The Birmingham age-herald., 1907-11-19
LOCAL BANKERS
 PLEASED BY NEW
 PANAMA ISSUE Believe It Will Have Measuring Effect and Prove a
 Great Help l WILL ENABLE BANKS TO INCREASE CIRCULATION New Loan Certificates Will Be In $50 Denominations and Will Prove Particularly Attractive To
 Small Investors.

The announcement of Secretary Cortel- you that he would issue $50, ,000,000 of Pan- anna bonds and s1OO, 100000 of loan certifi- cates to run one year, and President Roosevelt's hearty indorsement of this action, was most reassuring dn local banking and commercial circles. It was the topic of cheering conversation. Pres ident W. W. Crawford of the American Trust and Savings bank said he regarded the governments course timely and de- cidedly helpful, not only to the banks but to the business world in general. He said it would, he believed, lead to a speedy return to normal currency conditions.
 w. P. G. Harding, in discussing the matter, said:
 Tone Was Measuring.
 q was particularly impressed with the Presidents letter. It's tone was reas- suring and should have fine effect Pan anna bonds would have come on the mar ket soon, anyway. Just now the national banks are endeavoring to increase their circulation. Panama bonds being avail able as basis of circulation will be quickly absorbed.
 "The per cent loan certificates, which were authorized by Congress for the Spanish war will be in denominations or $50 This low amount will doubtless prove especially attractive to small investors, and those hoarding money. Up to this let any money come from its vaults di- rect to this country. There is reason to believe that the United States treasury will apply considerable proportion of the proceeds from the sale of these cer- tiicates to relieving the situation in southern and western centers The cer- tifcates cannot fail to attract foreigners, and gold shipments from Paris will be the result. I would not be surprised there fore, to see relief at an earlier date than had been hitherto predicted.
 Run For But One Year.
 Ut should be borne in mind, however, that these government loan certificates will run for one year only. They will be retired next fall. That makes 1t all the more important that there should be con- gressional legislation before that time, looking to currency reform and currency elasticity. The President indicates that he will in his annual message recommend such legislation. I believe the plan pro- posed by the currency commission of the American Bankers association, and which was favorably reported in the House last session by the committee on banking and currency, should receive the support of southern senators and representatives. It's enactment into law would enable our own section to be entirely independent of any complication that might arise in New York or other large financial centers, for the national banks throughout this section would then have abundant means of pro- tecting themselves and taking care of the local situation. For instance, had such law been in effect, national banks in Alabama could have at once issued nearly S3,OO00Oo of lawful circulation, guaran- teed by the government, which would have been sufficient to have kept them all on a cash basis, without reference to balances tied up in New York. The banks in New York and other centers would have had the same privilege of ad- ditional currency issue. Thus it is seen there would have been no currency famine whatever.
 Southern farmers are among the heav- fest sufferers from the present state of affairs The price of cotton has beyond question been affected adversely by this scarcity of ready money, and they should forthwith demand that our congressman favor measure to avert similar situ- ation in the future"