Daily Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1876-1884, 1881-03-01

huouCI0i phuiC pIOVeu 70 Do DhpplIy
averted, at least for the present.
At the close of business, vest erday
the street, In the language of q
broker, was ION end" and the
many wild rumors circulated fore
BODIED stirring and exciting scenes
to-day. Long before the doors OF
the Stock Exchange were opened
for business, this morning, New
and Wall streets, In the vicinity OF
the Exchange, we're filled with
knots Of anxious brokers, who dis.
cussed the situation in an ex-
cited manner. Men from up. town,
who rarely visit the lower regions,
were there; business men, who
had not specuiated in stocks, hut
were in want of money, were there;
customers were out In force at the
opening Of the mark ct; faces which
before had been gloomy were
wreathed in smiles, for prices were
above the closing figures. Whsth-
or the bnoyant condition was due
to the Secretary's order Of ysster.
day was unknown. It was doubtless
due In pait to that announcement,
but the moral effect Of the knowl.
edge that II the exigency did ariae,
Secretary Sherman had 5 l6, 900. 900
Of reserves to exhaust in payment
for additional IS and g., and that
In addition, he would purchase
$25, O0O, 900 worth of called bonds,
as announced, went u long wsy
further. All evidences of a panicky
condition IN the stock and money
markets had passed away by 2
O'Clock.
wrath .AsSiuss shs eo..cy 81 the
National Backs.
NEW YORK, Feb. 25th.-The
Worlds editorial says: The trade
and general business ofthe country
have been subjected to strain dur.
ing the past week more severe than
any which has been put on them
since 1878. This deplorable state
of affairs was brought about by the
selfish conspiracy of certain mum.
Der of national banks, bent on op.
posing the national will In the mat.
ter of establishing lower national
rate of interest by such duly chos-
en- representatives Of the people as
the United States have thought
proper to adopt. Our Government
and people who maintain IL have
submitted to great sacrifices to
afford all reasonable support to the
national banks, but the banks have
not kept within reasonable limits
their demand for compensation for
euch fnanc ial services as thay have
been able to render the country. A
few of these banks have not hes.
itated to invite the destruction of
the whole system and provoke pop.
ular anger by pursuing a course
which must inevitably force on the
American citizens the question
whether leg islative and executive
officers chosen to represent the peo-
pie or o few bank officers are to ad.
minister the financial destinies OF
this country.
A Tribune reporter gives the fol-
lowing Incident of the day: An
excited broker hurried into one of
the bank psrlors yesterday, and,
shaking his fist at the President,
said vehementIy: "Your national
banks shall suffer for this" Argu.
ment and explanation were wasted
In the attempt to convince him that
the national banks were not the
source of the i'll which hes wis
suffering under.
The 1imeS's editorial says: The
events of yesterday on Wall street
show plainly that the speculative
spirit has gained very rapidly
within the past twelve months,
and the great advances in prices of
stocks and bonds have been
based m0Ie OH ardent ex.
pectations, fostered by that
spirit, than on sober calcula.
ton. When prices fall 5, 10 and Is
per cent. In few hOurs, or even in
. few moments, and when men pay
atthe rate OF Az per cent. per an
mum for the use Of money, it is clear
that operations which involve such
consequences are not legitimate op.
erations of rational finance, but
som ething which Is in its essence
gambling. Whatever may be the
upshot Of tho various movements
now going on, solid securities,
though they may come out of the
turmoil reduced In price, will SIM
ply be thrown away II bona fide
holders consent to submit to any
such fall ss was yesterday produce
ed. On the other hand, the pecul-
lar relations OF the banks to the
Wall.street market, aud the fact
that they have taken the initia-
tive In the course which produced
what was for time Q panic, do,
unfortunately, cOmpli0ate the gen.
eral business interests In transac-
lions of the Stock Exchange. The
prompt interposltion Of the Treae.
ury Department yesterday, and the
feeling that still more effective
steps may be taken, would un.
doubtedly check further disturb.
ance, If 1t were not that IL 10 the
interested, settled purpose OF d sec.
ton of operators, more or less iDflu.
entail, to continue and aggravate
the trouble that has taken place.
The principle upon which the
Carlisle amendment, now 80 Sc.
versly condemned, rests lie, thai
the banks should redeem their OWE
notes, and the Government should
not give them the privilege of cur.
failing their circulation by the
million at a moments notice. This
10 not unwise In principle, but thu
contrary; but 1t would have beer
at once more fair, more prudent on
the part OF Congress to have givel
q reasonable time Ia which the
banks could adapt themselves to
the changes Involved in withdraw.
ing a privilege OF such import
ance and value, aud 1t would hav,
been better il the withdrawal o
this privilege had been accom-
panied by reason OF excessive tax
alton, In such way as to proven
sudden redemption of circulation
by the banks and promote the cue
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