Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-01-12
NEW YORK. STOCRSANDBO
Need Of Psnnsylvanis for Additional Cap
ital Gives Market Shock.
sPtcULAToRs FEAR OTHER BIG DEMANDS
Rally Late in the Day 60 Buying by
Uncovered Bear InteFests-C1os-
Inc Tone strong ThrouGh-
cut the Last.

NEW YORK. Jan. u.-Speculative senti-
ment on the stock market today received
a rude shock IN the announcement made
late yesterday that the Pennsylvania rail-
road had in contemplation the offer Of
N90OOO,OO0 additional capital. The volume
Of new securities thus indicated Is in itself
effect on the supply of capital For sew
eral reasons the effect OF the news was
ssgravateds; For one reason II was total
OF capital have come unheralded by con-
lecture or accurate forecast. There has
been no recent discussion of an important
additional issue Of Pennsylvania capital.
On the contrary Il has been regarded as In
the position Of having already supplied
impression created by the official explana-
ton OF the company's finances given out
at the tine q the sale OF 100000 Penn nm
sale OF large holdings OF Baltimore q Ohio,
Norfolk q Western and Chesapeake & Ohio
have caused a belief that even the addi-
tional needs then indicated had been par
tally supplied. The revelation that instead
t2OooOo0Oo was accepted as an acknowiedg-
ment that the actual necessities had been
widely underestimated;. The inference was
might be supposed in the case OF other
railroads as the pressure Of traffic on
confined to the Pennsylvania railroad.
Meantime news continued to come to hand
of the issue of long term notes by railroad
upwards to supply immediate needs and
avoid the necessity of an attempt to sell
permanent securities in the present un-
promising condition of the security market.
The most vulnerable points In the days
market were stocks which might be
sumed to be most affected by possible need
OF additional issues. Canadian Pacific and
New York Central next to Pennsylvania
itself, were most conspicuous. The north
western ,Sstern railroads s WHICH have already
mands, were comparatively little affected.
The prospect Of strong bank statement
was of little effect In checking the weak
ness In the stock market although the
money market was appreciably easier as
result. The flow of cash from the interior
have been heavy. estimates by the banks
themselves pointing to receipts on balance
Of about 100000 In addition the sub
banks since the last bank statement a sum
Of $2,56S,0o0. The heavy debit balance OF
d ds, suPSt,resasury at the clearing house to-
due to disbursements for transportation Of
the mails and does not figure In the esti-
liquidation for the week would operate TO
reduce the loan item, but the effect of the
purchase OF notes Of various corporations
which has been made during the week can
only be conjectured. The prevailing feeling
oyer the enormous capital requirements
overhangtng the money market precluded
any favorable consideration of the more
immediate replenlshment of the money
market which Is promised
The vigor Of the rally late in the day was
testimony to the dimensions OF the bear
interest left uncovered a result of the
early rush to sell. The severest pressure
was felt during the first hour, when Penn
Of points: St Paul was strong on the
raly and the tone was strong throughout
Bonds were irregular. Total sales. par
value, 2.HSm0 United States old 4s,
coupon; advanced per cent on call
New York Stock exchange: