The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-11-26
RESUME CASH PAYMENT.

mGQG OF 6lSuGy-Ou5 u4A44oA OoA
lars in Gold Have Relieved the
Financial Tension and Normal
Conditions Will Soon Prevail.
Washington, Nov. 24.-The events
cf the past week in the financial
situation have centered' around the
offer by the government to receive
bids for S50,OOO,00O in 2 per cent
bonds for Panama canal construc-
ton and offers at par for $lOO,OOO,-
900 in treasury certificates running
cne year at 3 per cent. The an
nouncement of this project by Presl-
dent Roosevelt, in his letter to Sec
re;ary Cortelyou, published on Mon
day, has done much to restore nor
mal conditions in the money mark
ct. Tile premium on currency, while
somewhat obstinate, has been gradu-
ally declining and the rally in the
stock market on Saturday, follow
iny the visit to Washington Of }.
Pic1pont Morgan and Geo. F. Bak-
er. indicates that confidence is being
restored by the manifest cooperation
between the government and big fin
aIcial interests in New York. Some
uncertainty prevailed early in the
week regarding the terms of SUBJ
scriptions and aNotments for the
pew securities, but doubtful points
have been cleared up from day to
day by the statements Of Secretary
, Cortelyou and other officials, and the
manner in which offers, are being
received for the new securities indi-
cate that they will probably be over
subscribed. The mail offers from
national banks for the Panama
bonds are very heavy. The envelop-
es will mot be opened untl the time
for RECEIVING bids closes on Satur-
day next, but the number Of bids
received and the declared purpose OF
s,me Of the large New York and
Chicago banks to subscribe with the
purpose of increasing their note is
sues, leaves little doubt in the minds
of bankers and treasury officials that
the loan will be covered. The fact
that the one year certificates can be
availed Of to secure new bank note
circulation and that such circulation
can be retired within a year, is hav-
ing an effect in drawing offers for
these securities; indeed, Secretary
Cortelyou, in MAXIM allotments, IS
rejecting many offers which, he does
not think, will tend to materially
benefit the monetary situation. By
permitting issues Of bank notes to
the full amount Of the bonds and
certificates taken by national banks
and then redepositing the proceeds
Of the sale Of the securities to the
amount Of Is per cent in the banks,
| there is opportunity for increasing
the amount of currency in circula-
ton, by a net amount equal to three
quarters Of the new security issues.
| It is not expected that the increase
will be so great as this, since some
of the short term certificates Will be
| taken by private investors. There is
doubt also whether any such in
crease will be needed if the corner is
turned in the monetary pressure
when the bids for the Panama bonds
I are opened and offers for the certi-
fcates are closed at the end Of next
! week. The importation Of $81 ,OOO,-
900 in gold, now arrived, On the way,
or engaged, adds so greatly to the
monetary resources Of the country
that it is anticipated that there will
soon be a plethora of circulation
rather than too little.
The fact that the gold which has
thus far arrived has not increased
permanently the New York reserves
is declared by New York bankers to
be sufficient evidence that every
thing is being. done winch is posi-
BILE by New York to aid the banks
throughout the country.
Reports from the south indicate
that the cotton crop is moving with
a fair degree Of facility at the pres
ent time and that the deadlock waich
threatened at the outbreak of the
crisis has been broken. lit is hon
ed that il wi! soon he possible to