The Montgomery advertiser., 1907-01-12
THE STOCK MARKET
SPECULATIVE SENTIMENT RECEIv.
 ED A RUDE SHOCK.
Announcement That the Pennsylvania Railroad Had fn Contemplation
 the OHer of s200, 900 ,00O Ad-
 dftiona1 Stock Caused EIurry.

New York. Jan. 1l.-Speculative sentiment on the stock market today ns rude & shosk n tas Rss se Pennsylvania Railroad had in contem- plation the offer of $2oo.oo0.0oo addi- tional capital. The volume of new se- ficientiy Imposing to have marked effect on the supply of capital For several reasons the effect of the news was aggravated. For one reason 1t recent large Issues of capital have come unheralded by conjecture or accurate forecast. There has been no recent dis cussion of an important additional is contrary 1t has been regarded as in the position of having already supplied most Of it's requirements. This was the m impression created by the official ai given out at the time of the sale of Paris last year. The sale tof large folk and Western stock W out % of the treasure in the meantime have caused q belief that even the additional needs then indicated had been partially sup piled. The revelation that instead the company felt in need of power to raise $200,000,000 was accepted as an &C., knowledgment that the actual necessi- ties had been widely underestimated. liar miscaiculations might be supposed in the case of other railroads, as the pressure of traffic on available facili- ties has been by no means confined to the Pennsylvania Railroad. Mean time news continued to come to hand of the issue of long term notes by railroad companies on basis of 5 per cent. or upwards to supply immediate needs and avoid the necessity of an at- tempt to sell permanent securities in the present unpromising condition of the security market. The most vul- nerable points In the days market were stocks which might be assumed to be most affected by possible need of ad- ditional issues, Canadian Pacific and New York Central next to Pennsylva- mia itself were most conspicuous. The Northwestern Railroad, which have un- dergone the effect of new capital de- mands were comparatively affected. The prospect of strong bank state- ment tomorrow was of little effect in checking the weakness in the stock market. although the money market was appreciably easier as result The flow of cash from the interior to this been heavy. estimates by the banks themselves pointing to rceipts on bal- 'ance of about $9,000,000. In addition, the subtreasury operations have yield ane oankn sum of heavy debit balance of the sub -treas- ury at the clearing house today which was over $2.00O.000 was largely due to QlsOuFScfuGHtS lOT VI lU0 malls and does not figure in the esti- mate for this week. The stock mar ket liquidation of the week would op- crate to reduce the ioan Item. but the effect of the purchase of notes of vari- ous corpcfations which has been made during the week can only be conjec- tured. The prevailing feeling over, the enormous capital requirements over hanging the money market preciudeo any favorable considerc ton of the
 more imsediate replenishnlent of the money market which is promised. The vigor of the rally late in the day was a testimony to the dimensions of the bear interest left uncovered as re- suit of the early rush to sell. The se- verest pressure was felt during the first hour when Pennsylvania touched 135 1-4, an extreme decline of points. St. Paul was strong on the rally and the tone was strong throughout the list at the closing.
 Bonds were irregular. Total sales par value, $2.21s,o00. U. s. old As cou- | pon advanced IA per cent. on call.
 NEW YORK CLOSING STOCK LIST.