Black Friday
In August 1869, Gould and Fisk began 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 used 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 culminated in the panic of Black Friday, on September 24, 1869, when the premium over face value on a gold Double Eagle fell from 62% to 35%. Gould made a nominal profit from this operation, but lost it in the subsequent lawsuits.
The gold corner established Gould's reputation in the press as an all-powerful figure who could drive the market up and down at will.
Read more about this topic: Jay Gould
Famous quotes containing the words black and/or friday:
“I see America spreading disaster. I see America as a black curse upon the world. I see a long night settling in and that mushroom which has poisoned the world withering at the roots.”
—Henry Miller (1891–1980)
“The dripping blood our only drink,
The bloody flesh our only food:
In spite of which we like to think
That we are sound, substantial flesh and blood—
Again, in spite of that, we call this Friday good.”
—T.S. (Thomas Stearns)