Evening star., 1907-11-18
Administration Tries to Draw
Out Hoarded Money.
FUNDS FOR MOVING CROPS
Securities May Be Used for Increas-
ing Bank Circulation.
APPEAL TO PUBLIC GOOD SENSE
The President Points Out the Pros
perity Of the Country and Calls on
People to Employ Their saving1

| Secretary Cortelyou has made
1.-THE important announcement that
las a means OF affording relief to the
| financial situation the Treasury
Twill issue $5o,ooo,ooo Of Panama
lbonds and $Ioo,ooo,ooo certificates
Iof indebtedness, or SO much
|thereof as may be necessary. The
| certificates will run for one year
and bear ; per cent interest.
| The Secretary's action in CON-
| ing to the relief OF the financial
situation meets with President
| Roosevelt's hearty approval. and
the plan is the outcome OF the
several White House conferences
which have been held within the
past few davs, when the financial
situation was under consideration.
| Secretary Cortely3u says that the Pan
ANA bonds will afford most substantial re-
lief as the law provides that they may
| be used as a basis for additional national
bank circulation. He also states that the
proceeds from the sale of certificates can
be made directly available at peints where
the need is most Urgent. and especially for
| the movement of the crops, which, he says.
If properly accelerated will give the
greatest relief and result IN the most I'M
mediate financial returns" The Secretary
calls attention to the attractiveness of the
| q 6 absolutely
| Investments.
Secretary Cortelyou adds that these re-
lief measures will enable him to meet pub
l4e expenditures without withdrawing Tor
that purpose any appreciable amount of
the public moneys now deposited In ma
tional banks throughout the country. Two
Treasury circulars, one inviting proposals
for the issue of bonds and the other ask
| ing for subscriptions to the certificates.
will be sent out under date of November
lis.
| La his .etter to Secretary Cortelyou ap-
proving the Treasury plans President
Roosevelt states that he has been assured
that the leaders In Congress have under
consideration currency measure Whlch
win meet in permanent fashion the needs
of the situation, end which, believe. will
be passed at an early date after Congress
convenes two weeks hence" The Presl-
dent also calls attention to what ts need
ed most at this -ume-that the people
should realize now fundamentally sound
| business conditions in this country are.
and how absurd it is to permit them
selyes to get into a panic and create
stringency by boarding their savings. in
stead of trusting perfectly sound banks"
The Presidents Letter.
The Presidents letter to Secretary Cor
telyou under date of Novembsc IT fol-
lows:
| WHITE HOUSE.
| Washington November II, 1907.
| My Dear Mr.. Corteiyou:
| Il have considered your proposal. I
/ approve the issue Of the fifty millions
| of Panama bonds. which will be imme
diately available as the basis for addi-
| tional currency. l also approve the
] issue of $100.G00.O98, or SO much as
/ you may find ne cessary. of fifty-doilar
| three percent intere st-bearing govern
ment notes the proceeds OF the sale Of
! which can be at once deposited by you
! where the greatest need exists, and es-
peeialiy in the west and south. where
| the crops have to be moved. have
| assurance that the leaders of Congress
! are considering q currency bill which
/ will meet in permanent fashion the
needs of the situation. and which,
believe. will be passe at an early
date after Congress eonvenes two
weeks hence.
| Absurd to Hoard Savings.
What is most needed just at present
y is that our citizens should realize how
! fundame ntally sound business contii-
/ tions in this country are. and how alb
| surd it Is to permit themselves to get
| into panic and create a stringeaey
by boarding their savings instead of
| trusting perfectly sound banks. There
| is no particle of risk involved in let
| ting business take its natural course.
| and the people can help themselves
| and the country most by putting back
| into circulation the money they are
! boarding. The banks and trust COM
panies are solvent. There Is more cur
| rency in the country today than there
was month ago when the supply
! was ample. F1fty-hve millions OF dol
| lars in gold has been imported. and
| the government has deposited another
| $6o,CO0GO. These are facts. and 1 ap-
| peal to the public to cooperate with US
| in restoring normal business conditions
! The government will see that the peo-
pie do not suffer if only the people
| themselves will act in normal way.
/ Crops are good and business conditions
| are sound; and we should nut the
| money we have into circulation in Or
| der TO meet the needs of our abound
/ ing prosperity. There is no analogy
| at all with the way things were in
| 1893. On November 80 Of that year
! 600 in gold. On November 16 Of this
| year Their was in the Treasury $904,-
UsI.0O0 of gold. Ten years ago the cir
culation per capita was $23.23: 1t is
/ now $3i23. Tie steps that you now
/ take, the ability of the government to
back them up. and the fact that not a
! particle of risk is involved therein
| give the fullest guarantees of the
| sound condition of our people and the
/ sound condition of our Treasury All
thai our people have to do now is to
go ahead with their normal business
/ in normal fashion. and the whole
difficulty disappears; and this end will
| lie achieved at once if each man will
i act he normally does act and as the
real conditions of the eountry's busi-
/ ness fully warrant his now acting
Sincerely yours.
I (Signed) THEODORE ROOSEVELT"
Statement by Mr.. Cortelyou.
/ Upon receipt of President RooseyeIt's =
letter of approval today the following
statement was issued by the Secretary of
the Treasury:
The available cash balance of the
! Treasury amounting to $040 1S6 12l SS