Los Angeles herald., 1907-11-18
TO RAISE
$50, 900
FOR PANAMA
ADMINISTRATION DECIDES ON
TWO MOVES
PROCEEDS OF SALE DIRECTLY
AVAILABLE
President Assured the Congressional
Leaders Are Considering Currency
fMeasures--WiII Be Rushed at
Approaching Session
By Associated Press.

| WASHINGTON, Nov. II. = Secretary
Cortelyou tonight made the important
announcement that, as means of at
fording relief to the financial situation,
the treasury would issue $50Oo0,000 Of
Panama bonds and s100.O0OO0O certificates
! of indebtedness. or so much thereof as
may be necessary. The certificates will,
run for one year and will lbear per
cent interest.
The secretary's action in coming to tho
relief of the financial situation meets
with President koosevelt's hearty ap-
proval and the plan is the outcome of
the several White house conferences
which have been held the past few days,
when the financial situation was under
consideration.
Secretary Cortelyou says the Panama
canal bonds will afford substantial relief,
and the law provides that they may be
used as basis for additional national
bank circulation. He also, states that
the proceeds from the sale 0f certificates
can be made directly available at points
where the need is most urgent, and es-
pecially for the movement of crops,
which, he says. IL properly received. will
give relief to the entire crop moving
district.
The secretary calls attention to the
|
lutely safe investments.
Meet Public Demnads
| He adds that these relief measures
will enable him to meet public expendi
lures without withdrawing for that pur-
pose any appreciable amount of the pub
| lie moneys now deposited in national
banks throughout the country The
treasury circulars, one inviting proposals
for the issue of bonds and the other ask
ing for the certificates. win be sent out
under date of November is.
In his letter to Secretary Cortelyou.
lapprovfng the treasury plans, President
| Roosevelt states that he has been as
sured that the leaders in congress have
under consideration currency measure
which, ne says, 'will meet in permanent
fashion the needs of the situation, and
which l believe VIII be passed at an
early date after congress convenes two
| weeks hence
The president also calls attention to
what is needed most at this time is that
| the people should "realize how funda-
mentally sound business conditions In
| this country are, and how absurd it Is
lto-permit themselves to get into a pania
and create a stringency by boarding
their savings. instead of trusting per-
fectly sound banks
The presidents letter to Secretary Cor
telyou says: M
y
prove the issue of the fifty millions Of
Panama bonds, which will be Immediately
available as the basis for additional cur
rency.
Denomination $50
81 also approve the issue of s10O.OOO0O)
or so much as you may find necessary os
$50. per cent interest government notes
| The proceeds of the sale you can have
deposited where the greatest need exists
and especially in the west and south
where the crops have to be moved. have
assurance that the leaders of congress afe
considering a currency bill which will
meet in permanent fashion the needs of
the situation, and which believe will be
passed at an early date after congress
convenes two weeks hence.
what is most needed just now Is that
our citizens should realize how funda-
mentally sound business conditions in this
country are and how absurd 1t is to per-
nit themselves to get into a panic and
create stringency by boarding their saw
! ings instead of trusting perfectly sound
| hanks. There is no particle of risk In
| volved in letting business take its natural
course, and the people can help them
selves and the country most by putting
back into active circulation the money
| they are boarding. The banks and trust
lcompanies are solvent. There is moe
currency in the country today than there
| was month ago, when the supply was
ample. Since then $55,000 100000 in gold
| las been imported and the government
has deposited already $eo0o0.OO0. These
are facts. and appeal to the public TO
cooperate with us in restoring normal
| Business conditions.
Keep Up Circulation
"The government will see that the peo
| pie do not suffer If only the people them
selves will act in normal way. Crops
are good and business conditions are
sound and we should put the money We
have into circulation at once to meet the
needs of our abounding prosperity.
There is no analogy at all with the way
| things were in 1893. On November 80 oe
| that year there was in the treasury but
S16i. 100000 in gold. On November IA Of this
year there was in the treasury 1904. 900, 900
| in gold Ten years ago the circulation per
capita was S2S23 1t is now $SS.2S. The
steps that you now take. the ability Of
! the government to back them up and the
| fact that not particle of risk Is In
volved therein give the fullest guarantees
of the sound condition of our people and
the sound conditions OF our treasury. All
| that our people have to do now ie to 90
ahead with their normal business in a
normal fashion and the whole dificulty
disappears; and this end will be achieved
If each man will act as he normally
does act, and as the real conditions Of the
country's business fully warrants his now
acting"
Upon receipt Of President Roosevelt's
letter of approval today the following
statement was issued by the secretary Of
the treasury:
"The available cash balance OF the
treasury amounting to $240, ,1B6. ls1 is, with
the exception of small working balance.
now on deposit in national banks In every
state and territory in the Union. thus
placing it where 1t can serve the needs OF
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