Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1881-02-26
News by Telegraph
FROM ALL QUARTERS.
WALL STREET. EXCITED.
A Disastrous Crash i'm
the Market.
SUCCESSIVE BREAKS IN STOCKS.
Fabulous Prices Asked for Money
Loans.
Anxious Brokers and Spectators.
A Panic Impending i'm the
Street.
NEW YORK.

most exciting day in Wall street financial and
general business circles since the remarkable
panic of 1878. The first great break of the
morning in prices of stocks was followed by a
lun consequent upon the announcement that
Secretary Sherman had determined to sell
$40 900, 900 bonds, but the banks and pri-
vate banking firms and brokers made rush
on the sub easury as soon as bulletin was
posted that the bonds would be redeemed,
and so great was the demand for cash that
within three hours over thirty thousand dol
lars had been paid over the counter, and all
the clerical force of the sub-Treasury was
busy drawing checks. The panic in the
street was frightful. Everybody apprehend-
ed failures every hour, and doubt and uncer-
tainty aggravated matters beyond descrip-
ton. In the meantime the market continued
to fall, and the minutes of the closing day
were anxious1y counted. Money was one
per cent. bonus over night The banks re.
fused all loans and were calling in their
loans as rapidly as human industry could
Some of the best men of the street found
for the first time that their personal applica-
tions for loans were refused. At times bro
the day closed without any failures being
reported. It was well known that several
members of the Stock Exchange had hard work
to keep their heads above water and that they
met with heavy losses in fulfilling their con-
tracts. At one time as high as 1 and inter
est was paid for money by those who were
caught in the squeeze and were obliged to
obtain the cash at all hazards. The banks
refused to accede to many demands for loans
which were made upon them thick and fast
AS fast as the banks received checks for
bonds sold, Just so fast did they deposit with
the sub-Treasurer to retire their circulation
Brokers made a desperate rush to sell stocks
in order to obtain money, and before noon
several of the strongest operators refused to
buy single share on margin. The only
class of orders accepted were those for in
vestments and Spectators were at loss
which way to turn. Within two minutes the
action of Secretary Sherman was announced
on the floor of the Exchange. The banks
were quick to respond with offers to sell the
bonds named. The Third National was
among the first, the Gallatin National fol-
lowed and many other prominent banks and
houses. By O'Clock four millions were
taken. Then there was a comparative calm,
which was followed by more violent storm
than ever. Almost every branch of business
was affected by the advance in money.
On the Stock Exchange the confusion
amounted almost to pandemonium. The
heaviest drops during the day were North
western, 8 points st. Paul, 8; Ohio and
Mississippi 81; Union Pacific, II; Delaware,
and Hudson, III; Lackawanna, Z; Jersey
Central, n; Western Union, IA; Philadel-
phia and Reading IA; Texas Pacific, Al;
Michigan Central, G. The total number of
shares sold on the Exchange was 700.
Following is list of the heaviest sales of
bonds made to the sub Treasury under Secre-
tary Sherman's order Drexel, Morgan &
600; Schuls & Co., So, 800; r. Mcconnell,
1856, 900; R. G. Mott $4,000; Krohne &
Schumacher, 1864, 6OO Marin, LIE Brun &
Co., $1O,O August Belmont & Co., S.
900; the National Broadway bank, $173, 900 :;
Schaffer Bros, $142, 900; Gallatin National
bank, 1914, 900; J. NJ Aballos d Co., $780,
900: Charles Unger & Co., $25O,OOO; Kuhn,
Loeb & Co.. $24O, 900; L. Won Hoffman, &
Co., 1852, 700; W. & J. O'Brien, $4,000 );
A. s. Rosenbaum, $4,000. The deposits at
the sub-Treasury for the retirement of circu-
lation up to the close of business yesterday
were So, 712, 800, making total to date of
$13, O33, 315. The checks received after bus
mess hours were $679, 800, bonds redeemed
So. 6s7 300. The following out of town
banks were heard from at the
sub-Treasury First National, Syracuse,
$184, 800; Bank of Providence, $299, 100 !;
National Bank of Toledo, $58. 50O Third of
Pittsburg, $85, 500; First of Middlebury,
ST., 600; Bank of Cairo, ILL.,, $45, 900; First
National of Kalamazoo, $27,O00; National
Springfield. ILL.,, $45, OO0 First National of
Troy, N. Y, $4,000; National State of
Terre Haute, $3.50, 900: National State of
Newark, $3.50, 600; Ashland of Kentucky,
1926, 900; Second National of Toledo, 500,
600; Bank of Commerce, Pittsburg, $45,-
200: Home National, Elgin, Ill, $40, 700 /;
Bank of Royalston. W., $4,000: First Ma
tional of Auburn, $50, 600; Fall River Bank,
1871, 500.
The most exciting period of the day was
the closing hour of business. The brokers
seemed to lose confidence in each other and
there was pretty general feeling that PAN
ic had been precipitated by the national
banks. There was slight rally in the clos
ing dealings, but the general tone was fever
ish and decidedly unhealthy 1t is known
that several firms are carrying heavy lines of
stock on margin, and that to-day's decline
has carried them far below the limit and any
further excessive decline will wipe them out
with a loss more than they can bear. del
egation of bankers left for Wash
ington this evening to confer with
Secretary Sherman and members of Congress
SO as to secure modification of some of the
Objectionable clauses to the funding bill.
They assert preference for 81 per cent.
| interest with taxes left as they are, but If a
per cent. bond is to be issued they demand
that there shall be a reduction of bank taxes
They object in toto to the fifth section of the
| bill, which provides that as soon as the bill
becomes law the banks shall not be permit
| ted to recover their bonds which they have
pledged at Washington to secure their note
circulation, even after they have deposited
with the department enough lawful money
| to redeem every one of their outstanding
notes as they come in, but shall only be per
| mitted to get their bonds after they have
gathered up their notes and sent them IN, g
process which may cover months or years
United States bonds were affected by the
unsettled feeling In the stock market, the mel
| changes for the day showing decline of in
| four and halls, { In 6s and an advance of
| in IS. The gross sales of United States bonds
sold at the Stock Exchange were S505, 900,
while foreign exchange was very weak, de
clining from 485 to $50, rates that warrant
good imports.
+, This evening there is greater crowd
| around the uptown hotels where stocks are
| bought and sold after Wall street hours thar
at any time since the days of the panic of '73
| There is an evident and determined effort tc
brace up the market, but only few transactions
between the brokers who throng the Hobbies
Prominent in the Windsor Hotel, the princi
| pal resort of brokers at night were D. O.
Wells, Russell Sage, Henry Smith of Black
1 I u. n.
| hotter, L. L. White, J. N C. Wurmser ano
1 indeed all the leaders of the street with liter
ally thousands of smaller rokers and outside
| Spectators. The fever and apprehension Of
tomorrow are apparent in conversation anc
| the expression of opinion privately to friend.
Is In the same tenor, namely, that no one car
| tell what tomorrow may bring forth. Every
thing depends on the action of Secretary
Sherman tomorrow and tidings from Wash
ington are most anxiously awaited. It is cal
culated that thousands of messages have beer
sent to Washington tonight to members Of
Congress, members of the Cabinet and conf
Dental agents, and every train south bore
scores of men sent on special mis-
sions by stock brokers and dealers
here. No one seems to have any def
mite idea of what will be the result
and the opening of the market in the morn
| ing is anxiously awaited as liable to preeipi
tate the panic which is pending Jay Goult
j