Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-22
NEW TREASURY
CERTIFICATES
IN DEMAND
DEPARTMENT FLOODED
WITH APPLICATIONS
Secretary Cortelyou Carefully
Scfutionizing Bids With View
10 Placing Loan Where It
win Have Best Effect,

ny Morning Journal Special Leased Wire.
Washington, Nov. zI-AHnounce-
ment was made by Secretary tortclypu
this afternoon that nllotmeDts had al
ready begun of the new One-year treas
ury certificates for which subscriptions
were invited in the circular Of the
treasury department. Issued on Mon
day. Allotments OF the 2 per cent
fanama bonds will not be- made. ac-
c0fding 20 the terms Of the circular
relative 10 them, until after all bid
are submitted at the close OF business
on November 80.
The secretary minated this after
noon that applications for both bonds
and certificates were being received IN
satisfactory amounts. but he was not
prepared as yet To disclose q volume
Of subscriptions and allotments. one
reason for this Is understood 70 be that
there are 30 many inquiries for iHf0r-
nation from persons who do not sub
mir definite subscriptions.
Another reason is that aliotmenta
are being made with a certain degree
OF discrimination where II Is believed
they Will have the most effect upon
the money market.
Secretary Cortelyou was shut up
nearly an dag studying the situation
aud condition Of allotment.
The discretion reserved In his or
iginal one Of the . per cent certih-
Gates that $50. 0O0, 900 VIII be allotted
by the secretary IN his discretion upon
offers OF subscriptions offered TO him
had brought a great variety OF orders
and suggestions. although IL Is some
what difficult 10 choose aa to those
most advantageous To the government
ana the financial situation. II * not
expected that these offers viii embOdy
a premium yer the purchase price.
because ~ the short term for which
they are run and the provision Of the
circular that they are offered az par.
The most essential elements 10 be- con-
sidered are the amount Of cash re-
ceived ia be paid into the treasury
and " national banks taking the GER
tihcates VIII employ them 10 increase
circulation. The secretary Is almost
compelled by the terms Of the law un-
der which the certificates are Issued 20
retain some part Of the proceeds in
the treasury, since the law authorizes
thelr issue a. meet extraordinary ex-
p~euditufea.
The nominal cash balance 81 the
treasury stood to-day at only &S.ab2.4i2i
after deducting the amount 81 public
money on deposit ia national banks.
Thie Is obviously below the working
requirements o. the treasury and the
secretary might md ample justification
against criticism To- congress in the
fact that be needs cash to recoup his
balance.
The matter ~ aiiotments Is proving
n somewhat delicate one. and care isl
being taken 10 avoid any well founded
charges Of favorltism. 1t H. felt az the
treasury. however. that no just crifi-
cism VIII lc against the action of the
secretary " allotments are based chief
upon definite and binding nssur-
ances by national banks that they VIII
take out Of circulation "a the fun
mount of the certificates allotted
them. The proposal To- threaten banks
take away their public deposits II
they do not comply with the wishes
the secretary OF the treasury has
not been considered at the depart
The fact that the circulation
the certificates can be retired within
q year without regard 90 the limit Of
million "A month imposed upon re-
classes Of bonds VIII enable the banks
Ia expand M much as they desire 10
meet the present emergency without
being oadcd down with circulation. /
which they cannot retire or otherwise
employ when the supply OF money be-
comes abundant. IN this respect the
that the limit on retirement does
apply 10 bonds which have been
called Ton redemption gives a peculiar
character 90 the une-year certificates
and the circulation which may be-
based upon them makes such clrcula-
lion more elastic than would be- the
on ordinary classes or bonds.
The secretary Of the treasury stated
this evening that subscriptions To- the
, per cent certificates were being re-
Ia large numbers and that the
itsue was already a most successful
one In addition 10 the subscription
from individuals. many OF the national
depositaries. especially la the
crop moving sections Of the south and l
are ayailing themselves OF the
opportunity % purchase the cortin-
rates.