New-York tribune., 1907-11-23
BANKS KEEP Is PER CENT
USE OF CERTIFICATES.
Secretary COrtelyou's Liberal Offer
Success of Issues 1Ssured.
IFrom The Trihnne Rnrsnn I

TFron The Tribune Bureau
Washington. Nov 22-SeCretarv COYteIyou
said TODAY that the bond and certitcgte issues
announced last Monday were already an assured
success, II is apparent that most Of the certif-
Gates viii be sold 10 banks. although reason
able proportion win go to private bidders: but
an effort viii be made to discourage people from
Withdrawing their money from banks to buy
certificates. 1t is desired TO sell TO individuals
only where the sale will bring boarded funds
from deposit vaults and other hiding places
Explaining the use OF the certificates. the Sec
retary said that banks wishing to increase their
circulation could buy certificates. pay % per
cent Of the purchase price in cash. and retain
75 per cent deposit to the credit OF the gov
ernment depositing the usual approved securi-
ties collateral for the federal deposit Against
the certificates the bank could issue circulation
to the amount of their face value, provided. Oc
course. that such issue would not result In
greater total than Is authorized by the law
which limits the circulation OF every national
bank the amount of it's capital stock There
fore. the national bank which purchases s1,0OO.-
600 worth OF certificates may deposit s25O.00o
and place s75O.OOO to the credit of the govern
ment. depositing approved securities as collst-
eral for the S75OOO0. It may then transfer its
certificates 10 the circulation account and take
out 100000 circulation. always provided that
its total circulation does not exceed the legal
limit.
The offer 70 permit 70 per cent OF the purchase
price OF the certificates 70 remain with the pur-
chaser. il a national bank Is regarded as ez-
ceptionay liberal and will. it is believed. insure
the prompt purchase of the entire s1OOOOo.Ooo
certificate issue. much thereof as the Sec
retary may deem 1T wise to issue. The eertiA-
Gates can however, be used basis for cir
culation only when registered. and as the regis
try is optional with the Secretary. he retains
full control over the transaction throughout ths
entire proceedings
II was announced at the Treasury Depart
ment to-day that anotnents OF the new certif-
Gates will be made by the Secretary personally.
but that the notices OF his action will be mailed
from the nearest sub-treasury to those tn
whom the allotment is made. Applications for
certificates and bids for bonds are arriving IN
increasing numbers. and while the bids for the
bonds will not be opened until November 81.
their number as we'll as official advices from
persons sending them clearly indicate that the
issue will be fully subscribed
In addition 20 subscriptions from individuals.
many of the national bank repositories in the
crop moving sections OF the South and West
availIng themselves of the opportunity to pur-
chase certificates and increase their circulation.
The beneficial results of this increase will bs
promptly felt at points where 1t will be most
le4pLul anu I4lS soNcLllII4Siil N444 Do OI0SAoU
make it's collections and expenditures not
TO be disturbing factor in business operation.
TALK OF CURRENCY LEGISLATION
Many and various runors are in circulation
in regard 20 the purposes Of the President and
Secretary cortelyou currency legislation
Suggestions such as the insuring OF deposits in
national banks. which Mr. Bryan has just in
dorsed. the issue OF additional hanknctes
against state and municipal bonds and the re-
ouirement Of interest on government deposits In
the banks are reported TO have been presented
~ members OF the administration and 70 havs
been favorably received The fact appears 20
be- however. that the President and the Secre-
tary of the Treasury simply assuming A
receptive attitude and listening 70 all sugges-
tions which are made 70 them. without COM
rittins themselves 10 any The President last
year spoke in his message OF the plan Of an
emergency circulation based securities. but
did not commit himself to it, According to ths
best information which can be obtained. secTs-
tary Cortelyou will lay decided stress on the
importance OF legislation to improve the condi-
tion OF the currency. but will avoid laying down
a hard and fast plan. Several preceding secre-
taries, from Mr.. Window TO Mr.. Shaw, have
presented definite plans to Congress, but the
ultimate result has been that they have not
been acted on or have been greatly modified by
committees. Few members Of Congress have
reached the city. and while several Of them
have llde interesting suggestions regarding
the currency the leaders speak in a conservative
manner and seem to prefer 10 await the cN-
preston Of the country before committing them
selves to particular measures
Among those who called Secretary Cor
telyou to-day was Sol Wexler. vice-president OF
the whitney-Central National Bank of New Or
leans Mr.. Wexler reported that the cotton
movement was going forward remarkably we'll
under the adverse conditions prevailing The
New Orleans banks supplying currency to
the cotton growing districts and at the sams
time maintaining adequate cash reserves. They
desire. however to obtain all the assistance pos
sible from the Trea sury. in order 70 prevent a
deficiency OF currency which would congest the
cotton crop at Southern 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 over
come partly by improvement in the general
situation and partly by direct dealings with
Europe.