Worcester morning daily spy., 1898-03-21
TRADING DULL.
Sluggishness of Stocks Marked
the Saturday Market.
Spanish Question Remains the Dominant
Influence in Wall Streets specuators
Uncertain as to Outcome.


lack of action, of today's stock market
can only be interpreted as the accurate
reflection of the overshadowing uncer-
tainty of the Cuban question. Last Sat
urday the threatening aspect Of the sit
uation coupled with the recollection of
the developments of the preceding Sun
day in the suggestion of the recall of
General Lee, led to reckless short selling
by the traders driving the market to
point even lower than the Monday
market succeeding the Lee incident The
pinching administered to the reckless
bears in the rebound Of last Monday
made them extremely cautious about
putting out short lines in today's mar
ket. Even the shorts who were driven
to cover in yesterdays late furry over
unwarranted rumors of compromise
with Spain did not venture to renew
their selling. The consequence was an
almost lifeless market, as no one is ready
to take the long side Of the market at
this time.
Prices drifted aimlessly up and down
over a narrow range. Only little over
100000 shares changed hands during the
days short session. The bond market
was equally dull The bank statement
showed an expected increase in the sur
plus reserve, but the net increase in
specie by no means fully reflected the
receipts of imported gold during the
week, and the stock of legal tenders
was materially reduced. The lowering of
the legal reserve level by 81 1926, ,120
through the reduction in deposits, ac
counted for that much of the increased
surplus. The $10,5S5, 100 contraction in
loans Is clear enough evidence that the
heavy receipts of gold from abroad are
insufficient to maintain the balance of
the money market, in spite Of the dis
tinctly easier tone of money in the
last days of the week
The Cuban problem has remained the
dominant factor in the stock market
during the week. Its uncertainties and
perplexities are felt to be so great that
no one in the speculative world feels
competent to form fixed opinion as to
the outcome. The result is a small and
narrow market. The heavy liquidation
of speculative holdings of long stocks,
induced by the first stage of the threat
ening developments has about conclud-
ed, and probably no further heavy offer
ings would be induced except by some
Development threatening serious con-
sequences to security values.
That there has been an extensive re-
striction Of credits has been obvious
from the developments In the money
markets, But this restriction has ap-
parently affected nothing yet beyond
speculatice enterprises and particularly
trading in securities. The completion of
the first liquidation, and the passage
of the securities to stronger hands
leaves the floating supply of stocks
much reduced. Prices move easily and
quickly with only light volume Of
business which is wholly in the hands
of professional room traders. This makes
the market sensitive, and extreme eau
ton is seen on the part of the bears as
they have learned to their cost at least
twice during the week. Nevertheless the
bear side of the market is the favorite
side, for the belief exists in Wall street
that a hostile attitude towards Spain
will ultimately be forced upon the gov
ernment by the deplorable condition in
Cuba, whatever may be the outcome of
the Maine inquiry. For this reason trad
ers persist in selling the market short.
On the other hand there is the underly-
ing strength of the business situation,
the large increases in bank clearings all
over the country rejecting awakened
commercial activity. Railroad earnings
show gains over previous years; prices
| for agricultural products are mostly
high, and the foreign demand for them
is active. The current Of gold flowing
towards this country is uninterrupted
at this period of the year when ex-
changes are usually going against us,
owing to the turning of the trade bal
ance, but though our imports are in
creasing, the still greater increase in ex-
ports keeps them largely in excess of the
imports All these favorable business
and financial conditions make the spec
ulative market extremely sensitive to
anything suggesting means of lifting
the Cuban incubus.
Prices rebounded with astonishing re-
silency on ever provocation, and forced
the shorts to scramble to cover. 1t is
largely the covering Of shorts that has
raised the level of prices substantially
above last Saturdays extreme depres-
sion. The bond market has been dull
during the week, but prices are some
what better U. S. new As advanced V,
the old As coup. and the Is declined ",
and the old As reg. declined X in the bid
price