Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1881-03-04

ed in the April and May sessions of the
United States courts against the violators of
the election laws are to be continued, and
these continuances, presume, will result in
the dropping of the cases on both sides. l
have no doubt that an object in the whole
sale arrest of the colored men was to force
the compromise that has just been effected.
Tho Wall Street Panic.
The gigantic speculation that has for some
months past been in progress at the New
York Stock Exchange had break, Friday,
in the shape of something which lacked little
of being veritable panic and was, indeed,
financial furry the like of which Wall
street has not seen since the gloomy days
of 1873. The continued deposit of cash in
the Sub-Treasury by the National banks
against intended withdrawal of circulation,
in anticipation OF the passage of the new
Funding bill, caused such stringency in
money during the early morning hours
that as high as II per cent per day and 6
per cent per annum was bid for loans. Under
the consequent pressure to sell stocks prices
tumbled from to 14i per cent, and foreign
exchange became demoralized, bringing the
export business TO a complete stand still. To
ease the market Secretary sherman ordered
purchased for the Sinking Fund ten mil
lions of and per cent bonds. Up to
the close of business the Sub Treasury pur-
chased So, 6S1, 300 of these bonds, but owing
TO continued deposits by City banks on ac-
count of their country correspondents, agggre
eating within 5000, 900 of that sum, the actual
relief was very slight. The scene during the
whole afternoon was one of wild excitement.
| There was a genuine panic, during which
the fluctuations between sales were in many
per cent, and money at Il per diem and in
tcrcst was in demand the highest rate since
Black Friday The total recorded sales for
the day exceeded 700, 600 shares, and the ac-
tual transactions probably reached 500 900 TO
| 800, 900, as the Exchausc reporters do not
pretend to keep an accurate record in cases
where the dealings follow each other so
fast.
There were no failures of brokers, the out
side specializing public being the victim and
its losses being enormous. The Herald
says: There were anxious and frightened
faces by the score at the Stock Exchange
and nobody pretended to know what next to
expect. Every broker was loaded with or
ders to sell and the scene on the floor of the
Exchange was one Of indescribable coniuS-
ion The stnngcncy of money compelled
Spectators To unload. and wiped out the mar
gins of hundreds of operators. As block
| after block was thrown on the market stocks
fell lower and lower, while crowds thronsed
about the recording instruments in brokers
offices, at Delmonico's and other resorts,
holding the tape with trembling hami1, each
| tick of the indicator sounding knell To the
hopes and the fortunes of dozens Of inveS-
tors, as every stock on the list kept on 'ils
downward move. Brokers ran from bank
to bank and from one money lender TO an
other vaiuly seeking to borrow. Despair
was written in many faces, and the usual
laughing crowds around the lunch counters
| al l)timonicoS : were noi III tiitli aCtuStoiiSu
mood"
On Saturday "A better feeling prevailed.
The rates for money dropped, the prices OF
stocks advanced and the whole list was very
active. The feeling was, however, that there
was still trouble ahead, unless the market
was relieved, though it was anticipated that
the action Of Secretary Sherman would have
that effect.
The primary cause of the panic is evident
ly the course the National banks adopted.
By withdrawing Il large amount of legal
tenders from circulation they created IL strin-
| gency in the money market. This strin-
gency, however, WAS so slight that in former
times it would hardly have been noticed;
but so vast a sum of money has been locked
up in stock speculations that it was sufficient
to overturn the market and the result was
decline in prices OF an aggregate amount of
hundreds of millions of dollars and Il demand
for money so great that even interest at the
unparalleled rate of nearly or quite five hun
dred per cent per annum could hardly pro
cure it. Were the results of such financial
furry confined to the gamblers OF Wall street
and th,. country s.lamhs" who seek short
-, A.. a..,.,-,, c,lt o,d,r.
'"' N,
1t with entire equan'mity but the uirh-
Guilty is that the scmi-panic has tendency
to unset,lc all values, all over the country,
and every branch of trade ami commerce Is
affected The banks therefore, have "A great
r..s,,rs;,,il;,v TO shoulder. and public opin
,,, :, .,r,,,,,,. oJ
''n' rs '''''' '''' II '"'
verse tn them. Inc HtFdd says
The national banks are trying dangerous
| experiment. II il not wise for them 10 show
what \ dcspotic and ruinous power they ar
capable of cXcrling on the business of the
country. They cannot be unaware of the
wide ,prcad hostility To- them which has long
existed in barge sections of the country and
| which has recently been relaxed only by the
success of Secretary Shcrmnn's policy. The
old United States Bank WIS ovcrtlrnwn and