Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-02-24
FINANCE AND TRADE
Strained Relations With Spain Cause
Break in Stocks.
SHARP DECLINE IN ENTIRE LIST
Short Covering Caused a Few
Temporary Rallies.
GENERAL MARKET REPORTS

special Dispatch TO The Evening Star
NEW YORK. February 24.-The tension
which has been so conspicuous I'm financial
circles during the last few days gave way
TO complete decentralization this morning
During the first hour of business the mar
ket declined from to L. per cent by COM
psrison with the weak closing level of yes
terday. All classes of securities were sac
rinced IN the haste to cancel outstanding
speculative risks pending the outcome Of
what lis now regarded as a crisis I'm our re-
lations with Spain.
There were no special Jews developments
To base this wholesale liquidation upon. but
the failure to confirm the accident theory
resulted in a concerted determination to
convert securities into cash.
The bulk of the selling came from ac-
counts too meagerly margined and from an
organized depressing party. Every weak
point was assailed with liberal offerings OF
short stock. stop orders were uncovered,
and Tor a time no one cared to predict the
outcome.
Toward the end of the first hour a strong
financial clique determined to assert the
course Of the market and repair in some
measure the ravages of the opening panic
Standard OIL brokers bought ST Paul
Sugar and a few other stocks on a scale
which served 10 relieve the situation of its
one-sideness.
Toward noon substantial recoveries were
recorded. the short int rest covering liber-
any upon the appearance of the above
mentioned. The shock of the morning had
been too great to be easily overcome, how
ever, and no very confident buying was
encountered at any time during the day
In most instances purchases were inspired
solely from the necessity of protecting ac-
counts heavily committed to tn long side
OF the market
However selfish the motive this buyin;
| came opportrnely. Metropolitan street
railway and Manhattan suffered most dur
ing the period OF depression. the decline at
on. time being Il and 9is per cent respect
lively. Northwestern, New York Central and
| Rock Island declined on an average OF about
> Fer cent. The low-priced issues were ex-
tremely weak, but profited to some extent
| by relatively moderate dealings
The entire basis of speculation has been
overthrown by the events subsequent to
| the Names disaster. and the present scare
OF necessity forces q new basis of reasoning
The next appearance Of confident demand
Will be recorded, I'm all likelihood at a new
low level. The protection of stocks intrin-
sically valuable will require funds intended
for new ventures.
The buying power will be curt tailed to this
extent, and the public will refrain from
buying into feverish situation, such as
| must prevail for an indefinite period Mean
time buying against short sales will cause
temporary rallies. but there is little conf
dence in any immediate accumulation OF
long stock.
Domestic finances, railroad earnings and
| factors usually looked to I'm determining
| prices are satisfactory but this does not
detract from the prospect of buying securi-
| ties considerably under their income value.