Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-11-28
Subscription for One Year
Certificates Closed.
ACTION BY Mr.. CORTELYOU
Step Warranted by Improvement in
Conditions.
CALCULATING ON THE FUTURE
Probable Cost of the Recent Meas
ures of the Treasury Department..
Resumption of Cash Payments.

Resumption of Cash Payments.
Owing to the large amount of subscrlp-
tions received. the Secretary of the Treas
ury has announced that the subscription
to the per cent certificates of in
debtedness Of the act of June Is, 1898,
invited by the circular of November Is,
is closed, and that no subscription re-
ceived after the close of business yester-
day will be considered. The several as
sistant treasurers of the United States
have been instructed not to accept any
further offers The decided improvement
in business conditions throughout the
country makes it quite possible that the
Secretary will not extend his allotments
further than those already made.
there is no longer any doubt felt among
Treasury officials of the success of both
The loans-the Panama canal bonds and
the one-year Treasury certificates.
Cost of Measures Taken.
Calculations are already being made as
10 probable conditions in the money mar
ker next spring and the ability to call in
g part of the certificates. If the amount
issued should be only SOD, 900. coo, and half
OF these should be paid off in six months.
the interest charges would fall materially
below the S3.000,OOO originally calculated
upon the full issue for one year. The
sum of S25,U00,OU0 tor six months WOULD
draw interest to the amount of $4,000,
and an additional amount of s25,OO0,00U for
one year would draw SIJU.OUU making
total of 81, $4,000. This would be at the
rate of less than IL cents per capita
for the people of The country and it is
argued that this would be a cheap means
OF escape from difficulty even for the
numblest citizen. whose labor might be
aifected by the continuance of the crisis.
1t is possible that some of the certificates
could be called for payment within AMI
e:en shorter period than six months. 1t
will probably be the policy at about that
time, if conditions permit, to withdraw
come money from banks in addition to the
amount required to pay off the certificates
hut this will be done only in case the &C
tional bank note circulation, the deposit
or public moneys, and the liberation of
Boards. create a plethora of money in
circulation which calls for rectification.
The Treasury will be justified, in the opn-
ION of the officials, In adding to its work
ing balance as soon & money market con-
di,ions permit. about S17OO0.O0O will
promptly be added to this balance by the
proportions retained from the sale of
bonds and certificates next week but the
exact amount depends upon the amount
and terms of the allotment of the one
year certificates.
Increase in Circulation.
II the certificates are generally used to
increase bank note circulation this alone
will result in an addition of from
s30.00000O to $40 100000 to the currency
outside the Treasury. and with the gold
imports and the new bank circulation
81 will lra
more than s150, 600 900 to the new curren-
cy recently placed at the disposition of
the market. The nominal cash balance
o. the Treasury yesterday was $241 1893. 217
but this was subject to the deduction of
1883, $50 in banks and elsewhere, leav-
ing only s6.463, 62S as the apparent work.
ing balance. The cash actually held in
the Treasury stands at Sis, 43SO11, but
this is offset by outstanding checks and
other demand liabilities amounting to
$i12. 9s4, 1888. Receipts continue to fall be-
low the average of a year ago, but were
little better yesterday than for the cor
responding day last year. The month of
November thus far has shown surplus
of receipts of s2,931.645. against a sur
plus in November. 1906. of 81. 199, lat, but
this comparatively favorable result has
been obtained by keeping down expendi-
lures by more than $4,000 900 during the
month. although for the fiscal year be-
ginning July 1 there has been an in
crease in expenditures of more than
ST., 900, 900.
Resumption of Currency Payments
A letter has been received at the Treas
ury Department from one of the leading
bankers in Chicago containing informa.
ton about the efforts that are being made
in the west for the resumption of cur
rency payments. The letter says:
Il am feeling very much better about
financial SifIarinn N, Th1rr lou Of
last week at meeting of bany represent
atives l proposed that we each address
letter to every one of our correspond
ents in the country asking them to ad-
wise US about local conditions, and to give
US their views about the feasibility of re-
Stunning cash payments. This suggestion
was well received. and in separating il
was understood that every bank would
send out such letters. Later the Clearing
House Association concluded to send out
one general letter. The replies have come
In flood ard are of most encouraging
character. They uniformly report that
conditions are quiet and the people in
good temper: that they see no reason Why
they should draw upon their reserve city
balances more than normally. This being
true, there is no reason why banks in re-
serve cities should not resume doing bust
ness on normal basis. / feel sure that
when the clearing house gets in its full
returns the bankers here will be con-
WINGED of the wisdom of returning to cash
payments"
Opening Bids for the Bonds.
The Secretary of the Treasury Is making
arrangements for opening the bids for
Panama canal bonds, which were invited
by the circular of November IS, and which
are to be received until the close of bust
ness Saturday. At $50 pm. on that day
force of Treasury employees will begin
the opening and the work will be con-
tinued until all the bids are opened and
sufficiently classified to enable the Secre-
tary TO determine approximately the
amount of bids received. and. SO far as
practicable. the names of the bidders who
appear TO be entitled to allotment.
1t will not be feasible to admit the pub
lie TO the offices where the bids will be
opened, but sufficient number of repre-
sentatives OF the press will be admitted so
that due publicity may be given to any in
formation the Secretary may desire to
furnish.
AS already announced. the Secretary
Will in the case of any allotments made
to national banks. redeposit temporarily
30 per cent of the purchase price, and will
also make such arrangements with other
bidders to whom allotments are made as
will not disturb general business con-
ditions.