The sun., 1907-11-19
MARKET ALREADY RELIEVED
PREMIUM ON CURRENCY PROM
TSES TO DISAPPEAR.
BanI.s Ea ser Co G;et the q Per Cents. since
Tbey Can Take Out Circulation ON Them
-Tney VIII BE OS the size Of Bank
Notes and Might serve as a Currency.

NOOos anu WhBmS serve ~ Nurfrncys
Bankers in this city yesterday made
active preparations TO subscribe for the
$50. .OOOO 600 Panama per cent. bonds to be
advertised in the near future and for the
500. .OOO, 900 per cent. Government loan
certifca 81 which are to be put out at once.
No syndicate was organized to take the
Panama bonds. but bankers were certain
that the issue would be oversubscribed.
A syndicate was organized to take 25.OOO.-
900 Of the 500 100000 loan certificates.
but after an announcement from Washing
ton. late in the afternoon, that the loan
certificates, like the Panamas. would be
ton, it was everywhere considered certain
that this issue also would be largely over
subscribed and that there might be no
necessity for syndicate action.
That the Treasury Department would
accept the loan certificates on deposit to
secure circulation removed whatever doubt
might have remained az to the success Of
this hotation. Even in normal times this
is the season Of the year when circulation
is desired more than in any other season.
principally on account Of the demand for
money for crop moving. In these abnormal
times bankers are much more anxious
of course to secure the additional Circula-
tion, and the opportunity afforded by the
Panama bonds and the loan certificates
to take out $3.50. 100000 new national bank
notes without seriously disturbing existing
reserves is one that. bankers agreed. will
be eagerly grasped in national banking
circles
Though none of the new money, of course.
was at hand yesterday, beneficial effect
of the Secretary's action was noted in a
decline in the premium on currency. Many
men with currency to sell found that they
could get but per cent. for It from money
brokers. and the brokers offered currency
to bidders at rates ranging from IA to ~
per cent. Part OF the day the demand was
rather brisk. for there were many orders
left untitled from last week. Generally.
however, the demand was much less than on
any day last week and the offerings much
greater. so that il was apparent that a bene-
fetal effect, of Secretary Cortelyou's an
nOuncement has already been attained
in a recovery Of confidence which released
much boarded money.
Bankers expect that the most important
results. as far a. release Of boarded money
is concerned. will accrue from banks in small
cities and villages in the interior. A very
large number OF these institutions. having
no clearing houses in their respective lOoali-
ties, have built up reserves to a very high
Point In a large number of instances the
= - En IL -.
considered certain, now that the Treasury
Department has taken this important action.
that these interior banks will reduce their
reserves to a normal point and will return
balances to the financial centres of their
various regions.
There was talk yesterday of resumption
Of the plan to secure gold from the Bank
Of France The negotiations. it was be-
lieved, could have been carried TO a SUCCESS
full conclusion last week had New York
bankers been able to offer a Government
security such as is supplied by the loan
certificates. Bankers. however were gen.
orally of the opinion that no great Ad-
vantage was derivable from any further
great depletion of Europes stock Of gold
and counselled against any effort to secure n
large amount OF gold in France. After 10
be put up against circulation it was APP
parent, as above stated, that all Of them
could be placed here without the slightest
difficulty. A bid Of lOl was made for the
certificates on the curb yesterday, but
none was offered. The bid was made
before it became known that the certiR-
Gates could be used for circulation.
The decline in the premium on currency
nis.A hu n aba in hsa
foreign exchange market. At the low
point OF the day demand sterling bills sold
at 4.s5}1 a break of ~ cents. There was
pa rtiaI recovery at the close, demand going
to 4. sos. Meanwhile bankers had engaged
in London 81 500 600 gold for import. Ia
zard Freres secured 81 900 900 Of this, and
! the Guaranty Trust Company the re-
mainder., These enga gements brought the
total for the movement up to between
S87 500 900 and SIC, 900, 900.
Bankers continued to transfer money in
! large amounts TO various places in the
| interior. In addition to the direct ship
ments by express there was sent by tele-
| graphic transfer through the Sub-Treasury
! s., ,sSs 600, as follows: New Orleans. 81. 900;
| san Francisco. t464. 900; st. Louis. $50. 900;
| Cincinnati, 5000; Chicago. s7O2. 900; Dem
YER, sSO. 900. and Philadelphia, t275y 900.
Apart from the use Of the Treasury loan
certificates as security for circulation.
} bankers were of the opinion that they
| might I've used to some extent as currency
! That many Of them are to be put out in
$50 and other small denominations strength
! ened this belief Frank A. Vanderhp, vice.
| president Of the City Bank. said that they
| would be similar to bank notes in form and
| be a good medium for circulation. Il was
his opinion and that OF many other prom
| inent bankers that the certificates ought also
to accomplish the desired result Of bringing
out boarded money.
! The situation at various places in the
! interior was reported considerably i'm
| proved. these places. like New York. feeling
the favorable sentimental effect OF the
! Treasurys action. Particularly encOurag-
ing were advices from Chicago The situa-
tiOn there was summarize by John j.
Mitchell. president Of the Illinois Trust
and Savings Bank. in the following teIe-
gram to President Hepburn Of the Chase
National: situation here is steadily i'm