Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-11-19

New Ork. NOV. 1S.-Gratlticdt' On was
the prevailing tone in banking circles
today over the government plan Of re-
lief TO the money market by the ISSUE.
of $50.h01.000 in Panama bonds and
$ltW0oo.O00 III one-year treasury certfi-
Gates. The issue Of Panama bonds had
been counted upon as 4 protabiiit"
since it Was first referred 10 some
ten days ago. The issue of short
term certificates was more of q novelty
and as such attracted more discussion.
The general Cc!niOn in banking circles
was that both measures would tend
to draw idle money from private boards
ana thereby break the premium on cur
rencN and restore normal conditions
in the money market.
So strong was this feeling that it was
understood that gold engagements
would practically cease after today
International banks declared that the
geld already enga eed. is as mucn as
\eW York can justly take from Europe
an,irr tle strained conditions which
prevail Their" and !li.lt 10 take more
Will only compel its return =: Il later
GATE.
The amount already taken OF en-
gagged apnr"Ximatcs $7a.oon.o"o 1t is
not considered desirable t. fD"cc tie
Bank Of F.ngl,,n,i To raise it's discount
rate to PEI cent as has been talked
Of in London. Tor to force the German
rate an" hi .,hc, tll,n the -. per cent
whic', it has already reached. II more
gold were desired til" issue Of sh"ri
term .ertitrat..& Wnuil :,ITnti ;u&t the
sort "f security Whirh TIN, HIu!, 81
a u
IN the recent negotiations through Air
Aorg"n's houso.
The shipment of gold to New Nn.i.
against tn" deposit Of such certificates
parallel; very closely the .,hiiAncnt "f
81 .t""'. 100 mad" Ia l.oinl1n 1T The tiA;r
of ia" PAIRING r:uii'' i'll $3.50.
An excess 81 cash will t.. on deposit
IN IN" ranks according to All past
prccc,l"EtS even il lu> mess depression
is arut.'. because after he iirsi fright
is Over cash acrumuiatCS in periods
of depression for which there is little
call for investment III npW ent"rpriS s.
The response from the public to the
offer II new securities is expected Ia
center largely on the onc-year ccrtiil
Gates. Tho Panama bonds, paving only
per cent. and selling nj 4 premium
are expected to go chiefly To the nation
nj banks to be used rs Il basis for cr-
Cuation If the experience Of the pu',-
ular loan Of 1896 is repeated however.
in respect to the certificates they Will
be over-subscribed several time :. Sec
rotary Carlisle on that occasion invited
subscriptions for $l00Un0, 900 tur I per
cent coin bonds payable after 3 wears.
q
conditions of demora Iizatior prevailing
at that time both in the money market
ard in the political situation whether
the subscriptions would he sufficient
permanently to restore the gold reserve.
II anticipation of this difficulty. Mr..
Morgan organized Il syndicate Ia hiti
for the entire amount Of the bonds and
eventually obtained about onc-third, ~
his price. OF the issue
The number of subscriptions. how
ever. of Il bona fidc character. was 464"
and the amount subscribed 10 cover Ii"
500. o0n coo offered was sos 800, $50. Sub
scriptioEs at higher figures than Mr..
Morgan's We're submitted for sec. 1SS.6ap
and barring defaults for trfiing sums.
bonds for this amount We're distributed
IN small lots throughout the country.
1t is declared by bankers that finan-
ciat and political conditions are in
finitelv mora favora Bile 1T the present
time than they We're then. when the
gold reserve was almost wrecked and
the poss ihihty Of a change of money
standard was confronting the country.
Secretary Cortelyou is counted upon
to deposit the proceeds of both classes
of securities NJ once in the national
banks where they will be available for
the purposes Of general circulation.
The premium on currency showed signs
Of weakening today. being quoted at
from l., to u. per cent. Bankers de-
clarnd that 1t will disappear before bids
close for the treasury certificates and
that the monetary phase Of the crisis
will then tend to pass away.
Throughout the day reports circulated
with more or less deiinitones.' that the
banking house Of J. p. Morgan was Or
ganiZing a syndicate for the purpose
OF taking over a considerable block
of the new treasury issues. Late in the
dav 2 member Of the firm gave
specific denial to these reports. saving