New-York tribune., 1906-07-03
PANAMA CANAL BONDS.
no BUN THIRTY YEARS.
First Issue of $4,000, Secre-
f0rv ShGsc Announces Conditions.
rFrom The Trihune pnreau.1

-z-osbineton, July 2-The Secretary OF the
--.asury announced to-day the first issue Of
-,onana Canal bonds. to the amount OF $780,
nooGoo. at per cent interest. These bonds
rv-ere authorized by the Spooner amendment. ap-
,voved June 20 1906. but because no provision
-as made relieving them from the full rate of
..xstjon the bonds would not have been avail
sble as q basis for bank circulation, and it was
deemed advisable to postpone the issue until
law was enacted placing them par with all
other bonds in so far as taxation is concerned.
These bonds will run for thirty years. but will
contain a provision making them redeemable at
any time after ten years, at the option of the
government. All persons may bid for the bonds
sb,ch Will be issued in denominations Of $20
500 and $1,000
The announcement issued by Secretary Shaw
Is as follows:
once Of the Secretary.
The Secretary Of the Treasury offers 10 the pub:
Uc S3000O00 Of the bonds of the Panama Canal
June 2s 1902 ana supplemented by Section Of the
s The bonds viii bear interest at the rate of per
cent per annum, will be dated August 1, 1906, and
te - November. February May and August They
vii be issued in denominations Of $50 500 and $1,000
Of coupon bonds and Of $50. Sl0O $1,000 and $1,000
of registered bonds. They viii be redeemable in
states after ten years from the date of their
issue and will be PAYABLE thirty years from such
Of the United States, as well as from taxation in
snboritV They viii be available to national banks
as security for circulating notes upon the same
The semi annual tax upon circulating notes based
upon me sala 6onqS as security % VIII De one.fourth
other United States bonds. as security for public
The law forbids their sale at less than par and
provides that all citizens Of the United States shall
have equal opportunity to subscribe therefor
In pursuance Of the above announcement the Sec
Tetsry invites bids for the bonds heretofore de-
ecrbed. which must be submitted to this denart-
or before July 30. 1866. The bids should
serer. tie price he is willing to pay and the place
where he desires TO make payment, whether at the
some Of the assistant treasurers at New York
mas eboIa he s56reeSe5 20 45 % s rTanclsco an
Treasury Division of Loans and Currency, and the
sRysoPes I1cosng them should be plainly marked:
Upon receipt and classification Of the bids hereby
invited the successful bidders will advised of the
ed as 70 the date upon which payment is desired 10
be mace II the Treasury or some Sub-Treasury of
IN considering bids the bidders offering the high
or more bidders offering the same price those ask
ing for the smaller amounts Of bonds will receive
ight 70 permit bidders ofering the highest prices
The department also reserves The riCbf ~ ra1eo.
any or all bids. if deemed be TO the interests Of
The bonds viii be ready for delivery about
Prospective bidders desiring information not con-
sneq n ms CIRCULAR may address the Secretary Of
Washington. the Assistant Treasurers at Chicago
st Louis New Orleans or San Francisco.
l. NJ SHAW. Secretary.
II IS assumed that there will be another issue
Of these bonds at no distant date as the sum
expended on the canal has already considerably
exceeded S300O0O0O. and the law provides that
the sums already expended shall be returned to
the general fund in the Treasury out of the pro-
oeeds Of the bond sale.
The SS001o000 Panama bonds that Secretary Shaw
offers for bids to be submitted before July 20 are
part Of the issue OF per cent thirty-year bonds
authorized by the Spooner act. under which the
construction of the Panama Canal is proceeding.
Tie law requires that they shall be sold at not
less than par. They are, under a law passed by
Congress early IN the last session. the same
footing IS oonsols 1890 security for circulation
and for United States deposits, and it is expected
that with this advantage they will sell at parity
with consols Of 1880. which quoted at 1914
70 ls for registered and 104 TO 1913 for coupons
Il is thought probable that the purpose OF Secre-
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