The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1881-02-26

morning, After this there were reactions
and rallies and the market was in feverisb
condition, being Influenced by the chang
ing course of the money and various re-
ports from the Sub treasury 10 regard to
amount of gold and legal tenders being de-
posted to retire national bank circulation.
After the second board there was a re-
newed pressure to sell. which carried
some stocks down still lower. The
transactions on the Stock Exchange
during the last hour of business were
simrIy enormous and the widest excite
ment prevailed. Prices were on declin-
ing scale throughout and the downward
movement so rapid as to amount almost to
a condition of a panic, The fluctuations
between sales in many instances were to
II aad even per cent The decline for
the day ranged from | to l44 per cent,
The decline was checked fer few minutes
before the close, and in some cases there
was slight recovery. There was large
business done on the stock exchange In
the way OF mining stock. and the differ
enee between casn and regular ranged
from to 1t per cant. mostly at to
per cent.
OF the money market itself this may be
said: It was stringent again to-day with
frequent fluctuations in rates for call
loans. At the opening there was a great
wish to borrow money at ! per cent per
diem, and interest was paid with reports
that even as high a. u per cent had been
paid privately. This was followed by a
decline to ] per cent per diem. which
was the ruling rate for length
OF time. just previous to mid
dsy the following telegram was received
by Gen, Hillhouse. Assistant Treasurer:
WASHINGTON, Feb. 20,-You are au
thorized to purchase for tho sinking fund
not exceeding $40. 0OO 600. 5 or per cent
uncaled bonds of 81 at par and accruiug
interest to date of payment.
JOHN SHERMAN, Secy.
This caused some improvement lH the
situation and was counted upon to bring
gradual relief although the opinion was
freely expressed that the Secretary should
have asked for proposals and bought bonds
in the usual way instead of fixing an
arbitrary price.
The Post says respecting the weekly
bank statement tomorrow: 1t must be
an unfavorable one and very likely it
will show that the banks are below the
legal limit OF 25 per cant required by
the national bank act The reserve of
the banks is for use on extraordinary
occasions and If it be found in tomorS
rows statement that part OF it has been
used to avers a general panic, such as
would set back the mercantile and iu-
dustrial business of the country, it will
cause 30 surprise and should cause 10
reproaoh. At one time to-day it was i'm
possible to move by the sale of foreign
bills Of exchange on our exportable domes-
tic products. To remove such a block in
the way of a national bank would be justi-
fed in overstepping its reserve line the
same as a state bank now has authority TO
do. the amount OF reserve which q state
bank keeps being left discretionary with
its officers or managers. The brokers,
unable to get money this afternoon, treely
threw stocks overheard and not only
we're the lowest prices of The day made in
the last hour but the lowest prices for
months The market closed 10 a condition
of panic. The closing rate for call loans at
the stock exchange was per cent, plus +
and / ct l per cent per diem. Many lead
ing stock exchange houses paid only per
cent to-day but many stock brokers in
good fair standing had to pay round com
mission. At 3:15 o'clock money was
offered at per cent
From the World editorial The trade
and general business of the 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 condition of affairs was
brought about by the selfish conspiracy of
certain NUN Der OF national banks, bent
on opposing The national will in the matter
Of establishing a lower national rate of
interest. which the duly chosen represen-
tatives of the people of the United States
have thought proper to adopt. Our gov
ernment and thu people who maintain it
have submitted to a great sacrifice TO
afhrd all reasonable support 20 national
banks. but the banks have not kept with
in reasonable limits aud their dem and for
compensation for such financial services
as they havs been able to rendar the coun-
try. A few of these banks have not hesi i.
tated to invite the destruction of lhe whole
system aud provoke popular anger by pur-
suing q course which must inevitably force
IN the American citizens the question
whether the legislative and executive Of
nceIs 3hose to represent the people or a
tow bank officers are to administer the
financial doctrines OF this country.