The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-17
Suspension of the House of Barton
IL Allen.
THE CAUSE OF THE FALL.
Why Vanderbilt Allowed His Relatives To Go
Under"-The Rumors Which Flew Around
Interview with Mr.. Barton-He Hopes To
Be Able to Recover-Three Other and
Small Failures During the After
noon-Scenes in the Stock Ex-
change and on the Street.

can equal "BlacK friday Ia Jay from WHICH AL
comparisons must START it would be the scene
which took place yesterday in the Stock Exchange.
There were not to be sure, the same number OF
failures, nor was there the same universal over
weighing Of the grief produced by ruin, bur Tor in
tense excitement, for frenzied madness the
scene yesterday was fully equal to that which char
acterized that great day on 'Change.
The HERALD OF yesterday morning prognosl-
Gated that the day would not pass without great
rise in stocks or panic. One or the other was
necessary ana inevitable to relieve the suspense
felt not only by the financial men, brokers, bank
ers, &C., but by the community at large. The rise
did not come, but the panic did
1t is not difficult TO the causes which operated
to throw the dormant panic into active being
The money market has never been more stringent
than within the past few days-we might say The
past few weeks. During this time hardly a day has
passed that money has not been quoted at q quar-
ter above the legal rate of seven per centtnat is
to say at the rate OF about seventy-five per cent
per annum. Offers three-eighths, one-half five
eighths and three-quarters per cent have been
given for money for single days use, and some
times even money has been lent from one to
another on such interest as one per cent day. 1t
became very evident that as this stringency con-
tnued something must happen to relieve the mar
ket. Spectators and brokers grew more and more
anxious every day. and AT last matters reached a
climax. This was yesterday.
SYMPTOMS OF PANIC.
The street was in a erment more or less all day.
AS the day wore on it became more and more ap-
parent that something out of the usual way was
preparing. Things were feversh ana unsettled,
ana there was the same heavincss in the air Of
finance as there is In the Summer atmosphere pre-
ceding q Storm Nobody seemed to have any
definite idea OF what he wanted to do. All
were scared ana fought shy. Even the most solid
men appeared TO have forgotten their usual
cunning and did not want to take risks when all
announced that the then present state Of the mar
ket might be turned upside down inside OF an hour.
THE STORM BREAKS.
At two O'Clock 1t was announced in the Stock
Exchange that the firm Of Barton & Allen had
failed.
The news was so sudden so astounding, so I'M
expected that Tor few moments no one appeared
to realize the intelligence. The bolsterous Ex-
change, the of so many hard battles, was still
as field after the battle was over. But it had not
begun. The stiffness lasted perhaps ten seconds,
ana then all together, instantaneously, as II by
common accord in magnificent ensemble broke
out 500 discordant shouts, and, what with the
wild rushing around, the raps of the gavcl the
click OF the telegraph and the banging OF the
doors, as the crazy brokers from outside rushed in
to hear the intelligence could readily imagine
that Is peqa e e s a lo 5sen a.
scene Of Dantes poem. But the reality was
thousand times worse than any mock representa-
Tpe tranquil and ignorant spectator in the gal
lery must have been aroused from his calm leth-
argy OF contemplation at this
BABYLoNIAN SCENE
and have wondered what 1t all meant. There
were the well-dressed, gorgeously -jewelled forms
OF the financial men rushing abont shaking their
arms wildly as they made some Offer some bid,
and shrieking SO that human voice seemed to be
inadequate to their desires. But the extent OF the
results which were operated IN these lew moments
which followed the announcement OF the pane
could give some better idea OF what all this did
mean than the mere witnessing OF IL. The fact
was that, within the space OF half an hour, the
values OF the country had dropped about twenty
ys millions hanrn h OF collars from what they
of the strong stocks, 1t was thought by
many fell about eight per cent-that is to say
from 327S to rs. The biggest TAI was that OF West
erh Union, always one OF the speculative stocks
which fel! from 81 to 10. Then followed lot OF
Others. New York Central 10l to 9s Lake Shore
from 81 to ss1s Rock Island IRON 1919 TO 1o4,s
Wabash 6S to 81, ohio 43ai to Al, and others too
numerous to mention. There was hardly a stock
IN the street that did not suffer more less from
the panic which took hold OF the Stock Exchange
with such insane Jury. During the remainder OF
the afternoon as Will be seen elsewhere, the mar
ket fucuated more or less, and closed with Slight
rally, mainly caused by the fact that the money
market eased up But for all the dablinp in stocks
that was done after the panic the feeling among
all was one of intense insecurity and uncertainty,
and there is little doubt but that the market viii
open with feverlsh tendency to-day
THE CAUSE OF THE PANIC.
:, II may seem very strange to the readers of the
HERALD who do not frequent Wall street that the
failure OF one house IN the street should be the
OF 50 much trouble as took place in the Stock Elk.
change But there was more than this IN it. There
was combination OF influences at work. Those
who had been short of stocks Aave been endeavor-
ing to push prices down. Money has been tight,
and stocks have been hard to carry. When there
fore, well known, solid house like that Of Barton
d Alien failed, and It was known they had
an Immense amount OF stocks hand, the
tendency was to send things down, but when
their stocks came flooding into the market OF course
stocks went down with rush, ana all those who
We're 'iong' OF stocks suffered Barton a. Allen in
two words had carried more stocks than they were
able and had to knock under.
THE ROMANCE OF THE FAILURE.
: But what added tlnge OF romance to the failure
OF this house Is that 1t was generally supposed to
be ope OF the brokerage firms OF Cornelius Wander
pilt. MI. Barton was nephew, ana Mr.. Allen a
grandson Oh the OLD Commodore, and the ties OF
family had always been supposed so strong be-
tween the Old gentlemen ana his relatives that he
would on no account allow any OF them to 90 to the
wall. But In THIS case the result was not as had
been expected. The Commodore did allow his rela-
tives TO go to the wall, and several explanations
were given OF his course in the matter.
WHY COMMODORE VANDERBILT ACTED AS HE DID.
must be understood that, as the HERALD tells
these matters they only rumors OF the street.
put bear "a strong tinge OF probability. 1t is well
known that several months ago Commodore Van
derbilt quarrelled with his sonn-law, Mr.. Horace
=. Clark. The reason OF this was stated TO be that
the Conmodore objected To his relatives specu.
lating III western stocks particularly when they
were fancy stocks. Mr. Clark is said to have an
aHecUon LOT these western stocks, and dissolved
connection with the "uld man. The Younger
members OF the family sided with Mr. Clark and
abandoned the Commodore But the day came
when the Younger shoot needed the nourishment
OF the parent oak, aud the oak refused it.
10 was also said that when Barton Allen went
into the business they had promised 10 indulge in
no speculation on their own account, hut solely TO
90 q commission business. on this condition ONLY
qua the Commodore consent 10 give the Young firm
some OF his trade so IL went ON for some time
until the mania for speculation seized upon the
yodng men doth OF them were well liked In the
street,, and they went 10 con their own hookr and
made the commission business n size issue Then
the day came when failure seemed ineyitabe. and
they went to the Commodore. But tney had gone
outside Oh his orders and he threw them over. As
this story came from excellent authority il seems a
very PROBABLE one. But the
MOST EXTRAORDINARY OF ALL THE STORIES
was that winch obtained q great deal OF credence
from many brokers. As Jay Goulds name l. ALWAYS