The daily morning journal and courier., 1907-11-19
WILL DEPLETE PRIVATE HOARDS That Issue of Panama Bonds and Certificates Will Do This is General ly Believed.
GOLD ENGAGEMENTS
 EXPECTED TO CEASE
Prompt Response of the Public to the Offering of the New Securities An
 ticipated.


 New York, Nov 1S-Gratifcation Twas the prevailing tone in banking cir 2 2cles to-day over the government plan zof relief to the money market by the Issue of s50,Ooo,OOO in Panama bonds and s1OO,OOO,OOO in one year treasury certificates. The issue of Panama bonds #had been counted upon as a probaoil- 4tv since it was first referred to some aten years ago. The issue of short zterm certificates was more of novelty and as such attracted more discussion. The general opinion in banking circles Was that both measures would tend to lraw idle money from private hoards hnd thereby to break the premium on currency and restore normal condition In the money market.
 So strong was this feeling that it was lnderstood that gold engagements would practically, cease after to-day international bankers declared that the gold already engaged is as much as New York can justly take from Europe &lnder the strained conditions which '&orevai there and that to take more 2will only compel it's return at a later late. The amount already taken or bngaged approaches $7eOOO,O00 which s much more than the most sanguine predicted at the beginning of the fnove- nent about three weeks ago. It is not considered desirable to force the bank bf England to raise It's discount rate o eight per cent. as has been talked : bf in London, nor to force the German late any higher than the seven and q half per cent. which it has already eached If more gold were desired, he issue of short term certificates would afford just the sort of security (which the bank of France has been Disposed to insist upon in the recent Negotiations through MT. Morgan's house.
 The shipment of gold to New York against the deposit of such certih- bates would parallel very closely the yhipment of $15,000,00 made to Len- 2 lon at the time of the Barring panic n 1890. This loan was sacLte1 by he deposit with the Bank of France pf exchequer bonds issued to the 3ank of England by the British gov ! brnment in exchange for pational debt ! tock. Exchequer bonds represent a Sorm of short term obligation which is issued very frequently by tEe British government The issue of short term ! obligations has been less frequent A,E I4,,4 bankers declare that they will meet 2 admirably the demands of the pressn occasion, because they can be taken D and paid for at tha expiration of : heir term from the treasury cash balance, which can then be withdrawn : without danger from the custody cf y he national banks. An excess If cash vill be on deposit il the banks, ac- ording to all past precedent, even f usiness depression is a>ute because fter the first fright is over cash ac- umulates in periods of depression for I which there Is little call for invest nent in new enterprises.
 The response from the public to the fer of new securities is expected to E enter largely on one year certifi- ates The Panama bonds, paying snly ? per cent, and selling at pre- lium, are expected 10 go chiefly to he national banks to be used as a asis, for circulation. If thA eXper- : ence of the popular loan of 1896 is epeated, however, in respect to the ertificates, they will be over-sub- mribed several times. Secretary Car sle on that occasion invited subscrip- ons for $100,000,000 of 4 per cent oSh bonds, payable after thirty years
 There was grave doubt under tn condition of demoralization prevailing t that time, both in the money marke snd in the political situation, whethe he subscriptions would be sufficient t permanently restore the gold reserve n anticipation of this difficulty, MI Morgan organized a syndicate to bi
 or the entire amount of the bonds an Eventually obtained about one-third a his price of the issue. The number c gubscriptions, however of a bona i'd character was 4,64O, and the amour
 ubscribed to cover the $10O,00O,00O of cred was $56S ,269,S50 Subscriptions a igher figures than MT. Morgans wer,
 ubmitted for $66, 7SS65O, and, barrin defaults for trihing sums, bonds fo
 his amount were distributed in sma
 ots throughout the country.
 It is declared by bankers that fnan Hal and political conditions are in # initely more favorable at the presen
 ime than they were when the gold re
 erve was almost wrecked and tn possibility of change of money stand lrd was confronting the country It
 heir belief, therefore, that subscrir
 ions for the certificates are likely { be large and to draw out much hoarde
 ,apital. Secretary Cortelyou is counte
 lpon to deposit the proceeds of bot classes of securities at once in pun poses of general circulation. Tn
 .remiuc on currency showed signs ( weakening today, being quoted at fror bne and a half to two and a half pc bent. Bankers declared that it will dis