Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-19
MOVEMENT WILL PROBABLY
STOP GOLD AGENiI,NTS

MOVEMENT WILL PROBABLY
STOP GOLD ENG AGEMINTS
New York. Nov H. Satisfaction
was general I'm money circles todaA
because OF the governments plan ol
relief to the market by The issue OF
$50,000,00 IN Panama bonds ant
SlO0,o0O,00e I'm one-Near treasury Ger,
dficates. The issue of short-term Ger.
uficates was more of novelty. ant
as such attracted more discussion
The general opinion was that botf
measures would tend to draw idle
money from private boards and there.
by break the premium on currencS
and restore normal conditions In the
money market
So strong was this feeling that II
was understood that gold engagement,
would practically cease after today
International bankers declared thaI
the gold already engaged Is as mucf
az New York can Justly take from Eu.
rope under the strained conditions
which prevail there. and to take more
VIII compel its return at a later date
II Is not considered desirable to force
the Bank Of England to raise its dis
count rate TO per cent. as has been
talked Of in London, nor to force the
German rate any higher than l-2
II more gold were desired the issue
Of short-term certificates would af-
ford Just the sort of security which
the Hank OF France has been dis
posed 10 insist upon In the recent ne
gptiations through Murgan's house,
The shipment Of gold TO New York
against the deposit Of such certifi-
Gates would parallel very closely the
shipments of Sl5,000.00O made TO Lon
don at the time OF the Barring panir
IN 1890. This loan was secured by
the deposit With the Bank of Franco
Of exchequer bonds opposed TO tho
Rank If England by The British gov.
ernment in exchange for national debt
stock EXehequer bonds represent q
form OF short term obligation which Is
issued very frequently by the british
government The issue of short term
obligations has been less frequent with
the American government. but bank
ers declare that they will meet ad-
mirably the demands OF the present
occasion, because they can be taken
up and paid for at the expiration Of
their term from the treasury cash bal
ance which can then be Withdrawn
without danger from the custody of
the national banks. An excess OF cash
will be on deposit In the banks. ac-
cording to all past precedent, even II
business depression Is acute. because
after the first fright Is over cash ac-
cumulates in periods Of depression for
which there Is little call for invest
ment In new enterprises.
The response from the public 10
the offer OF new securities is expected
to center largely on the one-year GER
tificates The Panama bonds. paying
only two per cent, and selling at a
premium. are expected 10 go chiefly
to the national banks 10 be used as a
basis for circulation.
The Lesson OF 1896.
II the experience OF the popular
loan OF 1896 is repeated. however, in
respect 10 the certificates, they will
be over subscribed several times. Sec
retary Carlisle on that occasion in
vited subscriptions for 500. 900. 600 OF
( per cent coin bonds. payable after
thirty years. There was grave doubt.
under the conditions OF demorallza-
ton prevailing at that time. both IN
the money market and the political
whether the subscriptions
would be sufficient 10 permanently re-
store the gold reserve In anticipa-
ion Of difficulty Mr Morgan organ
zed q syndicate TO bid for the entire
amount OF the bonds and eventually
obtained about one-thlrd. AZ 4lis price.
II The issue. The number of subscrip-
ions Of a bona fide character was
i.G40. and the amount subscribed tQ
over the 100000 600 offered was
g562. 26g.S50 subscriptions al higher
'igures than MT Morgans were sub
nltted for S6G,78S,650. and. barring
lefaults for iriflinE sums. bonds for
his amount were distributed in small
OTIS throughout the country.
II is declared by bankers that fin-
lncial and political conditions are i'm
'initely more favorable at the present
ime than they were when the gold re-
erve was almost wrecked. and the
possibility Of a. change 81 money
ltandard was Confronting the country
d Is the belief therefore. that sub
.criptions for the certificates are
ikcly 20 be large and 90 draw oui
much boarded cash. Secretary Cortel-
-ou IS counted upon 10 deposit the
proceeds Of both classes 0f securities
u once In the national banks. whore
hey VIII be available for thr purpose
" general circulation.
The premium Ion currency shows
lgns nf weakening today being quot
ID az from one and "a half 90 two and
half per cent Bankers declare that
2 viii disappear before bids close for
he treasury certificates. and that the
monetary phase ~ the crisis viii then
end o. pass away Throughout the
lay reports circulated with more or
ess definitcness that The banking firm
Il J. p Morgan was organizing syn
IiCate for the purpose ~ raking over
considerable block ~ the new treas
iry issue. the amount ueing Nuriously
.tated to be- from S25.O0e.000 Co 500
zoo 600. Late bon the day a member
n the firm gave H specific denial 90
hese reports saying that he knew
if no such syndicate. either as to the
Panama canal bonds or the treasury
certificates he added that no fur
her negotlations were contemplated
or securing gold from the pank ~
France Notwithstanding this specific
(Continucd on Page Z. Col. 10