New-York tribune., 1907-11-29
NEW NOTE ALLOTMENTS.
TO BE ABOUT S35, 900 400.
Treasury PrOridiHg against Posi-
bic Initiation of Currency.

Washington Nov. 2S.-SeCretary Cortelyou's
announcement last night that further subscrip-
tions to the One-year Treasury certificates
would not be received is regarded here as in
dicating that the Secretary considers the crisis
in the money market practically over. Official
figure OF the amount of certificates allotted
have not yet been siven the Treasury. nor
has il been stated whether further alIotments
would be made for subscriptions already re-
ceived. The amount of aIlotments made how
ever is 10 be about S35OOOOOO and this is
probably the limit. unless strong reasons are
given by banks which have already sent in sub
scriptions why aUotments should be made 20
them. All individual subscriptions having been
rejected, it is expected that nearly the whole oi
the $50 100000 allotted will be used to secure
new issues of bank notes. As these issues viii
be retired within less than a year. they viii
not constitute permanent imitation of the bank
note circulation.
The effect of the new loans on the future Ct
the Treasury resources and the money market
is already receiving attention at the Treasury
Department and in banking circles From pres
ent sources Of information. the amount nominal
" added u the cash balance of the Treasury
will he about SS5.OO0OOO. of which SjOOOOO0d
will represent the Panama bonds and 25OOO.-
O.o the certificates. This amount would in
crease the present nominal balance from about
S24t. .293. .217. where II stood yesterday. TO a
little more than SS25. COCOON. 4 small additional
anlot will be derived from the premium on
Panama bonds. but this will not exceed $500
Ot1
THE TREASURY'S BALANCE
with nominal balance. however. of rnors
than S325O00OOO the Treasury viii not have
anything like thar amount Immediately avail
able Deposits in national banks and other
items amounted yesterday TO S234 9.5Ss. leav-
ing actual working balance of S646362S
The Secretary has announced that 30 per cent
of the payments for Panama bonds and about
a. per cent of the payments for certificates will
he left on deposit with the hanks. The effect
of these changes in the Treasury balance sheet.
on the basis Of issues of both classes OF Sc
curities TO the amount OF SS5.OOOOOO, win he to
increase the deposits in banks to about $780,
O00OOO and the working balance to about ST.
OOOOO0
This condition of the Treasury finances will
he changed materially in the spring if Secretary
CortelyOu is able to carry out the programmes
of retiring a considerable portion of the certifi-
Gates before maturity. He will have diff
Guilty in doing this and saving a considerable
proportion of the interest them if agree
ments made with the banks can be carried out.
1t seems probable that money market cOndi-
tions will be such thar the Secretary will feel
justified in calling on the banks for more cash
Gates which are called and surrendered
MAY REDUCE DEPOSITS IN BANKS.
II is considered highly desirable to reduce de-
posits in the banks soon as money market
conditions permit, and it is believed that there
viii be little difficulty in doing If the Treas
urv can reduce these deposits to the neighbOr-
hood of S2OOOOOOU0 in the spring it will have
at command about S1O0OOOOO0 as working
balance. from which deposits could be made
from time to time to aid in the crop movement
in the fall if they should be required
The policy of the Treasury in providing for
redemption of the certificates IN less than one
wear will involve the elimination of the bank
note circulation based on these certificates and
a considerable withdrawal OF cash from the
hanks into the Treasury. The fact that the
limit of S9OOOO0O month imposed ON the re-
tirement of banknote circulation does not apply
TO notes based on securities called for Tedemp-
ton removes any obstacle to the prompt retire
ment of excessive banknOte issues by the pay
ment of lawful money into the Treasury as soon
as the securities are called in
The estimates made in regard to the Treasury
cash balance are based on the assumption that
receipts for the remainder of the fiscal year Will
equal expenditures. Last year the corresponding
period showed a surplus OF about S42,OoOO0O.
but this surplus promises to be nearly wiped out
by the increase of expenditures and by the fall
ing Off OF receipts the result OF relaxation IN
business activity The payments for Panama
Canal construction go into ordinary expend.-
lures under the head of public works. although
the money for meeting them is obtained by spe-
cial bond issues. From present Indications.
therefore the Treasury will not only have ample
cash at command in the spring, but 1t is be-