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 thought when I was a young man that I would conquer the world with truth. I thought I would lead an army greater than Alexander ever dreamed of. Not to conquer nations, but to liberate mankind. With truth. With the golden sound of the Word. But only a few of them heard. Only a few of you understood. The rest of you put on black and sat in chapel.”
—Philip Dunne (1908–1992)
““Letting go” ...implies generosity, a talent a good mother needs in abundance. Separation is not loss, it is not cutting yourself off from someone you love. It is giving freedom to the other person to be herself before she becomes resentful, stunted, and suffocated by being tied too close. Separation is not the end of love. It creates love.”
—Nancy Friday (20th century)