The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-11-19
Qualification is Prevailing
Tone Among Bankers
of New York City. Il
WILL DRAW OUT
HOARDED FUNDS
Sale OF Panama Bonds and Issue
Of Treasury Certificates Will
Thereby Tend TO Break
Prenli,tn1 on Currency
and Give Re
lief.

Il
S lief.
&. NEW YORK. November 1s.-ciratifi-.
cation was !. the prevailing tone in
banking circles to-day over the gov
ernment plan OF relief 70 the money
market by tho issue OF s5o,ooo.ooo in
Panama bonds and 500. 100000 IN one
year treasury certificates. The Issue
of Panama bonds had been, counted
upon as probability since It was Arst
referred to some ten days ago The
issue OF short term Certificates was
more OF novelty, and as such at.
tracted more discussion.
The general opinion In banking cir
cles was that both measures would
tend to draw idle money from private
tioards and tend thereby to break the
premium on currency and restore nor
1alfsconditions In the money market.
SO strong was this feeling that It was
understood that gold engagements
would practically cease after to-day.
International bankers declared that
tho gold already engaged Is as much
| as New York can justly take from
| Europe under the strained conditions
| which prevail there. and that to take
moro will only compel Its return at
| later date. q
| The, amount already taken or en-
gagged approaches 370,0oo.ooo, which is
much more than the most sanguine pre-
dicted at the beginning OF the move
ment about three weeks ago. 1t Is not
considered desirable to force the Eanls
lot England tosraise It's discount rate
to 5 per cent. as has been talked OF
in London. nor to force the German
rate any higher than 7l-a per cent,
which 1t has already reached.
II 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
y insist upon In the recent negotiations
Through Mr.. ,Morgan's house. The ship.
Inents Of gold to New York against the
tIdeppsit .ef suc{. certificates would
5lpara}lel very closely tl,e shipment Of
$4,000. 600 made to .ondon AT the stinal
lspdnse from ths public 10 the offer 81
new securitiAs 10 expected to centre
largely on one-ycar certincatss.
Banks VIII Buy BSada.
The Panama bonds. paying only :
lper cent. and selling at a premium,
i are expected to 30 chiefly to the ma,
4 ttonal banks. TO be used as u basis
i for circulation. II the experience OF
the popular loan OF 1896 ts repeated,
however in respect to the certiticates,
/ they will be oversubscriped several
1 times. Secretary Carlisle on that occa-
ision invited subscriptions for $40 .ooo..
4 after thirty years. There was grave
doubt. under the conditions OF de-.
!moralization prevailing at that time,
both In the money market and in the
political situation, whether the SUBJ
lscriptions would be sufficient 10 perma-
nently restore the gold reserve. In an
iticlpatton OF this difficulty. Mr.. Morgan
|organized syndicate to bid for the
Ientire amount5o OF the: bonds. and event
ually obtained, { at his. price, about one.
third Of the issue. .3
4 The number OF subscriptions. how
lever. of a bona fide character was
1850. and the amount subscribed to
icover the $1o0.ooo.o00 offered was
i3h6S,26s,25o. Subscriptions al higher
figures than Mr.. Morgan's wero sub
United for 366.7Ss,6b0. and. barring de.
faults for trifling sums bonds for, this
amount were distributed In small lots
Throughout the country.
Subscriptions Will He Large.
i 1t is declared By bankers that finan.
tctal and political conditions are infln,
tnto!ys Hio1S 1dso1duio .dtss tHe spEeecHt
\ time than they were when the gold re.
serve was almost wrecked, and the
i POSSIBILITY OF a change OF money stand,
lard was confronting the country. II
Iis their belief. therefore, that SUBJ
lscriptions for the certificates ara likely
Ito be large and to draw, out mucl,
4 hoarded capltal. Secretary Cortelyou
4 is counted uron{to deposit the proceeds
of both classes OF securities at once
{o,a Al. n,
be vailablc for the purposes of gen.
|eral circulation. ls 70 I
The premium on currency showed
|signs Of iwea kening to-day. being quot.
4 cd at from l-2 to s1-2 par cent,
Bankers declared that It viii disappeal
lbefore bids close for the treasury cer-
Ittificates, and that the monetary phase
I of the crisis will then tend 70 pass
i Iaway. ss a y5 # Ri Il
Syndicate Rumor Deaied.
Throughout the day reports were
i circulated with more or less definite.
mess that the banking house OF ]. n
Morgan was organizing q syndicate
4 for the purpose OF taking over con-
|siderablc block Of the new treasury
tissues, the amount being variously
5lstated from S25,oO0.oo to 800, 100000
n Late In the day q member OF the firm
gave a specific denial to these ronortu
saying that he knew OF no such syndi,
cate, either as to the Panama Cana
bonds or the treasury certifcates. He
added that no further negotiations
from the Bank Of France. Notwitl,-
standing this specific denial, the re
ports continued to circulate that ar
4 Organization OF Ananciers was Scopte
|5platirg to take up a. portion OF the
d proposed Issues. but no { confirmation
II OF the reports could be secured.
JUNGLE REMus" AT DINNER
Joel Chandler Harris (suest OF the
Presideut at Dlaaar. r