Daily globe., 1881-02-26
4 MEMORABLE DAY.

will be a memorable day in the his
DRY of Wall street The lull that follow
ed Sherman's announcement to purchase
bonds, was followed by fall that
bordered on a panic. All through the after
noon stocks fell and the excitement was in
tense. On Wall and Broad streets small groups
eyeitedly were discussing the situation and on
almost every face there was an anxious ex-
preston and many hand that took the tape
trembled with suppressed excitement. The
conflict between the banks ard the government
seems to favor the former, for accordingly as
the banks received their checks for the bonds
that they sold to the government, justso soon
were they deposited with the sub-treasury to
retire their circulation. At 2:30 P. NJ the stu.
alton was decidedly critical. Every moment
the announcement that some one or some
house had succumbed was expected, and sus-
pense, doubt and uncertainty aggravated mat.
ters beyond description. Fortunately, there
was not single failure; at any rate, there was
no publication of one Meantime the market
continued to fall and the minutes to the close
of the day were anxiously counted. Money
was at l per cent. bonus over last night. The
banks refused all loans and were calling in
their loans as rapidly as human industry could.
Some of the best men of the street saw, for
the first time, their personal application for
loans refused
EXPLANATION OF THE SITUATION.
The most concise explanation of the
situation, according to the Commercial Ad-
ucrtiSer, was expressed by George B. Saterlee,
president of the money exchange, in this
wise: 1t is a question in my mind whether
a clique of bankers are to dictate to Congress
and the country what is the best interest of
the country, and to manipulate the money
market in order to depress the stock market"
The Graphic says: There is excellent
authority for the statement that the stringency
has been secretly assisted by large operators
on the bear side who are still bitterly fighting
Gould. Mr.. Gould takes the situation very
complacently, and quietly assures his friends
if they hold on to their long stocks for a
fortnight they will doubtless secure profits of
10 to Is per cent. above present prices. The
bulls think that considering excessive lower
ing rates the stock market has been very well
sustained during the past few days, and some
bears admit this, but that easier funds must
follow soon, is the verdict of ALL or crash
in the street would be inevitable.
LYING DOWN ON THE BANKS.
A prominent house yesterday paid as high as
IL per cent. premium for loan of $4,000
till to-day, and numbers of brokerage con-
counts at ALL II is said prominent house,
unable to borrow funds on good security, was
obliged to to take $4,000 of securities to its
banks. This is what is called lying down on
the banks, and is seldom done. Sound bus
ness houses generally prefer to sell their Sc
curities for whatever they will bring Some
of the leading Wall street brokers think it will
lie in the power of the treasury department to
allay the present money distress by announc-
ing the payment of $25,000,000 of called
bonds without rebate and it is hoped Sherman
will do this at once.
Assistant Treasurer Tillhouse said the sec
retary was fully resolved to afford relief if he
has the means, and the present administration
is determined not to go out of Office with a
panic in Wall street. ~.
RAPID DECLINE IN STOCKS.
From the Express: Early in the day the
market was depressed, and there was a
decline from the closiug quotations of yester
day. The fall in prices ranged from 1 to ~
per cent. Shortly before noon it was an
nounced that the secretary of the treasury had
instructed the assistant treasurer mere to pur-
chase at par and accrued interest any of the un-
called5 and per cent. bonds of 1881. This had
a buoyant effect for short time, and prices re-
covered frcm 1 to ~ per cent. fl ON the lowest
point of the morning. After this there was a
reaction and rallies and the market was in a
feyerish condition, being influenced by the
changing course of money and various reports
from the sub treasury IN regard to the amount
of ponds being turned in for redemption and
the amount of gold and legal tenders being
deposited to retire national bank circulation.
After the second board there was a renewed
pressure to sell, which carried some stocks
down still lower Transactions on the stock
- L.,
simply enormous and the widest excitement
prevailed. Prices were on declined scale
throughout the downward movement. Of the
money market itself this may be said. 1t was
stringent again to-day, with frequent fuc-
tuations in rates for call loans. At the open
ing there was great rush to borrow money
so rapid as to amount almost to the condition
of panic. Fluctuations in many instances
were from 1 to 1H per cent, and even per
cent. The decline for the day ranged from l
to Il q per cent. The decline was checked a
few minutes before the close, and in some cases
there was slight recovery. There was a
large business done on the stock exchange in
the way of moving stocks, and the differences
between cash and regular ranged from ID to
4 per cent, mostly at x to per cent. I'M
called IS and 6 per cent. bonds of 1881 being at
par and accrued interest at dates, some holders
began to turn them in, and many brokers scour-
ed the street and bought what bonds they could
get at once at something above the secretarys
price. The loss which they apparently suf-
fered by this transaction represented the bonus
paid for money, which in most cases was less
than the commission, in addition to the legal
interest charged in the market; but they served
two purposes, viz: First, they got what money
they wanted; and, second, they turned loose
from the treasury money which heretofore was
practically locked up. Notwithstanding this
apparent relief money worked closer
again from 4 per cent. to IL per cent. per
diem, with the lowest transactions at z per
diem. The effect of this condition of the
money market was felt outside of Wall street.
DIFFICULTY OF AFFECTING LOANS.
The Commercial says: Wall street has not
quite shaken off the excitement which settled
on it this morning. AT this writing, P. NJ,
the stock market is feverish and irregular.
The banks are still calling in their loans and it
is next to impossible to make loan with a
No. security. One instance has come to our
notice where one house made an effort to effect
a loan with unquestioned collateral at two
different banks but without success. The
fact that 100000 has been paid into the treas
ury today to retire circulation, does not add
strength TO the condition of things. Consid-
cradle feeling exists against the promoters of
the per cent. bill In not pushing it throu Oh in
order to check retiring of legal tenders, fol
Just so soon as the President signs the bill the
hou Of money infn the treasury will ceasp