The Washington herald., 1907-03-26
GIVES AID TO BANKS
COrtelyOu Issues Second Re-
lief Order in Ten Days.
DISTURBED By THE FURRY
Administration Worried by Contin-
ued Disturbances in stock Market
and Talk of General Depression.
Considers Political Effect of Pos
sibIe Panic-EHeet of Last Order.

Secretary Cortelyou yesterday an
nounced that hereafter lie will accept
railroad. State. municipal. and certain
other bonds in substitution for guvern-
ment bonds Of 1907 which are held by the
Treasury Depa rtment as security for de-
poslts Of pubic money. rhe new plan
was made known in the following official
statement:
''The Secretary Of the Treasury an
nounced this morning that he would ac-
cept in substitution for United States 4
per cent bonds Of 1857 now held 10 secure
public deposits any other govern
ment bonds. Philippine bonds and
certificates. city OF Manila bonds.
Porto Rico bonds. District of CO.
lumbia bonds at par. and Hawaiian bonds
at 50 per cent; also State. municipal. and
high-grade railroad bonds. such as are
legal investments for savings banks in the
States of New York and Massachusetts.
on the basis Of 80 Fer cent Of their market
value.
1T is understood that any Of such
bonds thus withdrawn must be assigned
to the Secretary Of the Treasury for
redemption under the provisions of the
department circular Of March a. 1907. -
Before the close of business yesterday
afternoon the Secretary said that he had
received an offer of more than Sl.OO0000
in one lot, in addition to several smaller
lots,
A Boost for Railroad Bonds!
Many observers of the financial situation
see in this latest move a desire on the
part Of the administration not only to stop
the continued disturbances in Wall street,
but 20 put the stamp of the government S
approval on railroad bonds. the value OF
which has been disadvantageousIy affected
by the recent charges of railroad man
ayers that it is impossible for them to Sc
cure cash with which to carry out the
construction Of new lines and to improve
existing lines.
Contemporaneously with Mr.. Cortelyou :
change to his present position, the early
E5s7r:s of the present month, it was asserted
.on unquestionable authority, that he
would not rush to the relief of Wall street
on the slightest provocation, as some OF
his predecessors have been charged with
doing. and that he would take steps to
prevent leaks" in the department by
which certain financial interests are said
to have benefited in the past.
1t is known that publications to this ef-
feet outlined the new Secretary's plans ac-
curately yet. in the brief time he has
been at the head of the Treasury Depart
ment, he has done more for the relief OF
financial conditions than Secretary Shaw
did during his whole administration. This
leads inevitably to the opinion that the
administration is badly worried by the
continued disturbances in the stock mar
ket, and by the reiterated assertions that
the big railroads of the country are find
ing 1t impossible to realize on their securi-
ties-that in shoEt. there is a marked alb
sence OF public confidence, This opinion
is strengthened by other developments OF
the recent past, which have indicated that
the President and his advisers consider
the situation as critical, or becoming so.
Has Political Possibilities.
Nobody realizes more clearly than the
President the disastrous effect a genera,
panic would have on him and his party
at the present time. II would mean. In
effect. that the public Would be Inclined tc
forget much or all the accomplishments
Of the President since he succeeded Nc.
Kinley. and that tho dominant party
would never again be able 10 declare tnai
il is panie-proof, aud that panics can only
occur under Democratic administrations
It would be so far-reaching in its politl
cal effects that the President naturally
viii strain every nerve to prevent a con
tinuation OF the conditions which have at