The Gold Hoax of 1864

On May 18^th 1864 two morning papers, the New York World and the Journal Commerce said that President Lincoln was calling for an additional 400,000 men to join the Union Army. This implied that the war was going to last for many more years which caused many people to take money out of the stock market and invest in gold (a much safer option).By 11’ o clock massive amount of people started to gather around the stock exchange to learn if Lincoln really issued the proclamation because only two papers printed a draft notice. The Associated Press issued a statement denying the draft notice. The   Secretary of State William H. Seward also denied the allegation. On May 21 Francis A. Malison, a reporter for the Brooklyn Eagle quickly confessed to being an accomplice. He claimed that Joseph Howard the editor of the Brooklyn Eagle. Deliberately gave New York World and the Journal Commerce inaccurate information so the prices of gold would go up. Joseph Howard invested heavily in gold the day before he gave the false information to the newspapers.  Joseph Howard severed three months of jail before he was released by President Lincoln. Two months after the scandal, President Lincoln ordered a draft of 500,000 men for the Civil War.               

"The Civil War Gold Hoax, 1864." The Civil War Gold Hoax, 1864. The Museum of Hoaxes, n.d. Web. 27 Jan. 2013. <http://www.museumofhoaxes.com/hoax/archive/permalink/the_civil_war_gold_hoax>.