Lot 4259 o
Revenue, 1862, First Issue, 10¢ Contract, ultramarine, perf'd, tied by "Albert Speyers, New York, Sep 24, 1869" cds on broker memo datelined "New York, Sept 24, 1869" reading "Bought of A.G. Craine & Co., By Albert Speyers, For a/c of James Fisk Jr. and his Associates, $100M ($100,000) Gold at 160 Reg" and signed by broker, reverse with 1862, 10¢ Certificate Revenue (R24c) and notation "For value received we hereby assign all our sight, title and interest in the claim to Mess. Farmer Hatch & Co." signed and dated "A.G. Crane & Co., New York Oct 21, 1869"; couple vertical file folds, Very Fine.Scott No. R34ce Estimate $5,000 - 7,500.
A REMARKABLE AND HISTORIC BROKER MEMO FROM THE SEPTEMBER 24TH 1869 GOULD & FISK "BLACK FRIDAY" GOLD SCANDAL.
Two stock manipulators, Jay Gould and Jim Fisk, tried to corner the gold market. They attempted to convince President Grant that the Treasury should not sell gold on the gold exchange. Gould and Fisk spread a rumor to the effect that President Grant agreed. As a result, gold rose from $132 to $163 per ounce. When the price collapsed, many legitimate brokers went under.
Jay Gould and Jim Fisk made their fortunes speculating on railroad stocks. In September 1869, they began buying up all of the available gold on the market with the hope of cornering the market in gold. In order to succeed, they needed the cooperation of the U.S. government. Gould and Fisk, therefore, had to convince some government officials not to sell gold on the market. They met with Grant and tried to convince him that it was in the U.S. interest not to sell gold, he listened and said nothing. Thus they were able to spread a rumor that President Grant also agreed that the government should stop selling gold.
By September 24, 1869, The day that would become known as "Black Friday", the hubbub over gold had reached a fever pitch. Mobs of spectators and reporters gathered near Wall Street, and many of the Gold Room's indebted speculators walked to work like men on their way to the gallows. Gold had closed the previous day at $144 ½, but shortly after trading resumed, it took a tremendous leap to $160. Unaware that the game might soon be up, Fisk continued buying like a madman and bragged that gold would soon top $200.
In Washington, D.C., Ulysses S. Grant resolved to bust Gould and Fisk's corner on the gold market. Shortly before noon, he met with Treasury Secretary George Boutwell, who had been following the chaos via telegraph. After a brief conversation, Grant ordered Boutwell to open his vaults and flood the market. A few minutes later, Boutwell wired New York and announced the Treasury would sell a whopping $4 million in gold the following day. The price of gold collapsed, and so did the Gould-Fisk scheme. However, all of the legitimate brokers collapsed as well.