for certain length of time seat is forfeited. sold again for the beneüt of creditors of the entirely lost. and sociation, and sole my the sale stocks. and bonds. transrities gold others upon cannot amount large and be deprived of Exchange support. Each present means has of employee, money time to time by other or This Stock 110,000, about that contracts 1869, were none and and the Gold the Exchange contracts made therein thereof HENRY N. SMITH SEWARD'S MR. ARGUMENT Mr Seward replied on behalf of the Gold Exchange an able argument, of which the following are the leading points:YOUR HONOR- The facts in this case York and 1869, and the Court sale of applier the Gold the enforcing, the plaint)(T's the by the the bring contract fraud. The simply tract purchase decree more than specific trans! true; one, ground Nail Factory Barb. Corning, equity upon ground Codn. the most On not, the entitled this become but ground of If

11. October 23, 1869 The New York Herald New York, NY

Article from The New York Herald, October 23, 1869

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FINANCIAL. -MONEY TO BUY FIRST AND SECOND MORT. A. gages, and to loan on improved and unimproved property. WASHINGTON R. NICHOLS, Counsellor at Law, 115 Broadway, room 12. SSESSMENT.-CROWN POINT MINING COMPANY, A $7 50 coin per share. Delinquent November 20, sale December 10. Payment may be made through LEES & WALLER, 33 Pine street. OR SALE-TEN PER CENT CITY AND TOWN BONDS in State of Illinois ; first class securities, ot undoubted character, below par; also New York city Railroad Stocks and Bonds, Insurance, Bank and Gaslight Stocks, and a large variety of other Stocks and Bonds for profitable investment at low ratea. For sale by ALBERT H. NICOLAY, Stock Broker and Auctioneer, 43 Pine street. OLD COIN BONDS OF ROCHESTER CITY. G Water Works Company, First Mortgage, a choice secucurity, at a low rate, for sale by ALBERT H. NICOLAY, Stock Broker and Aucti neer, 43 Pine street. ORTON, BLISS & CO., M 30 Broad street, issue Circular Notes and Circuiar Letters of Credit for travellers; also Commercial Credits, available in all parts of Europe. M ONEY: MONEY! MONEY! LOANS MADE TO ANY amount on small interest: Diamonda bought and sold on reasonable terms. 8 MIGFL, 23 East Fifteenth street, between Broadway and Fifth avenue, near Union square. NEW YORK GOLD EXCHANGE BANK, 58 BROAD. way and 29 New street, New York, Oct. 22, 1869.-The undersigned hereby gives notice to all creditors of the New York Gold Exchange Bank whose claims have been adjusted. that pursuant to an order of the Supreme Court authorizing such further payments, he is prepared to pay 25 per cent upon the amounts of such adjusted claims (In addition to the payment of 25 per cent already made) at the said bank, on and after the 234 first. C. N. JORDAN, Receiver.

12. October 26, 1869 The Evansville Journal Evansville, IN

Article from The Evansville Journal, October 26, 1869

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Man taken out of East River He had been Robbed of a Sum of Money and Nearly Murdered. or BLITDER Pere Hyacintho to Visit Boston. NEW YORK -PVT The Affairs of the Lake Shore Company Discussed in Stock CirclesNominal Capital of the New combination to be Fixed at $50,000Gold Exchange Bank Affairs. NEW York, Oct: 25.-The affairs of the Lake Shore Company, so far as they have leaked out, were the subject of much discussion in stock circles to-day. It is announced on the authority of one of the Directors that the nominal capital of the new combination has been fixed at $50,000. This had a depressing influence on speculation in the shares. The combined capital of the Lake Shore and Wabash will represent $41,000.000, putting the Lake Shore at 100 and Wabash at 75, but when the Decatur and St. Louis is taken in the capital willabe raised to $42,500,000. This will leave a margin for the Company to sell $7,500,000 new stock, which it is stated will only be sold for the purpose of double tracking and equipping the road. The $50,000,000 share capital is, of course, exclusive and the bonded debt of the various roads embraced in the consolidation. The announcenient that the Lake Shore Company is empowered to sell SO much additional stock, created an uneasy feeling. There is to be a cash dividend of four per cent. on Lake Shore to be declared on the first of January, 1870, payable on February 1, 1870. The new Company will be called the Buffalo, Lake Shore, Chicago and Wabash Railroad Company. Mr. Jordan, Receiver of the New York Gold Exchange Bank, has notified the creditors of the Bank, that he will, to-morrow, begin payment of the additional 25 per cent. on all adjusted claims. This makes a total payment of 75 per cent. It was stated this afternoon, by some of Jordan's friends. that he would be able to pay the remaining 25 per cent. in a few days.

