"I'VE SOLD THE TREASURY DRY!" 129 



I have in mind two mistakes which were hon- 

 estly made and worth all they cost in the lesson 

 they taught. On June 20, 1864, Congress, mis- 

 taking the symptoms for the disease, made of 

 transactions in gold a penal offense unless made 

 in the office of buyer or seller. I had warning 

 of the probable passage of the bill and stood 

 from under, closing all the contracts but buying 

 all the gold I could pay for without borrowing 

 in the market. I believed that so medieval a 

 measure would put up the price of gold, but had 

 not the courage of my convictions. Within a 

 few days the price rose nearly a hundred per 

 cent and when an affrighted Congress hastily 

 repealed the bill it had passed eleven days be- 

 fore, the price fell sixty-five per cent in a day. 

 Dealings did not cease during the days they were 

 under ban, but were carried on in the street on 

 a hypothetical basis. As I met a fellow broker 

 I would say: 



"If I were in your office I would sell you 

 twenty thousand gold at a hundred and seventy- 

 five." 



