The Montgomery advertiser., 1907-05-22
THE STOCK MARKET
ACUTE WEAKNESS CAME As SUR
PRISE.
The Source Of the Extensive Selling Was
Mysterious and the Motives which
Prompted the Outpouring Were
Not Clear,

New York. May 21.-Ths acute weakness
which developed in the stock market today
came as surprise to the financial commu.
nifty notwithstanding the symptoms Of
yielding yesterday. The source which
prompted the sudden outoou-ins ate. such
period Of Suiesesnce in the market as that
date development in condition known
which would change the situation SO abrupt
that an aggressive bear party had been or
ganized to attack the market. This inter-
probation OF the days movement was favor
90 nv the recent return to the financial
district OF individuals who were credited
with the leadership Of the smashing cam
paisn AGAINST prices which culminat,d In
tne March panic and who have been absent
on long vacations since these occurrences.
The action OF the market for some time
past has reflected the entire lack Of any
aosorptive demand for securities, but oc-
castonai tentative operations the short
side OF the market have been so little sue
cessfui In dislodging large liquidation that
a period Of dullness and neglect for stocks
was anticipated, rather than any active sell
ing or buying. The more aggressive plans
the violent movement in the wheat market.
The leaders Of the bull speculation in wheat
probably play large part in the bear move
ment in stocks. There Is additional incept-
I've, bear movements in stocks from
the renewal of anxiety over the conditions
of capital supply.
which are usually as carefully guarded
against declines by inside interests Is due to
the fact Of the large commitments by those
interests in securities Stockholders stand
committed for periodical installments of
subscriptions on new issues which have been
offered to them on attractive terms and theS
have no available resources to buy offer
ings OF their own stocks in the open mar
ket.
Some speculative buying D Union Pacific
lately was based on the sumption that
the stock would be supported to facilitate
the sale Of convertible bonds. Instead Of
that the bonds have declined to quotations
10 ha varin IF n
disappointed spectators In the stock have
failed to find opportunity &c realize q prof.
II. Successive new offerings Of securities
are made on such terms and offer such q
rate OF return to afford greater attrac-
lions than existing securities and thus to In
dictate that even at the low prices recently
prevailing. quotations are out of line with
the level of attraction for Investment. Such
scantv developments TODAY offered any
explanation of the weakness of the market
had to do mostly with rumors of still fur
Their bond and note issues to be expected
Some of these were denied, but without re-
Heving the depression Of the stocks concern
ed. The heavy liquidation in United states
Steel had pronounced sympathetic effect
on the whole list. merican Smelling, Union
Pacific and Brooklyn Rapid Transit were
other Influential centers of depression. as
was Amalgamated Copper.
The money market was unruffled and no
action was taken towards export Of gold. 1t
WAS not until stocks had weakened effect
uallv that the wheat market became strong
again The heavy liquidation of stocks
which undoubtedly occurred seemed to De
prompted by a gradual accumulation of In
fluences for some time past rather than by
any event which has occurred recently.
Short covering caused some wide rallies.
but the market closed unsettled and feve~-
ish.
ue s117400O. United States IS. registered
advanced " per cent on CALI
NEW YORK CLOSING STOCK LIST.