New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-26
Tile rARIIHLE PAkIC.


was day of terrible strain, excitement and
disaster. When solid mercantile houses hnd
it impossible to borrow money at one per
cent premium per day, and when rates of ex-
change fall 80 far that foreign transactions
are virtually arrested. it is impossible to es-
innate the injury caused to every branch OF
business. To holders OF securities, many OF
whom were forced to sell, the losses since
Friday last have been enormous. IL is as
tonishng that, in spite Of such fall in prices
and such stringcncy in the money MARKET no
failures occurred, and there could not be
stronger evidence Of the general soundness OF
business and sOvency of dealers. This panic
il is plain, has not been caused by any COM
mercjal or financial rottenness or recklessness
But thousands Of men, not here alone, but In
every part of the country, are bearing severe
losses to-day because an unjust and unwise
measure, framed for partisan ends, is pending
in Congress.
Secretary Sherman, finding that the offer
to purchase called bonds did not bring them
in with sufficient promptness gave the busl-
meas community the only other relief in
his power, by ordering the purchase of
SIC, 600, 900 of FIVE or ak per cent bonds for
the Sinking Fund. Only $3.es7,30 were
brout ht in ND to three o'clock, but IL is not
doubted that a much larger amount than
SIC. DOC. 900 can he obtained in this market at
days notice. The Secretary has power to
anticipate the surplus revenues still further,
and doubtless will do go if 1t Is necessary to
arrest disaster The extreme scarcity and high
rates Of money checked the surrender OF cir
culation by the banks to some extent aud the
advices from Washington, indicating that the
misunderstanding hill would be amended in the
House and might be defeated or deprived of
its Objectionable section either there or in the
Senate, had similar tendency. Besides
81 .9O7. 900 in checks deposited Thursday and
collected yesterday. the new cash deposits
were $500, 900, and the deposits of checks
collectable to-day were $679,00O, making
81 ,4S5. 600 circulation surrendered yesterday,
| against 1861, 900 bonds purchased. Hence
| there really was an increase in the amount of
available funds during the day, though 1t did
| not occur in time to moderate the rate
| of interest, or to check the consequent
fall in prices. The supply to-day ought to be
in better proportion to tie demand. unless
unfavorable action at Washington should
again increase the surrender Of circulation.
| DlSpulCue- RlF6 Ghab VIC Uuuluk Dli
may be amended in the House, and that the
bill to remove the tax on bank deposits may
be passed. But the latter measure. however
just and desirable, would probably fail at this
late day to prevent q continued surrender Of
circulation by the country banks, which hold
comparatively small deposits. On the other
hand. it might induce some city banks to take
out circulation in place of that surrendered.
No amendment Of the Funding bill will re-
store healthy condition Of business that does
not take from it the coerciye features of the
fifth section. The defeat Of the bill in either
House, or the distinct announcement by the
President that it will not meet his approval
unless deprived Of the unjust provisions Of
the fifth section, would quickly restore conf
dence, stop contraction, induce the banks to
take out again the circulation which they have
surrendered, and enable the country to le-
cover speedily from panic caused by no
unsoundness in business, but solely by the
folly and dishonesty of the majority in Con-
lCraa