13. October 27, 1869 The South-Western Shreveport, LA

Article from The South-Western, October 27, 1869

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BIG WAGES.-We have the authority of a New York dispatch of the 11th, for stating that in the order recently made by counsel in the suits against the New York Gold Exchange Bank, substituting C. M. Jordan for A. L. Brown, as receiver, it is provided that Brown be allowed fifteen thousand dollars for services for the few days during which he acted as receiver, and that the attorneys in each action be allowed fifteen thousand dollars as counselors. A traveller says that the streets of Austin, Texas, are lighted by red haired girls and lightning bugs.

14. November 13, 1869 The Pacific Commercial Advertiser Honolulu, HI

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Special Letter from New York. The Late Panic in Wall Street. NEW YORK, Sept. 29, 1869. OF THE P. C. ADVERTISER :-We are in Wall havEDITOR times here in New York, blawsted and row," ing lively which is the focus of the " street, having it hot and heavy. The newspapers accounts of we are filled with long and interesting and I only daily to which I am about to allude. order that events make some few explanations in those write to affair may be better understood business. by the whole with the routine of Wall street their heads not familiar that some master minds put market. It seems some days ago to control the gold doubt astogether much capital to back them, and no will show, With some of the banks, as the sequel corner' gold. sisted by enabled, as it is called, to of gold they were be made aware that the amount is not You should circulation in the United States for use in in actual about twenty millions available spread all great; say A vast amount of course is of thouWall street. country, little gums in hundreds large over the hands, making in the aggregate amount a in sands of Sam has accumulated a vast eighty sum. Uncle holding usually on an average touched, his treasury, hundred millions which cannot be disarrange as policy of the Government not to undoubtedly it is the of the country, which sold. finances the case if large sums were suddenly Boutwell has the the of would hte be Secretary regularly with shid about promillion dollars gold weekly. and gradually one ceeds purchased United States bonds, thus heavy our national debt and our consequent the surreducing account, and quietly disposing of all the Interest which comes in for customs dues, disturb the plus gold easily and regularly as not to mentioned. time so of trade, as I have previously readily see balance this explanation your readers can marFrom boldness and capital can manage the gold how provided the manipulators can find enough resolved per- to Thons ket, to whom to sell the gold they have buy. the matter of this financial erisis readers can be Before understood, I will enlighten your called clearly concerning an Institution here in New York a New York Gold Exchange Bank, acting as the clearing house for all gold dealers, enabling handle a person extremely limited capital to move and transactions amount of gold, not gold coin, but bank was East representing gold. During the war this rose and in existence, and then gold frequently the actual ot twenty-five per cent. in a day. Then the gold II dealt now nearly the whole of the unsactions in was are fictitious. Imagine, therefore, amount idely-spread loss on over 500 millions, the 150 to leared on Friday last, at a range from urged up then down to 131. I have always 64 Government should put out its strong nd at this gold bank, when gold crush and the would speedily hand 115 or 120 and all these unhealthy and gigantic real 11 to would cease, and gold maintain its in In a country hopelessly Seculations lue. Austria, involved since 1848, if specie has not been in circulation debt, ebt, ad it is doubtful, with its present enormous basis. country will ever return again to a specie discount on their paper (i. e., premium on for years has never gone old) et the many above 25, if even the Italian French war and now, here my demory uring correctly serves me, is about 15. And great, prosperous country. with a fair prospect before our paying off its entire debt certainly long expiration of the present century, with its obliga- This ons at a regular discount of from 30 to 50. ate of things is unnatural and unhealthy, and affairs by suppression of the gold bank, reach their proper position. As you see on further, it is to be hoped ould I go he simple that the will Gold Bank is on its last legs. I a Exchange annual think it divi- is state Bank. Not satisfied with paying of 40 cent., the directors must put a of gold speculation, and now ends the pie per their affairs finger influin the hands of a receiver. The strongest nce re will be made to prevent this or any similar intitution ever going again into operation. To further explain regarding this gold bank routine, diswill repeat that the bank acts as receiver and for the gold dealers. I, for instance, repreent firm of John Smith & Co., and or customers have the belief that gold go so we buy gold, that is go " to various gold dealers and buy urser igher y the go ; long" ought from myself of I them to gold. y $100,000 gold at 185. If it goes up, as preand hoped it would, and I am satisfied with I sell out my $100,000 gold, umed be profit, parties thus clesing I purhe transaction. With the party or based from I exchange tickets, extending the curvalue of the gold, going same rm with the parties to whom I sold I $100,000 gold at 135 and it I make up my statement to the accomney stance 136, bought through the bank, traded gold. the sold with, For nied by the tickets of the dealers I owing $1000 to be due me. On the opposite side, other make out their accomparties statement, the bank ied with tickets showing that they owe DOO, for which sum they deposit their certified ek. and at a subsequent hour, after having exned all the transactions, the bank pays over to my $1000, which they have already received the other parties. So one hand washes the in case there are no errors or deficiencies-the

