New-York tribune., 1907-11-19
RELIEF PLAN IND0RSED
ITS SUCCESS PREDICTED.
President and Treasury O&cials Re-
ceiUe Many Congratulations.
TFrom The Tribune Buresu.l

long distance telephone MESA ges- have come IN
all the day. and almost all these communications
express faith in the efficacy of the measures de-
vised to relieve the financial stringency. 1t ts
asserted by Treasury officials that. because of n
wholly unreasonable lack of confidence. the
business men Of the country suddenly undertook
TO do business on cash basis when there is not
sufficient currency to permit OF its being done IN
that way Then private individuals. in most in
stances. together with a number OF the smaller
corporations. became panic stricken and with
drew their balances from their banks and Sc
creted their surplus capital in safe deposit
vaults and other places
AS BASIS FOR CIRCULATION
| The issue OF Panama bonds and Treasury Cer-
tifcates is expected to bring this withdrawn
capital from its hiding places and To put 1t once
more into circulation while an easing OF the
money market will it is declared. restore public
confidence and re-establsh the general Credir-
which has been severely shaken. The proceeds
of the sales of bonds and certificates will bs
deposited in national banks. especially in the
West while both bonds and certificates can be-
used bv the bankers as the basis for circulation
The Secretary of the Treasury decided to-day
that when requested by the purchasers. certt-
hcates would be issued. in denominations larger
than $50 and registered. When so registered.
they will come within the provisions of the law
providing for national bank circulation. being.
to all tntents and purposes short time registered
United States bonds. In appearance they VIII
resemble bills rather than bonds. however, and
il will be necessary to engrave new plates from
which to print them The Panama bonds viii
be printed from the plates used for the SSOtDo-
600 issue sold by Secretary Shaw The date VIII
he the same although the interest will begin on
November /. 1907.
A rumor to the effect that J. P Morgan ana
other New York financiers had formed pools TO
underwrite the bond issue circulated in
financial circles here to-day. but did not receive
general credence. 1t is known that a number OF
New York bankers assured the Secretary of the
Treasury that he need have no fear regarding
the sale OF the proposed issue, but they did not
go further than that. and if pools have been
formed to purchase the bonds no knowledge OF
the fact has reached the Treasury Under the
law the sale of bonds win be conducted on
popular lines and bids will be received from any
and all comers-
TAKING CARE OF THE WEST
Secretary Cortelyou is fully alive to the needs
of the West. and will take especial pains to
divert a considerable proportion of the proceeds
| of the two new issues to that section His first
| efforts will be TO relieve the situation at st.
| Louis. The temporary relief OF Kansas City's
necessities he provided for through the New York
banks when in that city last week He is also
convinced that the New York banks will con-
tinue TO ship currency. as he states they have
been doing recently, that he expects the
stringency in that section TO be steadily dimiu-
ished even without waiting for the sale of the
bonds and certificates.
The Presidents declaration in his letter to
Secretary Cortelyou that he has assurance that
the leaders of the Congress are considering
currency bill which Will meet in permanent
fashion the needs of the situation. and which
I believe Will be passed at an early date after
Congress Convenes. two weeks hence has
aroused the keenest interest in Washington. and
information regarding the proposed legislation
has been sought in every quarter. but without
avail. None Of the higher officials will say
anything on the subject. and others frankly say
that they know nothing OF the proposed meas
ure.
CURRENCY LEGISLATION.
Were It not that the President makes this
statement in such evident good faith the predic-
ton would be received with the utmost tncre-
dulity. While the necessity OF financial Iegisla-
ton is keenIy appreciated. while it Is realized
that condition which makes IL necessary for
the Secretary Of the Treasury to go to the relief
of the national banks every little while is almost
intolerable. and while every agrees that
something mus. be done." all the information
an almost irreconcilable deadlock exists between
the Senate and the House this subject So
far as can be ascertained. neither Speaker Can
non nor Senator Aldrich. the nat OF either OF
whom IS final Ia a matter OF this kind. has been
communicated with in regard to the proposed
measure. 1t is Of course, possible that the
Speaker and the chairman of the Senate Finance
Committee have been in direct communication
with the President and the Secretary OF the
Treasury. but so far can be ascertained that
is not the case. and neither the Executive nor
the Secretary will say that it IS.
In a gathering of six Republican Senators to-
day-Messrs. Foraker. Lodge. Warren. Scott.
BuIkeley and Warner-alI of them expressed the
opinion that some financial legislation is neces-
sary and will be enacted at the approaching ses-
sion of Congress. but there was much variance
of opinion as 10 what could should be done.
No Democratic Senators were present. and con-
sequently there was opportunity to obtain the
Democratic view
II is to be presumed that the President has
completed the portion of his message dealing
with the financial situation, the first COPY
went to the Public Printer to-day, unless. OF
course the rumor mentioned in these dispatches
Sunday 10 the effect that he will send in spe-
ciaI message on financial legislation proves well
founded
The designs for the new certificates have been
agreed on and Director Sullivan of the Bureau
of Engraving and Printing has been instructed
to proceed with the work They viii be OF the
same dimensions as other currency and will
| closely resemble a $50 silver certificate on the
left side of the face will be vignette of Alex
ander Hamilton. and on the top Of the back in
large letters. will appear the words "Certificate
of Indebtedness" The date OF the act author