River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1883-05-17
BLACK rsIDAY SECRETS.
Some Inside History Of the Panic or
1873 Never Before Revealed.

Some Inside History Of the Panic Of
1873 Never Before Revealed.
From the New York Star.
Old and experienced Wall street OPP
orators who have breasted successive
panies for over quarter ola century
claim that the trne inwardness OF the
renowned and terribly disastrous BLACK
Friday has never been told, and that in
stead Of Jay Gould being the only actor
in that dreadful crisis who escaped with
profit. lie lost many millions Of dollars
and nearly went TO the WALL The crops
of the country in 1869, so the story runs,
were unusually abundant-far in excess
of home demands--and there was an al
most universal desire that the admins
tration should devise some means to
stimulate exports. Letters by the score
poured into Washington by each mail
addressed TO President Grant and Sec.
Boutwell,, from leading bankers
and prominent merchants urging the
treasury department t9abstaln from sell
ing gold, so that the premium might adj
vance to figure that would send our
products out Of the country. 1t was ar
gued with great force that it was best to
export our cheapest articles IN place OF
coin, which at its artificially depressed
price was the cheapest, and the only
one indispensable, To part with. The
government finally decided to suspend
gold sales for an indefinite period. Jay
Gould and associates becoming aDprised
of this decision at once began buying
large amounts of gold, and succeeded
i'm accommodating q vast quantity, cover
ing a period Of three months. at 195 to
I40. During this time Jim Fisk was OPP
posed to the movement, regarding
1t as too yenturesome, and he had no
connection with the Gould syndicate,
which consisted Of Jay Gould, Ar
thur Kimber, representing Stern
Brothers, of London, and w. s. Wood
ward. Of the Rock Island notoriety. The
latter two. however, sold out their in-
terest to Gould, who ran his big deal
alone, through his firm of Smith, Gould
& Martin, in their office onBroadstreet,
near Wall, and where t.le Drexel build
ing now stands. Kimber, after going out
of the syndicate, sold largely short, and
was forced to cover at a loss of over 81, :
600 600 to the London firm whom he rep
pesented. kimber was then recalled,
and the London firm closed up the New
York branch.
Black Friday, it is now asserted, was
really caused by the erratlc conduct of
James Fisk who joined the movement
on the day before the grand crash, and
grew wild with enthusiasm on the SUBJ
kct of high gold He commenced to
buy large blocks of gold on the fatal Fri
day through his brokers, William Bel
den and Albert Speyer, running the
price MP very rapidly from 40,
at which it opened TO l60 during an ex-
eitement in the gold-room never be fore
equaled in any New York exchange OF
In Wall street Conservative bankers
and brokers became alarmed. panic
seized the masses, and Il general feeling
of alarm existed. At this iunctufe Hen
rs CleWs sent Il telegram to Secretary
Boutwell, aud President Grant repre-
senting fully the actual condition of at-
fairs, and urging the sale of gold with
ont delay. He also prevailed upon Gen.
eral Butteriield. the New York Sub
Treasurer, and Moses II. Grinnell, Col
lector of the port, to send similar dis
patches. Timely action was at once TAX
en- in Washington by an order to sell
5000, 600 in gold. The moral effect OF
this act was to strike terror to the hold
ers of gold, and a general rush was made
to sell out. The premium was driven
down from 100 in less than two hours
to 1872. The down grade produced
an excitement equal to the twist
earlier in the day. Albert
Speyer, who helda verbal carte blanche
order from Jim Fisk to buy in million
lots all the GOLD lie could secure at 100
kept on buying millions upon millions al
this figure, and at the same time in 9TH
er sections on the opposite side of the
gold room sales were teing freely made
in moderates amounts at 40, l45, and
$50; and even when l35 YVES reached
Speyer still kept on bidding l6O for one
million dollars ut time, making one o
the widest and most ludicrous specta-
Giles ever witnessed among sensible bus
mess men.
Fisk afterward repudiated the con
tract made for his account by Speyer, by
simply denying that he gave either
SpeYer or Belden suci orders, and, as
they we're not in writing, they could no
be proven. The result OF this trick wa,
that both brokers failed, throwing i'm
mense losses upon II large number oil
other dealers A noted firm sold Spt yei
some of the million-dollar lots, wh2 4
they bought back ut lao, Geing satisfied
with the profit of 20 per cent. WhGI
they finished buying, the price instant
ly broke to 1872, and Speyer's future alst
carried this firm down, rs well as hal
the members Of the goldroom.
1t was ii dark season i'll Wall street,
remarked Mr.. Ciew, as he finished the
above recital, "and very many of th'
wrecks on that awful Black Friday wer'
never raised. jay Gould lost, it is said
over 81, 000,000 in hat gold venture, ant
for a long time was believed 20 he seri
ously crippled financially. lie recovered
however, and was one OF a very few wh'
is in position now 10 smile over the
dreadful doings of that terrible crisis