The New York Gold Exchange is an exchange that formed immediately after the start of the American Civil War for the purpose of creating an open market for deals involving gold and paper currency created by the government, the greenback. Founded in 1862, closed in 1897.
Video New York Gold Exchange
History
During the Civil War
This exchange was founded in 1862 in the basement of New Street. The exchange was created during the American Civil War, when the Union issued a paper bill to fund the war effort. Gold trading was initially banned on the New York Stock Exchange, which viewed the practice as unpatriotic, wartime speculation. This is because the Confederate victory resulted in an increase in gold prices relative to the greenback dollar, causing gold traders to sing "Dixie" in the Exchange when they received news of the Confederate victory. Abraham Lincoln at one point openly expressed his wish that "every one of them [gold speculators] has shot the head of his demon."
The expulsion of the gold trade from the New York Stock Exchange "almost stopped trading for a moment" as gold traders moved into various dungeons on Wall Street, William Street, and Broad Street. Commerce moves successively from the "dark hive named Lubang Batu" to Gilpin News Room , also called Gold Gilpin Room . It is not clear who Gilpin is.
On June 17, 1864, Congress, angered by speculation, passed laws prohibiting gold trading anywhere except for brokerage offices. This briefly closes the exchange, but unregulated road transactions continue. Speculation is unobstructed, and gold prices relative to the greenback rise. Congress revoked the law two weeks later.
Gilpin reopened under the name "New York Gold Exchange" in the same year, and was founded on October 14, 1864. The New York Gold Exchange's new facility, located on the corner of William Street and the Exchange Place, is usually known simply as Gold Room . Such a luxurious exchange "anticipates the Gilded Age."
Entrepreneur James Boorman Colgate is the founder and president of the New York Gold Exchange. Other founders of the Gold Exchange include Levi P. Morton, a young J. P. Morgan, and other Wall Street personalities. Samuel Spahr Laws, a Gold Exchange manager, discovered the Golden Indicator Law (the predecessor of the ticker tape machine) to display current gold prices for both traders on the exchange floor and the public on the street. The annual membership fee is $ 25, although this is quickly raised to $ 200, then $ 1,000, and eventually to $ 2,500.
Significant gold trade for U.S. foreign trade, but the majority of trading on the Stock is speculative. Historian John Steele Gordon notes that "hundreds of pure speculators" traded in Gilpin, but that "respectable traders who need gold for business purposes or for hedging against fluctuations in greenback prices" are also traded there. Business historian Robert Sobel calls the gold exchange "the most informal and definitely wildest market in American history" because of its wild advantages and disadvantages, high bankruptcy rates, and frequent "counterfeit forgery, forgery, and late delivery" from gold. After a series of gold robberies, the broker on the exchange set up a personal certificate system that can be withdrawn on deposits at the Bank of New York. As a result of these arrangements, Bank of New York became the second largest gold holder in the country, after the US federal government. However, in 1865, E. B. Ketchum of Ketchum, Son & amp; Co forged over $ 1.5 million in certificates and then fled; these and other such episodes encourage the formation of the Gold Exchange Bank, with daily account back-up reports and other anti-fraud measures.
Post Civil War
The New York Gold Exchange became part of the New York Stock Exchange in 1865. The Gold Exchange was the Black Friday financial panic of 1869, which occurred after Jay Gould and James Fisk attempted to corner the market with gold. In subsequent litigation - heard before Judge Albert Cardozo - David Dudley Field representing Fisk, while Clarence Armstrong Seward and Charles M. Da Costa represent the New York Stock Exchange and the New York Stock Exchange.
Gold trading became less profitable as the stock market became more volatile, and the Exchange ceased operations on January 1, 1897, after commencement of commodities.
Maps New York Gold Exchange
See also
- List of ex-stock exchanges in America
- List of stock mergers in America
- List of stock exchanges
- New York City Economy
References
Source of the article : Wikipedia
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