The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1907-11-19
TO ISSUE $l50,000,09O
Uncle Sam to Aid Nation With
Canal Bonds and Certificates.
CoRTELYo9 INVITES BIDS.
Roosevelt Says Country Is Fundamen-
tally Prosperous, Advises People to
Use Normal Good Sense and to Put
Back Their Money In Circulation.

Back Their Money In CIrculation'
Washington, Nov. 10. = President
Roosevelt took heroic measures to re.
lieve the financial stringency and to
supply funds to move the crops by
authorizing the sale of $50000,000 Pan
anna canal bonds and $100,000,000
United States treasury notes of indeht'
edness. The entire $100,000,000 debt
certificates will not be issued unless
needed.
The Panama bonds will be used as
the basis for additional bank note cir
culation, and the proceeds of the sale
of the certificates of Indebtedness will
be placed in the national banks, par
ficularly in the south and west, to en-
able the farmers to get the cash neces-
sary to market their crops.
Authority Is Unquestioned.
In taking this action President
Roosevelt has gone farther in the d.
rection of supreme governmental con-
troll, without specific authorization
from congress, than at any previous
time during his incumbency. His pow
er to sell bonds ON account Of the Pan
anna canal is not questioned, but the
issuance of certificates Of Indebtedness
will undoubtedly be characterized as
revolutionary These certificates will
be issued under an act approved June
13, 1893, relating to raising funds for
the Spanish-American war.
ANNA raptIx, onpu Tacc unvnr intnn1n6
that it should be invoked for any 9th
er purpose, although the specific linn
itation was omitted, The phrasing of
the act and the fact that authority is
given to issue certificates of indebted
ness in a separate paragraph furnishes
technical authority of which the pres
ident has taken advantage.
Reassures the Public.
President Roosevelt in letter to
Secretary Cortelyou approving the lat
ter's suggestion regarding the bond is
sue advises the people to refrain from
becoming panic stricken, states that
the prosperity of the country rests
upon substantial basis, declares that
the trust companies and the national
banks are solvent and urges the people
to withdraw their funds from the
places in which they are boarded and
place their money in circulation.
That there will be legislation by con-
gress which will permanently improve
the financial condition of the country
is another assurance given by the
president who declares that the lead
ers in congress have promised to give
relief. He states that the bond sale
is intended as temporary relief.
He also calls attention to the fact
that the per capita circulation of the
country has increased more than $40
during the last decade, but even with
this enormous expansion there is not
yet enough money to properly conduct
business operations
Hesitated to Sell Bonds.
The bonds and certificates of indebt-
edness will be sold Immediately. The
bonds will bear 2 per cent interest and
must be redeemed in twenty years.
The certificates bear per cent interest
and must be recalled in one year.
The presidents letter to Secretary
Cortelyou, accompanied by state
ment from the latter giving notice to
the country of what the government
proposes to do, We're made public at
the White House.
There was much hesitation on the
part of the president to sell bonds
when the government has $212. 900 600
on deposit in national banks, but he
realized that the government cannot
Withdraw these funds at this time
without grave danger of precipitating
serious commercial disturbances. For
more than a week the president, Sec
rotary Cortelyou, Secretary Root and
Postmaster General Meyer have had
the question of bond issue under
Inc treasury circular inviting pro-
posals for Panama canal bonds reads
The secretary of the treasury offers 10
the public $50,OOO,000 of the bonds of the
Panama canal loan authorized by section
: of the act approved June 2S 1902, and
Dec. n, 1906
The bonds win bear interest at the rate
OF per cent per annum, win be dated
Aug. !, 1906, and the interest will be Maid
quarterly on the first days of November
February, May and August. They win
be issued in denominations of $40. 500 and
y .OOO OF coupon bonds and of $40, 500. ST.
900 and $4,000 registered bonds. They viii
be redeemable in United States gold coin
at the pleasure of the United States after
ten years from the date of their Issue ana
win be payable thirty years from such
date
They viii be exempt from all taxes or
duties of the United States as well as
from taxation in any form by or undar
state municipal or local authority. They
Will be available to national banks as Sc
curlty for circulation notes upon the same
terms as the 2 per cent consols of 1870
to wit, the semiannual tax upon circula-
ZION notes based upon the said bonds as
security will be one-fourth of l per CEN
tum- Iney VIII be receivable, like all
other United States bonds as security for
public deposits in national banks.
The law forbids their sale at less than
par and provides that all citizens of the
United States shall have equal opportuni-
iy to subscribe therefor.
In pursuance of the above announce
nent the secretary invites bids for the
bonds heretofore described which must
be submitted to this department on or be-
fore the S0th of November, 1907. Each bid
should state the amount of bonds desired
BY the subscriber, whether coupon or reg
stored; the price he is willing to pay and
the place where he desires to make pay
nent-whether at the treasury OF the
United States or at the office of some one
II the assistant treasurers at New York
baltimore, Philadelphia, Boston, Chicago
81. Louis, Cincinnati New Orleans or San
Francisco. All bids should be addressed
@ the secretary of the treasury. division
Of loans and currency, and the envelopes