the operations that were going on there involved
innocent parties who were engaged in legitimate business, and also
imposed upon the Government a sacrifice in the loss of revenue.

Following the downfall of the combination, there appeared in the
newspapers statements and imputations which reflected upon the
President and his family as to their relations to the gold operations.
All these statements were without foundation. Mr. Corbin's connection
was established beyond controversy, but the evidence which established
his relations to the parties engaged in the gold speculation was also
conclusive as to the fact that the President had no connection with it,
and that he was not in any way interested in any policy calculated to
advance the interests of the combination.

The apprehensions that were entertained on the evening of the 24th and
on the 25th of September as to the extent of the disaster to business
and to individuals engaged in gold speculation were not realized in
full. My special correspondent in New York said in a letter dated
September 25: "Many of the houses hurt and reported failed yesterday
are likely to recover." Again he said: "The demoralization in the
street was never equaled, and it must take several days at least
before matters get fairly straightened. There is a wholesome dread
against making any obligations. Smith, Gould and Martin are just
reported as paying in full."

In a letter dated September 27 at 6:30 P. M., the assistant treasurer
at New York wrote me: "From the best evidence to be gathered in the
excitement here, it is safe to infer that the Gold Exchange Bank will
suffer losses to the extent of its capital and surplus at least, and
perhaps more." To the contrary of that prediction, it is to be said
that the Gold Exchange Bank was able to meet all its obligations.

In a letter written by Mr. Grinnell, then collector of the port of New
York, under date of September 24, after the announcement of the sale of
gold had been made, I find this statement: "Had you not taken the
course which you did, I believe a large proportion of our most reliable
merchants and bankers would have been obliged to suspend before three
o'clock to-day, as confidence was entirely gone and the panic was
becoming universal."

Following the break in the price of gold, there were persons who became
apprehensive that the rate would fall to a point which would affect
their interests unfavorably, and I received