The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1907-11-18
81 Sl50.000,000 Of
PAPE R WILL Be
ISSUED BY j. s.
Secretary Cortelyou Offers
Both Bonds and
Certificates
PRESIDENT APPROVES
Roosevelt Says All Will Be
Well if the Public
Responds
APPEALS TO PATRIOTS
Declares Money Is Needed at
Once to Move Crops of
South and West
SPECIAL DISPATCH TO THE CALL.

WASHINGTON, Nov 17.-There
is something inspiring in the scheme
for relieving the financial stringency
which as the result of three days of
conferences eliminated late tonight
in the announcement made by Secre-
tary Cortelyou, coupled with an ap-
peal to the American people by Presi-
dent Roosevelt. A double barreled
plan for restoring public confidence,
in which the federal government takes
the lead, involving the issuance of
treasury certificates amounting to
$1oo,oOO,oO0 and the offering of Panama
canal bonds amounting to s5o,ooo,oo0 |
was made public by the secretary of |
the treasury tonight.
With the announcement went word
TO the country from the president that
everything was all right, that it was
scare and resume business and that no
man who was patriot would longer
hoard his resources.
The public is expected to use treas
ury certificates, which run year and
bear per cent interest.
In this way an object lesson in con-
fdence IN the financial institutions of
the country is given by Secretary Cor
telyou. If the public does not want all
1t treasury certificates they can be
taken by the banks and used as re-
serve. The banks are expected to buy
the Panama canal bonds. The last is
sue of these bonds was one of $780,
s104, although bearing only per cent.
The bonds when taken by the banks,
can be used by them a a basis for new
circulation and that they will be taken
is the belief OF financiers and of the
1 officials of the treasury department,
who expect to see an immediate recov-
cry of confidence all along the line and
a speedy disappearance of clearing
house certificates So far as can be
4 learned. none of the great fnanciers
who have been in communication with
the administration officials had any
idea that the treasury department
would add both measures of relief.
BOTH ISSUES NECESSARY
It was expected that if Panama canal
bonds were issued now the offering of
the treasury certificates would be post
poned or abandoned or vice versa, but
the news reaching here from the south
I and west. as well as from the east and
/ New England, Of the absolute dearth of
money, the tight places some of the
most important banks were in because
of demands made on them, the fact
| that there had been an almost COM
plete cessation Of cash payments in
many of the large cities, the further in
formation that paralysis, fostered- by
a lack of confidence, was not only
creeping, but racing, across the coun-
try-all these things quickened the in
terest of the administration in what it
had gradually come to recognize as
serious crisis.
In his letter to Cortelyou. approving
the treasurer's plans, President Roose-
velt states that he has been assured
that the leaders in congress have under
consideration currency measure
which will meet in permanent fashion
the needs of the situation and which.
i 1 believe, will be passed at an early
date after congress convenes, two
weeks hence
The president also calls attention to
the fact that what is needed most at
this time is that the people should
realize how fundamentally sound
business conditions in this country are
and how absurd it IS to permit them
4 selves to get into panic and create a
stringency by boarding their savings
instead of trusting perfectly sound
banks
PRESIDENTS LETTER
+ The presidents letter follows:
The White House. Washington Nov. II. 1907.
Ny Dear Mr.. Cortelyou: ] have considered
your proposal ] approve the issue Of the $50,
100000 of Panama bonds which viii be imme-
diately available as the basis for additional
currency. ] also approve the issue of 500 ooo-
600, or so much you may find necessary, of
$50 3 per cent interest bearing government
notes, the proceeds of the sale OF which can be
at once deposited by you where the greatest need
exists and especially IN the west and SOUTH
where the crops have TO be moved. / have. as
surance that the leaders OF congress are eonsid-
ering currency bill which will meet in perma-
neBt fashion the needs Of the Situation and which
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