The herald., 1898-03-06
ON CHANGE
Conditions Shown by the Dealings on
Wall Street

NEW YORK, March 5-Liquidation was
renewed with energy on the stock eX-
change today and the Saturday short ses-
sion 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
general feeling of apprehension over the
Spanish situation.
The fact that the financial world had
been going through such trying period
with so little harm resulting was accepted
as bull card, in view of the underlying
strength of conditions which this demon
strated. Nevertheless the general list
shows marked declines extending to a point
in most cases. Union Pacific preferred
Northwestern and Manhattan were the
special points of weakness. The Grangers
were relatively firm, and the Coalers also
showed resistance to the decline. Dealings
In Sugar were large and there seemed to be
good support for this stock
AS measure of the uneasiness of the
financial community over the status of
the country's relations with Spain, to-
n nnays statement OF New York clearing
house banks makes a striking exhibit
There Is In 1t evidence Of a great drawing
IN or credits and fixing of reserves. The
statement was surprise. 1t has been
for money for active use have fallen off
considerably this week. but the statement
nevertheless shows n decrease in cash re-
serve or nearly $0Oo.O00. That this re-
York banks by interior institutions as a
precautionary measure to strengthen their
reserves is beyond doubt. The enormous
contraction In loans of $13 622 900 represents
tne precautionary measures of the New
York banks and explains why money for
purely speculative purposes had become
so scarce, why liquidation on the stock
exchange has been forced, and why prices
were acutely depressed. 1t is possible
that some part of the loan contraction is
due to liquidation on sterling exchange
collateral, which has been withdrawn from
use in importing gold. But it is the gem
erai belief that the gold imports have been
made on the sale of new bills against Lon
don purchasers of American securities.
which was heavy last week, and against
grain shipments from here. The net re-
suit to the clearing house banks is a de-
crease in deposits of S23. 1913 900.
Gold In transit for New York or received
today amounts in the aggregate to 81. 500 =
900, which Will serve as an offset in part
to the banks losses of cash. The situa-
tlon in the stock market is closely anala-
gous to that which followed the culmna-
ton of the rise in prices last September
The movement of money then to the in
terror to move the crops caused a stiffen-
ing or money rates and liquidation Of spec
ulative stock holdings Whether the i'm
port movement of gold will result in a re-
newed advance of stocks. with the easing
of the money rate. remains to be seen. That
the disposition for the moment is against
speculative outlay in securities is evident.
though large capital apparently stands
ready to buy stocks at any copsidera Die
decline in prices. The decline of the lat
ter part of the week has not in all cases
wiped out the early advance and net
changes are mixed.
Bonds have not been as active as stocks
but have moved in sympathy with them
within n narrower range.
United States old fours and the seconds
registered are 2 per cent lower, and the
new fours Il lower bid.