The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-02-25
STOCKS GAIN, THEN LOSE
THE ADVANCE WAS DUE PRINCI-
PALLY TO COVERING By SHORTS.
Failures on the Continent Caused
Considerable Fear of Financial
NEUTRALITY-SUSPICIOUS. Weak.

NEW YORK. Feb. 2L-The action of the stock
market became hating and irregular to-day on
a somewhat decreased volume OF business The
moderate gains established during the early
part Of the day subsequently lost.
The motive OF the early advance was not very
clear. but il was attributed to a covering move
ment amongst the shorts. The borrowing de-
mand for stocks the exchange this morning
pointed to the existence Of considerable short
interest
This prompted some OF the traders to take
the lorg side in the hope of dislodging the short
interest The signs of open short position
were not wanting yesterday, but in the sus-
picious mood of traders it believed to be
more apparent than real.
The professionals we're then convinced that
the real liquidation going on was concealed by
the borrowing OF stocks for temporary delivery
IN order to hide the character OF the selling.
There was feeling this morning. on the con-
trary' that the selling movement had somewhat
overrun itself. The recovery in prices OF Amer
leans in London helped this feeling.
The buying movement was lacking in vigor
and tie resulting advance was very moderate.
The weak tone of the later market was clearly
enough due to renewed apprehensions over the
financial situation at the great money centers on
the continent.
The reports of the numerous banking failures
az Berlin. Paris, Vienna Lyons and rumors
lnat tnere would be further failures at other
continental points weakened all the markets.
mere was nothing in the war news TO account
LOT TINS reaction, but ii gave rise to natural
iihlseiVlhss that the diplomatic situation might
De strained so as TO threaten eventualties. The
sudden rebound on Monday, while our market
was closed, from the panicky slump of Satur-
DAY, was attributed more or less artificial
measures OF support with the purpose of avert
ing the threatened failures, and the evidences
since tnat necessary liquidation was proceeding
undermined confidence anew.
IN thc domestic field the bears on the market
d he
anu anu east and threats on the part of the trunk
ilnes mat lake grain would be carried for moth
ing III necessary in the pursuit of the contention
+ ears OF a coming great strike in the soft coal
field are abated.
The passage Of the Panama treaty by the Sen.
dte Ieads 10 an expectation of early call for
repayment OF - per cent. of government deposits
from national banks. Discussion is beginning OF
the date for the spring movement of currency
IaIi 10 discount of New York exchange al
Inc foreign exchange market advanced strong.
~ IN response to the passage of the Panama
cahaI treaty. and also presumably on account
OF the nnanclal difficulties in Europe. The rea.
1--WE nrmness of Amagamated Copper was at.
TlDuted TO expectation of the dismissal Of a
SSelhPorary injunction against Payment Of dvi
bends on stock of subsidiary companies owned
Net losses were general at the close but in onI1
rev leading stocks did they approach a point
1here We're some firm spots i'm the early bono
market but prices generally gave way I'm SYM
pathy with stocks. Total sales at mar yalu,
were 81. 4Oo, 600. United States bonds were un
| changed call. 49,
Ool,