The Cairo bulletin., 1907-11-20
CABINET FAVORS
!. FINANCIAL POLICY
ADOPTED BY PRESIDENT AND
SECRETARY coRTELYoU TO
RELIEVE THE COUNTRY.
QUESTION IS RAISED
As to Availability of the Certificates
AZ Bank Reserves--Law
Seems to Be Against
This.

Washington. Nov. 19--Commnnica-
tions which came to the treasury de-
partment today approving the finan-
cial policy adopted by the president
and Secretary Cortelyou. and sub.
seripticns received for Panama bonds
and one-year certificates. were the
subjects Of discussion at the meeting
cf the cabinet and afforded general
qualification While the details re-
garding the subscriptions are not vet
being made prblic, II seems to be the
feeling at the treasury that both
loans will be over-subscribed.
The decline in the stock market to-
Jay is regarded as only a symptom Of
hesitation until the effect of the fail.
tire or success of the measures are
proved by the opening of bids.
Several important questions are
being raised in the communications
addressed to the treasury. One Of
these questions, upon which no off.
eial information has yet been given.
is whether the new one-year certifl-
serves. The law on the subject
seems sufficiently clear, that they are
not available for this purpose, but It
Is possible that the presence OF few
o. them in the reserves under the
present critical conditions would be
winked at, just as in the case Of
clearing house certificates. II Is pre-
scribed by section 5191, revised sta.
tutes. that banking reserves shall be
in lawful money of the United
States" This can only mean gold
and silver certificates, coin certifi-
Gates and legal tender notes,
The law does not even permit bank
notes. which circulate as currency to
small amounts are occasionally in
cluded in the same packages with
lawful money. Whether the new GER
tificates should be counted as reserve
money would be, under the present
more or less an academic
question, because they are legitimate
OF banking funds, and
the question OF reservations is only
upon the amornt held. AS large
portion of national banks are now
being permitted to do business with
their reersves considerably reduced
below the legal limit, the question
the proposed treasury GER
tliicates shall be counted as reserves
or Investments is practically only a.
matter of bookkeeping.
The possibility Is attracting some
attention that the issue of one-year
certificates will he criticised In con
press in much the same manner as
the sale of the bonds to the Morgan
Syndicate to protect the gold reserve
In 1895. The fact that a Republican
of the house committee on
Prince, of Illinois, was
quoted today as declaring the issue
mot iustihable under the existing
Is considered symptom
Of the attitude which may be taken
by few Of the members of congress
The criticism of President Cleve'and's
measures in 1895 went so far that a
was appointed to investi-
gate the contract with J. p. Morgan
and company A certain part Of the
criticism at that time was directed
against the exclusive nature Of the
contract. and this criticism viii not
lie against the present offer of securi.
ties to the public unless something
occurs in making awards which may
afford an opportunity TO critics Of the
administration.