Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-26
new LOAN NOW
ASSURED OF
SUCCESS
TREASURY SWAMPED
WITH APPLICATIONS
AIIotments So Far Confined to
Banks Who Desire to Use the
Bonds As Basis of Additional
Circulation,

Try Morning journal Special Leased wire.l
Washington, Nov. ga more con-
I fdent tone in regard TO the success Of
/ the new loans prevailed at the treas
I ury department today than at any
: time since the announcement of the
loans a week ago The visits of Mr.,
Morgan on Friday and saturday We're
4 followed today by a visit from James
y. Forgan, president of the First Ma
! tional Bank OF Chicago Mr.. Forgan
saw the president. Secretary cortel-
| YOU and Treasurer Treat, and ex-
pressed his belief that the banks
| throughout the country would soon be
In a position to resume cash pay
ments. The subject Is of peculiar In
terest to the treasury officials, be-
cause for nearly "A month government
receipts have been declining as a d.
rect result of the scarcity Of currency
Distillers, brewers and others who are
required TO purchase Internal rev
anue stamps have not been able to
secure currency In sufficient quantities
from the banks with which to pur-
chase these stamps and as the collect
Ors are not allowed under the law to
received certified checks or anything
but lawful money. except at their per-
sonal risk, the result has been that
even sufficient amount OF stamps 70
cover immediate needs has been diff
cult to Obtain. The government Is in
sisting that depository banks shall, as
soon az possible, meet the demands FOR
currency In this respect. There seems
to be a general desire among the
bankers in New York, Chicago and
other sub-treasury cities and financial
centers to resume currency payments
at the earliest possible moment, and
Mr. Forgans visit was made with
! view of learning the views Of the
treasury officials on this particular
subject.
Mr. Forgan reported that the Chi
cago banks would be able to resume,
ron an understanding with the banks in
other cities. within the next week or
\ ten. DAYS at the latest Minneapolis
land ST. Paul banks, he satd, were
quite ready 90 resume at any time, and
might take the initiative In this re-
spect very soon u IN believed among
the treasury officials that a complete
understanding was arrived al sljet ween
the banks Of New York. philadelphia.
Baltimore, Cincinnati. Chicago. St.
Louis, New Orleans and Nan Fran
cisco. by which there will be general
resumption of currency payments
within the next few days und possibly
before the close Of the present week.
The reports received at the treasury
department from Chicago, New York
land Boston that currency payments
are on the increase and that the sit
uation at these cities and In fact all
'other points is rapidly improving.
1t is learned that New York and
Chicago are at present making daily
shipments of large sums TO the crop
moving centers Of the west and south, |
and Il is confidently believed that
these shipments will be continued In
increasing amounts until normal con-
ditions are again reached or until the
necessity for them has passed
In uHAIffnn 10 thu hiurn SION Of Qh
resumption Mr.. Forgan left tangible
evidence of his visit in a subscription
by the Chicago clearing mouse banks
tor 81. 500 0e0 of the new one-year
certificates Additional amounts or
these certificates are steadily coming
to the treasury az security for bank
note circulation These represent al
lotments made by Secretary Cortelyou
about the middle OF last week.
subscriptions for the Panama per
cent bonds are also arriving In large |
numbers. These subscriptions are 50 |
numerous that II Il not expected that |
ID will be possible TO open. schedule 4
and classify the bids before closing |
the treasury department on Saturday |
night after the time for subscriptions /
expires at noon. II may indeed re- /
quire more than one day to complete 4
the classification and com parisOn or 4
bids In order to determine which bids
are the highest.
The daily cash statement Of the
treasury does not yet show the effect
Of any considerable payments for the
new certificates. This Is partly be-
cause only % per cent OF the face
value Of the amount sold is paid into
the treasury in cash. while the remain
ing rs per cent is left with the banks
ON deposit IL Is also due In a con-
siderable measure to the time requir- 4
ed for advices from one office TO an
other Of the transfer OF funds.
Although applications and cash de-
poslts for the new treasury certificates
are being received at the treasury In \
increasing numbers from individuals
as well az from national banks. IL is
learned that no allotments have thus
far been made except to banks that
desire 10 use them as a basis for cir
culatidn All applications received
from Individuals and from banks
whose limit under the law has been
reached are being laid aside for the
time being and II allotmefits are made
to them al an. ~ Is believed II viii
moi be as long az the present strong
demand continues for them from
banks desiring them for circulation
purposes The declared purpose of
Secretary Cortelyou In issuing the GER
tificates was 10 Increase the Volume
OF outstanding currency. and this OBJ
fect u Is said, can be accomplished
notes. and for the present az least the
= fforis 81 the treasury officials viii be
IN that direction.