The Gold Ring (Black Friday Scandal, 1869)

The Black Friday Scandal occurred on September 24, 1869, when two speculators, Jay Gould and James Fisk, attempted to corner the gold market, creating a financial panic. The scheme directly involved President Ulysses S. Grant’s administration, though Grant himself was not found guilty of wrongdoing.

The Scheme

• Gould and Fisk attempted to corner the gold market by buying massive amounts of gold.


• They planned to keep gold prices high by preventing government sales of gold.


• Corbin, using his connection to Grant, attempted to influence the Treasury not to sell gold.

Consequences

• Jay Gould and James Fisk avoided jail but faced public outrage.


• Some small investors lost fortunes.


• President Grant faced criticism for his administration’s lack of oversight, although investigations cleared him of personal wrongdoing.