Savannah morning news. [volume] (Savannah) 1868-1887, 1881-02-26

New YORK, February 25.-The Post, in fits
financial article to day. says: "During the
first hour and a half of business the Stock
Exchange was the scene Of wild excitement
and everything connected Herewith was at
the highest tension. Excited stock brokers
bid IL per cent. for money for one days
use, in addition to per cent. per annum.
Prices of leading stocks fell from l to
81 per cent, rallied Il to per cent. again,
declined Q to 8 per cent, and win The fre-
quent fluctuations the market was extreme
ly feverish. This state of things continued
until about 11:30 O'Clock, when the news
again came that the Treasury had given
relief. On inquiry at the sub h-Treasury 1t
was learned that Mr.. Sherman had at last
done something practicable, and then, as
yesterday, there was sudden change in
the whole situation, and where there had
been anxiety to sell there was an eagerness
to buy. The latter, however, was somewhat
modified by the experience of yesterday,
but on examination, it is found that the
Treasury has really now offered
something which is likely to bring
immediate relief, and 1t will be
strange if this does not turn the tide which
was running so strongly towards a general
panic. Since the Treasury began, little
before IL O'Clock, to pay out money for un-
called and per cent. bonds, the market
is less stringent, and the rate is per cent.
plus q. Already, in less than an hour,
the Treasury has paid out over
$1,750,C00 lawful money for the 5 and
= per cent. bonds presented. 1t is reported
that a well known banking house has $5,-
600, 600 Of those bonds, which will be put in
at once. AS soon as the money for the $10,-
900, ,0G0 bonds comes out, a return to the
normal condition of the money market
is to be expected"
OPINION DIVIDED.
WASHINGTON, February 25.-The question
whether the legal tenders deposited by the
banks to secure their circulation can be
used in payment for bonds for the sinking
fund was the subject of discussion here to
day. Those who would answer the question
In the negative assert that the legal tenders
so deposited are set apart for the redeInp-
tion of the notes of the national banks, and
are, therefore, unavailable for the purpose
IN question.
Secretary Sherman declined to-day to
make any further statement at present with
regard to bis intentions as connected with
the money market, but said the public
would be promptly advised of any step
which would be taken.
The Secretary received advices from New
| York previous to the issue of his order to
Assistant Treasurer Hillhouse, that the
financial situation was very threatening, and
that unless large purchase Of bonds were
authorized, the result would probably be
disastrous.
THE SITUATION DISCUSSED IN THE CABINET.
The present threatening financial situa
tion was considered in the Cabinet to Gay,
and Mr.. Sherman submitted various state
ments, showing the condition Of the Treasu-
ry and the measures which had been taken
to relieve the money market. There was
no decisive action, however, as to the future
movement Of the government in that direc-
tion.
LARGE PURCHASE OF BONDS ORDERED.
Secretary Sherman to day authorized the
| Assistant Treasurer Of New York to pur-
chase for the sinking fund or per cent.
uncalled bonds of 1881, to an amount not
exceeding ten million dollars, paying par
and interest accrued to date OF payment.
PILING UP THE LEGAL TENDERS.
Twenty-four national banks to day made
deposits Of legal tenders aggregating $2,
968 900, for the purpose of retiring their
circulation. The total deposits from tho
national banks for this purpose up to date
amount to $11, ,116, ,199.
ACTION ON THE FUNDING BILL.
The meeting OF the Ways and Means
Committee has been postponed until to-
morrow, when special session will be held
to decide upon action with regard to the
funding bill.