Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-02-28


at the opening, butas the market grew stronger
under the impulse of treasury redemptions,
what promised to be a memorable financial
panic proved to be happily averted, at least fol-
the present. At the close of business yesterday
the street, in the language of a broker, was
on end, and the wild rumors circulated fore
BODIED stirring and exciting scenes to-day,
Long before the doors of the stock exchange
were opened for business, Wall street in the
vicinity of the stock exchange was filled with
knots of anxious brokers, who discussed the
situation in an excited manner. Men from up
town who rarely visited the lower regions of
Wall street were there. Business men who
had not speculated III stocks Tor years were
there. Their customers were out in force.
At the opening Of the market faces which be-
fore had been gloomy were wreathed in smiles.
Prices were above the closing figures.
Whether the buoyant condition was due
to the secretary'5 order of yester-
day was unknown. 1t was doubtless
due in part to that announcement, but the
moral effect of the knowledge that did an eX-
igency arise the secretary had S16,000,000 of
reserves to exhaust in payment for additional
IS and 6s, and that in addition he would pur-
chase $25, 000 900 of called bonds ,as announced,
went long way further. All evidences of a
panlcky condition in stocks and the money
market had passed away by 2 o'clock, and
there was good deal of mourning among the
lambs whose margins had been wiped out by
the terrible break in stocks yesterday after
noon, and large number of sorrowful-look-
ing curbstone operators were to be seen in
New street and Exchange Place.
The sharp recovery in prices did
no good to those who were
cleaned out and they sadly moralized on
what might have been. The enormous sales
yesterday at the panic prices show that some
of the large operators on the bear side of the
market must have realized fortunes in the
turn to-day. The decline was SO rapid and
tempestuous that it is not probable it was
discounted to any extent, notwithstanding a
report that bear cliQues with q large short
interest had started the buck with the object
of squeezing well-known large operators like
Jay Gould, who were known to have long
lines of stocks on hand. The money that was
made in The street within the last twenty four
hours was made in the rapid recoveries.
THE EVENING POSTS REVIEW.
The Post says: ''Where the rates for call
loans to stock brokers were yesterday one
half to one per cent. plus six per cent. per an
mum, they began this morning at one-half Of
one per cent plus six per cent. and as we
write are down to plain six per cent on Uni
ted States bonds and six per cent. plus one
sixteenth on good stock. Collateral time
loans are nominal. The weekly statement of
the New York banks is, of course unfavorable,
but much less so than was expected. There
have thus far to-day been no deposits at the
sub-treasury by national banks to give
up note circulation. The amount collected on
deposits made yesterday of checks is S679, 800.
1t looks as if the deposits of money for this
purpose had ceased. The stringency in the
money markets. drawing money here not only
from London, but considerable amounts are
cities like Boston and Philadelphia. The indi-
cations are now that the crisis has passed, so
far as the money market is concerned. The
United States treasury was a debtor at the
clearing house this morning in the sum of
So, 1872 goo, which means that the sub-treasury
on Yesterdays transactions paid out this sum
in excess of what it took in. More
over Secretary Sherman authorized
the assistant treasurer TO pay the
accrued interest for any of the 25,000,000
bonds included in the 101st call. Until to day
money for these bonds could only be obtained
by sending them to Washington and submit
ting to the tedious delay which that Journey
involves. To-day's order of the secretary,
therefore, puts the treasury in the market as
a buyer at par and accrued interest of $780,
000,0G0 bonds, of which S10,000,000 are I'M
called and S25, 600, 900 called. 1t may be these
bonds will come i'll slow by their being scat
tered widely, but within comparatively short
time it is reasonable TO suppose the
treasury will have paid out as
much money as the banks have paid
into the treasury since the Senate passed the
refunding bill. The chances are now SAID to
be against the enactment of the funding bill.
If the bill should for any reason fail to become
a law then the banks which have given up
note circulation will probably Immediately
take it out again and affairs return to the con-
dition that existed before the Congressional
rates on banks was begun. The treasury
would then continue to invert surplus re-
venues in bonds, and the treasury influence,
therefore, would be in favor of easy money.
II the bill becomes law then the banks can
no longer, from the day of it's enactment, give
up note circulation, and contraction resulting
therefrom would be impossible. In addi-
ton, the treasury would have a right to invest
s., 600 600 of its coin balance in maturing
and per cent. bonds. This again would
make the loan market easy. The collapse of
speculation at the stock exchange during the
week must have reduced prices, SO that it
takes probably 500, 900 less to carry ex-
change security than it did week ago. Look
ing the whole situation over the conclusion is
therefore forced that within few days we
shall have an easier money market than we
would have if Congress had not raided the
banks and broken down the stock exchange
markets. The blow given to stock exchange
speculation during the week must be regarded
by all engaged in legitimate non-speculative
business as wholesome in its influence, for the
reason that it will have more money and credit
for those outside the circle of pure speculation.
About noon a steadier tone characterized the
market, and it soon became strong, and is so
now. Among the buyers are outsiders of
means, who always come down town after
such break as that of yesterday and buy such
stocks rs they can pay for and take them away.
The weaker class of stock broker who rather
than pay the enormous rates for money
current yesterday, threw over their customers
stocks are also among the buyers. Large
amounts of stocks have also been bought for
London account. If they are not resold here
at the advance, but are exported, gold to con-
siderable extent will be returned forthwith. :"
AN OPERATORS TALK.
Said one of the largest operators this after
noon: Confidence hasn't been shaken. Peo-
pie haven't sold out because they
wanted TO do so, but because
they have been compelled, against their wishes.
They have been unable to carry the stock
and have thrown it over without regard to
value. There is a dispatch from Boston, say
ing "The banks are full of customers anxious
to buy stocks, but the banks will not buy on
margins As soon as the banks will take
orders, stocks will be purchased with rush
that shows how they feel in Boston and there
is much the same feeling here. Of course we
may have temporary reaction Monday, but
fhara &c fQplIn haf