Which 1869 U.S. gold-market panic became known as Black Friday?
Answer
The Fisk–Gould gold scandal
The 1869 U.S. gold-market panic known as Black Friday resulted from the Fisk–Gould gold scandal.
Financiers Jay Gould and James Fisk attempted to corner the U.S. gold market by buying gold and seeking influence over government policy. They expected the administration of President Ulysses S. Grant not to sell Treasury gold, which would have allowed prices to rise sharply.
Grant eventually ordered the Treasury to release $4 million in gold. On September 24, 1869, the resulting selling caused gold prices to collapse and disrupted financial markets. The day became known as Black Friday, although it was a gold-market panic rather than a modern stock-exchange crash.
The episode damaged investors and businesses connected to the speculation. Gould and Fisk were central figures, but the scandal did not permanently destroy either man’s fortune in the way popular retellings sometimes imply. Black Friday is also distinct from the 1929 Wall Street crash and the 1987 stock-market crash.