Worcester morning daily spy., 1898-02-26
SHARP RECOVERY.
Both Stocks and Bonds Were
Favorably Affected.
Engagement Of Gold for This Country in
Paris and London the Predominant
Influence in This Situation.

New York, Feb. 25.--There was a sharp
recovery in the prices of stocks today,
in which the engagement of gold for i'm
port was the predominant influence. The
course of the exchange market yester-
day forshadowed the early importation
of gold, which is the direct outcome of
the stiffening in the rates for call money.
The amount of sterling exchange held
in New York is variously estimated at
from $40, 100000 upwards.
A large part of it has been used as
collateral for loans, and the large liqui-
dation of loans has released a quantity
Of this exchange, and brought it upon
the market. In other words the rise in
the money rate makes it profitable to
bring home funds which have been left
abroad on account of the higher rate
hitherto prevailing there.
The import movement of gold is likely
to continue unless there should be a
sharp advance In the money market in
London and Paris. The calling in of this
country's gold credits abroad is likely
to put a stop for the present to foreign
buying of our securities, which has been
large of late and which continues even
today.
The bears made an effort to retain
control of the stock market at the OPEN
ing today, by raising a few Of the spec
ialties, notably Metropolitan street rail-
way and Manhattan, but they were un-
able to wipe out the gains.
In sympathy with London, trading
was nervous during the first hour, but
after that the upward tendency of the
market became fairly settled and con-
tinued throughout the session, with oc-
casional slight reactions. A distin-
gushing feature of business was the
large number Of small lots of stocks
that changed hands, rejecting a large
investment demand, which was invited
by the low prices of yesterdays slump.
The large short interest created in the
recent decline was a material factor in
today's rallies; the bears having evil
IDENTIFY placed stop loss orders
which were uncovered as the rise pro-
gressed. Large corporate interests were
credited with continued absorption of
stocks today. The days highest level of
prices was not fully maintained; but net
gains generally are from l to points
Great Northern preferred gained 6
points on renewed rumors of valuable
distribution to be made to stockholders.
The effort being made to adjust rate
differences on western and trans-conti-
mental lines was a favorable factor in
lIlt Ildlhtl.
Money on call loaned at per cent, but
later in the day became easier in re-
sponse to the gold engagements. Rates
were firmer in both the time money and
commercial paper.
There is continued large movement
of currency to the Interior to meet an
expanding demand for money there.
With regard to assertions that this
movement of money is designed to
strengthen bank reserves against pos
sible contingencies, it should be borne
in mind that banks are allowed to keep
a part of their reserve in the New York
city banks, which are designated as de
positories. These deposits still figure in
the legal reserves of the banks as much
as though they were in their own vaults
There was a sharp recovery on bonds
today in sympathy with stocks. Total
sales $3.50, 900.
u. S. new AS coupon declined 112; 90
reg. / and the old As reg. and the 5's, u
bid. The steamship Campania sailing tol
Europe tomorrow will take out 621 ,OOC
ounces of silver.