m the topics to which he directed my attention
in the letter, it is the unavoidable inference from the context as a
whole that Gould had then no faith in the statements given to the
public that the President was in any manner pledged to interfere and
prevent the sale of gold. The following extracts from the letter of
September 20 are a full exposition of his policy and of the means on
which he relied to advance the price of gold during the month of
September:

"On the subject of the price of gold and its effect upon the producing
interests of the West, permit me to say that during the months of
September of the past two years the price has averaged about forty-
five. Gold must range this year at about that premium to enable the
export of the surplus crops of wheat and corn. We have to compete with
the grain-producing countries bordering on the Black and Mediterranean
seas, and it requires a premium of over forty per cent on gold to
equalize our high-priced labor and long rail transportation to the
seaboard.

"My theory is to let gold go to a price that we can export our surplus
products to pay our foreign debts, and the moment we turn the balance
of trade in our favor gold will decline from natural causes. In my
judgment, the Government cannot afford to sell gold during the next
three months while the crops are being marketed, and if such a policy
were announced, it would immediately cause a high export of bread-
stuffs and an active fall trade.

"P. S. In addition to the above, if gold were put upon the market,
government bonds would decline to at least fifteen, leaving the
purchases made by the Government in the past few months open to
criticism as showing a loss."

As early as the 20th of September, I had evidence satisfactory to me
that the Tenth National Bank in the city of New York was a party to the
speculation in gold, and that its assistance was rendered largely
through the certification of checks drawn by the brokers, and largely
in excess of the balances due them upon the books of the bank when the
certifications were made. It appeared from the evidence submitted
that these certifications of checks in excess of the balances due to
brokers amounted to about $18,000,000 on the 22d and 23d of September,
when the speculation was at its height.

For the purpose of arresting that process and checking the speculation
in gold, I detained the comptroller of the currency and three competent
clerks after th