US Presidency
1908

Our imperfect currency system has made these proceedings necessary, and they were effective until the monetary disturbance in the fall of 1907 immensely increased the difficulty of ordinary methods of relief. By the middle of November the available working balance in the Treasury had been reduced to approximately $ 5,000,000. Clearing house associations throughout the country had been obliged to resort to the expedient of issuing clearing house certificates, to be used as money. In this emergency it was determined to invite subscriptions for $ 50,000,000 Panama Canal bonds, and $ 100,000,000 three per cent certificates of indebtedness authorized by the act of June 13, 1898. It was proposed to re deposit in the national banks the proceeds of these issues, and to permit their use as a basis for additional circulating notes of national banks. The moral effect of this procedure was so great that it was necessary to issue only $ 24,631,980 of the Panama Canal bonds and $ 15,436,500 of the certificates of indebtedness.