Jim Fisk and Jay Gould carry financial …

Years: 1869 - 1869
September

Jim Fisk and Jay Gould carry financial buccaneering to extremes: their program includes an open alliance with Boss Tweed, the wholesale bribery of legislatures, and the buying of judges.

In August 1869, Gould and Fisk had begun to buy gold in an attempt to corner the market, hoping that the increase in the price of gold would increase the price of wheat such that western farmers would sell, causing a great amount of shipping of bread stuffs eastward, increasing freight business for the Erie railroad.

During this time, Gould uses contacts with President Ulysses S. Grant's brother-in-law, Abel Corbin, to try to influence the president and his Secretary General Horace Porter.

These speculations in gold culminate in the panic of Black Friday, on September 24, 1869, when the US Treasury, in response, releases its gold on the US market.

The sudden glut causes the price of gold to plummet—the premium over face value on a gold Double Eagle falls from 62% to 35%—and collapses the entire stock market.

The gold corner establishes Gould's reputation in the press as an all-powerful figure who could drive the market up and down at will.

Though many investors are ruined, Fisk and Gould escape significant financial harm.

Gould had made a nominal profit from this operation, but will lose it in the subsequent lawsuits.

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