The Marion daily mirror. (Marion, Ohio) 1892-1912, 1907-11-29
ABOUT $35,0O0,DOO
TO Be ALLOTTED
BANKS WILL GET ALL THE ORE
YEAR CERTIFICATES.
INTENTION is TO RETIRE
A Large Portion Of the Certificates
Before They Mature and Reduce
Deposits OF Government
Money in Banks.

Washington, Nov. 29.-The an.
nouncement by Secretary Cortelyou
that further subscriptions to the one
year treasu''y certificates would not
be received, H. regarded here as indi.
eating that the secretary considers
the crisis IN the money market to be
practically over. Official figures have
not yet been given out AT the treasury
Of the amount of the certificates al
lotted, nor has it been stated whether
further allotments would be made for
subscriptions already received. The
amount of the allotments made, how
ever. Is to be about $4,000 900, and
this is probably the limit unless
strong reasons are presented from
banks which have already made sub
scriptions why allotments should be
made to them.
All individual subscriptions having
been rejected, II is anticipated that
nearly the whole of the S35 5,000,0 900 al
lotted will be used to secure new is
sues of bank notes. AS these issues
will be retired within less than year.
they will not constitute a permanent
imitation of the bank note circulation.
The effect of the new loans upon
the future of the treasury resources
and of the money market is already
receiving attention at the treasury
and in banking circles. From present
sources of information. the amount
nominally added to the cash balance
of the treasury will be about $S5 ,000,-
900, of which s50,000,O00 will repre-
sent the 2 per cent. Panama bonds
and S35, 600, 900 will represent the one
year certificates which have been al
lotted.
This amount would increase the
present nominal balance from about
$241 ,3S3,217. where it stood Wednes-
day. to a little more than 1925. 1000, 900.
With a nominal balance of more than
1926 900 900 the treasury will not have
anything like that amount immedi-
ately available. This is because of de-
posits in national banks and other de-
posit items. These items on Wednes-
day amounted to S234,939 $50, leaving
an actual working balance of $6,463,-
62S The secretary has announced
that 30 per cent. of the payments for
Panama bonds will be left in the GUS
tody of the national banks purchasing
the bonds, and about IS per cent of
the payments for the one-year certifi-
CkbcS Will Dt iclt Will inc DduhS.
This condition OF the treasury finan-
ceS viii be changed in the spring il
Secretary Cortelyou is able to carry
out the program of retiring a consid-
cradle portion of the one-year certifi-
Gates before maturity. He will have
no difficulty in doing this and saving
a considerable proportion of the inter-
est to be paid on them, II the agree
ments made with banks to this effect
can be carried out under the condi-
tons of the money market existing in
the spring. II s30,000,000 of the GER
tificates can then be paid off, the
cash balance will fall to about S295,-
900 600, deposits in banks will decline
by three-quarters OF the amount paid
of, or to s277 100000 and the cash
balance will fall to about $15,000,000.
1t is not only considered highly de-
sirable to reduce deposits in the
banks as soon as money market con-
ditions permit, but II is believed that
there will be little difficulty in doing
so. II the treasury can reduce these
deposits to the neighborhood of $780,
200 in the course OF the spring, it
will then have at command about
100000 900 as working balance,
from which deposits could be made
from time to time to aid In the crop
movement in the autumn, If they were
required. The history of previous
crises has shown that money tends to
accumulate rapidly in the banks after
the worst OF crisis Is over.