The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-02-28
STOCKS BREAK SHARPLY
LIQUIDATION AND SHORT SELLING
Go HAND IN HAND.
Rally ut the Close ON Covering-Mon-
etary Conditions Continue to Cause
Much Speculative Unrest.

NEW YORK, Feb. 27.-Prices of stocks
yielded TO sharp attack late in the day
and were carried between one and two
points below last night for the market lead
ers- 1t was reported that the banks were
calling loans and presumably doing some
liquidation, but the active demand from
shorts to cover at the decline indicated that
short selling had played considerable
part in the break. The serious inroads on
bank reserves resulting from the weeks
currency movement was the cause of the
decline. Previous to that the market had
been neglected and sluggish with a sag
ging tendency rather than actively weak.
The vigorous support Of the Wabash is
sues. some early recovery from yesterdays
weakness by st. Paul and an upward tend
ency by Amalgamated Copper and a few
other stocks. served as obstacles to the
early tendency to decline. The leaders pro-
fessed to be waiting for the formal an
nouncement of the Rock Island and st.
Louis & San Francisco project and on def
mite information to indicate the fate of the
Aldrich financial bill. An attempt was
made to connect the Wabash movement
with the evidently far-reaching plan in the
Southwestern railroad world working out
through the medium Of Rock Island, but
the dealings in Wabash were by a few
room traders, who dealt with each other
on very large scale.
With the surplus reserves of the banks
drawn to about $1,000, 900 last week and with
a loss for this week indicated in cash re-
serves within half a million Of that amount,
1t would be seen that a serious condition
will confront the New York money mar
ket unless some considerable offset to the
reserve shrinkage has been effected by loan
contraction. Until this afternoon there has
been nothing to show that there was any
liquidation going on in the stock market of
an important character But the action
of the foreign exchange market and the
reported offerings of loan bills give promise
that foreign capital has been resorted to to
take up some credits paid off to the New
YORK panks. 1t is considered probable also
that the local trust companies have taken
over some loans from the accounts of the
clearing house banks. Preparation for the
March settlement increased the pressure to-
day so that call loans were forced up to
per cent. before the close. Time money
is very firmly held at per cent. for all
periods. There is nothing to indicate early
cessation OF the interior demand for cur
rency nor from the subtreasury require
ments on the money market. Payments of
internal revenue at interior points are being
made to the New York Subtreasury by
drafts on New York correspondents of in
terror bands. Dry goods imports for the
week 81, $685. in excess of those last week
explain the large customs collections and
also in part the demand for foreign ex-
change. Corn exports for the week have
fallen off 1,3705lS bushels from those of
last week. The relaxation in exchange.
therefore, Is clearly due to offerings of
bankers loan bills. Discounts hardened in
London, and Paris seems to be the available
point for extension of further credits here
if desired. 1t was of interest, therefore,
that the French Chamber has authorized
the issue of So, 100000 short-term bonds and
provisional credit for March expenses
and deficits in previous budgets.
The market closed irregular at the rally
on covering by shorts.
The bond market weakened in sympathy
with stocks. Total sales, at par value, were
$3,3S0,0O0. United States bonds were all I'M
changed on the last call.
Following are the days share sales and
the recorded price changes: