Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1893-05-05
IN WALLSTREET
Industrial Shares Take an Unexpected
Tumble.
THE SHERMAN LAW IS ITO BLAME.
Its Operations Have Attracted
Attention to Gold, and Now
Everybody Wants 1t to the Ex-
clusion Of American Securities
and Other Forms Of Money
Henry Clews Says the Panic
Will be Local in It's Character.

Henry ClewS says Jne FdnlC
Will be Local in Its Character.
New YORK, May 4.-Shortly after the
opening, the stock market was thrown
into a condition of panic by the an
nouncement of the failures OF Henry
Allen & Co. and B. l.. Smythe d 20.
The liouidations were enormous, es-
pecially in such stocks as the firms were
supposed TO oe interested. Great ex-
citement prevailed as block after block
came upon the market.
As compared with the final quotations
of yesterday the industrials showed the
greatest declines, National Cordage
dropping 1S points, Sugar, Rubber ana
Cotton Seed Oil following with smaller
losses. A reaction before ii O'CLOCK
brought prices up few points.
There was good deal OF suppressed
excitement at the Stock Exchange az
ter IL a. m. owing TO continued rumors
affecting certain Wall street firms. The
market continued feverish with titful
fluctuations in the leading shares. Some
stocks were comparatively steady, while
others sustained further sharp declines
At noon the market was trmer In
tone, and more confident feeling pre-
vailed. :,
At 1915 the chairman's gavel called
the excited brokers around his desk.
He announced the failure OF Henry
Allen & Co., of No. 61 New street. The
firm was formed In May, 1854,
and did a very large business,
both in grain and stocks. 1t
was verv heavily short OF sugar
during the big February rise In that
stock. 1t is supposed to have had re-
Gently very large interest in Cordage.
The house was Of the gilt-edged variety.
The customers were noted for their good
clothes and high living. The amount
OF liabilities cannot be definitely stated
until later in the day. The manager
said the assignment was brought ABOUT
by the failure of q number OF their Gus
toners to respond when called upon for
margin.
Schuyler w. Allen, who has been
member of the Stock Exchange since
1881, announced at II o'clock that he
was unable to meet his contracts. Yes
terday he turned bull and bought heav-
ily of Cordage. When that stock went
down this morning he called upon Gus
toners for whom he purchased Cordage
and their failure to respond resulted In
his going under.
The condition of affairs in Wall street
was aggravated during the last few
hours by the calling In Of loans by lead
ing trust companies. The shifting OF
loans incidental to the tremendous
shrinkage in values forces these institu-
tions to adopt extreme measures.
Henry Clews voiced the feelings OF
the more conservative Wall street men
when he said at noon: There are
times that big mems souls, as we'll as
their pockets, are tried. II the latter
are well filed, however, together with
clear head, opportunities are aHoroed
for quick movements in the market.
1t would be good policy to buy good
stocks hereafter, on the pronounced
breaks, for fair profits, which
succeeding rallies are sure to
bring. 1t must be remembered that
prices are now fully as low on an aver
age as those in the Barring panic OF 1890.
That was a worlds panic, while this Is
but a local one, at any rate confined
within the boundaries OF our own coun-
try. am quite of the opinion that to-
dav will eradicate the weak spots and
make a stronger bottom for good stocks
than they have had for some time past.
Squalls come periodically, and after we
get over this one we will be exempt
from another for several years to come.
This IS the experience of the past, and
the present upheaval will not be unlike
former ones in that respect"
VIM. Shearer, manager OF the New
York Clearing House, when asked as to
the condition of the banks this after
noon, said:
1--WE have seen absolutely no effect OF
the street here. The banks are in ex-
cellent shape. In fact, at o'clock to-
day, the balances were unusually large
and there was a marked absence OF any
thing but normal and heathful condi-
tiuns. The bank reserves are l2.000,-
600 in excess of the 25 per cent. legal
limit"
at was reported that the clearing
house had offered to issue loan certifi-
Gates to'the banks this morning. Is
there any truth in that?"
absolutely none. Such a thing has
not even been suggested"
"What do you consider the cause for
the epresentdepression In the market?'
II regard it as the effect OF the So
called Sherman bill with the accompa-
nying idea that the United States
Treasury cannot pay out gold below the
one hundred million reserve. These
have attracted the people to gold. This
has been particularly true OF foreign
holders of American securities who
have bees in need Of money. They have
sold their stocks and turned the tide OF
trade against US. 1t is only the natu-
raj tendency from time TO time OF liq-
uidation among investors"
The statement given out by Henry
Allen & Co. is as follows: All the
transactions of the house have been for
the account OF customers. The firm
has been strictly doing q commission
business. Every account had trusted
customer back OF it.
In the bad breaks in market values
yesterday the margins Of some i'm
portant customers were exhausted,
but as these customers were not only
reputed to be solvent, but very rich
men, the firm took care OF their &C.
counts out of its own resources on
pledges from these customers that about
$500, 900 in cash would be paid back be-
fore 1915 o'clock this morning.
This promise was not kept, and the
firm had no other resource but 10 an