15. November 17, 1869 The New York Herald New York, NY

Article from The New York Herald, November 17, 1869

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FINANCIAL AND COMMERCIAL. TUESDAY, Nov. 16-6 P. M. The question of clearances was again the subject of an animated discussion in the Gold Board, which held a special meeting this afternoon, for the purpose of receiving the report of the Gold Bank, as follows:NEW YORK GOLD EXCHANGE BANK, NEW YORK, Nov. 16, 1869. F. UNDERHILL, President New York Gold DA J. chaugSIR-The our from Thômas P. Akers, secretary, advising the bank of the following action had by the Exchange on the 15th inst., IS received:Resolved, That the directors of the Gold Exchange Bank be requested to give a written report of the condition of the bank: also to report the names of parties who have failed to make good their statements of Friday, the 24th of September last. In reply to the first portion of the request a statement of the bank 18 herewith given:$184,496 Cash on deposit in the Metropolitan Bank On deposit in the United States Trust Com100,000 pany 25,900 Bills receivable New York State bonds with Bank Depart11,000 ment Two hundred shares bank stock, taken in 12,000 settlement by the receiver. 15,000 Vauit and nitures 4,200 Fines and commissions due Total $302,596 Claims as rendered by statement by C. N. $174,000 Jordan, receiver 53,000 Claims against the bank in dispute in regard to furnishing the names of parties who have failed to make good their statement of the 24th of September last we beg to say that III the opinion of the board of directors it 18 considered inexpedient to furnish any names beyond those her etofore announced. Most of the parties against whom claims exist are considered good, and a settlement with whom will not ,necessarily impair their standing. Furthermore, as the statements of dealers to the bank were settied in most cases oy the receiver, it would not be proper for the directors to discriminate between the members as to the question of failures under the clearing rules, and the directors would resp ctfully reçommend that all disputes àrising out of the complications of the clearing movement of September 24 last, between members of the Gold Exchange and this bank, be referred to the arbitration committee for settlement, to whose decision the bank will cheerfully submit. In regard to the amendment to the fifth article passed by the Gold Board, the directors would observe that in complying with it they would expose themselves to a charge of breach of faith towards a portion of their dealers and perhaps lay themselves open to legal proceedings. And therefore respectfully asic a reconsideration of said amendment. By order of the Board. Very respectfully yours, JACOB RUSSELL, Cashier. A motion to reconsider the action of yes terday prevailed, and the report of the committee was so amended as to allow the same persons the privileges or the Clearing House who heretofore enjoyed them. It was furthermore understood that the bank will not commence clearing until Monday, so that until Saturday next all gold transactions will be still ex Clearing House. These arrangements are binding until the annual election on the 7th of December next, when, with a new régime in the Gold Bank, a more harmonious state of affairs may be brought about, especially as it is proposed to then make good the deficiency in the capital of the bank. Gold was very steady to-day, and ranged only from 127% to 12734, the weakness of governments in London keeping the market firm. Holders paid from seven to six per cent to have their balances carried. The price at the different hours is shown in the table:-

16. February 19, 1870 The Sun New York, NY

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# COLD EXCHANGE BANK CORNERED. A Wealthy Corporation which wanted Work Done for Nothing-A Reminiscence of Black Friday-A Clerk, Suing, Wins. The case of James H. Symes agt. The New York Gold Exchange Bauk, being the first of a number of cases, came on for trial Thursday morning, after a number of adjournments, before His Honor Judge Quinn, in the Fiest District Court. The court room was well filled with a throng attracted by the interest of the case, it being a test suit instituted by one of the clerks of the defendants for extra work and services rendered during the "Black Friday" and the ensuing days, in balancing up and adjusting statements of the Bank. Mr. Jesse K. Furlong, for plaintiff, called and examined Mr. Symes, who swore that he had been for many years in the employ of the Bank, whose regular hours were from 10 A. M. to 3 P. M., and were only extended when a clerk had made some error in his "balances," and that did not often occur. When it did they never remained later than 6 o'clock P. M. That he performed these extra services long after business hours, and on some occasions had to remain all night at the Bank, even working taree Sundays. For this the Bank refused him compensation, and on the 15th of November discharged him, paying only his regular salary. A number of his brother clerks in a like condition gave similar testimony. Mr. Crowell, for the defendants, called Mr. Roberts, one of the officers of the Bank, to prove that the plantiff did not render ail the services he had charged for, and that the sum of $3 charged for the same was exorbitant. Mr. Conrad Jordan, late receiver of defendants, testified that the plaintiff was in the defendants' employ, and bad done nothing more than was expected of him; that it was not customary ter banks to pay their emplo.ees for overwork; that his bank did not do so; he had paid some of the clerk $50, and one $100 for services to him as such receiver. He declinet to swear what Mr. Symes's services were worti, it worth anything. After other testimony had been taken, the Court rendered ju izment for $15 and costs, and allowance to the plaintif