The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-11-18

OHclaI announcement was made last
night by Secretary of the Treasury Cor
teiyou that the Treasury Department
would issue sSO.OO0.OOO in Panama Canal
bonds. and issue, also, g per cent interest
bearing government certificates to the
amount of $iOO.O0O.OOO If necessary. to run
for one year.
Ihe bonds sold will be available for
collateral in taking out additional na-
tonal bank circulation. and the money
realized on the sale Of the certificates is
10 be placed where it will serve the hest
purposes in furnishing additional Cur
rency.
Coincident with this announcement
there was made public a letter from
president Roosevelt to Secretary Cortel-
YOU dated yesterday, in which Mr.
roosevelt refers in terms Of confidence
10 the solvency Of banks and trust com
panies, assures the people that the busi-
ness situation is fundamentally sound
and appeals to the public "to co-operate
Win US in restoring normal business
conditions
Proposed Currency Bill.
The President says. also. in his Ietto-
TO Mr.. Cortelyou. that the leaders n
Congress are considering a currency bill
"iich VIII meet the needs of the sItua-
ton III a permanent way. The President
expresses the belief that the bill will be
passed soon after Congress assar,t,..,
The golden stream Will begin to nom i,,.o
The Treasury in almost two weeks for
tuo olus Tor bonds must be submitted bv
november 30. The subscriptions for GER
uhcates must be paid in by December
i but the interest viii date from, ,,e,t
Wednesday
Inc bonds viii be issued as small as
-" They bear interest at 2 Der cent and
are redeemable after ten years.
In Small Denominations.
Inc TWO measures are calculated N do
Tor the business Of the country az r,,,.t,
as the elastic-currency laws do for lead-
ing nations OF Europe.
France has provided for q, el,s+i,i.,.
TO an extent of $4,000. 900: England fo-
about sl25OO0.O0O
The measures determined upon bv the
administration are the outcome Of much
dehDeration on the part of the President
and Secretary Cortelyou, who did not
hesitate to take advantage of the advice
OF some Of the members of the cabinA,
and leading financiers.
II Is expected that the intention Of the
treasury announced last night. to issua
certificates Of Indebtedness. will have the
immediate effect Of causing to be re-
leased money being held by banks and
mat this will tend to restore public con-
ndence
Move Above Criticism.
The administration looks upon the bond
Issue as beyond criticism The issue ~
SSO.OOo,o0o represents approximately the
amount Of Treasury funds. NOT coverod
by the previous issue of canal bonde
that will be spent in the construction Of
the canal up to the close OF the fiscal
year
me transaction was likened in an Off /
cial quarter yesterday TO a railroad that
pays Tor a portion OF an Improvement
project out of current receipts subsa- |
uuently issuing bonds to cover the ex-
penditure and thereby reimb1Irsinp its |
treasury. 1t has been the Presidant.s
idea that the present generation shouId |
not be saddled with the expense Of build- |
ing the canal. even though the Traos,,r,. |
be able to meet all the payments without |
a bond issue
The Treasury notes. authorized bv a |
clause IN the act providing for financial |
emergencies are regarded by the Presl- |
oent and his Cabinet as a popular loan |
Tor one year. At the expiration of tho |
Term II is taken for granted that \ aoodIy |
portion Of the government funds now ON |
deposit in national banks. can he with |
drawn and the $lOO.OOO.OOO returned to the
holders. plus interest.
The plan for both issues fs cra5ited
chiefly 20 Secretary CorteIyou. If wa.
worked out in considerable part bv him
according 10 the understanding in mis-
city.
The feeling Of hopefuIness is suggested
IN the qualifying phrase. 'Tf necessary D,
IN the statement Of the governments in
tention to issue SlOOOOQO0O OF Interest,"
bearing certificates There is a decided
tendency here 70 believe that il will not
be an absolute requisite to make the
issue that large. for the reason that the
conditions which the issue seeks 10 re-
lieve will be overcome before sHe total
amount named has been put out.
The Presidents letter.
President Roosevelts letter To Secre-
tary Cortelyou is as follows:
The White House.
Washington, Nov II. 1907
My Dear Mr. COrtelyou: I have con-
Sldered your proposal I approve the
issue OF the 50.G10O0O OF Panama bondS
WIilIm ,,li IN VIII De immediately available as