The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-30
SMALL AMOUNT
WILL BE ISSUED
Not Over S25, 100000 of the
Certificates of Indebtedness
to Be Allotted.
RAISES PER CAPITA COST
coRTELYoU FIGURING HIMSELF
OUT OF THE HOLE.

ing Of allotments of the S-per-cent one
year certificates was definitely an
nounced by Secretary Cortelyou today.
He declared that no allotments had
been made or would be made after his
announcement of Wednesday night
that no further subscriptions would be
considered. The point was not quite
clear until his statement today that
some allOtments might not be made
from subscriptions already in hand on
Wednesday. AS the matter stands
practically all the allotments are to
national banks which have agreed to
take out circulation, and in the ma
jority of cases have indicated a will
ingness to surrender the certificates
before maturity upon payment of ac-
crued interest on the date of redemp-
ton. Information was still withheld
at -he treasury as to the amount of
the allotments made but such infOr-
nation as is obtainabie indicates that
the total will not materially exceed
sos COO, 600
Calculating the Cost.
If this proves TO be the case, and a
considerable portion of the certificates
are delivered IN the condition that
they shall be surrendered i'll six
months with interest to that time, or
even for a shorter period. it becomes
possible to calculate roughly the cost
of he issue i'm interest. There appears
TO be no doubt that by far the larg-
est par of the amount allotted, prob
ably at least three-f1fths is subject to
redemption, with accrued interest
within three months. On the basis of
an issue of S25, 600 600, this would
amount to the redemption of S15,OOO,OOO
with interest TO the amount of IL per
cent, which would require $225,0OO for
the interest payments. If $4,000, coon
of the certificates ran the full period of
one year, the interest payments at 3
per cent would consume $500, coo. These
two sums, therefore, making a total of
$685.. 900, would represent the entire cost
of the issue of certificates to the treas
ury outside the trifling incidental ex
penses of issue. This would be at the
rate of about 2& cents per capita
for the population of the United
States.
Panama Bond Subscriptions.
The offers for the Panama 2-per-cent
bonds are still reaching the treasury in
large numbers. They will remain I'M
opened until tomorrow afternoon,
when the receipt of subscriptions
closes. The number of bids closely ap-
proximates the number received for
the loan of July 20. 1906, when an offer
of $50. 0O0, 900 was subscribed to the
amount of S446, 100000 or about fifteen
times the amount offered.
Nothing is known yet in regard to
the amount of bids. which may differ
greatly from the amount in 1906 as the
result of a greater or less number of
large syndicate bids. 1t is hardly eX-
pected that the price obtained viii
equal that of 1906. which was 104.09 per
cent. but i'm view of the value Of the
bonds as security for circulation it is
expected that a fair premium will be
paid.
Trying to Prevent Expansion.
The limitation OF the one-year GER
tificates to S25, 00O 900 or less is regard
ell by bankers here as a wise step, in
view of its influence in preventing an
unnecessary expansion of bank note
circulation. The maximum expansion
possible upon the new issues will stand
at SO, 0OO.O 600 instead of $3.50, 100000, as
was possible if the amount first sug
gested had been allotted and il Is not
believed that anything like this maxi
mum will be attained. If 500 000.00 in
new bank note circulation is secured
by certificates subject to call next
spring. this amount can easily be re-
tired without imposing so serious a
burden upon the banks as if the amount
dealt with were larger.
The treasury working balance. ac-
cOrding to the terms of deposit which
have been officially announced. will be
increased about 81. 00O when all the
new securities are delivered. This rep
resents 10 per cent OF the amount of the
Panama bonds and One-quarter of the
II -.
The balance today was reduced to less
than S55OO,OOO, but this ignores the
large fund of cash held against out
standing checks and other similar liza
biIities. Internal revenue receipts have
fallen off this month as compared with
the same month year ago by about
81 ,065, 900. and customs receipts by
about So, 1000. 000 A part of this decrease
is due to the difficulty of obtaining cur
rency for making payments which
would otherwise be made, but it is an
ticipated that a considerable part is
due to actual decline in business.
Listens and Looks Wise.
Secretary Cortelyou continues to lis
ten attentively to representations in re-
gard to the currency measures but does
not commit himself beyond the general
necessity for intelligent legislation. The
project of a central bank of issue seems
TO have many supporters among bank
ers and members of congress arriving
here, and it is already certain that sew
eral comprehensive bills on the subject
will be introduced. One of these will
probably embOdy the views of George
f. Roberts, president of the CONNER
eial National bank of Chicago. who
with Comptroller Ridgely is among
those who have recently became con-
WINGED that such a measure is the best
cure for monetary difficulties.
Chicago Ready to Resume.
A report. reached the treasury de-
partment today that the Chicago banks
would resume currency payment next
Monday. In commenting on this fact,
Secretary CortelyOu said that his in
formation was that the New York
banks were daily increasing their cash
and that the banks in all
the great money centers were gradually
getting back to normal conditions. In
nearly all sections Of the country re-
serve banks were meeting drafts sent
by their interior correspondents on ac-
count of internal revenue and other
receipts, evidence Of which
is shown in today's treasury statement
which shows customs receipts to have