The Washington herald., 1907-11-19


New York. Nov 1S.-Bankers in this
city to-day made active preparations tc
subscribe for the $5O,O00O00 Panama 2 pei
cent bonds TO be advertised in the near
future, and for the 500 000,0 900 8 per cent
government loan certificates which are tc
10 be put out at once. No syndicate was
organized to take the Panama bonds, but
bankers We're certain that the issue would
be over subscribed.
a syndicate was organized TO take So,
00o000 Of the $4,000 600 loan certificates
and after an announcement from Wash
ington late in the afternoon, that the
lean certificates, like the Psnamas. would
be accepted as security of bank note cir
culation 1t was everywhere considered
certain that this issue also would be
largely over-subscribed and that there
might be necessity for syndicate action
That the Treasury Department would
accept the loan certificates on deposit
to secure circulation removed whatever
doubt may have remained as to the sue
cess of this flOtation. Even in normal
times this Is the season Of the year when
circulation is desired more than in any
other season. principally on account of
the demand for money for crop-moving
purposes.
In these abnormal times bankers are
much more anxious, of course, 20 secure
tie additional circulation, and the oppor-
tunity afforded by the Panama bonds
and the loan certificates to take out $780,
100000 new additional bank notes without
seriously disturbing existing reserves is
one that the bankers agreed viii be
eagerly srasped in national banking cir
cIes.
Secret0ry's Action Approved.
Though none Of the new money, Of
course. was at hand to-day. a beneficial
effect Of the Secretary's action was noted
in decline in the premium n'currency.
Many men with currency TO sell found
that they could secure but per cent for
1t from money brokers. and the brokers
offered currency TO bidders at rates rang
ing from IL to 2i4 per cent.
During a portion Of the day the demand
was rather brisk. for there were many
orders left untitled from last week. Cen
orally. however. the demand was much
less than on any day last week and the
offerings much greater. so that It was
apparent that a beneficial effect Of Secre-
tary COrtelyOu's announcement has al
ready been attained I'm a recovery Of con-
fidence which released much boarded
money.
Bankers expect that the most impor-
tant results. as far as release of boarded
money IS concerned. will accrue from
banks in small cities and villages in the
interior. a very large number OF these
institutions having no clearing houses IN
their respective localities. have built up
reserves to a very high point
There was talk to-day Of n resumption
Of the plan 10 secure gold from the Bank
Of France The negotiations, It was be-
lieved. could have been carried to a
successful conclusion last week had New
York bankers been able 10 offer A gov
ernment security such as Is supplied by
the loan certificates. Bankers. however.
were generally of the opinion that no
great advantage was derlvable from any
further depletion of Europe's stock of
gold. and counseled against any effort
to secure a large amount OF gold IN
France.
Premium offered on Curb.
\ bid Of 1O was made for the loan
certificate on the curb to-day. but none
was offered. The bid was made before
It became known that the certificates
could be used for circulation.
The decline in the premium On cur
rency was accompanied by a sharp de-
cline in the foreign exchange market
Bankers engaged in London to-day
Sa5oo,OCo gold for import. This engage
ment brought the total for the move
ment to date up to between 67,5e0,OoO
and S70,Oo00o0.
Bankers continued to transfer money
in large amounts TO various places in
the interior.
Apart from the use Of the Treasury
loan certificates as security for circula-
ton, bankers were of the opinion that
they might be used to some extent as
currency.
That many Of them were to be nut out
in SO and other small denominations
strengthened this belief Frank A. Van
derIip. vice president Of the City Bank,
said that they would be similar to banl,
notes in form and be good medium for
circulation. Il was his opinion and that
of many other prominent bankers that
the certificates ought also 70 accomplish
the desired result OF bringing out boarded
money.
The situation at various places in the
interior was reported considerably i'm
proved.