Essay about Trying to Corner the Gold Market on Black Friday

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There have been many financial corruptions and scandals though out history and in 1869 one such scandal rock The United States financial institute’s foundation. The attempt to corner the gold market lead to the preverbal straw which almost broke the camel’s back. This scandal has become to be known as Black Friday, not to be confused with the Friday following Thanksgiving this Black Friday proved that without oversight of the market it could quickly become a market of the few.
Here we are 118 years removed from this attempt to create a monopoly of the gold market and we still have some of the same issues going on to this day. The 1869 Black Friday scandal might have been prevented if the Sherman Antitrust Act of 1890 was in place, but …show more content…

The American people believed that the U.S. Government would make good on their credit by buying back the greenbacks with Gold.
Jay Gould was a leading American railroad developer and Jim Fisk was an American stockbroker and corporate executive. These speculators had a plan on how to profit from the U.S. Government greenback buyback plan. The plan to buy the gold at a lower prices as the U.S. government bought back the Greenbacks at a discounted price the gold price would lower and before more gold was introduced into the market the price would increase. The plan would require to know when to buy and when to sale to maximum ones profit.
Jay Gould and Jim Fisk knew they would greatly benefit with some inside insight so they first recruited Abel Corbin a financier who was married to Virginia Grant the sister of President Grant. Jay Gould and Jim Fisk would also recruit the help from a former Union Army General, Medal of Honor recipient, and New York businessman Daniel Butterfield.

Abel Corbin was successful in convincing his brother-in-law President Grant in appointing the former Union Army General Daniel Butterfield to the assistant Treasurer of the United States position. Abel Corbin was also able in influence President Grant to avoid future government actions in the gold market by not selling gold if prices were to spike. With Daniel Butterfield in place as the

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