Posted by Vishva News Reporter on September 24, 2004

Black Friday (1869)
From Wikipedia, the free encyclopedia.

Black Friday, September 24, 1869, was a financial panic in the United States caused by two speculators' efforts to corner the gold market. It was one of several scandals that rocked the presidency of Ulysses S. Grant.

During the American Civil War, the United States government issued a large amount of money that was backed by nothing but credit. After the war ended, people commonly believed that the U.S. Government would buy back the "greenbacks" with gold.

In 1869, a group of speculators, headed by Jay Gould and James Fisk, sought to profit off this by cornering the gold market. Gould and Fisk first recruited Grant's brother-in-law, a financier named Abel Corbin. They used Corbin to get close to Grant in social situations, where they would argue against government sale of gold, and Corbin would support their arguments.

Corbin convinced Grant to appoint General Daniel Butterfield as assistant treasurer of the United States. Butterfield agreed to tip the men off when the government intended to sell gold.

Grant, however, became suspicious of Corbin's sudden interest in the gold market and uncovered the plot. He then ordered the sale of $4 million in government gold.

On September 20, 1869, Gould and Fisk started hoarding gold, driving the price higher. On September 24, the price of an ounce of gold was $30 higher than when Grant took office. But when the government gold hit the market, the price of gold plummeted within minutes. Investors scrambled to sell their holdings, and many of them, including Corbin, were ruined.

Fisk and Gould escaped financial harm. Subsequent Congressional investigation into the scandal was limited because Virginia Corbin and First Lady Julia Grant were not permitted to testify. However, Butterfield was removed from his post.

Gold is regarded as fundamental evil in the same time gold is also revered as a metal which is used in a lot of veDik vidhio (rites and ceremonies) including making of gold images and giving them as Daan (charity) and DKSHiANaa (gifts to bRaaHmANo when they perform priestly duties or after performing a vRt...Thus like everything in creation, there is the duality of gold...

PVAF invites YOU to share the knowledge about the above comment from SRii chmpklaal Daajibhaai Mistry, who regularly shares his veD study on this knowledge sharing PVAF web site....To share your knowledge just click on the POST A COMMENT button in the header of this news item and share away all you want and all you can.......

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