The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-06-02
s5O.000,OOo SHORT is ARE IN
r,>hERS LOOK FOR AN ISSUE OF
PANAMA rs.

.,nooO O Is stu Outstanding Are
Iot in Banks and When Redemption
ia, comes the Proceeds Are Likely
ia seek state and Municipal Bonds.
Tho officials OF the local Sub-Treasury
,.,e beeu notified to accept no more OF
.Me Government As of 1907 for purposes
= rsruuding, for the entire $50, 600, 900 which
~. secretary Of the Treasury offered to
.a,ent in exchange for new % by circular
- March "A have been 80 exchanged. The
lima ne1nitted for refunding was until
I"no %. and the completion OF the operation
month ahead Of the time limit 10 a matter
- considerable satisfaction to Treasury
Osrials. For one thing the early refundlng
presents data on which may be based a
formulation Of Treasury policy at an earlier
Jotc than would otherwise have been adj
yislble.
There we're outstanding Of the short As
about sll7.OOO,O00. on December l last.
The amount now outstanding Is about
su uu,uUO since something more than
60; vnUpo have been redeemed by the
Treasury Department in addition to the
On 90 refunded. BY june 80. the date
4 maturity. it is believed that the entire
amount to I've redeemed will be less than
tngnOn. for Secretary C~ortelyou's offer
n purchase $25, 900. 1000 has not been 40
cepted in its entirety.
Among bankers the most significant
fact in regard to the %refunding and re-
hamilton ID hat national banks have either
exchanged or sold practically all OF the
abort Is that were in their possession when
the Department first took steps toward the
retirement Of the bonds. For the approx
mately 81. 600 900 of the bonds put up by
The hanks AS security for circulation or
Goyernment deposits there have been
substituted other bonds and other security,
a,cept in the case of less than 81 ,00O, 600 Of
tbe is. To all intents and purposes the
hanks are through with the short 4s, 80 that
The 100000 still TO be redeemed will
provide money for investors alone.
The redemption OF the remainder OF the
bonds will accordingly release more than
10000 900. which il is reasonable to sup
pose will seek reinvestment in other bonds
Of an absolutely safe character. The
tn.Mn,OOO il held by a class OF investors
ur investing institutions that consider the
nature Of the security of more importance
than the interest return. 1t is b belief
VI bankers that the reinvestment OF the
money should improve the market for high
grade State and municipal bonds.
II ia considered probable also that the
Secretary may grasp the opportunity for
the sale Of a block Of Panama 2s. Very
likely many Of the holders Of thes hort 4s
will desire to replace them with a Govern
ment bond and the occasion would on this
account be propitious for a sale Of Panamas.
II is the understanding Of prominent bank
rs that about $25, 200, 700 Panamas will be
offered this year, and some prominent
tankers said yesterday that they would
not I've surprised at the announcement of a
i'anams bond Offering prior to the date ri
maturity Of the short "a. -
The prospect that the Secretary will
call on the banks for withdrawal Of Govern
rnent deposits TO meet part OF the expense
Of purchase OF the outstanding 10, in the
opinion of bankers, has become less daily.
Ii was pointed out yesterday that in case a
Panama issue were put out and holders
If many Of the outstanding a sub
stantially exchanged them for Panamas,
The Treasury would require less money for
The redemption Of the remaining 4s and
might get along without a call on the bankf
for return of deposits. Practically the
operation would amount to a refunding OF
part Of the remaining Is into Panamas
Offerings of As at the S~ub-Treasury fol
redemption yesterday. after the notification
from Washington to cease redemption,
showed that there remain holders OF the
Is who are willing to exchange them fol
other Government bonds.