Evening star., 1907-11-18
MAY GET FRENCH GOLD
TREASURY CERTIFICATES CON
sIDERED GOOD SECURITY.


nounccment of the plan of President
Roosevelt and Secretary Cortelyou to
issue s.5O.oOoOOo in Panama bonds, and
$100. 900 600 In one-year treasury certih-
Gates bearing ; per cent interest, was the
chief topic Of discussion in financial circles
today. The short-term certificates attract
ed most discussion because Of the com
paratively novelty of such an issue in this
country.
1t is the general opinion that the two
measures. and especially the offer of the
certificates. will draw much money from
small boards. as was the case with the
popular loan of 1885, 1t is believed that
these certificates would be acceptable at
the Bank of France If it should be neces-
sary to obtain more gold there. according
to the plans which were under discuss: on
last week. Some bankers here believe.
however. that the issue of the certificates
will make 1t unnecessary to obtain more
gold. If the premium on currency Is
once broken. 1t will change conditions of
foreign exchange so that the profit on
gold imports will be reduced or wiped out.
Gold Imports.
Some bankers believe that this will not
be an unmixed evil. because we already
have drawn so much gold from Europe.
They fear that this gold will be taken
back soon, under the pressure Of high dis
count rates and the monetary stringercy
at London. Paris and Berlin, and they be-
lieve that the American market should
cease to disturb European markets when
1t is found that further imports of gold
are not required to maintain our position.
While the certificates. therefore. un-
dOubtedly would be an acceptable security
If gold were to be taken from the Bank
of Franco and noOofiafjopS RI that end
may be resumed. they may have the enect
of making further imports unnecessary.
Approval Of Conant.
Treasury certificates Will be put. Charles
\. >Conant, an authority On currency is
sues and former treasurer Of the Morton
Trust Company. said:
Il believe the action of the President
and Secretary Cortelyou is wise one.
The issue of short-term certificates to the
amount of 800. 100000 might be criticised
upon the ground that it is more than the
occasion requires. but in my opinion II is
better in such emergencies to take exces-
sve precautions rather than Inadequate
ones. In 1888 while the measures taken
were sound they were nearly always de-
layed until the situation was desperate.
thus seriously aggravating the evil.
The new certificates will not. of course.
circulate as money. because they bear in
terest. They represent a very different
financial policy from the issue of legal
tender notes. which would have inflated
the currency without any provision for
their retirement
London Market Looks Up.
LONDON. November 18.-The official
announcement from Washington that
Treasury certificates to the amount Of
$1Oo. COO. 600. bearing interest at per cent.
and Panama bonds. amounting to $780,
600 600 would be issued Immediately in
order to relieve the financial stringency
in the United States had an immediate
effect on the markets here today. Prices
promptly moved upward. the flnanciers
and members Of the stock exchange be-
lieving that Secretary of the Treasury
Cortelyou's action was bound to In
great measure remove the strain In the
money market. 1t was thought probable
that 1t would stop the drain of gold from
this market and obviate the necessity for
further increase in the Bank of Eng
lands rate of discount. Consols. which
had been adversely affected by the out.
flow of gold. jumped up half point
above Saturdays closing price. to S2aas.
and other British securities rose in SYM
pathy.
Americans started one to three points
above Saturdays closing prices. and
changed hands in the forenoon at adyanc-
ing prices Some of the improvement sub
sequently disappeared, but at noon they
stfl stood firm at one to three points
above parity.
Curb Bid for Bonds.
NEW YORK, November 1s.-A nominal
bid Of 1O1 for government certificates Of
Indebtedness, which are to be issued to
relieve the present financial situation. was
made on the curb market today.