The semi-weekly messenger., 1907-11-22


bonds II SO. 90 900 in one year
treasury certificates. The issue OF
Panama bonds had been counted upon
as the probability since it was first
referred to some ten days ago. The
issue of short term certificates was
more Of a novelty and as such attract
ed more discussion. The general
opinion in banking circles was that
both measures would tend to draw idle
money from private boards and there
by break the premium on currency
and restore normal conditions in the
money market.
So strong was this feeling that Il
was understood that gold engagements
would practically cease after today. III
ternational bankers declared that the
gold already engaged Is as much as
New York can justly take from Eu-
rope under the strained conditions
which prevail there and that to take
more will only compel its return at
later date.
The amount already taken or en-
gagged approaches so Zoo 900, which Is
much more than the most sanguine
predicted at the beginning of the move
ment about three weeks ago 1t is not
considered desirable to force the Bank
of England to raise its discount rate 10
5 per cent. as has been talked of in
London, nor to force the German rate
any higher than - per cent which
it las already reached If more gold
were desired the 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 A1r
Morgan's house. Tihe shipment Of
gold to New York against the deposit
of such certificates would parallel very
closely the shipment of $15,000,000
made to London at the time of the
Barring panic in 1890.
The response from the public to the
offer of new securities is expected to
center largely on one year certificates.
The Panama bonds, paying only 2 per
cent. and selling at premium are ex-
pected to go chiefly to the national
banks to be used as a basis for cir
culation.
1t is declared by bankers that finan-
cial and political conditions are in
fnitely more favorable at the present
than they were when the gold reserve
was almost wrecked and the posi-
billty of a change. of money standard
was confronting the country. It Is
their belief, therefore, that subscrip-
tions for the certificates are likely to
be large and to draw out much hoard
ed capital. Secretary Cortelyou IS
counted upon to deposit the proceeds
of both classes of securities at once
! in the national banks where thev will
be available for the purposes Of gen
eral circulation. The premium on
currency showed signs of weakening
today, being quoted at from one and
half to two and a half per cent.
Bankers declared that it will disappear
before bids close for the treasury GER
tiicates and that the monetary phase
Of the crisis will then tend to pass
away.
Throughout the day reports cir
cuIated with more or less defniteness
that the banking house Of J. P. MGc-
gan was organizing a syndicate for.
the purpose Of taking over a consid
cradle block Of the new treasury is
sues, the amount teing variOusly stat
ed from $25 900 900 to 100000, 900 Late
in the day member of the firm gave
specific denial to these reports. say
ing that he knew Of no such syndicate
either as to the Panama canal bonds
or treasury certificates He added that
no further negotiations were cOntem-
plated for securing gold from the
Bank of France. Notwithstanding this
specific denial, the report continues to
circulate that an organization of finan-
ciers was contemplating to take up
portion of the proposed issues. but no
confirmation Of the reports could be
secured.