Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-02-27

fnfor their Profits-The Bank Conspiracy
suoposed to Have been Carried its Full
Length and Accomplished its Purpose.
NEw YORK, Feb. 26.-Wall street and the
stock exchange were in whirl of excitement
at the opening, but as 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 for
the present. At the close of business yesterday
the street, in the language of broker, was
on end, and the wild rumors circulated fore
boded 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 nlled 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 IN stocks for years were
there Their customers were out N 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's order of yester-
day was unknown. 1t was doubtless
due il part to that announcement, but the
moral effect of the knowledge that did an ex-
igency arise the secretary had S16,0OO,OO0 of
reserves to exhaust in payment for additional
IS aad 6s, and that in addition he would pur-
chase S25 900, 600 of called bonds, as announced,
went long way further. All evidences Of
pa1Icky 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
ar,d 1or 1hnr of fri
ing curbstone operators were to be seen in
Eew street and Exchange Place.
The sharp recovery in prices did
no good to those who were
cleaned out and they sadly morali6ed 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 III the
turn to-day. The decline was SO rapid and
tcnpestuous that it is not probable it was
discounted to any extent, Notwithstanding
report that bear cliques with 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 .he street within the last twenty four
hours was made in the rapid recOveries.
THE EVENING PosT's REVIEW.
TAe Post says: "Where the rates for call
loaas 10 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
o1e 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
TIE 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. Theamount collected on
deposits made yesterday of checks is Ss79,50O.
II 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
said to be in from Montreal and neighboring
cities like Boston and Philadelphia. The indi-
cations are now that the crisis has passed, so
far as the money market is concerned. The
Onitc1 States treasury was debtor at the
clearing house this morning in the sum of
s., 1872 900, which means that the sub-treasury
OF 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 S25, 1000, 900
bonds included in the 101st call. Until to. day
money for these bonds could only be obtained
hY sending them to Washington and submit
involves. To-day's order of the secretary,
therefore, puts the treasury in the market as
s buyer at par and accrued interest of $35,-
600, 900 bonds, of which S10000,000 are un-
called and S25, 100000 called. 1t may be these
bonds will come in slow by their being scat
tered widely, but within comparatively short
time it is reasonable to suppose the
dessury will have paid out rs
mich money as the banks have paid
into the treasury since the Senate pas sed the
refunding bill. The chances are now SAID to
be against the enactment of the funding bill.
Is the bill should for any reason fail to become
3 law then the banks which have given up
note circulation viii 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, woald be in favor of easy money,
H the bill becomes a law then the banks can
no longer, from the day of its enactment, give
up note circulation, and contraction resulting
therefrom would be impossible. In addi-
tion, the treasury would have right to invest
81, 100000 of its coin balance in maturing 5
mske 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, ,000, 900 less to carry ex-
change security than it did a 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 gfVen to stock exchange
speculation during the week must be regarded
by all engaged in legitimate non-speculative
business as wholesome in it's influence, for the
reason that it will have more money and credit
for those outside the circle of pure speculation
About noon 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 as 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 resod here
At the advance, but are exported, gold to con-
Siderable extent will be returned forthwith" 1"
THE BANKS AND CLEARING HOUSES,
The Express says: ''The bank statement
was more favorable than generally expected,
the loss on reserve being smaller than was
looked for under the circumstances 1t should
hn horna in mind hoveyar that the rtatapaant