The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-02-25
FIx1ycrAD AND ooMMEEoIA1.

shndowod By the weak moss OF tho mar
ket at tho close yesterday and the irec-
tionally lower quotations for American So
ourities In London this morning. No o~nc,howeVeF'
expected breaks OF nearly 10 points in Manhat-
tan Railway, 10 In Metropolitan Street Rail-
ray. nearly 3 In Sugar Refining and 3 to o
pointa in the active Granger stocks, Missouri
Pacific. Northern Pacific preferred. Union Paci-
DC. New York Central and many other stocks
ieae extensively dealt In. As thero were no
a%tartlinp developments In tho Cuban situation
over night, tho most plauiublc explanation OF
tho urgent liquidation this morning sthat TWO
or throo individual lenders OF money, including
ono who makes nd on very slender margins
BY borrowing stocks from commission houses
and trndcrs who transact their business on
ANAL capital. had called their loans overnight.
Tho borrowers being unable to secure accom-
modations ~lsewhcr upon equally lcnient
terms, so far as margin is concerned, were com
pelled TO take their own and their customers
securities to the auction block.
During the first half hour OF business the mar
he. was as badly demoralizcd as Mt the time OF
the Venezuelan episode two years ago last De-
ccmber. Tho suddenne.r and the extent OF
the initial declines naturally widencd the
circle of liquidation and also intensified the
,train that Wall street has been under ever
since tho disaster to The Maine. A declining
market stimulates sales for both accounts. Just
% advancing prices influence purchases. AT
tho extreme decline foreign arbitraRe houses
became buyers upon an extensive scale. Their
purchases for tho day were estimated by them
selves at fully 10000 shares. making 100000
shares yesterday and to-day and about 100000
sbnrcs within tho last Ave or six days. Tho de-
cline was also successful in bringing several of
the larger commission houses into the market
as buyers. They took round amounts OF
Union Pacific and Northern Pacific securities,
Peoples Gas, New York Central. Manhattan
Railway. Rock Island, Brooklyn Rapid Transit
and st. Paul. Tho feeling Is beginning to gain
ground in certain quarters that while n COLI
eion with Spain Is possible it Is hardly prob
able. This view was supported by a cable
despatch that the Bank OF Madrid, which is prac-
ideally n Government institution, has declined
10 accept coupons due April l calling for In
tcrest on Spanish bonds. except for collection,
and It will make no advances upon them
unless they are Endorsed by tho holder de-
string to secure the accommodation. This
10 a reflection upon tho credit OF tho
Spanish Government which would seem to
amount to an intimation of insolvency. Asis
well known. the Spanish Government has in
CURED enormous obligations In connection
with the Instructions in Cuba and in
the Philippine Islands, and It's credit
has been impaired in consequence. Its bonds
are held chiefly by French bankers and inves-
tors, who may have something to say regarding
further disbursements for military operations.
As a matter OF fact. Wall street was not dis
turbed to-day by rumors regarding the stu
alton at Havana. All OF the sensational re-
ports published as coming from that centre
yesterday were authoritntively denied. Tho
stock market. however. reflected a convic-
ton that n crisis in Cuban matters is near
at hand and that tho United States Is deeply
interested In it, chiefly on account Of the dis
nsscr to the Maine. As usual after a sharp
decline in prices at the opening the market
rallied. and then the character of n good deal OF
the selling hocame apparent in q vigor-
GUS onslaught against several stocks. par
ticularly Peoples Gas. which until to-day had
only moved In sympathy with tho stocks that
have sustained the greatest net losses. The
borrowing demand for stocks Mt tho close was
the most active In many weeks, and several
Issues, notably Sugar Refining, commanded o
premium.
For the first time the bond market was weak,
q circumstance that may have been duo in part
TO tho somewhat higher rates for money. Tho
larger banks. as n rule. marked their call loans at
3 y cent. and demanded that ratc for now accom-
modations. The rates for time money were also
higher. and there was less disposition to mako
loans for long periods. On the other hand. the
market for sterling exchange was weak, owing
partly to tho advance in money. but moro par
t.cularly TO the purchases OF stocks by London
and tho maturity, for tho second time. of bills
that have been carried in this market. More
over. tho demand for exchange from remittersis
nonormally light. for no matter what their re-
quiremcnts may be they doubtless foresee a
lower market for exchange. In the last half
hour OF business the stock market rallied sharp.
~. partly on tho covering Of shorts. In ccnso-
qucnce, tho maximum declines were consider
ably reduced. The net losses wero, however.
with lYut few exceptions. important.