The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-12-01
RUSH FOR NEW BONDS
Panama Issue of S50,000,000
Is 0verSubScribed.
BRING PRICE NEAR lO4
Secretary of Treasury Gets More
Than 5000 Letters-It Is Estimated
That Fully S3OO,OOOyOOO Could
Have Been Easily Raised-Demand
from All Parts of Country.

The s5o,OOO.OOO issue of Panama Canal
bonds. proposals for which were opened
az the Treasury late yesterday afternoon,
was oversubscribed many times, and a
good figure. well above yesterdays mar
ket price, Will be realized.
When the hour OF 4:3O o'clock arrived
yesterday afternoon more than 5000 bids
for the purchase Of the bonds had reach
ed the Treasury.
The opening began at 4:So. according TO
schedule, in the Division Of Loans and
Currency. and fifteen or twenty clerks
were kept busy with the task Of opening
the large number of envelopes and ar
ranging the bids. according to prices Of
fered, until after o'clock.
An hour later Secretary Cortelyou said
It was impossible TO give out details OF
the bids before next week. but issued the
following formal statement:
''The bids for the $50 OOO.00O Of Panama
Canal bonds invited by the Secretary's
circular Of November Is were opened this
evening in the Treasury Department.
More Than 5000 Bids.
There We're more than three thousand
bids. and the loan was many times over
subscribed. No complete tabulation has
been possible as yet. but It can be said
that the average price is well above the
present market price of the bonds. Ow-
ing TO the large number OF bids 10 be
considered, II will be impracticable 10
make allotment Immediately but the Sec
rotary will be prepared to give further
information on Monday"
To what extent the loan of $4,000. 600
was over subscribed II is not possible TO
say, but it is certain that if the loan
had been as large as $500 100000 or $780,.
00eO0o, it could have been hoated easily
ON the proposals received from RESPONSE
BILE bidders
Whole Country Represented.
The bids came from every corner Of the
country, and represented national bank
ing associations, trust companies. savings
banks, and other financial Institutions. as
well as many individuals. The average
price bid is not given officially, but it will
probably be very close to 1O4 which is
about two points higher than yesterdays
market price of the Panama Canal bonds
issued a year ago.
The fact that his loan is being fioated
ing the currency situation will be borne
IN mind by Secretary Cortelyou when he
makes the awards. The aim is 10 place
the bonds where they will do the most
good IN relieving the money famine and
that means that i'm the great majority Of
cases. probably the awards will be made
70 national banks.
Basis of Circulation.
At any rate, the bonds will be available
for national banks wishing TO use them as
the basis OF national bank circulation.
Ninety per cent of the purchase price
may be retained by national banks pur-
chasing these bonds as, a deposit of Fed
eral money. The 10 per cent in cash paid
into the United States Treasury will re-
plenish the working cash balance, and
allow a safe margin for the transaction
Of current government business.
No statement has yet been made in re-
gard 10 the total amount Of the per
cent certificates OF Indebtedness that has
been awarded. but the aggregate may run
as high as S2500O.000