Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-11-23
Many Subscriptions for 3 Per
Cent Certificates.
ISSUE DECLARED SUCCESS
How Bank Circulation Will Be In
creased.
TO RETURN PURCHASE MONEY
Only IS Per Cent Will Be Retained
by the Treasury-Bids for the
Panama Bonds.

The Secretary Of the Treasury says that
subscriptions to the 3 per cent certificates
are being received in large numbers and
that the issue is already very successful
one. In addition to subscriptions from In
dividuals. many Of the national bank de-
positaries in the crop-moving sections of
the south and west are availng them
selves Of the opportunity to purchase
these certificates, receive a large portion
of the proceeds as a deposit upon APP
proved securities. and increase their cir
culation to the amount Of the registered
certificates, in the discretion Of the Secre-
tary of the Treasury. The beneficial re-
suits of this increase in circulation will
be promptly felt at points where 1t will
be most helpful. and the government will
be enabled to make it's collections and
expenditures In such manner as not to be
disturbing factor in business operations.
National banks entitled to do so. will
be allowed to increase their circulation
by depositing currency for Treasury GER
tificates, which, however, would be re-
tanned in the Treasury as security for
the increased circulation. simultaneously
the Secretary would redeposit with the
purchasing bank upon state. municipal
and railroad security 70 per cent Of the
amount of currency put up for certifi-
Gates. AS an illustration 1t is stated that
a bank wishing to increase its circulation
by 100000 would deposit that amount OF
currency when it would be allotted $780,
600 in Treasury certificates. These would
be retained in the Treasury as security
for the 100000 additional circulation. or
the 100000 in currency paid In for the
certificates the Secretary would imme-
diately redeposit with the bank Is per
cent or $4,000. BY the transaction the
bank would pay in 100000 and receive
100000 additional circulation and pub
lie deposit of $4,000.
The Secretary also stated that bank
not entitled to additional circulation could
put UP currency for certificates and re-
ceive in return as a public deposit % per
cent of the currency so deposited on APP
proved state, municipal and railroad Sc
curities. AS to the purchase of Treasury
certificates by individuals the Secretary
authorized the statement that the de-
partment would endeavor to restrict al
lotments to persons who had drawn the
money from the banks for the purpose Of
making the purchases.
would be encouraged to invest in the GER
tificateS.
Bids for Panama Bonds.
The bids for the Panama 2 per cent
bonds are being kept sealed until the
TINA for closing the receipt of bids. which
is week from today. This prevents any
calculation as to the amount subscribed
for or the prices offered, but the num-
Der of offers is already sufficient to in
dictate a quite general response from
the banks Of the country. Although the
envelopes have not been examined to
Loft ina fha Nf ha 10
believed that they will come from ma
tional banks to a larger extent than the
subscriptions for the one-year certif1-
Gates. because the Panama bonds. with
their low rate of interest. offer less at
traction to private investors than to ma
tional banks, for whom they carry the
privilege of increasing their circulation.
In the case of the certificates, as well as
the bonds. assurances have been receiv-
ed that large offers will be made next
week, when money market conditions
will be more fully developed than at
present.
Among those who have recently called
on Secretary Cortelyou is Mr.. Sol WEEK
National Bank of New Orleans Mr..
Wexler reported that the cotton move
ment was going forward remarkably we'll
under the adverse conditions prevailing.
The New Orleans banks are supplying
currency to the cotton-growing districts
and at the same time are maintaining adj
equate cash reserves. 1t is desired, how
ever. to obtain all the assistance posi-
BILE from the Treasury. in order to pre-
ven; a deficiency of currency. which
would congest the cotton crop at south
ern points and prevent the drawing of
bills against shipments to Europe. Thus
far the difficulty In disposing of bills for
cash at New York, which was somewhat
acute two or three weeks ago, has been
largely overcome. partly by an improve
menr in the general situation and partly
by direct dealings with Europe.
Suggestion for Legislation.
A great variety Of rumors is in circu-
lation in regard to the purpose Of the
President and Secretary Cortelyou in re-
gard to currency legislation. Suggestions
such as the insuring Of deposits In ma
tional banks, which Mr.. Bryan has just
Endorsed, the issue Of additional bank
notes against state and municipal bonds,
and the requirement of interest on gov
eminent deposits in the banks are re-
ported to have been presented to members
of the administration and to have been
favorably received. The fact appears to
be, however, that the President and Sec
rotary of the Treasury are simply assum-
ing receptive attitude and are listening
to all suggestions which are made to them
without committing themselves to any
The President last year spoke in his mes
sage or the plan OF an emergency circula-
ton based upon securities. but did not
commit himself 70 it. According to the
best Information which can be obtained,
the Secretary will lay decided stress upon
the Importance Of legislation to improve
the condition of the currency, but will
avoid laying down a hard and fast plan.
Several preceding Secretaries from Mr.
Window to Mr.. Shaw. have presented
definite plans to Congress, but the ulti-
mate result has been that they have either
not been acted upon or have been greatly
modified by the respective committees.
Only few members of Congress have
thus far reached the city. and while sew
eral Of them have made interesting sug-
gestions regarding the currency the lead
ers speak in conservative strains and seem
| to prefer to await the expression of the
country before committing themselves to
particular measures.
| MAYFLoWER DESCENDANTS.