Worcester morning daily spy., 1898-03-07
PRICES FALL.
Short Session Makes Many Big
Changes in the List.
Liquidation Continued EnergeticaIly--Re Re.
Election in the Banks Of Our uneer-
tain Relations With spain,

| New York, March 5-Liquidation was
renewed with energy on the stock ex-
change today and the Saturday short
session was long enough to effect some
very striking declines. Large selling
orders were executed for Washington
account, as was the case yesterday.
There was no news to account for this
selling. beyond a natural feeling Of ap-
2rehension over the Spanish situation.
There were occasional run1ors of new
developments set afloat, but to large
extent they represented the guesses of
room traders as to the motive for the
Washington selling. A rally in the late
dealing was in part the result of cover
ing by the shorts, which had sold early
in the day. The coincidence of the rally,
with the appearance of the bank state
ment, seemed at variance with the
statement which was in some respects
a disagreeable surprise. The contrac-
ton in loans, the falling off in deposits
and the decrease in cash were much
larger than has been expected. The fact
that the financial world had been going
through such buying period, and with
so little harm resulting, was accepted
as bull card, in view Of the underly-
ing strength of conditions which is thus
demonstrated.
Nevertheless the general list shows
marked declines extending to over
point in some cases. Union Pacific pre-
ferred, Northwest and Manhattan were
the special points Of weakness. The
Changers were relatively firm, and the
Coalers all showed resistance to the de-
cline. Dealings in Sugar were large,
and there seemed to be good support for
this stock. Bonds moved in sympathy
with stocks.
AS a measure of the uneasiness felt
by the financial community over the
status Of the countrys relation wltn
Spain, today's statement of New York
clearing house banks makes strik-
ING exhibit There is in it evidence of
a great drawing in of credits and for
tifvine of reserves. The statement was
a surprise. 1t had been known that the
demands of the country for money Tor
active use have fallen off considerably
this week. but the statement neverthe-
less shows a decrease in reserve OF
nearly SS, 00O, O00 That this reflects tne
withdrawal of deposits in New YORK
banks by interior institutions as pre-
cautionary measure to strengthen their
reserve, is beyond doubt, The contrac-
tions Of loans represents othe precau-
tionary measure of the New YORK
banks. and explains why money Tor
purely speculative purposes has be-
come scarce why liquidation on the
stock exchange has been forced ana
prices acutely depressed. 1t is posslple
that some part of the loan contraction
is due to liquidation on sterling eX-
change callateral which has been with
drawn for use in importing gold. But
it is the general belief that the gold i'm.
ports have been made on the sale OF
new bills against London purchasers OF
American securities which were heaVy
last week and against grain shipments
from here. The net result to the clear
ing house banks is a decrease in de-
posits of $2S. 1873, 900. Gold in transit for
New York or received today amounts
in the aggregate to $5,S00000 which will
serve as an offset in part to the banks
losses Of cash.